NPORT-EX 2 LMF3900WAInterMuniFdInc.htm HTML

WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

Schedule of investments (unaudited)    February 28, 2021

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  
MUNICIPAL BONDS - 129.9%           

Alabama - 1.4%

           

Jefferson County, AL, Sewer Revenue, Subordinated Lien Warrants, Series D

      5.000 %      10/1/21      $ 1,500,000      $ 1,543,995  

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

      4.500 %      5/1/32        500,000        556,615 (a)  
          

 

 

  

Total Alabama

              2,100,610  
          

 

 

  

Alaska - 0.2%

           

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

      4.000 %      12/1/36        250,000        287,215  
          

 

 

  

Arizona - 3.3%

           

Arizona State IDA, Education Revenue, Lincoln South Beltway Project

      5.000 %      2/1/25        500,000        582,215  

Chandler, AZ, IDA Revenue, Intel Corp. Project

      5.000 %      6/3/24        1,000,000        1,137,730 (b)(c)(d) 

La Paz County, AZ, IDA, Lease Revenue, Charter School Solutions Harmony Public Schools Project

      5.000 %      2/15/38        500,000        578,575  

Navajo Nation, AZ, Series A, Refunding

      5.000 %      12/1/25        250,000        276,210 (a)  

Phoenix, AZ, Civic Improvement Corp., Airport Revenue, Junior Lien, Refunding

      5.000 %      7/1/27        1,000,000        1,150,290  

Pinal County, AZ, Electrical District #3, Electric System Revenue, Refunding

      4.000 %      7/1/23        1,000,000        1,011,230  
          

 

 

  

Total Arizona

              4,736,250  
          

 

 

  

California - 18.6%

           

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

      5.000 %      10/1/34        500,000        589,595  

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

      5.000 %      5/1/26        2,000,000        2,238,160  

Bay Area Toll Authority, CA, Toll Bridge Revenue,

           

San Francisco Bay Area, Series B-1, (SIFMA

           

Municipal Swap Index Yield + 1.100%)

      1.130 %      4/1/24        2,000,000        2,031,600 (c)(d) 

California State, GO, Various Purpose

      5.000 %      3/1/35        500,000        643,255  

California State MFA Revenue:

           

Senior Lien, LINXS APM Project, Series A

      5.000 %      12/31/34        350,000        422,650 (b)  

Senior Lien, LINXS APM Project, Series A

      5.000 %      12/31/43        400,000        472,176 (b)  

California State MFA Special Facility Revenue, United Airlines, Inc., Los Angeles International Airport Project

      4.000 %      7/15/29        250,000        280,290 (b)  

California State PCFA Water Furnishing Revenue,

           

Poseidon Resources

      5.000 %      7/1/27        1,750,000        1,875,580 (a)(b) 

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

      5.600 %      1/15/36        555,000        567,493 (a)  

 

See Notes to Schedule of Investments.

 

    

 

   Western Asset Intermediate Muni Fund Inc. 2021 Quarterly Report      

 

1

WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

Schedule of investments (unaudited) (cont’d)    February 28, 2021

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

California - (continued)

           

Golden State, CA, Tobacco Securitization Corp. Revenue, Tobacco Settlement Funded, Series A-1, Refunding

      5.000 %      6/1/34      $ 1,500,000      $ 1,822,305  

Long Beach, CA, Bond Finance Authority Lease Revenue, Series A, Refunding

      5.000 %      8/1/31        1,855,000        1,969,157  

Los Angeles County, CA, MTA, Sales Tax Revenue, Senior Proposition C, Series B

      5.000 %      7/1/35        1,000,000        1,259,560  

Los Angeles, CA, Department of Airports Revenue, Subordinated, Los Angeles International Airport, Series D

      5.000 %      5/15/36        1,200,000       
 1,472,808
  
(b)  

Los Angeles, CA, Department of Water & Power, Power System Revenue, Series C

      5.000 %      7/1/37        750,000        916,252  

Modesto, CA, Irrigation District, Electric System Revenue, Series A, Refunding

      5.000 %      7/1/25        2,000,000        2,031,760  

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

      5.000 %      10/1/42        100,000        114,124 (a)  

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

      6.125 %      11/1/29        2,955,000        3,691,504  

Northern California Energy Authority, Commodity Supply Revenue, Series A

      4.000 %      7/1/24        500,000        550,535 (c)(d) 

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

      5.250 %      9/1/34        430,000        455,658  

Riverside, CA, Electric Revenue:

           

Series A, Refunding

      5.000 %      10/1/36        750,000        953,512  

Series A, Refunding

      5.000 %      10/1/43        250,000        312,023  

Riverside, CA, Sewer Revenue, Series A, Refunding

      5.000 %      8/1/35        750,000        941,107  

San Bernardino City, CA, Unified School District, COP, School Financing Project, AGM

      5.000 %      10/1/35        250,000        307,813  

San Francisco, CA, City & County Airport Commission, International Airport Revenue, SFO Fuel Company LLC, Series A, Refunding

      5.000 %      1/1/33        645,000        797,220 (b)  

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

      5.000 %      6/1/25        250,000        294,823  
          

 

 

  

Total California

              27,010,960  
          

 

 

  

Colorado - 2.5%

           

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

      5.500 %      12/1/36        500,000        521,405  

 

See Notes to Schedule of Investments.

 

 

    

 

2

       Western Asset Intermediate Muni Fund Inc. 2021 Quarterly Report  

WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

Schedule of investments (unaudited) (cont’d)    February 28, 2021

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Colorado - (continued)

           

Denver, CO, City & County Special Facility Apartment Revenue, United Airlines Inc. Project, Refunding

      5.000 %      10/1/32      $ 100,000      $ 106,208 (b) 

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

      6.125 %      11/15/23        2,580,000        2,809,981  

Vauxmont Metropolitan District, CO, GO, Subordinate Limited Tax, Series 2019, Refunding, AGM

      5.000 %      12/15/28        125,000        144,531  
          

 

 

  

Total Colorado

              3,582,125  
          

 

 

  

Connecticut - 1.9%

           

Connecticut State HEFA Revenue, Sacred Heart University Issue, Series I-1, Refunding

      5.000 %      7/1/36        250,000        292,935  

Connecticut State Special Tax Revenue:

           

Transportation Infrastructure, Series A

      5.000 %      5/1/34        600,000        767,172  

Transportation Infrastructure, Series A

      5.000 %      1/1/37        500,000        606,530  

Connecticut State, GO:

           

Series A

      5.000 %      4/15/30        400,000        512,276  

Series C

      4.000 %      6/1/38        250,000        291,488  

Series E

      5.000 %      10/15/34        210,000        252,615  
          

 

 

  

Total Connecticut

              2,723,016  
          

 

 

  

District of Columbia - 0.1%

           

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

      4.125 %      7/1/27        140,000        141,754  
          

 

 

  

Florida - 6.9%

           

Broward County, FL, Airport System Revenue, Series 2017

      5.000 %      10/1/36        250,000        297,693 (b)  

Florida State Development Finance Corp., Educational Facilities Revenue, Renaissance Charter School Inc. Projects, Series A

      6.000 %      6/15/35        150,000        169,772 (a)  

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

      5.000 %      10/1/27        545,000        637,356  

Jacksonville, FL, Sales Tax Revenue, Better Jacksonville, Refunding

      5.000 %      10/1/30        1,500,000        1,608,030  

Miami-Dade County, FL, Aviation Revenue:

           

Series A, Refunding

      5.000 %      10/1/31        3,000,000        3,225,150 (b)(e) 

Series A, Refunding

      4.000 %      10/1/36        1,000,000        1,174,360  

Miami-Dade County, FL, Expressway Authority Toll System Revenue, Series B, Refunding

      5.000 %      7/1/26        1,500,000        1,714,170  

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

      5.000 %      8/1/36        250,000        298,027  

 

See Notes to Schedule of Investments.

 

    

 

   Western Asset Intermediate Muni Fund Inc. 2021 Quarterly Report      

 

3

WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

Schedule of investments (unaudited) (cont’d)    February 28, 2021

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Florida - (continued)

           

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

      5.000 %      8/1/36      $ 250,000      $ 272,460  

Palm Beach County, FL, Health Facilities Authority Revenue, Toby & Leon Cooperman Sinai Residences of Boca Raton Expansion, Series B

      2.625 %      6/1/25        350,000        354,287  

Tampa, FL, Hospital Revenue, H. Lee Moffit Cancer Center Project, Series B

      5.000 %      7/1/40        250,000        311,967  
          

 

 

  

Total Florida

              10,063,272  
          

 

 

  

Georgia - 0.8%

           

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

      5.000 %      5/15/33        250,000        306,855  

Municipal Electric Authority, GA, Subordinated, Project One, Series A, Refunding

      5.000 %      1/1/37        250,000        313,723  

Private Colleges & Universities Authority, GA, Revenue, Savannah College of Art & Design Inc. Project

      5.000 %      4/1/28        500,000        558,175  
          

 

 

  

Total Georgia

              1,178,753  
          

 

 

  

Illinois - 18.5%

           

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

      5.000 %      4/1/38        500,000        585,210  

Chicago, IL, Board of Education, GO:

           

Dedicated, Series G, Refunding

      5.000 %      12/1/34        270,000        315,346  

Series C, Refunding

      5.000 %      12/1/24        250,000        283,018  

Series D

      5.000 %      12/1/46        1,500,000        1,728,360  

Chicago, IL, GO:

           

Series A

      5.000 %      1/1/40        600,000        688,584  

Series A, Refunding

      5.000 %      1/1/26        500,000        576,195  

Series B, Refunding

      5.500 %      1/1/30        1,000,000        1,120,350  

Series C, Refunding

      5.000 %      1/1/25        500,000        564,500  

Chicago, IL, Metropolitan Water Reclamation District Greater Chicago, GO, Green Bond, Series B

      5.000 %      12/1/29        850,000        980,407  

Chicago, IL, O’Hare International Airport Revenue:

           

Senior Lien, Series D

      5.250 %      1/1/36        500,000        597,080  

Senior Lien, Series D

      5.250 %      1/1/37        400,000        476,428  

Series A, Refunding

      5.000 %      1/1/31        1,750,000        2,002,210 (b)  

Chicago, IL, Transit Authority Revenue, Series A, Refunding

      5.000 %      12/1/45        550,000        668,552  

 

See Notes to Schedule of Investments.

 

 

    

 

4

       Western Asset Intermediate Muni Fund Inc. 2021 Quarterly Report  

WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

Schedule of investments (unaudited) (cont’d)    February 28, 2021

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Illinois - (continued)

           

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

      5.000 %      1/1/36      $ 600,000      $ 712,242  

Chicago, IL, Waterworks Revenue:

           

Second Lien, Series 2017, Refunding

      5.000 %      11/1/29        500,000        619,545  

Second Lien, Series 2017-2, Refunding, AGM

      5.000 %      11/1/32        630,000        776,065  

Cook County, IL, Sales Tax Revenue, Series A, Refunding

      5.000 %      11/15/38        315,000        401,430  

Illinois State Finance Authority Revenue:

           

NorthShore University HealthSystem, Refunding, Series A

      5.000 %      8/15/33        250,000        323,115  

Southern Illinois Healthcare Enterprises Inc., Refunding

      5.000 %      3/1/32        200,000        239,502  

Southern Illinois Healthcare Enterprises Inc., Refunding

      5.000 %      3/1/34        500,000        595,045  

Illinois State Sports Facilities Authority Revenue, State Tax Supported, Refunding, AGM

      5.250 %      6/15/30        3,000,000        3,352,860  

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

      5.000 %      4/1/28        100,000        124,072  

Illinois State, GO:

           

Series 2006

      5.500 %      1/1/30        50,000        62,425  

Series 2016, Refunding

      5.000 %      2/1/29        500,000        575,660  

Series A

      5.000 %      5/1/36        770,000        880,795  

Series A

      5.000 %      5/1/39        300,000        340,671  

Series A, Refunding

      5.000 %      10/1/29        1,300,000        1,539,525  

Series A, Refunding

      5.000 %      10/1/30        100,000        117,761  

Series B, Refunding

      5.000 %      9/1/27        600,000        706,914  

Series D

      5.000 %      11/1/27        850,000        990,360  

Metropolitan Pier & Exposition Authority, IL, Revenue:

           

McCormick Place Expansion Project, Series A, Refunding

      5.000 %      6/15/50        1,200,000        1,425,936  

McCormick Place Expansion Project, Series B, Refunding

      5.000 %      12/15/31        250,000        299,293  

McCormick Place Expansion Project, Series B, Refunding

      5.000 %      6/15/42        500,000        605,110  

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

      6.000 %      7/1/29        1,020,000        1,280,304  

Sales Tax Securitization Corp., IL, Series A, Refunding

      5.000 %      1/1/28        250,000        308,203  
          

 

 

  

Total Illinois

              26,863,073  
          

 

 

  

 

See Notes to Schedule of Investments.

 

    

 

   Western Asset Intermediate Muni Fund Inc. 2021 Quarterly Report      

 

5

WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

Schedule of investments (unaudited) (cont’d)    February 28, 2021

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Indiana - 4.9%

           

Hammond, IN, Multi-School Building Corp.:

           

First Mortgage Bond, State Intercept Program

      5.000 %      7/15/34      $ 750,000      $ 906,015  

First Mortgage Bond, State Intercept Program

      5.000 %      7/15/35        1,035,000        1,247,268  

Indiana State Finance Authority Revenue, Marion General Hospital, Series A

      4.000 %      7/1/45        250,000        280,975  

Indianapolis, IN, Department of Public Utilities Gas Utility Revenue, Second Lien, Series A, Refunding

      5.250 %      8/15/29        4,000,000        4,424,000  

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

      5.875 %      1/1/24        190,000        203,659 (b)  
          

 

 

  

Total Indiana

              7,061,917  
          

 

 

  

Iowa - 0.1%

           

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

      3.125 %      12/1/22        100,000        101,990  
          

 

 

  

Kentucky - 2.2%

           

Kentucky State PEA, Gas Supply Revenue:

           

Series A

      4.000 %      6/1/26        1,200,000        1,373,676 (c)(d) 

Series C

      4.000 %      6/1/25        1,600,000        1,793,200 (c)(d) 
          

 

 

  

Total Kentucky

              3,166,876  
          

 

 

  

Louisiana - 5.0%

           

New Orleans, LA, Aviation Board, General Airport Revenue:

           

Series B

      5.000 %      1/1/29        2,000,000        2,285,800 (b) 

Series B

      5.000 %      1/1/30        2,000,000        2,277,740 (b) 

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

      5.000 %      4/1/38        1,625,000        1,937,487 (b) 

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

           

Marathon Oil Corp. Project, Refunding

      2.125 %      7/1/24        400,000        408,876 (c)(d) 

Marathon Oil Corp. Project, Refunding

      2.200 %      7/1/26        300,000        308,229 (c)(d) 
          

 

 

  

Total Louisiana

              7,218,132  
          

 

 

  

Maryland - 0.4%

           

Maryland State EDC, Senior Student Housing Revenue, Morgan State University Project

      4.000 %      7/1/40        500,000        548,955  
          

 

 

  

Massachusetts - 2.0%

           

Massachusetts State Department of Transportation, Metropolitan Highway System Revenue, Series B-1, Refunding

      5.000 %      1/1/35        350,000        442,648  

Massachusetts State DFA Revenue:

           

Mass General Brigham Issue, Series A-1

      5.000 %      1/31/30        1,000,000        1,297,590 (c)(d) 

 

See Notes to Schedule of Investments.

 

 

    

 

6

       Western Asset Intermediate Muni Fund Inc. 2021 Quarterly Report  

WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

Schedule of investments (unaudited) (cont’d)    February 28, 2021

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Massachusetts - (continued)

           

Partners Healthcare System, Refunding

      5.000 %      7/1/37      $ 250,000      $ 306,853  

UMass Boston Student Housing Project

      5.000 %      10/1/28        200,000        217,088  

Massachusetts State Port Authority Revenue, Series A, Refunding

      5.000 %      7/1/36        500,000        621,540 (b)  
          

 

 

  

Total Massachusetts

              2,885,719  
          

 

 

  

Michigan - 3.1%

           

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

      5.000 %      7/1/38        250,000        281,985  

Great Lakes, MI, Water Authority Water Supply System Revenue:

           

Senior Lien, Series C, Refunding

      5.000 %      7/1/33        800,000        966,352  

Senior Lien, Series C, Refunding

      5.000 %      7/1/35        350,000        421,165  

Michigan Finance Authority Revenue, Tobacco Settlement Asset-Backed, Series A-1, Refunding

      4.000 %      6/1/39        150,000        174,656  

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

      6.250 %      7/1/29        500,000        526,745 (a)  

Michigan State Finance Authority Revenue:

           

Hospital Revenue, Trinity Health Credit Group, Series A, Refunding

      5.000 %      12/1/42        250,000        300,180  

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

      5.000 %      7/1/33        275,000        322,418  

Local Government Loan Program, Detroit, MI, Water & Sewer Department, Series D2, Refunding, AGM

      5.000 %      7/1/24        1,000,000        1,145,990  

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

      5.000 %      12/31/43        300,000        357,999 (b)  
          

 

 

  

Total Michigan

              4,497,490  
          

 

 

  

Missouri - 1.0%

           

Kansas City, MO, IDA, Airport System Revenue, Kansas City International Airport Terminal Modernization Project, Series B

      5.000 %      3/1/35        750,000        909,810 (b)  

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

      5.000 %      2/1/34        150,000        167,327  

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

      5.000 %      9/1/38        300,000        334,020  
          

 

 

  

Total Missouri

              1,411,157  
          

 

 

  

 

See Notes to Schedule of Investments.

 

    

 

   Western Asset Intermediate Muni Fund Inc. 2021 Quarterly Report      

 

7

WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

Schedule of investments (unaudited) (cont’d)    February 28, 2021

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Nebraska - 0.5%

           

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

      5.000 %      9/1/36      $ 500,000      $ 680,825  
          

 

 

  

New Jersey - 9.8%

           

Casino Reinvestment Development Authority, NJ, Luxury Tax Revenue, Refunding, AGM

      5.000 %      11/1/28        1,000,000        1,106,060  

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

      5.000 %      6/1/26        1,400,000        1,689,086  

New Jersey State EDA Revenue:

           

School Facilities Construction, Series NN, Refunding

      5.000 %      3/1/28        2,825,000        3,041,225  

School Facilities Construction, Series NN, Refunding

      5.000 %      3/1/29        2,175,000        2,337,451  

School Facilities Construction, Series QQQ

      5.000 %      6/15/31        500,000        631,255  

Transit Transportation Project, Series A

      5.000 %      11/1/32        750,000        918,982  

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

      5.000 %      10/1/37        150,000        169,896 (b)  

New Jersey State Transportation Trust Fund Authority Revenue:

           

Transportation Program, Series AA

      5.000 %      6/15/37        1,000,000        1,223,740  

Transportation System, Series A, Refunding

      5.000 %      12/15/25        425,000        502,040  

Transportation System, Series A, Refunding

      5.000 %      12/15/28        575,000        714,702  

New Jersey State Turnpike Authority Revenue, Series G, Refunding

      5.000 %      1/1/35        1,000,000        1,217,960  

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

      5.000 %      6/1/35        500,000        603,430  
          

 

 

  

Total New Jersey

              14,155,827  
          

 

 

  

New York - 17.7%

           

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

      5.000 %      10/1/32        575,000        730,164  

Hudson Yards Infrastructure Corp., NY, Second Indenture Revenue, Series A, Refunding

      5.000 %      2/15/35        1,000,000        1,189,750  

MTA, NY, Transportation Revenue:

           

Green Bonds, Series A-2

      5.000 %      11/15/24        125,000        142,835  

Green Bonds, Series D-1

      5.000 %      11/15/43        250,000        300,823  

Green Bonds, Series E, Refunding

      5.000 %      11/15/28        1,000,000        1,238,200  

Series A-2

      5.000 %      5/15/30        400,000        494,148 (c)(d) 

New York City, NY, GO, Series D-1

      5.000 %      3/1/39        1,000,000        1,245,660  

 

See Notes to Schedule of Investments.

 

 

    

 

8

       Western Asset Intermediate Muni Fund Inc. 2021 Quarterly Report  

WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

Schedule of investments (unaudited) (cont’d)    February 28, 2021

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

New York - (continued)

           

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

      5.000 %      3/1/29      $ 250,000      $ 318,015  

New York City, NY, TFA Revenue, Future Tax Secured, Subordinate, Series C-1

      4.000 %      5/1/40        2,300,000        2,637,318  

New York State Dormitory Authority, Sales Tax Revenue, Bidding Group 3, Series E, Refunding

      5.000 %      3/15/38        1,500,000        1,843,425  

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

      5.000 %      10/1/29        750,000        951,652  

New York State Dormitory Authority, State Personal Income Tax Revenue:

           

Bidding Group 4, Series A, Refunding

      5.000 %      3/15/44        750,000        904,763  

Bidding Group 4, Series A, Refunding

      4.000 %      3/15/46        550,000        621,929  

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

      5.000 %      1/1/36        1,000,000        1,182,250  

New York State Thruway Authority, State Personal Income Tax Revenue, Series A

      5.000 %      3/15/26        200,000        219,118  

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        850,000        1,019,515 (b) 

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

      5.000 %      1/1/32        1,200,000        1,427,232 (b) 

LaGuardia Airport Terminal B Redevelopment Project

      5.000 %      7/1/30        1,225,000        1,385,793 (b) 

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

      5.000 %      12/1/27        500,000        618,735  

New York State Urban Development Corp. Revenue, State Personal Income Tax Revenue Bonds, Series A

      5.000 %      3/15/41        750,000        933,863  

Niagara Area Development Corp., NY, Solid Waste Disposal Facility Revenue, Covanta Project, Series B, Refunding

      3.500 %      11/1/24        750,000        781,230 (a)  

Port Authority of New York & New Jersey Revenue, Consolidated Series 193, Refunding

      5.000 %      10/15/30        1,500,000        1,759,260 (b) 

 

See Notes to Schedule of Investments.

 

    

 

   Western Asset Intermediate Muni Fund Inc. 2021 Quarterly Report      

 

9

WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

Schedule of investments (unaudited) (cont’d)    February 28, 2021

 

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      $ 2,000,000      $ 2,508,960  

Utility Debt Securitization Authority, NY, Revenue, Restructuring, Series TE

      5.000 %      12/15/27        1,000,000        1,127,570  
          

 

 

  

Total New York

              25,582,208  
          

 

 

  

North Carolina - 1.3%

           

Charlotte, NC, COP, Series P

      5.000 %      6/1/44        250,000        307,498  

Charlotte, NC, Airport Revenue, Charlotte Douglas International Airport

      5.000 %      7/1/36        400,000        502,504  

North Carolina State Limited Obligation Revenue, Series A

      5.000 %      5/1/32        750,000        964,290  

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

      5.000 %      1/1/30        100,000        118,787  
          

 

 

  

Total North Carolina

              1,893,079  
          

 

 

  

Ohio - 1.8%

           

American Municipal Power-Ohio Inc., OH, Revenue, AMP Fremont Energy Center Project, Series A, Refunding

      5.000 %      2/15/29        500,000        625,675  

Buckeye, OH, Tobacco Settlement Financing Authority Revenue:

           

Senior Bonds, Series A-2, Refunding

      5.000 %      6/1/36        250,000        312,363  

Senior Bonds, Series B-2, Refunding

      5.000 %      6/1/55        550,000        619,294  

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

      2.500 %      10/1/29        350,000        376,561 (b)(c)(d) 

Ohio State Higher Educational Facility Revenue,

           

Xavier University Project, Refunding

      5.000 %      5/1/34        525,000        662,130  
          

 

 

  

Total Ohio

              2,596,023  
          

 

 

  

Oklahoma - 0.0%††

           

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

      6.250 %      11/1/31        86,511        433 *(f)  
          

 

 

  

Oregon - 1.5%

           

Port of Portland, OR, Airport Revenue, Portland International Airport, Series 26C, Refunding

      5.000 %      7/1/26        250,000        301,552 (b)  

Portland, OR, River District Urban Renewal & Redevelopment, Series C

      5.000 %      6/15/28        570,000        602,821  

Washington Multnomah & Yamhill Counties, OR, School District #1 West Union, GO, Hillsboro, School Board Guaranty

      5.000 %      6/15/34        500,000        609,040  

 

See Notes to Schedule of Investments.

 

 

    

 

10

       Western Asset Intermediate Muni Fund Inc. 2021 Quarterly Report  

WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

Schedule of investments (unaudited) (cont’d)    February 28, 2021

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Oregon - (continued)

           

Yamhill County, OR, Hospital Authority Revenue:

           

Friendsview Retirement Community, Refunding

      5.000 %      11/15/31      $ 350,000      $ 378,812  

Friendsview Retirement Community, Refunding

      5.000 %      11/15/36        325,000        347,610  
          

 

 

  

Total Oregon

              2,239,835  
          

 

 

  

Pennsylvania - 2.6%

           

Commonwealth Financing Authority, PA, Tobacco Master Settlement Payment Revenue

      5.000 %      6/1/30        200,000        248,234  

Cumberland County, PA, Municipal Authority Revenue:

           

Diakon Lutheran Social Ministries, Refunding

      5.000 %      1/1/27        60,000        69,908 (e)  

Diakon Lutheran Social Ministries, Refunding

      5.000 %      1/1/27        440,000        495,009  

Pennsylvania State Turnpike Commission Revenue, Series B

      5.000 %      12/1/40        750,000        956,602  

Philadelphia, PA, Authority for IDR, City Service Agreement Revenue, Rebuild Project

      5.000 %      5/1/35        500,000        613,075  

Philadelphia, PA, Authority for IDR, Lease Revenue, Refunding

      5.000 %      10/1/30        250,000        315,323  

Philadelphia, PA, GO, Series B

      5.000 %      2/1/35        250,000        314,213  

State Public School Building Authority, PA, Lease Revenue:

           

Philadelphia SD Project, Series A, Refunding, AGM, State Aid Withholding

      5.000 %      6/1/31        150,000        181,596  

Philadelphia SD Project, Series A, Refunding, AGM, State Aid Withholding

      5.000 %      6/1/33        450,000        543,676  
          

 

 

  

Total Pennsylvania

              3,737,636  
          

 

 

  

Puerto Rico - 4.8%

           

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

      5.250 %      7/1/42        900,000        947,439  

Puerto Rico Commonwealth Public Improvement Bonds, GO, Series A, Refunding

      5.000 %      7/1/41        295,000        230,469 *(f) 

Puerto Rico Electric Power Authority Revenue:

           

Series A

      5.000 %      7/1/42        200,000        180,500 *(f) 

Series A

      5.050 %      7/1/42        75,000        67,687 *(f)  

Series DDD, Refunding

      5.000 %      7/1/21        280,000        252,700 *(f) 

Series TT

      5.000 %      7/1/37        450,000        406,125 *(f) 

Series XX

      5.250 %      7/1/40        400,000        362,000 *(f) 

Series ZZ, Refunding

      5.250 %      7/1/18        250,000        219,375 *(g) 

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

           

CAB, Restructured, Series A-1

      0.000 %      7/1/27        220,000        193,664  

 

See Notes to Schedule of Investments.

 

    

 

   Western Asset Intermediate Muni Fund Inc. 2021 Quarterly Report      

 

11

WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

Schedule of investments (unaudited) (cont’d)    February 28, 2021

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Puerto Rico - (continued)

           

Restructured, Series A-1

      4.550 %      7/1/40      $ 50,000      $ 54,503  

Restructured, Series A-1

      5.000 %      7/1/58        1,150,000        1,273,671  

Restructured, Series A-2

      4.329 %      7/1/40        1,340,000        1,441,371  

Restructured, Series A-2A

      4.550 %      7/1/40        1,230,000        1,340,761  
          

 

 

  

Total Puerto Rico

              6,970,265  
          

 

 

  

South Carolina - 0.3%

           

South Carolina State Ports Authority Revenue, Series 2018

      5.000 %      7/1/36        400,000        485,716 (b)  
          

 

 

  

Tennessee - 0.8%

           

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

      5.000 %      9/1/30        250,000        300,653  

Metropolitan Government of Nashville & Davidson County, TN, Water & Sewer Revenue, Subordinated, Green Bonds, Series A

      5.000 %      7/1/42        300,000        359,142  

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

      4.000 %      11/1/25        500,000        567,575 (c)(d) 
          

 

 

  

Total Tennessee

              1,227,370  
          

 

 

  

Texas - 6.0%

           

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

      5.000 %      2/15/41        250,000        281,103  

Austin, TX, Airport System Revenue, Series 2014

      5.000 %      11/15/27        1,000,000        1,151,840 (b) 

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

      5.000 %      1/1/45        250,000        305,210  

Harris County, TX, Houston Sports Authority Revenue, Senior Lien, Series A, Refunding, AGM

      5.000 %      11/15/25        1,000,000        1,141,270  

Houston, TX, Airport System Revenue:

           

Special Facilities, United Airlines Inc., Airport Improvements Project

      5.000 %      7/15/28        500,000        590,625 (b)  

Subordinated, Series A

      5.000 %      7/1/36        1,055,000        1,265,873 (b) 

Laredo, TX, Waterworks & Sewer System Revenue, Series 2019

      5.000 %      3/1/33        1,000,000        1,240,650  

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

      5.000 %      11/1/31        90,000        105,885 (b)  

North Texas Tollway Authority Revenue:

           

First Tier, Series A, Refunding

      5.000 %      1/1/36        500,000        596,605  

First Tier, Series B, Refunding

      5.000 %      1/1/34        1,300,000        1,492,621  

 

See Notes to Schedule of Investments.

 

 

    

 

12

       Western Asset Intermediate Muni Fund Inc. 2021 Quarterly Report  

WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

Schedule of investments (unaudited) (cont’d)    February 28, 2021

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Texas - (continued)

           

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

      6.625 %      11/15/37      $ 130,000      $ 145,917  

Texas Public Finance Authority, Lease Revenue, Refunding

      4.000 %      2/1/36        350,000        412,542  
          

 

 

  

Total Texas

              8,730,141  
          

 

 

  

U.S. Virgin Islands - 0.5%

           

Virgin Islands Public Finance Authority Revenue:

           

Matching Fund Loan, Senior Lien, Series A

      5.000 %      10/1/29        300,000        300,699  

Subordinated, Matching Fund Loan, Cruzan Project, Series A

      6.000 %      10/1/39        330,000        330,749  

Subordinated, Matching Fund Loan, Diageo Project, Series A

      6.625 %      10/1/29        150,000        150,687  
          

 

 

  

Total U.S. Virgin Islands

              782,135  
          

 

 

  

Utah - 0.5%

           

Utah Infrastructure Agency, Telecommunications Revenue:

           

Series 2019

      5.000 %      10/15/26        250,000        301,910  

Series 2021

      4.000 %      10/15/36        100,000        114,454  

Utah State Charter School Finance Authority, Charter School Revenue, Syracuse Arts Academy Project, UT CSCE

      5.000 %      4/15/37        250,000        286,705  
          

 

 

  

Total Utah

              703,069  
          

 

 

  

Virginia - 3.5%

           

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

      5.000 %      7/1/35        200,000        256,538  

Virginia Beach, VA, Development Authority, Residential Care Facility Revenue, Westminster-Canterbury on Chesapeake Bay, Refunding

      5.000 %      9/1/40        1,250,000        1,413,275  

Virginia State Small Business Financing Authority Revenue:

           

Bon Secours Mercy Health, Series A, Refunding

      4.000 %      12/1/49        500,000        568,675  

Second Lien, Elizabeth River Crossings OpCo LLC Project

      5.000 %      1/1/27        2,000,000        2,097,660 (b) 

Senior Lien, 95 Express Lanes LLC

      5.000 %      7/1/34        350,000        361,606 (b)  

The Obligated Group of National Senior Campuses Inc., Series A

      5.000 %      1/1/31        250,000        307,455  
          

 

 

  

Total Virginia

              5,005,209  
          

 

 

  

 

See Notes to Schedule of Investments.

 

    

 

   Western Asset Intermediate Muni Fund Inc. 2021 Quarterly Report      

 

13

WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

Schedule of investments (unaudited) (cont’d)    February 28, 2021

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Washington - 1.3%

           

Port of Seattle, WA, Intermediate Lien Revenue, Series 2019

      5.000 %      4/1/33      $ 500,000      $ 613,285 (b)  

Washington State Health Care Facilities Authority Revenue:

           

Commonspirit Health, Series B, Refunding

      5.000 %      8/1/26        250,000        295,405 (c)(d)  

Seattle Cancer Care Alliance, Refunding

      5.000 %      12/1/29        170,000        215,890  

Seattle Cancer Care Alliance, Refunding

      5.000 %      12/1/30        265,000        340,716  

Seattle Cancer Care Alliance, Refunding

      5.000 %      9/1/38        300,000        380,679  
          

 

 

  

Total Washington

              1,845,975  
          

 

 

  

West Virginia - 0.3%

           

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

      5.000 %      10/1/29        300,000        373,143 (c)(d)  
          

 

 

  

Wisconsin - 3.8%

           

Central Brown County, WI, Water Authority System Revenue, Series A, Refunding

      5.000 %      11/1/35        2,105,000        2,414,372  

La Crosse, WI, Resource Recovery Revenue, Northern States Power Co. Project, Refunding

      6.000 %      11/1/21        2,000,000        2,071,020 (b)  

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

      6.500 %      12/1/37        200,000        217,938 (a)  

Public Finance Authority, WI, Revenue, Carmelite System Inc., Obligated Group, Series 2020

      5.000 %      1/1/40        150,000        176,461  

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

      5.000 %      4/1/43        500,000        590,430  
          

 

 

  

Total Wisconsin

              5,470,221  
          

 

 

  

TOTAL MUNICIPAL BONDS

(Cost - $175,083,439)

              188,058,374  
          

 

 

  
MUNICIPAL BONDS DEPOSITED IN TENDER OPTION BOND TRUST(h) - 1.5%

 

      

New York - 1.5%

           

New York State Urban Development Corp.

           

Revenue, State Personal Income Tax Revenue

           

Bonds, Bidding Group 3, Series E, Refunding
(Cost - $2,276,669)

      4.000 %      3/15/41        1,925,000        2,194,352  
          

 

 

  

TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS

(Cost - $177,360,108)

 

 

      190,252,726  
          

 

 

  
SHORT-TERM INVESTMENTS - 2.0%           
MUNICIPAL BONDS - 2.0%           

California - 0.1%

           

California State MFA Revenue, Chevron USA Inc. Project, Series A

      0.010 %      11/1/35        100,000        100,000 (i)(j)  
          

 

 

  

 

See Notes to Schedule of Investments.

 

 

    

 

14

       Western Asset Intermediate Muni Fund Inc. 2021 Quarterly Report  

WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

Schedule of investments (unaudited) (cont’d)    February 28, 2021

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

New York - 1.9%

           

New York City, NY, GO:

           

Subseries E-5, LOC - TD Bank N.A.

      0.010 %      3/1/48      $ 100,000      $ 100,000 (i)(j)  

Subseries G-6, LOC - Mizuho Bank Ltd.

      0.010 %      4/1/42        500,000        500,000 (i)(j)  

New York City, NY, TFA Revenue Future Tax Secured, Subseries D-3, SPA - Mizuho Bank Ltd.

      0.020 %      2/1/44        2,200,000        2,200,000 (i)(j)  
          

 

 

  

Total New York

              2,800,000  
          

 

 

  

TOTAL MUNICIPAL BONDS
(Cost - $2,900,000)

              2,900,000  
          

 

 

  
                  SHARES         
MONEY MARKET FUNDS - 0.0%††           

Dreyfus Government Cash Management, Institutional Shares
(Cost - $46,106)

      0.030 %         46,106        46,106  
          

 

 

  

TOTAL SHORT-TERM INVESTMENTS
(Cost - $2,946,106)

              2,946,106  
          

 

 

  

TOTAL INVESTMENTS - 133.4%
(Cost - $180,306,214)

              193,198,832  

Auction Rate Cumulative Preferred Stock, at Liquidation Value - (0.4)%

 

           (600,000 ) 

Variable Rate Demand Preferred Stock, at Liquidation Value - (32.7)%

              (47,400,000 ) 

TOB Floating Rate Notes - (1.0)%

              (1,445,000 ) 

Other Assets in Excess of Other Liabilities - 0.7%

              1,063,665  
          

 

 

  

TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS - 100.0%

 

    $ 144,817,497  
          

 

 

  

 

See Notes to Schedule of Investments.

 

    

 

   Western Asset Intermediate Muni Fund Inc. 2021 Quarterly Report      

 

15

WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

Schedule of investments (unaudited) (cont’d)    February 28, 2021

 

††

Represents less than 0.1%.

 

*

Non-income producing security.

 

(a)

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.

 

(b)

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

 

(c)

Maturity date shown represents the mandatory tender date.

 

(d)

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.

 

(e)

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

 

(f)

The coupon payment on this security is currently in default as of February 28, 2021.

 

(g)

The maturity principal is currently in default as of February 28, 2021.

 

(h)

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

 

(i)

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.

 

(j)

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.

 

 

    

 

16

       Western Asset Intermediate Muni Fund Inc. 2021 Quarterly Report  

WESTERN ASSET INTERMEDIATE MUNI FUND INC.

 

Schedule of investments (unaudited) (cont’d)    February 28, 2021

 

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
COP    — Certificates of Participation
CSCE    — Charter School Credit Enhancement
DFA    — Development Finance Agency
EDA    — Economic Development Authority
EDC    — Economic Development Corporation
GO    — General Obligation
HEFA    — Health & Educational Facilities Authority
IDA    — Industrial Development Authority
IDR    — Industrial Development Revenue
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
SD    — School District
SIFMA    — Securities Industry and Financial Markets Association
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 Intermediate Muni Fund Inc. 2021 Quarterly Report      

 

17

Notes to Schedule of Investments (unaudited)

 

1. Organization and significant accounting policies

Western Asset Intermediate Muni Fund Inc. (the “Fund”) was incorporated in Maryland on December 19, 1991 and is registered as a diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Board of Directors authorized 100 million shares of $0.001 par value common stock. The Fund’s investment objective is to provide common shareholders a high level of current income exempt from regular federal income taxes consistent with prudent investing. Under normal market conditions, the Fund invests at least 80% of its total assets in municipal obligations. In addition, under normal market conditions, the Fund will invest at least 80% of its total assets in debt securities that are, at the time of investment, rated investment grade by a nationally recognized statistical rating organization or, if unrated, of equivalent quality as determined by the investment manager. For credit ratings purposes, pre-refunded bonds are deemed to be unrated. The subadviser determines the credit quality of prefunded bonds based on the quality of the escrowed collateral and such other factors as the subadviser deems appropriate.

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. 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

 

 

    

 

18

    

Notes to Schedule of Investments (unaudited) (continued)

 

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.

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.

 

    

 

    

 

19

Notes to Schedule of Investments (unaudited) (continued)

 

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)

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  

Long-Term Investments†:

            

Municipal Bonds

      —        $ 188,058,374        —        $ 188,058,374  

Municipal Bonds Deposited in Tender Option Bond Trust

      —          2,194,352        —          2,194,352  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Long-Term Investments

      —          190,252,726        —          190,252,726  
  

 

 

     

 

 

     

 

 

     

 

 

  

Short-Term Investments†:

            

Municipal Bonds

      —          2,900,000        —          2,900,000  

Money Market Funds

    $ 46,106        —          —          46,106  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Short-Term Investments

      46,106        2,900,000        —          2,946,106  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 46,106      $ 193,152,726        —        $ 193,198,832  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

†

See Schedule of Investments for additional detailed categorizations.

 

 

    

 

20