The following constitutes Amendment No. 1 ("Amendment No. 1") to the Schedule 13D filed by the undersigned. This Amendment amends the original Schedule 13D as specifically set forth.
Item 3. Source and Amount of Funds or Other Considerations. KIM, an independent investment advisor, has accumulated 1,507,812 shares of the Western Asset Inflation Management Fund Inc. on behalf of accounts that are managed by KIM (the “Accounts”) under limited powers of attorney, which represents 21.35% of the outstanding shares. All funds that have been utilized in making such purchases are from such Accounts. Item 4. Purpose of Transaction. KIM has purchased Shares for the Accounts for investment purposes. However, KIM reserves the right to contact management with regard to concerns that they have with respect to the Fund. This may include letters to the Board and/or other communications with Fund management. Being an independent registered investment advisor, with a specialty focus in closed end funds, the profile of Western Asset Inflation Management Fund Inc. fit the investment guidelines for various Accounts. Shares have been acquired since April 20, 2005. Item 5. Interest in Securities of the Issuer. (a) As of the date of this Report, KIM represents beneficial ownership of 1,507,812 shares or 21.35% of the outstanding shares. George W. Karpus presently owns 537 shares. Mr. Karpus purchased shares on March 14, 2008 at $17.06 (320 shares), March 17, 2008 at $16.92 (110 shares), March 18, 2008 at $16.86 (60 shares), and on March 19, 2008 at $16.91 (90 shares). Mr. Karpus sold shares on July 23, 2008 at $18.32 (43 shares). Karpus Investment Management Defined Benefit Plan presently owns 3,500 shares. The Defined Benefit Plan purchased shares on August 27, 2007 at $15.90 (1800 shares), August 22, 2008 at $16.05 (1450 shares), and on August 15, 2011 at $17.70 (600 shares). The Defined Benefit Plan sold shares on January 25, 2008 at $18.63 (124 shares), July 23, 2008 at $18.32 (126 shares), and on December 2, 2010 at $17.75 (100 shares). Karpus Investment Management Profit Sharing Plan presently owns 6,900 shares. The Profit Sharing Plan purchased shares on November 16, 2006 at $15.83 (600 shares), August 8, 2007 at $15.67 (100 shares), August 9, 2007 at $15.67 (100 shares), August 10, 2007 at $15.67 (800 shares), September 25, 2008 at $14.55 (25 shares), September 29, 2008 at $14.66 (375 shares), October 10, 2008 at $13.35 (2375 shares), August 31, 2011 at $17.56 (1500 shares), September 21, 2011 at $17.65 (194 shares), November 15, 2011 at $17.56 (200 shares), and on May 17, 2012 at $17.80 (500 shares). On October 9, 2006, 1269 shares were transferred into the Profit Sharing Plan. The Profit Sharing Plan sold shares on January 25, 2007 at $17.08 (154 shares), July 31, 2007 at $17.17 (124 shares), January 25, 2008 at $18.63 (179 shares), July 23, 2008 at $18.32 (181 shares), February 12, 2009 at $15.75 (100 shares), May 26, 2009 at $15.86 (100 shares), December 2, 2010 at $17.75 (200 shares), and on December 3, 2010 $17.82 (100 shares). None of the other principals of KIM presently own shares of Western Asset Inflation Management Fund Inc. (b) KIM has the sole power to dispose of and to vote all of such Shares under limited powers of attorney. (c) Open market transactions for the last 60 days for the Accounts. There have been no dispositions and no acquisitions, other than by such open market transactions: