NPORT-EX 2 LMF5200LM073122.htm HTML

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited)    July 31, 2022

 

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  
MUNICIPAL BONDS - 93.2%           

Alabama - 5.4%

           

Alabama State Corrections Institution Finance Authority Revenue, Series A

      5.250 %      7/1/52      $ 500,000      $ 547,800  

Jefferson County, AL, Sewer Revenue:

           

Convertible CAB, Subordinated Lien, Warrants, Step bond, Series F, Refunding (0.000% to 10/1/23 then 7.900%)

      0.000 %      10/1/50        3,020,000        3,082,637  

Senior Lien, Warrants, Series A, Refunding, AGM

      5.500 %      10/1/53        400,000        421,447  

Subordinated Lien, Warrants, Series D, Refunding

      6.000 %      10/1/42        1,120,000        1,220,562  

Subordinated Lien, Warrants, Series D, Refunding

      6.500 %      10/1/53        3,000,000        3,285,071  
          

 

 

  

Total Alabama

              8,557,517  
          

 

 

  

Alaska - 0.9%

           

Anchorage, AK, Port Revenue, Series A

      5.000 %      12/1/50        250,000        269,331 (a)  

Northern Tobacco Securitization Corp., AK, Tobacco Settlement Revenue:

           

Asset Backed Senior Bonds, Class 1, Series A

      4.000 %      6/1/36        400,000        404,738  

Asset Backed Senior Bonds, Class 1, Series A, Refunding

      4.000 %      6/1/50        250,000        237,495  

Asset Backed Senior Bonds, Class 2, Series B-1

      4.000 %      6/1/50        500,000        516,193  
          

 

 

  

Total Alaska

              1,427,757  
          

 

 

  

Arizona - 3.8%

           

Arizona, AZ, IDA Revenue, Doral Academy Of Northern Nevada Project, Series A, Refunding

      4.000 %      7/15/51        500,000        415,921 (b)  

La Paz County, AZ, IDA Revenue, Charter School Solutions, Harmony Public School Project, Series A

      5.000 %      2/15/36        1,000,000        1,032,504 (b) 

Maricopa County, AZ, IDA Revenue, Legacy Traditional Schools Project, Series 2019, Refunding

      5.000 %      7/1/49        500,000        508,743 (b)  

Navajo Nation, AZ, Revenue, Series A, Refunding

      5.500 %      12/1/30        190,000        200,553 (b)  

Phoenix, AZ, IDA Revenue:

           

Basis School Inc., Refunding

      5.000 %      7/1/35        1,000,000        1,012,384 (b) 

Great Hearts Academies, Refunding

      5.000 %      7/1/41        1,200,000        1,225,561  

Salt Verde, AZ, Financial Corp., Natural Gas Revenue, Series 2007

      5.000 %      12/1/37        1,500,000        1,663,491  
          

 

 

  

Total Arizona

              6,059,157  
          

 

 

  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal High Income Fund Inc. 2022 Quarterly Report    

  

 

 

1

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    July 31, 2022

 

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

California - 10.8%

           

Alameda City, CA, Corridor Transportation Authority Revenue, Convertible CAB, Series C, Refunding, AGM

      5.000 %      10/1/52      $ 600,000      $ 655,542  

Alameda, CA, Corridor Transportation Authority Revenue, Second Subordinated Lien, Series B, Refunding

      5.000 %      10/1/34        500,000        532,862  

Anaheim, CA, Public Financing Authority Lease Revenue, Series A, Refunding

      5.000 %      5/1/46        2,000,000        2,114,912 (c) 

California State Community Housing Agency, Essential Housing Revenue, Stoneridge Apartments, Series A

      4.000 %      2/1/56        500,000        419,186 (b)  

California State MFA Revenue, Senior Lien, LINXS APM Project, Series A

      5.000 %      12/31/43        700,000        730,206 (a)  

California State PCFA Water Furnishing Revenue, San Diego County Water Authority Desalination Project, Refunding

      5.000 %      7/1/39        700,000        738,422 (b)  

California State Public Finance Authority Revenue, ENSO Village Project, Green Bond, Series A

      5.000 %      11/15/36        250,000        254,631  

California State Public Finance Authority, CA, Senior Living Revenue, Enso Village Project, Green Bond, Series B-3, Refunding

      2.125 %      11/15/27        250,000        237,137 (b)  

California Statewide CDA Revenue:

           

Provident Group-Pomona Properties LLC, Series A

      5.600 %      1/15/36        500,000        502,637 (b)  

Provident Group-Pomona Properties LLC, Series A

      5.750 %      1/15/45        360,000        361,559 (b)  

California Statewide CDA, Community Improvement Authority Revenue, Renaissance at City Center, Series A

      5.000 %      7/1/51        175,000        171,324  

Inland Valley, CA, Development Agency, Successor Agency Tax Allocation Revenue, Series A, Refunding

      5.000 %      9/1/44        500,000        514,386  

Mountain House Public Financing Authority, CA, Utility Systems Revenue, Green Bond, Series A, BAM

      4.000 %      12/1/50        750,000        745,566  

M-S-R Energy Authority, CA, Natural Gas Revenue:

           

Series B

      6.500 %      11/1/39        1,000,000        1,266,473  

Series C

      7.000 %      11/1/34        2,000,000        2,540,637  

Series C

      6.500 %      11/1/39        2,000,000        2,532,945  

 

See Notes to Schedule of Investments.

 

 

 

2

  

    Western Asset Municipal High Income Fund Inc. 2022 Quarterly Report

  

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    July 31, 2022

 

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

California - continued

           

Redding, CA, Redevelopment Agency, Tax Allocation, Shastec Redevelopment Project

      5.000 %      9/1/29      $ 600,000      $ 601,270  

River Islands, CA, Public Financing Authority, Special Tax Revenue:

           

Community Facilities District No. 2003-1, Refunding

      5.500 %      9/1/45        620,000        634,473  

Community Facilities District No. 2003-1, Series A-1, Refunding, AGM

      5.250 %      9/1/52        300,000        333,507  

San Francisco, CA, City & County Airport Commission, International Airport Revenue, Series A

      5.000 %      5/1/49        1,000,000        1,077,620 (a)  

Tobacco Securitization Authority of Southern California Revenue, Asset Backed Refunding, San Diego County Tobacco Asset Securitization Corporation, Class 1, Series A

      5.000 %      6/1/48        200,000        208,967  
          

 

 

  

Total California

              17,174,262  
          

 

 

  

Colorado - 2.5%

           

Aristation Metropolitan District, CO, GO, Convertible Unlimited & Special Revenue, Refunding and Improvements

      5.000 %      12/1/38        500,000        504,224  

Colorado State Health Facilities Authority Revenue, Commonspirit Health Project, Series A-2

      4.000 %      8/1/49        500,000        485,594  

Colorado State High Performance Transportation Enterprise Revenue, C-470 Express Lanes

      5.000 %      12/31/51        150,000        152,653  

North Range, CO, Metropolitan District #2, GO, Series A, Refunding

      5.625 %      12/1/37        500,000        511,240  

Public Authority for Colorado Energy, Natural Gas Purchase Revenue, Series 2008

      6.125 %      11/15/23        1,830,000        1,886,261  

Village Metropolitan District, CO, Limited & Special Revenue, Series 2020, Refunding and Improvements

      5.000 %      12/1/40        500,000        509,195  
          

 

 

  

Total Colorado

              4,049,167  
          

 

 

  

Connecticut - 1.1%

           

Connecticut State Special Tax Revenue:

           

Transportation Infrastructure, Series A

      5.000 %      1/1/37        500,000        553,066  

Transportation Infrastructure, Series A

      5.000 %      5/1/38        550,000        622,191  

Connecticut State, GO, Series A

      4.000 %      4/15/37        600,000        623,384  
          

 

 

  

Total Connecticut

              1,798,641  
          

 

 

  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal High Income Fund Inc. 2022 Quarterly Report    

  

 

 

3

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    July 31, 2022

 

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

District of Columbia - 1.3%

           

District of Columbia Revenue, Friendship Public Charter School Inc.

      5.000 %      6/1/42      $ 2,000,000      $ 2,022,784 (c) 
          

 

 

  

Florida - 4.9%

           

Broward County, FL, Port Facilities Revenue:

           

Senior Bonds, Series B

      4.000 %      9/1/44        1,250,000        1,254,391 (a) 

Senior Bonds, Series B

      4.000 %      9/1/49        500,000        487,593 (a)  

Series 2022

      5.500 %      9/1/52        1,000,000        1,124,455 (a) 

Florida State Development Finance Corp., Educational Facilities Revenue:

           

Mater Academy Projects, Series A

      5.000 %      6/15/40        650,000        679,606  

Renaissance Charter School Inc. Projects, Series A

      6.000 %      6/15/35        250,000        261,825 (b)  

Renaissance Charter School Inc. Projects, Series A

      6.125 %      6/15/46        215,000        224,352 (b)  

Florida State Mid-Bay Bridge Authority Revenue, Series A, Refunding

      5.000 %      10/1/28        500,000        529,075  

Fort Pierce, FL, Utilities Authority Revenue, Series A, Refunding, AGM

      4.000 %      10/1/52        150,000        151,271  

Miami-Dade County, FL, Aviation Revenue, Series A, Refunding

      5.000 %      10/1/49        650,000        685,590 (a)  

Palm Beach County, FL, Health Facilities Authority Hospital Revenue:

           

Jupiter Medical Center Project, Series A

      5.000 %      11/1/39        350,000        373,219  

Jupiter Medical Center Project, Series A

      5.000 %      11/1/47        1,515,000        1,581,118  

Palm Beach County, FL, Health Facilities Authority Revenue:

           

Toby & Leon Cooperman Sinai Residences of Boca Raton Expansion, Refunding

      4.000 %      6/1/41        100,000        87,553  

Toby & Leon Cooperman Sinai Residences of Boca Raton Expansion, Series A

      5.000 %      6/1/55        350,000        353,855  

Reunion, FL, East Community Development District, Special Assessment Bond, Series A-2

      7.375 %      5/1/33        285,000        3 *(d)  
          

 

 

  

Total Florida

              7,793,906  
          

 

 

  

 

See Notes to Schedule of Investments.

 

 

 

4

  

    Western Asset Municipal High Income Fund Inc. 2022 Quarterly Report

  

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    July 31, 2022

 

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Georgia - 0.4%

           

Georgia State Municipal Electric Authority Power Revenue:

           

Plant Vogtle Units 3 & 4 Project, Series A

      5.000 %      1/1/56      $ 250,000      $ 261,354  

Project One Subordinated, Series A

      5.000 %      1/1/45        250,000        267,299  

Main Street Natural Gas Inc., GA, Gas Project Revenue, Series A

      5.000 %      5/15/43        150,000        157,935  
          

 

 

  

Total Georgia

              686,588  
          

 

 

  

Illinois - 14.8%

           

Chicago, IL, Board of Education, Dedicated Capital Improvement, Special Tax Revenue, Series 2018

      5.000 %      4/1/42        1,000,000        1,044,915  

Chicago, IL, Board of Education, GO:

           

Dedicated, Series H

      5.000 %      12/1/46        1,000,000        1,038,938  

Series A

      5.000 %      12/1/40        1,250,000        1,318,663  

Series C, Refunding, AGM

      5.000 %      12/1/32        250,000        271,623  

Chicago, IL, GO:

           

Series A

      5.000 %      1/1/44        500,000        521,899  

Series A, Refunding

      5.000 %      1/1/28        500,000        543,363  

Series A, Refunding

      6.000 %      1/1/38        300,000        326,661  

Series C, Refunding

      5.000 %      1/1/25        500,000        525,068  

Chicago, IL, O’Hare International Airport Revenue:

           

Senior Lien, Series G

      5.000 %      1/1/42        500,000        523,525 (a)  

Series A, Refunding

      5.000 %      1/1/31        1,500,000        1,572,837 (a) 

Chicago, IL, Transit Authority, Sales Tax Receipts Revenue:

           

Second Lien

      5.000 %      12/1/51        1,000,000        1,046,837  

Second Lien, Series A, Refunding

      5.000 %      12/1/55        500,000        539,440  

Chicago, IL, Wastewater Transmission Revenue, Second Lien, Series B, Refunding

      5.000 %      1/1/38        500,000        532,481  

Chicago, IL, Waterworks Revenue:

           

Second Lien, Series 2017, Refunding

      5.000 %      11/1/29        500,000        540,300  

Second Lien, Series 2017-2, Refunding, AGM

      5.000 %      11/1/32        1,260,000        1,399,569  

Illinois State Finance Authority, Revenue, Franciscan Communities Inc.:

           

Series A, Refunding

      5.250 %      5/15/47        130,000        133,622 (c)  

Series A, Refunding

      5.250 %      5/15/47        870,000        875,927  

Illinois State Sports Facilities Authority Revenue, State Tax Supported, Series 2019, Refunding, BAM

      5.000 %      6/15/30        250,000        285,870  

Illinois State University, Auxiliary Facilities System Revenue, Series A, Refunding, AGM

      5.000 %      4/1/28        100,000        113,970  

Illinois State, GO:

           

Series 2016, Refunding

      5.000 %      2/1/29        300,000        323,936  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal High Income Fund Inc. 2022 Quarterly Report    

  

 

 

5

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    July 31, 2022

 

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Illinois - continued

           

Series A

      5.000 %      3/1/37      $ 1,250,000      $ 1,358,737  

Series A

      5.000 %      3/1/46        500,000        534,487  

Series A, Refunding

      5.000 %      10/1/29        1,100,000        1,211,802  

Series A, Refunding

      5.000 %      10/1/30        550,000        602,334  

Series B, Refunding

      5.000 %      9/1/27        400,000        440,574  

Series D

      5.000 %      11/1/27        1,150,000        1,267,492  

Metropolitan Pier & Exposition Authority, IL, Revenue:

           

McCormick Place Expansion Project, Series A

      5.000 %      6/15/57        350,000        361,445  

McCormick Place Expansion Project, Series A, Refunding

      4.000 %      12/15/42        750,000        727,571  

McCormick Place Expansion Project, Series A, Refunding

      4.000 %      6/15/50        1,000,000        945,780  

McCormick Place Expansion Project, Series A, Refunding

      5.000 %      6/15/50        250,000        259,860  

McCormick Place Expansion Project, Series B, Refunding

      5.000 %      6/15/42        1,250,000        1,316,999  

Regional Transportation Authority, IL, GO, Series A, Refunding, NATL

      6.000 %      7/1/29        930,000        1,087,247  
          

 

 

  

Total Illinois

              23,593,772  
          

 

 

  

Indiana - 2.1%

           

Indiana State Finance Authority Revenue:

           

BHI Senior Living Inc., Series A, Refunding

      4.000 %      11/15/41        500,000        444,237  

Marion General Hospital, Series A

      4.000 %      7/1/45        200,000        194,953  

Midwestern Disaster Relief, Ohio Valley Electric Corp. Project, Series A

      4.250 %      11/1/30        200,000        205,766  

Private Activity Ohio River Bridges East End Crossing Project, Series A

      5.000 %      7/1/48        2,000,000        2,057,869 (a)(c) 

Valparaiso, IN, Exempt Facilities Revenue, Pratt Paper LLC Project

      7.000 %      1/1/44        500,000        522,786 (a)  
          

 

 

  

Total Indiana

              3,425,611  
          

 

 

  

Iowa - 0.5%

           

Iowa State Finance Authority Revenue, Midwestern Disaster Area, Iowa Fertilizer Co. Project, Refunding

      5.000 %      12/1/42        750,000        797,239 (e)(f) 
          

 

 

  

Kentucky - 1.9%

           

Kentucky State PEA, Gas Supply Revenue:

           

Series A

      4.000 %      6/1/26        1,500,000        1,534,560 (e)(f) 

Series C

      4.000 %      6/1/25        1,400,000        1,439,030 (e)(f) 
          

 

 

  

Total Kentucky

              2,973,590  
          

 

 

  

 

See Notes to Schedule of Investments.

 

 

 

6

  

    Western Asset Municipal High Income Fund Inc. 2022 Quarterly Report

  

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    July 31, 2022

 

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Louisiana - 1.1%

           

Louisiana State PFA, Lease Revenue:

           

Provident Group, Flagship Properties

      5.000 %      7/1/42      $ 700,000      $ 729,655  

Provident Group, Flagship Properties, Series A

      4.000 %      7/1/49        500,000        477,045  

St. John the Baptist Parish, LA, State Revenue, Marathon Oil Corp. Project, Series B-2, Refunding

      2.375 %      7/1/26        650,000        623,460 (e)(f) 
          

 

 

  

Total Louisiana

              1,830,160  
          

 

 

  

Maryland - 0.7%

           

Maryland State EDC Revenue:

           

Morgan State University Project

      4.250 %      7/1/50        350,000        320,051  

Seagirt Marine Terminal Project, Series A

      5.000 %      6/1/44        400,000        427,166 (a)  

Maryland State Health & Higher EFA Revenue, Frederick Health System

      4.000 %      7/1/40        300,000        300,169  
          

 

 

  

Total Maryland

              1,047,386  
          

 

 

  

Massachusetts - 0.9%

           

Massachusetts State DFA Revenue:

           

Northeastern University Issue, Refunding

      5.000 %      10/1/44        500,000        566,793 (g)  

Wellforce Issue, Series A, Refunding

      5.000 %      7/1/36        500,000        547,060  

Wellforce Issue, Series A, Refunding

      5.000 %      7/1/44        250,000        266,362  
          

 

 

  

Total Massachusetts

              1,380,215  
          

 

 

  

Michigan - 0.7%

           

Detroit, MI, Downtown Development Authority Revenue, Catalyst Development, Series A, Refunding, AGM

      5.000 %      7/1/43        250,000        262,898  

Michigan State Finance Authority Revenue:

           

Henry Ford Health System, Series A

      4.000 %      11/15/50        400,000        389,201  

Tobacco Settlement Asset Backed Senior Bonds, Series A, Refunding

      4.000 %      6/1/49        100,000        94,789  

Tobacco Settlement Asset Backed Senior Bonds, Series B-1, Refunding

      5.000 %      6/1/49        80,000        82,973  

Michigan State Strategic Fund Limited Obligation Revenue, I-75 Improvement Project

      5.000 %      12/31/43        250,000        254,682 (a)  
          

 

 

  

Total Michigan

              1,084,543  
          

 

 

  

Missouri - 1.7%

           

Missouri State HEFA Revenue, Senior Living Facilities, Lutheran Senior Services, Refunding

      5.000 %      2/1/44        750,000        758,293  

St. Louis County, MO, IDA, Senior Living Facilities Revenue, Friendship Village of Sunset Hills, Series A

      5.875 %      9/1/43        2,000,000        2,020,605  
          

 

 

  

Total Missouri

              2,778,898  
          

 

 

  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal High Income Fund Inc. 2022 Quarterly Report    

  

 

 

7

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    July 31, 2022

 

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Nebraska - 2.1%

           

Central Plains Energy Project, NE, Gas Project Revenue, Project #3, Series A, Refunding

      5.000 %      9/1/42      $ 3,340,000      $ 3,348,907  
          

 

 

  

Nevada - 0.5%

           

State of Nevada Department of Business & Industry Revenue:

           

Charter School Lease Revenue, Somerset Academy, Series A

      5.000 %      12/15/35        300,000        305,864 (b)  

Charter School Lease Revenue, Somerset Academy, Series A

      5.125 %      12/15/45        500,000        508,392 (b)  
          

 

 

  

Total Nevada

              814,256  
          

 

 

  

New Jersey - 8.7%

           

Gloucester County, NJ, PCFA Revenue, Keystone Urban Renewal, Logan Generating, Series A, Refunding

      5.000 %      12/1/24        225,000        235,622 (a)(h) 

New Jersey State EDA Revenue:

           

Private Activity-The Goethals Bridge Replacement Project

      5.375 %      1/1/43        1,500,000        1,532,012 (a)  

Special Facility Revenue, Port Newark Container Terminal LLC Project, Refunding

      5.000 %      10/1/37        125,000        131,667 (a)  

Transit Transportation Project, Series A

      5.000 %      11/1/32        1,500,000        1,667,635  

New Jersey State Health Care Facilities Financing Authority Revenue, Hackensack Meridian Health, Series A, Refunding

      5.000 %      7/1/38        100,000        107,126  

New Jersey State Higher Education, Student Assistance Authority Revenue, Subordinated, Series B-1

      5.000 %      12/1/44        640,000        649,710 (a)  

New Jersey State Transportation Trust Fund Authority Revenue:

           

Transportation Program, Series AA

      5.250 %      6/15/32        4,720,000        4,978,788  

Transportation Program, Series BB

      5.000 %      6/15/44        1,000,000        1,067,104  

Transportation System, Series A, Refunding

      5.000 %      12/15/28        1,000,000        1,123,848  

New Jersey State, GO, COVID-19 Emergency, Series A

      5.000 %      6/1/28        1,250,000        1,429,742  

Salem County, NJ, PCFA Revenue, Chambers Project, Series A, Refunding

      5.000 %      12/1/23        775,000        796,193 (a)(h) 

Tobacco Settlement Financing Corp., NJ, Revenue, Series A, Refunding

      5.250 %      6/1/46        150,000        158,777  
          

 

 

  

Total New Jersey

              13,878,224  
          

 

 

  

New Mexico - 0.1%

           

Santa Fe, NM, Retirement Facilities Revenue, EL Castillo Retirement Residences Project, Series A

      5.000 %      5/15/49        250,000        234,226  
          

 

 

  

 

See Notes to Schedule of Investments.

 

 

 

8

  

    Western Asset Municipal High Income Fund Inc. 2022 Quarterly Report

  

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    July 31, 2022

 

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

New York - 6.2%

           

Brookhaven, NY, Local Development Corp., Long Island Community Hospital Project, Series A

      5.000 %      10/1/34      $ 735,000      $ 806,832  

MTA, NY, Transportation Revenue:

           

Green Bonds, Series A-2, Refunding

      5.000 %      11/15/24        100,000        105,838  

Green Bonds, Series D-1

      5.000 %      11/15/43        250,000        265,369  

Green Bonds, Series E, Refunding

      5.000 %      11/15/30        250,000        280,441  

Green Bonds, Series E, Refunding

      4.000 %      11/15/45        250,000        242,967  

Series A-2

      5.000 %      5/15/30        400,000        450,080 (e)(f) 

New York City, NY, GO, Subseries A-1

      4.000 %      8/1/40        750,000        759,928  

New York City, NY, Industrial Development Agency Revenue, Yankee Stadium Project, Refunding

      4.000 %      3/1/45        300,000        299,645  

New York State Dormitory Authority Revenue, Non St Supported Debt Memorial Sloan Kettering, Series B-1

      4.000 %      7/1/51        500,000        501,814  

New York State Liberty Development Corp., Liberty Revenue:

           

3 World Trade Center Project, Class 1, Refunding

      5.000 %      11/15/44        1,205,000        1,213,308 (b) 

7 World Trade Center Project, Class 3, Refunding

      3.500 %      9/15/52        700,000        577,786  

New York State Thruway Authority General Revenue, Junior Indebtedness Obligations, Junior Lien, Series B

      4.000 %      1/1/45        750,000        753,041  

New York State Transportation Development Corp., Special Facilities Revenue:

           

Delta Air Lines Inc., LaGuardia Airport Terminals C and D Redevelopment Project

      5.000 %      1/1/33        750,000        782,182 (a)  

Delta Air Lines Inc., LaGuardia Airport Terminals C and D Redevelopment Project

      4.375 %      10/1/45        250,000        245,873 (a)  

John F. Kennedy International Airport Terminal 4 Project, Series C, Refunding

      4.000 %      12/1/42        500,000        479,101  

LaGuardia Airport Terminal B Redevelopment Project, Series A

      5.000 %      7/1/41        300,000        309,803 (a)  

LaGuardia Airport Terminal B Redevelopment Project, Series A

      5.250 %      1/1/50        500,000        516,769 (a)  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal High Income Fund Inc. 2022 Quarterly Report    

  

 

 

9

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    July 31, 2022

 

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

New York - continued

           

Port Authority of New York & New Jersey Revenue, Consolidated Series 221

      4.000 %      7/15/50      $ 750,000      $ 740,094 (a) 

Troy Capital Resource Corp., NY, Revenue, Rensselaer Polytechnic Institute Project, Series A, Refunding

      4.000 %      9/1/40        500,000        492,940  
          

 

 

  

Total New York

              9,823,811  
          

 

 

  

North Carolina - 0.3%

           

North Carolina State Turnpike Authority, Monroe Expressway Toll Revenue, Series A, Refunding

      5.000 %      7/1/47        500,000        515,668  
          

 

 

  

Ohio - 1.2%

           

Buckeye, OH, Tobacco Settlement Financing Authority Revenue, Senior Bonds, Series B-2, Refunding

      5.000 %      6/1/55        800,000        799,998  

Ohio State Air Quality Development Authority Revenue, American Electric Co. Project, Series B, Refunding

      2.500 %      10/1/29        350,000        326,174 (a)(e)(f) 

Ohio State Private Activity Revenue, Portsmouth Bypass Project

      5.000 %      6/30/53        700,000        720,967 (a)  
          

 

 

  

Total Ohio

              1,847,139  
          

 

 

  

Oklahoma - 0.3%

           

Tulsa County, OK, Industrial Authority, Senior Living Community Revenue, Montereau Inc. Project, Refunding

      5.250 %      11/15/37        500,000        525,754  
          

 

 

  

Oregon - 0.7%

           

Clackamas County, OR, Hospital Facility Authority Revenue, Senior Living, Willamette View Project, Refunding

      5.000 %      11/15/37        500,000        508,318  

Yamhill County, OR, Hospital Authority Revenue, Friendsview Retirement Community, Series A, Refunding

      5.000 %      11/15/51        725,000        665,593  
          

 

 

  

Total Oregon

              1,173,911  
          

 

 

  

Pennsylvania - 4.3%

           

Allegheny County, PA, HDA Revenue, University Pittsburgh Medical Center, Series A, Refunding

      4.000 %      7/15/38        350,000        352,494  

Commonwealth Financing Authority, PA, Tobacco Master Settlement Payment Revenue, Series 2018

      5.000 %      6/1/33        200,000        219,530  

Cumberland County, PA, Municipal Authority Revenue:

           

Diakon Lutheran Social Ministries 2015, Refunding

      5.000 %      1/1/28        45,000        48,516 (c)  

 

See Notes to Schedule of Investments.

 

 

 

10

  

Western Asset Municipal High Income Fund Inc. 2022 Quarterly Report

  

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    July 31, 2022

 

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Pennsylvania - continued

           

Diakon Lutheran Social Ministries 2015, Refunding

      5.000 %      1/1/28      $ 105,000      $ 113,205 (c) 

Diakon Lutheran Social Ministries 2015, Refunding

      5.000 %      1/1/28        200,000        208,341  

Erie County, PA, Convention Center Authority Guaranteed Hotel Revenue, County Guaranty, Refunding

      5.000 %      1/15/36        750,000        790,383  

Lancaster, PA, IDA Revenue, Willow Valley Communities Project

      5.000 %      12/1/49        500,000        534,605  

Pennsylvania State Turnpike Commission Revenue, Subordinated, Series B, Refunding

      5.000 %      6/1/39        3,170,000        3,347,544  

Philadelphia, PA, Authority for IDR:

           

Charter School Revenue, A String Theory Charter School Project

      5.000 %      6/15/40        400,000        404,435  

City Service Agreement Revenue, Rebuild Project

      5.000 %      5/1/38        500,000        557,949  

Lease Revenue, Refunding

      5.000 %      10/1/30        250,000        292,237  
          

 

 

  

Total Pennsylvania

              6,869,239  
          

 

 

  

Puerto Rico - 2.0%

           

Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue:

           

CAB, Restructured, Series A-1

      0.000 %      7/1/27        240,000        202,750  

CAB, Restructured, Series A-1

      0.000 %      7/1/46        1,220,000        355,608  

Restructured, Series A-1

      4.550 %      7/1/40        50,000        50,411  

Restructured, Series A-1

      5.000 %      7/1/58        900,000        910,054  

Restructured, Series A-2

      4.329 %      7/1/40        330,000        327,529  

Restructured, Series A-2A

      4.550 %      7/1/40        1,380,000        1,391,343  
          

 

 

  

Total Puerto Rico

              3,237,695  
          

 

 

  

South Carolina - 0.2%

           

South Carolina State Jobs-EDA Hospital Facilities Revenue, Bon Secours Mercy Health, Inc., Refunding

      4.000 %      12/1/44        400,000        401,090  
          

 

 

  

Tennessee - 0.3%

           

Tennessee State Energy Acquisition Corp., Natural Gas Revenue, Series 2018

      4.000 %      11/1/25        400,000        410,663 (e)(f) 
          

 

 

  

Texas - 6.2%

           

Arlington, TX, Higher Education Finance Corp., Education Revenue, Uplift Education, Series A

      5.000 %      12/1/46        200,000        206,817  

Arlington, TX, Special Tax Revenue, Subordinated Lien, Series C, BAM

      5.000 %      2/15/41        500,000        520,336  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal High Income Fund Inc. 2022 Quarterly Report    

  

 

 

11

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    July 31, 2022

 

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Texas - continued

           

Austin, TX, Airport System Revenue:

           

Series 2022

      5.000 %      11/15/52      $ 300,000      $ 327,776 (a) 

Series B

      5.000 %      11/15/39        600,000        660,407 (a)  

Central Texas Regional Mobility Authority Revenue, Senior Lien, Series E

      4.000 %      1/1/50        500,000        493,177  

Gulf Coast, TX, IDA, Solid Waste Disposal Revenue, Citgo Petroleum Corp. Project

      4.875 %      5/1/25        1,000,000        998,021 (a)  

Love Field, TX, Airport Modernization Corp., General Airport Revenue:

           

Series 2017

      5.000 %      11/1/33        20,000        21,419 (a)  

Series 2017

      5.000 %      11/1/36        20,000        21,321 (a)  

New Hope Cultural Education Facilities Finance Corp., TX, Retirement Facility Revenue:

           

MRC Crestview, Refunding

      5.000 %      11/15/36        550,000        600,316 (c)  

Westminster Manor Project

      4.000 %      11/1/49        400,000        363,553  

Westminster Manor Project, Refunding

      5.000 %      11/1/40        1,000,000        1,036,667  

New Hope Cultural Education Facilities Finance Corp., TX, Student Housing Revenue, Collegiate Housing Stephenville II LLC, Tartleton State University Project, Series A

      5.000 %      4/1/39        1,165,000        1,227,816 (c) 

Newark, TX, Higher Education Finance Corp., Education Revenue, TLC Academy, Series A

      4.000 %      8/15/56        350,000        283,626  

Tarrant County, TX, Cultural Education Facilities Finance Corp., Retirement Facility Revenue, Buckner Retirement Services Inc. Project, Refunding

      5.000 %      11/15/37        700,000        750,972  

Texas State, Municipal Gas Acquisition & Supply Corp. I, Gas Supply Revenue, Senior Lien, Series D

      6.250 %      12/15/26        660,000        713,553  

Texas State Private Activity Bond Surface Transportation Corp. Revenue:

           

Senior Lien, Blueridge Transportation Group LLC

      5.000 %      12/31/40        1,000,000        1,020,021 (a) 

Senior Lien, Blueridge Transportation Group LLC

      5.000 %      12/31/50        500,000        506,185 (a)  

Willacy County, TX, Jail Public Facilities Corp. Project Revenue

      7.500 %      11/1/25        250,000        220,790  
          

 

 

  

Total Texas

              9,972,773  
          

 

 

  

 

See Notes to Schedule of Investments.

 

 

 

12

  

    Western Asset Municipal High Income Fund Inc. 2022 Quarterly Report

  

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    July 31, 2022

 

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Utah - 0.8%

           

Utah State Charter School Finance Authority, Charter School Revenue:

           

Summit Academy Inc., Series A, Refunding, UT CSCE

      5.000 %      4/15/39      $ 350,000      $ 387,140  

Syracuse Arts Academy Project, UT CSCE

      5.000 %      4/15/42        250,000        267,019  

Utah State Infrastructure Agency, Telecommunications Revenue, Series A

      5.250 %      10/15/33        550,000        578,374  
          

 

 

  

Total Utah

              1,232,533  
          

 

 

  

Virginia - 1.4%

           

Virginia State Port Authority, Port Facilities Revenue:

           

Series B, Refunding

      5.000 %      7/1/41        250,000        266,100 (a)  

Series B, Refunding

      5.000 %      7/1/45        300,000        317,873 (a)  

Virginia State Small Business Financing Authority Revenue:

           

National Senior Campuses, Inc., Series A, Refunding

      5.000 %      1/1/34        200,000        219,370  

Senior Lien, 95 Express Lanes LLC Project, Refunding

      5.000 %      1/1/37        1,000,000        1,096,772 (a) 

Senior Lien, I-495 HOT Lanes Project, Refunding

      5.000 %      12/31/47        250,000        267,947 (a)  
          

 

 

  

Total Virginia

              2,168,062  
          

 

 

  

Washington - 0.6%

           

Washington State Health Care Facilities Authority Revenue:

           

Commonspirit Health, Series B, Refunding

      5.000 %      8/1/26        250,000        268,826 (e)(f) 

Seattle Cancer Care Alliance

      4.000 %      12/1/40        370,000        373,349  

Seattle Cancer Care Alliance, Refunding

      5.000 %      9/1/50        250,000        264,930  
          

 

 

  

Total Washington

              907,105  
          

 

 

  

Wisconsin - 1.8%

           

Public Finance Authority, WI, Revenue:

           

Carmelite System Inc., Obligated Group, Series 2020, Refunding

      5.000 %      1/1/40        100,000        106,746  

Celanese Project, Series B, Refunding

      5.000 %      12/1/25        550,000        584,956 (a)  

Church Home of Hartford Inc. Project, Refunding

      5.000 %      9/1/38        250,000        248,352 (b)  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal High Income Fund Inc. 2022 Quarterly Report    

  

 

 

13

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    July 31, 2022

 

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Wisconsin - continued

           

Public Finance Authority, WI, Student Housing Revenue:

           

Appalachian State University Project, Series A, AGM

      4.000 %      7/1/45      $ 600,000      $ 604,327  

CHF Wilmington LLC, University of North Carolina at Wilmington Project, AGM

      5.000 %      7/1/53        1,000,000        1,053,886  

University of Hawai’i Foundation Project, Green Bonds, Series A-1

      4.000 %      7/1/51        280,000        255,782 (b)  
          

 

 

  

Total Wisconsin

              2,854,049  
          

 

 

  

TOTAL MUNICIPAL BONDS
(Cost - $147,491,305)

              148,696,298  
          

 

 

  
MUNICIPAL BONDS DEPOSITED IN TENDER OPTION BOND TRUST (i) -1.1%

 

      

New York - 1.1%

           

New York State Dormitory Authority, State Personal Income Tax Revenue, General Obligations Bonds, Series A
(Cost - $1,739,930)

      4.000 %      3/15/45        1,740,000        1,759,424  
          

 

 

  

TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS
(Cost - $149,231,235)

 

      150,455,722  
          

 

 

  
SHORT-TERM INVESTMENTS - 6.3%           
MUNICIPAL BONDS - 6.3%           

Florida - 0.1%

           

St. Lucie County, FL, Solid Waste Disposal Revenue, Florida Power & Light Co. Project, Refunding

      2.000 %      5/1/24        100,000        100,000 (a)(j)(k)  
          

 

 

  

Massachusetts - 0.1%

           

Massachusetts State HEFA Revenue, Baystate Medical Center, Series K-1, LOC - TD Bank N.A.

      1.900 %      7/1/39        100,000        100,000 (j)(k)  
          

 

 

  

Mississippi - 1.7%

           

Mississippi State Business Finance Corp., Gulf Opportunity Zone, IDR:

           

Chevron USA Inc. Project, Series B

      1.900 %      12/1/30        1,650,000        1,650,000 (j)(k) 

Chevron USA Inc. Project, Series B

      1.900 %      12/1/30        100,000        100,000 (j)(k)  

Chevron USA Inc. Project, Series B

      1.900 %      11/1/35        100,000        100,000 (j)(k)  

Chevron USA Inc. Project, Series C

      1.900 %      12/1/30        250,000        250,000 (j)(k)  

Chevron USA Inc. Project, Series C

      1.900 %      12/1/30        100,000        100,000 (j)(k)  

Chevron USA Inc. Project, Series G

      1.900 %      11/1/35        300,000        300,000 (j)(k)  

Chevron USA Inc. Project, Series L

      1.900 %      11/1/35        200,000        200,000 (j)(k)  
          

 

 

  

Total Mississippi

              2,700,000  
          

 

 

  

Nevada - 1.4%

           

Nevada State Housing Division, Multi Unit Housing Revenue, Series A LOC - FNMA, LIQ - FNMA

      1.500 %      4/15/33        2,250,000        2,250,000 (a)(j)(k) 
          

 

 

  

 

See Notes to Schedule of Investments.

 

 

 

14

  

    Western Asset Municipal High Income Fund Inc. 2022 Quarterly Report

  

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    July 31, 2022

 

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

New York - 0.6%

           

New York City, NY, Municipal Water Finance Authority, Water & Sewer System Revenue, Second General Resolution Fiscal 2014, Series AA-5, Refunding, SPA - Mizuho Bank Ltd.

      1.910 %      6/15/48      $ 100,000      $ 100,000 (j)(k) 

New York City, NY, TFA Revenue Future Tax Secured, Subordinated, Series A, SPA - JPMorgan Chase & Co.

      1.890 %      8/1/45        300,000        300,000 (j)(k) 

New York State Energy Research & Development Authority Facilities Revenue, Consolidated Edison Co. of New York Inc. Project, Subseries A-2, LOC - Bank of Nova Scotia

      1.460 %      6/1/36        500,000        500,000 (a)(j)(k) 

New York State Housing Finance Agency Revenue, 350 West 43rd Street, Series A LOC - Landesbank Hessen - Thueringen

      1.810 %      11/1/34        150,000        150,000 (a)(j)(k) 
          

 

 

  

Total New York

              1,050,000  
          

 

 

  

Oregon - 0.2%

           

Oregon State Facilities Authority Revenue:

           

Peacehealth, Series A, Refunding, LOC - U.S. Bank N.A.

      1.960 %      8/1/34        100,000        100,000 (j)(k) 

Peacehealth, Series B, Refunding, LOC - TD Bank N.A.

      1.960 %      8/1/34        300,000        300,000 (j)(k) 
          

 

 

  

Total Oregon

              400,000  
          

 

 

  

Pennsylvania - 0.1%

           

Philadelphia, PA, Authority for IDR, Gift of Life Donor Program Project, LOC - TD Bank N.A.

      1.440 %      12/1/34        100,000        100,000 (j)(k) 
          

 

 

  

Texas - 0.5%

           

Gulf Coast, TX, IDA Revenue, ExxonMobil Project

      1.890 %      11/1/41        355,000        355,000 (j)(k) 

Lower Neches Valley Authority, TX, Industrial Development Corp. Revenue, ExxonMobil Corp., Subordinated, Series B-4, Refunding

      1.930 %      3/1/33        500,000        500,000 (a)(j)(k) 
          

 

 

  

Total Texas

              855,000  
          

 

 

  

Utah - 1.6%

           

Murray City, UT, Hospital Revenue, IHC Health Services Inc., Series B, SPA - JPMorgan Chase & Co.

      1.890 %      5/15/37        2,500,000        2,500,000 (j)(k) 
          

 

 

  

TOTAL MUNICIPAL BONDS
(Cost - $10,055,000)

              10,055,000  
          

 

 

  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal High Income Fund Inc. 2022 Quarterly Report    

  

 

 

15

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    July 31, 2022

 

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     SHARES      VALUE  
MONEY MARKET FUNDS - 0.0%††        

Western Asset Premier Institutional Government Reserves, Premium Shares

(Cost - $79,916)

      1.979 %      79,916      $ 79,916 (l)  
       

 

 

  

TOTAL SHORT-TERM INVESTMENTS

(Cost - $10,134,916)

           10,134,916  
       

 

 

  

TOTAL INVESTMENTS - 100.6%

(Cost - $159,366,151)

           160,590,638  

TOB Floating Rate Notes - (0.8)%

           (1,305,000 ) 

Other Assets in Excess of Other Liabilities - 0.2%

           301,467  
       

 

 

  

TOTAL NET ASSETS - 100.0%

         $ 159,587,105  
       

 

 

  

 

††

Represents less than 0.1%.

 

*

Non-income producing security.

 

(a)

Income from this issue is considered a preference item for purposes of calculating the alternative minimum tax (“AMT”).

 

(b)

Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid pursuant to guidelines approved by the Board of Directors.

 

(c)

Pre-Refunded bonds are generally escrowed with U.S. government obligations and/or U.S. government agency securities.

 

(d)

The coupon payment on this security is currently in default as of July 31, 2022.

 

(e)

Maturity date shown represents the mandatory tender date.

 

(f)

Variable rate security. Interest rate disclosed is as of the most recent information available. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above.

 

(g)

Securities traded on a when-issued or delayed delivery basis.

 

(h)

Bonds are generally escrowed to maturity by government securities and/or U.S. government agency securities.

 

(i)

Represents securities deposited into a special purpose entity, referred to as a Tender Option Bond (“TOB”) trust.

 

(j)

Variable rate demand obligations (“VRDOs”) have a demand feature under which the Fund can tender them back to the issuer or liquidity provider on no more than 7 days notice. The interest rate generally resets on a daily or weekly basis and is determined on the specific interest rate reset date by the remarketing agent, pursuant to a formula specified in official documents for the VRDO, or set at the highest rate allowable as specified in official documents for the VRDO. VRDOs are benchmarked to the Securities Industry and Financial Markets Association (“SIFMA”) Municipal Swap Index. The SIFMA Municipal Swap Index is compiled from weekly interest rate resets of tax-exempt VRDOs reported to the Municipal Securities Rulemaking Board’s Short-term Obligation Rate Transparency System.

 

(k)

Maturity date shown is the final maturity date. The security may be sold back to the issuer before final maturity.

 

(l)

In this instance, as defined in the Investment Company Act of 1940, an “Affiliated Company” represents Fund ownership of at least 5% of the outstanding voting securities of an issuer, or a company which is under common ownership or control with the Fund. At July 31, 2022, the total market value of investments in Affiliated Companies was $79,916 and the cost was $79,916 (Note 2).

 

See Notes to Schedule of Investments.

 

 

 

16

  

    Western Asset Municipal High Income Fund Inc. 2022 Quarterly Report

  

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    July 31, 2022

 

Abbreviation(s) used in this schedule:

 

AGM    — Assured Guaranty Municipal Corporation - Insured Bonds
BAM    — Build America Mutual - Insured Bonds
CAB    — Capital Appreciation Bonds
CDA    — Communities Development Authority
CSCE    — Charter School Credit Enhancement
DFA    — Development Finance Agency
EDA    — Economic Development Authority
EDC    — Economic Development Corporation
EFA    — Educational Facilities Authority
FNMA    — Federal National Mortgage Association
GO    — General Obligation
HDA    — Housing Development Authority
HEFA    — Health & Educational Facilities Authority
IDA    — Industrial Development Authority
IDR    — Industrial Development Revenue
LIQ    — Liquidity Facility
LOC    — Letter of Credit
MFA    — Municipal Finance Authority
MTA    — Metropolitan Transportation Authority
NATL    — National Public Finance Guarantee Corporation - Insured Bonds
PCFA    — Pollution Control Financing Authority
PEA    — Public Energy Authority
PFA    — Public Facilities Authority
SPA    — Standby Bond Purchase Agreement - Insured Bonds
TFA    — Transitional Finance Authority

This Schedule of Investments is unaudited and is intended to provide information about the Fund’s investments as of the date of the schedule. Other information regarding the Fund is available in the Fund’s most recent annual or semi-annual shareholder report.

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal High Income Fund Inc. 2022 Quarterly Report    

  

 

 

17

Notes to Schedule of Investments (unaudited)

 

1. Organization and significant accounting policies

Western Asset Municipal High Income Fund Inc. (the “Fund”) was incorporated in Maryland and is registered as a diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund seeks high current income exempt from federal income taxes. The Fund seeks to achieve its investment objective by investing primarily in intermediate and long-term municipal debt securities issued by state and local governments (“municipal obligations”). However, the Fund may invest in municipal obligations of any maturity. The Fund may invest up to 100% of its assets in municipal obligations rated below investment grade (commonly referred to as “junk bonds”).

The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”).

(a) Investment valuation. The valuations for fixed income securities (which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and certain derivative instruments are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing services typically use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Investments in open-end funds are valued at the closing net asset value per share of each fund on the day of valuation. If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the manager to be unreliable, the market price may be determined by the manager using quotations from one or more broker/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved by the Fund’s Board of Directors.

The Board of Directors is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Global Fund Valuation Committee (the “Valuation Committee”). The Valuation Committee, pursuant to the policies adopted by the Board of Directors, is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Board of Directors. When determining the reliability of third party pricing information for investments owned by the Fund, the Valuation Committee, among other things, conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.

 

 

 

18

    

Notes to Schedule of Investments (unaudited) (cont’d)

 

The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuer’s financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts’ research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.

For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Directors, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such back testing monthly and fair valuation occurrences are reported to the Board of Directors quarterly.

The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.

GAAP establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are summarized in the three broad levels listed below:

 

  •  

Level 1 – unadjusted 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, etc.)

 

  •  

Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

 

   

 

 

19

Notes to Schedule of Investments (unaudited) (cont’d)

 

The following is a summary of the inputs used in valuing the Fund’s assets carried at fair value:

 

ASSETS

  

DESCRIPTION

    QUOTED PRICES
(LEVEL 1)		      OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2)		      SIGNIFICANT
UNOBSERVABLE
INPUTS
(LEVEL 3)		      TOTAL  

Long-Term Investments†:

            

Municipal Bonds

      —        $ 148,696,298        —        $ 148,696,298  

Municipal Bonds Deposited in Tender Option Bond Trust

      —          1,759,424        —          1,759,424  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Long-Term Investments

      —          150,455,722        —          150,455,722  
  

 

 

     

 

 

     

 

 

     

 

 

  

Short-Term Investments†:

            

Municipal Bonds

      —          10,055,000        —          10,055,000  

Money Market Funds

    $ 79,916        —          —          79,916  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Short-Term Investments

      79,916        10,055,000        —          10,134,916  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 79,916      $ 160,510,722        —        $ 160,590,638  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

†

See Schedule of Investments for additional detailed categorizations.

2. Transactions with affiliated company

As defined by the 1940 Act, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control with the Fund. The following company was considered an affiliated company for all or some portion of the period ended July 31, 2022. The following transactions were effected in such company for the period ended July 31, 2022.

 

     Affiliate
Value at
October 31,
2021		      Purchased      Sold      Realized
Gain (Loss)		      Dividend
Income		      Net Increase
(Decrease) in
Unrealized
Appreciation
(Depreciation)		      Affiliate
Value at
July 31,
2022		  
     Cost      Shares      Cost      Shares  
Western Asset Premier Institutional Government Reserves, Premium Shares    $ 68,828      $ 3,165,653        3,165,653      $ 3,154,565        3,154,565        —        $ 150        —        $ 79,916  

 

 

 

20