NPORT-EX 2 LMF5000WAMuniDefOppTR.htm HTML

WESTERN ASSET MUNICIPAL DEFINED OPPORTUNITY TRUST INC.

 

Schedule of investments (unaudited)    August 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  
MUNICIPAL BONDS - 99.4%           

Alabama - 6.7%

           

Hoover, AL, IDA Revenue, United States Steel Corp. Project, Series 2019

      5.750 %      10/1/49      $ 200,000      $ 174,314 (a)  

Jefferson County, AL, Sewer Revenue, Convertible CAB, Subordinated Lien, Warrants, Step bond, Series F (0.000% until 10/1/23; 7.900%)

      0.000 %      10/1/50        9,470,000        9,255,504  

Lower Alabama Gas District, Natural Gas Revenue:

           

Gas District #2

      4.000 %      12/1/24        1,000,000        1,136,770  

Gas Project #2

      4.000 %      12/1/25        1,000,000        1,162,660  

Series A

      5.000 %      9/1/46        1,750,000        2,470,213  

Southeast Alabama Gas Supply District, Gas Supply Revenue, Series 2018A

      4.000 %      6/1/24        1,870,000        2,071,193 (b)(c) 

Tuscaloosa County, AL, IDA Revenue, Hunt Refining Project, Series A, Refunding

      4.500 %      5/1/32        700,000        767,802 (d)  
          

 

 

  

Total Alabama

              17,038,456  
          

 

 

  

Alaska - 0.1%

           

Alaska State Housing Finance Corp. Revenue, State Capital Project II, Series B

      5.000 %      12/1/37        250,000        311,310  
          

 

 

  

Arizona - 5.5%

           

Arizona State IDA Revenue, Lincoln South Beltway Project, Series 2020

      5.000 %      2/1/27        500,000        625,490  

Chandler, AZ, IDA Revenue, Intel Corp. Project

      2.700 %      8/14/23        2,000,000        2,107,420 (a)(b)(c) 

La Paz County, AZ, IDA Revenue, Charter

           

School Solutions, Harmony Pub, Series A

      5.000 %      2/15/48        1,000,000        1,102,160  

Navajo Nation, AZ, Series A, Refunding

      5.000 %      12/1/25        350,000        386,498 (d)  

Phoenix, AZ, Civic Improvement Corp., Water System Revenue, Junior Lien, Series A

      5.000 %      7/1/44        250,000        326,235  

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

      5.000 %      12/1/32        7,110,000        9,371,975  
          

 

 

  

Total Arizona

              13,919,778  
          

 

 

  

California - 11.3%

           

California State Health Facilities Financing Authority Revenue, Stanford Health Care, Series A, Refunding

      4.000 %      8/15/50        250,000        290,755  

California State MFA Revenue:

           

Senior Lien, LINXS APM Project, Series A

      5.000 %      12/31/43        500,000        574,540 (a)  

Senior Lien, LINXS APM Project, Series A

      5.000 %      12/31/47        600,000        686,604 (a)  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal Defined Opportunity Trust Inc. 2020 Quarterly Report    

  

 

 

1

WESTERN ASSET MUNICIPAL DEFINED OPPORTUNITY TRUST INC.

 

Schedule of investments (unaudited) (cont’d)    August 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

California - (continued)

           

California State MFA, Lease Revenue, Orange County, CA, Civic Center Infrastructure Improvement Program

      5.000 %      6/1/43      $ 1,000,000      $ 1,204,540  

California State PCFA Water Furnishing Revenue, Poseidon Resources Desalination Project

      5.000 %      11/21/45        3,500,000        3,637,620 (a)(d) 

California State, GO:

           

Various Purpose

      5.000 %      3/1/36        250,000        329,635  

Various Purpose, Refunding

      4.000 %      11/1/36        250,000        295,817  

Various Purpose, Refunding

      4.000 %      3/1/40        1,000,000        1,201,410  

California Statewide CDA Revenue, Provident Group-Pomona Properties LLC, Series A

      5.600 %      1/15/36        780,000        795,522 (d)  

Golden State, CA, Tobacco Securitization Corp. Revenue:

           

Tobacco Settlement Funded, Series A-1, Refunding

      5.250 %      6/1/47        975,000        1,005,625  

Tobacco Settlement Funded, Series A-2, Refunding

      5.000 %      6/1/47        125,000        128,528  

Los Angeles, CA, Department of Airports Revenue:

           

Los Angeles International Airport, Subordinated, Series C

      5.000 %      5/15/44        500,000        593,445 (a)  

Los Angeles International Airport, Subordinated, Series D

      5.000 %      5/15/49        1,100,000        1,318,581 (a) 

Los Angeles, CA, Department of Water & Power Waterworks Revenue, Series A

      5.000 %      7/1/48        1,000,000        1,241,440  

Lower Tule River, CA, Irrigation District Revenue, COP, Series A

      5.000 %      8/1/40        1,000,000        1,003,090  

Metropolitan Water District of Southern California, Water Revenue, Refunding

      5.000 %      1/1/37        3,500,000        4,527,915  

Morongo Band of Mission Indians, CA, Revenue, Tribal Economic Development, Series A

      5.000 %      10/1/42        125,000        137,173 (d)  

M-S-R Energy Authority, CA, Natural Gas Revenue, Series C

      6.125 %      11/1/29        1,975,000        2,517,730  

River Islands, CA, Public Financing Authority Special Tax, Community Facilities District No. 2003-1, Series A-1, Refunding

      5.000 %      9/1/27        670,000        722,300  

Riverside, CA, Electric Revenue, Series A, Refunding

      5.000 %      10/1/38        500,000        641,695  

 

See Notes to Schedule of Investments.

 

 

 

2

  

    Western Asset Municipal Defined Opportunity Trust Inc. 2020 Quarterly Report

  

WESTERN ASSET MUNICIPAL DEFINED OPPORTUNITY TRUST INC.

 

Schedule of investments (unaudited) (cont’d)    August 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

California - (continued)

           

Riverside, CA, Sewer Revenue, Series A, Refunding

      5.000 %      8/1/36      $ 1,000,000      $ 1,272,290  

San Bernardino, CA, USD Revenue, COP, 2019 School Financing Project, AGM

      5.000 %      10/1/36        300,000        378,126  

San Diego County, CA, Regional Transportation Commission, Sales Tax Revenue, Series A

      5.000 %      4/1/48        1,000,000        1,201,540  

San Mateo County, CA, Joint Powers Financing Authority Lease Revenue, Capital Project, Series A

      5.000 %      7/15/43        500,000        620,365  

Southern California Water Replenishment District, Financing Authority, Replenishment Revenue, Series 2018

      5.000 %      8/1/48        1,515,000        1,867,404  

Stockton, CA, PFA Wastewater Revenue, BAN, Series 2019

      1.400 %      6/1/22        250,000        249,827  

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

      5.000 %      6/1/23        300,000        335,910  
          

 

 

  

Total California

              28,779,427  
          

 

 

  

Colorado - 2.5%

           

Base Village Metropolitan District #2, CO, GO, Series A, Refunding

      5.750 %      12/1/46        500,000        517,430  

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

      5.000 %      12/31/51        200,000        216,368  

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

      6.125 %      11/15/23        5,015,000        5,479,289  
          

 

 

  

Total Colorado

              6,213,087  
          

 

 

  

Connecticut - 1.6%

           

Connecticut State Special Tax Revenue:

           

Special Tax Obligation Bonds, Series A

      5.000 %      5/1/40        1,000,000        1,263,300  

Transportation Infrastructure, Series A

      5.000 %      1/1/37        500,000        611,385  

Connecticut State, GO:

           

Series A

      4.000 %      4/15/37        600,000        699,144  

Series E

      5.000 %      10/15/34        280,000        337,532  

University of Connecticut, Student Fee Revenue, Series A

      5.000 %      11/15/43        1,000,000        1,221,950  
          

 

 

  

Total Connecticut

              4,133,311  
          

 

 

  

Delaware - 0.2%

           

Delaware State Health Facilities Authority Revenue, Series 2018

      5.000 %      6/1/43        500,000        580,385  
          

 

 

  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal Defined Opportunity Trust Inc. 2020 Quarterly Report    

  

 

 

3

WESTERN ASSET MUNICIPAL DEFINED OPPORTUNITY TRUST INC.

 

Schedule of investments (unaudited) (cont’d)    August 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

District of Columbia - 0.3%

           

District of Columbia Revenue, Ingleside Rock Creek Project, Series A

      4.125 %      7/1/27      $ 250,000      $ 244,528  

District of Columbia Water & Sewer Authority Revenue, Subordinated Lien, Series C

      1.750 %      10/1/24        500,000        519,630 (b)(c) 
          

 

 

  

Total District of Columbia

              764,158  
          

 

 

  

Florida - 1.4%

           

Broward County, FL, Airport System Revenue, Series A

      5.000 %      10/1/45        750,000        849,487 (a)  

Greater Orlando, FL, Aviation Authority, Airport Facilities Revenue, Priority Subordinated, Series A

      5.000 %      10/1/42        500,000        586,605 (a)  

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

      5.000 %      10/1/49        1,000,000        1,202,710 (a) 

Miami-Dade County, FL, Health Facilities Authority, Hospital Revenue, Nicklaus Children’s Hospital, Refunding

      5.000 %      8/1/42        350,000        413,357  

Orange County, FL, Health Facilities Authority Revenue, Presbyterian Retirement Communities, Refunding

      5.000 %      8/1/47        250,000        272,273  

Palm Beach County, FL, Health Facilities Authority Revenue, Acts Retirement-Life Communities

      5.000 %      11/15/45        250,000        285,567  
          

 

 

  

Total Florida

              3,609,999  
          

 

 

  

Georgia - 0.4%

           

Fulton County, GA, Development Authority Revenue, Georgia Institute of Technology

      5.000 %      6/15/44        250,000        308,470  

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

      5.000 %      5/15/43        650,000        769,048  
          

 

 

  

Total Georgia

              1,077,518  
          

 

 

  

Idaho - 0.1%

           

Idaho State Health Facilities Authority Revenue, Trinity Health Credit Group, Series A

      5.000 %      12/1/47        300,000        359,706  
          

 

 

  

Illinois - 13.1%

           

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

      5.000 %      4/1/42        500,000        552,585  

Chicago, IL, Board of Education, GO:

           

Dedicated, Series G, Refunding

      5.000 %      12/1/34        360,000        402,235  

Series C, Refunding

      5.000 %      12/1/24        250,000        277,780  

Series D

      5.000 %      12/1/46        2,000,000        2,196,600  

 

See Notes to Schedule of Investments.

 

 

 

4

  

    Western Asset Municipal Defined Opportunity Trust Inc. 2020 Quarterly Report

  

WESTERN ASSET MUNICIPAL DEFINED OPPORTUNITY TRUST INC.

 

Schedule of investments (unaudited) (cont’d)    August 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Illinois - (continued)

           

Chicago, IL, GO:

           

Series A

      5.000 %      1/1/44      $ 300,000      $ 328,740  

Series A, Refunding

      5.000 %      1/1/26        750,000        843,300  

Series A, Refunding

      6.000 %      1/1/38        500,000        577,150  

Series B, Refunding

      5.500 %      1/1/30        1,685,000        1,864,621  

Series C, Refunding

      5.000 %      1/1/25        250,000        276,675  

Chicago, IL, Motor Fuel Tax Revenue, Refunding

      5.000 %      1/1/26        1,000,000        1,058,560  

Chicago, IL, O’Hare International Airport Revenue:

           

General Senior Lien, Series B, Refunding

      5.000 %      1/1/35        250,000        289,957  

Senior Lien, Series D

      5.000 %      1/1/47        500,000        577,420  

Senior Lien, Series D

      5.000 %      1/1/52        500,000        575,480  

Series D, Refunding

      5.000 %      1/1/46        2,000,000        2,289,640  

Trips Obligated Group

      5.000 %      7/1/48        200,000        226,258 (a)  

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

           

Second Lien

      5.000 %      12/1/51        250,000        284,802  

Second Lien, Series A, Refunding

      5.000 %      12/1/55        500,000        597,560 (e)  

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

      5.000 %      1/1/36        750,000        876,052  

Chicago, IL, Waterworks Revenue:

           

Second Lien, Series 2017, Refunding

      5.000 %      11/1/29        600,000        737,004  

Second Lien, Series 2017-2, Refunding, AGM

      5.000 %      11/1/32        2,050,000        2,445,937  

Illinois State Finance Authority Revenue:

           

Northshore University Health System, Refunding

      4.000 %      8/15/40        600,000        699,474  

Southern Illinois Healthcare Enterprises Inc., Refunding

      5.000 %      3/1/31        600,000        728,496  

Southern Illinois Healthcare Enterprises Inc., Refunding

      5.000 %      3/1/32        300,000        362,433  

Illinois State Sports Facilities Authority Revenue:

           

State Tax Supported, Series 2019, Refunding

      5.000 %      6/15/30        250,000        283,193  

State Tax Supported, Series 2019, Refunding, BAM

      5.000 %      6/15/30        250,000        297,992  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal Defined Opportunity Trust Inc. 2020 Quarterly Report    

  

 

 

5

WESTERN ASSET MUNICIPAL DEFINED OPPORTUNITY TRUST INC.

 

Schedule of investments (unaudited) (cont’d)    August 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Illinois - (continued)

           

Illinois State Toll Highway Authority Revenue:

           

Series C, Refunding

      5.000 %      1/1/25      $ 900,000      $ 1,070,271  

Series C, Refunding

      5.000 %      1/1/26        1,200,000        1,471,860  

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

      5.000 %      4/1/37        100,000        118,839  

Illinois State, GO:

           

Series 2006

      5.500 %      1/1/30        50,000        60,435  

Series 2016, Refunding

      5.000 %      2/1/26        400,000        449,708  

Series 2016, Refunding

      5.000 %      2/1/29        600,000        674,922  

Series A

      5.000 %      5/1/36        250,000        277,383  

Series A

      5.000 %      5/1/39        500,000        550,190  

Series A, Refunding

      5.000 %      10/1/29        1,600,000        1,839,808  

Series A, Refunding

      5.000 %      10/1/30        150,000        171,464  

Series B, Refunding

      5.000 %      9/1/27        600,000        687,408  

Series D

      5.000 %      11/1/27        900,000        1,017,081  

Metropolitan Pier & Exposition Authority, IL, Dedicated State Revenue:

           

McCormick Place Expansion Project, Series A, Refunding

      4.000 %      6/15/50        1,500,000        1,540,965  

McCormick Place Expansion Project, Series A, Refunding

      5.000 %      6/15/50        1,800,000        2,028,942  

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

      6.000 %      7/1/29        1,340,000        1,735,287  
          

 

 

  

Total Illinois

              33,344,507  
          

 

 

  

Indiana - 4.3%

           

Indiana State Finance Authority Hospital Revenue, Indiana University Health Obligated Group, Series B, Refunding

      1.650 %      7/1/22        10,000,000        10,126,900 (b)(c) 

Indiana State Finance Authority Wastewater Utility Revenue, Green Bonds, CWA Authority Project, Series A

      5.000 %      10/1/41        675,000        801,454  
          

 

 

  

Total Indiana

              10,928,354  
          

 

 

  

Iowa - 0.1%

           

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

      3.125 %      12/1/22        165,000        167,092  
          

 

 

  

Kentucky - 1.6%

           

Kentucky State PEA, Gas Supply Revenue:

           

Series A

      4.000 %      6/1/26        1,500,000        1,742,760 (b)(c) 

Series C

      4.000 %      6/1/25        2,000,000        2,263,620 (b)(c) 
          

 

 

  

Total Kentucky

              4,006,380  
          

 

 

  

 

See Notes to Schedule of Investments.

 

 

 

6

  

    Western Asset Municipal Defined Opportunity Trust Inc. 2020 Quarterly Report

  

WESTERN ASSET MUNICIPAL DEFINED OPPORTUNITY TRUST INC.

 

Schedule of investments (unaudited) (cont’d)    August 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Louisiana - 0.6%

           

Port New Orleans, LA, Board of Commissioners Revenue, Series B, Refunding, AGM

      5.000 %      4/1/43      $ 500,000      $ 596,970 (a) 

St. John the Baptist Parish, LA, State Revenue:

           

Marathon Oil Corp. Project, Refunding

      2.125 %      7/1/24        500,000        503,210 (b)(c) 

Marathon Oil Corp. Project, Refunding

      2.200 %      7/1/26        400,000        401,960 (b)(c) 
          

 

 

  

Total Louisiana

              1,502,140  
          

 

 

  

Maryland - 0.6%

           

Howard County, MD, Housing Commission Revenue, Columbia Commons Apartments, Series A

      5.000 %      6/1/44        1,350,000        1,466,289  
          

 

 

  

Massachusetts - 0.4%

           

Massachusetts State DFA Revenue, Wellforce Issue, Series A, Refunding

      5.000 %      7/1/44        250,000        288,090  

Massachusetts State Port Authority Revenue, Series A, Refunding

      5.000 %      7/1/36        500,000        624,785 (a)  
          

 

 

  

Total Massachusetts

              912,875  
          

 

 

  

Michigan - 2.6%

           

Detroit, MI, Downtown Development Authority, Tax Increment Revenue, Series A, Refunding, AGM

      5.000 %      7/1/38        400,000        450,976  

Detroit, MI, Water Supply System Revenue, Second Lien, Series B, Unrefunded, AGM

      6.250 %      7/1/36        5,000        5,023  

Michigan State Finance Authority Limited Obligation Revenue, Higher Education, Thomas M Cooley Law School Project, Refunding

      6.000 %      7/1/24        1,200,000        1,239,720 (d) 

Michigan State Finance Authority Revenue:

           

Local Government Loan Program, Detroit, MI, Water & Sewer Department, Second Lien Local Project, Series C, Refunding

      5.000 %      7/1/33        350,000        412,055  

Local Government Loan Program, Detroit, MI, Water & Sewer Department, Series C-6, Refunding

      5.000 %      7/1/33        410,000        466,842  

Michigan State Hospital Finance Authority Revenue, Ascension Health Senior Credit Group, Series 2010F-4

      5.000 %      11/15/47        1,000,000        1,260,160  

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

      5.000 %      12/31/43        400,000        448,840 (a)  

Royal Oak, MI, Hospital Finance Authority Revenue, Beaumont Health Credit Group, Series D, Refunding

      5.000 %      9/1/39        2,000,000        2,220,500  
          

 

 

  

Total Michigan

              6,504,116  
          

 

 

  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal Defined Opportunity Trust Inc. 2020 Quarterly Report    

  

 

 

7

WESTERN ASSET MUNICIPAL DEFINED OPPORTUNITY TRUST INC.

 

Schedule of investments (unaudited) (cont’d)    August 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Missouri - 0.2%

           

Missouri State Health Senior Living Facilities Revenue, Lutheran Senior Services Projects, Series A

      5.000 %      2/1/34      $ 150,000      $ 164,201  

St. Louis County, MO, IDA, Senior Living Facilities Revenue, Friendship Village, St. Louis Obligated Group, Series A

      5.000 %      9/1/38        350,000        376,649  
          

 

 

  

Total Missouri

              540,850  
          

 

 

  

New Jersey - 4.6%

           

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

      5.000 %      12/1/24        635,000        665,810 (a)  

New Jersey State EDA Revenue:

           

School Facilities Construction, Series BBB, Refunding

      5.500 %      6/15/31        250,000        296,635  

Series DDD

      5.000 %      6/15/34        1,500,000        1,719,255  

Transit Transportation Project, Series A

      5.000 %      11/1/32        500,000        600,330  

New Jersey State EDA, Lease Revenue, State House Project, Series B

      5.000 %      6/15/43        4,000,000        4,635,160  

New Jersey State EDA, Special Facility Revenue, Port Newark Container Terminal LLC Project, Refunding

      5.000 %      10/1/37        200,000        221,042 (a)  

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

      5.000 %      7/1/38        125,000        150,490  

New Jersey State Transportation Trust Fund Authority Revenue:

           

Federal Highway Reimbursement, Series A, Refunding

      5.000 %      6/15/29        750,000        872,333  

Transportation Program, Series AA

      5.250 %      6/15/43        500,000        588,570  

Transportation Program, Series BB

      4.000 %      6/15/36        250,000        268,745  

Transportation System, Series A, Refunding

      5.000 %      12/15/25        525,000        613,100  

Transportation System, Series A, Refunding

      5.000 %      12/15/28        725,000        883,449  

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

      5.250 %      6/1/46        200,000        236,964  
          

 

 

  

Total New Jersey

              11,751,883  
          

 

 

  

New York - 19.8%

           

Long Island, NY, Power Authority Electric System Revenue, Series B, Refunding

      1.650 %      9/1/24        1,500,000        1,547,565 (b)(c) 

MTA, NY, Dedicated Tax Fund Revenue, Green Bonds, Subseries A-2

      5.000 %      11/15/47        500,000        577,930  

 

See Notes to Schedule of Investments.

 

 

 

8

  

    Western Asset Municipal Defined Opportunity Trust Inc. 2020 Quarterly Report

  

WESTERN ASSET MUNICIPAL DEFINED OPPORTUNITY TRUST INC.

 

Schedule of investments (unaudited) (cont’d)    August 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

New York - (continued)

           

MTA, NY, Transportation Revenue, Green Bond, Series A-2

      5.000 %      5/15/30      $ 550,000      $ 637,631 (b)(c) 

New York Convention Center Development Corp. Revenue, CAB, Subordinated Lien, Hotel Unit Fee Secured, Series B

      0.000 %      11/15/32        2,000,000        1,398,000  

New York State Dormitory Authority, School Districts Revenue Financing Program, Series A, AGM

      5.000 %      10/1/29        1,000,000        1,295,850  

New York State Dormitory Authority, Sales Tax Revenue:

           

Group 3, Series E, Refunding

      5.000 %      3/15/38        3,000,000        3,756,000  

Group 4, Series E, Refunding

      5.000 %      3/15/44        10,000,000        12,336,600  

New York State Dormitory Authority, State Personal Income Tax Revenue, Bidding Group 4, Series A, Refunding

      5.000 %      3/15/44        1,000,000        1,228,480  

New York State Liberty Development Corp., Liberty Revenue, 3 World Trade Center Project, Class 1, Refunding

      5.000 %      11/15/44        575,000        610,253 (d)  

New York State Liberty Development Corp., Revenue, Goldman Sachs Headquarters, Refunding

      5.250 %      10/1/35        2,500,000        3,489,025  

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

      5.000 %      1/1/46        1,000,000        1,147,340  

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

           

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

      5.000 %      1/1/30        600,000        664,146 (a)  

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

      5.000 %      1/1/32        2,605,000        2,855,940 (a) 

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

      5.000 %      1/1/33        2,750,000        2,998,820 (a) 

LaGuardia Airport Terminal B Redevelopment Project, Series A

      5.000 %      7/1/41        2,500,000        2,697,450 (a) 

LaGuardia Airport Terminal B Redevelopment Project, Series A

      5.000 %      7/1/46        500,000        536,180 (a)  

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

      4.000 %      7/15/55        1,100,000        1,225,257 (a) 

Port Authority of New York & New Jersey, Special Obligation Revenue, JFK International Air Terminal LLC

      5.500 %      12/1/31        7,925,000        8,021,685  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal Defined Opportunity Trust Inc. 2020 Quarterly Report    

  

 

 

9

WESTERN ASSET MUNICIPAL DEFINED OPPORTUNITY TRUST INC.

 

Schedule of investments (unaudited) (cont’d)    August 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

New York - (continued)

           

Triborough Bridge & Tunnel Authority, NY, Revenue:

           

General-MTA Bridges & Tunnels, Series A

      5.000 %      11/15/49      $ 1,000,000      $ 1,265,810  

General-MTA Bridges & Tunnels, Series A

      5.000 %      11/15/54        1,700,000        2,141,269 (f)  
          

 

 

  

Total New York

              50,431,231  
          

 

 

  

North Carolina - 0.7%

           

Charlotte, NC, Airport Revenue, Charlotte Douglas International Airport, Series A, Refunding

      5.000 %      7/1/49        500,000        615,515  

Charlotte, NC, Lease Revenue, COP, Convention Facility Project, Series A, Refunding

      4.000 %      6/1/49        250,000        285,930  

North Carolina State Turnpike Authority, Triangle Expressway System Revenue, Senior Lien, Refunding

      5.000 %      1/1/30        100,000        119,217  

North Carolina State Turnpike Authority Revenue, Series A, Refunding

      5.000 %      7/1/54        750,000        840,795  
          

 

 

  

Total North Carolina

              1,861,457  
          

 

 

  

Ohio - 0.9%

           

Buckeye, OH, Tobacco Settlement Financing Authority Revenue:

           

Senior Bonds, Series A-2, Refunding

      4.000 %      6/1/48        350,000        387,174  

Senior Bonds, Series B-2, Refunding

      5.000 %      6/1/55        1,200,000        1,320,000  

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

      2.500 %      10/1/29        500,000        529,440 (a)(b)(c) 
          

 

 

  

Total Ohio

              2,236,614  
          

 

 

  

Oklahoma - 0.0%††

           

Oklahoma State Turnpike Authority Revenue, Second Series C

      5.000 %      1/1/47        40,000        47,566  

Payne County, OK, EDA Revenue, Epworth Living at The Ranch, Series A

      6.250 %      11/1/31        113,130        283 *(g)  
          

 

 

  

Total Oklahoma

              47,849  
          

 

 

  

Oregon - 0.4%

           

Oregon State Facilities Authority Revenue, Legacy Health Project, Series A, Refunding

      5.000 %      6/1/46        650,000        747,195  

Port of Portland, OR, Airport Revenue, Portland International Airport, Series C

      5.000 %      7/1/24        300,000        345,849 (a)  
          

 

 

  

Total Oregon

              1,093,044  
          

 

 

  

Pennsylvania - 2.0%

           

Commonwealth Financing Authority, PA, Tobacco Master Settlement Payment Revenue

      5.000 %      6/1/30        250,000        317,463  

 

See Notes to Schedule of Investments.

 

 

 

10

  

    Western Asset Municipal Defined Opportunity Trust Inc. 2020 Quarterly Report

  

WESTERN ASSET MUNICIPAL DEFINED OPPORTUNITY TRUST INC.

 

Schedule of investments (unaudited) (cont’d)    August 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Pennsylvania - (continued)

           

Cumberland County, PA, Municipal Authority Revenue, Diakon Lutheran Social Ministries Project, Refunding

      5.000 %      1/1/27      $ 1,000,000      $ 1,084,000  

Pennsylvania State Economic Development Financing Authority, Solid Waste Disposal Revenue, Waste Management Inc. Project

      2.150 %      7/1/24        350,000        364,280 (a)(b)(c) 

Philadelphia, PA, Authority for IDR:

           

City Service Agreement Revenue, Rebuild Project

      5.000 %      5/1/35        1,000,000        1,210,770  

Lease Revenue, Refunding

      5.000 %      10/1/30        350,000        453,120  

Philadelphia, PA, GO, Series B

      5.000 %      2/1/37        500,000        629,240  

State Public School Building Authority, PA, Lease Revenue:

           

Philadelphia School District Project, Series A, Refunding, AGM, State Aid Withholding

      5.000 %      6/1/31        200,000        242,976  

Philadelphia School District Project, Series A, Refunding, AGM, State Aid Withholding

      5.000 %      6/1/33        550,000        661,974  
          

 

 

  

Total Pennsylvania

              4,963,823  
          

 

 

  

Puerto Rico - 3.0%

           

Puerto Rico Commonwealth Aqueduct & Sewer Authority Revenue, Senior Lien, Series A

      5.250 %      7/1/42        1,200,000        1,234,500  

Puerto Rico Electric Power Authority Revenue:

           

Series A

      5.000 %      7/1/42        440,000        303,600 *(g) 

Series A

      5.050 %      7/1/42        100,000        69,000 *(g)  

Series XX

      5.250 %      7/1/40        920,000        635,950 *(g) 

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

           

CAB, Restructured, Series A-1

      0.000 %      7/1/27        290,000        246,381  

CAB, Restructured, Series A-1

      0.000 %      7/1/46        320,000        91,798  

CAB, Restructured, Series A-1

      0.000 %      7/1/51        2,650,000        547,808  

Restructured, Series A-1

      4.550 %      7/1/40        70,000        74,549  

Restructured, Series A-1

      5.000 %      7/1/58        1,415,000        1,510,796  

Restructured, Series A-2

      4.329 %      7/1/40        1,620,000        1,701,016  

Restructured, Series A-2A

      4.550 %      7/1/40        1,050,000        1,118,229  
          

 

 

  

Total Puerto Rico

              7,533,627  
          

 

 

  

South Carolina - 0.2%

           

South Carolina State Ports Authority Revenue, Series 2018

      5.000 %      7/1/36        500,000        610,870 (a)  
          

 

 

  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal Defined Opportunity Trust Inc. 2020 Quarterly Report    

  

 

 

11

WESTERN ASSET MUNICIPAL DEFINED OPPORTUNITY TRUST INC.

 

Schedule of investments (unaudited) (cont’d)    August 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Tennessee - 0.8%

           

Knox County, TN, Health, Educational & Housing Facility Board Revenue, University Health System Inc., Series A

      5.000 %      9/1/40      $ 350,000      $ 414,750  

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

      4.000 %      11/1/25        1,500,000        1,715,925 (b)(c) 
          

 

 

  

Total Tennessee

              2,130,675  
          

 

 

  

Texas - 6.7%

           

Arlington, TX, Higher Education Finance Corp., Education Revenue, Uplift Education, Series A, Refunding, PSF - GTD

      5.000 %      12/1/35        300,000        369,705  

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

      5.000 %      2/15/41        400,000        455,256  

City of Austin, TX, Airport System Revenue, Series B

      5.000 %      11/15/37        600,000        743,964 (a)  

Grand Parkway Transportation Corp., TX, System Toll Revenue:

           

First Tier, Series C, Refunding

      4.000 %      10/1/45        2,000,000        2,348,780  

Subordinated Tier Toll Revenue, Series A

      5.000 %      10/1/48        2,500,000        3,056,200  

Harris County, TX, Cultural Education Facilities Finance Corp., Thermal Utility Revenue, Teco Project, Refunding

      5.000 %      11/15/33        250,000        311,265  

Houston, TX, Airport System Revenue:

           

Special Facilities, United Airlines Inc., Airport Improvement Project

      5.000 %      7/15/28        1,000,000        1,064,020 (a) 

Subordinate, Series C, Refunding

      5.000 %      7/1/31        1,750,000        2,161,337 (a) 

Love Field, TX, Airport Modernization Corp., General Airport Revenue, Series 2017

      5.000 %      11/1/31        120,000        140,920 (a)  

Love Field, TX, Airport Modernization Corp., Special Facilities Revenue, Southwest Airlines Co. Project

      5.250 %      11/1/40        3,000,000        3,013,140  

Prosper, TX, ISD, GO, School Building, PSF - GTD

      5.000 %      2/15/49        500,000        633,915  

Tarrant County, TX, Cultural Education Facilities Finance Corp., Retirement Facility Revenue, Buckner Senior Living Ventana Project, Series A

      6.625 %      11/15/37        190,000        207,269  

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

      6.250 %      12/15/26        1,115,000        1,319,747  

 

See Notes to Schedule of Investments.

 

 

 

12

  

    Western Asset Municipal Defined Opportunity Trust Inc. 2020 Quarterly Report

  

WESTERN ASSET MUNICIPAL DEFINED OPPORTUNITY TRUST INC.

 

Schedule of investments (unaudited) (cont’d)    August 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Texas - (continued)

           

Texas State Private Activity Bond Surface Transportation Corp. Revenue, Senior Lien, Blueridge Transportation Group LLC

      5.000 %      12/31/40      $ 500,000      $ 531,715 (a)  

Texas State Public Finance Authority Lease Revenue, Series A, Refunding

      4.000 %      2/1/37        500,000        602,745  

Woodloch, TX, Health Facilities Development Corp., Senior Housing Revenue:

           

Inspired Living at Lewisville Project, Series A-1

      6.750 %      12/1/51        150,000        118,968 *(d)(g) 

Subordinate, Inspired Living at Lewisville Project, Series B

      10.000 %      12/1/51        50,000        30,618 *(g)  
          

 

 

  

Total Texas

              17,109,564  
          

 

 

  

U.S. Virgin Islands - 0.7%

           

Virgin Islands Public Finance Authority Revenue, Subordinated, Matching Fund Loan, Diageo Project, Series A

      6.625 %      10/1/29        1,800,000        1,800,738  
          

 

 

  

Utah - 1.3%

           

Salt Lake City, UT, Airport Revenue, Salt Lake City International Airport, Series A

      5.000 %      7/1/43        1,750,000        2,086,070 (a) 

Utah Infrastructure Agency, Telecommunications Revenue, Series 2019

      5.000 %      10/15/26        300,000        342,762  

Utah State Charter School Finance Authority, Charter School Revenue:

           

Syracuse Arts Academy Project, UT CSCE

      5.000 %      4/15/47        250,000        286,022  

Utah Charter Academies Project, Series 2018, UT CSCE

      5.000 %      10/15/38        500,000        594,550  
          

 

 

  

Total Utah

              3,309,404  
          

 

 

  

Virginia - 1.6%

           

Arlington County, VA, IDA, Hospital Revenue, Virginia Hospital Center, Refunding

      5.000 %      7/1/35        250,000        325,253  

Virginia State Port Authority, Port Facilities Revenue:

           

Series B, Refunding

      5.000 %      7/1/41        400,000        479,296 (a)  

Series B, Refunding

      5.000 %      7/1/45        500,000        595,420 (a)  

Virginia State Small Business Financing Authority Revenue:

           

Bon Secours Mercy Health, Series A, Refunding

      4.000 %      12/1/49        600,000        682,242  

Senior Lien, Elizabeth River Crossings OpCo LLC Project

      5.000 %      7/1/23        1,775,000        1,886,665 (a) 
          

 

 

  

Total Virginia

              3,968,876  
          

 

 

  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal Defined Opportunity Trust Inc. 2020 Quarterly Report    

  

 

 

13

WESTERN ASSET MUNICIPAL DEFINED OPPORTUNITY TRUST INC.

 

Schedule of investments (unaudited) (cont’d)    August 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Washington - 1.8%

           

Port of Seattle, WA, Intermediate Lien Revenue:

           

Series 2019

      5.000 %      4/1/34      $ 750,000      $ 919,725 (a)  

Series A

      5.000 %      5/1/36        500,000        589,210 (a)  

Washington State Health Care Facilities Authority Revenue:

           

Commonspirit Health, Series B, Refunding

      5.000 %      8/1/26        300,000        353,901 (b)(c) 

Seattle Cancer Care Alliance, Refunding

      5.000 %      9/1/50        500,000        624,500  

Washington State HFC, Non-Profit Housing Revenue, Heron’s Key, Series A

      6.000 %      7/1/25        675,000        730,951 (d)  

Washington State, GO, Series R, 2018D, Refunding

      5.000 %      8/1/33        1,000,000        1,264,540  
          

 

 

  

Total Washington

              4,482,827  
          

 

 

  

West Virginia - 0.2%

           

West Virginia University Revenue, West Virginia Projects, Series B, Refunding

      5.000 %      10/1/29        400,000        510,456 (b)(c) 
          

 

 

  

Wisconsin - 1.1%

           

Public Finance Authority, WI, Limited Obligation Pilot Revenue, American Dream @ Meadowlands Project, Series 2017

      5.000 %      12/1/27        750,000        660,712 (d)  

Public Finance Authority, WI, Revenue, Series A, AGM

      5.000 %      7/1/44        1,000,000        1,167,830  

Village of Mount Pleasant, WI, Tax Increment Revenue, Series A

      5.000 %      4/1/43        750,000        921,300  
          

 

 

  

Total Wisconsin

              2,749,842  
          

 

 

  

TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS
(Cost - $228,427,684)

              252,752,518  
          

 

 

  
SHORT-TERM INVESTMENTS - 0.1%           
MUNICIPAL BONDS - 0.1%           

New York - 0.1%

           

Nassau County, NY, Industrial Development Agency Revenue, Cold Spring Harbor Laboratory, Refunding, SPA - TD Bank N.A.

      0.010 %      1/1/34        100,000        100,000 (h)(i)  

New York City, NY, Municipal Water Finance Authority, Water & Sewer System Revenue, Second General Resolution Fiscal 2008, Series BB-5, Refunding, SPA-Bank of America N.A.

      0.030 %      6/15/33        100,000        100,000 (h)(i)  
          

 

 

  

Total New York

              200,000  
          

 

 

  

 

See Notes to Schedule of Investments.

 

 

 

14

  

    Western Asset Municipal Defined Opportunity Trust Inc. 2020 Quarterly Report

  

WESTERN ASSET MUNICIPAL DEFINED OPPORTUNITY TRUST INC.

 

Schedule of investments (unaudited) (cont’d)    August 31, 2020

 

SECURITY

    RATE     SHARES      VALUE  
MONEY MARKET FUNDS - 0.0%††        

Dreyfus Government Cash Management, Institutional Shares
(Cost - $69,124)

      0.038 %      69,124      $ 69,124  
       

 

 

  

TOTAL SHORT-TERM INVESTMENTS
(Cost - $269,124)

 

        269,124  
       

 

 

  

TOTAL INVESTMENTS - 99.5%
(Cost - $228,696,808)

 

        253,021,642  

Other Assets in Excess of Liabilities - 0.5%

           1,177,216  
       

 

 

  

TOTAL NET ASSETS - 100.0%

         $ 254,198,858  
       

 

 

  

 

††

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)

Maturity date shown represents the mandatory tender date.

 

(c)

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.

 

(d)

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.

 

(e)

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

 

(f)

All or a portion of this security is held at the broker as collateral for open futures contracts.

 

(g)

The coupon payment on these securities is currently in default as of August 31, 2020.

 

(h)

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.

 

(i)

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

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal Defined Opportunity Trust Inc. 2020 Quarterly Report    

  

 

 

15

WESTERN ASSET MUNICIPAL DEFINED OPPORTUNITY TRUST INC.

 

Schedule of investments (unaudited) (cont’d)    August 31, 2020

 

Abbreviation(s) used in this schedule:

 

AGM   

— Assured Guaranty Municipal Corporation - Insured Bonds

BAM   

— Build America Mutual - Insured Bonds

BAN   

— Bond Anticipation Notes

CAB   

— Capital Appreciation Bonds

CDA   

— Communities Development Authority

COP   

— Certificates of Participation

CSCE   

— Charter School Credit Enhancement

CWA   

— Clean Water Act

DFA   

— Development Finance Agency

EDA   

— Economic Development Authority

GO   

— General Obligation

GTD   

— Guaranteed

HFC   

— Housing Finance Commission

IDA   

— Industrial Development Authority

IDR   

— Industrial Development Revenue

ISD   

— Independent School District

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

PSF   

— Permanent School Fund

SPA   

— Standby Bond Purchase Agreement - Insured Bonds

USD   

— Unified School District

At August 31, 2020, the Fund had the following open futures contracts:

 

     Number of
Contracts		      Expiration
Date		      Notional
Amount		      Market
Value		      Unrealized
Appreciation		  
Contracts to Sell:               

U.S. Treasury Ultra Long-Term Bonds

      29        12/20      $ 6,491,154      $ 6,406,281      $ 84,873  

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.

 

 

 

16

  

    Western Asset Municipal Defined Opportunity Trust Inc. 2020 Quarterly Report

  

Notes to Schedule of Investments (unaudited)

 

1. Organization and significant accounting policies

Western Asset Municipal Defined Opportunity Trust Inc. (the “Fund”) was incorporated in Maryland on January 15, 2009 and is registered as a non-diversified, limited term, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund’s primary investment objective is to provide high current income exempt from federal income tax and then to liquidate on or about April 30, 2021 and distribute all of the Fund’s net assets to shareholders. As a secondary investment objective, the Fund will seek total return. There can be no assurance the Fund’s investment objectives will be achieved. On April 1, 2020, the Board of Directors of the Fund approved amendments to the Fund’s bylaws. The amended and restated bylaws were subsequently filed on Form 8-K and are available on the Securities and Exchange Commission’s website at www.sec.gov.

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 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. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded. 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 Legg Mason North Atlantic 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

 

   

 

 

17

Notes to Schedule of Investments (unaudited) (continued)

 

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.

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 – 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)

 

 

 

18

    

Notes to Schedule of Investments (unaudited) (continued)

 

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

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  

Municipal Bonds†

      —      $ 252,752,518        —      $ 252,752,518  

Short-Term Investments†:

            

Municipal Bonds

      —        200,000        —        200,000  

Money Market Funds

    $ 69,124        —        —        69,124  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Short-Term Investments

      69,124        200,000        —        269,124  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 69,124      $ 252,952,518        —      $ 253,021,642  
  

 

 

     

 

 

     

 

 

     

 

 

  

Other Financial Instruments:

            

Futures Contracts

    $ 84,873        —        —      $ 84,873  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 153,997      $ 252,952,518        —      $ 253,106,515  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

†

See Schedule of Investments for additional detailed categorizations.

 

   

 

 

19