Neuberger Berman Strategic Income Fund NCSRS Certified semi-annual shareholder report (management investment company)

As filed with the Securities and Exchange Commission on July 7, 2011

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF

REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-03802

NEUBERGER BERMAN INCOME FUNDS

(Exact Name of the Registrant as Specified in Charter)

c/o Neuberger Berman Management LLC

605 Third Avenue, 2nd Floor

New York, New York 10158-0180

(Address of Principal Executive Offices – Zip Code)

Registrant’s telephone number, including area code: (212) 476-8800

Robert Conti, Chief Executive Officer

c/o Neuberger Berman Management LLC

Neuberger Berman Income Funds

605 Third Avenue, 2nd Floor

New York, New York 10158-0180

Arthur C. Delibert, Esq.

K&L Gates LLP

1601 K Street, N.W.

Washington, D.C. 20006-1600

(Names and Addresses of agents for service)

Date of fiscal year end: October 31, 2011

Date of reporting period: April 30, 2011

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Report to Shareholders.

Neuberger Berman

Income Funds

Investor Class Shares Institutional Class Shares Trust Class Shares	Class A Shares Class C Shares Class R3 Shares

Core Bond Fund Floating Rate Income Fund High Income Bond Fund	Municipal Intermediate Bond Fund Short Duration Bond Fund Strategic Income Fund

Semi-Annual Report

April 30, 2011

Contents

THE FUNDS
President's Letter	1

PORTFOLIO COMMENTARY
Core Bond Fund	2

Floating Rate Income Fund	4

High Income Bond Fund	6

Municipal Intermediate Bond Fund	8

Short Duration Bond Fund	11

Strategic Income Fund	13

FUND EXPENSE INFORMATION	20

SCHEDULE OF INVESTMENTS
Core Bond Fund	22

Floating Rate Income Fund	28

High Income Bond Fund	35

Municipal Intermediate Bond Fund	42

Short Duration Bond Fund	47

Strategic Income Fund	50

FINANCIAL STATEMENTS	80

The "Neuberger Berman" name and logo are registered service marks of Neuberger Berman Group LLC. "Neuberger Berman Management LLC" and the individual Fund names in this piece are either service marks or registered service marks of Neuberger Berman Management LLC.© 2011 Neuberger Berman Management LLC. All rights reserved.

FINANCIAL HIGHLIGHTS (ALL CLASSES)/PER SHARE DATA

Core Bond Fund	100

Floating Rate Income Fund	100

High Income Bond Fund	102

Municipal Intermediate Bond Fund	104

Short Duration Bond Fund	104

Strategic Income Fund	106

Directory	112

Proxy Voting Policies and Procedures	113

Quarterly Portfolio Schedule	113

President's Letter

Dear Fellow Shareholder,

Numerous factors affected the fixed income market during the six months ended April 30, 2011. Treasury yields fluctuated given some mixed economic data, rising inflationary pressures, numerous geopolitical issues and the devastating events in Japan. Despite several flights to quality when investors flocked to the relative safety of U.S. Treasury securities, robust risk appetite quickly resumed, as investors looked to generate incremental income in the low interest rate environment.

As was the case during most of the previous two years, non-Treasury securities generated solid results during the reporting period. Supporting non-Treasuries was a continuation of the economic recovery, improving corporate profits and overall solid demand. In contrast, Treasury yields rose given concerns regarding higher oil and commodity prices, as well as uncertainties regarding future Federal Reserve policy.

Overall, our Fixed Income Funds were well positioned to benefit from the outperformance of non-Treasuries. In particular, exposure to the areas of the market that experienced tightening of yield spreads (or the difference in yield between Treasuries and other securities) positively contributed to the Funds' results during the reporting period.

Looking ahead, in our view, the economy has enough momentum to continue expanding as the year progresses. That said, growth may be less robust than in previous recoveries from severe recessions given still high unemployment and weakness in the housing market. Should oil and commodity prices remain elevated, it could further impact economic growth rates.

One area that warrants close attention going forward is the actions of the Federal Reserve. It has kept the Federal Funds rate at a historically low range of 0% to 0.25% since December 2008. Despite repeated assurance that it will keep rates on hold for "an extended period," we believe that at some point the Federal Reserve will eventually remove some policy accommodation, which would affect bond prices. The timing of this action may be dictated by the unemployment and/or inflationary environment.

Despite significant spread tightening since the credit crisis, we remain positive for the outlook for non-Treasuries and feel that our Fixed Income Funds are positioned accordingly. In our view, investor demand for non-Treasuries is likely to remain solid given the low yields offered by Treasury securities. We also feel that investor interest in tax-free bonds could improve following a difficult period in the municipal market.

Still, we believe that various economic and geopolitical uncertainties could continue to create periods of heightened market volatility moving forward. In such an environment, we believe that shareholders should maintain a focus, not on short-term market movements, but on achieving their long-term investment goals.

Thank you for your continued support and trust. We look forward to continue serving your investment needs in the years to come.

Sincerely,

Robert Conti

President and CEO

Neuberger Berman Mutual Funds

Core Bond Fund Commentary

Neuberger Berman Core Bond Fund Institutional Class generated a 1.36% total return for the six months ended April 30, 2011 and outperformed its benchmark, the Barclays Capital U.S. Aggregate Index, which provided a 0.02% return for the period. (Performance for all share classes is provided in the table immediately following this letter.)

The reporting period was an eventful time for the fixed income market. Treasury yields fluctuated given some mixed economic data, rising headline inflationary pressures, geopolitical unrest in the Middle East and North Africa, and the devastating events in Japan. Despite periodic flights to quality, investor risk appetite quickly resumed. Both short- and long-term Treasury yields ultimately moved higher during the reporting period and the yield curve steepened. As was the case during much of calendar year 2010, most non-Treasury fixed income securities posted positive returns during the reporting period and outperformed equal-duration Treasuries. Supporting non-Treasuries were the ongoing economic recovery, corporate profits that largely exceeded expectations and generally robust demand from investors looking to generate incremental yield.

The Fund continued to benefit from its overweight position relative to the benchmark in non-Treasuries. The largest contributor to performance was its exposure to commercial mortgage-backed securities (CMBS) as their spreads (the difference in yield between Treasuries and other bond sectors) narrowed during the six-month reporting period. Another meaningful contributor was the Fund's allocation to Treasury Inflation Protected Securities (TIPS). TIPS benefited from rising inflationary concerns in the wake of sharply higher oil and food prices. Elsewhere, the Fund's overweight relative to the benchmark to investment-grade corporate bonds was rewarded, as they performed well given improving corporate fundamentals and overall solid demand. Within this sector, the Fund's financial bonds posted the strongest returns. Somewhat detracting from performance were the Fund's holdings of U.S. agency securities, as they slightly lagged the index during the period.

Generally modest adjustments were made to the portfolio during the reporting period. We added to the Fund's exposure to agency mortgage-backed securities and pared its allocation to U.S. Treasury securities.

Looking ahead, we believe the economy has enough momentum to continue growing as the year progresses. The magnitude of the expansion, however, could be tempered if oil and food prices remain high. While unemployment moderated during the reporting period, it remains elevated. That and continued strains in the housing market could also dampen growth rates. Our outlook for non-Treasuries remains positive as we believe further spread tightening could occur against a backdrop of generally solid investor demand, fairly benign core inflation (excluding food and energy) and positive economic growth.

Sincerely,

Thanos Bardas, David M. Brown, Andrew A. Johnson and Bradley C. Tank

Portfolio Co-Managers

Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.

The composition, industries and holdings of the Fund are subject to change.

Core Bond Fund

TICKER SYMBOLS

Investor Class		NCRIX
Institutional Class		NCRLX
Class A		NCRAX
Class C		NCRCX

PORTFOLIO BY TYPE OF SECURITY

(as a % of Total Net Assets)
Asset-Backed Securities	11.3	%
Corporate Debt Securities	26.1
Mortgage-Backed Securities	36.7
U.S. Government Agency Securities	0.4
U.S. Treasury Securities	19.5
Short-Term Investments	31.9
Liabilities, less cash, receivables and other assets	(25.9)
Total	100.0	%

PERFORMANCE HIGHLIGHTS3,10

	Inception	Six Month Period Ended			Average Annual Total Return Ended 04/30/2011
	Date	04/30/2011			1 Year			5 Years			10 Years			Life of Fund
At NAV
Investor Class	02/01/1997		1.16	%		6.67	%		6.46	%		5.59	%		5.69	%
Institutional Class	10/01/1995		1.36	%		7.09	%		6.90	%		6.03	%		6.09	%
Class A15	12/20/2007		1.16	%		6.67	%		6.57	%		5.87	%		5.99	%
Class C15	12/20/2007		0.69	%		5.77	%		6.03	%		5.60	%		5.82	%
With Sales Charge
Class A15			-3.12	%		2.17	%		5.65	%		5.41	%		5.70	%
Class C15			-0.28	%		4.77	%		6.03	%		5.60	%		5.82	%
Index
Barclays Capital U.S. Aggregate Index13,14			0.02	%		5.36	%		6.33	%		5.74	%		6.20	%

Performance data quoted represent past performance, which is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.

Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, please visit www.nb.com/performance.

For the period ended April 30, 2011, the 30-day SEC yield was 2.03%, 2.41%, 1.94% and 1.29% for Investor Class, Institutional Class, Class A and Class C shares, respectively. Neuberger Berman Management LLC currently absorbs certain expenses of the Fund. Absent such arrangements, the 30-day SEC yield would have been 1.78%, 2.27%, 1.84% and 1.16% for Investor Class, Institutional Class, Class A and Class C shares, respectively, and average annual returns would have been lower.

As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal 2010 were 1.21%, 0.72%, 1.11% and 1.86% for Investor Class, Institutional Class, Class A and Class C shares, respectively (prior to any fee waivers and/or expense reimbursements). The expense ratios net of waivers and/or reimbursements were 0.87%, 0.47%, 0.87% and 1.62% for Investor Class, Institutional Class, Class A and Class C shares, respectively. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through 10/31/2021 for Investor Class, Institutional Class, Class A and Class C shares. Absent these caps, returns would have been lower.

Total Returns shown with a sales charge reflect the deduction of the current maximum initial sales charge of 4.25% for Class A shares and the applicable contingent deferred sales charges (CDSC) for Class C shares. The maximum CDSC for Class C shares is 1%, which is reduced to 0% after 1 year. The performance of the Fund's share classes will differ primarily due to different sales charge structures and class expenses. Please see the prospectus for more information about sales charge structures, if any, and class expenses for your share class.

Floating Rate Income Fund Commentary

Neuberger Berman Floating Rate Income Fund Institutional Class generated a 3.97% net total return for the six months ended April 30, 2011 but lagged its benchmark, the S&P/LSTA Leveraged Loan Index, which provided a 4.73% return for the period. (Performance for all share classes is provided in the table immediately following this letter.)

Despite a temporary setback in March given increased geopolitical issues in the Middle East and North Africa, as well as the tragic earthquake and tsunami in Japan, the floating rate bank loan market posted solid results during the reporting period. Many of the trends that had supported floating rate bank loan prices throughout much of calendar year 2010 have continued thus far in calendar year 2011. These include the ongoing economic expansion, overall strong corporate earnings, robust investor demand and declining floating rate loan defaults. During the reporting period, the default rate among the securities in the benchmark fell from approximately 2.3% to 1.1%. Against this backdrop, lower-quality securities outperformed their higher-quality counterparts. For the six months ended April 30, 2011, CCC rated securities in the index gained 12.89% and BB rated securities rose 2.90%, respectively.

During the reporting period, the Fund continued to have a meaningful allocation to non-floating rate securities. We have the flexibility to allocate up to 20% of the portfolio to these securities and, within this segment, we invested in fixed-rate senior secured bonds that offered higher yields than the floating rate loans offered by the same issuers. Given our focus on generating high current income, approximately 17% of the Fund was held in fixed-rate securities at the end of the reporting period. This allocation was beneficial to the Fund's performance.

We also continued to actively participate in the new issuance market, emphasizing securities in the primary rather than the secondary bank loan market due to the former's higher current yields. In addition, we maintained our focus on larger, highly liquid names that offered attractive yields in order to maintain a liquid portfolio.

Throughout the period, the Fund was underweighted relative to the benchmark in CCC rated securities and overweighted in B rated issues versus the index. We felt this positioning was appropriate given company-specific concerns regarding a number of CCC rated issuers.

From a sector perspective, security selection in radio/TV, autos and utilities detracted the most from results. In contrast, our security selection in business equipment, leisure and chemicals added the most to positive performance.

Looking ahead, we maintain our positive outlook for the floating rate loan market. The economy appears poised, in our view, to continue expanding and U.S. corporations are generally well positioned given their mostly flexible cost structure and the large amounts of liquidity on their balance sheets. Based on this and the relatively small amount of floating rate loans maturing in the near future, we anticipate seeing a continuation of the extremely low default rate environment. It is our belief that the supply/demand dynamics in the market will also remain supportive of the floating rate loan market. While the Federal Reserve Board will eventually need to raise short-term interest rates, for the time being they appear determined to hold these rates low for an extended period. We believe that this will result in overall strong investor demand for floating rate loans given their attractive yields and their hedge against potentially higher rates.

Sincerely,

Stephen J. Casey, Ann H. Benjamin, Thomas P. O'Reilly and Joseph P. Lynch

Portfolio Co-Managers

Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.

The composition, industries and holdings of the Fund are subject to change.

Floating Rate Income Fund

TICKER SYMBOLS

Institutional Class		NFIIX
Class A		NFIAX
Class C		NFICX

PORTFOLIO BY MATURITY DISTRIBUTION

(as a % of Total Investments)
Less than One Year	8.0	%
One to Five Years	34.1
Five to Ten Years	57.9
Total	100.0	%

PERFORMANCE HIGHLIGHTS6

	Inception	Six Month Period Ended			Average Annual Total Return Ended 04/30/2011
	Date	04/30/2011			1 Year			Life of Fund
At NAV
Institutional Class17	12/30/2009		3.97	%		7.36	%		7.64	%
Class A	12/29/2009		3.77	%		6.83	%		7.27	%
Class C17	12/30/2009		3.37	%		6.14	%		6.62	%
With Sales Charge
Class A			-0.63	%		2.29	%		3.87	%
Class C17			2.37	%		5.14	%		6.62	%
Index
S&P/LSTA Leveraged Loan Index13,14			4.73%			6.94%			10.26%

Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, please visit www.nb.com/performance.

For the period ended April 30, 2011, the 30-day SEC yield was 4.67%, 4.10% and 3.51% for Institutional Class, Class A and Class C shares, respectively. Neuberger Berman Management LLC currently absorbs certain expenses of the Fund. Absent such arrangements, the 30-day SEC yield would have been 4.50%, 3.94% and 3.35% for Institutional Class, Class A and Class C shares, respectively, and average annual returns would have been lower.

As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2010 were 1.66%, 2.04% and 3.19% for Institutional Class, Class A and Class C shares, respectively (prior to any fee waivers and/or expense reimbursements). The expense ratios net of waivers and/or reimbursements were 0.71%, 1.08% and 1.83% for Institutional Class, Class A and Class C, respectively. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through 10/31/2021 for Institutional Class, Class A and Class C. Absent these caps, returns would have been lower.

High Income Bond Fund Commentary

Neuberger Berman High Income Bond Fund Investor Class generated a 5.65% total return for the six months ended April 30, 2011 and lagged its benchmark, the BofA Merrill Lynch U.S. High Yield Master II Constrained Index, which provided a 6.13% return for the period. The Fund also underperformed its previous benchmark, the Barclays Capital U.S. High-Yield 2% Issuer Capped Bond Index, which returned 6.18% for the period. (Performance for all share classes is provided in the table immediately following this letter.)

Many of the same themes that had been evident for much of calendar year 2010 remained in place during the reporting period, as the economy continued to expand, investor risk appetite was generally strong and corporate earnings often surprised on the upside. All told, the Fund's current index posted positive returns during five of the six months covered by this report. The high yield market's gains were broad-based, as bonds rated CCC (a relatively low rating) and lower and BB (rated higher) in the BofA Merrill Lynch index returned 9.73% and 4.45%, respectively.

For the Fund, security selection in technology, diversified financial services and real estate was the largest detractor from relative results. In contrast, security selection in energy, support services and banking was the largest positive for relative performance. We made several adjustments to the portfolio during the reporting period. For the first half of the period, the Fund's overall credit quality was similar to that of the index. Following the December 2010 extension of the Bush-era tax cuts, we became more optimistic about the overall economy. We also felt that the increase in corporate depreciation rates for qualified investments would spur capital expenditures and, in turn, help to lower unemployment. Against this backdrop, we increased the Fund's exposure to CCC and CC rated securities. We also increased our allocation to more cyclical sectors of the market, including gaming, as we felt they would be beneficiaries of the ongoing economic expansion. Conversely, we pared the Fund's exposure to areas of the market that we felt had become less attractively valued. These areas included sectors such as oil and gas, pipelines and health care.

The high yield market's strong performance since the credit crisis continued over the reporting period. This has led to some speculation as to when the market may take a pause. While a setback would not be completely surprising given the amount high yield spreads (the difference in yield between Treasuries and high yield securities) have narrowed since 2008, we see signs of further long-term upside potential for the market. It appears to us that the economy has enough momentum to continue expanding, as the recovery has withstood continued elevated unemployment and an anemic housing market. Even though economic growth has been less robust than in previous severe downturns, it has allowed core inflation to remain relatively benign. What's more, corporate fundamentals have recently been largely improving and high yield default rates have recently been low and we believe they could remain low during the near- to intermediate term. High yield market default rates fell from approximately 2.4% at the beginning of the reporting period to 0.8% at the end of April 2011. Finally, in our view, it's likely that demand could remain robust as investors search for incremental yield.

As always, we will continue to conduct extensive research on potential securities for the portfolio as we seek to generate consistently strong risk-adjusted returns.

Sincerely,

Ann H. Benjamin, Thomas P. O'Reilly and Russ Covode

Portfolio Co-Managers

Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.

The composition, industries and holdings of the Fund are subject to change.

High Income Bond Fund

TICKER SYMBOLS

Investor Class		NHINX
Institutional Class		NHILX
Class A		NHIAX
Class C		NHICX
Class R3		NHIRX

PORTFOLIO BY MATURITY DISTRIBUTION

(as a % of Total Investments)
Less than One Year	3.7	%
One to Five Years	21.6
Five to Ten Years	68.7
Ten Years or Greater	6.0
Total	100.0	%

PERFORMANCE HIGHLIGHTS2,9

	Inception	Six Month Period Ended			Average Annual Total Return Ended 04/30/2011
	Date	04/30/2011			1 Year			5 Years			10 Years			Life of Fund
At NAV
Investor Class	02/01/1992		5.65	%		13.25	%		9.93	%		8.16	%		8.36	%
Institutional Class12	05/27/2009		5.71	%		13.30	%		10.04	%		8.21	%		8.39	%
Class A12	05/27/2009		5.52	%		12.89	%		9.84	%		8.12	%		8.34	%
Class C12	05/27/2009		5.12	%		12.04	%		9.55	%		7.97	%		8.27	%
Class R312	05/27/2009		5.39	%		12.62	%		9.75	%		8.07	%		8.32	%
With Sales Charge
Class A12			1.04	%		8.08	%		8.89	%		7.65	%		8.10	%
Class C12			4.12	%		11.04	%		9.55	%		7.97	%		8.27	%
Index
Barclays Capital U.S. Corporate High Yield 2% Issuer Cap Index13,14			6.18	%		13.32	%		9.38	%		9.05	%		N/A
BofA Merrill Lynch U.S. High Yield Master II Constrained Index13,14			6.13	%		13.26	%		9.29	%		8.86	%		N/A

Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, please visit www.nb.com/performance.

The Fund's broad-based index used for comparison purposes has been changed from Barclays Capital U.S. Corporate High Yield 2% Issuer Cap Index to the BofA Merrill Lynch High Yield Master II Constrained Index because the new index more closely resembles the characteristics for the Fund's investments.

For the period ended April 30, 2011, the 30-day SEC yield was 6.21%, 6.11%, 5.49%, 4.98% and 5.49% for Investor Class, Institutional Class, Class A, Class C and Class R3 shares, respectively. Neuberger Berman Management LLC currently absorbs certain expenses of the Fund. Absent such arrangements, the 30-day SEC yield would have been 6.21%, 6.13%, 5.46%, 4.87% and 5.51% for Investor Class, Institutional Class, Class A, Class C and Class R3 shares, respectively, and average annual returns would have been lower.

As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2010 were 0.96%, 0.78%, 1.17%, 1.94% and 1.73% for Investor Class, Institutional Class, Class A, Class C and Class R3 shares, respectively (prior to any fee waivers and/or expense reimbursements). The expense ratios net of waivers and/or reimbursements were 0.96%, 0.76%, 1.13%, 1.88% and 1.38% for Investor Class, Institutional Class, Class A, Class C and Class R3 shares, respectively. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through 10/31/2014 for Investor Class, Institutional Class, Class A, Class C and Class R3 shares. Absent these caps, returns would have been lower.

Municipal Intermediate Bond Fund Commentary

Neuberger Berman Municipal Intermediate Bond Fund Investor Class generated a -0.81% total return for the six months ended April 30, 2011 and lagged its benchmark, the Barclays Capital 7-Year General Obligation Index, which provided a 0.03% return for the period. (Performance for all share classes is provided in the table immediately following this letter.)

After a very difficult first half of the reporting period, the municipal market stabilized and then rallied over the second half of the period. All told, the Fund's index was roughly flat over the six months ended April 30, 2011. Looking back, a number of issues dragged down the municipal market beginning in November 2010. These included the rising interest rate environment, concerns regarding sharply higher municipal defaults and a large increase in issuance of Build America Bonds at the end of the year. Collectively, this led to substantial redemptions from mutual fund shareholders and falling municipal bond prices. The municipal market then started to rebound in February 2011, as an anticipated rise in defaults did not materialize, new issuance sharply declined, tax receipts continued to improve and many municipalities made progress in getting their financial houses in order. In addition, demand from non-traditional investors, including institutions and hedge funds, increased as they found the asset class to be attractively valued.

The Fund's underperformance versus its benchmark was partially due to its duration and yield curve positioning. Having a modestly longer duration than that of the index was a detractor as longer-term municipal securities lagged their shorter-term counterparts. In terms of the Fund's yield curve positioning, we utilized a barbell approach (investing in shorter and longer maturities). In contrast, the Fund's benchmark is concentrated in the six- to eight-year portion of the curve, which was among the best-performing portions of the municipal yield curve.

The Fund's exposure to certain states that performed poorly, including Illinois and California, also dragged down results, as they were negatively impacted by concerns and uncertainties regarding their fiscal situations. We continue to feel that these securities are fundamentally sound and represent value going forward.

Positively impacting performance was the Fund's overall higher quality than that of the benchmark. During the reporting period, higher quality bonds produced relatively stronger results than lower quality securities. To illustrate, the Barclays Capital AAA Municipal Bond Index returned -0.11% and the Barclays Capital BAA Municipal Bond Index returned -5.63% during the six months ended April 30, 2011.

From a sector perspective, we continued to emphasize higher quality revenue and general obligation bonds that tend to perform relatively well during difficult economic environments. This was rewarded, as lower quality sectors, such as health care and tobacco, produced poor results during the reporting period.

We made minor adjustments to the portfolio during the reporting period. For example, we shortened the Fund's duration as we sought to pare its overall risk exposure. This was beneficial for performance, as municipal yields moved higher over the reporting period as a whole.

Looking ahead, economic data for the first quarter were consistent with our expectation for a continued economic expansion in the U.S. in 2011. We believe, however, that growth in the economy could slow if oil prices remain at elevated levels. Other headwinds facing the economy are the still-high unemployment rate, the potential for a double-dip in the housing market and declining federal, state and local spending. We also feel that the tax-exempt bond market could be impacted by Congressional actions on issues related to stimulus and deficits. In our view, these factors, in addition to overall volatility in the global markets, deserve close monitoring. We continue to closely analyze the various influences on the municipal market and will adjust our outlook as needed.

In our view, many of the factors that contributed to the solid performance of tax-exempt bonds in the second half of the reporting period may play a role for the balance of the year. These include continued strong demand for reliable and liquid income-generating investments and the likelihood of higher marginal federal tax rates at some point down the road. Lastly, we believe that municipal bonds provide attractive relative values when compared to Treasuries and other high quality fixed income sectors on a taxable equivalent yield basis.

Sincerely,

James L. Iselin and S. Blake Miller

Portfolio Co-Managers

Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.

The composition, industries and holdings of the Fund are subject to change.

Municipal Intermediate Bond Fund

TICKER SYMBOLS

Investor Class		NMUIX
Institutional Class		NMNLX
Class A		NMNAX
Class C		NMNCX

PORTFOLIO BY STATE AND TERRITORY

(as a % of Total Investments)
Alaska	0.1	%
Arizona	3.6
California	10.2
Colorado	2.6
District of Columbia	0.9
Florida	3.3
Georgia	1.1
Illinois	10.5
Indiana	2.6
Iowa	1.3
Kansas	1.8
Louisiana	0.5
Maryland	0.9
Massachusetts	7.7
Michigan	6.7
Minnesota	1.5
Mississippi	1.3
Missouri	1.7
Nebraska	1.2
Nevada	2.0
New Jersey	4.1
New Mexico	1.8
New York	13.2
North Carolina	1.0
Ohio	0.5
Oregon	1.1
Pennsylvania	2.4
Puerto Rico	1.7
Rhode Island	1.1
South Carolina	0.2
Tennessee	1.6
Texas	4.4
Virginia	1.5
Washington	1.9
Wisconsin	2.0
Total	100.0	%

PERFORMANCE HIGHLIGHTS1,7,8

	Inception	Six Month Period Ended			Average Annual Total Return Ended 04/30/2011
	Date	04/30/2011			1 Year			5 Years			10 Years			Life of Fund
At NAV
Investor Class	07/09/1987		-0.81	%		2.63	%		3.88	%		3.87	%		5.10	%
Institutional Class18	06/21/2010		-0.82	%		2.67	%		3.89	%		3.88	%		5.10	%
Class A18	06/21/2010		-1.09	%		2.35	%		3.82	%		3.84	%		5.08	%
Class C18	06/21/2010		-1.28	%		1.78	%		3.71	%		3.78	%		5.06	%
With Sales Charge
Class A18			-5.25	%		-2.00	%		2.93	%		3.39	%		4.89	%
Class C18			-2.25	%		0.79	%		3.71	%		3.78	%		5.06	%
Index
Barclays Capital 7-Year GO Index13,14			0.03	%		4.74	%		5.68	%		5.24	%		6.13	%

Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, please visit www.nb.com/performance.

For the period ended April 30, 2011, the 30-day SEC yield was 2.57%, 2.72%, 2.26% and 1.60% for Investor Class, Institutional Class, Class A and Class C shares, respectively. The tax-equivalent yield was 3.95%, 4.18%, 3.48% and 2.46% for Investor Class, Institutional Class, Class A and Class C shares, respectively, for an investor in the highest federal income tax bracket (35%). Neuberger Berman Management LLC currently absorbs certain expenses of the Fund. Absent such arrangements, the 30-day SEC yield would have been 2.18%, 2.27%, 1.50% and 0.77% for Investor Class, Institutional Class, Class A and Class C shares, respectively, and average annual returns would have been lower.

As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2010 were 1.02%, 0.64%, 1.01% and 1.76% for Investor Class, Institutional Class, Class A and Class C shares, respectively (prior to any fee waivers and/or expense reimbursements). The expense ratios net of waivers and/or reimbursements were 0.65%, 0.50%, 0.87% and 1.62% for the Investor Class, Institutional Class, Class A and Class C shares, respectively. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through 10/31/2014 for Investor Class, Institutional Class, Class A and Class C shares. Absent these caps, returns would have been lower.

Short Duration Bond Fund Commentary

Neuberger Berman Short Duration Bond Fund Investor Class generated a 0.86% total return for the six months ended April 30, 2011 and outperformed its benchmark, the Barclays Capital 1-3 Year U.S. Government/Credit Index, which provided a 0.32% return for the period. (Performance for all share classes is provided in the table immediately following this letter.)

The reporting period was an eventful one for the fixed income market. Treasury yields fluctuated given some mixed economic data, rising headline inflationary pressures, geopolitical unrest in the Middle East and North Africa, and the devastating events in Japan. Despite periodic flights to quality, investor risk appetite quickly resumed. Both short- and long-term Treasury yields ultimately moved higher during the reporting period and the yield curve steepened. As was the case during much of calendar year 2010, most non-Treasury fixed income securities posted positive returns during the reporting period and outperformed equal-duration Treasuries. Supporting non-Treasuries were the ongoing economic recovery, corporate profits that largely exceeded expectations and generally robust demand from investors looking to generate incremental yield.

The Fund continued to benefit from its overweight position in non-Treasuries. The largest contributor to performance was its exposure to commercial mortgage-backed securities (CMBS) as their spreads (the difference in yield between Treasuries and other bond sectors) narrowed during the six-month reporting period. Other meaningful contributors were the Fund's allocations to asset-backed securities and non-agency mortgage-backed securities. The Fund also benefited from its overweight exposure relative to the benchmark to investment grade corporate bonds, which performed well given improving corporate fundamentals and overall solid demand. There were no meaningful detractors from performance during the reporting period.

A number of adjustments were made to the portfolio during the reporting period. We increased the Fund's exposures to CMBS, asset-backed securities, investment-grade corporate bonds and agency mortgage-backed securities. In contrast, we significantly reduced its allocation to U.S. Treasury securities.

Sincerely,

Thomas Sontag, Michael Foster and Richard Grau

Portfolio Co-Managers

Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.

The composition, industries and holdings of the Fund are subject to change.

Short Duration Bond Fund

TICKER SYMBOLS

Investor Class		NSBIX
Trust Class		NSBTX
Institutional Class		NSHLX
Class A		NSHAX
Class C		NSHCX

PORTFOLIO BY TYPE OF SECURITY

(as a % of Total Net Assets)
Asset-Backed Securities	14.6	%
Corporate Debt Securities	26.3
Mortgage-Backed Securities	45.3
U.S. Government Agency Securities	3.9
U.S. Treasury Securities	9.3
Short-Term Investments	0.5
Cash, receivables and other assets, less liabilities	0.1
Total	100.0	%

PERFORMANCE HIGHLIGHTS5

	Inception	Six Month Period Ended			Average Annual Total Return Ended 04/30/2011
	Date	04/30/2011			1 Year			5 Years			10 Years			Life of Fund
At NAV
Investor Class	06/09/1986		0.86	%		3.09	%		2.13	%		2.63	%		4.92	%
Trust Class16	08/30/1993		0.78	%		2.86	%		2.03	%		2.52	%		4.86	%
Institutional Class16	06/21/2010		0.83	%		3.14	%		2.14	%		2.63	%		4.93	%
Class A16	06/21/2010		0.61	%		2.86	%		2.09	%		2.60	%		4.92	%
Class C16	06/21/2010		0.24	%		2.20	%		1.95	%		2.54	%		4.89	%
With Sales Charge
Class A16			-3.63	%		-1.51	%		1.20	%		2.16	%		4.73	%
Class C16			-0.75	%		1.20	%		1.95	%		2.54	%		4.89	%
Index
Barclays Capital 1-3 Year U.S. Government/Credit Index13,14			0.32%			2.27%			4.51%			4.07%			5.91%

Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, please visit www.nb.com/performance.

For the period ended April 30, 2011, the 30-day SEC yield was 1.70%, 1.60%, 1.90%, 1.48% and 0.79% for Investor Class, Trust Class, Institutional Class, Class A and Class C shares, respectively. Neuberger Berman Management LLC currently absorbs certain expenses of the Fund. Absent such arrangements, the 30-day SEC yield would have been 1.09%, 0.90%, 1.27%, 0.18% and 0.04% for Investor Class, Trust Class, Institutional Class, Class A and Class C shares, respectively, and average annual returns would have been lower.

As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2010 were 1.28%, 1.49%, 0.78%, 1.15% and 1.90% for Investor Class, Trust Class, Institutional Class, Class A and Class C shares, respectively (prior to any fee waivers and/or expense reimbursements). The expense ratios net of waivers and/or reimbursements were 0.71%, 0.81%, 0.51%, 0.88% and 1.63% for Investor Class, Trust Class, Institutional Class, Class A and Class C shares, respectively. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through 10/31/2014 for Investor Class, Trust Class, Institutional Class, Class A and Class C shares. Absent these caps, returns would have been lower.

Strategic Income Fund Commentary

Neuberger Berman Strategic Income Fund Institutional Class generated a 2.21% total return for the six months ended April 30, 2011 and outperformed its benchmark, the Barclays Capital U.S. Aggregate Index, which provided a 0.02% return for the period. (Performance for all share classes is provided in the table immediately following this letter.)

The reporting period was an eventful time for the fixed income market. Treasury yields fluctuated given some mixed economic data, rising headline inflationary pressures, geopolitical unrest in the Middle East and North Africa, and the devastating events in Japan. Despite periodic flights to quality, investor risk appetite quickly resumed. Both short- and long-term Treasury yields ultimately moved higher during the reporting period and the yield curve steepened. As was the case during much of calendar year 2010, most non-Treasury fixed income securities posted positive returns during the reporting period and outperformed equal-duration Treasuries. Supporting non-Treasuries were the ongoing economic recovery, corporate profits that largely exceeded expectations, and generally robust demand from investors looking to generate incremental yield.

The Fund continued to benefit from its overweight position relative to the benchmark in non-Treasuries. The largest contributor to performance was its exposure to high yield bonds as their spreads (the difference in yield between Treasuries and other bond sectors) narrowed during the six-month reporting period. Another meaningful contributor was the Fund's allocation to commercial mortgage-backed securities. Elsewhere, the Fund's overweight relative to the benchmark in investment-grade corporate bonds was rewarded, as they performed well given improving corporate fundamentals and overall solid demand. Within this sector, the Fund's financial bonds posted the strongest returns.

Somewhat detracting from performance were the Fund's holdings of U.S. government agency mortgage-backed securities and U.S. government agency securities, as they slightly lagged the index during the period.

Looking ahead, we believe the economy has enough momentum to continue growing as the year progresses. The magnitude of the expansion, however, could be tempered if oil and food prices remain high. While unemployment moderated during the reporting period, it remains elevated. That and continued strains in the housing market could also pare growth rates. Our outlook for non-Treasuries remains positive as we believe further spread tightening could occur against a backdrop of generally solid investor demand, fairly benign core inflation (excluding food and energy) and positive economic growth.

Sincerely,

Thanos Bardas, David M. Brown, Andrew A. Johnson and Bradley C. Tank

Portfolio Co-Managers

Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.

The composition, industries and holdings of the Fund are subject to change.

Strategic Income Fund

TICKER SYMBOLS

Institutional Class		NSTLX
Trust Class		NSTTX
Class A		NSTAX
Class C		NSTCX

PORTFOLIO BY TYPE OF SECURITY

(as a % of Total Net Assets)
Asset-Backed Securities	12.8	%
Corporate Debt Securities	43.6
Bank Loans	15.1
Government Securities	2.2
Mortgage-Backed Securities	23.5
U.S. Treasury Securities	3.1
Short-Term Investments	10.6
Liabilities, less cash, receivables and other assets	(10.9	)
Total	100.0	%

PERFORMANCE HIGHLIGHTS4

	Inception	Six Month Period Ended			Average Annual Total Return Ended 04/30/2011
	Date	04/30/2011			1 Year			5 Years			Life of Fund
At NAV
Institutional Class	07/11/2003		2.21	%		8.15	%		8.96	%		8.71	%
Trust Class11	04/02/2007		2.04	%		7.78	%		8.67	%		8.52	%
Class A11	12/20/2007		2.01	%		7.72	%		8.68	%		8.53	%
Class C11	12/20/2007		1.66	%		6.97	%		8.15	%		8.18	%
With Sales Charge
Class A11			-2.33	%		3.17	%		7.74	%		7.93	%
Class C11			0.68	%		5.97	%		8.15	%		8.18	%
Index
Barclays Capital U.S. Aggregate Index13,14			0.02	%		5.36	%		6.33	%		4.86	%

Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, please visit www.nb.com/performance. Because the Fund had a different goal and strategy, which included managing assets by an asset allocation committee, prior to February 29, 2008, its performance during that time might have been different if current policies had been in effect.

For the period ended April 30, 2011, the 30-day SEC yield was 3.96%, 3.62%, 3.41% and 2.87% for Institutional Class, Trust Class, Class A and Class C shares, respectively. Neuberger Berman Management LLC currently absorbs certain expenses of the Fund. Absent such arrangements, the 30-day SEC yield would have been 3.66%, 3.31%, 3.00% and 2.51% for Institutional Class, Trust Class, Class A and Class C shares, respectively, and average annual returns would have been lower.

As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2010 were 0.97%, 1.37%, 1.38% and 2.11% for Institutional Class,Trust Class, Class A and Class C shares, respectively (prior to any fee waivers and/or expense reimbursements). The expense ratios net of waivers and/or reimbursements were 0.76%, 1.11%, 1.16% and 1.86% for Institutional Class, Trust Class, Class A and Class C shares, respectively. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through 10/31/2021 for Institutional Class, Class A and Class C shares, and through 10/31/2014 for Trust Class shares. Absent these caps, returns would have been lower.

Endnotes

1	Neuberger Berman Management LLC ("Management") has contractually undertaken to forgo current payment of fees and/or reimburse Neuberger Berman Municipal Intermediate Bond Fund so that its total annual operating expenses (excluding interest, taxes, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses, if any) ("Operating Expenses") are limited to 0.65%, 0.50%, 0.87% and 1.62% of average daily net assets for the Investor Class, Institutional Class, Class A and Class C, respectively. These undertakings last until October 31, 2014. Each class of the Fund has agreed to repay Management for fees and expenses forgone and/or its excess Operating Expenses previously reimbursed by Management, pursuant to the contractual expense limitation, so long as its annual Operating Expenses during the period do not exceed its above-stated expense limitation, and the repayment is made within three years after the year in which Management issued the reimbursement or waived fees. Absent such forgone fees and/or reimbursements, the performance of each class of the Fund would have been lower. For the period ended April 30, 2011, there were no repayments of expenses to Management.

2	Management has contractually undertaken to forgo current payment of fees and/or reimburse Neuberger Berman High Income Bond Fund so that its total annual operating expenses (excluding interest, taxes, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses, if any) ("Operating Expenses") are limited to 1.00%, 0.75%, 1.12%, 1.87% and 1.37% of average daily net assets for the Investor Class, Institutional Class, Class A, Class C and Class R3, respectively. These undertakings last until October 31, 2014. Each class of the Fund has agreed to repay Management for fees and expenses forgone and/or its excess Operating Expenses previously reimbursed by Management, pursuant to the contractual expense limitation, so long as its annual Operating Expenses during the period do not exceed its above-stated expense limitation, and the repayment is made within three years after the year in which Management issued the reimbursement or waived fees. Absent such forgone fees and/or reimbursements, the performance of each class of the Fund would have been lower. For the period ended April 30, 2011, the Institutional Class, Class A and Class R3 of the Fund reimbursed Management $34,147, $14,282 and $46, respectively.

3	Management has contractually undertaken to forgo current payment of fees and/or reimburse Neuberger Berman Core Bond Fund so that its total annual operating expenses (excluding interest, taxes, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses, if any) ("Operating Expenses") are limited to 0.85%, 0.45%, 0.85% and 1.60% of average daily net assets for the Investor Class, Institutional Class, Class A and Class C, respectively. These undertakings last until October 31, 2021. Each class of the Fund has agreed to repay Management for fees and expenses forgone and/or its excess Operating Expenses previously reimbursed by Management pursuant to the contractual expense limitation, so long as its annual Operating Expenses during the period do not exceed its above-stated expense limitation, and the repayment is made within three years after the year in which Management issued the reimbursement or waived fees. Absent such forgone fees and/or reimbursements, the performance of each class of the Fund would have been lower. For the period ended April 30, 2011, there were no repayments of expenses to Management. In addition, Management has voluntarily agreed to waive its management fee in the amount of 0.12% (0.06% as of May 1, 2011, 0.25% prior to March 3, 2010 and 0.20% prior to March 1, 2006) of the Fund's average daily net assets. Management may, at its sole discretion, modify or terminate this voluntary waiver at any time without notice to the Fund. Absent such waiver, the performance of each class of the Fund would have been lower.

4	Management has contractually undertaken to forgo current payment of fees and/or reimburse Neuberger Berman Strategic Income Fund so that its total annual operating expenses (excluding interest, taxes, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses, if any) (“Operating Expenses”) are limited to 1.10%, 0.75% (effective March 1, 2008, and 0.85% through February 29, 2008), 1.15% and 1.85% of average daily net assets for the Trust Class, Institutional Class, Class A and Class C, respectively. These undertakings last until October 31, 2014 for the Trust Class and until October 31, 2021 for the Institutional Class, Class A and Class C. Each class of the Fund has agreed to repay Management for fees and expenses forgone and/or its excess Operating Expenses previously reimbursed by Management, pursuant to the contractual expense limitation, so long as its annual

	Operating Expenses during the period do not exceed its above-stated expense limitation, and the repayment is made within three years after the year in which Management issued the reimbursement or waived fees. Absent such forgone fees and/or reimbursements, the performance of each class of the Fund would have been lower. For the period ended April 30, 2011, there were no repayments of expenses to Management.

5	Management has contractually undertaken to forgo current payment of fees and/or reimburse Neuberger Berman Short Duration Bond Fund so that its total annual operating expenses (excluding interest, taxes, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses, if any) (“Operating Expenses”) are limited to 0.70%, 0.50%, 0.80%, 0.87% and 1.62% for the Investor Class, Institutional Class, Trust Class, Class A and Class C, respectively. These undertakings last until October 31, 2014. Each class of the Fund has agreed to repay Management for fees and expenses forgone and/or its excess Operating Expenses previously reimbursed by Management, pursuant to the contractual expense limitation, so long as its annual Operating Expenses during the period do not exceed its above-stated expense limitation, and the repayment is made within three years after the year in which Management issued the reimbursement or waived fees. Absent such forgone fees and/or reimbursements, the performance of each class of the Fund would have been lower. For the period ended April 30, 2011, there were no repayments of expenses to Management.

6	Management has contractually undertaken to forgo current payment of fees and/or reimburse Neuberger Berman Floating Rate Income Fund so that its total annual operating expenses (excluding interest, taxes, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses, if any) (“Operating Expenses”) are limited to 0.70%, 1.07% and 1.82% of average daily net assets for the Institutional Class, Class A and Class C, respectively. These undertakings last until October 31, 2014. Each class of the Fund has agreed to repay Management for fees and expenses forgone and/or its excess Operating Expenses previously reimbursed by Management, pursuant to the contractual expense limitation, so long as its annual Operating Expenses during the period do not exceed its above-stated expense limitation, and the repayment is made within three years after the year in which Management issued the reimbursement or waived fees. Absent such forgone fees and/or reimbursements, the performance of each class of the Fund would have been lower. For the period ended April 30, 2011, there were no repayments of expenses to Management.

7	Tax-equivalent effective yield is the taxable effective yield that an investor would have had to receive in order to realize the same level of yield after federal income taxes at the highest federal tax rate, currently 35%, assuming that all of a fund’s income is exempt from federal income taxes.

8	A portion of the income may be a tax preference item for purposes of the federal alternative minimum tax for certain investors.

9	The Fund is the successor to Lipper High Income Bond Fund (“Lipper Fund”). The total return data for the periods prior to September 7, 2002, are those of Lipper Fund Premier Class. The performance information for Investor Class is that of Lipper Fund Premier Class for the period April 1, 1996, through September 6, 2002. The investment policies, objectives, guidelines and restrictions of the Fund are in all material respects the same as those of Lipper Fund. Returns would have been lower if the manager of Lipper Fund had not waived certain of its fees during the periods shown.

10	The Fund is the successor to Ariel Premier Bond Fund (“Ariel Bond Fund”). The total return data for the periods prior to June 13, 2005, are those of Ariel Bond Fund Institutional Class and Ariel Bond Fund Investor Class. The performance information for Institutional Class is that of Ariel Bond Fund Institutional Class for the period October 1, 1995 (date of inception) through June 10, 2005. The performance information for Investor Class is that of Ariel Bond Fund Institutional Class for the period October 1, 1995 through January 31, 1997 (the period prior to the class’ commencement of operations), and that of Ariel Bond Fund Investor Class for the period February 1, 1997 (class’ commencement of operations) through June 10, 2005. Ariel Bond Fund Institutional Class had lower expenses and typically higher returns than Ariel Bond Fund Investor Class. The investment policies, guidelines and restrictions of the Fund are in all material respects the same as those of Ariel Bond Fund. Returns would have been lower if the manager of Ariel Bond Fund had not waived certain of its fees during the periods shown.


11	The Trust Class, Class A and Class C of Neuberger Berman Strategic Income Fund commenced operations on April 2, 2007, December 20, 2007 and December 20, 2007, respectively. The performance information for Trust Class, Class A and Class C prior to the class' commencement of operations is that of the Institutional Class of Neuberger Berman Strategic Income Fund. In making this translation, the performance information of the Institutional Class has been adjusted to reflect the appropriate sales charge applicable to Class A and Class C shares, but has not been adjusted to take into account differences in class specific Operating Expenses (such as 12b-1 fees). The Institutional Class has lower expenses and typically higher returns than Trust Class, Class A or Class C.

12	The Institutional Class, Class A, Class C and Class R3 of Neuberger Berman High Income Bond Fund each commenced operations on May 27, 2009. The performance information for Institutional Class, Class A, Class C and Class R3 prior to the class' commencement of operations is that of the Investor Class of Neuberger Berman High Income Bond Fund. In making this translation, the performance information of the Investor Class has been adjusted to reflect the appropriate sales charge applicable to Class A and Class C shares, but has not been adjusted to take into account differences in class specific Operating Expenses (such as 12b-1 fees). The Investor Class has lower expenses and typically higher returns than Class A, Class C or Class R3. The Institutional Class has lower expenses and typically higher returns than Investor Class.

13	The date used to calculate Life of Fund performance for the index is the inception date of the oldest share class.

14	Please see "Glossary of Indices" starting on page 19 for a description of indices. Please note that indices do not take into account any fees and expenses or tax consequences of investing in the individual securities that they track, and that individuals cannot invest directly in any index. Data about the performance of these indices are prepared or obtained by Management and include reinvestment of all income dividends and distributions. The Fund may invest in securities not included in the described indices or may not invest in all securities included in the described indices.

15	Class A and Class C of Neuberger Berman Core Bond Fund each commenced operations on December 20, 2007. The performance information for Class A and Class C prior to the class' commencement of operations is that of the Institutional Class of Neuberger Berman Core Bond Fund. In making this translation, the performance information for the Institutional Class has been adjusted to reflect the appropriate sales charge applicable to Class A and Class C shares, but has not been adjusted to take into account differences in class specific Operating Expenses (such as 12b-1 fees). The Institutional Class has lower expenses and typically higher returns than Class A or Class C.

16	For Neuberger Berman Short Duration Bond Fund, Life of Fund performance shown for the Trust Class, Institutional Class, Class A and Class C is that of the Fund's Investor Class from the inception date of the Investor Class to the inception date of each other Class. The Trust Class of Short Duration Bond Fund commenced operations on August 30, 1993. The Institutional Class, Class A and Class C of Neuberger Berman Short Duration Bond Fund each commenced operations on June 21, 2010. The performance information for Trust Class, Institutional Class, Class A and Class C prior to the class' commencement of operations is that of the Investor Class of Neuberger Berman Short Duration Bond Fund. In making this translation, the performance information of the Investor Class has been adjusted to reflect the appropriate sales charge applicable to Class A and Class C shares, but has not been adjusted to take into account differences in class specific Operating Expenses (such as 12b-1 fees). The Investor Class has lower expenses and typically higher returns than Trust Class, Class A or Class C. The Institutional Class has lower expenses and typically higher returns than Investor Class.

17	The Institutional Class and Class C of Neuberger Berman Floating Rate Income Fund each commenced operations on December 30, 2009. The performance information for Institutional Class and Class C prior to the class' commencement of operations is that of Class A of Neuberger Berman Floating Rate Income Fund. In making this translation, the performance information (at NAV) of Class A has been adjusted to reflect the appropriate sales charge applicable to Class C shares, but has not been adjusted to take into account differences in class specific operating expenses (such as 12b-1 fees). Class A has higher expenses and typically lower returns (at NAV) than Institutional Class. Class A has lower expenses and typically higher returns (at NAV) than Class C.

The Institutional Class, Class A and Class C of Neuberger Berman Municipal Intermediate Bond Fund each commenced operations on June 21, 2010. The performance information for Institutional Class, Class A and Class C prior to the class' commencement of operations is that of the Investor Class of Neuberger Berman Municipal Intermediate Bond Fund. In making this translation, the performance information of the Investor Class has been adjusted to reflect the appropriate sales charge applicable to Class A and Class C shares, but has not been adjusted to take into account differences in class specific Operating Expenses (such as 12b-1 fees). The Investor Class has lower expenses and typically higher returns than Class A and Class C. The Institutional Class has lower expenses and typically higher returns than Investor Class.

Glossary of Indices

Barclays Capital 1-3 Year U.S. Government/Credit Index:		An unmanaged index that includes all bonds in the U.S. Government/Credit Index with at least one to three years to maturity. The U.S. Government/Credit Index includes all securities in the Government and Credit Indices. The Government Index includes Treasuries (i.e., public obligations of the U.S. Treasury that have remaining maturities of more than one year) and agencies (i.e., publicly issued debt of U.S. Government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. Government). The Credit Index includes publicly issued U.S. corporate and foreign debentures and secured notes that meet specified maturity, liquidity, and quality requirements. All bonds in the index must meet the following additional criteria: must have at least one year to final maturity regardless of call features; must have at least $250 million par amount outstanding; must be rated investment-grade (Baa3/BBB- or higher) by at least two of the following ratings agencies: Standard & Poor's, Moody's Investors Services, Inc., and Fitch, Inc.; must be fixed rate; must be dollar-denominated and non-convertible; and must be publicly issued.

Barclays Capital 7-Year General Obligation Index:		An unmanaged total return performance benchmark for the 7-year (6-8) maturity component of the Barclays Capital General Obligation ("G.O.") Index, which tracks the performance of the investment grade G.O. (state and local) tax-exempt bond market.

Barclays Capital U.S. Aggregate Index:		An unmanaged index that represents the U.S. domestic investment grade bond market. It is comprised of the Barclays Capital Government/Corporate Bond Index, Mortgage-Backed Securities Index, and Asset-Backed Securities Index, including securities that are of investment-grade quality or better, have at least one year to maturity, and have an outstanding par value of at least $100 million.

Barclays Capital U.S. Corporate High Yield 2% Issuer Cap Index:		An unmanaged sub-index of the Barclays Capital U.S. Corporate High Yield Index (which includes all U.S. dollar-denominated, taxable, fixed rate, noninvestment grade debt), capped such that no single issuer accounts for more than 2% of the index weight.

S&P/LTSA Leveraged Loan Index:		A daily total return index that uses Loan Syndications and Trading Association (LSTA)/Loan Pricing Corporation (LPC) mark-to-market pricing to calculate market value change. On a real-time basis, the Index tracks the current outstanding balance and spread over LIBOR for fully funded term loans. The Index represents a broad cross section of leveraged loans syndicated in the United States, including dollar-denominated loans to overseas issuers.

BofA Merrill Lynch U.S. High Yield Master II Constrained Index:		An unmanaged market value-weighted index of all domestic and Yankee high-yield bonds, including deferred interest bonds and payment-in-kind securities. Qualifying bonds must have at least one year remaining to maturity, a fixed coupon schedule and a minimum amount outstanding of $100 million. Qualifying bonds are capitalization weighted provided the total allocation to an individual issuer does not exceed 2%.

Please note that indices do not take into account any fees and expenses or any tax consequences of investing in the individual securities that they track and that individuals cannot invest directly in any index. Data about the performance of these indices are prepared or obtained by Management and include reinvestment of all income dividends and distributions. The Funds may invest in securities not included in the above-described indices.

Information About Your Fund's Expenses

These tables are designed to provide information regarding costs related to your investments. All mutual funds incur operating expenses, which include management fees, fees for administrative services and costs of shareholder reports, among others. The following examples are based on an investment of $1,000 made at the beginning of the six month period ended April 30, 2011 and held for the entire period. The table illustrates each fund's costs in two ways:

Actual Expenses and Performance:		The first section of the table provides information about actual account values and actual expenses in dollars, based on the fund's actual performance during the period. You may use the information in this line, together with the amount you invested, to estimate the expenses you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section of the table under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid over the period.

Hypothetical Example for Comparison Purposes:		The second section of the table provides information about hypothetical account values and hypothetical expenses based on the fund's actual expense ratio and an assumed rate of return at 5% per year before expenses. This return is not the fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in these funds versus other funds. To do so, compare the expenses shown in this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses in the tables are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the information under the heading "Hypothetical (5% annual return before expenses)" is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

Expense Information as of 4/30/11 (Unaudited)

Neuberger Berman Income Funds
	ACTUAL									HYPOTHETICAL (5% ANNUAL RETURN BEFORE EXPENSES)(2)
	Beginning Account Value 11/1/10		Ending Account Value 04/30/11		Expenses Paid During the Period(1) 11/1/10 - 04/30/11		Expense Ratio			Beginning Account Value 11/1/10		Ending Account Value 04/30/11		Expenses Paid During the Period(1) 11/1/10 - 04/30/11		Expense Ratio
Neuberger Berman Core Bond Fund
Investor Class	$	1,000.00	$	1,011.60	$	4.24		.85	%	$	1,000.00	$	1,020.58	$	4.26		.85	%
Institutional Class	$	1,000.00	$	1,013.60	$	2.25		.45	%	$	1,000.00	$	1,022.56	$	2.26		.45	%
Class A	$	1,000.00	$	1,011.60	$	4.24		.85	%	$	1,000.00	$	1,020.58	$	4.26		.85	%
Class C	$	1,000.00	$	1,006.90	$	7.96		1.60	%	$	1,000.00	$	1,016.86	$	8.00		1.60	%
Neuberger Berman Floating Rate Income Fund
Institutional Class	$	1,000.00	$	1,039.70	$	3.54		.70	%	$	1,000.00	$	1,021.32	$	3.51		.70	%
Class A	$	1,000.00	$	1,037.70	$	5.41		1.07	%	$	1,000.00	$	1,019.49	$	5.36		1.07	%
Class C	$	1,000.00	$	1,033.70	$	9.18		1.82	%	$	1,000.00	$	1,015.77	$	9.10		1.82	%
Neuberger Berman High Income Bond Fund
Investor Class	$	1,000.00	$	1,056.50	$	4.39		.86	%	$	1,000.00	$	1,020.53	$	4.31		.86	%
Institutional Class	$	1,000.00	$	1,057.10	$	3.83		.75	%	$	1,000.00	$	1,021.08	$	3.76		.75	%
Class A	$	1,000.00	$	1,055.20	$	5.71		1.12	%	$	1,000.00	$	1,019.24	$	5.61		1.12	%
Class C	$	1,000.00	$	1,051.20	$	9.51		1.87	%	$	1,000.00	$	1,015.52	$	9.35		1.87	%
Class R3	$	1,000.00	$	1,053.90	$	6.98		1.37	%	$	1,000.00	$	1,018.00	$	6.85		1.37	%
Neuberger Berman Municipal Intermediate Bond Fund
Investor Class	$	1,000.00	$	991.90	$	3.21		.65	%	$	1,000.00	$	1,021.57	$	3.26		.65	%
Institutional Class	$	1,000.00	$	991.80	$	2.47		.50	%	$	1,000.00	$	1,022.32	$	2.51		.50	%
Class A	$	1,000.00	$	989.10	$	4.29		.87	%	$	1,000.00	$	1,020.48	$	4.36		.87	%
Class C	$	1,000.00	$	987.20	$	7.98		1.62	%	$	1,000.00	$	1,016.76	$	8.10		1.62	%
Neuberger Berman Short Duration Bond Fund
Investor Class	$	1,000.00	$	1,008.60	$	3.49		.70	%	$	1,000.00	$	1,021.32	$	3.51		.70	%
Institutional Class	$	1,000.00	$	1,008.30	$	2.49		.50	%	$	1,000.00	$	1,022.32	$	2.51		.50	%
Trust Class	$	1,000.00	$	1,007.80	$	3.98		.80	%	$	1,000.00	$	1,020.83	$	4.01		.80	%
Class A	$	1,000.00	$	1,006.10	$	4.33		.87	%	$	1,000.00	$	1,020.48	$	4.36		.87	%
Class C	$	1,000.00	$	1,002.40	$	8.04		1.62	%	$	1,000.00	$	1,016.76	$	8.10		1.62	%
Neuberger Berman Strategic Income Fund
Institutional Class	$	1,000.00	$	1,022.10	$	3.76		.75	%	$	1,000.00	$	1,021.08	$	3.76		.75	%
Trust Class	$	1,000.00	$	1,020.40	$	5.51		1.10	%	$	1,000.00	$	1,019.34	$	5.51		1.10	%
Class A	$	1,000.00	$	1,020.10	$	5.76		1.15	%	$	1,000.00	$	1,019.09	$	5.76		1.15	%
Class C	$	1,000.00	$	1,016.60	$	9.25		1.85	%	$	1,000.00	$	1,015.62	$	9.25		1.85	%

(1)	For each class, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown), unless otherwise indicated.

(2)	Hypothetical 5% annual return before expenses is calculated by multiplying the number of days in the most recent period divided by 365.

Schedule of Investments Neuberger Berman Core Bond Fund (Unaudited)

PRINCIPAL AMOUNT			VALUE†

(000's omitted)			(000's omitted)

U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government (19.5%)
$	485	U.S. Treasury Bonds, 6.88%, due 8/15/25	$	646
	2,490	U.S. Treasury Bonds, 4.50%, due 2/15/36		2,552	ØØ
	10,539	U.S. Treasury Inflation Index Notes, 2.38%, due 1/15/17		12,101	ØØ
	1,108	U.S. Treasury Inflation Index Notes, 1.13%, due 1/15/21		1,148
	2,350	U.S. Treasury Notes, 2.38%, due 10/31/14		2,439	ØØ
	3,400	U.S. Treasury Notes, 3.25%, due 7/31/16		3,601	ØØ
	17,920	U.S. Treasury Notes, 3.13%, due 1/31/17		18,753	ØØ

	Total U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government (Cost $40,156)			41,240

U.S. Government Agency Securities (0.4%)
	820	Freddie Mac, Notes, 1.13%, due 12/16/13 (Cost $819)		818

Mortgage-Backed Securities (47.3%)

Collateralized Mortgage Obligations (1.3%)
	229	Banc of America Funding Corp., Ser. 2005-F, Class 4A1, 3.14%, due 9/20/35		185	µ
	70	Banc of America Funding Corp., Ser. 2006-G, Class 2A1, 0.43%, due 7/20/36		59	µ
	131	Countrywide Asset-Backed Certificates, Ser. 2005-IM2, Class A3, 0.48%, due 1/25/36		99	µ
	298	First Horizon Mortgage Pass-Through Trust, Ser. 2005-AR5, Class 2A1, 2.75%, due 11/25/35		245	µ
	219	GSR Mortgage Loan Trust, Ser. 2005-AR3, Class 6A1, 2.77%, due 5/25/35		181	µ
	379	GSR Mortgage Loan Trust, Ser. 2007-AR1, Class 2A1, 5.44%, due 3/25/37		278	µ
	205	HSI Asset Loan Obligation, Ser. 2007-AR1, Class 2A1, 5.76%, due 1/25/37		136	µ
	81	Impac Secured Assets Corp., Ser. 2006-3, Class A4, 0.30%, due 11/25/36		77	µ
	43	IndyMac INDX Mortgage Loan Trust, Ser. 2006-AR7, Class 3A1, 2.91%, due 5/25/36		26	µ
	412	IndyMac INDX Mortgage Loan Trust, Ser. 2006-AR11, Class 2A1, 3.12%, due 6/25/36		237	µ
	560	JP Morgan Mortgage Trust, Ser. 2005-A3, Class 7CA1, 2.66%, due 6/25/35		480	µ
	174	Nomura Asset Acceptance Corp., Ser. 2007-2, Class A1A, 0.33%, due 4/25/47		81	µ
	115	Opteum Mortgage Acceptance Corp., Ser. 2005-3, Class A1B, 0.47%, due 7/25/35		109	µ
	246	Residential Accredit Loans, Inc., Ser. 2005-QA10, Class A31, 3.82%, due 9/25/35		173	µ
	315	Residential Accredit Loans, Inc., Ser. 2006-QA1, Class A21, 3.84%, due 1/25/36		176	µ
	137	Residential Accredit Loans, Inc., Ser. 2006-QO7, Class 3A2, 0.42%, due 9/25/46		62	µ
				2,604
Commercial Mortgage-Backed (10.6%)
	515	Banc of America Commercial Mortgage, Inc., Ser. 2007-3, Class A4, 5.62%, due 6/10/49		554	µ
	500	Banc of America Commercial Mortgage, Inc., Ser. 2007-4, Class ASB, 5.71%, due 2/10/51		542
	1,000	Bear Stearns Commercial Mortgage Securities, Ser. 2007-PW15, Class A4, 5.33%, due 2/11/44		1,068	ØØ
	400	Bear Stearns Commercial Mortgage Securities, Ser. 2007-PW17, Class A4, 5.69%, due 6/11/50		440
	1,050	Commercial Mortgage Loan Trust, Ser. 2008-LS1, Class A4B, 6.01%, due 12/10/49		1,161	µ
	1,000	Commercial Mortgage Pass-Through Certificates, Ser. 2006-C8, Class A4, 5.31%, due 12/10/46		1,081
	101	Credit Suisse First Boston Mortgage Securities Corp., Ser. 2001-CK6, Class A3, 6.39%, due 8/15/36		102
	134	Credit Suisse Mortgage Capital Certificates, Ser. 2007-TF2A, Class A1, 0.40%, due 4/15/22		132	ñµ
	80	Credit Suisse Mortgage Capital Certificates, Ser. 2007-C3, Class A4, 5.72%, due 6/15/39		86	µ
	1,200	Credit Suisse Mortgage Capital Certificates, Ser. 2006-C4, Class A3, 5.47%, due 9/15/39		1,301	ØØ
	500	Credit Suisse Mortgage Capital Certificates, Ser. 2007-C4, Class A4, 5.80%, due 9/15/39		541	µ
	100	Credit Suisse Mortgage Capital Certificates, Ser. 2007-C1, Class A3, 5.38%, due 2/15/40		106
	1,000	Credit Suisse Mortgage Capital Certificates, Ser. 2007-C5, Class A4, 5.70%, due 9/15/40		1,063
	250	Credit Suisse Mortgage Capital Certificates, Ser. 2008-C1, Class A3, 6.47%, due 2/15/41		275	µ
	750	CW Capital Cobalt Ltd., Ser. 2007-C3, Class A4, 5.82%, due 5/15/46		813	µ
	503	DBUBS Mortgage Trust, Ser. 20011-LC1A, Class A1, 3.74%, due 11/10/46		517	ñ
	1,000	Greenwich Capital Commercial Funding Corp., Ser. 2007-GG11, Class A4, 5.74%, due 12/10/49		1,084

See Notes to Schedule of Investments

PRINCIPAL AMOUNT			VALUE†

(000's omitted)			(000's omitted)

$	600	GS Mortgage Securities Corp. II, Ser. 2006-GG6, Class A4, 5.55%, due 4/10/38	$	654
	400	GS Mortgage Securities Corp. II, Ser. 2006-GG8, Class A4, 5.56%, due 11/10/39		438
	305	GS Mortgage Securities Corp. II, Ser. 2011-GC3, Class A4, 4.75%, due 3/10/44		316	ñ
	1,300	GS Mortgage Securities Corp. II, Ser. 2007-GG10, Class A4, 5.81%, due 8/10/45		1,413	µØØ
	1,100	JP Morgan Chase Commercial Mortgage Securities Corp., Ser. 2006-LDP9, Class A3, 5.34%, due 5/15/47		1,182	ØØ
	1,200	JP Morgan Chase Commercial Mortgage Securities Corp., Ser. 2007-LDPX, Class A3, 5.42%, due 1/15/49		1,300	ØØ
	1,270	JP Morgan Chase Commercial Mortgage Securities Corp., Ser. 2007-LD11, Class A4, 5.82%, due 6/15/49		1,386	µØØ
	555	JP Morgan Chase Commercial Mortgage Securities Corp., Ser. 2007-CB20, Class ASB, 5.69%, due 2/12/51		592
	1,219	JP Morgan Chase Commercial Mortgage Securities Corp., Ser. 2007-LD12, Class A4, 5.88%, due 2/15/51		1,333	ØØ
	1,000	Merrill Lynch/Countrywide Commercial Mortgage Trust, Ser. 2007-5, Class A4, 5.38%, due 8/12/48		1,067
	1,400	Merrill Lynch/Countrywide Commercial Mortgage Trust, Ser. 2007-7, Class A4, 5.74%, due 6/12/50		1,520	µØØ
	300	Morgan Stanley Capital I, Ser. 2007-IQ16, Class A4, 5.81%, due 12/12/49		331
				22,398
Fannie Mae (21.0%)
	24	Fannie Mae Grantor Trust, Ser. 2002-T5, Class A1, 0.45%, due 5/25/32		23	µ
	5,414	Pass-Through Certificates, 6.00%, due 11/1/15 – 6/1/38		5,929
	952	Pass-Through Certificates, 5.00%, due 3/1/21 – 7/1/39		1,009
	86	Pass-Through Certificates, 8.50%, due 4/1/34		101
	5,575	Pass-Through Certificates, 5.50%, due 11/1/35 – 1/1/39		6,007
	3,585	Pass-Through Certificates, 4.50%, TBA, 30 Year Maturity		3,689	Ø
	4,700	Pass-Through Certificates, 5.00%, TBA, 30 Year Maturity		4,961	Ø
	19,440	Pass-Through Certificates, 5.50%, TBA, 30 Year Maturity		20,922	Ø
	1,615	Pass-Through Certificates, 6.00%, TBA, 30 Year Maturity		1,766	Ø
				44,407
Freddie Mac (14.4%)
	381	Pass-Through Certificates, 5.00%, due 5/1/23 – 1/1/39		404
	35	Pass-Through Certificates, 6.50%, due 11/1/25		39
	311	Pass-Through Certificates, 5.31%, due 2/1/37		328	µ
	692	Pass-Through Certificates, 5.29%, due 4/1/37		732	µ
	200	Pass-Through Certificates, 6.00%, due 12/1/37		219
	722	Pass-Through Certificates, 5.50%, due 10/1/38 & 11/1/38		777
	2,601	Pass-Through Certificates, 4.00%, due 12/1/40 – 2/1/41		2,588
	17,020	Pass-Through Certificates, 4.00%, TBA, 30 Year Maturity		16,911	Ø
	7,810	Pass-Through Certificates, 5.50%, TBA, 30 Year Maturity		8,392	Ø
				30,390
	Total Mortgage-Backed Securities (Cost $97,071)			99,799

Corporate Debt Securities (26.1%)

Airlines (1.3%)
	350	Continental Airlines, Inc., Pass-Through Certificates, Ser. 2010-1, Class A, 4.75%, due 1/12/21		341
	616	Continental Airlines, Inc., Pass-Through Certificates, Ser. 2007-1, Class A, 5.98%, due 4/19/22		631
	795	Delta Air Lines, Inc., Pass-Through Certificates, Ser. 2010-1, Class A, 6.20%, due 7/2/18		822
	883	Delta Air Lines, Inc., Pass-Through Certificates, Ser. 2009-1, Ser. A, 7.75%, due 12/17/19		963
				2,757

See Notes to Schedule of Investments

PRINCIPAL AMOUNT			VALUE†
(000's omitted)			(000's omitted)

Banking (6.5%)
$	970	Bank of America Corp., Senior Unsecured Notes, 4.50%, due 4/1/15	$	1,021	ØØ
	1,025	Bank of America Corp., Senior Unsecured Medium-Term Notes, 3.63%, due 3/17/16		1,030
	770	Bank of America Corp., Senior Unsecured Medium-Term Notes, Ser. L, 5.65%, due 5/1/18		820
	925	Bank of America Corp., Senior Unsecured Notes, 5.63%, due 7/1/20		971
	735	Citigroup, Inc., Senior Unsecured Notes, 5.50%, due 4/11/13		787
	670	Citigroup, Inc., Senior Unsecured Notes, 6.13%, due 11/21/17		743
	450	Citigroup, Inc., Senior Unsecured Notes, 8.13%, due 7/15/39		579
	1,025	Goldman Sachs Group, Inc., Subordinated Notes, 6.75%, due 10/1/37		1,062	ØØ
	455	Goldman Sachs Group, Inc., Senior Notes, 6.25%, due 2/1/41		467
	1,140	Morgan Stanley, Senior Unsecured Notes, 3.45%, due 11/2/15		1,140
	540	Morgan Stanley, Senior Unsecured Notes, 3.80%, due 4/29/16		542
	865	Morgan Stanley, Senior Unsecured Medium-Term Notes, Ser. F, 6.63%, due 4/1/18		966
	1,915	Morgan Stanley, Senior Unsecured Medium-Term Notes, Ser. F, 5.63%, due 9/23/19		1,990	ØØ
	1,490	Wells Fargo & Co., Senior Unsecured Medium-Term Notes, 4.60%, due 4/1/21		1,506	ØØ
				13,624
Chemicals (0.4%)
	885	The Dow Chemical Co., Senior Unsecured Notes, 4.25%, due 11/15/20		867

Commercial Services (0.3%)
	530	ERAC USA Finance Co., Guaranteed Notes, 7.00%, due 10/15/37		589	ñ

Diversified Financial Services (2.0%)
	975	American Express Credit Corp., Senior Unsecured Medium-Term Notes, Ser. C, 5.88%, due 5/2/13		1,056	ØØ
	655	American Express Credit Corp., Senior Unsecured Medium-Term Notes, Ser. D, 5.13%, due 8/25/14		715
	675	Banque PSA Finance, Senior Unsecured Notes, 4.38%, due 4/4/16		681	ñ
	1,030	General Electric Capital Corp., Senior Unsecured Notes, 5.90%, due 5/13/14		1,148	ØØ
	610	General Electric Capital Corp., Subordinated Notes, 5.30%, due 2/11/21		633
				4,233
Electric - Integrated (0.3%)
	690	Exelon Generation Co. LLC, Senior Unsecured Notes, 6.25%, due 10/1/39		700

Energy - Exploration & Production (0.3%)
	675	Nexen, Inc., Senior Unsecured Notes, 6.40%, due 5/15/37		693

Food (1.3%)
	1,075	Grupo Bimbo SAB de CV, Guaranteed Notes, 4.88%, due 6/30/20		1,083	ñØØ
	1,020	Kraft Foods, Inc., Senior Unsecured Notes, 6.50%, due 2/9/40		1,138
	525	Sigma Alimentos SA. de CV, Senior Unsecured Notes, 5.63%, due 4/14/18		526	ñ
				2,747
Gas Distribution (0.5%)
	425	Enterprise Products Operating LLC, Guaranteed Notes, 5.95%, due 2/1/41		426
	530	Kinder Morgan Energy Partners L.P., Senior Unsecured Notes, 6.38%, due 3/1/41		557
				983

See Notes to Schedule of Investments

PRINCIPAL AMOUNT			VALUE†

(000's omitted)			(000's omitted)

Industrial (0.2%)
$	435	Husky Energy, Inc., Senior Unsecured Notes, 5.90%, due 6/15/14	$	484

Insurance (1.8%)
	820	Hartford Financial Services Group, Inc., Senior Unsecured Notes, 5.38%, due 3/15/17		864
	530	Hartford Financial Services Group, Inc., Senior Unsecured Notes, 6.30%, due 3/15/18		582
	885	Nationwide Financial Services, Inc., Senior Unsecured Notes, 5.38%, due 3/25/21		901	ñ
	800	PPL WEM Holdings PLC, Senior Unsecured Notes, 3.90%, due 5/1/16		812	ñ
	695	Prudential Financial, Inc., Senior Unsecured Medium-Term Notes, Ser. D, 3.88%, due 1/14/15		727
				3,886
Integrated Energy (0.5%)
	1,050	Petrobras Int'l Finance Co., Guaranteed Notes, 5.38%, due 1/27/21		1,065

Iron/Steel (0.3%)
	545	Cliffs Natural Resources, Inc., Senior Unsecured Notes, 4.88%, due 4/1/21		552

Media (2.9%)
	800	DirecTV Holdings LLC, Guaranteed Notes, 3.55%, due 3/15/15		828
	760	DirecTV Holdings LLC, Guaranteed Notes, 5.00%, due 3/1/21		780	ØØ
	575	DirecTV Holdings LLC, Guaranteed Notes, 6.00%, due 8/15/40		573
	535	DirecTV Holdings LLC, Guaranteed Notes, 6.38%, due 3/1/41		559
	780	News America, Inc., Guaranteed Notes, 6.15%, due 2/15/41		795	ñ
	730	Time Warner Cable, Inc., Guaranteed notes, 8.75%, due 2/14/19		926	ØØ
	705	Time Warner Cable, Inc., Guaranteed Notes, 5.88%, due 11/15/40		687
	555	Time Warner, Inc., Guaranteed Notes, 6.10%, due 7/15/40		565
	395	Time Warner, Inc., Guaranteed Notes, 6.25%, due 3/29/41		411
				6,124
Media - Broadcast (0.7%)
	790	NBC Universal, Inc., Senior Unsecured Notes, 4.38%, due 4/1/21		771	ñ
	565	NBC Universal, Inc., Senior Unsecured Notes, 6.40%, due 4/30/40		597	ñ
				1,368
Media - Cable (0.1%)
	220	Comcast Corp., Guaranteed Notes, 6.40%, due 3/1/40		234

Metals/Mining Excluding Steel (0.2%)
	460	Southern Copper Corp., Senior Unsecured Notes, 5.38%, due 4/16/20		467

Pharmaceuticals (0.4%)
	735	Express Scripts, Inc., Guaranteed Notes, 3.13%, due 5/15/16		737

REITs (0.6%)
	770	Health Care REIT, Inc., Senior Unsecured Notes, 5.25%, due 1/15/22		773
	420	Simon Property Group LP, Senior Unsecured Notes, 10.35%, due 4/1/19		585
				1,358

See Notes to Schedule of Investments

PRINCIPAL AMOUNT			VALUE†

(000's omitted)			(000's omitted)

Specialty Retail (0.4%)
$	845	Home Depot, Inc., Senior unsecured Notes, 5.95%, due 4/1/41	$	866

Steel Producers/Products (1.4%)
	1,370	ArcelorMittal, Senior Unsecured Notes, 6.13%, due 6/1/18		1,482	ØØ
	945	ArcelorMittal, Senior Unsecured Notes, 9.85%, due 6/1/19		1,218	ØØ
	170	ArcelorMittal, Senior Unsecured Notes, 5.25%, due 8/5/20		171
				2,871
Telecom - Integrated/Services (0.2%)
	455	Qwest Corp., Senior Unsecured Notes, 7.50%, due 10/1/14		515

Telecom - Wireless (0.6%)
	1,290	Verizon Communications, Inc., Senior Unsecured Notes, 4.60%, due 4/1/21		1,318	ØØ

Telecommunications (2.3%)
	535	America Movil SAB de CV, Guaranteed Notes, 5.75%, due 1/15/15		597
	965	AT&T, Inc., Senior Unsecured Notes, 4.45%, due 5/15/21		971
	525	AT&T, Inc., Senior Unsecured Notes, 6.55%, due 2/15/39		572
	215	Telecom Italia Capital SA, Guaranteed Notes, 4.95%, due 9/30/14		227	ØØ
	950	Telefonica Emisiones SAU, Guaranteed Notes, 3.99%, due 2/16/16		969
	435	Telefonica Emisiones SAU, Guaranteed Notes, 5.13%, due 4/27/20		442
	985	Telefonica Emisiones SAU, Guaranteed Notes, 5.46%, due 2/16/21		1,022
				4,800
Tobacco (0.6%)
	1,045	Lorillard Tobacco Co., Guaranteed Notes, 8.13%, due 6/23/19		1,236

	Total Corporate Debt Securities (Cost $53,264)			55,074

Asset-Backed Securities (0.7%)
	330	Carrington Mortgage Loan Trust, Ser. 2006-NC3, Class A3, 0.36%, due 8/25/36		128	µ
	22	Chase Funding Mortgage Loan Asset-Backed Certificates, Ser. 2004-1, Class 2A2, 0.67%, due 12/25/33		21	µ
	110	Citigroup Mortgage Loan Trust, Inc., Ser. 2006-WFH1, Class M2, 0.58%, due 1/25/36		57	µ
	68	Countrywide Asset-Backed Certificates, Ser. 2006-BC1, Class 1A, 0.41%, due 4/25/36		58	µ
	73	Countrywide Asset-Backed Certificates, Ser. 2007-BC2, Class 2A1, 0.30%, due 6/25/37		72	µ
	31	Credit-Based Asset Servicing and Securitization, Ser. 2005-CB5, Class AV2, 0.47%, due 8/25/35		28	µ
	432	Credit-Based Asset Servicing and Securitization, Ser. 2006-CB3, Class AV3, 0.38%, due 3/25/36		363	µ
	11	Credit-Based Asset Servicing and Securitization, Ser. 2006-CB6, Class A22, 0.30%, due 7/25/36		11	µ
	42	Equifirst Mortgage Loan Trust, Ser. 2003-2, Class 3A3, 0.97%, due 9/25/33		38	µ
	81	Fannie Mae Whole Loan, Ser. 2003-W5, Class A, 0.43%, due 4/25/33		77	µ
	71	Household Home Equity Loan Trust, Ser. 2006-1, Class A1, 0.37%, due 1/20/36		65	µ
	84	Household Home Equity Loan Trust, Ser. 2006-2, Class A2, 0.39%, due 3/20/36		77	µ
	164	HSI Asset Securitization Corp. Trust, Ser. 2006-WMC1, Class A2, 0.31%, due 7/25/36		57	µ
	642	Knollwood CDO Ltd., Ser. 2006-2A, Class A2J, 0.70%, due 7/13/46		0	#µ*
	42	Morgan Stanley Capital I, Ser. 2004-WMC3, Class B3, 4.26%, due 1/25/35		2	µ
	45	MSCC Heloc Trust, Ser. 2003-2, Class A, 0.47%, due 4/25/16		41	µ
	372	Option One Mortgage Loan Trust, Ser. 2006-2, Class 2A2, 0.31%, due 7/25/36		251	µ
	13	Residential Asset Mortgage Products, Inc., Ser. 2003-RS2, Class AII, 0.89%, due 3/25/33		9	µ
	30	Residential Asset Mortgage Products, Inc., Ser. 2003-RS3, Class AII, 0.93%, due 4/25/33		22	µ
	9	Saxon Asset Securities Trust, Ser. 2004-1, Class A, 0.75%, due 3/25/35		7	µ

See Notes to Schedule of Investments

PRINCIPAL AMOUNT				VALUE†

(000's omitted)				(000's omitted)

$	34		SLM Student Loan Trust, Ser. 2008-6, Class A1, 0.67%, due 10/27/14	$	35	µ
	4		Specialty Underwriting & Residential Finance, Ser. 2003-BC1, Class A, 0.89%, due 1/25/34		3	µ
		Total Asset-Backed Securities (Cost $2,708)			1,422

NUMBER OF SHARES

Short-Term Investments (31.9%)
	67,425,634		State Street Institutional Liquid Reserves Fund Institutional Class (Cost $67,426)		67,426
		Total Investments (125.9%)(Cost $261,444)			265,779	##
		Liabilities, less cash, receivables and other assets [(25.9%)]			(54,639	)
		Total Net Assets (100.0%)		$	211,140

See Notes to Schedule of Investments

Schedule of Investments Neuberger Berman Floating Rate Income Fund (Unaudited)

PRINCIPAL AMOUNT			VALUE†

(000's omitted)			(000's omitted)

Bank Loan Obligationsµ (79.5%)

Aerospace & Defense (1.0%)
$	1,391	TASC, Inc., Term Loan B, 5.75%, due 12/18/15	$	1,392	¢^^
	667	TransDigm, Inc., Term Loan B, 4.00%, due 2/14/17		673
				2,065
AirTransport (1.2%)
	2,444	Delta Air Lines, Inc., Term Loan B, 5.50%, due 4/20/17		2,406

All Telecom (3.6%)
	1,130	ClientLogic Corp., Term Loan, 5.79%, due 1/30/14		1,129
	248	Integra Telecom, Inc., Term Loan B, 9.25%, due 4/15/15		248
	950	Intelsat Jackson Holdings S.A., Term Loan B, 5.25%, due 4/2/18		958
	2,029	PAETEC Holding Corp., Term Loan B, due 4/11/18		2,034	¢^^
	811	Springboard Finance, LLC, Term Loan A, 7.00%, due 2/23/15		816
	608	Syniverse Technologies, Inc., Term Loan B, 5.25%, due 1/21/18		614
	1,259	Yankee Cable Acquisition, LLC, Term Loan B1, 6.50%, due 8/26/16		1,261
				7,060
Automotive (1.2%)
	1,151	Federal Mogul Corp., Term Loan B, 2.15% – 2.18%, due 12/29/14		1,121	¢^^
	587	Federal Mogul Corp., Term Loan C, 2.15% – 2.18%, due 12/28/15		573	¢^^
	554	Tomkins LLC, Term Loan B, 4.25%, due 9/29/16		558
	229	UCI Int'l, Inc., Term Loan B, 5.50%, due 7/26/17		231
				2,483
Building & Development (4.3%)
	608	Armstrong World Industries, Inc., Term Loan B, 4.50%, due 3/9/18		610
	2,683	Capital Automotive LP, Term Loan B, 5.00%, due 3/10/17		2,668	¢^^
	697	Custom Building Products, Inc., Term Loan B, 5.75%, due 3/19/15		702
	1,119	Goodman Global, Inc., First Lien Term Loan, 5.75%, due 10/28/16		1,127
	45	Goodman Global, Inc., Second Lien Term Loan, 9.00%, due 10/30/17		46
	440	PGT Industries, Inc., Term Loan A2, 6.75%, due 2/14/12		433
	309	Realogy Corp., Letter of Credit, 4.51%, due 10/10/16		291
	2,721	Realogy Corp., Term Loan, 4.56%, due 10/10/16		2,558
				8,435
Business Equipment & Services (5.6%)
	1,337	Acosta, Inc., Term Loan, 4.75%, due 3/1/18		1,343
	1,750	Advantage Sales & Marketing LLC, Second Lien Term Loan, 9.25%, due 6/18/18		1,788
	594	AutoTrader.com, Inc., Term Loan B, 4.75%, due 12/15/16		598
	500	Brand Energy & Infrastructure Services, Inc., Term Loan, due 2/7/15		467	¢^^
	788	Brickman Group Holdings, Inc., Term Loan B, 7.25%, due 10/14/16		804
	814	Brock Holdings III, Inc., Term Loan B, 6.00%, due 3/16/17		823
	967	Brock Holdings III, Inc., Second Lien Term Loan, 10.00%, due 3/16/18		994
	1,305	IMS Health, Inc., Term Loan B, 4.50%, due 8/25/17		1,312
	1,165	Language Line, LLC, Second Lien Term Loan, 10.50%, due 12/16/16		1,192
	349	Protection One Alarm Monitoring, Inc., Term Loan B, 6.00%, due 5/16/16		350
	1,463	Transaction Network Services, Inc., Term Loan C, 6.00%, due 11/18/15		1,466
				11,137

See Notes to Schedule of Investments

PRINCIPAL AMOUNT			VALUE†

(000's omitted)			(000's omitted)

Cable & Satellite Television (0.1%)
$	100	Charter Communications Operating LLC, Term Loan, 7.25%, due 3/6/14	$	102

Chemicals & Plastics (4.5%)
	1,207	General Chemical Corp., Term Loan B, 5.00% – 5.75%, due 3/3/17		1,213
	485	Momentive Specialty Chemicals, Inc., Term Loan C1, 4.00%, due 5/5/15		483
	623	Momentive Specialty Chemicals, Inc., Term Loan C7, 4.06%, due 5/5/15		620
	204	Momentive Specialty Chemicals, Inc., Term Loan C2, 4.06%, due 5/5/15		203
	2,625	PQ Corp., Second Lien Term Loan, 6.72%, due 7/30/15		2,589
	1,851	Styron S.a.r.L. LLC, Term Loan B, 6.00%, due 8/2/17		1,872
	1,812	Univar, Inc., Term Loan B, 5.00%, due 6/30/17		1,824
				8,804
Conglomerates (0.3%)
	534	Walter Energy, Inc., Term Loan B, 4.00%, due 4/2/18		538

Consumer/Commercial/Lease Financing (0.4%)
	768	AWAS Capital, Inc., First Lien Term Loan, 7.75%, due 6/10/16		785

Containers & Glass Products (0.9%)
	487	Berry Plastics Corp., Term Loan C, 2.31%, due 4/3/15		469
	928	Graham Packaging Co. L.P., Term Loan C, 6.75%, due 4/5/14		936
	299	Graham Packaging Co. L.P., Term Loan D, 6.00%, due 9/23/16		301
				1,706
Drugs (1.3%)
	576	Warner Chilcott Co. LLC, Term Loan B2, 4.25%, due 3/15/18		579
	1,151	Warner Chilcott Co. LLC, Term Loan B1, 4.25%, due 3/15/18		1,159
	792	WC Luxco S.a.r.L., Term Loan B3, 4.25%, due 3/15/18		797
				2,535
Electronics/Electrical (6.0%)
	396	Aspect Software, Inc., Term Loan B, 6.25%, due 4/19/16		399
	1,217	Ceridian Corp., Term Loan, 3.21%, due 11/10/14		1,194
	458	CommScope, Inc., Term Loan B, 5.00%, due 1/14/18		461
	957	Datatel, Inc., First Lien Term Loan, 5.00%, due 2/20/17		959	¢^^
	716	Datatel, Inc., Second Lien Term Loan, 8.75%, due 2/19/18		725
	501	Deutsch Group, Term Loan B, due 6/21/14		476	¢^^
	499	Deutsch Group, Term Loan C, due 6/21/15		477	¢^^
	1,831	Edwards (Cayman Islands II) Ltd., Term Loan B, 5.50%, due 5/31/16		1,833
	3,006	Freescale Semiconductor, Inc., Term Loan B, 4.49%, due 12/1/16		3,004	¢^^
	763	NDS Finance Ltd., Term Loan B, 4.00%, due 3/12/18		764
	363	SkillSoft Corp., Term Loan B, 6.50%, due 5/26/17		369
	1,130	Verint Systems, Inc., Term Loan B, due 10/6/17		1,133	¢^^
				11,794

See Notes to Schedule of Investments

PRINCIPAL AMOUNT			VALUE†

(000's omitted)			(000's omitted)

Equipment Leasing (1.0%)
$	141	Delos Aircraft, Inc., Term Loan B2, 7.00%, due 3/17/16	$	142
	692	Int'l Lease Finance Corp., Term Loan B1, 6.75%, due 3/17/15		694
	1,085	NES Rentals Holdings, Inc., Second Lien Term Loan, 10.00%, due 7/20/13		1,077
				1,913
Farming/Agriculture (0.3%)
	666	WM Bolthouse Farms, Inc., First Lien Term Loan, 5.50% – 5.75%, due 2/11/16		670

Financial Intermediaries (5.0%)
	500	CIT Group, Inc., Term Loan 3, 6.25%, due 8/11/15		507
	599	Fifth Third Processing Solutions, Term Loan B, 5.50%, due 11/3/16		603
	150	Fifth Third Processing Solutions, Second Lien Term Loan, 8.25%, due 11/1/17		153
	3,036	First Data Corp., Term Loan B3, 2.96%, due 9/24/14		2,882
	884	Fortress Investment Group LLC, Term Loan B, 5.75%, due 9/30/15		892
	1,194	Harbourvest Partners, LLC, Term Loan B, 6.25%, due 12/14/16		1,200
	481	LPL Holdings, Inc., Term Loan, 5.25%, due 6/28/17		484
	2,090	Nuveen Investments, Inc., Term Loan, 5.77% – 5.81%, due 5/12/17		2,144
	168	Ocwen Financial Corp., Term Loan, 9.00%, due 7/29/15		168
	833	Springleaf Finance Corp., Term Loan B, 7.25%, due 4/21/15		834
				9,867
Food Products (2.0%)
	1,243	Del Monte Foods Co., Term Loan B, 4.50%, due 3/8/18		1,248
	270	Michael Foods Group, Inc., Term Loan, 4.25%, due 2/23/18		272
	1,593	NBTY, Inc., Term Loan B, 4.25%, due 10/2/17		1,603	¢^^
	874	Pinnacle Foods Holdings Corp., Term Loan D, 6.00%, due 4/2/14		885
				4,008
Food Service (0.6%)
	1,310	U.S. Foodservice, Inc., Term Loan B, 2.71%, due 7/3/14		1,267

Food/Drug Retailers (0.6%)
	1,286	Rite Aid Corp., Term Loan 5, 4.50%, due 2/28/18		1,278

Forest Products (0.3%)
	335	Pertus Sechszehnte GMBH, Term Loan B2, 2.59%, due 6/13/15		315
	335	Pertus Sechszehnte GMBH, Term Loan C2, 2.84%, due 6/13/16		317
				632
Health Care (7.6%)
	957	Aurora Diagnostics LLC, Term Loan B, 6.25%, due 5/21/16		957
	3,010	CareStream Health, Inc., Term Loan B, 5.00%, due 2/25/17		2,818	¢^^
	648	Catalent Pharma Solutions, Term Loan, 2.46%, due 4/10/14		631
	1,635	IASIS Healthcare LLC, Term Loan, 5.46%, due 6/13/14		1,646	¢^^
	1,395	IASIS Healthcare LLC, Term Loan B, due 4/18/18		1,400	¢^^
	2,721	Kindred Healthcare, Inc., Term Loan, due 2/7/18		2,717	¢^^
	848	Multiplan, Inc., Term Loan B, 4.75%, due 8/26/17		851
	335	Nyco Holdings 2 ApS, Term Loan B2, 4.21%, due 12/29/14		331
	335	Nyco Holdings 2 ApS, Term Loan C2, 4.71%, due 12/29/15		333

See Notes to Schedule of Investments

PRINCIPAL AMOUNT			VALUE†

(000's omitted)			(000's omitted)

$	785	RehabCare Group, Inc., Term Loan B, 6.00%, due 11/24/15	$	786
	599	Rural/Metro Operating Co. LLC, Term Loan B, 6.00%, due 11/24/16		605
	572	Sheridan Healthcare, Inc., Term Loan, 4.06%, due 6/13/14		568
	1,351	Universal Heath Services, Inc., Term Loan B, 4.00%, due 11/15/16		1,359
				15,002
Home Furnishings (0.9%)
	1,820	National Bedding Co. LLC, Second Lien Term Loan, 5.31%, due 2/28/14		1,788

Industrial Equipment (0.5%)
	905	Kinetek Acquistions Corp., Term Loan B1, 2.96% – 4.75%, due 11/11/13		863
	92	Kinetek Acquistions Corp., Term Loan B2, 2.96% – 4.75%, due 11/11/13		88
				951
Insurance (0.3%)
	571	Sedgwick CMS Holdings, Inc., Term Loan, 5.00%, due 12/30/16		576

Leisure Goods/Activities/Movies (1.6%)
	519	Cedar Fair L.P., Term Loan B, 4.00%, due 12/15/17		523
	500	LodgeNet Entertainment Corp., Term Loan, due 4/4/14		478	¢^^
	734	Six Flags Theme Parks, Inc., Term Loan B, 5.25%, due 6/30/16		740
	1,374	Summit Entertainment LLC, Term Loan, 7.50%, due 9/7/16		1,353
				3,094
Lodging & Casinos (3.6%)
	1,530	Ameristar Casinos, Inc., Term Loan B, due 4/13/18		1,543	¢^^
	691	Boyd Gaming Corp., Term Loan, 3.71%, due 12/17/15		678
	3,095	Caesars Entertainment Operating Co., Term Loan B2, 3.21% – 3.27%, due 1/28/15		2,896
	1,822	Caesars Entertainment Operating Co., Term Loan, 9.50%, due 10/31/16		1,930
				7,047
Nonferrous Metals/Minerals (1.5%)
	2,097	Fairmount Minerals Ltd., Term Loan B, 5.25%, due 3/1/17		2,113
	811	Novelis, Inc., Term Loan B, 4.00%, due 11/29/16		818
				2,931
Oil & Gas (0.4%)
	727	Dynegy Holdings, Inc., Letter of Credit, 4.03%, due 4/2/13		724

Publishing (6.2%)
	492	Cengage Learning Acquisitions, Inc., Term Loan, 2.46%, due 7/3/14		473
	3,459	Cengage Learning Acquisitions, Inc., Term Loan 1, 7.50%, due 7/3/14		3,477	¢^^
	211	Dex Media East LLC, Term Loan, 2.78% – 2.82%, due 10/24/14		168
	376	Dex Media West LLC, Term Loan, 7.00%, due 10/24/14		337
	721	Getty Images, Inc., Term Loan, 5.25%, due 11/7/16		729
	171	Instant Web, Inc., Term Loan DD, 3.59%, due 8/5/14		147
	1,645	Instant Web, Inc., Term Loan B, 3.59%, due 8/7/14		1,413
	1,202	Interactive Data Corp., Term Loan B, 4.75%, due 2/12/18		1,208
	691	Media General, Inc., Term Loan, 4.46% – 4.56%, due 3/29/13		667

See Notes to Schedule of Investments

PRINCIPAL AMOUNT			VALUE†

(000's omitted)			(000's omitted)

$	1,995	Postmedia Network, Inc., Term Loan C, 7.25%, due 7/13/16	$	2,010
	1,556	Quad Graphics, Inc., Term Loan B, 5.50%, due 4/14/16		1,558
				12,187
Radio & Television (5.4%)
	2,278	Clear Channel Communications, Inc., Term Loan A, 3.61%, due 7/29/14		2,145	¢^^
	2,099	Clear Channel Communications, Inc., Term Loan B, 3.86%, due 1/28/16		1,867
	2,732	Fox Acquisition Sub LLC, Term Loan B, 4.75% – 6.00%, due 7/14/15		2,743
	3,910	Univision Communications, Inc., Term Loan, 4.46%, due 3/31/17		3,820
				10,575
Retailers (except food & drug) (5.4%)
	1,328	AMSCAN Holdings, Inc., Term Loan B, 6.75%, due 12/4/17		1,341
	326	Bass Pro Group LLC, Term Loan, 5.00% – 5.75%, due 4/9/15		328
	1,763	Gymboree Corp., Term Loan, 5.00%, due 2/23/18		1,765
	1,137	Harbor Freight Tools USA, Inc., First Lien Term Loan, 6.50%, due 12/22/17		1,136
	1,494	Michaels Stores, Inc., Term Loan B2, 4.81% – 4.88%, due 7/31/16		1,503	¢^^
	1,200	Neiman Marcus Group, Inc., Term Loan B2, 4.31%, due 4/6/16		1,200
	1,230	PETCO Animal Supplies, Inc., Term Loan, 4.50%, due 11/24/17		1,239
	1,130	Pilot Travel Centers LLC, Term Loan B, 4.25%, due 3/30/18		1,138
	59	ServiceMaster Co., Term Loan DD, 2.72%, due 7/24/14		58
	590	ServiceMaster Co., Term Loan, 2.75% – 2.81%, due 7/24/14		580
	473	Toys 'R' Us-Delaware, Inc., Term Loan, 6.00%, due 9/1/16		476
				10,764
Steel (0.3%)
	662	JMC Steel Group, Inc., Term Loan, 4.75%, due 4/3/17		669

Utilities (5.6%)
	1,418	Bicent Power LLC, First Lien Term Loan B, 2.31%, due 6/30/14		1,198
	2,097	Calpine Corp., Term Loan, 4.50%, due 4/2/18		2,114
	58	Dynegy Holdings, Inc., Term Loan B, 4.03%, due 4/2/13		58
	305	EquiPower Resources Corp., Term Loan B, 5.75%, due 1/26/18		308
	250	FirstLight Power Resources, Inc., Second Lien Term Loan, 4.81%, due 5/1/14		238
	458	GenOn Energy, Inc., Term Loan B, 6.00%, due 9/8/17		463
	193	Great Point Power, Term Loan DD, 4.25%, due 3/10/17		192
	66	Longview Power LLC, Letter of Credit, 2.56%, due 2/28/14		64
	747	Longview Power LLC, Term Loan DD, 2.56%, due 2/28/14		729
	641	Longview Power LLC, Term Loan B, 2.56%, due 2/28/14		626
	3,438	Texas Competitive Electric Holdings Co. LLC, Term Loan, 4.73%, due 10/10/17		2,748	¢^^
	2,450	TPF Generation Holdings LLC, Second Lien Term Loan C, 4.56%, due 12/15/14		2,387	¢^^
				11,125
	Total Bank Loan Obligations (Cost $155,759)			156,918

Corporate Debt Securities (17.3%)

Aerospace/Defense (0.3%)
	565	BE Aerospace, Inc., Senior Unsecured Notes, 8.50%, due 7/1/18		630

See Notes to Schedule of Investments

PRINCIPAL AMOUNT			VALUE†

(000's omitted)			(000's omitted)

AirTransport (1.2%)
$	1,780	Continental Airlines, Inc., Senior Secured Notes, 6.75%, due 9/15/15	$	1,793	ñØØ
	235	Continental Airlines, Inc., Pass-Through Certificates, Ser. 2009-1, Class A, 9.00%, due 7/8/16		267	ØØ
	275	Delta Air Lines, Inc., Senior Secured Notes, 9.50%, due 9/15/14		295	ñ
				2,355
Auto Loans (0.5%)
	800	Ford Motor Credit Co. LLC, Senior Unsecured Notes, 8.00%, due 12/15/16		930	ØØ

Building Materials (0.2%)
	475	Ply Gem Industries, Inc., Senior Secured Notes, 8.25%, due 2/15/18		488	ñØØ

Chemicals (0.3%)
	438	Lyondell Chemical Co., Senior Secured Notes, 8.00%, due 11/1/17		488	ñ

Consumer/Commercial/Lease Financing (1.9%)
	855	CIT Group, Inc., Secured Notes, Ser. C, 5.25%, due 4/1/14		876	ñ
	1,015	CIT Group, Inc., Secured Notes, 7.00%, due 5/1/16		1,022	ØØ
	500	CIT Group, Inc., Secured Notes, 7.00%, due 5/1/17		504	ØØ
	105	Int'l Lease Finance Corp., Senior Secured Notes, 6.50%, due 9/1/14		111	ñ
	250	Int'l Lease Finance Corp., Senior Secured Notes, 6.75%, due 9/1/16		266	ñØØ
	905	Int'l Lease Finance Corp., Senior Secured Notes, 7.13%, due 9/1/18		973	ñ
				3,752
Department Stores (0.4%)
	745	Sears Holdings Corp., Senior Secured Notes, 6.63%, due 10/15/18		729	ñØØ

Diversified Financial Services (0.2%)
	443	AWAS Aviation Capital Ltd., Senior Secured Notes, 7.00%, due 10/15/16		451	ñ

Electric - Generation (2.6%)
	1,315	Calpine Corp., Senior Secured Notes, 7.25%, due 10/15/17		1,381	ñØØ
	1,040	Dynegy-Roseton Danskammer, Pass-Through Certificates, Ser. B, 7.67%, due 11/8/16		967	ØØ
	1,730	Energy Future Intermediate Holding Co. LLC, Senior Secured Notes, 10.00%, due 12/1/20		1,860
	963	Homer City Funding LLC, Senior Secured Notes, 8.14%, due 10/1/19		872	ØØ
				5,080
Electronics (0.5%)
	770	NXP BV Funding LLC, Senior Secured Notes, 9.75%, due 8/1/18		891	ñØØ

Energy - Exploration & Production (1.2%)
	1,600	Chesapeake Energy Corp., Guaranteed Notes, 6.88%, due 8/15/18		1,748
	615	Sandridge Energy, Inc., Guaranteed Floating Rate Notes, 3.93%, due 4/1/14		611	µØØ
				2,359
Gaming (0.6%)
	750	CityCenter Holdings LLC, Senior Secured Notes, 7.63%, due 1/15/16		782	ñØØ
	400	CityCenter Holdings LLC, Secured Notes, 10.75%, due 1/15/17		408	ñc
				1,190
Gas Distribution (0.3%)
	455	Energy Transfer Equity L.P., Senior Secured Notes, 7.50%, due 10/15/20		498	ØØ

Health Facilities (0.8%)
	1,185	HCA, Inc., Senior Secured Notes, 8.50%, due 4/15/19		1,316	ØØ
	150	HCA, Inc., Senior Secured Notes, 7.25%, due 9/15/20		161
				1,477
Health Services (0.3%)
	600	Ventas Realty L.P., Guaranteed Notes, 6.75%, due 4/1/17		638	ØØ

Hotels (0.8%)
	1,665	FelCor Escrow Holdings LLC, Senior Secured Notes, 6.75%, due 6/1/19		1,663	ñØ

See Notes to Schedule of Investments

PRINCIPAL AMOUNT			VALUE†

(000's omitted)			(000's omitted)

Media - Cable (0.7%)
$	750	DISH DBS Corp., Guaranteed Notes, 7.75%, due 5/31/15	$	817	ØØ
	550	Videotron Ltee, Guaranteed Notes, 9.13%, due 4/15/18		616	ØØ
				1,433
Metals/Mining Excluding Steel (0.3%)
	615	Arch Western Finance LLC, Guaranteed Notes, 6.75%, due 7/1/13		619

Packaging (0.7%)
	1,400	Berry Plastics Corp., Senior Secured Floating Rate Notes, 5.03%, due 2/15/15		1,379	µ

Specialty Retail (0.5%)
	1,025	Toys "R" Us-Delaware, Inc., Senior Secured Notes, 7.38%, due 9/1/16		1,074	ñØØ

Steel Producers/Products (0.8%)
	1,615	Ryerson, Inc., Guaranteed Floating Rate Notes, 7.68%, due 11/1/14		1,627	µØØ

Support - Services (0.6%)
	800	NES Rentals Holdings, Inc., Secured Notes, 12.25%, due 4/15/15		801	ñ
	350	RSC Equipment Rental, Inc., Senior Secured Notes, 10.00%, due 7/15/17		401	ñØØ
				1,202
Telecom - Integrated/Services (0.2%)
	335	PAETEC Holding Corp., Senior Secured Notes, 8.88%, due 6/30/17		366	ØØ

Telecom - Wireless (1.4%)
	1,585	Cricket Communications, Inc., Senior Secured Notes, 7.75%, due 5/15/16		1,692	ØØ
	950	Wind Acquisition Finance SA, Senior Secured Notes, 7.25%, due 2/15/18		1,005	ñØØ
				2,697
	Total Corporate Debt Securities (Cost $33,459)			34,016

NUMBER OF SHARES

Short-Term Investments (8.1%)
	30	State Street Institutional Government Money Market Fund Institutional Class		0
	16,027,053	State Street Institutional Liquid Reserves Fund Institutional Class		16,027	ØØ

	Total Short-Term Investments (Cost $16,027)			16,027

	Total Investments (104.9%)(Cost $205,245)			206,961	##

	Liabilities, less cash, receivables and other assets [(4.9%)]			(9,609	)

	Total Net Assets (100.0%)		$	197,352

See Notes to Schedule of Investments

Schedule of Investments Neuberger Berman High Income Bond Fund

(Unaudited)

PRINCIPAL AMOUNT			VALUE†

(000's omitted)			(000's omitted)

Bank Loan Obligationsµ (2.1%)

Financial Intermediaries (0.4%)
$	4,829	First Data Corp., Term Loan B3, 2.96%, due 9/24/14	$	4,584

Lodging & Casinos (0.7%)
	7,297	Caesars Entertainment Operating Co., Term Loan B4, 9.50%, due 10/31/16		7,730

Radio & Television (0.6%)
	3,205	Clear Channel Communications, Inc., Term Loan A, 3.61%, due 7/29/14		3,018	¢^^
	3,467	Clear Channel Communications, Inc., Term Loan B, 3.86%, due 1/28/16		3,084	¢^^
				6,102
Utilities (0.4%)
	6,139	Texas Competitive Electric Holdings Co. LLC, Term Loan B, due 10/10/14		4,907	¢^^

	Total Bank Loan Obligations (Cost $23,693)			23,323

Corporate Debt Securities (93.6%)

Aerospace/Defense (0.7%)
	2,500	BE Aerospace, Inc., Senior Unsecured Notes, 8.50%, due 7/1/18		2,788
	2,405	Huntington Ingalls Industries, Inc., Guaranteed Notes, 7.13%, due 3/15/21		2,531	ñ
	2,500	L-3 Communications Corp., Guaranteed Notes, Ser. B, 6.38%, due 10/15/15		2,581
				7,900
Airlines (1.5%)
	8,860	Continental Airlines, Inc., Senior Secured Notes, 6.75%, due 9/15/15		8,927	ñ
	3,785	Delta Air Lines, Inc., Senior Secured Notes, 9.50%, due 9/15/14		4,059	ñ
	3,382	United Airlines, Inc., Pass-Through Certificates, Ser. 2009-2, Class A, 9.75%, due 1/15/17		3,847
				16,833
Apparel/Textiles (1.9%)
	6,370	Hanesbrands, Inc., Guaranteed Notes, 6.38%, due 12/15/20		6,306
	3,035	Intelsat Jackson Holdings S.A., Guaranteed Notes, 8.50%, due 11/1/19		3,270
	1,960	Windstream Corp., Guaranteed Notes, 7.88%, due 11/1/17		2,117
	9,450	Windstream Corp., Guaranteed Notes, 7.75%, due 10/1/21		9,994	ñ
				21,687
Auto Loans (2.5%)
	2,955	Ford Motor Credit Co. LLC, Senior Unsecured Notes, 8.00%, due 6/1/14		3,337
	6,955	Ford Motor Credit Co. LLC, Senior Unsecured Notes, 6.63%, due 8/15/17		7,658
	13,615	Ford Motor Credit Co. LLC, Senior Unsecured Notes, 8.13%, due 1/15/20		16,172
	1,500	Ford Motor Credit Co. LLC, Senior Unsecured Notes, 5.75%, due 2/1/21		1,533
				28,700

See Notes to Schedule of Investments

PRINCIPAL AMOUNT			VALUE†

(000's omitted)			(000's omitted)

Automakers (1.3%)
$	1,600	Ford Holdings, Inc., Guaranteed Notes, 9.30%, due 3/1/30	$	1,997
	2,233	Ford Motor Co., Senior Unsecured Notes, 9.98%, due 2/15/47		2,778
	8,910	Navistar Int'l Corp., Guaranteed Notes, 8.25%, due 11/1/21		9,935
				14,710
Banking (2.4%)
	3,875	Ally Financial, Inc., Guaranteed Notes, 6.25%, due 12/1/17		4,040	ñØØ
	6,500	Ally Financial, Inc., Subordinated Notes, 8.00%, due 12/31/18		7,182
	11,140	Ally Financial, Inc., Guaranteed Notes, 8.00%, due 3/15/20		12,518	ØØ
	2,685	Ally Financial, Inc., Guaranteed Notes, 7.50%, due 9/15/20		2,927	ñ
				26,667
Building & Construction (0.9%)
	3,401	Beazer Homes USA, Inc., Guaranteed Notes, 9.13%, due 6/15/18		3,392
	2,850	Beazer Homes USA, Inc., Senior Unsecured Notes, 9.13%, due 5/15/19		2,843	ñ
	2,390	Standard Pacific Corp., Guaranteed Notes, 8.38%, due 5/15/18		2,474	ñ
	1,805	Standard Pacific Corp., Guaranteed Notes, 8.38%, due 1/15/21		1,859	ñ
				10,568
Building Materials (2.5%)
	4,325	Masco Corp., Senior Unsecured Notes, 6.13%, due 10/3/16		4,471
	9,430	Ply Gem Industries, Inc., Senior Secured Notes, 8.25%, due 2/15/18		9,689	ñ
	5,490	USG Corp., Guaranteed Notes, 9.75%, due 8/1/14		5,984	ñ
	1,215	USG Corp., Senior Unsecured Notes, 6.30%, due 11/15/16		1,160
	875	USG Corp., Senior Unsecured Notes, 9.75%, due 1/15/18		921
	5,910	USG Corp., Guaranteed Notes, 8.38%, due 10/15/18		6,206	ñ
				28,431
Chemicals (2.3%)
	3,810	CF Industries, Inc., Guaranteed Notes, 6.88%, due 5/1/18		4,301
	2,400	Hexion US Finance Corp., Senior Secured Notes, 8.88%, due 2/1/18		2,604
	1,385	Huntsman Int'l LLC, Guaranteed Notes, 8.63%, due 3/15/20		1,558
	2,575	Huntsman Int'l LLC, Guaranteed Notes, 8.63%, due 3/15/21		2,890	ñ
	3,050	Lyondell Chemical Co., Senior Secured Notes, 8.00%, due 11/1/17		3,401	ñ
	10,775	Momentive Performance Materials, Inc., Secured Notes, 9.00%, due 1/15/21		11,610	ñ
				26,364
Consumer/Commercial/Lease Financing (4.9%)
	7,558	CIT Group, Inc., Secured Notes, 7.00%, due 5/1/16		7,615
	12,218	CIT Group, Inc., Secured Notes, 7.00%, due 5/1/17		12,317
	2,955	CIT Group, Inc., Secured Notes, 6.63%, due 4/1/18		3,174	ñ
	2,620	Int'l Lease Finance Corp., Senior Unsecured Notes, 8.63%, due 9/15/15		2,882	ñ
	7,845	Int'l Lease Finance Corp., Senior Unsecured Notes, 8.75%, due 3/15/17		8,826	ñ
	4,840	Int'l Lease Finance Corp., Senior Unsecured Notes, 8.88%, due 9/1/17		5,517
	8,585	Int'l Lease Finance Corp., Senior Secured Notes, 7.13%, due 9/1/18		9,229	ñ
	5,970	SLM Corp., Senior Medium-Term Notes, 6.25%, due 1/25/16		6,330
				55,890

See Notes to Schedule of Investments

PRINCIPAL AMOUNT			VALUE†

(000's omitted)			(000's omitted)

Department Stores (1.1%)
$	3,135	JC Penney Co., Inc., Senior Unsecured Notes, 5.65%, due 6/1/20	$	3,127
	5,295	Macy's Retail Holdings, Inc., Guaranteed Notes, 6.38%, due 3/15/37		5,295
	4,090	Sears Holdings Corp., Senior Secured Notes, 6.63%, due 10/15/18		4,003	ñ
				12,425
Diversified Capital Goods (0.3%)
	3,765	Mueller Water Products, Inc., Guaranteed Notes, 7.38%, due 6/1/17		3,737

Electric - Generation (5.7%)
	9,225	Calpine Corp., Senior Secured Notes, 7.25%, due 10/15/17		9,686	ñ
	3,045	Calpine Corp., Senior Secured Notes, 7.50%, due 2/15/21		3,220	ñ
	3,880	Dynegy Holdings, Inc., Senior Unsecured Notes, 7.50%, due 6/1/15		3,414
	5,340	Dynegy Holdings, Inc., Senior Unsecured Notes, 7.75%, due 6/1/19		4,165
	6,175	Dynegy-Roseton Danskammer, Pass-Through Certificates, Ser. B, 7.67%, due 11/8/16		5,743
	3,400	Edison Mission Energy, Senior Unsecured Notes, 7.00%, due 5/15/17		2,695
	7,245	Edison Mission Energy, Senior Unsecured Notes, 7.20%, due 5/15/19		5,669
	8,378	Edison Mission Energy, Senior Unsecured Notes, 7.63%, due 5/15/27		6,221
	13,030	NRG Energy, Inc., Guaranteed Notes, 7.63%, due 1/15/18		13,681	ñ
	2,905	NRG Energy, Inc., Guaranteed Notes, 8.25%, due 9/1/20		3,058
	1,430	RRI Energy, Inc., Senior Unsecured Notes, 7.63%, due 6/15/14		1,498
	5,820	Texas Competitive Electric Holdings Co. LLC, Senior Secured Notes, 11.50%, due 10/1/20		5,980	ñ
				65,030
Electric - Integrated (0.6%)
	3,235	Clearwire Communications LLC, Secured Notes, 12.00%, due 12/1/17		3,502	ñ
	2,575	IPALCO Enterprises, Inc., Senior Secured Notes, 7.25%, due 4/1/16		2,807	ñ
				6,309
Electronics (1.3%)
	3,490	Freescale Semiconductor, Inc., Senior Secured Notes, 9.25%, due 4/15/18		3,874	ñ
	6,005	Freescale Semiconductor, Inc., Guaranteed Notes, 10.75%, due 8/1/20		6,906	ñ
	3,295	NXP BV Funding LLC, Senior Secured Notes, 9.75%, due 8/1/18		3,814	ñ
				14,594
Energy - Exploration & Production (7.8%)
	16,805	ATP Oil & Gas Corp., Secured Notes, 11.88%, due 5/1/15		17,477
	4,445	Chesapeake Energy Corp., Guaranteed Notes, 6.88%, due 8/15/18		4,856
	1,175	Chesapeake Energy Corp., Guaranteed Notes, 6.63%, due 8/15/20		1,266
	8,660	Chesapeake Energy Corp., Guaranteed Notes, 6.13%, due 2/15/21		8,942
	3,985	Cimarex Energy Co., Guaranteed Notes, 7.13%, due 5/1/17		4,214
	11,770	EXCO Resources, Inc., Guaranteed Notes, 7.50%, due 9/15/18		11,932
	3,000	Forest Oil Corp., Guaranteed Notes, 7.25%, due 6/15/19		3,120
	4,250	Linn Energy LLC, Senior Unsecured Notes, 8.63%, due 4/15/20		4,696
	5,150	Linn Energy LLC, Guaranteed Notes, 7.75%, due 2/1/21		5,517	ñ
	2,095	Petrohawk Energy Corp., Guaranteed Notes, 7.25%, due 8/15/18		2,226
	1,970	Petrohawk Energy Corp., Guaranteed Notes, 7.25%, due 8/15/18		2,093	ñ
	1,305	Pioneer Natural Resources Co., Guaranteed Notes, 5.88%, due 7/15/16		1,385
	2,360	Plains Exploration & Production Co., Guaranteed Notes, 7.63%, due 6/1/18		2,531
	1,465	Plains Exploration & Production Co., Guaranteed Notes, 8.63%, due 10/15/19		1,632
	945	Plains Exploration & Production Co., Guaranteed Notes, 6.63%, due 5/1/21		951
	3,970	Quicksilver Resources, Inc., Guaranteed Notes, 11.75%, due 1/1/16		4,645

See Notes to Schedule of Investments

PRINCIPAL AMOUNT			VALUE†

(000's omitted)			(000's omitted)

$	8,050	SandRidge Energy, Inc., Guaranteed Notes, 8.00%, due 6/1/18	$	8,513	ñ
	2,115	SandRidge Energy, Inc., Guaranteed Notes, 7.50%, due 3/15/21		2,226	ñ
				88,222
Food & Drug Retailers (0.5%)
	6,315	Rite Aid Corp., Guaranteed Notes, 9.50%, due 6/15/17		5,841

Food - Wholesale (0.3%)
	2,860	Blue Merger Sub, Inc., Guaranteed Notes, 7.63%, due 2/15/19		2,928	ñ

Forestry/Paper (0.4%)
	1,875	Georgia-Pacific LLC, Senior Unsecured Notes, 7.75%, due 11/15/29		2,077
	2,390	PE Paper Escrow GmbH, Senior Secured Notes, 12.00%, due 8/1/14		2,760	ñ
				4,837
Gaming (5.3%)
	7,360	CityCenter Holdings LLC, Senior Secured Notes, 7.63%, due 1/15/16		7,673	ñ
	7,560	CityCenter Holdings LLC, Secured Notes, 10.75%, due 1/15/17		7,715	ñc
	6,995	FireKeepers Development Authority, Senior Secured Notes, 13.88%, due 5/1/15		8,237	ñ
	5,690	Harrah's Operating Co., Inc., Guaranteed Notes, 5.63%, due 6/1/15		4,780
	3,445	Harrah's Operating Co., Inc., Secured Notes, 12.75%, due 4/15/18		3,514	ñ
	6,265	MGM Mirage, Inc., Guaranteed Notes, 6.63%, due 7/15/15		6,038
	4,215	MGM Mirage, Inc., Guaranteed Notes, 7.50%, due 6/1/16		4,088
	1,805	MGM Mirage, Inc., Senior Secured Notes, 9.00%, due 3/15/20		2,012
	6,491	Pokagon Gaming Authority, Senior Notes, 10.38%, due 6/15/14		6,694	ñ
	2,365	San Pasqual Casino Development Group, Inc., Notes, 8.00%, due 9/15/13		2,362	ñ
	6,780	Seminole Indian Tribe of Florida, Notes, 7.75%, due 10/1/17		7,254	ñ
				60,367
Gas Distribution (4.0%)
	3,000	AmeriGas Partners L.P., Senior Unsecured Notes, 7.13%, due 5/20/16		3,112
	5,390	El Paso Corp., Senior Unsecured Notes, 7.00%, due 6/15/17		5,982
	670	El Paso Corp., Global Medium-Term Notes, 7.75%, due 1/15/32		767
	2,640	El Paso Energy Corp., Global Medium-Term Notes, 7.80%, due 8/1/31		3,017
	9,950	Energy Transfer Equity L.P., Senior Secured Notes, 7.50%, due 10/15/20		10,895
	4,245	Ferrellgas Partners L.P., Senior Unsecured Notes, 9.13%, due 10/1/17		4,754
	2,100	Inergy L.P., Guaranteed Notes, 7.00%, due 10/1/18		2,216	ñ
	3,915	Kinder Morgan Finance Co., Guaranteed Notes, 5.70%, due 1/5/16		4,121
	5,255	MarkWest Energy Partners L.P., Guaranteed Notes, Ser. B, 8.75%, due 4/15/18		5,794
	4,185	Regency Energy Partners L.P., Guaranteed Notes, 6.88%, due 12/1/18		4,467
				45,125
Health Facilities (2.5%)
	1,025	Biomet, Inc., Guaranteed Notes, 10.00%, due 10/15/17		1,133
	1,420	Biomet, Inc., Guaranteed Notes, 10.38%, due 10/15/17		1,578	c
	4,410	Biomet, Inc., Guaranteed Notes, 11.63%, due 10/15/17		5,005
	1,345	Columbia Healthcare Corp., Senior Unsecured Notes, 7.50%, due 12/15/23		1,261
	1,985	Columbia/HCA Corp., Senior Unsecured Notes, 7.69%, due 6/15/25		1,878
	1,370	Columbia/HCA Corp., Senior Unsecured Notes, 7.05%, due 12/1/27		1,212
	9,015	HCA, Inc., Senior Secured Notes, 8.50%, due 4/15/19		10,007
	1,675	OMEGA Healthcare Investors, Inc., Guaranteed Notes, 6.75%, due 10/15/22		1,702	ñ

See Notes to Schedule of Investments

PRINCIPAL AMOUNT			VALUE†

(000's omitted)			(000's omitted)

$	1,875	Tenet Healthcare Corp., Senior Unsecured Notes, 9.25%, due 2/1/15	$	2,053
	1,815	Tenet Healthcare Corp., Senior Secured Notes, 8.88%, due 7/1/19		2,051
				27,880
Investments & Misc. Financial Services (1.4%)
	12,805	Icahn Enterprises L.P., Guaranteed Notes, 7.75%, due 1/15/16		13,189
	2,480	Icahn Enterprises L.P., Guaranteed Notes, 8.00%, due 1/15/18		2,561
				15,750
Leisure (0.4%)
	4,195	Cedar Fair L.P., Guaranteed Notes, 9.13%, due 8/1/18		4,573	ñ

Machinery (1.8%)
	11,025	Case New Holland, Inc., Senior Notes, 7.88%, due 12/1/17		12,321	ñ
	2,615	Terex Corp., Senior Subordinated Notes, 8.00%, due 11/15/17		2,765
	5,220	The Manitowoc Co., Inc., Guaranteed Notes, 8.50%, due 11/1/20		5,716
				20,802
Media - Broadcast (3.6%)
	3,555	Citadel Broadcasting Corp., Guaranteed Notes, 7.75%, due 12/15/18		3,848	ñ
	17,190	Clear Channel Communications, Inc., Guaranteed Notes, 10.75%, due 8/1/16		16,717
	2,875	Cumulus Media, Inc., Senior Notes, 7.75%, due 5/1/19		2,875	ñØ
	3,950	Sirius XM Radio, Inc., Guaranteed Notes, 8.75%, due 4/1/15		4,424	ñ
	3,595	Univision Communications, Inc., Guaranteed Notes, 8.50%, due 5/15/21		3,730	ñ
	355	XM Satellite Radio, Inc., Guaranteed Notes, 13.00%, due 8/1/13		421	ñ
	8,395	XM Satellite Radio, Inc., Guaranteed Notes, 7.63%, due 11/1/18		8,941	ñ
				40,956
Media - Cable (5.5%)
	3,000	Cablevision Systems Corp., Senior Unsecured Notes, 7.75%, due 4/15/18		3,270
	3,840	CCH II LLC, Guaranteed Notes, 13.50%, due 11/30/16		4,632
	6,165	CCO Holdings LLC, Guaranteed Notes, 7.25%, due 10/30/17		6,566
	480	CCO Holdings LLC, Guaranteed Notes, 7.88%, due 4/30/18		520
	1,900	CCO Holdings LLC, Guaranteed Notes, 7.00%, due 1/15/19		1,990
	1,010	CCO Holdings LLC, Senior Notes, 7.00%, due 1/15/19		1,055	ñ
	2,890	CCO Holdings LLC, Guaranteed Notes, 8.13%, due 4/30/20		3,215
	8,400	Cequel Communications Holdings I LLC, Senior Unsecured Notes, 8.63%, due 11/15/17		9,009	ñ
	2,100	CSC Holdings, Inc., Senior Unsecured Notes, 7.88%, due 2/15/18		2,331
	11,940	DISH DBS Corp., Guaranteed Notes, 7.75%, due 5/31/15		13,015
	1,385	Mediacom LLC, Senior Unsecured Notes, 9.13%, due 8/15/19		1,503
	1,355	UPC Holding BV, Senior Secured Notes, 9.88%, due 4/15/18		1,507	ñ
	4,955	Videotron Ltee, Guaranteed Notes, 9.13%, due 4/15/18		5,550
	6,775	Virgin Media Finance PLC, Guaranteed Notes, Ser.1, 9.50%, due 8/15/16		7,766
	550	Virgin Media Finance PLC, Guaranteed Notes, 8.38%, due 10/15/19		621
				62,550
Media - Services (1.2%)
	1,890	Clear Channel Worldwide Holdings, Inc., Guaranteed Notes, Ser. B, 9.25%, due 12/15/17		2,103
	10,475	WMG Acquisition Corp., Senior Secured Notes, 9.50%, due 6/15/16		11,156
				13,259

See Notes to Schedule of Investments

PRINCIPAL AMOUNT			VALUE†

(000's omitted)			(000's omitted)

Metals/Mining Excluding Steel (2.5%)
$	7,200	Arch Coal, Inc., Guaranteed Notes, 8.75%, due 8/1/16	$	8,064
	14,035	FMG Resources (August 2006) Pty Ltd., Guaranteed Notes, 7.00%, due 11/1/15		14,807	ñ
	4,310	Peabody Energy Corp., Guaranteed Notes, 7.38%, due 11/1/16		4,859
				27,730
Packaging (3.3%)
	2,800	Ball Corp., Guaranteed Notes, 7.13%, due 9/1/16		3,052
	880	Ball Corp., Guaranteed Notes, 7.38%, due 9/1/19		954
	11,221	Berry Plastics Corp., Secured Notes, 9.50%, due 5/15/18		11,291
	6,940	Berry Plastics Corp., Secured Notes, 9.75%, due 1/15/21		6,966	ñ
	2,770	Crown Americas LLC, Guaranteed Notes, 7.63%, due 5/15/17		3,026
	3,703	Owens-Brockway Glass Container, Inc., Guaranteed Notes, 7.38%, due 5/15/16		4,083
	3,545	Reynolds Group Issuer, Inc., Guaranteed Notes, 9.00%, due 4/15/19		3,735	ñ
	3,680	Reynolds Group Issuer, Inc., Senior Secured Notes, 6.88%, due 2/15/21		3,795	ñ
				36,902
Pharmaceuticals (1.9%)
	1,110	Mylan, Inc., Guaranteed Notes, 7.63%, due 7/15/17		1,216	ñ
	6,080	Mylan, Inc., Guaranteed Notes, 7.88%, due 7/15/20		6,718	ñ
	7,485	Valeant Pharmaceuticals Int'l, Guaranteed Notes, 6.50%, due 7/15/16		7,471	ñ
	4,155	Valeant Pharmaceuticals Int'l, Guaranteed Notes, 6.75%, due 10/1/17		4,134	ñ
	1,595	Valeant Pharmaceuticals Int'l, Guaranteed Notes, 6.88%, due 12/1/18		1,593	ñ
				21,132
Printing & Publishing (1.7%)
	5,885	Gannett Co., Inc., Guaranteed Notes, 9.38%, due 11/15/17		6,621
	6,865	Gannett Co., Inc., Guaranteed Notes, 7.13%, due 9/1/18		6,882	ñ
	6,045	TL Acquisitions, Inc., Senior Notes, 10.50%, due 1/15/15		6,211	ñ
				19,714
Real Estate Dev. & Mgt. (0.5%)
	4,972	Realogy Corp., Guaranteed Notes, 11.50%, due 4/15/17		5,183	ñ

Software/Services (4.8%)
	3,480	Buccaneer Merger Sub., Inc., Senior Notes, 9.13%, due 1/15/19		3,732	ñ
	4,150	Ceridian Corp., Guaranteed Notes, 11.25%, due 11/15/15		4,316
	11,835	Ceridian Corp., Guaranteed Notes, 12.25%, due 11/15/15		12,426	c
	4,455	Fidelity National Information Services, Inc., Guaranteed Notes, 7.63%, due 7/15/17		4,878
	4,675	Fidelity National Information Services, Inc., Guaranteed Notes, 7.88%, due 7/15/20		5,166
	7,780	First Data Corp., Guaranteed Notes, 11.25%, due 3/31/16		7,858
	5,355	Lender Processing Services, Inc., Guaranteed Notes, 8.13%, due 7/1/16		5,516
	680	SunGard Data Systems, Inc., Guaranteed Notes, 10.63%, due 5/15/15		748
	3,690	SunGard Data Systems, Inc., Guaranteed Notes, 10.25%, due 8/15/15		3,875
	1,675	SunGard Data Systems, Inc., Senior Unsecured Notes, 7.38%, due 11/15/18		1,730	ñ
	3,350	SunGard Data Systems, Inc., Senior Unsecured Notes, 7.63%, due 11/15/20		3,492	ñ
				53,737
Specialty Retail (0.8%)
	8,025	Toys "R" Us Property Co. I LLC, Guaranteed Notes, 10.75%, due 7/15/17		9,098

See Notes to Schedule of Investments

PRINCIPAL AMOUNT				VALUE†

(000's omitted)				(000's omitted)

Steel Producers/Products (0.6%)
$	4,155		Tube City IMS Corp., Guaranteed Notes, 9.75%, due 2/1/15	$	4,326
	2,375		United States Steel Corp., Senior Unsecured Notes, 6.65%, due 6/1/37		2,132
					6,458
Support - Services (2.2%)
	5,400		ARAMARK Holdings Corp., Senior Notes, 8.63%, due 5/1/16		5,548	ñc
	2,230		Hertz Corp., Guaranteed Notes, 6.75%, due 4/15/19		2,275	ñ
	3,505		Knowledge Learning Corp., Inc., Guaranteed Notes, 7.75%, due 2/1/15		3,505	ñ
	1,939		RSC Equipment Rental, Inc., Senior Unsecured Notes, 9.50%, due 12/1/14		2,031
	1,110		RSC Equipment Rental, Inc., Guaranteed Notes, 10.25%, due 11/15/19		1,274
	2,465		RSC Equipment Rental, Inc., Guaranteed Notes, 8.25%, due 2/1/21		2,601
	4,165		United Rentals N.A., Inc., Guaranteed Notes, 8.38%, due 9/15/20		4,436
	1,505		West Corp., Guaranteed Notes, 8.63%, due 10/1/18		1,595	ñ
	1,565		West Corp., Guaranteed Notes, 7.88%, due 1/15/19		1,612	ñ
					24,877
Telecom - Equipment (0.3%)
	2,825		CommScope, Inc., Guaranteed Notes, 8.25%, due 1/15/19		2,973	ñ

Telecom - Integrated/Services (5.3%)
	8,450		Citizens Communications Corp., Senior Unsecured Notes, 9.00%, due 8/15/31		8,703
	6,230		GCI, Inc., Senior Unsecured Notes, 8.63%, due 11/15/19		6,869
	9,620		Integra Telecom Holdings, Inc., Senior Secured Notes, 10.75%, due 4/15/16		10,414	ñ
	15,570		Intelsat Bermuda Ltd., Guaranteed Notes, 11.50%, due 2/4/17		17,049	c
	3,370		PAETEC Holding Corp., Senior Secured Notes, 8.88%, due 6/30/17		3,677
	1,840		PAETEC Holding Corp., Guaranteed Notes, 9.88%, due 12/1/18		1,992	ñ
	3,600		Qwest Communications Int'l, Inc., Guaranteed Notes, 7.13%, due 4/1/18		3,924
	1,585		Windstream Corp., Guaranteed Notes, 8.13%, due 8/1/13		1,740
	4,880		Windstream Corp., Guaranteed Notes, 7.75%, due 10/15/20		5,173
					59,541
Telecom - Wireless (5.1%)
	12,585		Clearwire Communications LLC, Senior Secured Notes, 12.00%, due 12/1/15		13,686	ñ
	11,220		Cricket Communications, Inc., Senior Secured Notes, 7.75%, due 5/15/16		11,978
	4,760		Cricket Communications, Inc., Guaranteed Notes, 7.75%, due 10/15/20		4,861
	3,970		Sprint Capital Corp., Guaranteed Notes, 6.88%, due 11/15/28		3,806
	10,255		Sprint Nextel Corp., Senior Unsecured Notes, 6.00%, due 12/1/16		10,396
	2,430		Wind Acquisition Finance SA, Guaranteed Notes, 11.75%, due 7/15/17		2,825	ñ
	9,775		Wind Acquisition Finance SA, Senior Secured Notes, 7.25%, due 2/15/18		10,337	ñ
					57,889
		Total Corporate Debt Securities (Cost $1,007,728)			1,058,169

NUMBER OF SHARES

Short-Term Investments (3.7%)
	41,734,644		State Street Institutional Liquid Reserves Fund Institutional Class (Cost $41,734)		41,735
		Total Investments (99.4%) (Cost $1,073,155)			1,123,227	##
		Cash, receivables and other assets, less liabilities (0.6%)			7,153
		Total Net Assets (100.0%)		$	1,130,380

See Notes to Schedule of Investments

Schedule of Investments Neuberger Berman Municipal Intermediate Bond Fund

(Unaudited)

PRINCIPAL AMOUNT		SECURITY	VALUE†

(000's omitted)			(000's omitted)

Municipal Debt Securities (99.3%)

Alaska (0.1%)
$	100	Anchorage G.O., Ser. 2008-A, 5.00%, due 8/1/20	$	111

Arizona (3.6%)
	875	Northern Arizona Univ. Cert. of Participation (Research Infrastructure Proj.), Ser. 2005, (AMBAC Insured), 4.00%, due 9/1/14		914
	2,000	Pima Co. Cert. of Participation, Ser. 2009, 4.00%, due 6/1/12		2,059
	1,020	Salt River Proj. Agricultural Imp. & Pwr. Dist. Elec. Sys. Ref. Rev., Ser. 2002-A, 5.25%, due 1/1/18		1,058
				4,031
California (10.2%)
	1,000	California Pub. Works Board Lease Rev. Dept. of Mental Hlth. (Coalinga St. Hosp.), Ser. 2004-A, 5.50%, due 6/1/21		1,034
	2,000	California St. G.O., Ser. 2010, 5.25%, due 3/1/30		2,028
	850	Folsom Spec. Tax Ref. (Comm. Facs. Dist. Number 2), Ser. 2010, 5.00%, due 12/1/19		884
	1,190	Mesa Cons. Wtr. Dist. Cert. of Participation, Ser. 2010, 5.00%, due 3/15/22		1,290
	900	Sacramento City Fin. Au. Ref. Rev. (Master Lease Prog. Facs.), Ser. 2006-E, (AMBAC Insured), 5.25%, due 12/1/24		922
	905	San Diego Pub. Fac. Fin. Au. Lease Ref. Rev. (Ballpark), Ser. 2007-A, (AMBAC Insured), 5.25%, due 2/15/21		941	ñ
	630	San Francisco City & Co. Redev. Agcy. Lease Rev. Cap. Appreciation (George R. Moscone Convention Ctr.), Ser. 1992, 0.00%, due 7/1/12		622
	1,125	Santa Clara Co. East Side Union High Sch. Dist. G.O. (Election 2008), Ser. 2010-B, (Assured Guaranty Insured), 5.00%, due 8/1/23		1,197
	500	Sulphur Springs Union Sch. Dist. Cert. of Participation (Cap. Appreciation), Ser. 2010, (AGM Insured), 0.00%, due 12/1/37		381	a
	1,300	Walnut Pub. Fin. Au. Tax Allocation Rev. (Walnut Imp. Proj.), Ser. 2002, (AMBAC Insured), 5.38%, due 9/1/22		1,312
	2,250	Wiseburn Sch. Dist. G.O. Cap. Appreciation (Election 2010), Ser. 2011-B, (AGM Insured), 0.00%, due 8/1/36		770	Øb
				11,381
Colorado (2.6%)
	800	Colorado Ed. & Cultural Facs. Au. Rev. (Nat'l Jewish Federal Board Prog.), Ser. 2009-C7, (LOC: U.S. Bank), 0.27%, due 3/1/39		800	µß
	1,345	Colorado Wtr. Res. & Pwr. Dev. Au. Clean Wtr. Rev., Ser. 2010-A, 4.00%, due 9/1/25		1,376
	730	Denver City & Co. Cert. of Participation (Wastewater/Rosyn Properties), Ser. 2010-B, 3.00%, due 12/1/16		758
				2,934
District of Columbia (0.9%)
	915	Dist. of Columbia Univ. Ref. Rev. (Georgetown Univ.), Ser. 2009-A, 5.00%, due 4/1/21		980	ß

Florida (3.2%)
	750	Palm Beach Co. Solid Waste Au. Rev., Ser. 2002-B, (AMBAC Insured), 0.00%, due 10/1/15		659
	1,255	Port St. Lucie Research Facs. Rev. (Oregon Hlth. and Science Univ. Vaccine and Gene Therapy Institute Florida Corp. Proj.), Ser. 2010, 5.00%, due 5/1/22		1,315	ß
	1,580	Port St. Lucie Research Facs. Rev. (Oregon Hlth. and Science Univ. Vaccine and Gene Therapy Institute Florida Corp. Proj.), Ser. 2010, 5.00%, due 5/1/23		1,635	ß
				3,609

See Notes to Schedule of Investments

PRINCIPAL AMOUNT		SECURITY	VALUE†

(000's omitted)			(000's omitted)

Georgia (1.0%)
$	1,000	Gwinnett Co. Sch. Dist. G.O. Ref., Ser. 2010, 5.00%, due 2/1/25	$	1,161

Illinois (10.4%)
	2,000	Chicago G.O., Ser. 2010-A, 5.00%, due 12/1/15		2,175
	1,000	Chicago O'Hare Int'l Arpt. Gen. Arpt. Third Lien Ref. Rev., Ser. 2005-B, (National Public Finance Guarantee Corp. Insured), 5.25%, due 1/1/17		1,108
	1,600	Cook Co. Sch. Dist. Number 144 G.O. (Ltd. Sch.), Ser. 2010-A, (AGM Insured), 5.25%, due 12/1/27		1,608
	500	Illinois Fin. Au. Rev. (Univ. of Chicago), Ser. 2007, 5.00%, due 7/1/22		526	ß
	1,650	Illinois St. (Build Illinois), Ser. 2010, 5.00%, due 6/15/17		1,814
	2,000	Illinois St. G.O., Ser. 1997, (National Public Finance Guarantee Corp. Insured), 5.25%, due 7/1/22		2,000
	250	Illinois St. G.O., Ser. 2004-A, 5.00%, due 3/1/22		251
	460	Illinois St. G.O., Ser. 2007, (National Public Finance Guarantee Corp. Insured), 5.00%, due 4/1/20		469
	1,500	Illinois St. G.O. Ref., Ser. 2010, (AGM Insured), 5.00%, due 1/1/15		1,604
				11,555
Indiana (2.6%)
	940	Indiana Muni. Pwr. Agcy. Pwr. Supply Sys. Ref. Rev., Ser. 2010-B, 5.00%, due 1/1/22		1,026
	1,615	Indiana St. Fin. Au. Rev. (St. Revolving Fund Prog.), Ser. 2009-A1, 5.00%, due 2/1/21		1,826
				2,852
Iowa (1.3%)
	1,345	Iowa Fin. Au. Hlth. Care Fac. Rev. (Genesis Hlth. Sys.), Ser. 2010, 5.00%, due 7/1/13		1,442	ß

Kansas (1.8%)
	750	Wichita Hosp. Rev. (Facs. Imp.), Ser. 2009-IIIA, 4.50%, due 11/15/12		782	ß
	1,225	Wichita Hosp. Rev. Ref. (Facs. Imp.), Ser. 2001-III, 6.25%, due 11/15/18		1,263	ß
				2,045
Louisiana (0.5%)
	570	Terrebonne Parish LA Hosp. Svc. Dist. Number 1 Hosp. Ref. Rev. (Gen. Med. Ctr. Proj.), Ser. 2010, 4.00%, due 4/1/15		594

Maryland (0.9%)
	1,000	Maryland St. G.O., Ser. 2011-B, 4.00%, due 3/15/25		1,013

Massachusetts (7.6%)
	2,000	Massachusetts Bay Trans. Au. Rev. (Assessment), Ser. 2006-A, 5.25%, due 7/1/30		2,224
	1,000	Massachusetts Bay Trans. Au. Sr. Sales Tax Rev., Ser. 2005-B, (National Public Finance Guarantee Corp. Insured), 5.50%, due 7/1/24		1,187
	950	Massachusetts Bay Trans. Au. Sr. Sales Tax Rev., Ser. 2006-A, 5.25%, due 7/1/34		1,018
	1,200	Massachusetts St. HFA Hsg. Rev. (Single Family), Ser. 2009-144, 3.95%, due 6/1/18		1,196
	500	Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (Berklee College of Music), Ser. 2007-A, 5.00%, due 10/1/15		557	ß
	1,000	Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (Northeastern Univ.), Ser. 2008-T3, 2.70%, due 10/1/37 Putable 2/20/14		1,010	µßØØ
	900	Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (Tufts Univ.), Ser. 1995-G, (LOC: Bank of America), 0.22%, due 2/15/26		900	µß
	375	Massachusetts St. Turnpike Au. Western Turnpike Rev., Ser. 1997-A, (National Public Finance Guarantee Corp. Insured), 5.55%, due 1/1/17		376
				8,468

See Notes to Schedule of Investments

PRINCIPAL AMOUNT		SECURITY	VALUE†

(000's omitted)			(000's omitted)

Michigan (6.7%)
$	1,400	Forest Hills Pub. Sch. G.O. Ref., Ser. 2005, (AGM Insured), 5.00%, due 5/1/21	$	1,486
	1,000	Michigan St. Hsg. Dev. Au., Ser. 2009-B, 3.10%, due 6/1/11		1,001
	1,500	Michigan St. Hsg. Dev. Au. Rental Hsg. Rev., Ser. 2011-B, 4.00%, due 10/1/16		1,550
	1,000	Michigan St. Trunk Line Ref. Rev., Ser. 2009, 5.00%, due 11/1/19		1,110
	2,160	Saginaw Valley St. Univ. Rev., Ser. 2010-A, 5.00%, due 7/1/13		2,303
				7,450
Minnesota (1.5%)
	1,500	Becker PCR (No. St. Pwr. Co.), Ser. 1992-A, 8.50%, due 3/1/19		1,659	ß

Mississippi (1.3%)
	1,045	Mississippi Dev. Bank Spec. Oblig. (Dept. Corrections), Ser. 2010-D, 5.00%, due 8/1/22		1,126
	290	Mississippi St. G.O. Ref., Ser. 2003-A, 5.25%, due 11/1/20		341
				1,467
Missouri (1.7%)
	1,040	Missouri St. Dev. Fin. Board Infrastructure Facs. Ref. Rev. Wtr. Sys., Ser. 2009-E, 4.00%, due 11/1/15		1,094
	750	Missouri St. Hlth. & Ed. Fac. Au. Rev. (Children's Mercy Hosp.), Ser. 2009, 5.13%, due 5/15/24		759	ß
				1,853
Nebraska (1.2%)
	1,220	Omaha Pub. Fac. Corp. Lease Rev. (Baseball Stadium Proj.), Ser. 2009, 5.00%, due 6/1/22		1,361

Nevada (2.0%)
	1,345	Clark Co. G.O. (Limited Tax Bond Bank), Ser. 2001, (National Public Finance Guarantee Corp. Insured), 5.50%, due 6/1/13		1,350
	750	Las Vegas Redev. Agcy. Tax Increment Rev., Ser. 2009-A, 7.50%, due 6/15/23		832
				2,182
New Jersey (4.0%)
	1,000	New Jersey Econ. Dev. Au. Rev. (Sch. Fac. Construction), Ser. 2010-DD1, 5.00%, due 12/15/18		1,081
	1,000	New Jersey St. Turnpike Au. Turnpike Rev., Ser. 2009-H, 5.00%, due 1/1/20		1,086
	1,000	New Jersey Trans. Trust Fund Au. Trans. Sys. Rev., Ser. 2006-A, 5.25%, due 12/15/19		1,079
	1,255	Newark G.O., Ser. 2010-A, 4.00%, due 10/1/21		1,255
				4,501
New Mexico (1.7%)
	750	Albuquerque Muni. Sch. Dist. Number 012 (Sch. Bldg.) G.O., Ser. 2008-B, 4.50%, due 8/1/19		818
	1,000	New Mexico Fin. Au. St. Trans. Rev. Sr. Lien, Ser. 2004-A, (National Public Finance Guarantee Corp. Insured), 5.25%, due 6/15/21 Pre-Refunded 6/15/14		1,134
				1,952
New York (13.1%)
	400	Long Island Pwr. Au. Elec. Sys. Rev., Ser. 2006-F, (National Public Finance Guarantee Corp. Insured), 5.00%, due 5/1/19		432
	1,500	New York City Transitional Fin. Au. Rev. (Future Tax Secured), Ser. 2011-E, 5.00%, due 11/1/16		1,736
	3,640	New York St. Dorm. Au. Rev., Ser. 2002-B, 5.25%, due 11/15/23 Putable 5/15/12		3,813	µ
	1,450	New York St. Dorm. Au. Rev. Non St. Supported Debt (Mtge. United Hlth. Hosp.), Ser. 2009, (FHA Insured), 4.00%, due 8/1/14		1,504	ß

See Notes to Schedule of Investments

PRINCIPAL AMOUNT		SECURITY	VALUE†

(000's omitted)			(000's omitted)

$	530	New York St. Env. Fac. Corp. Spec. Oblig. Rev. Ref. (Riverbank St. Park), Ser. 1996, (AMBAC Insured), 6.25%, due 4/1/12	$	558
	1,000	New York St. Local Gov't Assist. Corp., Ser. 1993-E, (AGM Insured), 6.00%, due 4/1/14		1,089
	175	New York St. Urban Dev. Corp. Ref. Rev. (Correctional Facs.), Ser. 1994-A, (AGM Insured), 5.50%, due 1/1/14		183
	1,000	New York St. Urban Dev. Corp. Rev. (St. Personal Income Tax), Ser. 2010-A, 5.00%, due 3/15/19		1,162
	750	New York St. Urban Dev. Corp. Rev. (St. Personal Income Tax), Ser. 2009-A1, 5.00%, due 12/15/19		867
	2,000	Port Au. New York & New Jersey Rev. (One Hundred Fifty-Third), Ser. 2008, 4.50%, due 7/15/27		2,038
	1,125	Triborough Bridge & Tunnel Au. Ref. Rev., Ser. 2002-B, 5.25%, due 11/15/16		1,204	ØØ
				14,586
North Carolina (1.0%)
	650	North Carolina St. Cap. Imp. Ltd. Oblig. (Annual Appropriation), Ser. 2009-A, 5.00%, due 5/1/19		754
	295	Western Carolina Univ. Research & Dev. Corp. Cert. of Participation (Western Carolina Univ. Std. Hsg.), Ser. 2008, (Assured Guaranty Insured), 5.25%, due 6/1/20		330	ß
				1,084
Ohio (0.5%)
	530	North Olmsted G.O., Ser. 1996, (AMBAC Insured), 6.20%, due 12/1/11		532

Oregon (1.1%)
	1,180	Oregon St. Hsg. & Comm. Svc. Dept. Mtge. Rev. (Single Family Mtge. Prog.), Ser. 2005-D, 4.40%, due 7/1/19		1,192

Pennsylvania (2.4%)
	1,000	Allegheny Co. Port Au. Spec. Trans. Rev. Ref., Ser. 2011, 3.00%, due 3/1/13		1,030	ØØ
	1,285	Pennsylvania HFA Single Family Mtge. Rev., Ser. 2010-109, 2.45%, due 4/1/16		1,278
	340	Pennsylvania St. Pub. Sch. Bldg. Au. College Rev. (Montgomery Co. Comm. College), Ser. 2008, (AGM Insured), 5.00%, due 5/1/21		376	ß
				2,684
Puerto Rico (1.7%)
	450	Puerto Rico Elec. Pwr. Au. Pwr. Rev., Ser. 2010-XX, 5.25%, due 7/1/35		405
	1,745	Puerto Rico Elec. Pwr. Au. Pwr. Rev., Ser. 2010-XX, 5.25%, due 7/1/40		1,526
				1,931
Rhode Island (1.1%)
	1,200	Rhode Island St. Std. Loan Au. Std. Loan Rev. (Sr. Prog.), Ser. 2010-A, 4.40%, due 12/1/19		1,191

South Carolina (0.2%)
	200	Piedmont Muni. Pwr. Agcy. Elec. Rev. (Cap. Appreciation), Ser. 1988-A, (AMBAC Insured), 0.00%, due 1/1/13		178

Tennessee (1.6%)
	1,600	Metro. Nashville Arpt. Au. Ref. Rev. Impt., Ser. 2010-B, (AGM Insured), 4.00%, due 7/1/15		1,729

Texas (4.4%)
	500	Dallas Fort Worth Int'l Arpt. Ref. Rev., Ser. 2009-A, 5.00%, due 11/1/24		511
	750	Fort Bend Independent Sch. Dist. Ref. G.O. (Sch. Bldg.), Ser. 2008, (PSF Insured), 5.00%, due 8/15/21		845

See Notes to Schedule of Investments

PRINCIPAL AMOUNT		SECURITY	VALUE†

(000's omitted)			(000's omitted)

$	1,000	Grapevine Combination Tax & Tax Increment Reinvestment Zone Rev. Cert. of Oblig. G.O., Ser. 2000, (National Public Finance Guarantee Corp. Insured), 5.63%, due 8/15/15	$	1,003
	1,000	Harris Co. Cultural Ed. Fac. Fin. Corp. Ref. Rev. (Methodist Hosp. Sys.), Ser. 2009-B1, 5.00%, due 12/1/28 Putable 6/1/12		1,042	µß
	225	Harris Co. Cultural Ed. Fac. Fin. Corp. Rev. (Methodist Hosp. Sys.), Ser. 2008-B, 5.25%, due 12/1/17		252	ß
	1,000	Houston Wtr. & Swr. Sys. Jr. Lien Ref. Rev., Ser. 2001-B, (National Public Finance Guarantee Corp. Insured), 5.50%, due 12/1/24		1,217
				4,870
Virginia (1.5%)
	1,690	Virginia St. Hsg. Dev. Au. Homeownership Mtge. Rev., Ser. 2010-B, 2.10%, due 9/1/15		1,675

Washington (1.9%)
	2,000	Energy Northwest Elec. Ref. Rev. (Proj. Number 1), Ser. 2002-B, (National Public Finance Guarantee Corp. Insured), 6.00%, due 7/1/17		2,119

Wisconsin (2.0%)
	1,695	Wisconsin St. Hlth. & Ed. Fac. Au. Ref. Rev. (ProHealth Care, Inc.), Ser. 2011, 5.00%, due 8/15/18		1,793	ß
	400	Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Marquette Univ.), Ser. 1998, (National Public Finance Guarantee Corp. Insured), 5.25%, due 6/1/13		401	ß
				2,194
		Total Investments (99.3%) (Cost $110,317)		110,566	##
		Cash, receivables and other assets, less liabilities (0.7%)		800
		Total Net Assets (100.0%)	$	111,366

See Notes to Schedule of Investments

Schedule of Investments Neuberger Berman Short Duration Bond Fund

(Unaudited)

PRINCIPAL AMOUNT				VALUE†

(000's omitted)				(000's omitted)

U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government (9.3%)
$	700		U.S. Treasury Notes, 1.00%, due 9/30/11	$	703
	670		U.S. Treasury Notes, 3.88%, due 10/31/12		705
	4,600		U.S. Treasury Notes, 2.00%, due 11/30/13		4,735
		Total U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government (Cost $6,115)			6,143

U.S. Government Agency Securities (3.9%)
	1,325		Citigroup Funding, Inc., Guaranteed FDIC Floating Rate Medium-Term Notes, 0.61%, due 3/30/12		1,329	µ@
	1,275		Wells Fargo & Co., Guaranteed FDIC Floating Rate Notes, 0.53%, due 6/15/12		1,279	µ@
		Total U.S. Government Agency Securities (Cost $2,600)			2,608

Mortgage-Backed Securities (45.3%)

Adjustable Alt-B Mixed Balance (0.7%)
	643		Lehman XS Trust, Floating Rate, Ser. 2005-1, Class 2A1, 1.71%, due 7/25/35		497	µ

Adjustable Jumbo Balance (3.7%)
	1,474		GMAC Mortgage Corp. Loan Trust, Ser. 2006-AR1, Class 1A1, 3.01%, due 4/19/36		1,113	µ
	1,500		Wells Fargo Mortgage Backed Securities Trust, Ser. 2005-AR16, Class 4A2, 2.82%, due 10/25/35		1,321	µ
					2,434
Adjustable Mixed Balance (3.7%)
	1,109		Credit Suisse First Boston Mortgage Securities Corp., Ser. 2004-AR4, Class 2A1, 2.73%, due 5/25/34		1,032	µ
	1,548		First Horizon Mortgage Pass-Through Trust, Ser. 2005-AR5, Class 2A1, 2.75%, due 11/25/35		1,275	µ
	174		Harborview Mortgage Loan Trust, Ser. 2004-4, Class 3A, 1.37%, due 6/19/34		138	µ
					2,445
Commercial Mortgage-Backed (23.9%)
	1,621		Bear Stearns Commercial Mortgage Securities, Inc., Ser. 2005-PWR8, Class AAB, 4.58%, due 6/11/41		1,675
	576		Citigroup Commercial Mortgage Trust, Ser. 2006-C4, Class A2, 5.73%, due 3/15/49		597	µ
	1,025		Commercial Mortgage Pass-Through Certificates, Ser. 2003-LB1A, Class C, 4.23%, due 6/10/38		1,050
	1,493		Credit Suisse Mortgage Capital Certificates, Ser. 2007-C2, Class A2, 5.45%, due 1/15/49		1,512
	472		GE Capital Commercial Mortgage Corp., Ser. 2002-2A, Class A2, 4.97%, due 8/11/36		481
	1,018		GMAC Commercial Mortgage Securities, Inc., Ser. 2004-C3, Class AAB, 4.70%, due 12/10/41		1,061
	2,546		JP Morgan Chase Commercial Mortgage Securities Corp., Ser. 2011-C3, Class A1, 1.87%, due 2/16/46		2,552	ñ
	1,500		LB-UBS Commercial Mortgage Trust, Ser. 2003-C1, Class C, 4.50%, due 12/15/36		1,571
	875		LB-UBS Commercial Mortgage Trust, Ser. 2003-C7, Class C, 5.02%, due 7/15/37		913	µ
	775		Morgan Stanley Capital I, Ser. 2011-C1, Class A1, 2.60%, due 9/15/47		791	ñ
	1,615		Wachovia Bank Commercial Mortgage Trust, Ser. 2003-C6, Class D, 5.13%, due 8/15/35		1,682
	1,000		Wachovia Bank Commercial Mortgage Trust, Ser. 2005-C22, Class A3, 5.29%, due 12/15/44		1,026	µ
	912		WF-RBS Commercial Mortgage Trust, Ser. 2011-C2, Class A1, 2.50%, due 2/15/44		926	ñ
					15,837
Mortgage-Backed Non-Agency (3.9%)
	650		Countrywide Home Loans, Ser. 2005-R2, Class 2A4, 8.50%, due 6/25/35		694	ñ
	1,505		GSMPS Mortgage Loan Trust, Ser. 2005-RP2, Class 1A4, 8.50%, due 3/25/35		1,531	ñ
	328		GSMPS Mortgage Loan Trust, Ser. 2005-RP3, Class 1A4, 8.50%, due 9/25/35		339	ñ
					2,564

See Notes to Schedule of Investments

PRINCIPAL AMOUNT				VALUE†

(000's omitted)				(000's omitted)

Fannie Mae (6.7%)
$	1,743		Pass-Through Certificates, 5.50%, due 7/1/38	$	1,878
	1,635		Pass-Through Certificates, 6.00%, due 10/1/38		1,789
	692		Whole Loan, Ser. 2004-W8, Class PT, 10.95%, due 6/25/44		766	µ
					4,433
Freddie Mac (2.7%)
	6		ARM Certificates, 1.75%, due 1/1/17		5	µ
	898		Pass-Through Certificates, 8.00%, due 11/1/26		1,025
	676		Pass-Through Certificates, 8.50%, due 10/1/30		779
					1,809
Government National Mortgage Association (0.0%)
	6		Pass-Through Certificates, 12.00%, due 12/15/12 & 3/15/14		6
		Total Mortgage-Backed Securities (Cost $30,977)			30,025

Corporate Debt Securities (26.3%)

Banks (10.8%)
	1,150		Citigroup, Inc., Senior Unsecured Notes, 6.00%, due 12/13/13		1,258
	1,000		Goldman Sachs Group, Inc., Senior Unsecured Notes, 5.30%, due 2/14/12		1,037
	1,485		JP Morgan Chase & Co., Senior Unsecured Medium-Term Notes, 2.05%, due 1/24/14		1,495
	770		Merrill Lynch & Co., Inc., Senior Unsecured Medium-Term Notes, Ser. C, 6.05%, due 8/15/12		816
	1,175		Morgan Stanley, Senior Unsecured Notes, 2.88%, due 1/24/14		1,193
	1,340		Westpac Banking Corp., Senior Unsecured Notes, 1.85%, due 12/9/13		1,351
					7,150
Beverages (1.0%)
	575		Anheuser-Busch Cos., Inc., Guaranteed Unsecured Notes, 4.95%, due 1/15/14		624

Diversified Financial Services (5.8%)
	945		American Express Credit Corp., Senior Unsecured Medium-Term Notes, Ser. C, 5.88%, due 5/2/13		1,023
	380		Caterpillar Financial Services Corp., Unsecured Medium-Term Notes, Ser. F, 4.70%, due 3/15/12		394
	510		Caterpillar Financial Services Corp., Senior Notes, 1.65%, due 4/1/14		515
	405		ERAC USA Finance Co., Guaranteed Notes, 2.25%, due 1/10/14		407	ñ
	175		General Electric Capital Corp., Senior Unsecured Global Medium-Term Notes, 5.00%, due 4/10/12		183
	1,200		General Electric Capital Corp., Senior Unsecured Notes, 5.90%, due 5/13/14		1,338
					3,860
Food (0.6%)
	352		Kraft Foods, Inc., Senior Unsecured Notes, 6.25%, due 6/1/12		373

Insurance (0.8%)
	545		Berkshire Hathaway Finance Corp., Guaranteed Notes, 1.50%, due 1/10/14		549

Media (2.2%)
	525		NBC Universal, LLC, Senior Unsecured Notes, 2.10%, due 4/1/14		527	ñ
	850		Time Warner Cable, Inc., Guaranteed Notes, 5.40%, due 7/2/12		894
					1,421

See Notes to Schedule of Investments

PRINCIPAL AMOUNT				VALUE†

(000's omitted)				(000's omitted)

Office/Business Equipment (1.0%)
$	650		Xerox Corp., Senior Unsecured Notes, 5.50%, due 5/15/12	$	681

Retail (1.0%)
	625		Home Depot, Inc., Senior Unsecured Notes, 5.25%, due 12/16/13		685

Telecommunications (3.1%)
	560		Telecom Italia Capital SA, Guaranteed Notes, 5.25%, due 11/15/13		596
	645		Telefonica Emisiones SAU, Guaranteed Notes, 2.58%, due 4/26/13		655
	810		Verizon Communications, Inc., Senior Unsecured Notes, 1.95%, due 3/28/14		817
					2,068
		Total Corporate Debt Securities (Cost $17,136)			17,411

Asset-Backed Securities (14.6%)
	400		ACE Securities Corp. Home Equity Loan Trust, Ser. 2006-OP1, Class A2C, 0.36%, due 4/25/36		267	µ
	584		ACE Securities Corp. Home Equity Loan Trust, Ser. 2006-ASP5, Class A2B, 0.34%, due 10/25/36		375	µ
	725		Ally Auto Receivables Trust, Ser. 2010-4, Class A3, 0.91%, due 11/17/14		725
	775		Ally Auto Receivables Trust, Ser. 2011-1, Class A3, 1.38%, due 1/15/15		778
	400		Bear Stearns Asset Backed Securities Trust, Ser. 2006-HE9, Class 1A2, 0.36%, due 11/25/36		203	µ
	487		Carrington Mortgage Loan Trust, Ser. 2006-OPT1, Class A3, 0.39%, due 2/25/36		399	µ
	850		Carrington Mortgage Loan Trust, Ser. 2007-FRE1, Class A3, 0.47%, due 2/25/37		383	µ
	411		Countrywide Asset-Backed Certificates Trust, Ser. 2006-3, Class 2A2, 0.39%, due 6/25/36		356	µ
	252		Countrywide Asset-Backed Certificates Trust, Ser. 2006-5, Class 2A2, 0.39%, due 8/25/36		217	µ
	433		Countrywide Asset-Backed Certificates Trust, Ser. 2006-6, Class 2A2, 0.39%, due 9/25/36		363	µ
	1,900		Ford Credit Auto Owner Trust, Ser. 2011-A, Class A3, 0.97%, due 1/15/15		1,900
	1,100		Honda Auto Receivables Owner Trust, Ser. 2010-3, Class A3, 0.70%, due 4/21/14		1,100
	1,330		Hyundai Auto Receivables Trust, Ser. 2011-A, Class A3, 1.16%, due 4/15/15		1,333
	83		Impac Secured Assets Corp., Ser. 2006-3, Class A4, 0.30%, due 11/25/36		79	µ
	413		Knollwood CDO Ltd., Ser. 2006-2A, Class A2J, 0.70%, due 7/13/46		0	#µ*
	383		Residential Asset Mortgage Products, Inc., Ser. 2006-RS1, Class AI2, 0.44%, due 1/25/36		288	µ
	1,100		Soundview Home Equity Loan Trust, Ser. 2006-OPT3, Class 2A3, 0.38%, due 6/25/36		872	µ
		Total Asset-Backed Securities (Cost $11,375)			9,638

NUMBER OF SHARES

Short-Term Investments (0.5%)
	313,036		State Street Institutional Liquid Reserves Fund Institutional Class (Cost $313)		313
		Total Investments (99.9%) (Cost $68,516)			66,138	##
		Cash, receivables and other assets, less liabilities (0.1%)			73
		Total Net Assets (100.0%)		$	66,211

See Notes to Schedule of Investments

Schedule of Investments Neuberger Berman Strategic Income Fund

(Unaudited)

PRINCIPAL AMOUNT			VALUE†

(000's omitted)			(000's omitted)

Bank Loan Obligationsµ (15.1%)

Aerospace & Defense (0.1%)
$	363	Transdigm, Inc., Term Loan B, 4.00%, due 2/14/17	$	366

AirTransport (0.2%)
	959	Delta Air Lines, Inc., Term Loan B, 5.50%, due 4/20/17		945

All Telecom (0.5%)
	298	Integra Telecom, Inc., Term Loan B, 9.25%, due 4/15/15		298
	680	Intelsat Jackson Holdings S.A., Term Loan B, 5.25%, due 4/2/18		686
	786	PAETEC Holding Corp, Term Loan B, due 4/11/18		789	¢^^
	434	Syniverse Technologies, Inc., Term Loan B, 5.25%, due 1/21/18		438
				2,211
Automotive (0.2%)
	235	Federal-Mogul Corp., Term Loan B, 2.15% – 2.18%, due 12/29/14		229
	119	Federal-Mogul Corp., Term Loan C, 2.15% – 2.18%, due 12/28/15		116
	185	Tomkins LLC, Term Loan B, 4.25%, due 9/29/16		186
	142	UCI International, Inc., Term Loan B, 5.50%, due 7/26/17		143
				674
Building & Development (0.6%)
	273	Armstrong World Industries, Inc., Term Loan B, 4.50%, due 3/9/18		274
	619	Capital Automotive L.P., Term Loan B, 5.00%, due 3/10/17		616
	283	Custom Building Products, Inc., Term Loan B, 5.75%, due 3/19/15		285
	771	Goodman Global Holdings, Inc., First Lien Term Loan, 5.75%, due 10/28/16		776
	30	Goodman Global Holdings, Inc., Second Lien Term Loan, 9.00%, due 10/30/17		31
	305	PGT Industries, Inc., Term Loan A2, 6.75%, due 2/14/12		300
	51	Realogy Corp., Letter of Credit, 4.51%, due 10/10/16		48
	488	Realogy Corp., Term Loan, 4.56%, due 10/10/16		459
				2,789
Business Equipment & Services (1.8%)
	680	Acosta, Inc., Term Loan, 4.75%, due 3/1/18		683
	1,250	Advantage Sales & Marketing, Inc., Second Lien Term Loan, 9.25%, due 6/18/18		1,277
	419	AutoTrader.com, Inc., Term Loan B, 4.75%, due 12/15/16		422
	195	Brand Energy & Infrastructure Services, Inc., Second Lien Term Loan, due 2/6/15		182	¢^^
	668	Brickman Group Holdings, Inc., Term Loan B, 7.25%, due 10/14/16		682
	400	Brock Holdings III, Inc., Term Loan B, 6.00%, due 3/16/17		404
	475	Brock Holdings III, Inc., Second Lien Term Loan, 10.00%, due 3/16/18		488
	730	ClientLogic Corp., Term Loan, 5.79%, due 1/30/14		730
	612	IMS Health, Inc., Term Loan B, 4.50%, due 8/25/17		616
	835	Language Line, LLC, Second Lien Term Loan, 10.50%, due 12/16/16		854
	279	Protection One Alarm Monitoring, Inc., Term Loan B, 6.00%, due 5/16/16		280
	975	Transaction Network Services, Inc., Term Loan C, 6.00%, due 11/18/15		977
				7,595

See Notes to Schedule of Investments

PRINCIPAL AMOUNT			VALUE†

(000's omitted)			(000's omitted)

Cable & Satellite Television (0.4%)
$	401	Charter Communications Operating LLC, Term Loan, 7.25%, due 3/6/14	$	407
	1,194	Yankee Cable Acquisition, LLC, Term Loan B1, 6.50%, due 8/26/16		1,196
				1,603
Chemicals & Plastics (0.7%)
	542	General Chemical Corp., Term Loan B, 5.00% – 5.75%, due 3/3/17		544
	351	Momentive Specialty Chemicals, Inc., Term Loan C1, 4.00%, due 5/5/15		349
	149	Momentive Specialty Chemicals, Inc., Term Loan C2, 4.06%, due 5/5/15		148
	455	PQ Corp., Second Lien Term Loan, 6.72%, due 7/30/15		449
	1,099	Styron S.a.r.L LLC, Term Loan B, 6.00%, due 8/2/17		1,112
	387	Univar, Inc., Term Loan B, 5.00%, due 6/30/17		390
				2,992
Conglomerates (0.1%)
	282	Walter Energy, Inc., Term Loan B, 4.00%, due 4/2/18		284

Containers & Glass Products (0.0%)
	199	Graham Packaging Co. L.P., Term Loan D, 6.00%, due 9/23/16		201

Drugs (0.2%)
	214	Warner Chilcott Co. LLC, Term Loan B2, 4.25%, due 3/15/18		216
	428	Warner Chilcott Corp., Term Loan B1, 4.25%, due 3/15/18		431
	295	WC Luxco S.a.r.L, Term Loan B3, 4.25%, due 3/15/18		296
				943
Electric - Generation (0.3%)
	1,533	Texas Competitive Electric Holdings Co. LLC, Term Loan B3, 3.73% – 3.75%, due 10/10/14		1,225	¢^^

Electronics/Electrical (0.9%)
	496	Aspect Software, Inc., Term Loan B, 6.25%, due 4/19/16		500
	284	CommScope, Inc., Term Loan B, 5.00%, due 1/14/18		286
	203	Datatel, Inc., First Lien Term Loan, 5.00%, due 2/20/17		203
	382	Datatel, Inc., Second Lien Term Loan, 8.75%, due 2/19/18		386
	663	Edwards (Cayman Islands II) Ltd., Term Loan B, 5.50%, due 5/31/16		663
	651	Freescale Semiconductor, Inc., Term Loan B, 4.49%, due 12/1/16		651
	375	NDS Finance Ltd., Term Loan B, 4.00%, due 3/12/18		375
	290	SkillSoft Corp., Term Loan B, 6.50%, due 5/26/17		296
	481	Springboard Finance, LLC, Term Loan A, 7.00%, due 2/23/15		484
				3,844
Equipment Leasing (0.1%)
	650	NES Rentals Holdings, Inc., Second Lien Term Loan, 10.00%, due 7/20/13		645

Farming/Agriculture (0.1%)
	285	WM Bolthouse Farms, Inc., First Lien Term Loan, 5.50%— 5.75%, due 2/11/16		286

Financial Intermediaries (1.0%)
	750	CIT Group, Inc., Term Loan 3, 6.25%, due 8/11/15		761

See Notes to Schedule of Investments

PRINCIPAL AMOUNT			VALUE†

(000's omitted)			(000's omitted)

$	399	Fifth Third Processing Solutions LLC, Term Loan B, 5.50%, due 11/3/16	$	402
	100	Fifth Third Processing Solutions LLC, Second Lien Term Loan, 8.25%, due 11/1/17		102
	589	Fortress Investment Group LLC, Term Loan B, 5.75%, due 9/30/15		595
	844	Harbourvest Partners LLC, Term Loan B, 6.25%, due 12/14/16		848
	482	LPL Holdings, Inc., Term Loan, 5.25%, due 6/28/17		486
	680	Nuveen Investments, Inc., Term Loan, 5.77% – 5.81%, due 5/12/17		681
	117	Ocwen Financial Corp., Term Loan, 9.00%, due 7/29/15		117
	500	Springleaf Finance Corp., Term Loan B, 7.25%, due 4/21/15		500
				4,492
Food Products (0.4%)
	404	Del Monte Foods Co., Term Loan B, 4.50%, due 3/8/18		405
	280	Michael Foods Group, Inc., Term Loan, 4.25%, due 2/23/18		282
	412	NBTY, Inc., Term Loan B, 4.25%, due 10/2/17		414
	791	Pinnacle Foods Holdings Corp., Term Loan D, 6.00%, due 4/2/14		801
				1,902
Food/Drug Retailers (0.1%)
	654	Rite Aid Corp., Term Loan 5, 4.50%, due 2/28/18		650

Gaming (0.4%)
	1,380	Caesars Entertainment Operating Co., Term Loan B2, 3.21% – 3.27%, due 1/28/15		1,292
	298	Caesars Entertainment Operating Co., Term Loan, 9.50%, due 10/31/16		315
				1,607
Health Care (1.4%)
	313	Aurora Diagnostics LLC, Term Loan B, 6.25%, due 5/21/16		313
	783	CareStream Health, Inc., Term Loan B, 5.00%, due 2/25/17		733
	256	IASIS Healthcare LLC, Term Loan, 5.46%, due 6/13/14		257	¢^^
	540	IASIS Healthcare LLC, Term Loan B, due 5/17/18		542	¢^^
	1,211	Kindred Healthcare, Inc., Term Loan, due 4/9/18		1,210	¢^^
	591	Multiplan, Inc., Term Loan B, 4.75%, due 8/26/17		594
	590	RehabCare Group, Inc., Term Loan B, 6.00%, due 11/24/15		590
	424	Rural/Metro Operating Co. LLC, Term Loan B, 6.00%, due 11/24/16		428
	423	Sheridan Healthcare, Inc., Term Loan, 4.06%, due 6/13/14		420
	602	Universal Health Services, Inc., Term Loan B, 4.00%, due 11/15/16		606
	440	Verint Systems, Inc., Term Loan B, due 10/26/17		441	¢^^
				6,134
Home Furnishings (0.1%)
	320	National Bedding Co., LLC, Second Lien Term Loan, 5.31%, due 2/28/14		314

Insurance (0.1%)
	301	Sedgwick CMS Holdings, Inc., Term Loan, 5.00%, due 12/30/16		303

Leisure Goods/Activities/Movies (0.4%)
	519	Cedar Fair L.P., Term Loan B, 4.00%, due 12/15/17		523
	195	LodgeNet Entertainment Corp., Term Loan, due 4/4/14		187	¢^^
	484	Six Flags Theme Parks, Inc., Term Loan B, 5.25%, due 6/30/16		488
	674	Summit Entertainment LLC, Term Loan, 7.50%, due 9/7/16		664
				1,862

See Notes to Schedule of Investments

PRINCIPAL AMOUNT			VALUE†

(000's omitted)			(000's omitted)

Lodging & Casinos (0.1%)
$	640	Ameristar Casinos, Inc., Term Loan B, due 4/13/18	$	645	¢^^

Media - Broadcast (0.3%)
	1,159	Univision Communications, Inc., Term Loan, 4.46%, due 3/31/17		1,133

Media - Services (0.3%)
	872	Clear Channel Communications, Inc., Term Loan A, 3.61%, due 7/29/14		821
	487	Clear Channel Communications, Inc., Term Loan B, 3.86%, due 1/28/16		433
				1,254
Nonferrous Metals/Minerals (0.3%)
	935	Fairmount Minerals Ltd., Term Loan B, 5.26%, due 3/1/17		942
	394	Novelis, Inc., Term Loan B, 4.00%, due 11/29/16		398
				1,340
Publishing (1.3%)
	1,062	Cengage Learning Acquisitions, Inc., Term Loan 1, 7.50%, due 7/3/14		1,068	¢^^
	263	Dex Media East LLC, Term Loan, 2.78% – 2.82%, due 10/24/14		209
	411	Dex Media West LLC, Term Loan, 7.00%, due 10/24/14		369
	473	Getty Images, Inc., Term Loan, 5.25%, due 11/7/16		477
	102	Instant Web, Inc., Term Loan DD, 3.59%, due 8/5/14		87
	977	Instant Web, Inc., Term Loan B, 3.59%, due 8/7/14		839
	641	Interactive Data Corp., Term Loan B, 4.75%, due 2/12/18		644
	888	Postmedia Network, Inc., Term Loan C, 7.25%, due 7/13/16		895
	949	Quad/Graphics, Inc., Term Loan B, 5.50%, due 4/14/16		950
				5,538
Radio & Television (0.3%)
	1,317	Fox Acquisition Sub, LLC, Term Loan B, 4.75% – 6.00%, due 7/14/15		1,322

Retailers (except food & drug) (1.2%)
	940	AMSCAN Holdings, Inc., Term Loan B, 6.75%, due 12/4/17		949
	408	Bass Pro Group LLC, Term Loan, 5.00% – 5.75%, due 4/9/15		411
	652	Gymboree Corp., Term Loan, 5.00%, due 2/23/18		653
	813	Harbor Freight Tools USA, Inc., First Lien Term Loan, 6.50%, due 12/22/17		812
	555	Michaels Stores, Inc., Term Loan B2, 4.81% – 4.88%, due 7/31/16		559
	612	PETCO Animal Supplies, Inc., Term Loan, 4.50%, due 11/24/17		616
	517	Pilot Travel Centers LLC, Term Loan B, 4.25%, due 3/30/18		521
	423	Toys "R' Us-Delaware, Inc., Term Loan, 6.00%, due 9/1/16		426
				4,947
Software/Services (0.3%)
	1,140	First Data Corp., Term Loan B3, 2.96%, due 9/24/14		1,083

Steel (0.1%)
	329	JMC Steel Group, Inc., Term Loan, 4.75%, due 4/3/17		333

See Notes to Schedule of Investments

PRINCIPAL AMOUNT				VALUE†

(000's omitted)				(000's omitted)

Utilities (0.8%)
$	617		Bicent Power LLC, First Lien Term Loan B, 2.31%, due 6/30/14	$	521
	935		Calpine Corp., Term Loan, 4.50%, due 4/2/18		943
	189		EquiPower Resources Corp., Term Loan B, 5.75%, due 1/26/18		190
	338		GenOn Energy, Inc., Term Loan B, 6.00%, due 9/8/17		342
	13		Longview Power LLC, Letter of Credit, 2.56%, due 2/28/14		12
	333		Longview Power LLC, Term Loan B, 2.56%, due 2/28/14		325
	389		Longview Power LLC, Term Loan DD, 2.56%, due 2/28/14		380
	625		TPF Generation Holdings LLC, Second Lien Term Loan C, 4.56%, due 12/15/14		609
					3,322
		Total Bank Loan Obligations (Cost $64,041)			64,784

U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government (3.1%)
	720		U.S. Treasury Bonds, 6.88%, due 8/15/25		960
	800		U.S. Treasury Bonds, 4.50%, due 2/15/36		820
	2,342		U.S. Treasury Inflation Index Notes, 1.13%, due 1/15/21		2,428
	5,869		U.S. Treasury Inflation Index Notes, 2.38%, due 1/15/25		6,725
	2,070		U.S. Treasury Notes, 2.38%, due 10/31/14		2,148
	25		U.S. Treasury Notes, 3.25%, due 7/31/16		26
		Total U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government (Cost $12,550)			13,107


Mortgage-Backed Securities (34.7%)

Collateralized Mortgage Obligations (1.1%)
	2,248		Banc of America Funding Corp., Ser. 2006-G, Class 2A1, 0.43%, due 7/20/36		1,892	µ
	635		Credit Suisse First Boston Mortgage Securities Corp., Ser. 2004-AR4, Class 2A1, 2.73%, due 5/25/34		591	µ
	1,446		JP Morgan Alternative Loan Trust, Ser. 2006-A5, Class 1A1, 0.37%, due 10/25/36		807	µ
	1,383		MortgageIT Trust, Ser. 2005-3, Class A1, 0.51%, due 8/25/35		1,084	µ
	253		WaMu Mortgage Pass-Through Certificates, Ser. 2006-AR10, Class 1A1, 5.57%, due 9/25/36		197	µ
					4,571
Commercial Mortgage-Backed (11.5%)
	1,089		Banc of America Commercial Mortgage, Inc., Ser. 2006-3, Class A4, 5.89%, due 7/10/44		1,204	ØØ
	600		Banc of America Commercial Mortgage, Inc., Ser. 2006-6, Class A4, 5.36%, due 10/10/45		643	ØØ
	700		Banc of America Commercial Mortgage, Inc., Ser. 2006-5, Class A4, 5.41%, due 9/10/47		760	ØØ
	435		Banc of America Commercial Mortgage, Inc., Ser. 2007-1, Class A4, 5.45%, due 1/15/49		469	ØØ
	1,750		Banc of America Commercial Mortgage, Inc., Ser. 2007-3, Class A4, 5.62%, due 6/10/49		1,883	µØØ
	2,500		Bear Stearns Commercial Mortgage Securities, Ser. 2007-PW15, Class A4, 5.33%, due 2/11/44		2,671	ØØ
	550		Bear Stearns Commercial Mortgage Securities, Ser. 2007-PW17, Class A4, 5.69%, due 6/11/50		606	ØØ
	1,160		Citigroup/Deutsche Bank Commercial Mortgage Trust, Ser. 2007-CD5, Class A4, 5.89%, due 11/15/44		1,285	ØØ
	2,000		Citigroup/Deutsche Bank Commercial Mortgage Trust, Ser. 2007-CD4, Class A4, 5.32%, due 12/11/49		2,147	ØØ
	2,000		Commercial Mortgage Loan Trust, Ser. 2008-LS1, Class A4B, 6.20%, due 12/10/49		2,212	µØØ
	500		Commercial Mortgage Pass-Through Certificates, Ser. 2006-C8, Class A4, 5.31%, due 12/10/46		541
	2,000		Credit Suisse Mortgage Capital Certificates, Ser. 2007-C3, Class A4, 5.72%, due 6/15/39		2,159	µØØ
	1,060		Credit Suisse Mortgage Capital Certificates, Ser. 2006-C4, Class A3, 5.47%, due 9/15/39		1,149
	300		Credit Suisse Mortgage Capital Certificates, Ser. 2007-C4, Class A4, 5.80%, due 9/15/39		325	µØØ
	400		Credit Suisse Mortgage Capital Certificates, Ser. 2006-C5, Class A3, 5.31%, due 12/15/39		428	ØØ
	715		Credit Suisse Mortgage Capital Certificates, Ser. 2007-C5, Class A4, 5.70%, due 9/15/40		760
	1,925		CWCapital Cobalt Ltd., Ser. 2007-C3, Class A4, 5.821%, due 5/15/46		2,087	µØØ
	674		CWCapital Cobalt Ltd., Ser. 2007-C2, Class A2, 5.33%, due 4/15/47		690
	500		CWCapital Cobalt Ltd., Ser. 2007-C2, Class A3, 5.48%, due 4/15/47		526
	1,220		DBUBS Mortgage Trust, Ser. 2011-LC1A, Class A1, 3.74%, due 11/10/46		1,254	ñØØ
	335		Greenwich Capital Commercial Funding Corp., Ser. 2007-GG9, Class A4, 5.44%, due 3/10/39		364
	1,000		GS Mortgage Securities Corp. II, Ser. 2006-GG6, Class A4, 5.55%, due 4/10/38		1,090
	500		GS Mortgage Securities Corp. II, Ser. 2005-GG4, Class A3, 4.61%, due 7/10/39		510	ØØ
	700		GS Mortgage Securities Corp. II, Ser. 2005-GG4, Class A4, 4.76%, due 7/10/39		741	ØØ

See Notes to Schedule of Investments

PRINCIPAL AMOUNT				VALUE†

(000's omitted)				(000's omitted)

$	730		GS Mortgage Securities Corp. II, Ser. 2011-GC3, Class A4, 4.75%, due 3/10/44	$	756	ñ
	2,000		GS Mortgage Securities Corp. II, Ser. 2007-GG10, Class A4, 5.81%, due 8/10/45		2,173	µ
	1,130		JP Morgan Chase Commercial Mortgage Securities Corp., Ser. 2006-LDP7, Class A4, 5.87%, due 4/15/45		1,256	µ
	1,450		JP Morgan Chase Commercial Mortgage Securities Corp., Ser. 2006-LDP9, Class A3, 5.34%, due 5/15/47		1,558
	1,725		JP Morgan Chase Commercial Mortgage Securities Corp., Ser. 2007-CB18, Class A4, 5.44%, due 6/12/47		1,870	ØØ
	600		JP Morgan Chase Commercial Mortgage Securities Corp., Ser. 2007-LDPX, Class A3, 5.42%, due 1/15/49		650
	2,810		JP Morgan Chase Commercial Mortgage Securities Corp., Ser. 2007-LD11, Class A4, 5.82%, due 6/15/49		3,066	µØØ
	1,610		JP Morgan Chase Commercial Mortgage Securities Corp., Ser. 2007-CB20, Class A4, 5.79%, due 2/12/51		1,776	ØØ
	544		JP Morgan Chase Commercial Mortgage Securities Corp., Ser. 2007-CB20, Class A3, 5.82%, due 2/12/51		583
	2,200		JP Morgan Chase Commercial Mortgage Securities Corp., Ser. 2007-LD12, Class A4, 5.88%, due 2/15/51		2,406	ØØ
	2,488		Merrill Lynch/Countrywide Commercial Mortgage Trust, Ser. 2007-5, Class A4, 5.38%, due 8/12/48		2,654	ØØ
	2,300		Merrill Lynch/Countrywide Commercial Mortgage Trust, Ser. 2007-7, Class A4, 5.74%, due 6/12/50		2,497	µØØ
	900		Morgan Stanley Capital I, Ser. 2007-IQ16, Class A4, 5.81%, due 12/12/49		994	ØØ
	400		Wachovia Bank Commercial Mortgage Trust, Ser. 2005-C19, Class A5, 4.66%, due 5/15/44		413
	250		Wachovia Bank Commercial Mortgage Trust, Ser. 2007-C31, Class A4, 5.51%, due 4/15/47		265
					49,421
Fannie Mae (8.7%)
	720		Pass-Through Certificates, 4.00%, due 10/1/39 – 10/1/40		718
	210		Pass-Through Certificates, 5.00%, due 8/1/33 – 5/1/37		223
	5,082		Pass-Through Certificates, 5.50%, due 7/1/33 – 1/1/39		5,477	ØØ
	4,116		Pass-Through Certificates, 6.00%, due 9/1/33 – 9/1/40		4,509
	3		Pass-Through Certificates, 6.50%, due 9/1/32		3
	9		Pass-Through Certificates, 7.00%, due 7/1/29		10
	2		Pass-Through Certificates, 7.50%, due 12/1/32		2
	5,130		Pass-Through Certificates, 4.50%, TBA, 30 Year Maturity		5,278	Ø
	19,715		Pass-Through Certificates, 5.00%, TBA, 30 Year Maturity		20,809	Ø
	110		Pass-Through Certificates, 6.00%, TBA, 30 Year Maturity		120	Ø
					37,149
Freddie Mac (13.4%)
	30,770		Pass-Through Certificates, 4.00%, due 9/1/39 – 1/1/41		30,613
	7		Pass-Through Certificates, 4.50%, due 8/1/18		8
	1,556		Pass-Through Certificates, 5.00%, due 5/1/18 – 8/1/39		1,643
	1,323		Pass-Through Certificates, 5.50%, due 9/1/17 – 5/1/40		1,426	ØØ
	119		Pass-Through Certificates, 6.00%, due 4/1/17 – 9/1/38		130
	2		Pass-Through Certificates, 6.50%, due 3/1/16		2
	2		Pass-Through Certificates, 7.00%, due 6/1/32		2
	12,085		Pass-Through Certificates, 4.00%, TBA, 30 Year Maturity		12,008	Ø
	10,000		Pass-Through Certificates, 4.50%, TBA, 30 Year Maturity		10,273	Ø
	1,065		Pass-Through Certificates, 5.50%, TBA, 30 Year Maturity		1,144	Ø
					57,249
Government National Mortgage Association (0.0%)
	3		Pass-Through Certificates, 6.50%, due 7/15/32		4
	3		Pass-Through Certificates, 7.00%, due 8/15/32		3
					7
		Total Mortgage-Backed Securities (Cost $139,254)			148,397

See Notes to Schedule of Investments

PRINCIPAL AMOUNT			VALUE†

(000's omitted)			(000's omitted)

Corporate Debt Securities (43.6%)

Aerospace/Defense (0.1%)
$	225	BE Aerospace, Inc., Senior Unsecured Notes, 8.50%, due 7/1/18	$	251
	105	Huntington Ingalls Industries, Inc., Guaranteed Notes, 6.88%, due 3/15/18		110	ñ
	105	Huntington Ingalls Industries, Inc., Guaranteed Notes, 7.13%, due 3/15/21		111	ñ
				472
Airlines (1.8%)
	1,425	Continental Airlines, Inc., Senior Secured Notes, 6.75%, due 9/15/15		1,436	ñ
	457	Continental Airlines, Inc., Pass-Through Certificates, Ser. 2009-2, Class A, 7.25%, due 11/10/19		489
	2,635	Continental Airlines, Inc., Pass-Through Certificates, Ser. 2010-1, Class A, 4.75%, due 1/12/21		2,569	ØØ
	606	Continental Airlines, Inc., Pass-Through Certificates, Ser. 2007-1, Class A, 5.98%, due 4/19/22		621	ØØ
	455	Delta Air Lines, Inc., Senior Secured Notes, 9.50%, due 9/15/14		488	ñ
	514	Delta Air Lines, Inc., Pass-Through Certificates, Ser. 2010-1, Class A, 6.20%, due 7/2/18		530	ØØ
	1,128	Delta Air Lines, Inc., Pass-Through Certificates, Ser. 2009-1, Class A, 7.75%, due 12/17/19		1,229	ØØ
	275	Delta Air Lines, Inc., Pass-Through Certificates, Ser. 2007-1, Class A, 6.82%, due 8/10/22		286	ØØ
				7,648
Apparel/Textiles (0.1%)
	430	Hanesbrands, Inc., Guaranteed Notes, 6.38%, due 12/15/20		426

Auto Loans (0.3%)
	325	Ford Motor Credit Co. LLC, Senior Unsecured Notes, 6.63%, due 8/15/17		358
	757	Ford Motor Credit Co. LLC, Senior Unsecured Notes, 8.13%, due 1/15/20		899
				1,257
Automakers (0.4%)
	240	Ford Holdings, Inc., Guaranteed Notes, 9.30%, due 3/1/30		300
	435	Ford Motor Co., Senior Unsecured Notes, 7.45%, due 7/16/31		496
	145	Ford Motor Co., Senior Unsecured Notes, 9.98%, due 2/15/47		180
	595	Navistar Int'l Corp., Guaranteed Notes, 8.25%, due 11/1/21		664
				1,640
Banking (6.6%)
	945	Ally Financial, Inc., Guaranteed Notes, 6.25%, due 12/1/17		985	ñØØ
	665	Ally Financial, Inc., Guaranteed Notes, 8.00%, due 3/15/20		747
	2,060	Bank of America Corp., Senior Unsecured Medium-Term Notes, 4.50%, due 4/1/15		2,167	ØØ
	1,970	Bank of America Corp., Senior Unsecured Notes, 3.63%, due 3/17/16		1,980
	2,940	Bank of America Corp., Senior Unsecured Notes, 5.63%, due 7/1/20		3,086	ØØ
	1,400	Citigroup, Inc., Senior Unsecured Notes, 5.50%, due 4/11/13		1,499
	1,650	Citigroup, Inc., Senior Unsecured Notes, 6.13%, due 11/21/17		1,830	ØØ
	620	Citigroup, Inc., Senior Unsecured Notes, 8.13%, due 7/15/39		798
	1,955	Goldman Sachs Group, Inc., Subordinated Notes, 6.75%, due 10/1/37		2,026	ØØ
	520	Goldman Sachs Group, Inc., Senior Notes, 6.25%, due 2/1/41		534
	885	JP Morgan Chase Capital XVII, Limited Guaranteed Notes, Ser. Q, 5.85%, due 8/1/35		872
	2,185	Morgan Stanley, Senior Unsecured Notes, 3.45%, due 11/2/15		2,185	ØØ
	1,085	Morgan Stanley, Senior Unsecured Notes, 3.80%, due 4/29/16		1,089
	2,065	Morgan Stanley, Senior Unsecured Global Medium-Term Notes, Ser. F, 6.63%, due 4/1/18		2,305	ØØ
	3,260	Morgan Stanley, Senior Unsecured Global Medium-Term Notes, Ser. F, 5.63%, due 9/23/19		3,388	ØØ
	2,920	Wells Fargo & Co., Senior Unsecured Medium-Term Notes, 4.60%, due 4/1/21		2,951
				28,442

See Notes to Schedule of Investments

PRINCIPAL AMOUNT			VALUE†

(000's omitted)			(000's omitted)
Building & Construction (0.1%)
$	350	Standard Pacific Corp., Guaranteed Notes, 8.38%, due 5/15/18	$	362	ñ

Building Materials (0.4%)
	450	Masco Corp., Senior Unsecured Notes, 6.13%, due 10/3/16		465
	250	Owens Corning, Inc., Guaranteed Notes, 9.00%, due 6/15/19		298
	245	Ply Gem Industries, Inc., Senior Secured Notes, 8.25%, due 2/15/18		252	ñ
	365	USG Corp., Guaranteed Notes, 9.75%, due 8/1/14		398	ñ
	425	USG Corp., Guaranteed Notes, 8.38%, due 10/15/18		446	ñ
				1,859
Chemicals (0.9%)
	215	CF Industries, Inc., Guaranteed Notes, 6.88%, due 5/1/18		243
	485	Huntsman Int'l LLC, Guaranteed Notes, 8.63%, due 3/15/20		546
	130	Huntsman Int'l LLC, Guaranteed Notes, 8.63%, due 3/15/21		146	ñ
	350	Lyondell Chemical Co., Senior Secured Notes, 8.00%, due 11/1/17		390	ñ
	280	Nalco Co., Senior Notes, 8.25%, due 5/15/17		305
	325	The Dow Chemical Co., Senior Unsecured Notes, 5.90%, due 2/15/15		365
	2,015	The Dow Chemical Co., Senior Unsecured Notes, 4.25%, due 11/15/20		1,973	ØØ
				3,968
Commercial Services (0.3%)
	1,100	ERAC USA Finance Co., Guaranteed Notes, 7.00%, due 10/15/37		1,223	ñØØ

Consumer/Commercial/Lease Financing (1.4%)
	171	AWAS Aviation Capital Ltd., Senior Secured Notes, 7.00%, due 10/15/16		175	ñ
	455	CIT Group, Inc., Secured Notes, Ser. C, 5.25%, due 4/1/14		466	ñ
	1,195	CIT Group, Inc., Secured Notes, 7.00%, due 5/1/16		1,204
	849	CIT Group, Inc., Secured Notes, 7.00%, due 5/1/17		856	ØØ
	910	Int'l Lease Finance Corp., Senior Unsecured Medium-Term Notes, Ser. R, 5.65%, due 6/1/14		927
	95	Int'l Lease Finance Corp., Senior Secured Notes, 6.50%, due 9/1/14		101	ñ
	285	Int'l Lease Finance Corp., Senior Unsecured Notes, 8.75%, due 3/15/17		321	ñ
	350	Int'l Lease Finance Corp., Senior Unsecured Notes, 8.88%, due 9/1/17		399
	985	Int'l Lease Finance Corp., Senior Secured Notes, 7.13%, due 9/1/18		1,059	ñ
	340	SLM Corp., Senior Medium-Term Notes, 6.25%, due 1/25/16		360
	150	SLM Corp., Senior Unsecured Medium-Term Notes, Ser. A, 8.45%, due 6/15/18		170
				6,038
Department Stores (0.3%)
	210	JC Penney Co., Inc., Senior Unsecured Notes, 5.65%, due 6/1/20		210
	490	Macy's Retail Holdings, Inc., Guaranteed Notes, 6.38%, due 3/15/37		490
	755	Sears Holdings Corp., Senior Secured Notes, 6.63%, due 10/15/18		739	ñ
				1,439
Diversified Financial Services (1.3%)
	2,335	American Express Credit Corp., Senior Unsecured Medium-Term Notes, Ser. C, 5.88%, due 5/2/13		2,528	ØØ
	730	American Express Credit Corp., Senior Unsecured Medium-Term Notes, Ser. D, 5.13%, due 8/25/14		797	ØØ
	825	Banque PSA Finance, Senior Unsecured Notes, 4.38%, due 4/4/16		832	ñ
	450	General Electric Capital Corp., Senior Unsecured Notes, 5.90%, due 5/13/14		502	ØØ
	685	General Electric Capital Corp., Subordinated Notes, 5.30%, due 2/11/21		711
				5,370

See Notes to Schedule of Investments

PRINCIPAL AMOUNT			VALUE†

(000's omitted)			(000's omitted)

Electric - Generation (1.2%)
$	980	Calpine Corp., Senior Secured Notes, 7.25%, due 10/15/17	$	1,029	ñØØ
	405	Dynegy-Roseton Danskammer, Pass-Through Certificates, Ser. B, 7.67%, due 11/8/16		377
	725	Edison Mission Energy, Senior Unsecured Notes, 7.20%, due 5/15/19		567
	640	Edison Mission Energy, Senior Unsecured Notes, 7.63%, due 5/15/27		475
	680	Energy Future Intermediate Holding Co. LLC, Senior Secured Notes, 10.00%, due 12/1/20		731
	512	Homer City Funding LLC, Senior Secured Notes, 8.14%, due 10/1/19		463
	151	Mirant Mid-Atlantic Trust, Pass-Through Certificates, Ser. A, 8.63%, due 6/30/12		157
	430	NRG Energy, Inc., Guaranteed Notes, 7.38%, due 2/1/16		446
	660	NRG Energy, Inc., Guaranteed Notes, 7.63%, due 1/15/18		693	ñ
	250	RRI Energy, Inc., Senior Unsecured Notes, 7.63%, due 6/15/14		262
				5,200
Electric - Integrated (0.3%)
	445	CMS Energy Corp., Senior Unsecured Notes, 4.25%, due 9/30/15		455
	835	Exelon Generation Co. LLC, Senior Unsecured Notes, 6.25%, due 10/1/39		848
	180	IPALCO Enterprises, Inc., Senior Secured Notes, 7.25%, due 4/1/16		196	ñ
				1,499
Electronics (0.4%)
	630	Freescale Semiconductor, Inc., Senior Secured Notes, 9.25%, due 4/15/18		699	ñ
	990	NXP BV Funding LLC, Senior Secured Notes, 9.75%, due 8/1/18		1,146	ñ
				1,845
Energy - Alternate Sources (0.1%)
	230	PSALM Corp., Guaranteed Notes, 7.39%, due 12/2/24		265	ñ

Energy - Exploration & Production (1.8%)
	50	Chesapeake Energy Corp., Guaranteed Notes, 7.63%, due 7/15/13		55
	945	Chesapeake Energy Corp., Guaranteed Notes, 6.88%, due 8/15/18		1,032
	60	Chesapeake Energy Corp., Guaranteed Notes, 6.63%, due 8/15/20		65
	360	Chesapeake Energy Corp., Guaranteed Notes, 6.13%, due 2/15/21		372
	460	Cimarex Energy Co., Guaranteed Notes, 7.13%, due 5/1/17		486
	510	EXCO Resources, Inc., Guaranteed Notes, 7.50%, due 9/15/18		517
	290	Forest Oil Corp., Guaranteed Notes, 7.25%, due 6/15/19		302
	595	Linn Energy LLC, Senior Unsecured Notes, 8.63%, due 4/15/20		657
	185	Linn Energy LLC, Guaranteed Notes, 7.75%, due 2/1/21		198	ñ
	1,815	Nexen, Inc., Senior Unsecured Notes, 6.40%, due 5/15/37		1,864	ØØ
	325	Petrohawk Energy Corp., Guaranteed Notes, 7.25%, due 8/15/18		345
	215	Pioneer Natural Resources Co., Senior Guaranteed Notes, 5.88%, due 7/15/16		228
	275	Plains Exploration & Production Co., Guaranteed Notes, 6.63%, due 5/1/21		277
	280	Quicksilver Resources, Inc., Guaranteed Notes, 11.75%, due 1/1/16		328
	385	SandRidge Energy, Inc., Guaranteed Floating Rate Notes, 3.93%, due 4/1/14		382	µ
	515	SandRidge Energy, Inc., Guaranteed Notes, 8.00%, due 6/1/18		545	ñ
	135	SandRidge Energy, Inc., Guaranteed Notes, 7.50%, due 3/15/21		142	ñ
				7,795
Food (1.7%)
	1,925	Grupo Bimbo SAB de CV, Guaranteed Notes, 4.88%, due 6/30/20		1,940	ñØØ
	1,915	Kraft Foods, Inc., Senior Unsecured Notes, 6.50%, due 2/9/40		2,136	ØØ
	3,090	Sigma Alimentos SA de CV, Senior Unsecured Notes, 5.63%, due 4/14/18		3,098	ñ
				7,174

See Notes to Schedule of Investments

PRINCIPAL AMOUNT			VALUE†

(000's omitted)			(000's omitted)

Food - Wholesale -(0.0%)
$	195	Blue Merger Sub, Inc., Guaranteed Notes, 7.63%, due 2/15/19	$	200	ñ

Gaming (0.9%)
	960	CityCenter Holdings LLC, Senior Secured Notes, 7.63%, due 1/15/16		1,001	ñ
	170	CityCenter Holdings LLC, Secured Notes, 10.75%, due 1/15/17		173	ñc
	465	FireKeepers Development Authority, Senior Secured Notes, 13.88%, due 5/1/15		548	ñ
	365	MGM Mirage, Inc., Senior Secured Notes, 11.13%, due 11/15/17		424	ØØ
	315	MGM Mirage, Inc., Senior Secured Notes, 9.00%, due 3/15/20		351
	570	Pokagon Gaming Authority, Senior Notes, 10.38%, due 6/15/14		588	ñ
	175	San Pasqual Casino Development Group, Inc., Notes, 8.00%, due 9/15/13		175	ñ
	460	Seminole Indian Tribe of Florida, Notes, 7.75%, due 10/1/17		492	ñ
				3,752
Gas Distribution (1.2%)
	550	AmeriGas Partners L.P., Senior Unsecured Notes, 7.13%, due 5/20/16		571	ØØ
	310	El Paso Corp., Senior Unsecured Notes, 7.00%, due 6/15/17		344
	320	El Paso Energy Corp., Global Medium-Term Notes, 7.80%, due 8/1/31		366
	930	Energy Transfer Equity L.P., Senior Secured Notes, 7.50%, due 10/15/20		1,018	ØØ
	475	Enterprise Products Operating LLC, Guaranteed Notes, 5.95%, due 2/1/41		476
	350	Ferrellgas Partners L.P., Senior Unsecured Notes, 9.13%, due 10/1/17		392	ØØ
	350	Inergy L.P., Guaranteed Notes, 7.00%, due 10/1/18		369	ñ
	640	Kinder Morgan Energy Partners L.P, Senior Unsecured Notes, 6.38%, due 3/1/41		672
	590	MarkWest Energy Partners L.P., Guaranteed Notes, Ser. B, 8.75%, due 4/15/18		650
	230	Regency Energy Partners L.P., Guaranteed Notes, 6.88%, due 12/1/18		246
				5,104
Health Care (0.2%)
	715	HCP, Inc., Senior Unsecured Notes, 5.38%, due 2/1/21		743

Health Facilities (0.6%)
	160	Biomet, Inc., Guaranteed Notes, 10.00%, due 10/15/17		177
	275	Biomet, Inc., Guaranteed Notes, 10.38%, due 10/15/17		306	c
	80	Columbia Healthcare Corp., Senior Unsecured Notes, 7.50%, due 12/15/23		75
	180	HCA, Inc., Secured Notes, 9.63%, due 11/15/16		193	c
	1,360	HCA, Inc., Senior Secured Notes, 8.50%, due 4/15/19		1,510
	400	OMEGA Healthcare Investors, Inc., Guaranteed Notes, 6.75%, due 10/15/22		406	ñ
	115	Tenet Healthcare Corp., Senior Secured Notes, 8.88%, due 7/1/19		130
				2,797
Health Services (0.1%)
	230	Service Corp. Int'l, Senior Unsecured Notes, 7.38%, due 10/1/14		253

Hotels (0.4%)
	1,100	Felcor Escrow Holdings LLC, Senior Secured Notes, 6.75%, due 6/1/19		1,098	ñØ
	580	Starwood Hotels & Resorts Worldwide, Inc., Senior Unsecured Notes, 6.75%, due 5/15/18		634	ØØ
				1,732

See Notes to Schedule of Investments

PRINCIPAL AMOUNT			VALUE†

(000's omitted)			(000's omitted)

Industrial (0.7%)
$	535	Corn Products Int'l, Inc., Senior Unsecured Notes, 6.63%, due 4/15/37	$	581
	1,305	Husky Energy, Inc., Senior Unsecured Notes, 5.90%, due 6/15/14		1,451	ØØ
	1,140	Wal-Mart Stores, Inc., Senior Unsecured Notes, 5.00%, due 10/25/40		1,076	ØØ
				3,108
Insurance (1.8%)
	1,805	Hartford Financial Services Group, Inc., Senior Unsecured Notes, 5.38%, due 3/15/17		1,901
	1,050	Hartford Financial Services Group, Inc., Senior Unsecured Notes, 6.30%, due 3/15/18		1,153
	1,650	Nationwide Financial Services, Inc., Senior Unsecured Notes, 5.38%, due 3/25/21		1,679	ñ
	1,595	PPL WEM Holdings PLC, Senior Unsecured Notes, 3.90%, due 5/1/16		1,620	ñ
	1,395	Prudential Financial, Inc., Senior Unsecured Medium-Term Notes, Ser. D, 3.88%, due 1/14/15		1,459
				7,812
Integrated Energy (0.5%)
	1,975	Petrobras Int'l Finance Co., Guaranteed Notes, 5.38%, due 1/27/21		2,003

Investments & Misc. Financial Services (0.3%)
	785	Icahn Enterprises L.P., Guaranteed Notes, 7.75%, due 1/15/16		809
	355	Icahn Enterprises L.P., Guaranteed Notes, 8.00%, due 1/15/18		366
				1,175
Iron/Steel (0.2%)
	670	Cliffs Natural Resources, Inc., Senior Unsecured Notes, 4.88%, due 4/1/21		679

Leisure (0.1%)
	220	Cedar Fair L.P., Guaranteed Notes, 9.13%, due 8/1/18		240	ñ

Machinery (0.4%)
	715	Case New Holland, Inc., Senior Notes, 7.88%, due 12/1/17		799	ñØØ
	320	Terex Corp., Senior Subordinated Notes, 8.00%, due 11/15/17		338
	470	The Manitowoc Co., Inc., Guaranteed Notes, 8.50%, due 11/1/20		515
				1,652
Media (2.5%)
	1,465	DirecTV Holdings LLC, Guaranteed Notes, 5.00%, due 3/1/21		1,503
	1,080	DirecTV Holdings LLC, Guaranteed Notes, 6.00%, due 8/15/40		1,076	ØØ
	800	DirecTV Holdings LLC, Guaranteed Notes, 6.38%, due 3/1/41		836
	925	News America, Inc., Guaranteed Notes, 6.15%, due 2/15/41		942	ñ
	3,050	Time Warner Cable, Inc., Guaranteed Notes, 6.75%, due 7/1/18		3,513	ØØ
	345	Time Warner Cable, Inc., Guaranteed Notes, 8.75%, due 2/14/19		437	ØØ
	810	Time Warner Cable, Inc., Guaranteed Notes, 5.88%, due 11/15/40		790
	900	Time Warner, Inc., Guaranteed Notes, 6.10%, due 7/15/40		916	ØØ
	715	Time Warner, Inc., Guaranteed Notes, 6.25%, due 3/29/41		745
				10,758
Media - Broadcast (0.9%)
	240	Citadel Broadcasting Corp., Guaranteed Notes, 7.75%, due 12/15/18		260	ñ
	1,535	NBC Universal, Inc., Senior Unsecured Notes, 4.38%, due 4/1/21		1,498	ñØØ
	490	NBC Universal, Inc., Senior Unsecured Notes, 6.40%, due 4/30/40		518	ñ

See Notes to Schedule of Investments

PRINCIPAL AMOUNT			VALUE†

(000's omitted)			(000's omitted)

$	650	Univision Communications, Inc., Senior Secured Notes, 6.88%, due 5/15/19	$	652	ñØ
	135	XM Satellite Radio, Inc., Guaranteed Notes, 13.00%, due 8/1/13		160	ñ
	610	XM Satellite Radio, Inc., Guaranteed Notes, 7.63%, due 11/1/18		650	ñ
				3,738
Media - Cable (1.3%)
	350	CCO Holdings LLC, Guaranteed Notes, 7.25%, due 10/30/17		373
	170	CCO Holdings LLC, Guaranteed Notes, 7.00%, due 1/15/19		178
	585	CCO Holdings LLC, Guaranteed Notes, 8.13%, due 4/30/20		651
	770	Cequel Communications Holdings I LLC, Senior Unsecured Notes, 8.63%, due 11/15/17		826	ñ
	595	Comcast Corp., Guaranteed Notes, 6.40%, due 3/1/40		632
	250	CSC Holdings, Inc., Senior Unsecured Notes, 8.50%, due 6/15/15		273
	650	DISH DBS Corp., Guaranteed Notes, 7.75%, due 5/31/15		708
	465	EchoStar DBS Corp., Guaranteed Notes, 7.00%, due 10/1/13		502
	160	Mediacom LLC, Senior Unsecured Notes, 9.13%, due 8/15/19		173
	275	UPC Holding BV, Senior Secured Notes, 9.88%, due 4/15/18		306	ñ
	210	Videotron Ltee, Guaranteed Notes, 9.13%, due 4/15/18		235
	375	Virgin Media Finance PLC, Guaranteed Notes, Ser.1, 9.50%, due 8/15/16		430
	215	Virgin Media Finance PLC, Guaranteed Notes, 8.38%, due 10/15/19		243
				5,530
Media - Services (0.3%)
	590	Clear Channel Worldwide Holdings, Inc., Guaranteed Notes, Ser.B, 9.25%, due 12/15/17		656
	210	Lamar Media Corp., Guaranteed Notes, 9.75%, due 4/1/14		245
	530	WMG Acquisition Corp., Senior Secured Notes, 9.50%, due 6/15/16		565
				1,466
Medical Products (0.1%)
	335	Boston Scientific Corp., Senior Unsecured Notes, 6.00%, due 1/15/20		363

Metals/Mining Excluding Steel (0.6%)
	520	Arch Coal, Inc., Guaranteed Notes, 8.75%, due 8/1/16		582	ØØ
	185	Arch Western Finance LLC, Guaranteed Notes, 6.75%, due 7/1/13		186
	650	FMG Resources (August 2006) Pty Ltd., Guaranteed Notes, 7.00%, due 11/1/15		686	ñ
	180	Peabody Energy Corp., Guaranteed Notes, 7.38%, due 11/1/16		203
	915	Southern Copper Corp., Senior Unsecured Notes, 5.38%, due 4/16/20		930
				2,587
Miscellaneous Manufacturer (0.2%)
	755	Tyco Int'l Finance SA, Guaranteed Notes, 3.75%, due 1/15/18		757

Office/Business Equipment (0.4%)
	1,450	Xerox Corp., Senior Unsecured Notes, 6.40%, due 3/15/16		1,658	ØØ

Packaging (0.4%)
	295	Ardagh Packaging Finance PLC, Senior Secured Notes, 7.38%, due 10/15/17		317	ñØØ
	450	Ball Corp., Guaranteed Notes, 7.13%, due 9/1/16		490	ØØ
	150	Ball Corp., Guaranteed Notes, 6.63%, due 3/15/18		155
	135	Owens-Brockway Glass Container, Inc., Guaranteed Notes, 7.38%, due 5/15/16		149
	480	Reynolds Group Issuer, Inc., Senior Secured Notes, 7.13%, due 4/15/19		500	ñ
	250	Reynolds Group Issuer, Inc., Senior Secured Notes, 6.88%, due 2/15/21		258	ñ
				1,869

See Notes to Schedule of Investments

PRINCIPAL AMOUNT			VALUE†

(000's omitted)			(000's omitted)

Pharmaceuticals (0.7%)
$	1,480	Express Scripts, Inc., Guaranteed Notes, 3.13%, due 5/15/16	$	1,484
	310	Mylan, Inc., Guaranteed Notes, 7.63%, due 7/15/17		339	ñ
	160	Mylan, Inc., Guaranteed Notes, 7.88%, due 7/15/20		177	ñ
	480	Valeant Pharmaceuticals Int'l, Guaranteed Notes, 6.50%, due 7/15/16		479	ñ
	275	Valeant Pharmaceuticals Int'l, Guaranteed Notes, 6.75%, due 10/1/17		274	ñ
	130	Valeant Pharmaceuticals Int'l, Guaranteed Notes, 6.88%, due 12/1/18		130	ñ
				2,883
Printing & Publishing (0.2%)
	450	Gannett Co., Inc., Guaranteed Notes, 9.38%, due 11/15/17		506
	355	Gannett Co., Inc., Guaranteed Notes, 7.13%, due 9/1/18		356	ñ
				862
Real Estate (0.2%)
	660	WEA Finance LLC, Guaranteed Notes, 7.50%, due 6/2/14		757	ñØØ

REITs (0.5%)
	1,505	Health Care REIT, Inc., Senior Unsecured Notes, 5.25%, due 1/15/22		1,512
	330	Simon Property Group L.P., Senior Unsecured Notes, 10.35%, due 4/1/19		459
	345	Ventas Realty L.P., Guaranteed Notes, 6.75%, due 4/1/17		367
				2,338
Software/Services (0.4%)
	470	Fidelity National Information Services, Inc., Guaranteed Notes, 7.63%, due 7/15/17		515
	160	Fidelity National Information Services, Inc., Guaranteed Notes, 7.88%, due 7/15/20		177
	850	First Data Corp., Senior Secured Notes, 7.38%, due 6/15/19		866	ñ
	275	Lender Processing Services, Inc., Guaranteed Notes, 8.13%, due 7/1/16		283
				1,841
Specialty Retail (0.5%)
	1,010	Home Depot, Inc., Senior Unsecured Notes, 5.95%, due 4/1/41		1,036
	530	Toys "R" Us Property Co. I LLC, Guaranteed Notes, 10.75%, due 7/15/17		601
	475	Toys "R" Us-Delaware, Inc., Senior Secured Notes, 7.38%, due 9/1/16		497	ñ
				2,134
Steel Producers/Products (1.1%)
	1,410	ArcelorMittal, Senior Unsecured Notes, 6.13%, due 6/1/18		1,525	ØØ
	745	ArcelorMittal, Senior Unsecured Notes, 9.85%, due 6/1/19		960
	1,560	ArcelorMittal, Senior Unsecured Notes, 5.25%, due 8/5/20		1,568	ØØ
	20	Steel Dynamics, Inc., Guaranteed Notes, 6.75%, due 4/1/15		21
	285	Steel Dynamics, Inc., Guaranteed Notes, 7.75%, due 4/15/16		305
	250	Tube City IMS Corp., Guaranteed Notes, 9.75%, due 2/1/15		260
	195	United States Steel Corp., Senior Unsecured Notes, 6.65%, due 6/1/37		175
				4,814

See Notes to Schedule of Investments

PRINCIPAL AMOUNT			VALUE†

(000's omitted)			(000's omitted)

Support - Services (0.5%)
$	135	Hertz Corp., Guaranteed Notes, 6.75%, due 4/15/19	$	138	ñ
	265	Knowledge Learning Corp., Guaranteed Notes, 7.75%, due 2/1/15		265	ñ
	90	NES Rentals Holdings, Inc., Secured Notes, 12.25%, due 4/15/15		90	ñ
	300	RSC Equipment Rental, Inc., Senior Secured Notes, 10.00%, due 7/15/17		343	ñ
	605	United Rentals N.A., Inc., Guaranteed Notes, 10.88%, due 6/15/16		704
	135	West Corp., Guaranteed Notes, 8.63%, due 10/1/18		143	ñ
	355	West Corp., Guaranteed Notes, 7.88%, due 1/15/19		366	ñ
				2,049
Telecom - Equipment (0.1%)
	325	CommScope, Inc., Guaranteed Notes, 8.25%, due 1/15/19		342	ñ

Telecom - Integrated/Services (1.3%)
	580	Citizens Communications Co., Senior Unsecured Notes, 9.00%, due 8/15/31		597
	135	Citizens Utilities Co., Senior Unsecured Notes, 6.63%, due 3/15/15		140
	200	Frontier Communications Corp., Senior Unsecured Notes, 8.25%, due 4/15/17		217
	495	GCI, Inc., Senior Unsecured Notes, 8.63%, due 11/15/19		546	ØØ
	493	Intelsat Bermuda Ltd., Guaranteed Notes, 11.50%, due 2/4/17		540	c
	715	Intelsat Jackson Holdings Ltd., Guaranteed Notes, 8.50%, due 11/1/19		770
	255	PAETEC Holding Corp., Senior Secured Notes, 8.88%, due 6/30/17		278	ØØ
	530	Qwest Communications Int'l, Inc., Guaranteed Notes, 7.13%, due 4/1/18		578
	530	Qwest Corp., Senior Unsecured Notes, 7.50%, due 10/1/14		600
	125	Windstream Corp., Guaranteed Notes, 8.13%, due 8/1/13		137
	640	Windstream Corp., Guaranteed Notes, 7.75%, due 10/15/20		678
	600	Windstream Corp., Guaranteed Notes, 7.75%, due 10/1/21		635	ñ
				5,716
Telecom - Wireless (1.6%)
	460	CC Holdings GS V LLC/Crown Castle GS III Corp., Senior Secured Notes, 7.75%, due 5/1/17		508	ñ
	1,135	Cricket Communications, Inc., Senior Secured Notes, 7.75%, due 5/15/16		1,212
	315	Cricket Communications, Inc., Guaranteed Notes, 7.75%, due 10/15/20		322
	270	Sprint Capital Corp., Guaranteed Notes, 6.90%, due 5/1/19		283
	475	Sprint Capital Corp., Guaranteed Notes, 6.88%, due 11/15/28		455
	720	Sprint Nextel Corp., Senior Unsecured Notes, 6.00%, due 12/1/16		730
	2,505	Verizon Communications, Inc., Senior Unsecured Notes, 4.60%, due 4/1/21		2,560
	870	Wind Acquisition Finance SA, Senior Secured Notes, 7.25%, due 2/15/18		920	ñ
				6,990
Telecommunications (2.2%)
	1,040	America Movil SAB de CV, Guaranteed Notes, 5.75%, due 1/15/15		1,161
	825	America Movil SAB de CV, Guaranteed Notes, 5.00%, due 3/30/20		861	ØØ
	1,935	AT&T, Inc., Senior Unsecured Notes, 4.45%, due 5/15/21		1,946
	625	AT&T, Inc., Senior Unsecured Notes, 6.55%, due 2/15/39		681	ØØ
	325	Telecom Italia Capital SA, Guaranteed Unsecured Notes, 4.95%, due 9/30/14		343
	1,760	Telefonica Emisiones SAU, Guaranteed Notes, 3.99%, due 2/16/16		1,795
	785	Telefonica Emisiones SAU, Guaranteed Notes, 5.13%, due 4/27/20		798
	1,835	Telefonica Emisiones SAU, Guaranteed Notes, 5.46%, due 2/16/21		1,905
				9,490
Tobacco (0.6%)
	2,010	Lorillard Tobacco Co., Guaranteed Notes, 8.13%, due 6/23/19		2,378	ØØ

See Notes to Schedule of Investments

PRINCIPAL AMOUNT				VALUE†

(000's omitted)				(000's omitted)

Transport - Rail (0.1%)
$	205		RZD Capital Ltd., Medium-Term Loan Participation Notes, 5.74%, due 4/3/17	$	215

		Total Corporate Debt Securities (Cost $180,237)			186,707
Asset-Backed Securities (1.6%)
	2,000		ACE Securities Corp., Ser. 2007-ASP2, Class A2D, 0.49%, due 6/25/37		1,014	µØØ
	1,224		Citigroup Mortgage Loan Trust, Inc., Ser. 2006-AMC1, Class A2B, 0.37%, due 9/25/36		533	µ
	785		Morgan Stanley Home Equity Loan Trust, Ser. 2006-3, Class A3, 0.37%, due 4/25/36		473	µ
	2,733		Residential Asset Mortgage Products, Inc., Ser. 2006-RS1, Class AI2, 0.44%, due 1/25/36		2,058	µ
	1,550		Soundview Home Equity Loan Trust, Ser. 2006-3, Class A3, 0.37%, due 11/25/36		947	µØØ
	2,720		Wells Fargo Home Equity Trust, Ser. 2006-3, Class A2, 0.36%, due 1/25/37		1,919	µ

		Total Asset-Backed Securities (Cost $6,960)			6,944

Government Securities (2.2%)

Quasi - Sovereign (0.5%)
	168		Banco Nacional de Desenvolvimento Economico e Social, Senior Unsecured Notes, 6.50%, due 6/10/19		185
	164		Banco Nacional de Desenvolvimento Economico e Social, Senior Unsecured Notes, 5.50%, due 7/12/20		168
	215		Bank of China (Hong Kong) Ltd., Subordinated Notes, 5.55%, due 2/11/20		221
	165		Empresa Nacional del Petroleo, Unsecured Notes, 5.25%, due 8/10/20		165
	275		Intergas Finance BV, Guaranteed Notes, 6.38%, due 5/14/17		290
	110		KazMunayGaz National Co., Senior Unsecured Global Medium-Term Notes, Ser. 2, 9.13%, due 7/2/18		133
	125		Nak Naftogaz Ukraine, Gov't Guaranteed Notes, 9.50%, due 9/30/14		138
	210		Petroleos de Venezuela SA, Guaranteed Notes, 5.25%, due 4/12/17		129
	110		Petroleos de Venezuela SA, Guaranteed Notes, 5.38%, due 4/12/27		52
	435		Petronas Capital Ltd., Guaranteed Notes, 5.25%, due 8/12/19		463
	114		Republic of Croatia, Senior Unsecured Notes, 6.75%, due 11/5/19		121
					2,065
Sovereign (1.7%)
	348		Federative Republic of Brazil, Senior Unsecured Notes, 4.88%, due 1/22/21		359
	85		Lebanese Republic, Notes, 8.50%, due 1/19/16		95
	102		Lebanese Republic, Unsubordinated Global Medium-Term Notes, 6.38%, due 3/9/20		104
	260		Majapahit Holding BV, Guaranteed Notes, 7.88%, due 6/29/37		294
	258		Pemex Project Funding Master Trust, Guaranteed Notes, 5.75%, due 3/1/18		276
	170		Pemex Project Funding Master Trust, Guaranteed Notes, 6.63%, due 6/15/38		172
	30		Republic of Argentina, Senior Unsecured Notes, 8.75%, due 6/2/17		31
	273		Republic of Argentina, Senior Unsecured Notes, 8.28%, due 12/31/33		243
	65		Republic of Argentina, Unsubordinated Notes, Step-Up, 2.50%/5.25%, 2.50%, due 12/31/38		28	**
	55		Republic of Bulgaria, Unsubordinated Notes, 8.25%, due 1/15/15		64
	100		Republic of Chile, Senior Unsecured Notes, 3.88%, due 8/5/20		98
	210		Republic of Colombia, Senior Unsecured Notes, 8.13%, due 5/21/24		271
	180		Republic of Colombia, Senior Unsecured Notes, 7.38%, due 1/27/17		215
	85		Republic of El Salvador, Senior Unsecured Notes, 7.75%, due 1/24/23		95
	50		Republic of El Salvador, Senior Unsecured Notes, 7.65%, due 6/15/35		51
	17		Republic of Hungary, Senior Unsecured Notes, 4.75%, due 2/3/15		17
	130		Republic of Hungary, Senior Unsecured Notes, 6.25%, due 1/29/20		135
	349		Republic of Indonesia, Senior Unsecured Notes, 5.88%, due 3/13/20		380
	150		Republic of Lithuania, Senior Unsecured Notes, 7.38%, due 2/11/20		170
	55		Republic of Panama, Senior Unsecured Notes, 7.25%, due 3/15/15		64
	100		Republic of Panama, Senior Unsecured Notes, 5.20%, due 1/30/20		106
	162		Republic of Panama, Senior Unsecured Notes, 6.70%, due 1/26/36		183
	255		Republic of Peru, Senior Unsecured Notes, 7.35%, due 7/21/25		296
	43		Republic of Peru, Senior Unsecured Notes, 8.75%, due 11/21/33		55
	400		Republic of Philippines, Senior Unsecured Notes, 6.50%, due 1/20/20		461
	238		Republic of Poland, Senior Unsecured Notes, 5.00%, due 10/19/15		253
	88		Republic of Poland, Senior Unsecured Notes, 6.38%, due 7/15/19		98

See Notes to Schedule of Investments

PRINCIPAL AMOUNT				VALUE†

(000's omitted)				(000's omitted)

$	100		Republic of South Africa, Senior Unsecured Notes, 6.50%, due 6/2/14	$	111
	175		Republic of South Africa, Senior Unsecured Notes, 6.88%, due 5/27/19		204
	150		Republic of Sri Lanka, Senior Unsecured Notes, 6.25%, due 10/4/20		151
	447		Republic of Turkey, Senior Unsecured Notes, 7.00%, due 6/5/20		513
	100		Republic of Turkey, Senior Unsecured Notes, 5.63%, due 3/30/21		104
	100		Republic of Turkey, Senior Unsecured Notes, 7.38%, due 2/5/25		118
	222		Republic of Uruguay, Senior Unsecured Notes, 6.88%, due 9/28/25		259
	13		Republic of Uruguay, Unsecured Notes, 7.88%, due 1/15/33		16
	241		Republic of Venezuela, Senior Unsecured Notes, 7.75%, due 10/13/19		166
	124		Republic of Venezuela, Senior Unsecured Notes, 9.38%, due 1/13/34		85
	200		RSHB Capital SA, Senior Secured Notes, 6.30%, due 5/15/17		210
	4		Russian Federation Bond, Senior Unsecured Notes, 7.50%, due 3/31/30		5
	182		Russian Federation Bond, Senior Unsecured Notes, 7.50%, due 3/31/30		213
	200		Ukraine Government Bond, Senior Unsecured Notes, 6.58%, due 11/21/16		203
	308		United Mexican States, Senior Unsecured Global Medium-Term Notes, Ser. A, 5.13%, due 1/15/20		326
					7,298
		Total Government Securities (Cost $9,299)			9,363

NUMBER OF SHARES

Short-Term Investments (10.6%)
	45,476,772		State Street Institutional Liquid Reserves Fund Institutional Class (Cost $45,477)		45,477

		Total Investments (110.9%) (Cost $457,818)			474,779	##

		Liabilities, less cash, receivables and other assets [(10.9%)]			(46,606	)

		Total Net Assets (100.0%)		$	428,173

See Notes to Schedule of Investments

Notes to Schedule of Investments (Unaudited)

†	In accordance with Accounting Standards Codification ("ASC") 820 "Fair Value Measurements and Disclosures" ("ASC 820"), all investments held by each of Neuberger Berman Core Bond Fund ("Core Bond"), Neuberger Berman Floating Rate Income Fund ("Floating Rate Income"), Neuberger Berman High Income Bond Fund ("High Income"), Neuberger Berman Municipal Intermediate Bond Fund ("Municipal Intermediate Bond"), Neuberger Berman Short Duration Bond Fund ("Short Duration"), and Neuberger Berman Strategic Income Fund ("Strategic Income") (each individually a "Fund," and collectively, the "Funds") are carried at the value that Neuberger Berman Management LLC ("Management") believes a fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment under current market conditions. Various inputs, including the volume and level of activity for the asset or liability in the market, are considered in valuing the Funds' investments, some of which are discussed below. Significant management judgment may be necessary to value investments in accordance with ASC 820.

	ASC 820 established a three-tier hierarchy of inputs to create a classification of value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.

		■	Level 1 – quoted prices in active markets for identical investments
		■	Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)
		■	Level 3 – significant unobservable inputs (including a Fund's own assumptions in determining the fair value of investments)

	The inputs or methodology used for valuing an investment are not necessarily an indication of the risk associated with investing in those securities.

	The value of the Funds' investments in debt securities is determined by Management primarily by obtaining valuations from independent pricing services based on readily available bid quotations, or if quotations are not available, by methods which include various considerations based on security type (generally Level 2 inputs). In addition to the consideration of yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions, the following is a description of other Level 2 inputs and related valuation techniques used by an independent pricing service to value certain types of debt securities of the Funds:

			Corporate Debt Securities. Inputs used to value corporate debt securities generally include relative credit information, observed market movements, sector news, spread to the U.S. Treasury market, and other market information which may include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, benchmark securities, bids, offers, and reference data, such as market research publications, when available ("Other Market Information").

			U.S. Treasury Securities. Inputs used to value U.S. Treasury securities generally include quotes from several inter-dealer brokers and Other Market Information.

			Asset-Backed Securities and Mortgage Backed Securities. Inputs used to value asset-backed securities and mortgage backed securities generally include models that consider a number of factors, which may include the following: prepayment speeds, cash flows, spread adjustments and Other Market Information.

			High Yield Securities. Inputs used to value high yield securities generally include a number of observations of equity and credit default swap curves related to the issuer and Other Market Information.

			Municipal Debt Securities. Inputs used to evaluate municipal debt securities include current trades, bid-wanted lists (which informs the market that a holder is interested in selling a position and that offers will be considered), offerings, general information on market movement, direction, trends, and specific data on specialty issues.

See Notes to Financial Statements

Notes to Schedule of Investments (Unaudited) (cont'd)

		Emerging Markets Debt. Inputs used to value emerging markets debt generally include dealer quotes, bond market activity, discounted cash flow models, and other relevant information such as credit spreads and benchmark curves.

	Inputs used by independent pricing services to value bank loan securities include multiple broker quotes (generally Level 2 inputs).

	Financial futures contracts are determined by obtaining valuations from independent pricing services at the settlement price at the market close.

	Management has developed a process to periodically review information provided by independent pricing services for all types of securities.

	Investments in State Street Institutional Government Money Market Fund Institutional Class and State Street Institutional Liquid Reserves Fund Institutional Class are valued using the respective fund's daily calculated net asset value per share.

	If a valuation is not available from an independent pricing service, or if Management has reason to believe that the valuation received does not represent the amount a Fund might reasonably expect to receive on a current sale in an orderly transaction, the applicable Fund seeks to obtain quotations from principal market makers (generally considered Level 3 inputs). If such quotations are not readily available, the security is valued using methods the Neuberger Berman Income Funds' Board of Trustees (the "Board") has approved on the belief that they reflect fair value. Numerous factors may be considered when determining the fair value of a security based on Level 2 or 3 inputs, including available analyst, media or other reports, trading in futures or ADRs and whether the issuer of the security being fair valued has other securities outstanding. These fair value prices are necessarily estimates, and there is no assurance that such a price will be at or close to the price at which the security is next quoted or next trades.

	The following is a summary, categorized by Level, of inputs used to value the Funds' investments as of April 30, 2011:

Asset Valuation Inputs (000's omitted)	Level 1		Level 2		Level 3§		Total
Core Bond
Investments:
U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government		$—		$41,240		$—		$41,240
U.S. Government Agency Securities		—		818		—		818
Mortgage-Backed Securities^		—		99,799		—		99,799
Corporate Debt Securities
Airlines		—		—		2,757		2,757
Banking		—		13,624		—		13,624
Chemicals		—		867		—		867
Commercial Services		—		589		—		589
Diversified Financial Services		—		4,233		—		4,233
Electric—Integrated		—		700		—		700
Energy—Exploration & Production		—		693		—		693
Food		—		2,747		—		2,747
Gas Distribution		—		983		—		983

See Notes to Financial Statements

Notes to Schedule of Investments (Unaudited) (cont'd)

Asset Valuation Inputs (000's omitted)	Level 1		Level 2		Level 3§		Total
Industrial		$—		$484		$—		$484
Insurance		—		3,886		—		3,886
Integrated Energy		—		1,065		—		1,065
Iron/Steel		—		552		—		552
Media		—		6,124		—		6,124
Media—Broadcast		—		1,368		—		1,368
Media—Cable		—		234		—		234
Metals/Mining Excluding Steel		—		467		—		467
Pharmaceuticals		—		737		—		737
REITs		—		1,358		—		1,358
Specialty Retail		—		866		—		866
Steel Producers/Products		—		2,871		—		2,871
Telecom—Integrated/Services		—		515		—		515
Telecom—Wireless		—		1,318		—		1,318
Telecommunications		—		4,800		—		4,800
Tobacco		—		1,236		—		1,236
Total Corporate Debt Securities		—		52,317		2,757		55,074
Asset-Backed Securities		—		1,422		0		1,422
Short-Term Investments		—		67,426		—		67,426
Total Investments		—		263,022		2,757		265,779
Floating Rate Income
Investments:
Bank Loan Obligations
Aerospace & Defense		—		2,065		—		2,065
AirTransport		—		2,406		—		2,406
All Telecom		—		5,026		2,034		7,060
Automotive		—		2,483		—		2,483
Building & Development		—		8,435		—		8,435
Business Equipment & Services		—		9,320		1,817		11,137
Cable & Satellite Television		—		102		—		102
Chemicals & Plastics		—		8,184		620		8,804
Conglomerates		—		538		—		538
Consumer/Commercial/Lease Financing		—		785		—		785
Containers & Glass Products		—		1,706		—		1,706
Drugs		—		2,535		—		2,535
Electronics/Electrical		—		9,893		1,901		11,794
Equipment Leasing		—		1,913		—		1,913
Farming/Agriculture		—		670		—		670
Financial Intermediaries		—		8,499		1,368		9,867

See Notes to Financial Statements

Notes to Schedule of Investments (Unaudited) (cont'd)

Asset Valuation Inputs (000's omitted)	Level 1		Level 2		Level 3§		Total
Food Products		$—		$4,008		$—		$4,008
Food Service		—		1,267		—		1,267
Food/Drug Retailers		—		1,278		—		1,278
Forest Products		—		632		—		632
Health Care		—		12,997		2,005		15,002
Home Furnishings		—		1,788		—		1,788
Industrial Equipment		—		951		—		951
Insurance		—		—		576		576
Leisure Goods/Activities/Movies		—		3,094		—		3,094
Lodging & Casinos		—		7,047		—		7,047
Nonferrous Metals/Minerals		—		2,931		—		2,931
Oil & Gas		—		724		—		724
Publishing		—		12,187		—		12,187
Radio & Television		—		10,575		—		10,575
Retailers (except food & drug)		—		10,764		—		10,764
Steel		—		669		—		669
Utilities		—		11,125		—		11,125
Total Bank Loan Obligations		—		146,597		10,321		156,918
Corporate Debt Securities
Aerospace/Defense		—		630		—		630
AirTransport		—		2,088		267		2,355
Auto Loans		—		930		—		930
Building Materials		—		488		—		488
Chemicals		—		488		—		488
Consumer/Commercial/Lease Financing		—		3,752		—		3,752
Department Stores		—		729		—		729
Diversified Financial Services		—		451		—		451
Electric—Generation		—		4,113		967		5,080
Electronics		—		891		—		891
Energy—Exploration & Production		—		2,359		—		2,359
Gaming		—		1,190		—		1,190
Gas Distribution		—		498		—		498
Health Facilities		—		1,477		—		1,477
Health Services		—		638		—		638
Hotels		—		—		1,663		1,663
Media—Cable		—		1,433		—		1,433
Metals/Mining Excluding Steel		—		619		—		619
Packaging		—		1,379		—		1,379
Specialty Retail		—		1,074		—		1,074

See Notes to Financial Statements

Notes to Schedule of Investments (Unaudited) (cont'd)

Asset Valuation Inputs (000's omitted)	Level 1		Level 2		Level 3§		Total
Steel Producers/Products		$—		$1,627		$—		$1,627
Support—Services		—		1,202		—		1,202
Telecom—Integrated/Services		—		366		—		366
Telecom—Wireless		—		2,697		—		2,697
Total Corporate Debt Securities		—		31,119		2,897		34,016
Short-Term Investments		—		16,027		—		16,027
Total Investments		—		193,743		13,218		206,961
High Income
Investments:
Bank Loan Obligations
Financial Intermediaries		—		4,584		—		4,584
Lodging & Casinos		—		7,730		—		7,730
Radio & Television		—		6,102		—		6,102
Utilities		—		4,907		—		4,907
Total Bank Loan Obligations		—		23,323		—		23,323
Corporate Debt Securities
Aerospace/Defense		—		7,900		—		7,900
Airlines		—		12,986		3,847		16,833
Apparel/Textiles		—		21,687		—		21,687
Auto Loans		—		28,700		—		28,700
Automakers		—		14,710		—		14,710
Banking		—		26,667		—		26,667
Building & Construction		—		10,568		—		10,568
Building Materials		—		28,431		—		28,431
Chemicals		—		26,364		—		26,364
Consumer/Commercial/Lease Financing		—		55,890		—		55,890
Department Stores		—		12,425		—		12,425
Diversified Capital Goods		—		3,737		—		3,737
Electric—Generation		—		59,287		5,743		65,030
Electric—Integrated		—		6,309		—		6,309
Electronics		—		14,594		—		14,594
Energy—Exploration & Production		—		88,222		—		88,222
Food & Drug Retailers		—		5,841		—		5,841
Food—Wholesale		—		2,928		—		2,928
Forestry/Paper		—		4,837		—		4,837
Gaming		—		60,367		—		60,367
Gas Distribution		—		45,125		—		45,125
Health Facilities		—		27,880		—		27,880
Investments & Misc. Financial Services		—		15,750		—		15,750

See Notes to Financial Statements

Notes to Schedule of Investments (Unaudited) (cont'd)

Asset Valuation Inputs (000's omitted)	Level 1		Level 2		Level 3§		Total
Leisure		$—		$4,573		$—		$4,573
Machinery		—		20,802		—		20,802
Media—Broadcast		—		40,956		—		40,956
Media—Cable		—		62,550		—		62,550
Media—Services		—		13,259		—		13,259
Metals/Mining Excluding Steel		—		27,730		—		27,730
Packaging		—		36,902		—		36,902
Pharmaceuticals		—		21,132		—		21,132
Printing & Publishing		—		19,714		—		19,714
Real Estate Dev. & Mgt.		—		5,183		—		5,183
Software/Services		—		53,737		—		53,737
Specialty Retail		—		9,098		—		9,098
Steel Producers/Products		—		6,458		—		6,458
Support—Services		—		24,877		—		24,877
Telecom—Equipment		—		2,973		—		2,973
Telecom—Integrated/Services		—		59,541		—		59,541
Telecom—Wireless		—		57,889		—		57,889
Total Corporate Debt Securities		—		1,048,579		9,590		1,058,169
Short-Term Investments		—		41,735		—		41,735
Total Investments		—		1,113,637		9,590		1,123,227
Municipal Intermediate Bond
Investments:
Municipal Debt Securities^		—		110,566		—		110,566
Total Investments		—		110,566		—		110,566
Short Duration
Investments:
U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government		—		6,143		—		6,143
U.S. Government Agency Securities		—		2,608		—		2,608
Mortgage-Backed Securities^		—		30,025		—		30,025
Corporate Debt Securities^		—		17,411		—		17,411
Asset-Backed Securities		—		9,638		0		9,638
Short-Term Investments		—		313		—		313
Total Investments		—		66,138		0		66,138
Strategic Income
Investments:
Bank Loan Obligations
Aerospace & Defense		—		366		—		366
AirTransport		—		945		—		945
All Telecom		—		1,422		789		2,211

See Notes to Financial Statements

Notes to Schedule of Investments (Unaudited) (cont'd)

Asset Valuation Inputs (000's omitted)	Level 1		Level 2		Level 3§		Total
Automotive		$—		$674		$—		$674
Building & Development		—		2,789		—		2,789
Business Equipment & Services		—		6,703		892		7,595
Cable & Satellite Television		—		1,603		—		1,603
Chemicals & Plastics		—		2,992		—		2,992
Conglomerates		—		284		—		284
Containers & Glass Products		—		201		—		201
Drugs		—		943		—		943
Electric—Generation		—		1,225		—		1,225
Electronics/Electrical		—		3,048		796		3,844
Equipment Leasing		—		645		—		645
Farming/Agriculture		—		286		—		286
Financial Intermediaries		—		3,527		965		4,492
Food Products		—		1,902		—		1,902
Food/Drug Retailers		—		650		—		650
Gaming		—		1,607		—		1,607
Health Care		—		4,723		1,411		6,134
Home Furnishings		—		314		—		314
Insurance		—		—		303		303
Leisure Goods/Activities/Movies		—		1,862		—		1,862
Lodging & Casinos		—		645		—		645
Media—Broadcast		—		1,133		—		1,133
Media—Services		—		1,254		—		1,254
Nonferrous Metals/Minerals		—		1,340		—		1,340
Publishing		—		5,538		—		5,538
Radio & Television		—		1,322		—		1,322
Retailers (except food & drug)		—		4,947		—		4,947
Software/Services		—		1,083		—		1,083
Steel		—		333		—		333
Utilities		—		3,322		—		3,322
Total Bank Loan Obligations		—		59,628		5,156		64,784
U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government		—		13,107		—		13,107
Mortgage-Backed Securities^		—		148,397		—		148,397
Corporate Debt Securities
Aerospace/Defense		—		472		—		472
Airlines		—		1,924		5,724		7,648
Apparel/Textiles		—		426		—		426
Auto Loans		—		1,257		—		1,257

See Notes to Financial Statements

Notes to Schedule of Investments (Unaudited) (cont'd)

Asset Valuation Inputs (000's omitted)	Level 1		Level 2		Level 3§		Total
Automakers		$—		$1,640		$—		$1,640
Banking		—		28,442		—		28,442
Building & Construction		—		362		—		362
Building Materials		—		1,859		—		1,859
Chemicals		—		3,968		—		3,968
Commercial Services		—		1,223		—		1,223
Consumer/Commercial/Lease Financing		—		6,038		—		6,038
Department Stores		—		1,439		—		1,439
Diversified Financial Services		—		5,370		—		5,370
Electric—Generation		—		4,666		534		5,200
Electric—Integrated		—		1,499		—		1,499
Electronics		—		1,845		—		1,845
Energy—Alternate Sources		—		265		—		265
Energy—Exploration & Production		—		7,795		—		7,795
Food		—		7,174		—		7,174
Food—Wholesale		—		200		—		200
Gaming		—		3,752		—		3,752
Gas Distribution		—		5,104		—		5,104
Health Care		—		743		—		743
Health Facilities		—		2,797		—		2,797
Health Services		—		253		—		253
Hotels		—		634		1,098		1,732
Industrial		—		3,108		—		3,108
Insurance		—		7,812		—		7,812
Integrated Energy		—		2,003		—		2,003
Investments & Misc. Financial Services		—		1,175		—		1,175
Iron/Steel		—		679		—		679
Leisure		—		240		—		240
Machinery		—		1,652		—		1,652
Media		—		10,758		—		10,758
Media—Broadcast		—		3,738		—		3,738
Media—Cable		—		5,530		—		5,530
Media—Services		—		1,466		—		1,466
Medical Products		—		363		—		363
Metals/Mining Excluding Steel		—		2,587		—		2,587
Miscellaneous Manufacturer		—		757		—		757
Office/Business Equipment		—		1,658		—		1,658
Packaging		—		1,869		—		1,869
Pharmaceuticals		—		2,883		—		2,883

See Notes to Financial Statements

Notes to Schedule of Investments (Unaudited) (cont'd)

Asset Valuation Inputs (000's omitted)	Level 1		Level 2		Level 3§		Total
Printing & Publishing		$—		$862		$—		$862
Real Estate		—		757		—		757
REITs		—		2,338		—		2,338
Software/Services		—		1,841		—		1,841
Specialty Retail		—		2,134		—		2,134
Steel Producers/Products		—		4,814		—		4,814
Support—Services		—		2,049		—		2,049
Telecom—Equipment		—		342		—		342
Telecom—Integrated/Services		—		5,716		—		5,716
Telecom—Wireless		—		6,990		—		6,990
Telecommunications		—		9,490		—		9,490
Tobacco		—		2,378		—		2,378
Transport—Rail		—		215		—		215
Total Corporate Debt Securities		—		179,351		7,356		186,707
Asset-Backed Securities		—		6,944		—		6,944
Government Securities^		—		9,363		—		9,363
Short-Term Investments		—		45,477		—		45,477
Total Investments		—		462,267		12,512		474,779

^	The Schedule of Investments provides information on the industry or state categorization for the portfolio.

§	The following is a reconciliation between the beginning and ending balances of investments in which significant unobservable inputs (Level 3) were used in determining value:

(000's omitted)	Beginning balance, as of 11/1/10	Accrued discounts/ (premiums)	Realized gain/loss and change in unrealized appreciation/ (depreciation)		Purchases	Sales		Transfers in to Level 3	Transfers out of Level 3	Balance, as of 4/30/11	Net change in unrealized appreciation/ (depreciation) from investments still held as of 4/30/11
Investments in Securities:
Core Bond
Corporate Debt Securities
Airlines	$2,585	$—	$(69	)	$932	$(691	)	$—	$—	$2,757	$(134	)
Asset-Backed Securities	0	—	—		—	—		—	—	0	—
Total	2,585	—	(69	)	932	(691	)	—	—	2,757	(134	)

See Notes to Financial Statements

Notes to Schedule of Investments (Unaudited) (cont'd)

(000's omitted)	Beginning balance, as of 11/1/10	Accrued discounts/ (premiums)	Realized gain/loss and change in unrealized appreciation/ (depreciation)		Purchases	Sales		Transfers in to Level 3	Transfers out of Level 3		Balance, as of 4/30/11	Net change in unrealized appreciation/ (depreciation) from investments still held as of 4/30/11
Floating Rate Income
Bank Loan Obligations
All Telecom	$—	$—	$10		$2,024	$—		$—	$—		$2,034	$10
Building & Development	709	—	7		—	(14	)	—	(702	)	—	—
Business Equipment & Services	877	—	71		1,756	(514	)	—	(373	)	1,817	61
Chemicals & Plastics	—	—	(2	)	624	(2	)	—	—		620	(2	)
Electronics/ Electrical	—	1	13		1,124	(13	)	776	—		1,901	13
Financial Intermediaries	1,317	4	21		2,068	(1,548	)	—	(494	)	1,368	10
Health Care	—	—	21		1,985	(1	)	—	—		2,005	21
Insurance	—	—	4		572	—		—	—		576	4
Corporate Debt Securities
AirTransport	432	—	(7	)	—	(158	)	—	—		267	(6	)
Electric— Generation	372	—	(24	)	619	—		—	—		967	(24	)
Hotels	—	—	(2	)	1,665	—		—	—		1,663	(2	)
Total	3,707	5	112		12,437	(2,250	)	776	(1,569	)	13,218	85
High Income
Corporate Debt Securities
Airlines	8,097	—	(222	)	—	(4,028	)	—	—		3,847	(508	)
Electric— Generation	3,873	—	(25	)	1,895	—		—	—		5,743	(25	)
Total	11,970	—	(247	)	1,895	(4,028	)	—	—		9,590	(533	)
Short Duration
Asset-Backed Securities	1,100	—	—		—	—		—	(1,100	)	0	—
Total	1,100	—	—		—	—		—	(1,100	)	0	—

See Notes to Financial Statements

Notes to Schedule of Investments (Unaudited) (cont'd)

(000's omitted)	Beginning balance, as of 11/1/10	Accrued discounts/ (premiums)	Realized gain/loss and change in unrealized appreciation/ (depreciation)		Purchases	Sales		Transfers in to Level 3	Transfers out of Level 3		Balance, as of 4/30/11	Net change in unrealized appreciation/ (depreciation) from investments still held as of 4/30/11
Strategic Income
Bank Loan Obligations
All Telecom	$—	$—	$4		$785	$—		$—	$—		$789	$4
Building & Development	288	—	—		—	—		—	(288	)	—	—
Business Equipment & Services	904	—	43		862	(618	)	—	(299	)	892	30
Electronics/ Electrical	—	1	4		—	(11	)	802	—		795	4
Financial Intermediaries	1,561	3	16		1,156	(1,276	)	—	(495	)	965	1
Health Care	—	—	14		1,398	(1	)	—	—		1,411	14
Insurance	—	—	2		302	(1	)	—	—		303	2
Corporate Debt Securities
Airlines	4,198	—	(192	)	2,750	(1,032	)	—	—		5,724	(197	)
Electric— Generation	377	—	—		157	—		—	—		534	—
Hotels	—	—	(2	)	1,100	—		—	—		1,098	(2	)
Total	7,328	4	(111	)	8,510	(2,939	)	802	(1,082	)	12,512	(144	)

The Funds had no significant transfers between Levels 1 and 2 as of April 30, 2011. As of April 30, 2011, two securities in each of Floating Rate Income and Strategic Income transferred from Level 2 to Level 3 as a result of a decrease in the number of quotations that were readily available to the independent pricing service. Three securities in each of Floating Rate Income and Strategic Income, and one security in Short Duration, transferred from Level 3 to Level 2 as a result of an increase in the number of quotations that were readily available to the independent pricing service.

Liability Valuation Inputs

The following is a summary, categorized by Level, of inputs used to value the Funds' derivatives as of April 30, 2011:

(000's omitted)	Level 1		Level 2		Level 3		Total
Core Bond
Futures Contracts		$(51)		$—		$—		$(51)
Strategic Income
Futures Contracts		(82)		—		—		(82)

See Notes to Financial Statements

Notes to Schedule of Investments (Unaudited) (cont'd)

##	At April 30, 2011, selected fund information on a U.S. federal income tax basis was as follows:

(000's omitted)		Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Net Unrealized Appreciation (Depreciation)
Core Bond	$	261,529	$	6,801	$	2,551	$	4,250
Floating Rate Income		205,326		2,249		614		1,635
High Income		1,073,797		50,696		1,266		49,430
Municipal Intermediate Bond		110,317		1,387		1,138		249
Short Duration		68,831		366		3,059		(2,693	)
Strategic Income		458,230		17,386		837		16,549

ñ	Restricted security subject to restrictions on resale under federal securities laws. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers under Rule 144A under the Securities Act of 1933, as amended, and have been deemed by the investment manager to be liquid. At April 30, 2011, these securities amounted to approximately $7,720,000 or 3.7% of net assets for Core Bond, approximately $14,876,000 or 7.5% of net assets for Floating Rate Income, approximately $419,553,000 or 37.1% of net assets for High Income, approximately $941,000 or 0.8% of net assets for Municipal Intermediate Bond, approximately $7,767,000 or 11.7% of net assets for Short Duration, and approximately $46,587,000 or 10.9% of net assets for Strategic Income.

ß	Security is guaranteed by the corporate or non-profit obligor.

Ø	All or a portion of this security was purchased on a when-issued basis. At April 30, 2011, these securities amounted to $56,641,000 for Core Bond, $1,663,000 for Floating Rate Income, $2,875,000 for High Income, $770,000 for Municipal Intermediate Bond and $51,382,000 for Strategic Income, respectively.

*	Security did not produce income during the last twelve months.

¢	All or a portion of this security was purchased on a delayed delivery basis.

^^	All or a portion of this security has not settled as of April 30, 2011 and thus does not have an interest rate in effect. Interest rates do not take effect until settlement.

ØØ	All or a portion of this security is segregated in connection with obligations for when-issued security purchase commitments and/or financial futures contracts and/or delayed delivery purchase commitments.

µ	Floating rate securities are securities whose yields vary with a designated market index or market rate. These securities are shown at their current rates as of April 30, 2011 and their final maturity dates.

**	Step Bond: Coupon rate is a fixed rate for an initial period then resets at a specific date and rate.

@	This debt is guaranteed under the Federal Deposit Insurance Corporation's ("FDIC") Temporary Liquidity Guarantee Program and is backed by the full faith and credit of the United States. At April 30, 2011, these securities amounted to approximately $2,608,000 or 3.9% of net assets for Short Duration.

a	Currently a zero coupon security; will convert to 6.50% on December 1, 2015.

b	Currently a zero coupon security; will convert to 7.30% on August 1, 2026.

c	Payment-in-kind security for which part of the income earned may be paid as additional principal.

See Notes to Financial Statements

Notes to Schedule of Investments (Unaudited) (cont'd)

#	Restricted security subject to restrictions on resale under federal securities laws. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers under Rule 144A under the Securities Act of 1933, as amended, and have been deemed by the investment manager to be illiquid and restricted.

	At April 30, 2011, these securities amounted to approximately $0 or 0.0% of net assets for Core Bond and approximately $0 or 0.0% of net assets for Short Duration.

(000's omitted)

Restricted Security

Acquisition

Date

Acquisition

Cost

Acquisition

Cost

Percentage

of Net Assets

as of

Acquisition

Date

Value as of

April 30, 2011

Fair Value

Percentage

of Net Assets

as of

April 30, 2011

Core Bond

Knollwood

CDO Ltd.,

Ser. 2006-2A,

Class A2J, 0.70%,

due 7/13/46

6/29/2006

$642

0.9%

0.0%

Short Duration

Knollwood

CDO Ltd.,

Ser. 2006-2A,

Class A2J, 0.70%,

due 7/13/46

9/14/2007

227

0.2

0.0

See Notes to Financial Statements

This page has been left blank intentionally

Statements of Assets and Liabilities (Unaudited)

Neuberger Berman Income Funds

(000's omitted except per share amounts)

	CORE BOND FUND		FLOATING RATE INCOME FUND		HIGH INCOME BOND FUND
	April 30, 2011		April 30, 2011		April 30, 2011
Assets
Investments in securities, at value* (Note A)—see Schedule of Investments:
Unaffiliated issuers	$265,779		$206,961		$1,123,227
Cash	—		160		—
Deposits with brokers for futures contracts (Note A)	154		—		—
Dividends and interest receivable	1,212		1,030		24,105
Receivable for securities sold	1,416		16,282		3,119
Receivable for Fund shares sold	120		7,627		4,489
Receivable from Management—net (Note B)	3		—		—
Prepaid expenses and other assets	—		—		—
Total Assets	268,684		232,060		1,154,940
Liabilities
Distributions payable	122		66		1,045
Due to custodian	—		—		—
Payable for securities purchased	57,121		33,109		20,651
Payable for Fund shares redeemed	162		1,402		1,933
Payable to investment manager (Note B)	37		77		433
Payable to administrator—net (Note B)	—		7		302
Net depreciation on futures contracts (Note A)	51		—		—
Accrued expenses and other payables	51		47		196
Total Liabilities	57,544		34,708		24,560
Net Assets at value	$211,140		$197,352		$1,130,380
Net Assets consist of:
Paid-in capital	$205,890		$194,606		$1,049,052
Undistributed net investment income (loss)	—		—		331
Distributions in excess of net investment income	(210	)	(104	)	—
Accumulated net realized gains (losses) on investments	1,176		1,134		30,925
Net unrealized appreciation (depreciation) in value of investments	4,284		1,716		50,072
Net Assets at value	$211,140		$197,352		$1,130,380
Net Assets
Investor Class	$15,302		$—		$378,966
Institutional Class	171,548		170,385		386,960
Trust Class	—		—		—
Class A	21,895		21,491		323,451
Class C	2,395		5,476		38,582
Class R3	—		—		2,421
Shares Outstanding ($.001 par value; unlimited shares authorized)
Investor Class	1,446		—		39,493
Institutional Class	16,185		16,597		40,263
Trust Class	—		—		—
Class A	2,072		2,093		33,697
Class C	227		533		4,015
Class R3	—		—		252
Net Asset Value, offering and redemption price per share
Investor Class	$10.58		$—		$9.60
Institutional Class	10.60		10.27		9.61
Trust Class	—		—		—
Class R3	—		—		9.60
Net Asset Value and redemption price per share
Class A	$10.57		$10.27		$9.60
Offering Price per share
Class A‡	$11.04		$10.73		$10.03
Net Asset Value and offering price per share
Class C^	$10.57		$10.27		$9.61
*Cost of Investments:	$261,444		$205,245		$1,073,155

‡	On single retail sales of less than $50,000. On sales of $50,000 or more or in certain other circumstances described in the Fund's prospectus, offering price is reduced.

^	Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

See Notes to Financial Statements

MUNICIPAL INTERMEDIATE BOND FUND	SHORT DURATION BOND FUND		STRATEGIC INCOME FUND
April 30, 2011	April 30, 2011		April 30, 2011

$110,566	$66,138		$474,779
252	—		—
—	—		343
1,593	390		3,655
286	3,074		10,109
146	10		3,131
12	20		—
—	2		—
112,855	69,634		492,017

26	9		469
—	12		—
754	3,206		62,273
619	119		662
23	14		188
—	—		69
—	—		82
67	63		101
1,489	3,423		63,844
$111,366	$66,211		$428,173

$111,016	$87,472		$408,862
—	—		—
—	(167	)	(319	)
101	(18,716	)	2,751
249	(2,378	)	16,879
$111,366	$66,211		$428,173

$105,453	$46,061		$—
5,682	13,154		150,451
—	6,807		17,722
67	45		160,413
164	144		99,587
—	—		—

9,369	5,731		—
505	1,638		13,634
—	889		1,606
6	6		14,526
15	19		9,025
—	—		—

$11.26	$8.04		$—
11.25	8.03		11.03
—	7.66		11.03
—	—		—

$11.25	$7.66		$11.04

$11.75	$8.00		$11.53

$11.26	$7.66		$11.03
$110,317	$68,516		$457,818

Statements of Operations (Unaudited)

Neuberger Berman Income Funds

(000's omitted)

		CORE BOND FUND		FLOATING RATE INCOME FUND		HIGH INCOME BOND FUND
		For the Six Months Ended April 30, 2011		For the Six Months Ended April 30, 2011		For the Six Months Ended April 30, 2011

Investment Income:

Income (Note A):

Interest income—unaffiliated issuers	$ 2,564			$ 3,694		$ 40,105
Foreign taxes withheld		(2	)		—		(36	)
Total income	$ 2,562			$ 3,694		$ 40,069

Expenses:

Investment management fees (Note B)			205				315				2,389
Administration fees (Note B)			49				38				299

Administration fees (Note B):

Investor Class	17	—	382
Institutional Class	55	48	137
Trust Class	—	—	—
Class A	23	18	310
Class C	3	2	33
Class R3	—	—	1

Distribution fees (Note B):

Investor Class	21	—	—
Trust Class	—	—	—
Class A	27	21	370
Class C	13	11	157
Class R3	—	—	3

Shareholder servicing agent fees:

Investor Class	12	—	38
Institutional Class	6	3	16
Trust Class	—	—	—
Class A	2	1	37
Class C	—	—	9
Class R3	—	—	—
Audit fees	12	14	25
Custodian fees (Note B)	60	91	131
Insurance expense	6	1	24
Legal fees	57	46	56
Registration and filing fees	40	31	83
Reimbursement of expenses previously assumed by Management (Note B)	—	—	48
Shareholder reports	10	—	37
Trustees' fees and expenses	28	28	28
Miscellaneous	10	4	43
Total expenses	656	672	4,656

See Notes to Financial Statements

MUNICIPAL INTERMEDIATE BOND FUND	SHORT DURATION BOND FUND	STRATEGIC INCOME FUND
For the Six Months Ended April 30, 2011	For the Six Months Ended April 30, 2011	For the Six Months Ended April 30, 2011

$2,174	$847	$9,434
—	—	(6	)
$2,174	$847	$9,428


139	83	1,062
34	20	115


114	53	—
1	4	57
—	17	29
—	—	156
—	—	99
—	—	—


—	—	—
—	—	9
—	—	185
—	1	471
—	—	—


53	25	—

—	—	7
—	1	2
—	—	47
—	—	15
—	—	—
23	24	25
48	40	175
4	2	10
75	62	62
45	50	51
—	—	—
11	21	20
28	28	28
7	5	20
582	436	2,645

Statements of Operations (Unaudited) (cont'd)

Neuberger Berman Income Funds (cont'd)

(000's omitted)

	CORE BOND FUND		FLOATING RATE INCOME FUND		HIGH INCOME BOND FUND
	For the Six Months Ended April 30, 2011		For the Six Months Ended April 30, 2011		For the Six Months Ended April 30, 2011

Expenses reimbursed by Management (Note B)	(96	)	(188	)	(2	)
Management and administration fees waived (Note B)	(98	)	—		—
Expenses reduced by custodian fee expense offset arrangement (Note A)	—		—		(1	)
Total net expenses	462		484		4,653
Net investment income (loss)	$2,100		$3,210		$35,416

Realized and Unrealized Gain (Loss) on Investments (Note A)

Net realized gain (loss) on:

Sales of investment securities of unaffiliated issuers			1,011				1,135				32,217
Financial futures contracts			149				—				—

Change in net unrealized appreciation (depreciation) in value of:

Unaffiliated investment securities	(899	)	290	(12,725	)
Financial futures contracts	38		—	—
Net gain (loss) on investments	299		1,425	19,492
Increase (Decrease) in Net Assets From Operations	$2,399		$4,635	$54,908

See Notes to Financial Statements

MUNICIPAL INTERMEDIATE BOND FUND		SHORT DURATION BOND FUND		STRATEGIC INCOME FUND
For the Six Months Ended April 30, 2011		For the Six Months Ended April 30, 2011		For the Six Months Ended April 30, 2011

(221	)	(206	)	(351	)
—		—		—
—		—		—
361		230		2,294
$1,813		$617		$7,134


103		(673	)	2,795
—		—		415


(3,042	)	552		(2,159	)
—		—		99
(2,939	)	(121	)	1,150
$(1,126	)	$496		$8,284

Statements of Changes in Net Assets

Neuberger Berman Income Funds

(000's omitted)

	CORE BOND FUND			FLOATING RATE INCOME FUND
	Six Months Ended April 30, 2011 (Unaudited)		Year Ended October 31, 2010	Six Months Ended April 30, 2011 (Unaudited)	Period from December 29, 2009 (Commencement of Operations) to October 31, 2010
Increase (Decrease) in Net Assets:
From Operations (Note A):
Net investment income (loss)	$2,100		$4,101	$3,210	$2,042
Net realized gain (loss) on investments	1,160		4,265	1,135	180
Change in net unrealized appreciation (depreciation) of investments	(861	)	6,046	290	1,426
Net increase (decrease) in net assets resulting from operations	2,399		14,412	4,635	3,648

Distributions to Shareholders From (Note A):

Net investment income:
Investor Class	(197	)	(534	)	—		—
Institutional Class	(1,721	)	(3,103	)	(2,845	)	(1,792	)
Trust Class	—		—		—		—
Class A	(261	)	(533	)	(426	)	(236	)
Class C	(22	)	(40	)	(40	)	(16	)
Class R3	—		—		—		—

Net realized gain on investments:

Investor Class	(452	)	(112	)	—		—
Institutional Class	(3,055	)	(375	)	(146	)	—
Trust Class	—		—		—		—
Class A	(557	)	(82	)	(34	)	—
Class C	(72	)	(6	)	(2	)	—
Class R3	—		—		—		—
Total distributions to shareholders	(6,337	)	(4,785	)	(3,493	)	(2,044	)

From Fund Share Transactions (Note D):

Proceeds from shares sold:

Investor Class	1,813	5,301	—	—
Institutional Class	72,360	77,785	110,215	71,397
Trust Class	—	—	—	—
Class A	2,131	11,288	22,747	22,594
Class C	497	2,330	4,941	993
Class R3	—	—	—	—

Proceeds from reinvestment of dividends and

distributions:

Investor Class	637	566	—	—
Institutional Class	4,002	2,377	2,836	1,772
Trust Class	—	—	—	—
Class A	708	522	389	222
Class C	26	12	26	15
Class R3	—	—	—	—

Payments for shares redeemed:

Investor Class	(5,271	)	(13,317	)	—		—
Institutional Class	(22,442	)	(25,994	)	(14,115	)	(3,921	)
Trust Class	—		—		—		—
Class A	(3,698	)	(8,290	)	(14,724	)	(10,244	)
Class C	(960	)	(411	)	(237	)	(300	)
Class R3	—		—		—		—
Net increase (decrease) from Fund share transactions	49,803		52,169		112,078		82,528
Net Increase (Decrease) in Net Assets	45,865		61,796		113,220		84,132

Net Assets:

Beginning of period	165,275		103,479		84,132		—
End of period	$211,140		$165,275		$197,352		$84,132
Undistributed net investment income (loss) at end of period	$—		$—		$—		$—
Distributions in excess of net investment income at end of period	$(210	)	$(109	)	$(104	)	$(3	)

See Notes to Financial Statements

HIGH INCOME BOND FUND				MUNICIPAL INTERMEDIATE BOND FUND				SHORT DURATION BOND FUND
Six Months Ended April 30, 2011 (Unaudited)		Year Ended October 31, 2010		Six Months Ended April 30, 2011 (Unaudited)		Year Ended October 31, 2010		Six Months Ended April 30, 2011 (Unaudited)		Year Ended October 31, 2010

$35,416		$53,424		$1,813		$3,452		$617		$1,424
32,217		46,242		103		846		(673	)	(302	)
(12,725	)	19,561		(3,042	)	2,747		552		3,348
54,908		119,227		(1,126	)	7,045		496		4,470


(13,174	)	(34,110	)	(1,769	)	(3,450	)	(752	)	(2,012	)
(11,143	)	(14,672	)	(40	)	(1	)	(117	)	(0	)
—		—		—		—		(112	)	(303	)
(10,301	)	(6,353	)	(3	)	(1	)	(3	)	(1	)
(968	)	(756	)	(1	)	(0	)	(3	)	(0	)
(43	)	(18	)	—		—		—		—

(2,737	)	—		(510	)	—		—		—
(1,959	)	—		(1	)	—		—		—
—		—		—		—		—		—
(2,165	)	—		(1	)	—		—		—
(217	)	—		(0	)	—		—		—
(6	)	—		—		—		—		—
(42,713	)	(55,909	)	(2,325	)	(3,452	)	(987	)	(2,316	)


45,175		125,230		13,323		48,490		1,952		16,238
162,598		220,011		6,393		64		13,345		30
—		—		—		—		711		3,180
118,302		273,774		206		158		373		50
14,924		22,494		100		64		408		30
2,299		451		—		—		—		—

14,967		32,109		2,136		3,207		703		1,844
9,510		7,404		28		—		115		—
—		—		—		—		106		284
11,208		5,735		3		—		3		—
598		284		1		—		2		1
20		10		—		—		—		—

(48,946	)	(250,124	)	(25,311	)	(28,773	)	(12,287	)	(16,495	)
(55,149	)	(64,330	)	(905	)	—		(312	)	—
—		—		—		—		(3,332	)	(2,513	)
(87,235	)	(37,637	)	(293	)	—		(380	)	—
(2,865	)	(1,113	)	—		—		(295	)	—
(398	)	(109	)	—		—		—		—
185,008		334,189		(4,319	)	23,210		1,112		2,649
197,203		397,507		(7,770	)	26,803		621		4,803
933,177		535,670		119,136		92,333		65,590		60,787
$1,130,380		$933,177		$111,366		$119,136		$66,211		$65,590
$331		$544		$—		$—		$—		$203
$—		$—		$—		$—		$(167	)	$—

Statements of Changes in Net Assets (cont'd)

Neuberger Berman Income Funds (cont'd)

(000's omitted)

	STRATEGIC INCOME FUND
	Six Months Ended April 30, 2011 (Unaudited)			Year Ended October 31, 2010
Increase (Decrease) in Net Assets:
From Operations (Note A):
Net investment income (loss)		$7,134			$10,359
Net realized gain (loss) on investments		3,210			6,781
Change in net unrealized appreciation (depreciation) of investments		(2,060	)		12,497
Net increase (decrease) in net assets resulting from operations		8,284			29,637
Distributions to Shareholders From (Note A):
Net investment income:
Investor Class		—			—
Institutional Class		(2,818	)		(3,651	)
Trust Class		(351	)		(514	)
Class A		(3,005	)		(4,179	)
Class C		(1,584	)		(2,422	)
Class R3		—			—
Net realized gain on investments:
Investor Class		—			—
Institutional Class		(2,080	)		(646	)
Trust Class		(291	)		(97	)
Class A		(2,545	)		(744	)
Class C		(1,658	)		(534	)
Class R3		—			—
Total distributions to shareholders		(14,332	)		(12,787	)
From Fund Share Transactions (Note D):
Proceeds from shares sold:
Investor Class		—			—
Institutional Class		68,169			111,374
Trust Class		6,283			9,774
Class A		56,688			110,619
Class C		17,286			57,032
Class R3		—			—
Proceeds from reinvestment of dividends and distributions:
Investor Class		—			—
Institutional Class		2,594			2,032
Trust Class		617			600
Class A		4,571			3,887
Class C		1,546			1,206
Class R3		—			—
Payments for shares redeemed:
Investor Class		—			—
Institutional Class		(37,326	)		(18,534	)
Trust Class		(5,190	)		(1,519	)
Class A		(41,303	)		(46,275	)
Class C		(10,936	)		(5,567	)
Class R3		—			—
Net increase (decrease) from Fund share transactions		62,999			224,629
Net Increase (Decrease) in Net Assets		56,951			241,479
Net Assets:
Beginning of period		371,222			129,743
End of period		$428,173			$371,222
Undistributed net investment income (loss) at end of period		$—			$305
Distributions in excess of net investment income at end of period		$(319	)		$—

See Notes to Financial Statements

Notes to Financial Statements Income Funds (Unaudited)

Note A—Summary of Significant Accounting Policies:

1	General: The Funds are separate operating series of Neuberger Berman Income Funds, (the "Trust"), a Delaware statutory trust organized pursuant to an Amended and Restated Trust Instrument dated June 24, 2009. The Trust is registered as a diversified, open-end management investment company under the Investment Company Act of 1940, as amended (the "1940 Act"), and its shares are registered under the Securities Act of 1933, as amended (the "1933 Act"). Four Funds offer Investor Class shares, six offer Institutional Class shares, two offer Trust Class shares, six offer Class A shares, six offer Class C shares and one offers Class R3 shares. The Board may establish additional series or classes of shares without the approval of shareholders.

	The assets of each Fund belong only to that Fund, and the liabilities of each Fund are borne solely by that Fund and no other.

	The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires Management to make estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.

2	Portfolio valuation: Investment securities are valued as indicated in the notes following the Funds' Schedule of Investments.

3	Foreign currency translation: Core Bond, Floating Rate Income, High Income, Short Duration and Strategic Income may invest in foreign securities denominated in foreign currencies. The accounting records of the Funds are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars using the exchange rate as of 4:00 p.m., Eastern time, 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. Net unrealized foreign currency gain (loss), if any, arises from changes in the value of assets and liabilities, other than investments in securities, as a result of changes in exchange rates and is stated separately in the Statements of Operations.

4	Securities transactions and investment income: Securities transactions are recorded on trade date for financial reporting purposes. Dividend income is recorded on the ex-dividend date or, for certain foreign dividends, as soon as the Fund becomes aware of the dividends. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, including accretion of discount (adjusted for original issue discount, where applicable) and amortization of premium, where applicable, is recorded on the accrual basis. Realized gains and losses from securities transactions (for each Fund) and foreign currency transactions (for Core Bond, Floating Rate Income, High Income, Short Duration and Strategic Income), if any, are recorded on the basis of identified cost and stated separately in the Statements of Operations. Included in net realized gain (loss) on investments are proceeds from the settlements of class action litigation in which Core Bond and Strategic Income participated as class members. The amounts of such proceeds for the six months ended April 30, 2011 were $7,359 and $2,635 for Core Bond and Strategic Income, respectively.

5	Income tax information: Each Fund is treated as a separate entity for U.S. federal income tax purposes. It is the policy of each Fund to continue to qualify as a regulated investment company by complying with the requirements of the U.S. Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its earnings to its shareholders. To the extent a Fund distributes substantially all of its earnings to shareholders, no federal income or excise tax provision is required.

	The Funds have adopted the provisions of ASC 740 "Income Taxes" ("ASC 740"). ASC 740 sets forth a minimum threshold for financial statement recognition of a tax position taken, or expected to be taken, in a tax return. The Funds recognize interest and penalties, if any, related to unrecognized tax positions as an income tax expense in the Statements of Operations. The Funds are subject to examination by U.S. federal and state tax authorities for returns

	filed for the prior three fiscal years 2007 - 2009. As of April 30, 2011, the Funds did not have any unrecognized tax positions.

	Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments of income and gains on various investment securities held by each Fund, timing differences and differing characterization of distributions made by each Fund as a whole. The Funds may also utilize earnings and profits distributed to shareholders on redemption of their shares as a part of the dividends paid deduction for income tax purposes.

	As determined on October 31, 2010, permanent differences resulting primarily from different book and tax accounting for amortization of bond premium, paydown gains and losses, non-deductible 12b-1 fees and contingent payment debt instrument income adjustments were reclassified at fiscal year-end. These reclassifications had no effect on net income, net asset value ("NAV") or NAV per share of each Fund.

	The tax character of distributions paid during the years ended October 31, 2010 and October 31, 2009 was as follows:

	Distributions Paid From:
	Taxable Income					Tax-Exempt Income					Long-Term Capital Gain					Return of Capital					Total
	2010			2009		2010			2009		2010			2009		2010			2009		2010			2009
Core Bond		$4,784,336			$3,212,281		$—			$—	$	—		$	—	$	—		$	—		$4,784,336			$3,212,281
Floating Rate Income		2,044,059	(1)		—		—	(1)		—		—	(1)		—		—	(1)		—		2,044,059	(1)		—
High Income		55,908,863			29,230,047		—			—		—			—		—			—		55,908,863			29,230,047
Municipal Intermediate Bond		798			16,815		3,450,922			1,421,035		—			—		—			—		3,451,720			1,437,850
Short Duration		2,315,688			3,087,008		—			—		—			—		—			—		2,315,688			3,087,008
Strategic Income		12,787,114			1,998,867		—			—		—			—		—			—		12,787,114			1,998,867

	(1)	Period from December 29, 2009 (Commencement of Operations) to October 31, 2010.
	As of October 31, 2010, the components of distributable earnings (accumulated losses) on a U.S. federal income tax basis were as follows:

	Undistributed Ordinary Income		Undistributed Tax-Exempt Income		Undistributed Long-Term Gain		Unrealized Appreciation(Depreciation)			Loss Carryforwards and Deferrals			Total
Core Bond		$3,851,677		$—		$282,709		$5,161,466			$—			$9,295,852
Floating Rate Income		292,799		—		—		1,407,118			—			1,699,917
High Income		1,393,997		—		7,075,803		61,512,727			—			69,982,527
Municipal Intermediate Bond		24,294		20,192		486,102		3,290,900			—			3,821,488
Short Duration		212,506		—		—		(3,527,187	)		(17,445,334	)		(20,760,015	)
Strategic Income		6,598,510		—		727,286		18,444,290			—			25,770,086

The differences between book basis and tax basis distributable earnings are attributable primarily to timing differences of distribution payments, delayed settlement compensation on bank loans, timing differences of wash sales, mark to market on certain futures contract transactions, organization expenses, capital loss carryforwards and amortization of bond premium.

To the extent each Fund's net realized capital gains, if any, can be offset by capital loss carryforwards, it is the policy of each Fund not to distribute such gains. As determined on October 31, 2010, the following Funds had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows:

	Expiring in:
	2011		2012		2013		2014		2015		2016		2017		2018
Short Duration	$	—	$	2,468,731	$	3,168,736	$	2,244,689	$	643,625	$	—	$	8,069,282	$	850,271

	During the year ended October 31, 2010, High Income and Municipal Intermediate Bond utilized capital loss carryforwards of $39,249,160 and $335,979, respectively.

6	Distributions to shareholders: Each Fund earns income, net of expenses, daily on its investments. Ordinarily, distributions from net investment income are declared on each business day and paid monthly, and distributions from net realized capital gains, if any, are generally distributed once a year (usually in December). Distributions to shareholders are recorded on the ex-date.

7	Expense allocation: Certain expenses are applicable to multiple funds. Expenses directly attributable to a Fund are charged to that Fund. Expenses of the Trust that are not directly attributable to a particular series of the Trust (e.g., a Fund) are allocated among the series of the Trust, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the series can otherwise be made fairly. Expenses borne by the complex of related investment companies, which includes open-end and closed-end investment companies for which Management serves as investment manager, that are not directly attributable to a particular investment company in the complex (e.g., the Trust) or series thereof are allocated among the investment companies in the complex or series thereof, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the investment companies in the complex or series thereof can otherwise be made fairly. Each Fund's expenses (other than those specific to each class) are allocated proportionally each day between the classes based upon the relative net assets of each class.

8	Dollar rolls: Core Bond, Floating Rate Income, High Income, Short Duration, and Strategic Income may enter into dollar roll transactions with respect to mortgage-backed securities. In a dollar roll transaction, a Fund sells securities for delivery in the current month and simultaneously agrees to repurchase substantially similar (i.e., same type and coupon) securities on a specified future date from the same party. During the period before this repurchase, a Fund forgoes principal and interest payments on the securities. A Fund is compensated by the difference between the current sales price and the forward price for the future purchase (often referred to as the "drop"), as well as by the interest earned on the cash proceeds of the initial sale. Dollar rolls may increase fluctuations in a Fund's net asset value and may be viewed as a form of leverage. There is a risk that the counterparty will be unable or unwilling to complete the transaction as scheduled, which may result in losses to a Fund.

9	When-Issued/Delayed Delivery Securities: Each Fund may purchase securities with delivery or payment to occur at a later date beyond the normal settlement period. At the time a Fund enters into a commitment to purchase a security, the transaction is recorded and the value of the security is reflected in the net asset value. The price of such security and the date when the security will be delivered and paid for are fixed at the time the transaction is negotiated. The value of the security may vary with market fluctuations. No interest accrues to a Fund until payment takes place. At the time a Fund enters into this type of transaction it is required to segregate cash or other liquid assets at least equal to the amount of the commitment. When-issued and delayed delivery transactions can have a leverage-like effect on a Fund, which can increase fluctuations in the Fund's share price. Certain risks may arise upon entering into when-issued or delayed delivery securities from the potential inability of counterparties to meet the terms of their contracts or if the issuer does not issue the securities due to political, economic, or other factors. Additionally, losses may arise due to changes in the value of the underlying securities.

10	Foreign taxes: Foreign taxes withheld represent amounts withheld by foreign tax authorities, net of refunds recoverable.

11	Investments in foreign securities: Investing in foreign securities may involve certain sovereign and other risks, in addition to the credit and market risks normally associated with domestic securities. These additional risks include the possibility of adverse political and economic developments (including political instability, nationalization, expropriation, or confiscatory taxation) and the potentially adverse effects of unavailability of public information regarding issuers, less governmental supervision and regulation of financial markets, reduced liquidity of certain financial markets, and the lack of uniform accounting, auditing, and financial reporting standards or the application of standards that are different or less stringent than those applied in the United States. Foreign securities also may experience greater price volatility, higher rates of inflation, and delays in settlement.

12	Derivative instruments: During the six months ended April 30, 2011, certain of the Funds' use of derivatives, as described below, was limited to financial futures contracts. The Funds have adopted the provisions of ASC 815 "Derivatives and Hedging" ("ASC 815"). The disclosure requirements of ASC 815 distinguish between derivatives that qualify for hedge accounting and those that do not. Because investment companies value their derivatives at fair value and recognize changes in fair value through the Statements of Operations, they do not qualify for hedge accounting. Accordingly, even though a Fund's investments in derivatives may represent economic hedges, they are considered non-hedge transactions for purposes of this disclosure.

	Financial futures contracts: At the time a Fund enters into a financial futures contract, it is required to deposit with the futures commission merchant a specified amount of cash or liquid securities, known as "initial margin," which is a percentage of the value of the financial futures contract being traded that is set by the exchange upon which the futures contract is 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, or as needed for Core Bond and Strategic Income, as the market price of the financial futures contract fluctuates. Daily variation margin adjustments, arising from this "mark to market," are recorded by the Funds 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, a Fund recognizes a gain or loss. Risks of entering into futures contracts include the possibility there may be an illiquid market, possibly at a time of rapidly declining prices, and/or a change in the value of the contract may not correlate with changes in the value of the underlying securities. Futures have minimal counterparty risk to a Fund because the exchange's clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.

	For U.S. federal income tax purposes, the futures transactions undertaken by a Fund may cause that Fund to recognize gains or losses from marking contracts 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 Fund. Also, a Fund's losses on transactions involving futures contracts may be deferred rather than being taken into account currently in calculating such Fund's taxable income.

	During the six months ended April 30, 2011, Floating Rate Income, High Income, Municipal Intermediate Bond and Short Duration did not enter into any financial futures contracts. During the six months ended April 30, 2011, Core Bond and Strategic Income entered into financial futures contracts for economic hedging purposes, including as a maturity or duration management device. At April 30, 2011, open positions in financial futures contracts were:

Fund	Expiration	Open Contracts	Position	Unrealized Appreciation (Depreciation)
Core Bond	June 2011	40 U.S. Treasury Notes, 2 Year	Short		$(31,875	)
Core Bond	June 2011	8 U.S. Treasury Notes, 10 Year	Short		$(18,875	)
Strategic Income	June 2011	102 U.S. Treasury Notes, 2 Year	Short		$(82,000	)

During the six months ended April 30, 2011, the average notional amount of financial futures contracts was:

Core Bond		$	(6,800,000)
Strategic Income			(16,133,333)

	At April 30, 2011, the Funds had deposited the following in segregated accounts to cover margin requirements on open futures contracts:

	Core Bond: $154,349

	Strategic Income: $343,233

	At April 30, 2011, the Funds had the following derivatives (which did not qualify as hedging instruments under ASC 815), grouped by primary risk exposure:

Liability Derivatives
	Interest Rate Risk			Statements of Assets and Liabilities Location
Core Bond
Futures Contracts		$(50,750	)
Total Value		$(50,750	)
				Net depreciation on futures contracts(1)
Strategic Income
Futures Contracts		$(82,000	)
Total Value		$(82,000	)

(1)

Reflected in the Statements of Assets and Liabilities; included under the caption "Net unrealized appreciation (depreciation) in value of investments," and is the cumulative appreciation (depreciation) of futures contracts as of April 30, 2011 as shown in "Futures Contracts" above. The outstanding variation margin as of April 30, 2011, if any, is reflected in the Statements of Assets and Liabilities under the caption "Net appreciation/depreciation on futures contracts."

The impact of the use of these derivative instruments on the Statements of Operations during the six months ended April 30, 2011, was as follows:

Realized Gain (Loss)

	Interest Rate Risk		Statements of Operations Location
Core Bond
Futures Contracts Total Realized Gain (Loss) Strategic Income Futures Contracts Total Realized Gain (Loss)		$148,675 $148,675 $415,078 $415,078	Net realized gain (loss) on financial futures contracts

Change in Appreciation (Depreciation)
	Interest Rate Risk		Statements of Operations Location
Core Bond
Futures Contracts Total Change in Appreciation (Depreciation) Strategic Income Futures Contracts Total Change in Appreciation (Depreciation)		$38,477 $38,477 $99,265 $99,265	Change in net unrealized appreciation (depreciation) in value of financial futures contracts

	Management has concluded that the Funds, except Core Bond and Strategic Income, did not hold any derivative instruments during the six months ended April 30, 2011 that require additional disclosures pursuant to ASC 815.

13	Indemnifications: Like many other companies, the Trust's organizational documents provide that its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, both in some of its principal service contracts and in the normal course of its business, the Trust enters into contracts that provide indemnifications to other parties for certain types of losses or liabilities. The Trust's maximum exposure under these arrangements is unknown as this could involve future claims against the Trust.

14	Other: All net investment income and realized and unrealized capital gains and losses of each Fund are allocated, on the basis of relative net assets, pro rata among its respective classes.

15	Expense offset arrangement: Each Fund has an expense offset arrangement in connection with its custodian contract. For the six months ended April 30, 2011, the impact of this arrangement was a reduction of expenses of $99, $246, $628, $219, $32 and $254 for Core Bond, Floating Rate Income, High Income, Municipal Intermediate Bond, Short Duration, and Strategic Income, respectively.

Note B—Management Fees, Administration Fees, Distribution Arrangements, and Other Transactions with Affiliates:

	Each Fund retains Management as its investment manager under a Management Agreement. For such investment management services, each Fund (except Floating Rate Income, High Income, and Strategic Income) pays Management a fee at the annual rate of 0.25% of the first $500 million of that Fund'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. Floating Rate Income, High Income, and Strategic Income each pay Management a fee for investment management services at the annual rates of 0.50%, 0.48%, and 0.55%, respectively, of its average daily net assets. Management has voluntarily agreed to waive its management fee in the amount of 0.12% (0.06% as of May 1, 2011) of the average daily net assets of Core Bond. Management may, at its sole discretion, modify or terminate this voluntary waiver without notice to the Fund. For the six months ended April 30, 2011, such waived fees amounted to $98,463 for Core Bond.

	Each Fund retains Management as its administrator under an Administration Agreement. Each Fund pays Management an administration fee at the annual rate of 0.06% of its average daily net assets under this agreement. In addition, Investor Class of each Fund that offers that class pays Management an administration fee at the annual rate of 0.21% of its average daily net assets, Institutional Class of each Fund that offers that class pays Management an administration fee at the annual rate of 0.09% of its average daily net assets, Trust Class of each of Short Duration and Strategic Income pays Management an administration fee at the annual rate of 0.44% and 0.34%, respectively, of its average daily net assets, Class A and Class C of each Fund that offers that class pays Management an administration fee at the annual rate of 0.21% of its average daily net assets, and Class R3 of each Fund that offers that class pays Management an administration fee at the annual rate of 0.21% of its average daily net assets

	under this agreement. Additionally, Management retains State Street Bank and Trust Company ("State Street") as its sub-administrator under a Sub-Administration Agreement. Management pays State Street a fee for all services received under the agreement.

	Management has contractually agreed to forgo current payment of fees and/or reimburse certain expenses of the Investor Class, Institutional Class, Trust Class, Class A, Class C and Class R3 of each Fund that offers those classes so that the total annual operating expenses of those classes do not exceed the expense limitations as detailed in the following table. These undertakings apply to a Fund's direct expenses and do not cover interest, taxes, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses, if any; consequently, net expenses may exceed the contractual expense limitations. Each Fund has agreed that each of its respective classes will repay Management for fees and expenses forgone or reimbursed for that class provided that repayment does not cause the class' annual operating expenses to exceed its contractual expense limitation. Any such repayment must be made within three years after the year in which Management incurred the expense.

	During the six months ended April 30, 2011, the Institutional Class of High Income, Class A of High Income and Class R3 of High Income reimbursed Management $34,147, $14,286 and $46, respectively, under its contractual expense limitation.

	At April 30, 2011, contingent liabilities to Management under the contractual expense limitations were as follows:

					Expenses Deferred in Fiscal Period Ending October 31,
					2008			2009			2010			2011
					Subject to Repayment until October 31,
Class	Contractual Expense Limitation(1)			Expiration	2011			2012			2013			2014
Core Bond Investor Class		0.85	%	10/31/21		$62,629			$90,020			$25,560			$17,472
Core Bond Institutional Class		0.45	%	10/31/21		60,609			81,405			54,638			68,547
Core Bond Class A		0.85	%	10/31/21		1,700	(2)		14,617			6,716			9,126
Core Bond Class C		1.60	%	10/31/21		1,695	(2)		3,790			957			1,311
Floating Rate Income Institutional Class		0.70	%	10/31/14		—			—			410,835	(6)		158,368
Floating Rate Income Class A		1.07	%	10/31/14		—			—			57,005	(5)		26,863
Floating Rate Income Class C		1.82	%	10/31/14		—			—			6,128	(6)		2,521
High Income Investor Class		1.00	%	10/31/14		—			—			—			—
High Income Institutional Class		0.75	%	10/31/14		—			—	(4)		17,158			—
High Income Class A		1.12	%	10/31/14		—			—	(4)		24,332			—
High Income Class C		1.87	%	10/31/14		—			693	(4)		6,499			2,432
High Income Class R3		1.37	%	10/31/14		—			989	(4)		800			—
Municipal Intermediate Bond Investor Class		0.65	%	10/31/14		170,458			213,114			402,491			215,407
Municipal Intermediate Bond Institutional Class		0.50	%	10/31/14		—			—			3,630	(7)		4,629
Municipal Intermediate Bond Class A		0.87	%	10/31/14		—			—			3,660	(7)		398
Municipal Intermediate Bond Class C		1.62	%	10/31/14		—			—			3,637	(7)		187
Short Duration Investor Class		0.70	%	10/31/14		202,732			247,213			322,782			154,796
Short Duration Institutional Class		0.50	%	10/31/14		—			—			3,653	(7)		23,891
Short Duration Trust Class		0.80	%	10/31/14		52,852			62,762			59,964			26,163

					Expenses Deferred in Fiscal Period Ending October 31,
					2008			2009		2010			2011
					Subject to Repayment until October 31,
Class	Contractual Expense Limitation(1)			Expiration	2011			2012		2013			2014
Short Duration Class A		0.87	%	10/31/14		$—			$—		$3,698	(7)		$631
Short Duration Class C		1.62	%	10/31/14		—			—		3,646	(7)		784
Strategic Income Institutional Class		0.75	%(3)	10/31/21		372,887			148,644		153,882			104,458
Strategic Income Trust Class		1.10	%	10/31/14		24,251			50,305		28,331			14,759
Strategic Income Class A		1.15	%	10/31/21		6,744	(2)		198,132		196,672			135,365
Strategic Income Class C		1.85	%	10/31/21		6,026	(2)		78,520		157,265			95,948

(1)	Expense limitation per annum of the respective class' average daily net assets.

(2)	Period from December 20, 2007 to October 31, 2008.
(3)	Prior to February 28, 2008, the expense limitation was .85%.
(4)	Period from May 27, 2009 to October 31, 2009.
(5)	Period from December 29, 2009 to October 31, 2010.
(6)	Period from December 30, 2009 to October 31, 2010.
(7)	Period from June 21, 2010 to October 31, 2010.
	Management and Neuberger Berman Fixed Income LLC ("NBFI") are indirect subsidiaries of Neuberger Berman Group LLC ("NBG," and together with its consolidated subsidiaries "NB Group"). The voting equity of NBG is owned by NBSH Acquisition, LLC ("NBSH") and Lehman Brothers Holdings Inc. ("LBHI"). NBSH, which is owned by portfolio managers, members of the NB Group management team and certain of NB Group's key employees and senior professionals, owns approximately 52% of the voting equity of NBG and LBHI, which is a debtor in possession under chapter 11 of the U.S. Bankruptcy Code, owns the remaining 48% of the voting equity. LBHI's bankruptcy proceedings have had no material impact on the operations of the Funds. Management and NBFI continue to operate in the ordinary course of business as the investment manager and sub-adviser, respectively, of the Funds.
	NBFI, as the sub-adviser to High Income, Municipal Intermediate Bond, Short Duration, and Strategic Income, is retained by Management to furnish it with investment recommendations and research information without added cost to each Fund it sub-advises. NBFI, as sub-adviser to Core Bond and Floating Rate Income, is retained by Management to provide day-to-day investment management services and receives a monthly fee paid by Management. As investment manager, Management is responsible for overseeing the investment activities of NBFI. Several individuals who are officers and/or Trustees of the Trust are also employees of NBFI, Neuberger Berman LLC ("Neuberger") and/or Management.
	Each Fund also has a distribution agreement with Management with respect to each class of shares. Management acts as agent in arranging for the sale of class shares without sales commission or other compensation, except as described below for Class A and Class C shares, and bears advertising and promotion expenses. However, Management receives fees from Core Bond's Investor Class, and Strategic Income's Trust Class and each Fund's Class A and Class C under their distribution plans (each a "Plan", collectively, the "Plans") pursuant to Rule 12b-1 under the 1940 Act.
	The Plans provide that, as compensation for administrative and other services provided to these classes, Management's activities and expenses related to the sale and distribution of these classes of shares, and ongoing services provided to investors in these classes, Management receives from each of these classes a fee at the annual rate of 0.25% of Core Bond Investor Class', Core Bond Class A's, Floating Rate Income Class A's, High Income Class A's,

	Municipal Intermediate Bond Class A's, Short Duration Class A's and Strategic Income Class A's average daily net assets, 0.10% of Strategic Income Trust Class' average daily net assets; 0.50% of High Income Class R3's average daily net assets; and 1.00% of Core Bond Class C's, Floating Rate Income Class C's, High Income Class C's, Municipal Intermediate Bond Class C's, Short Duration Class C's and Strategic Income Class C's average daily net assets. Management receives this amount to provide distribution and shareholder servicing for these classes and pays a portion of it to institutions that provide such services. Those institutions may use the payments for, among other purposes, compensating employees engaged in sales and/or shareholder servicing. The amount of fees paid by each class during any year may be more or less than the cost of distribution and other services provided to that class. FINRA rules limit the amount of annual distribution fees that may be paid by a mutual fund and impose a ceiling on the cumulative distribution fees paid. The Trust's Plans comply with those rules.
	Class A shares of each Fund are generally sold with an initial sales charge of up to 4.25% and no contingent deferred sales charge ("CDSC"), except that a CDSC of 1.00% applies to certain redemptions made within 18 months following purchases of $1 million or more without an initial sales charge. Class C shares are sold with no initial sales charge and a 1.00% CDSC if shares are sold within one year after purchase.
	For the six months ended April 30, 2011, Management, acting as underwriter and broker-dealer, received net commissions from the sale of Class A and Class C shares and CDSCs from the redemptions of Class A and Class C shares as follows:

	Underwriter				Broker-Dealer
	Net Commissions		CDSC		Net Commissions		CDSC
Core Bond Class A		$160		$—		$—		$—
Core Bond Class C		—		509		—		—
Floating Rate Income Class A		5,949		—		—		—
Floating Rate Income Class C		—		199		—		—
High Income Class A		17,789		—		—		—
High Income Class C		—		7,211		—		—
Municipal Intermediate Bond Class A		89		—		—		—
Municipal Intermediate Bond Class C		—		—		—		—
Short Duration Class A		—		—		—		—
Short Duration Class C		—		2,500		—		—
Strategic Income Class A		9,160		30,430		—		—
Strategic Income Class C		—		18,517		—		—

Note C—Securities Transactions:

Cost of purchases and proceeds of sales and maturities of long-term securities (excluding short-term securities and financial futures contracts) for the six months ended April 30, 2011, were as follows:

	Purchases of U.S. Government and Agency Obligations		Purchases excluding U.S. Government and Agency Obligations		Sales and Maturities of U.S. Government and Agency Obligations		Sales and Maturities excluding U.S. Government and Agency Obligations
Core Bond		$287,775,542		$55,147,938		$252,715,592		$43,092,244
Floating Rate Income		—		207,590,767		—		102,140,015
High Income		—		788,313,850		—		600,352,019
Municipal Intermediate Bond		—		36,525,097		—		40,896,905
Short Duration		20,865,396		16,938,912		28,545,801		6,734,690
Strategic Income		422,383,839		246,907,055		386,436,986		193,954,534

Note D—Fund Share Transactions:

Share activity for the six months ended April 30, 2011 and for the year ended October 31, 2010 was as follows:

	For the Six Months Ended April 30, 2011										For the Year Ended October 31, 2010
(000's omitted)	Shares Sold		Shares Issued on Reinvestment of Dividends and Distributions		Shares Redeemed			Total			Shares Sold		Shares Issued on Reinvestment of Dividends and Distributions		Shares Redeemed			Total
Core Bond:
Investor Class		171		61		(502	)		(270	)		511		54		(1,301	)		(736	)
Institutional Class		6,872		382		(2,127	)		5,127			7,486		227		(2,450	)		5,263
Class A		203		67		(352	)		(82	)		1,083		50		(800	)		333
Class C		47		3		(92	)		(42	)		225		1		(39	)		187
Floating Rate Income:
Institutional Class		10,762		277		(1,378	)		9,661			7,149		177		(390	)		6,936	(2)
Class A		2,223		38		(1,433	)		828			2,254		22		(1,011	)		1,265	(1)
Class C		482		2		(23	)		461			100		2		(30	)		72	(2)
High Income:
Investor Class		4,764		1,587		(5,172	)		1,179			13,963		3,577		(27,976	)		(10,436	)
Institutional Class		17,080		1,006		(5,832	)		12,254			24,328		816		(7,111	)		18,033
Class A		12,479		1,188		(9,204	)		4,463			29,897		629		(4,092	)		26,434
Class C		1,572		63		(301	)		1,334			2,477		31		(122	)		2,386
Class R3		243		2		(42	)		203			51		1		(12	)		40
Municipal Intermediate Bond:
Investor Class		1,198		191		(2,272	)		(883	)		4,241		280		(2,498	)		2,023
Institutional Class		578		3		(82	)		499			6		—		—			6	(3)
Class A		18		—		(26	)		(8	)		14		—		—			14	(3)
Class C		9		—		—			9			6		—		—			6	(3)
Short Duration:
Investor Class		243		87		(1,528	)		(1,198	)		2,041		232		(2,065	)		208
Institutional Class		1,659		14		(39	)		1,634			4		—		—			4	(3)
Trust Class		93		14		(435	)		(328	)		419		38		(331	)		126
Class A		49		—		(50	)		(1	)		7		—		—			7	(3)
Class C		53		—		(38	)		15			4		—		—			4	(3)
Strategic Income:
Institutional Class		6,223		238		(3,410	)		3,051			10,340		189		(1,714	)		8,815
Trust Class		575		57		(475	)		157			904		56		(142	)		818
Class A		5,164		419		(3,773	)		1,810			10,236		361		(4,322	)		6,275
Class C		1,575		142		(999	)		718			5,290		112		(513	)		4,889

	(1)	Period from December 29, 2009 (Commencement of Operations) to October 31, 2010.

	(2)	Period from December 30, 2009 (Commencement of Operations) to October 31, 2010.
	(3)	Period from June 21, 2010 (Commencement of Operations) to October 31, 2010.

Note E—Line of Credit:

	At April 30, 2011, Core Bond, Floating Rate Income, High Income, Short Duration and Strategic Income were participants in a single committed, unsecured $200,000,000 line of credit with State Street, to be used only for temporary or emergency purposes. Other investment companies managed by Management also participate in this line of credit on the same terms. Interest is charged on borrowings under this line of credit at the higher of (a) the Federal Funds Rate plus 1.25% per annum or (b) the Overnight LIBOR Rate plus 1.25% per annum. A commitment fee of 0.125% per annum of the available line of credit is charged, of which each participating Fund has agreed to pay its pro rata share, based on the ratio of its individual net assets to the net assets of all participants at the time the fee is due and payable. The fee is paid quarterly in arrears. Because several mutual funds participate, there is no assurance that an individual Fund will have access to all or any part of the $200,000,000 at any particular time. There were no loans outstanding pursuant to this line of credit at April 30, 2011. During the six months ended April 30, 2011, none of the Funds utilized this line of credit.
Note F—Unaudited Financial Information:
	The financial information included in this interim report is taken from the records of each Fund without audit by an independent registered public accounting firm. Annual reports contain audited financial statements.

Financial Highlights

The following tables include selected data for a share outstanding throughout each period and other performance information derived from the Financial Statements.

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)@		Net Gains or Losses on Securities (both realized and unrealized)			Total From Investment Operations			Dividends from Net Investment Income			Distributions from Net Realized Capital Gains			Tax Return of Capital		Total Distributions
Core Bond Fund
Investor Class
4/30/2011 (Unaudited)	$	10.86	$	0.12	$	0.00		$	0.12		$	(0.13	)	$	(0.27	)	$	—	$	(0.40	)
10/31/2010	$	10.19	$	0.28	$	0.72		$	1.00		$	(0.28	)	$	(0.05	)	$	—	$	(0.33	)
10/31/2009	$	8.64	$	0.40	$	1.55		$	1.95		$	(0.40	)	$	(0.00	)	$	—	$	(0.40	)
10/31/2008	$	9.76	$	0.39	$	(1.12	)	$	(0.73	)	$	(0.39	)	$	—		$	—	$	(0.39	)
10/31/2007	$	9.85	$	0.44	$	(0.09	)	$	0.35		$	(0.44	)	$	—		$	—	$	(0.44	)
10/31/2006	$	10.09	$	0.41	$	0.09		$	0.50		$	(0.43	)	$	(0.31	)	$	—	$	(0.74	)
Institutional Class
4/30/2011 (Unaudited)	$	10.88	$	0.14	$	0.00		$	0.14		$	(0.15	)	$	(0.27	)	$	—	$	(0.42	)
10/31/2010	$	10.21	$	0.32	$	0.73		$	1.05		$	(0.33	)	$	(0.05	)	$	—	$	(0.38	)
10/31/2009	$	8.65	$	0.43	$	1.57		$	2.00		$	(0.44	)	$	(0.00	)	$	—	$	(0.44	)
10/31/2008	$	9.77	$	0.43	$	(1.12	)	$	(0.69	)	$	(0.43	)	$	—		$	—	$	(0.43	)
10/31/2007	$	9.86	$	0.48	$	(0.09	)	$	0.39		$	(0.48	)	$	—		$	—	$	(0.48	)
10/31/2006	$	10.11	$	0.45	$	0.08		$	0.53		$	(0.47	)	$	(0.31	)	$	—	$	(0.78	)
Class A
4/30/2011 (Unaudited)	$	10.85	$	0.12	$	0.00		$	0.12		$	(0.13	)	$	(0.27	)	$	—	$	(0.40	)
10/31/2010	$	10.18	$	0.28	$	0.72		$	1.00		$	(0.28	)	$	(0.05	)	$	—	$	(0.33	)
10/31/2009	$	8.64	$	0.37	$	1.57		$	1.94		$	(0.40	)	$	(0.00	)	$	—	$	(0.40	)
Period from 12/20/2007^ to 10/31/2008	$	9.77	$	0.33	$	(1.13	)	$	(0.80	)	$	(0.33	)	$	—		$	—	$	(0.33	)
Class C
4/30/2011 (Unaudited)	$	10.86	$	0.08	$	(0.01	)	$	0.07		$	(0.09	)	$	(0.27	)	$	—	$	(0.36	)
10/31/2010	$	10.18	$	0.19	$	0.74		$	0.93		$	(0.20	)	$	(0.05	)	$	—	$	(0.25	)
10/31/2009	$	8.64	$	0.32	$	1.55		$	1.87		$	(0.33	)	$	(0.00	)	$	—	$	(0.33	)
Period from 12/20/2007^ to 10/31/2008	$	9.77	$	0.26	$	(1.12	)	$	(0.86	)	$	(0.27	)	$	—		$	—	$	(0.27	)
Floating Rate Income Fund
Institutional Class
4/30/2011 (Unaudited)	$	10.17	$	0.26	$	0.14		$	0.40		$	(0.28	)	$	(0.02	)	$	—	$	(0.30	)
Period from 12/30/2009^ to 10/31/2010	$	10.00	$	0.44	$	0.17		$	0.61		$	(0.44	)	$	—		$	—	$	(0.44	)

See Notes to Financial Highlights

100

Capital Contributions		Net Asset Value, End of Period		Total Return††			Net Assets, End of Period (in millions)		Ratio of Gross Expenses to Average Net Assets#			Ratio of Net Expenses to Average Net Assets			Ratio of Net Investment Income/ (Loss) to Average Net Assets			Portfolio Turnover Rate

$	—	$	10.58		1.16	%**	$	15.3		.85	%*		.85	%‡*		2.26	%*		182	%**
$	—	$	10.86		10.03	%	$	18.6		.85	%		.85	%‡		2.66	%		340	%
$	—	$	10.19		23.10	%	$	25.0		.86	%		.86	%‡		4.39	%		450	%
$	—	$	8.64		(7.72	)%	$	44.2		.85	%		.85	%‡		4.08	%		430	%
$	—	$	9.76		3.67	%	$	35.9		.85	%		.85	%‡		4.51	%		404	%
$	—	$	9.85		5.21	%	$	33.9		.86	%		.85	%‡		4.22	%		399	%

$	—	$	10.60		1.36	%**	$	171.5		.45	%*		.45	%‡*		2.67	%*		182	%**
$	—	$	10.88		10.45	%	$	120.3		.45	%		.45	%‡		3.02	%		340	%
$	—	$	10.21		23.70	%	$	59.1		.45	%		.45	%‡		4.60	%		450	%
$	—	$	8.65		(7.34	)%	$	32.1		.45	%		.45	%‡		4.48	%		430	%
$	—	$	9.77		4.08	%	$	47.2		.45	%		.45	%‡		4.91	%		404	%
$	—	$	9.86		5.52	%	$	44.5		.46	%		.45	%‡		4.60	%		399	%

$	—	$	10.57		1.16	%**	$	21.9		.85	%*		.85	%‡*		2.27	%*		182	%**
$	—	$	10.85		10.04	%	$	23.4		.85	%		.85	%‡		2.64	%		340	%
$	—	$	10.18		22.96	%	$	18.5		.85	%		.85	%‡		3.81	%		450	%
$	—	$	8.64		(8.37	)%**	$	0.1		.85	%*		.85	%‡*		4.01	%*		430	%^^

$	—	$	10.57		.69	%**	$	2.4		1.60	%*		1.60	%‡*		1.51	%*		182	%**
$	—	$	10.86		9.31	%	$	2.9		1.60	%		1.60	%‡		1.83	%		340	%
$	—	$	10.18		22.04	%	$	0.8		1.61	%		1.61	%‡		3.39	%		450	%
$	—	$	8.64		(8.98	)%**	$	0.1		1.60	%*		1.60	%‡*		3.24	%*		430	%^^

$	—	$	10.27		3.97	%**	$	170.4		.70	%*		.70	%‡*		5.17	%*		79	%**
$	—	$	10.17		6.24	%**	$	70.5		.70	%*		.70	%‡*		5.28	%*		112	%**

101

Financial Highlights (cont'd)

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)@		Net Gains or Losses on Securities (both realized and unrealized)			Total From Investment Operations			Dividends from Net Investment Income			Distributions from Net Realized Capital Gains			Tax Return of Capital		Total Distributions
Class A
4/30/2011 (Unaudited)	$	10.17	$	0.24	$	0.14		$	0.38		$	(0.26	)	$	(0.02	)	$	—	$	(0.28	)
Period from 12/29/2009^ to 10/31/2010	$	10.00	$	0.41	$	0.16		$	0.57		$	(0.40	)	$	—		$	—	$	(0.40	)
Class C
4/30/2011 (Unaudited)	$	10.17	$	0.19	$	0.15		$	0.34		$	(0.22	)	$	(0.02	)	$	—	$	(0.24	)
Period from 12/30/2009^ to 10/31/2010	$	10.00	$	0.35	$	0.18		$	0.53		$	(0.36	)	$	—		$	—	$	(0.36	)
High Income Bond Fund
Investor Class
4/30/2011 (Unaudited)	$	9.49	$	0.34	$	0.18		$	0.52		$	(0.34	)	$	(.07	)	$	—	$	(0.41	)
10/31/2010	$	8.66	$	0.76	$	0.87		$	1.63		$	(0.80	)	$	—		$	—	$	(0.80	)
10/31/2009	$	6.57	$	0.74	$	2.02		$	2.76		$	(0.67	)	$	—		$	—	$	(0.67	)
10/31/2008	$	9.00	$	0.66	$	(2.44	)	$	(1.78	)	$	(0.66	)	$	—		$	—	$	(0.66	)
10/31/2007	$	9.08	$	0.68	$	(0.08	)	$	0.60		$	(0.68	)	$	—		$	—	$	(0.68	)
10/31/2006	$	9.10	$	0.59	$	(0.02	)	$	0.57		$	(0.59	)	$	—		$	—	$	(0.59	)
Institutional Class
4/30/2011 (Unaudited)	$	9.50	$	0.34	$	0.19		$	0.53		$	(0.35	)	$	(.07	)	$	—	$	(0.42	)
10/31/2010	$	8.68	$	0.77	$	0.87		$	1.64		$	(0.82	)	$	—		$	—	$	(0.82	)
Period from 5/27/2009^ to 10/31/2009	$	7.51	$	0.36	$	1.14		$	1.50		$	(0.33	)	$	—		$	—	$	(0.33	)
Class A
4/30/2011 (Unaudited)	$	9.49	$	0.33	$	0.18		$	0.51		$	(0.33	)	$	(.07	)	$	—	$	(0.40	)
10/31/2010	$	8.66	$	0.70	$	0.91		$	1.61		$	(0.78	)	$	—		$	—	$	(0.78	)
Period from 5/27/2009^ to 10/31/2009	$	7.51	$	0.33	$	1.13		$	1.46		$	(0.31	)	$	—		$	—	$	(0.31	)
Class C
4/30/2011 (Unaudited)	$	9.50	$	0.29	$	0.18		$	0.47		$	(0.29	)	$	(.07	)	$	—	$	(0.36	)
10/31/2010	$	8.67	$	0.64	$	0.91		$	1.55		$	(0.72	)	$	—		$	—	$	(0.72	)
Period from 5/27/2009^ to 10/31/2009	$	7.51	$	0.30	$	1.14		$	1.44		$	(0.28	)	$	—		$	—	$	(0.28	)

See Notes to Financial Highlights

102

Capital Contributions		Net Asset Value, End of Period		Total Return††			Net Assets, End of Period (in millions)		Ratio of Gross Expenses to Average Net Assets#			Ratio of Net Expenses to Average Net Assets			Ratio of Net Investment Income/ (Loss) to Average Net Assets			Portfolio Turnover Rate

$	—	$	10.27		3.77	%**	$	21.5		1.07	%*		1.07	%‡*		4.82	%*		79	%**
$	—	$	10.17		5.85	%**	$	12.9		1.07	%*		1.07	%‡*		4.87	%*		112	%**

$	—	$	10.27		3.37	%**	$	5.5		1.82	%*		1.82	%‡*		3.72	%*		79	%**
$	—	$	10.17		5.39	%**	$	0.7		1.82	%*		1.82	%‡*		4.23	%*		112	%**

$	—	$	9.60		5.65	%**	$	379.0		.86	%*		.86	%*		7.20	%*		61	%**
$	—	$	9.49		19.71	%	$	363.6		.96	%		.96	%§		8.50	%		144	%
$	—	$	8.66		44.38	%	$	422.2		1.00	%		1.00	%‡		9.90	%		167	%
$	0.01	$	6.57		(20.86	)%	$	172.3		.92	%		.92	%‡		7.96	%		115	%
$	—	$	9.00		6.73	%	$	369.2		.92	%		.92	%‡		7.41	%		153	%
$	—	$	9.08		6.53	%	$	588.3		.90	%		.89	%‡		6.52	%		136	%

$	—	$	9.61		5.71	%**	$	387.0		.75	%*		.75	%§*		7.31	%*		61	%**
$	—	$	9.50		19.81	%	$	266.2		.75	%		.75	%‡		8.55	%		144	%
$	—	$	8.68		20.23	%**	$	86.6		.75	%*		.75	%‡*		9.86	%*		167	%^^

$	—	$	9.60		5.52	%**	$	323.5		1.12	%*		1.12	%§*		6.92	%*		61	%**
$	—	$	9.49		19.52	%	$	277.5		1.12	%		1.12	%‡		7.75	%		144	%
$	—	$	8.66		19.69	%**	$	24.3		1.12	%*		1.12	%‡*		9.19	%*		167	%^^

$	—	$	9.61		5.12	%**	$	38.6		1.87	%*		1.87	%‡*		6.13	%*		61	%**
$	—	$	9.50		18.60	%	$	25.5		1.87	%		1.87	%‡		7.05	%		144	%
$	—	$	8.67		19.43	%**	$	2.6		1.87	%*		1.87	%‡*		8.26	%*		167	%^^

103

Financial Highlights (cont'd)

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)@		Net Gains or Losses on Securities (both realized and unrealized)			Total From Investment Operations			Dividends from Net Investment Income			Distributions from Net Realized Capital Gains			Tax Return of Capital		Total Distributions
Class R3
4/30/2011 (Unaudited)	$	9.49	$	0.32	$	0.18		$	0.50		$	(0.32	)	$	(.07	)	$	—	$	(0.39	)
10/31/2010	$	8.67	$	0.69	$	0.89		$	1.58		$	(0.76	)	$	—		$	—	$	(0.76	)
Period from 5/27/2009^ to 10/31/2009	$	7.51	$	0.33	$	1.13		$	1.46		$	(0.30	)	$	—		$	—	$	(0.30	)
Municipal Intermediate Bond Fund
Investor Class
4/30/2011 (Unaudited)	$	11.59	$	0.18	$	(0.28	)	$	(0.10	)	$	(0.18	)	$	(0.05	)	$	—	$	(0.23	)
10/31/2010	$	11.22	$	0.36	$	0.37		$	0.73		$	(0.36	)	$	—		$	—	$	(0.36	)
10/31/2009	$	10.60	$	0.35	$	0.64		$	0.99		$	(0.37	)	$	—		$	—	$	(0.37	)
10/31/2008	$	11.20	$	0.41	$	(0.59	)	$	(0.18	)	$	(0.41	)	$	(0.01	)	$	—	$	(0.42	)
10/31/2007	$	11.36	$	0.41	$	(0.12	)	$	0.29		$	(0.41	)	$	(0.04	)	$	—	$	(0.45	)
10/31/2006	$	11.33	$	0.40	$	0.08		$	0.48		$	(0.40	)	$	(0.05	)	$	—	$	(0.45	)
Institutional Class
4/30/2011 (Unaudited)	$	11.59	$	0.19	$	(0.29	)	$	(0.10	)	$	(0.19	)	$	(0.05	)	$	—	$	(0.24	)
Period from 6/21/2010^ to 10/31/2010	$	11.36	$	0.14	$	0.23		$	0.37		$	(0.14	)	$	—		$	—	$	(0.14	)
Class A
4/30/2011 (Unaudited)	$	11.60	$	0.17	$	(0.30	)	$	(0.13	)	$	(0.17	)	$	(0.05	)	$	—	$	(0.22	)
Period from 6/21/2010^ to 10/31/2010	$	11.36	$	0.12	$	0.24		$	0.36		$	(0.12	)	$	—		$	—	$	(0.12	)
Class C
4/30/2011 (Unaudited)	$	11.59	$	0.13	$	(0.28	)	$	(0.15	)	$	(0.13	)	$	(0.05	)	$	—	$	(0.18	)
Period from 6/21/2010^ to 10/31/2010	$	11.36	$	0.09	$	0.23		$	0.32		$	(0.09	)	$	—		$	—	$	(0.09	)
Short Duration Bond Fund
Investor Class
4/30/2011 (Unaudited)	$	8.09	$	0.07	$	(0.00	)	$	0.07		$	(0.12	)	$	—		$	—	$	(0.12	)
10/31/2010	$	7.83	$	0.17	$	0.38		$	0.55		$	(0.29	)	$	—		$	—	$	(0.29	)
10/31/2009	$	7.91	$	0.35	$	(0.05	)	$	0.30		$	(0.38	)	$	—		$	—	$	(0.38	)
10/31/2008	$	9.13	$	0.41	$	(1.18	)	$	(0.77	)	$	(0.45	)	$	—		$	—	$	(0.45	)
10/31/2007	$	9.11	$	0.41	$	0.06		$	0.47		$	(0.45	)	$	—		$	—	$	(0.45	)
10/31/2006	$	9.13	$	0.35	$	0.03		$	0.38		$	(0.40	)	$	—		$	—	$	(0.40	)

See Notes to Financial Highlights

104

Capital Contributions		Net Asset Value, End of Period		Total Return††			Net Assets, End of Period (in millions)		Ratio of Gross Expenses to Average Net Assets#			Ratio of Net Expenses to Average Net Assets			Ratio of Net Investment Income/ (Loss) to Average Net Assets			Portfolio Turnover Rate

$	—	$	9.60		5.39	%**	$	2.4		1.37	%*		1.37	%§*		6.69	%*		61	%**
$	—	$	9.49		19.08	%	$	0.5		1.37	%		1.37	%‡		7.60	%		144	%
$	—	$	8.67		19.76	%**	$	0.1		1.37	%*		1.37	%‡*		9.29	%*		167	%^^

$	—	$	11.26		(.81	)%**	$	105.5		.65	%*		.65	%‡*		3.26	%*		33	%**
$	—	$	11.59		6.56	%	$	118.8		.65	%		.65	%‡		3.12	%		101	%
$	—	$	11.22		9.42	%	$	92.3		.65	%		.65	%‡		3.15	%		146	%
$	—	$	10.60		(1.74	)%	$	25.6		.66	%		.64	%‡		3.65	%		39	%
$	—	$	11.20		2.61	%	$	27.8		.66	%		.65	%‡		3.61	%		9	%
$	—	$	11.36		4.38	%	$	32.1		.66	%		.65	%‡		3.56	%		28	%

$	—	$	11.25		(.82	)%**	$	5.7		.50	%*		.50	%‡*		3.45	%*		33	%**
$	—	$	11.59		3.25	%**	$	0.1		.50	%*		.50	%‡*		3.30	%*		101	%^^

$	—	$	11.25		(1.09	)%**	$	0.1		.87	%*		.87	%‡*		3.05	%*		33	%**
$	—	$	11.60		3.20	%**	$	0.2		.87	%*		.87	%‡*		3.00	%*		101	%^^

$	—	$	11.26		(1.28	)%**	$	0.2		1.62	%*		1.62	%‡*		2.30	%*		33	%**
$	—	$	11.59		2.83	%**	$	0.1		1.62	%*		1.62	%‡*		2.14	%*		101	%^^

$	—	$	8.04		.86	%**	$	46.1		.70	%*		.70	%‡*		1.86	%*		54	%**
$	—	$	8.09		7.08	%	$	56.1		.70	%		.70	%‡		2.19	%		69	%
$	—	$	7.83		4.18	%	$	52.6		.70	%		.70	%‡		4.73	%		48	%
$	—	$	7.91		(8.70	)%	$	61.6		.70	%		.70	%‡		4.73	%		10	%
$	—	$	9.13		5.24	%	$	93.4		.70	%		.70	%‡		4.54	%		53	%
$	—	$	9.11		4.28	%	$	108.1		.71	%		.70	%‡		3.80	%		74	%

105

Financial Highlights (cont'd)

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)@		Net Gains or Losses on Securities (both realized and unrealized)			Total From Investment Operations			Dividends from Net Investment Income			Distributions from Net Realized Capital Gains			Tax Return of Capital			Total Distributions
Institutional Class
4/30/2011 (Unaudited)	$	8.09	$	0.08	$	(0.01	)	$	0.07		$	(0.13	)	$	—		$	—		$	(0.13	)
Period from 6/21/2010^ to 10/31/2010	$	7.97	$	0.06	$	0.16		$	0.22		$	(0.10	)	$	—		$	—		$	(0.10	)
Trust Class
4/30/2011 (Unaudited)	$	7.71	$	0.07	$	(0.01	)	$	0.06		$	(0.11	)	$	—		$	—		$	(0.11	)
10/31/2010	$	7.46	$	0.16	$	0.35		$	0.51		$	(0.26	)	$	—		$	—		$	(0.26	)
10/31/2009	$	7.54	$	0.33	$	(0.06	)	$	0.27		$	(0.35	)	$	—		$	—		$	(0.35	)
10/31/2008	$	8.70	$	0.38	$	(1.12	)	$	(0.74	)	$	(0.42	)	$	—		$	—		$	(0.42	)
10/31/2007	$	8.68	$	0.39	$	0.05		$	0.44		$	(0.42	)	$	—		$	—		$	(0.42	)
10/31/2006	$	8.70	$	0.32	$	0.03		$	0.35		$	(0.37	)	$	—		$	—		$	(0.37	)
Class A
4/30/2011 (Unaudited)	$	7.72	$	0.07	$	(0.02	)	$	0.05		$	(0.11	)	$	—		$	—		$	(0.11	)
Period from 6/21/2010^ to 10/31/2010	$	7.60	$	0.05	$	0.15		$	0.20		$	(0.08	)	$	—		$	—		$	(0.08	)
Class C
4/30/2011 (Unaudited)	$	7.72	$	0.04	$	(0.02	)	$	0.02		$	(0.08	)	$	—		$	—		$	(0.08	)
Period from 6/21/2010^ to 10/31/2010	$	7.60	$	0.03	$	0.15		$	0.18		$	(0.06	)	$	—		$	—		$	(0.06	)
Strategic Income Fund
Institutional Class
4/30/2011 (Unaudited)	$	11.23	$	0.23	$	0.00		$	0.23		$	(0.24	)	$	(0.19	)	$	—		$	(0.43	)
10/31/2010	$	10.58	$	0.53	$	0.81		$	1.34		$	(0.56	)	$	(0.13	)	$	—		$	(0.69	)
10/31/2009	$	8.78	$	0.45	$	1.79		$	2.24		$	(0.44	)	$	—		$	—		$	(0.44	)
10/31/2008	$	10.38	$	0.44	$	(1.02	)	$	(0.58	)	$	(0.31	)@	$	(0.61	)@	$	(0.10	)@	$	(1.02	)
10/31/2007	$	10.65	$	0.43	$	0.15		$	0.58		$	(0.45	)	$	(0.40	)	$	—		$	(0.85	)
10/31/2006	$	10.90	$	0.38	$	0.65		$	1.03		$	(0.46	)	$	(0.82	)	$	—		$	(1.28	)
Trust Class
4/30/2011 (Unaudited)	$	11.23	$	0.21	$	0.00		$	0.21		$	(0.22	)	$	(0.19	)	$	—		$	(0.41	)
10/31/2010	$	10.58	$	0.49	$	0.81		$	1.30		$	(0.52	)	$	(0.13	)	$	—		$	(0.65	)
10/31/2009	$	8.77	$	0.43	$	1.78		$	2.21		$	(0.40	)	$	—		$	—		$	(0.40	)
10/31/2008	$	10.38	$	0.42	$	(1.05	)	$	(0.63	)	$	(0.27	)@	$	(0.61	)@	$	(0.10	)@	$	(0.98	)
Period from 4/2/2007^ to 10/31/2007	$	10.39	$	0.24	$	(0.02	)	$	0.22		$	(0.23	)	$	—		$	—		$	(0.23	)

See Notes to Financial Highlights

106

Capital Contributions		Net Asset Value, End of Period		Total Return††			Net Assets, End of Period (in millions)		Ratio of Gross Expenses to Average Net Assets#			Ratio of Net Expenses to Average Net Assets			Ratio of Net Investment Income/ (Loss) to Average Net Assets			Portfolio Turnover Rate

$	—	$	8.03		.83	%**	$	13.2		.50	%*		.50	%‡*		2.00	%*		54	%**
$	—	$	8.09		2.73	%**	$	0.0		.50	%*		.50	%‡*		2.16	%*		69	%^^

$	—	$	7.66		.78	%**	$	6.8		.80	%*		.80	%‡*		1.76	%*		54	%**
$	—	$	7.71		7.01	%	$	9.4		.80	%		.80	%‡		2.09	%		69	%
$	—	$	7.46		4.02	%	$	8.1		.80	%		.80	%‡		4.62	%		48	%
$	—	$	7.54		(8.76	)%	$	9.3		.80	%		.80	%‡		4.64	%		10	%
$	—	$	8.70		5.15	%	$	13.1		.80	%		.80	%‡		4.44	%		53	%
$	—	$	8.68		4.16	%	$	16.6		.81	%		.80	%‡		3.69	%		74	%

$	—	$	7.66		.61	%**	$	0.0		.87	%*		.87	%‡*		1.73	%*		54	%**
$	—	$	7.72		2.67	%**	$	0.1		.87	%*		.87	%‡*		1.83	%*		69	%^^
$	—	$	7.66		.24	%**	$	0.1		1.62	%*		1.62	%‡*		.94	%*		54	%**
$	—	$	7.72		2.39	%**	$	0.0		1.62	%*		1.62	%‡*		1.04	%*		69	%^^


$	—	$	11.03		2.21	%**	$	150.5		.75	%*		.75	%‡*		4.14	%*		148	%**
$	—	$	11.23		13.17	%	$	118.8		.75	%		.75	%‡		4.88	%		238	%
$	—	$	10.58		25.97	%	$	18.7		.75	%		.75	%‡		4.59	%		322	%
$	—	$	8.78		(6.09	)%	$	4.6		.84	%		.83	%‡		4.54	%		323	%
$	—	$	10.38		5.64	%	$	17.0		.86	%		.85	%‡		4.10	%		99	%
$	—	$	10.65		10.34	%	$	20.4		.86	%		.85	%‡		3.66	%		111	%
$	—	$	11.03		2.04	%**	$	17.7		1.10	%*		1.10	%‡*		3.80	%*		148	%**
$	—	$	11.23		12.78	%	$	16.3		1.10	%		1.10	%‡		4.56	%		238	%
$	—	$	10.58		25.66	%	$	6.7		1.10	%		1.10	%‡		4.32	%		322	%
$	—	$	8.77		(6.54	)%	$	0.3		1.15	%		1.14	%‡		4.36	%		323	%
$	—	$	10.38		2.16	%**	$	0.2		1.11	%*		1.10	%‡*		3.92	%*		99	%^^

107

Financial Highlights (cont'd)

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)@		Net Gains or Losses on Securities (both realized and unrealized)			Total From Investment Operations			Dividends from Net Investment Income			Distributions from Net Realized Capital Gains			Tax Return of Capital			Total Distributions
Class A
4/30/2011 (Unaudited)	$	11.24	$	0.20	$	0.01		$	0.21		$	(0.22	)	$	(0.19	)	$	—		$	(0.41	)
10/31/2010	$	10.59	$	0.48	$	0.81		$	1.29		$	(0.51	)	$	(0.13	)	$	—		$	(0.64	)
10/31/2009	$	8.78	$	0.43	$	1.77		$	2.20		$	(0.39	)	$	—		$	—		$	(0.39	)
Period from 12/20/2007^ to 10/31/2008	$	10.19	$	0.36	$	(0.78	)	$	(0.42	)	$	(0.28	)@	$	(0.61	)@	$	(0.10	)@	$	(0.99	)
Class C
4/30/2011 (Unaudited)	$	11.23	$	0.17	$	0.00		$	0.17		$	(0.18	)	$	(0.19	)	$	—		$	(0.37	)
10/31/2010	$	10.58	$	0.41	$	0.81		$	1.22		$	(0.44	)	$	(0.13	)	$	—		$	(0.57	)
10/31/2009	$	8.78	$	0.36	$	1.76		$	2.12		$	(0.32	)	$	—		$	—		$	(0.32	)
Period from 12/20/2007^ to 10/31/2008	$	10.19	$	0.29	$	(0.77	)	$	(0.48	)	$	(0.22	)@	$	(0.61	)@	$	(0.10	)@	$	(0.93	)

See Notes to Financial Highlights

108

Capital Contributions		Net Asset Value, End of Period		Total Return††			Net Assets, End of Period (in millions)		Ratio of Gross Expenses to Average Net Assets#			Ratio of Net Expenses to Average Net Assets			Ratio of Net Investment Income/ (Loss) to Average Net Assets			Portfolio Turnover Rate

$	—	$	11.04		2.01	%**	$	160.4		1.15	%*		1.15	%‡*		3.73	%*		148	%**
$	—	$	11.24		12.72	%	$	142.9		1.15	%		1.15	%‡		4.44	%		238	%
$	—	$	10.59		25.51	%	$	68.2		1.15	%		1.15	%‡		4.25	%		322	%
$	—	$	8.78		(4.64	)%**	$	0.2		1.21	%*		1.20	%‡*		4.36	%*		323	%^^

$	—	$	11.03		1.66	%**	$	99.6		1.85	%*		1.85	%‡*		3.04	%*		148	%**
$	—	$	11.23		11.93	%	$	93.3		1.85	%		1.85	%‡		3.75	%		238	%
$	—	$	10.58		24.47	%	$	36.2		1.85	%		1.85	%‡		3.53	%		322	%
$	—	$	8.78		(5.22	)%**	$	0.1		1.91	%*		1.90	%‡*		3.56	%*		323	%^^

109

Notes to Financial Highlights Income Funds (Unaudited)

††	Total return based on per share NAV reflects the effects of changes in NAV on the performance of each Fund during each fiscal period and assumes income dividends and other distributions, if any, were reinvested, but does not reflect the effect of sales charges. Results represent past performance and do not guarantee future results. Current returns may be lower or higher than the performance data quoted. Investment returns and principal may fluctuate and shares when redeemed may be worth more or less than original cost. For each Fund, total return would have been lower if Management had not reimbursed and/or waived certain expenses. Total return would have been higher if Management had not recouped previously reimbursed expenses. For the year ended October 31, 2007, Management reimbursed Short Duration for losses incurred in connection with the disposition of foreign currency contracts, which had no impact on total return. For the year ended October 31, 2008, High Income recorded a capital contribution from Management in connection with a reallocation of expenses that are shared by the Fund and Management, which had a (.12)% impact on total return.
#	The Fund is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements.
‡	After reimbursement of expenses and/or waiver of a portion of the investment management fee by Management. Had Management not undertaken such actions, the annualized ratios of net expenses to average daily net assets would have been:

	Six Months Ended April 30,			Year Ended October 31,
	2011			2010			2009			2008			2007			2006

Core Bond Fund Investor Class		1.18	%		1.19	%		1.40	%		1.25	%		1.30	%		1.46	%
Core Bond Fund Institutional Class		.68	%		.70	%		.94	%		.83	%		.83	%		.91	%
Core Bond Fund Class A		1.05	%		1.09	%		1.36	%		2.73	%(1)		—			—
Core Bond Fund Class C		1.82	%		1.84	%		2.68	%		3.43	%(1)		—			—
Floating Rate Income Fund Institutional Class		1.00	%		1.87	%(5)		—			—			—			—
Floating Rate Income Fund Class A		1.39	%		2.21	%(4)		—			—			—			—
Floating Rate Income Fund Class C		2.06	%		3.39	%(5)		—			—			—			—
High Income Bond Fund Investor Class		—			—			1.04	%		.92	%		.92	%		.90	%
High Income Bond Fund Institutional Class		—			.77	%		.91	%(3)		—			—			—
High Income Bond Fund Class A		—			1.16	%		1.27	%(3)		—			—			—
High Income Bond Fund Class C		1.89	%		1.93	%		2.02	%(3)		—			—			—
High Income Bond Fund Class R3		—			1.72	%		5.53	%(3)		—			—			—
Municipal Intermediate Bond Fund Investor Class		1.05	%		1.01	%		1.12	%		1.24	%		1.17	%		1.19	%
Municipal Intermediate Bond Fund Institutional Class		.90	%		26.10	%(6)		—			—			—			—
Municipal Intermediate Bond Fund Class A		1.29	%		23.88	%(6)		—			—			—			—
Municipal Intermediate Bond Fund Class C		2.21	%		22.28	%(6)		—			—			—			—
Short Duration Bond Fund Investor Class		1.32	%		1.27	%		1.18	%		.95	%		.90	%		.80	%
Short Duration Bond Fund Institutional Class		1.12	%		33.53	%(6)		—			—			—			—
Short Duration Bond Fund Trust Class		1.47	%		1.48	%		1.58	%		1.27	%		1.18	%		1.06	%
Short Duration Bond Fund Class A		1.59	%		26.42	%(6)		—			—			—			—
Short Duration Bond Fund Class C		2.28	%		34.63	%(6)		—			—			—			—
Strategic Income Fund Institutional Class		.92	%		.96	%		2.47	%		4.03	%		2.73	%		2.29	%
Strategic Income Fund Trust Class		1.27	%		1.36	%		3.00	%		9.14	%		4.81	%(2)		—
Strategic Income Fund Class A		1.33	%		1.37	%		1.93	%		7.52	%(1)		—			—
Strategic Income Fund Class C		2.05	%		2.10	%		2.55	%		8.75	%(1)		—			—

110

Notes to Financial Highlights (Unaudited) (cont'd)

	(1)	Period from December 20, 2007 to October 31, 2008.
	(2)	Period from April 2, 2007 to October 31, 2007.
	(3)	Period from May 27, 2009 to October 31, 2009.
	(4)	Period from December 29, 2009 to October 31, 2010. Organization expense, which is a non-recurring expense, is included in ratios on a non-annualized basis.
	(5)	Period from December 30, 2009 to October 31, 2010. Organization expense, which is a non-recurring expense, is included in ratios on a non-annualized basis.
	(6)	Period from June 21, 2010 to October 31, 2010.
§	After reimbursement of expenses previously paid by Management, as applicable. Had the Fund not made such reimbursements, the annualized ratios of net expenses to average daily net assets would have been:

	Six Months Ended April 30, 2011			Year Ended October 31, 2010

High Income Bond Fund Investor Class		—			.93	%
High Income Bond Fund Institutional Class		.73	%		—
High Income Bond Fund Class A		1.11	%		—
High Income Bond Fund Class R3		1.36	%		—

^	The date investment operations commenced.
@	Calculated based on the average number of shares outstanding during each fiscal period.
*	Annualized.
**	Not annualized.
^^	Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the year ended October 31, 2007 for Strategic Income (Trust Class), for the year ended October 31, 2008 for Core Bond and Strategic Income (Class A and C), for the year ended October 31, 2009 for High Income (Institutional Class, Class A, Class C and Class R3) and for the year ended October 31, 2010 for Municipal Intermediate Bond and Short Duration (Institutional Class, Class A and Class C).

111

Neuberger Berman Strategic Income Fund (NRSIX) N-CSRSCertified semi-annual shareholder report (management investment company)