NPORT-EX 2 LMF4400WAManagedMuniFd.htm

 

Western Asset Managed Municipals Fund Inc.

 

Schedule of investments (unaudited) February 29, 2020

 

       Maturity   Face     
Security  Rate   Date   Amount   Value 
MUNICIPAL BONDS - 139.7%                    
Alabama - 8.1%                    
Hoover, AL, IDA Revenue, United States Steel Corp. Project, Series 2019   5.750%   10/1/49   $700,000   $848,806(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    11,580,000    11,472,769 
Senior Lien, Warrants, Series A, Refunding, AGM   5.500%   10/1/53    1,400,000    1,631,070 
Subordinated Lien, Warrants, Series D   6.500%   10/1/53    6,900,000    8,372,184 
Subordinated Lien, Warrants, Series D, Refunding   6.000%   10/1/42    9,230,000    11,077,846 
Lower Alabama Gas District, Natural Gas Revenue:                    
Project #2   4.000%   12/1/25    1,750,000    2,007,985 (b)(c)
Series A   5.000%   9/1/46    8,525,000    12,913,840 
Southeast Alabama Gas Supply District, Gas Supply Revenue, Project #1, Series A   4.000%   4/1/24    1,750,000    1,941,363 (b)(c)
Total Alabama                  50,265,863 
Alaska - 0.2%                    
Alaska State Housing Finance Corp. Revenue, State Capital Project II, Series B   5.000%   12/1/38    750,000    959,708 
Arizona - 5.4%                    
Arizona State IDA, Education Revenue, Basis School Project, Credit Enhanced, Series F, Refunding, SD Credit Program   5.000%   7/1/52    725,000    855,877 
Chandler, AZ, IDA Revenue, Intel Corp. Project   5.000%   6/3/24    5,650,000    6,564,339 (a)(b)(c)
Navajo Nation, AZ, Revenue, Series A, Refunding   5.500%   12/1/30    950,000    1,098,827(d)
Queen Creek, AZ, Excise Tax & State Shared  Revenue, Series A   5.000%   8/1/42    750,000    951,218 
Salt Verde, AZ, Financial Corp., Natural Gas Revenue:                    
Series 2007   5.250%   12/1/28    2,000,000    2,584,840 
Series 2007   5.000%   12/1/32    10,000,000    13,554,000 
Series 2007   5.000%   12/1/37    5,500,000    7,880,840 
Total Arizona                  33,489,941 

 

See Notes to Schedule of Investments.

 

1

 

 

Western Asset Managed Municipals Fund Inc.

 

Schedule of investments (unaudited) (cont’d) February 29, 2020

 

       Maturity   Face     
Security  Rate   Date   Amount   Value 
California - 21.3%                
Alameda, CA, Corridor Transportation Authority Revenue, Second Subordinated Lien, Series B, Refunding   5.000%   10/1/34   $1,750,000   $2,147,635 
Anaheim, CA, Public Financing Authority Lease Revenue, Series A, Refunding   5.000%   5/1/46    2,000,000    2,325,540 
Bay Area Toll Authority, CA, Toll Bridge Revenue, San Francisco Bay Area, Series B-1, (SIFMA Municipal Swap Index Yield + 1.100%)   2.250%   4/1/24    5,500,000    5,689,200 (b)(c)
California State Health Facilities Financing Authority Revenue, Lucile Salter Packard Children’s Hospital at Stanford   5.000%   11/15/56    500,000    613,165 
California State MFA Revenue:                    
Senior Lien, LINXS Apartment Project, Series A   5.000%   12/31/43    1,500,000    1,840,785(a)
Senior Lien, LINXS Apartment Project, Series A   5.000%   12/31/47    1,900,000    2,320,299(a)
California State PCFA Water Furnishing Revenue, Poseidon Resources Desalination Project   5.000%   11/21/45    12,500,000    13,591,250 (a)(d)
California State, GO:                    
Various Purpose, Refunding   5.000%   4/1/29    7,000,000    9,459,170 
Various Purpose, Refunding   5.000%   10/1/29    1,500,000    2,049,405 
Various Purpose, Refunding   4.000%   11/1/36    1,000,000    1,201,490 
California Statewide CDA Revenue, Provident Group-Pomona Properties LLC, Series A   5.750%   1/15/45    1,770,000    1,920,963(d)
Golden State, CA, Tobacco Securitization Corp. Revenue:                    
Tobacco Settlement Funded, Series A-1, Refunding   5.000%   6/1/47    1,500,000    1,592,805 
Tobacco Settlement Funded, Series A-2, Refunding   5.000%   6/1/47    1,900,000    2,017,553 
Inland Valley, CA, Development Agency, Successor Agency Tax Allocation Revenue, Series A, Refunding   5.000%   9/1/44    2,405,000    2,734,485 
Los Angeles County, CA, Public Works Financing Authority Revenue:                    
Multiple Capital Project II   5.000%   8/1/32    3,000,000    3,297,300 
Multiple Capital Project II   5.000%   8/1/37    1,000,000    1,096,330 
Los Angeles, CA, Department of Airports Revenue:                    
Los Angeles International Airport, Subordinated, Series D   5.000%   5/15/39    500,000    639,900(a)
Los Angeles International Airport, Subordinated, Series D   4.000%   5/15/44    2,500,000    2,934,350(a)

 

See Notes to Schedule of Investments.

 

2

 

 

Western Asset Managed Municipals Fund Inc.

 

Schedule of investments (unaudited) (cont’d) February 29, 2020

 

       Maturity   Face     
Security  Rate   Date   Amount   Value 
California - continued                    
Los Angeles International Airport, Subordinated, Series D   5.000%   5/15/49   $2,500,000   $3,145,125(a)
Los Angeles International Airport, Subordinated, Series F   5.000%   5/15/27    5,565,000    7,098,547(a)
Los Angeles, CA, Department of Water & Power Waterworks Revenue, Series A   5.000%   7/1/48    2,500,000    3,165,400 
Los Angeles, CA, Department of Water & Power, Power System Revenue:                    
Power System, Series A   5.000%   7/1/47    4,000,000    4,956,840 
Series B, Refunding   5.000%   7/1/38    2,000,000    2,515,600 
Series C   5.000%   7/1/37    1,000,000    1,279,370 
Series C   5.000%   7/1/42    2,000,000    2,528,600 
Los Angeles, CA, Wastewater System Revenue, Green Bond, Subordinated, Series A   5.000%   6/1/48    1,500,000    1,892,820 
Morongo Band of Mission Indians, CA, Revenue, Tribal Economic Development, Series A   5.000%   10/1/42    400,000    479,840(d)
M-S-R Energy Authority, CA, Natural Gas Revenue:                    
Series A   7.000%   11/1/34    3,430,000    5,543,052 
Series B   6.500%   11/1/39    8,000,000    13,477,920 
Regents of the University of California Medical Center Pooled Revenue, Series L, Refunding   5.000%   5/15/32    1,750,000    2,161,705 
River Islands, CA, Public Financing Authority, Special Tax Revenue, Community Facilities District No. 2003-1, Refunding   5.500%   9/1/45    2,000,000    2,194,840 
Riverside County, CA, Transportation Commission Sales Tax Revenue, Series B, Refunding   5.000%   6/1/37    3,500,000    4,520,390 
Riverside County, CA, Transportation Commission Toll Revenue:                    
Senior Lien, Series A   5.750%   6/1/44    200,000    227,214 
Senior Lien, Series A   5.750%   6/1/48    600,000    680,508 
Riverside, CA, Electric Revenue:                    
Series A, Refunding   5.000%   10/1/38    1,000,000    1,327,810 
Series A, Refunding   5.000%   10/1/48    2,500,000    3,234,550 
San Bernardino, CA, USD Revenue, COP, 2019 School Financing Project, AGM   5.000%   10/1/36    1,000,000    1,283,230 

 

See Notes to Schedule of Investments.

 

3

 

 

Western Asset Managed Municipals Fund Inc.

 

Schedule of investments (unaudited) (cont’d) February 29, 2020

 

       Maturity   Face     
Security  Rate   Date   Amount   Value 
California - continued                    
San Diego County, CA, Regional Transportation Commission, Sales Tax Revenue, Series A   5.000%   4/1/48   $2,500,000   $3,057,800 
San Francisco, CA, City & County Airport Commission, International Airport Revenue, SFO Fuel Company LLC, Series A   5.000%   1/1/47    1,500,000    1,884,990(a)
San Mateo County, CA, Joint Powers Financing Authority Lease Revenue, Capital Project, Series A   5.000%   7/15/43    1,000,000    1,266,370 
Shafter Wasco Irrigation District, CA, COP   5.000%   11/1/40    5,000,000    5,130,200 
Stockton, CA, PFA Wastewater Revenue, Bond Anticipation Notes, Series 2019   1.400%   6/1/22    750,000    752,505 
Tobacco Securitization Authority of Southern California Revenue:                    
Asset Backed Refunding, San Diego County Tobacco Asset Securitization Corporation, Class 1, Series A   5.000%   6/1/39    500,000    637,785 
Asset Backed Refunding, San Diego County Tobacco Asset Securitization Corporation, Class 1, Series A   5.000%   6/1/48    500,000    623,665 
Total California                  132,538,301 
Colorado - 9.9%                    
Base Village Metropolitan District #2, CO, GO, Series A, Refunding   5.750%   12/1/46    500,000    532,525 
Colorado State Educational & Cultural Facilities Authority Revenue, University of Denver Project, Series A   5.000%   3/1/47    1,600,000    1,939,824 
Colorado State Health Facilities Authority Revenue, Commonspirit Health Project, Series A-1   4.000%   8/1/44    1,900,000    2,193,607 
Colorado State High Performance Transportation Enterprise Revenue, C-470 Express Lanes   5.000%   12/31/51    600,000    669,468 
Denver, CO, Airport System Revenue:                    
Series C   6.125%   11/15/25    10,945,000    13,096,568 (a)(e)(f)
Series C   6.125%   11/15/25    13,630,000    14,214,727 (a)(e)
Public Authority for Colorado Energy, Natural Gas Purchase Revenue   6.500%   11/15/38    18,000,000    29,307,240 
Total Colorado                  61,953,959 

 

See Notes to Schedule of Investments.

 

4

 

 

Western Asset Managed Municipals Fund Inc.

 

Schedule of investments (unaudited) (cont’d) February 29, 2020

 

       Maturity   Face     
Security  Rate   Date   Amount   Value 
Connecticut - 1.0%                
Connecticut State Special Tax Revenue, Transportation Infrastructure, Series A   5.000%   1/1/37   $1,500,000   $1,863,795 
Connecticut State, GO:                    
Series A   5.000%   4/15/35    1,650,000    2,130,777 
Series E   5.000%   10/15/34    930,000    1,138,487 
Harbor Point, CT, Infrastructure Improvement District, Special Obligation Revenue, Harbor Point Project Ltd., Refunding   5.000%   4/1/39    900,000    1,057,212(d)
Total Connecticut                  6,190,271 
District of Columbia - 1.3%                    
District of Columbia Revenue:                    
Ingleside Rock Creek Project, Series A   5.000%   7/1/52    400,000    433,704 
KIPP DC Project, Series B, Refunding   5.000%   7/1/48    2,800,000    3,372,432 
Series A, Refunding   5.000%   3/1/40    1,500,000    1,993,800(g)
Series A, Refunding   4.000%   3/1/45    1,750,000    2,109,188(g)
Total District of Columbia                  7,909,124 
Florida - 3.4%                    
Broward County, FL, Airport System Revenue, Series 2017   5.000%   10/1/47    1,250,000    1,525,487(a)
Florida State Development Finance Corp., Educational Facilities Revenue, Renaissance Charter School Inc. Projects, Series A   6.125%   6/15/46    555,000    618,814(d)
Florida State Mid-Bay Bridge Authority, Series A, Refunding   5.000%   10/1/30    2,410,000    2,857,730 
Greater Orlando, FL, Aviation Authority, Airport Facilities Revenue, Priority Subordinated, Series A   5.000%   10/1/47    1,500,000    1,823,490(a)
Miami-Dade County, FL, Expressway Authority, Series A   5.000%   7/1/40    9,000,000    9,121,770 
Miami-Dade County, FL, Health Facilities Authority, Hospital Revenue, Nicklaus Children’s Hospital, Refunding   5.000%   8/1/42    1,250,000    1,521,425 
Orange County, FL, Health Facilities Authority Revenue, Presbyterian Retirement Communities, Refunding   5.000%   8/1/47    750,000    845,513 
Palm Beach County, FL, Health Facilities Authority Revenue, Acts Retirement-Life Communities   5.000%   11/15/45    750,000    884,902 
Tampa-Hillsborough County, FL, Expressway Authority Revenue, Series C   5.000%   7/1/48    1,400,000    1,734,222 
Total Florida                  20,933,353 

 

See Notes to Schedule of Investments.

 

5

 

 

Western Asset Managed Municipals Fund Inc.

 

Schedule of investments (unaudited) (cont’d) February 29, 2020

 

       Maturity   Face     
Security  Rate   Date   Amount   Value 
Georgia - 1.7%                
Fulton County, GA, Development Authority Revenue, Georgia Institute of Technology   5.000%   6/15/44   $1,000,000   $1,281,050 
Main Street Natural Gas Inc., GA, Gas Project Revenue:                    
Series A   5.000%   5/15/43    800,000    995,992 
Series B   5.000%   3/15/22    4,000,000    4,303,720 
Series C   4.000%   9/1/26    3,500,000    4,093,740 (b)(c)
Total Georgia                  10,674,502 
Hawaii - 1.1%                    
Hawaii State Airports System Revenue, Series A   5.000%   7/1/39    7,000,000    7,090,580 
Idaho - 0.2%                    
Idaho State Health Facilities Authority Revenue, Trinity Health Credit Group, Series A   5.000%   12/1/47    1,100,000    1,365,980 
Illinois - 18.3%                    
Chicago, IL, Board of Education, Dedicated Capital Improvement, Special Tax Revenue   5.000%   4/1/42    1,500,000    1,777,455 
Chicago, IL, Board of Education, GO:                    
Dedicated, Series G, Refunding   5.000%   12/1/34    100,000    122,283 
Dedicated, Series G, Refunding   5.000%   12/1/44    420,000    502,954 
Dedicated, Series H   5.000%   12/1/36    500,000    608,925 
Dedicated, Series H   5.000%   12/1/46    150,000    179,178 
Series D   5.000%   12/1/46    750,000    912,293 
Chicago, IL, GO:                    
Series 2002B   5.500%   1/1/37    220,000    256,612 
Series 2005D, Refunding   5.500%   1/1/34    10,000    11,707 
Series A   5.000%   1/1/44    1,000,000    1,206,970 
Series A, Refunding   5.000%   1/1/26    2,250,000    2,655,900 
Series A, Refunding   6.000%   1/1/38    1,500,000    1,890,585 
Series B   5.500%   1/1/32    3,300,000    3,869,976 
Series C, Refunding   5.000%   1/1/25    3,000,000    3,457,350 
Chicago, IL, O’Hare International Airport Revenue:                    
General Senior Lien, Series B, Refunding   5.000%   1/1/41    1,000,000    1,195,190 
General, Third Lien   5.625%   1/1/35    1,240,000    1,286,512 
General, Third Lien   5.750%   1/1/39    5,035,000    5,241,435(e)
General, Third Lien   5.750%   1/1/39    965,000    1,001,776 
Series A, Refunding   5.000%   1/1/31    1,000,000    1,164,810(a)
Series A, Refunding   5.000%   1/1/35    7,000,000    8,121,680(a)
Trips Obligated Group   5.000%   7/1/48    700,000    842,583(a)

 

See Notes to Schedule of Investments.

 

6

 

 

Western Asset Managed Municipals Fund Inc.

 

Schedule of investments (unaudited) (cont’d) February 29, 2020

 

       Maturity   Face     
Security  Rate   Date   Amount   Value 
Illinois - continued                    
Chicago, IL, Transit Authority, Sales Tax Receipts Revenue, Second Lien   5.000%   12/1/51   $1,000,000   $1,184,770 
Chicago, IL, Wastewater Transmission Revenue:                    
Second Lien   5.000%   1/1/44    1,000,000    1,116,220 
Second Lien, Series A   5.000%   1/1/47    1,000,000    1,159,610 
Second Lien, Series B, Refunding   5.000%   1/1/38    750,000    884,730 
Chicago, IL, Waterworks Revenue:                    
Second Lien, Series 2017, Refunding   5.000%   11/1/29    1,800,000    2,261,898 
Second Lien, Series 2017-2, Refunding, AGM   5.000%   11/1/33    1,290,000    1,605,869 
Second Lien, Series 2017-2, Refunding, AGM   5.000%   11/1/36    1,110,000    1,367,098 
Second Lien, Series 2017-2, Refunding, AGM   5.000%   11/1/37    2,500,000    3,040,550 
Second Lien, Series 2017-2, Refunding, AGM   5.000%   11/1/38    2,000,000    2,426,780 
Illinois State Finance Authority Revenue, Depaul University, Series A   6.125%   10/1/40    5,000,000    5,283,450(e)
Illinois State Finance Authority, Student Housing & Academic Facilities Revenue, CHF Chicago LLC, University of Illinois Chicago Project   5.000%   2/15/50    500,000    580,665 
Illinois State Sports Facilities Authority Revenue:                    
Sport Facilities Project, Series 2019, Refunding, BAM   5.000%   6/15/28    750,000    947,288 
State Tax Supported, Series 2019, Refunding, BAM   5.000%   6/15/30    650,000    814,015 
Illinois State Toll Highway Authority Revenue:                    
Series A   4.000%   1/1/39    4,000,000    4,764,400 
Series C, Refunding   5.000%   1/1/27    3,000,000    3,783,030 
Illinois State University Revenue, Auxiliary Facilities System, Series A, Refunding, AGM   5.000%   4/1/37    250,000    303,825 
Illinois State, GO:                    
Series 2016   5.000%   1/1/33    1,500,000    1,769,115 
Series 2016   5.000%   11/1/33    2,350,000    2,824,582 
Series 2016   5.000%   1/1/35    690,000    811,585 
Series 2016, Refunding   5.000%   2/1/29    1,660,000    2,028,786 
Series A   5.000%   12/1/42    2,000,000    2,415,720 

 

See Notes to Schedule of Investments.

 

7

 

 

Western Asset Managed Municipals Fund Inc.

 

Schedule of investments (unaudited) (cont’d) February 29, 2020

 

       Maturity   Face     
Security  Rate   Date   Amount   Value 
Illinois - continued                    
Series A, Refunding   5.000%   10/1/29   $3,795,000   $4,806,747 
Series B, Refunding   5.000%   10/1/29    750,000    949,950 
Series C   5.000%   11/1/29    1,100,000    1,356,245 
Series D   5.000%   11/1/26    1,250,000    1,527,800 
Series D   5.000%   11/1/27    1,750,000    2,179,327 
Metropolitan Pier & Exposition Authority, IL, Dedicated State Revenue:                    
McCormick Place Expansion Project, Series A, Refunding   5.000%   6/15/50    5,900,000    7,240,421(g)
McCormick Place Expansion Project, Series B-2, Refunding, State Appropriations   5.250%   6/15/50    12,000,000    12,150,000 
Regional Transportation Authority, IL, GO, Series A, Refunding, NATL   6.000%   7/1/29    4,450,000    5,924,374 
Total Illinois                  113,815,024 
Indiana - 3.0%                    
Indiana State Finance Authority Health System Revenue, Indiana University Health, Series B   2.250%   7/1/25    1,000,000    1,068,320 (b)(c)
Indiana State Finance Authority Hospital Revenue, Indiana University Health Obligated Group, Series B, Refunding   1.650%   7/1/22    800,000    809,120 (b)(c)
Indiana State Finance Authority Revenue:                    
Private Activity-Ohio River Bridges East End Crossing Project   5.000%   7/1/44    5,000,000    5,551,550(a)
Second Lien, CWA Authority, Series B   5.000%   10/1/41    5,000,000    5,307,750 
Indianapolis, IN, Local Public Improvement Bond Bank:                    
Courthouse and Jail Project, Series A   4.000%   2/1/44    2,000,000    2,329,700 
Courthouse and Jail Project, Series A   5.000%   2/1/54    2,000,000    2,531,560 
Valparaiso, IN, Exempt Facilities Revenue, Pratt Paper LLC Project   7.000%   1/1/44    1,000,000    1,187,390(a)
Total Indiana                  18,785,390 
Iowa - 0.1%                    
Iowa State Finance Authority Midwestern Disaster Area Revenue, Iowa Fertilizer Company Project, Refunding   3.125%   12/1/22    650,000    676,501 

 

See Notes to Schedule of Investments.

 

8

 

 

Western Asset Managed Municipals Fund Inc.

 

Schedule of investments (unaudited) (cont’d) February 29, 2020

 

       Maturity   Face     
Security  Rate   Date   Amount   Value 
Kentucky - 2.7%                    
Kentucky State Economic Development Finance Authority Revenue, Louisville Arena, Louisville Arena Authority Inc., Refunding, AGM   5.000%   12/1/45    1,000,000    1,205,450 
Kentucky State PEA, Gas Supply Revenue:                    
Series A   4.000%   4/1/24   $5,800,000   $6,451,282(b)(c)
Series B   4.000%   1/1/25    5,000,000    5,648,500 (b)(c)
Series C   4.000%   2/1/28    2,750,000    3,267,770 (b)(c)
Total Kentucky                  16,573,002 
Louisiana - 1.5%                    
Parish of St. Charles, LA, Gulf Opportunity Zone Revenue, Valero Energy Corp., Convertible   4.000%   6/1/22    5,000,000    5,284,000 (b)(c)
Parish of St. John the Baptist, LA, State Revenue, Marathon Oil Corp. Project, Refunding   2.200%   7/1/26    1,300,000    1,367,808 (b)(c)
Port New Orleans, LA, Board of Commissioners Revenue, Series B, Refunding, AGM   5.000%   4/1/43    2,000,000    2,429,020(a)
Total Louisiana                  9,080,828 
Massachusetts - 5.5%                    
Massachusetts State DFA Revenue:                    
Broad Institute Inc., Refunding   5.000%   4/1/36    1,000,000    1,277,100 
Broad Institute Inc., Series A   5.250%   4/1/37    8,000,000    8,388,320(e)
Milford Regional Medical Center, Series F   5.750%   7/15/43    500,000    551,335 
UMass Boston Student Housing Project   5.000%   10/1/48    750,000    880,335 
Wellforce Issue, Series A, Refunding   5.000%   7/1/44    500,000    612,510 
Massachusetts State Port Authority Revenue, Series A, Refunding   5.000%   7/1/36    1,700,000    2,194,598(a)
Massachusetts State School Building Authority, Sales Tax Revenue, Senior, Series A   5.000%   5/15/43    3,000,000    3,362,730 
Massachusetts State Transportation Fund Revenue, Rail Enhancement & Accelerated Bridge Programs, Series A   5.000%   6/1/42    3,600,000    4,513,356 
Massachusetts State, GO, Consolidated Loan, Series C   5.000%   5/1/49    9,500,000    12,201,800 
Total Massachusetts                  33,982,084 
Michigan - 4.2%                    
Detroit, MI, Downtown Development Authority Revenue, Series A, Refunding, AGM   5.000%   7/1/48    1,000,000    1,126,930 
Great Lakes, MI, Water Authority Water Supply System Revenue:                    
Senior Lien, Series A   5.000%   7/1/46    5,500,000    6,613,970 
Senior Lien, Series C, Refunding   5.000%   7/1/35    500,000    612,185 

 

See Notes to Schedule of Investments.

 

9

 

 

Western Asset Managed Municipals Fund Inc.

 

Schedule of investments (unaudited) (cont’d) February 29, 2020

 

       Maturity   Face     
Security  Rate   Date   Amount   Value 
Michigan - continued                    
Lansing, MI, Board of Water & Light Utility System Revenue, Series A   5.000%   7/1/37   $7,000,000   $7,390,320(e)
Michigan State Finance Authority Limited Obligation Revenue, Higher Education, Thomas M Cooley Law School Project, Refunding   6.750%   7/1/44    1,250,000    1,334,575(d)
Michigan State Finance Authority Revenue:                    
Facilities Program, Series 1-A, Refunding   5.250%   10/15/47    650,000    741,208 
Local Government Loan Program, Detroit, MI, Water & Sewer Department, Second Lien Local Project, Series C, Refunding   5.000%   7/1/33    625,000    739,312 
Local Government Loan Program, Detroit, MI, Water & Sewer Department, Series C-1, Refunding   5.000%   7/1/44    1,320,000    1,427,382 
Local Government Loan Program, Detroit, MI, Water & Sewer Department, Series C-6, Refunding   5.000%   7/1/33    1,270,000    1,470,431 
Local Government Loan Program, Detroit, MI, Water & Sewer Department, Series D-2, Refunding   5.000%   7/1/34    250,000    295,353 
Michigan State Strategic Fund Limited Obligation Revenue, I-75 Improvement Project   5.000%   12/31/43    1,400,000    1,729,252(a)
Royal Oak, MI, Hospital Finance Authority Revenue, Beaumont Health Credit Group, Series D, Refunding   5.000%   9/1/39    2,500,000    2,844,425 
Total Michigan                  26,325,343 
Minnesota - 0.3%                    
Western Minnesota Municipal Power Agency Revenue, Series A   5.000%   1/1/46    1,530,000    1,775,519(e)
Missouri - 1.4%                    
Kansas City, MO, IDA, Airport System Revenue, Kansas City International Airport Terminal Modernization Project, Series B   5.000%   3/1/46    3,000,000    3,733,590(a)
Kansas City, MO, IDA, Senior Living Facilities Revenue, Kingswood Project   6.000%   11/15/51    900,000    737,406(d)
Missouri State HEFA Revenue, Senior Living Facilities, Lutheran Senior Services   5.000%   2/1/44    2,710,000    2,987,125 
St. Louis County, MO, IDA, Senior Living Facilities Revenue, Friendship Village, St. Louis Obligated Group, Series A   5.000%   9/1/38    1,250,000    1,435,212 
Total Missouri                  8,893,333 

 

See Notes to Schedule of Investments.

 

10

 

 

Western Asset Managed Municipals Fund Inc.

 

Schedule of investments (unaudited) (cont’d) February 29, 2020

 

       Maturity   Face     
Security  Rate   Date   Amount   Value 
Nevada - 0.2%                
Reno, NV, Hospital Revenue, Washoe Medical Center, AGM   5.500%   6/1/33   $1,185,000   $1,188,365 
New Jersey - 8.1%                    
New Jersey Institute of Technology, GO, Series A   5.000%   7/1/45    750,000    884,610 
New Jersey State EDA Revenue:                    
Cigarette Tax, Refunding   5.000%   6/15/26    2,500,000    2,688,250 
Private Activity-The Goethals Bridge Replacement Project, AGM   5.125%   7/1/42    2,500,000    2,815,950(a)
School Facilities Construction, Series BBB, Refunding   5.500%   6/15/31    750,000    930,518 
School Facilities Construction, Series I, Refunding, State Appropriations (SIFMA Municipal Swap Index Yield + 1.600%)   2.750%   3/1/28    15,000,000    15,359,250(c)
Transit Transportation Project, Series A   5.000%   11/1/32    1,000,000    1,279,230 
New Jersey State EDA, Lease Revenue, State House Project, Series B   5.000%   6/15/43    4,000,000    4,898,920 
New Jersey State EDA, Special Facility Revenue:                    
Continental Airlines Inc. Project   5.250%   9/15/29    3,000,000    3,301,500(a)
Port Newark Container Terminal LLC Project, Refunding   5.000%   10/1/37    650,000    778,700(a)
New Jersey State Health Care Facilities Financing Authority Revenue:                    
Hackensack Meridian Health, Series A, Refunding   5.000%   7/1/38    400,000    494,496 
RWJ Barnabas Health Obligation Group, Series A, Refunding   5.000%   7/1/43    1,200,000    1,474,080 
New Jersey State Transportation Trust Fund Authority Revenue:                    
Transportation Program, Series AA   5.250%   6/15/43    1,500,000    1,876,455 
Transportation Program, Series BB   4.000%   6/15/37    2,250,000    2,597,152 
Transportation System, Series A, Refunding   5.000%   12/15/25    4,500,000    5,407,830 
New Jersey State Turnpike Authority Revenue, Series G, Refunding   5.000%   1/1/35    3,830,000    4,881,105 
Tobacco Settlement Financing Corp., NJ, Revenue, Senior, Series A, Refunding   5.000%   6/1/46    600,000    731,070 
Total New Jersey                  50,399,116 

 

See Notes to Schedule of Investments.

 

11

 

 

Western Asset Managed Municipals Fund Inc.

 

Schedule of investments (unaudited) (cont’d) February 29, 2020

 

       Maturity   Face     
Security  Rate   Date   Amount   Value 
New York - 9.6%                    
MTA, NY, Dedicated Tax Fund Revenue, Green Bonds, Series A   5.000%   11/15/47   $1,500,000   $1,849,065 
New York City, NY, Municipal Water Finance Authority, Water & Sewer System Revenue:                    
Second General Resolution Fiscal 2013, Unrefunded   5.000%   6/15/47    2,650,000    2,984,774 
Subordinated, Series BB-1   5.000%   6/15/46    1,500,000    1,876,350 
New York City, NY, TFA Revenue Future Tax Secured, Subordinated, Series B-1   5.000%   8/1/45    3,000,000    3,749,400 
New York State Dormitory Authority Revenue, Bidding Group 3 Bonds, Series A   5.000%   3/15/42    1,000,000    1,267,340 
New York State Dormitory Authority, Sales Tax Revenue, Group 4, Series E, Refunding   5.000%   3/15/44    2,000,000    2,555,640 
New York State Dormitory Authority, State Personal Income Tax Revenue:                    
Bidding Group 3, Series B, Refunding   5.000%   2/15/43    3,000,000    3,721,890 
Bidding Group 4, Series A, Refunding   5.000%   3/15/46    3,250,000    4,165,037 
New York State Liberty Development Corp., Goldman Sachs Headquarters   5.500%   10/1/37    1,485,000    2,262,383 
New York State Liberty Development Corp. Revenue, Goldman Sachs Headquarters, Refunding   5.250%   10/1/35    3,045,000    4,403,100 
New York State Liberty Development Corp., Liberty Revenue:                    
3 World Trade Center Project, Class 1, Refunding   5.000%   11/15/44    1,750,000    1,971,778(d)
4 World Trade Center Project, Refunding   5.750%   11/15/51    5,000,000    5,416,000 
New York State Transportation Development Corp., Special Facilities Revenue:                    
Delta Air Lines Inc., LaGuardia Airport Terminals C and D Redevelopment Project   5.000%   1/1/36    1,750,000    2,158,468(a)
LaGuardia Airport Terminal B Redevelopment Project, Series A   5.000%   7/1/41    8,000,000    9,239,040(a)
LaGuardia Airport Terminal B Redevelopment Project, Series A   5.000%   7/1/46    1,500,000    1,726,710(a)
Port Authority of New York & New Jersey Revenue:                    
Consolidated Series 166, Refunding   5.000%   1/15/41    2,750,000    2,845,838 
Consolidated Series 194, Refunding   5.000%   10/15/41    6,400,000    7,764,800(h)
Total New York                  59,957,613 

 

See Notes to Schedule of Investments.

 

12

 

 

Western Asset Managed Municipals Fund Inc.

 

Schedule of investments (unaudited) (cont’d) February 29, 2020
 
       Maturity   Face     
Security  Rate   Date   Amount   Value 
North Carolina - 1.7%                    
Charlotte, NC, Airport Revenue, Charlotte Douglas International Airport, Series A, Refunding   5.000%   7/1/49   $1,750,000   $2,244,865 
Charlotte, NC, Lease Revenue, COP, Convention Facility Project, Series A, Refunding   4.000%   6/1/49    750,000    883,267 
North Carolina State Limited Obligation Revenue, Series A   4.000%   5/1/34    3,500,000    4,257,925 
North Carolina State Turnpike Authority, Triangle Expressway System Revenue, Senior Lien, Refunding   5.000%   1/1/30    300,000    370,098 
North Carolina State Turnpike Authority, Monroe Expressway Toll Revenue:                    
Series A, Refunding, State Appropriations   5.000%   7/1/47    750,000    879,008 
Series A, Refunding, State Appropriations   5.000%   7/1/51    1,500,000    1,750,860 
Total North Carolina                  10,386,023 
Ohio - 2.7%                    
Buckeye, OH, Tobacco Settlement Financing Authority:                    
Series A-2, Refunding   4.000%   6/1/48    1,250,000    1,434,275(g)
Series B-2, Refunding   5.000%   6/1/55    1,750,000    1,979,040(g)
JobsOhio Beverage System, Senior Lien, Series A   5.000%   1/1/38    8,000,000    8,942,320(e)
Ohio State Air Quality Development Authority Revenue, American Electric Company Project, Series B, Refunding   2.500%   10/1/29    1,500,000    1,596,420 (a)(b)(c)
Ohio State Water Development Authority, U.S. Steel Corp. Project, Refunding   6.600%   5/1/29    3,000,000    3,187,650 
Total Ohio                  17,139,705 
Oklahoma - 0.1%                    
Oklahoma State Turnpike Authority Revenue, Second Series C   5.000%   1/1/47    700,000    847,959 
Payne County, OK, EDA Revenue, Epworth Living at The Ranch, Series A   6.875%   11/1/46    332,734    832*(i)
Total Oklahoma                  848,791 
Oregon - 0.4%                    
Oregon State Facilities Authority Revenue, Legacy Health Project, Series A, Refunding   5.000%   6/1/46    2,000,000    2,380,540 

 

See Notes to Schedule of Investments.

 

13

 

 

WESTERN ASSET MANAGED MUNICIPALS FUND INC.

 

Schedule of investments (unaudited) (cont’d) February 29, 2020

 

SECURITY  RATE   MATURITY
DATE
  FACE
AMOUNT
   VALUE 
Pennsylvania - 4.7%               
Commonwealth Financing Authority, PA, Tobacco Master Settlement Payment Revenue:                 
Series 2018  5.000%  6/1/32  $250,000   $316,075 
Series 2018  5.000%  6/1/33   500,000    630,785 
Cumberland County, PA, Municipal Authority, Diakon Lutheran Social Ministries Project, Refunding  5.000%  1/1/30   2,375,000    2,714,269 
East Hempfield Township, PA, IDA Revenue, Student Services Inc. Student Housing Project - Millersville University  5.000%  7/1/47   550,000    627,484 
Pennsylvania State Economic Development Financing Authority, Solid Waste Disposal Revenue, Waste Management Inc. Project  2.150%  7/1/24   1,200,000    1,249,116(a)(b)(c)
Pennsylvania State Higher EFA Revenue, Trustees of University of Pennsylvania, Series A  5.000%  2/15/48   1,250,000    1,567,950 
Pennsylvania State Turnpike Commission Revenue:                 
Subordinated, Series B  5.250%  12/1/41   2,275,000    2,453,314(e)
Subordinated, Series B  5.250%  12/1/41   3,725,000    4,013,576(e)
Subordinated, Series B  5.000%  12/1/48   2,900,000    3,596,058 
Pennsylvania State, GO:                 
Refunding  5.000%  7/15/29   2,250,000    3,031,335 
Refunding  5.000%  7/15/30   1,000,000    1,326,150 
Philadelphia, PA, Authority for IDR, Lease Revenue, Refunding  5.000%  10/1/30   1,200,000    1,620,012 
Philadelphia, PA, School District, GO, Series A  5.000%  9/1/33   1,755,000    2,081,114 
Philadelphia, PA, Water & Wastewater Revenue, Series A  5.000%  7/1/45   1,000,000    1,141,440 
State Public School Building Authority, PA, Lease Revenue:                 
Philadelphia School District Project, Series A, Refunding, AGM, State Aid Withholding  5.000%  6/1/31   600,000    737,088 
Philadelphia School District Project, Series A, Refunding, AGM, State Aid Withholding  5.000%  6/1/33   1,780,000    2,179,396 
Total Pennsylvania               29,285,162 

 

See Notes to Schedule of Investments.

 

14

 

 

WESTERN ASSET MANAGED MUNICIPALS FUND INC.

 

Schedule of investments (unaudited) (cont’d) February 29, 2020

 

SECURITY  RATE   MATURITY
DATE
  FACE
AMOUNT
   VALUE 
Puerto Rico - 2.6%                 
Puerto Rico Commonwealth Aqueduct & Sewer Authority Revenue, Senior Lien, Series A  5.250%  7/1/42  $3,920,000   $4,243,400 
Puerto Rico Electric Power Authority Revenue:                 
Series A  5.000%  7/1/42   1,400,000    1,118,250*(i)
Series A  5.050%  7/1/42   350,000    279,562*(i)
Series XX  5.250%  7/1/40   2,875,000    2,303,594*(i)
Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue:                 
CAB, Restructured, Series A-1  0.000%  7/1/27   960,000    821,203 
CAB, Restructured, Series A-1  0.000%  7/1/46   9,555,000    2,842,804 
Restructured, Series A-1  4.750%  7/1/53   500,000    566,060 
Restructured, Series A-1  5.000%  7/1/58   3,500,000    4,014,045 
Total Puerto Rico               16,188,918 
South Carolina - 0.3%                 
South Carolina State Ports Authority Revenue, Series 2018  5.000%  7/1/48   1,750,000    2,148,108(a)
South Dakota - 0.1%                 
South Dakota State HEFA Revenue, Regional Health  5.000%  9/1/40   500,000    610,935 
Tennessee - 0.9%                 
Metropolitan Government of Nashville & Davidson County, TN, Water & Sewer Revenue:                 
Subordinated, Green Bond, Series A  5.000%  7/1/42   500,000    625,780 
Subordinated, Series B, Refunding  5.000%  7/1/46   1,000,000    1,244,420 
Tennessee State Energy Acquisition Corp., Gas Revenue, Series 2018  4.000%  11/1/25   3,000,000    3,442,350(b)(c)
Total Tennessee               5,312,550 
Texas - 11.1%                 
Alamo, TX, Regional Mobility Authority, Vehicle Registration Fee Revenue, Senior Lien  5.000%  6/15/46   1,300,000    1,530,360 
Arlington, TX, Special Tax Revenue, Senior Lien, Series A, AGM  5.000%  2/15/48   1,250,000    1,531,313 
City of Austin, TX, Airport System Revenue, Series B  5.000%  11/15/37   2,050,000    2,644,111(a)
Forney, TX, ISD, GO, School Building, Series 2019, PSF - GTD  5.000%  2/15/49   500,000    609,620 
Grand Parkway Transportation Corp., TX, System Toll Revenue, Convertible CAB, Step Bond, Series A, B and C, (0.000% until 10/1/23, 5.500%)  0.000%  10/1/36   4,000,000    4,562,360 

 

See Notes to Schedule of Investments.

 

15

 

WESTERN ASSET MANAGED MUNICIPALS FUND INC.

 

Schedule of investments (unaudited) (cont’d) February 29, 2020

 

SECURITY  RATE   MATURITY
DATE
  FACE
AMOUNT
   VALUE 
Texas - continued                 
Harris County, TX, Health Facilities Development Corp. Revenue, School Health Care System, Series B  5.750%  7/1/27  $940,000   $1,169,623(e)(f)
Houston, TX, Airport Systems Revenue, Series B-1  5.000%  7/15/30   5,500,000    6,338,090(a)
Houston, TX, Combined Utility System Revenue, First Lien, Series D, Refunding  5.000%  11/15/44   1,000,000    1,158,650 
Love Field, TX, Airport Modernization Corp., General Airport Revenue:                 
Series 2017  5.000%  11/1/33   120,000    145,916(a)
Series 2017  5.000%  11/1/36   120,000    145,213(a)
Love Field, TX, Airport Modernization Corp., Special Facilities Revenue, Southwest Airlines Co. Project  5.250%  11/1/40   14,250,000    14,648,287 
New Hope Cultural Education Facilities Finance Corp., TX, Student Housing Revenue, Collegiate Housing College Station, AGM  5.000%  4/1/46   750,000    841,890 
North Texas Tollway Authority Revenue:                 
Series A, Refunding  5.000%  1/1/39   825,000    994,315 
Series B, Refunding  5.000%  1/1/40   2,000,000    2,216,640 
Series B, Refunding  5.000%  1/1/45   2,105,000    2,444,221 
Prosper, TX, ISD, GO, School Building, PSF - GTD  5.000%  2/15/49   3,250,000    4,137,478 
Tarrant County, TX, Cultural Education Facilities Finance Corp., Retirement Facility Revenue, Buckner Senior Living Ventana Project, Series A  6.625%  11/15/37   610,000    744,249 
Texas State Municipal Gas Acquisition & Supply Corp. III, Series 2012  5.000%  12/15/27   8,550,000    9,453,136 
Texas State Private Activity Bond Surface Transportation Corp. Revenue:                 
Senior Lien, Blueridge Transportation Group LLC  5.000%  12/31/45   1,600,000    1,868,384(a)
Senior Lien, LBJ Infrastructure Group LLC  7.000%  6/30/40   2,000,000    2,037,540 
Texas State Public Finance Authority Lease Revenue, Series A, Refunding  4.000%  2/1/39   1,500,000    1,770,450 
Texas State Water Development Board Revenue, State Water Implementation Fund, Series A  5.000%  10/15/43   6,250,000    7,929,562 

 

See Notes to Schedule of Investments.

16

 

 

WESTERN ASSET MANAGED MUNICIPALS FUND INC.

 

Schedule of investments (unaudited) (cont’d) February 29, 2020

 

SECURITY  RATE   MATURITY
DATE
  FACE
AMOUNT
   VALUE 
Texas - continued                 
Woodloch, TX, Health Facilities Development Corp., Senior Housing Revenue:                 
Inspired Living at Lewisville Project, Series A-1  6.750%  12/1/51  $500,000   $408,280*(d)
Subordinate, Inspired Living at Lewisville Project, Series B  10.000%  12/1/51   150,000    105,531 
Total Texas               69,435,219 
U.S. Virgin Islands - 0.5%                 
Virgin Islands Public Finance Authority Revenue:                 
Matching Fund Loan, Senior Lien, Series A  5.000%  10/1/29   710,000    713,110 
Subordinated, Matching Fund Loan, Cruzan Project, Series A  6.000%  10/1/39   1,475,000    1,475,000 
Subordinated, Matching Fund Loan, Diageo Project, Series A  6.750%  10/1/37   1,200,000    1,202,304 
Total U.S. Virgin Islands               3,390,414 
Utah - 1.4%                 
Salt Lake City, UT, Airport Revenue, Salt Lake City International Airport, Series A  5.000%  7/1/43   5,250,000    6,508,845(a)
Utah State Charter School Finance Authority, Charter School Revenue, Syracuse Arts Academy Project, UT CSCE  5.000%  4/15/47   1,000,000    1,179,390 
Utah State Infrastructure Agency Telecommunication Revenue, Series 2019  4.000%  10/15/42   1,200,000    1,314,672 
Total Utah               9,002,907 
Virginia - 1.4%                 
Virginia State Port Authority, Port Facilities Revenue:                 
Series B, Refunding  5.000%  7/1/41   1,100,000    1,320,022(a)
Series B, Refunding  5.000%  7/1/45   1,500,000    1,788,450(a)
Virginia State Small Business Financing Authority Revenue:                 
Senior Lien, Elizabeth River Crossing OpCo LLC Project  5.250%  1/1/32   3,000,000    3,264,990(a)
Senior Lien, Elizabeth River Crossing OpCo LLC Project  5.500%  1/1/42   2,000,000    2,175,560(a)
Total Virginia               8,549,022 

 

See Notes to Schedule of Investments.

 

17

 

 

WESTERN ASSET MANAGED MUNICIPALS FUND INC.

 

Schedule of investments (unaudited) (cont’d) February 29, 2020

 

SECURITY  RATE   MATURITY
DATE
  FACE
AMOUNT
   VALUE 
Washington - 1.5%               
Port of Seattle, WA, Revenue:                 
Intermediate Lien, Series 2019  5.000%  5/1/43  $1,500,000   $1,809,780(a)
Intermediate Lien, Series 2019  4.000%  4/1/44   750,000    858,697(a)
Intermediate Lien, Series 2019  5.000%  4/1/44   1,500,000    1,875,015(a)
Washington State Health Care Facilities Authority Revenue, Commonspirit Health, Series B, Refunding  5.000%  8/1/26   1,000,000    1,212,420(b)(c)
Washington State, GO, Series R-2018D, Refunding  5.000%  8/1/34   3,000,000    3,808,230 
Total Washington               9,564,142 
West Virginia - 0.3%                 
West Virginia University Revenue, West Virginia Projects, Series B, Refunding  5.000%  10/1/29   1,250,000    1,659,463(b)(c)
Wisconsin - 1.5%                 
Mount Pleasant, WI, Tax Increment Revenue, Series A  5.000%  4/1/48   2,500,000    3,087,425 
Public Finance Authority, WI, Limited Obligation Pilot Revenue:                 
American Dream @ Meadowlands Project, Series 2017  5.000%  12/1/27   1,000,000    1,156,700(d)
American Dream @ Meadowlands Project, Series 2017  7.000%  12/1/50   1,500,000    1,833,960(d)
Public Finance Authority, WI, Revenue, Fellowship Senior Living Project, Series A, Refunding  5.000%  1/1/46   3,000,000    3,546,030 
Total Wisconsin               9,624,115 
TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS
(Cost - $767,468,582)
               870,349,714 
Short-Term Investments - 0.6%                 
Municipal Bonds - 0.6%                 
Arizona - 0.0%                 
Phoenix, AZ, IDA, Health Care Facilities Revenue, Mayo Clinic, Series B, SPA - Northern Trust Company  1.180%  11/15/52   300,000    300,000(j)(k)
Indiana - 0.6%                 
Indiana State Finance Authority Hospital Revenue, Parkview Health System Obligated Group, Series B, LOC - Wells Fargo Bank N.A.  1.200%  11/1/39   3,600,000    3,600,000(j)(k)
Mississippi - 0.0%                 
Mississippi State Business Finance Corp., Gulf Opportunity Zone, IDR, Chevron USA Inc. Project, Series L  1.200%  11/1/35   100,000    100,000(j)(k)
TOTAL MUNICIPAL BONDS
(Cost - $4,000,000)
               4,000,000 

 

See Notes to Schedule of Investments.

 

18

 

WESTERN ASSET MANAGED MUNICIPALS FUND INC.

 

Schedule of investments (unaudited) (cont’d) February 29, 2020

 

SECURITY  RATE   SHARES   VALUE 
Money Market Funds - 0.0%               
Dreyfus Government Cash Management, Institutional Shares (Cost - $90,134)   1.491%   90,134   $90,134 
TOTAL SHORT-TERM INVESTMENTS
(Cost - $4,090,134)
             4,090,134 
TOTAL INVESTMENTS - 140.3%
(Cost - $771,558,716)
             874,439,848 
Auction Rate Cumulative Preferred Stock, at Liquidation Value - (4.5)%             (27,650,000)
Variable Rate Demand Preferred Stock, at Liquidation Value - (34.9)%             (217,575,000)
Liabilities in Excess of Other Assets - (0.9)%             (6,058,847)
TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS - 100.0%            $623,156,001 

 

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

 

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

 

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

 

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

 

(i)The coupon payment on these securities is currently in default as of February 29, 2020.

 

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

 

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

 

See Notes to Schedule of Investments.

 

19

 

 

WESTERN ASSET MANAGED MUNICIPALS FUND INC.

 

Schedule of investments (unaudited) (cont’d) February 29, 2020

 

Abbreviations 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
CWA Clean Water Act
DFA Development Finance Agency
EDA Economic Development Authority
EFA Educational Facilities Authority
GO General Obligation
GTD Guaranteed
HEFA Health & Educational Facilities Authority
IDA Industrial Development Authority
IDR Industrial Development Revenue
ISD Independent School District
LOC Letter of Credit
MFA Municipal Finance Authority
MTA Metropolitan Transportation Authority
NATL National Public Finance Guarantee Corporation - Insured Bonds
PCFA Pollution Control Financing Authority
PEA Public Energy Authority
PFA Public Facilities Authority
PSF Permanent School Fund
SD School District
SIFMA Securities Industry and Financial Markets Association
SPA Standby Bond Purchase Agreement — Insured Bonds
TFA Transitional Finance Authority
USD Unified School District

 

At February 29, 2020, the Fund had the following open futures contracts:

 

   NUMBER OF
CONTRACTS
   EXPIRATION
DATE
   NOTIONAL
AMOUNT
   MARKET
VALUE
   UNREALIZED
DEPRECIATION
 
Contracts to Sell:                         
U.S. Treasury Ultra Long-Term Bonds   57    6/20  $11,558,699   $11,827,500   $(268,801)

 

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.

 

20

 

 

Notes to Schedule of Investments (unaudited)

 

1. Organization and significant accounting policies

 

Western Asset Managed Municipals Fund Inc. (the “Fund”) was incorporated in Maryland and is registered as a non-diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund seeks to maximize current income exempt from federal income tax as is consistent with preservation of principal.

 

The Fund seeks to achieve its objective by investing primarily in long-term investment grade municipal debt securities issued by state and local governments, political subdivisions, agencies and public authorities (municipal obligations). Under normal market conditions, the Fund will invest at least 80% of its total assets in municipal obligations rated investment grade at the time of investment.

 

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 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.

 

21

 

 

Notes to Schedule of Investments (unaudited) (continued)

 

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)

 

22

 

 

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 and liabilities carried at fair value:

 

ASSETS
DESCRIPTION  QUOTED PRICES
(LEVEL 1)
   OTHER SIGNIFICANT OBSERVABLE INPUTS
(LEVEL 2)
   SIGNIFICANT
UNOBSERVABLE
INPUTS
(LEVEL 3)
   TOTAL 
Municipal Bonds†      $870,349,714       $870,349,714 
Short-Term Investments†:                    
Municipal Bonds       4,000,000        4,000,000 
Money Market Funds  $90,134            90,134 
Total Short-Term Investments   90,134    4,000,000        4,090,134 
Total Investments  $90,134   $874,349,714       $874,439,848 

 

LIABILITIES
DESCRIPTION  QUOTED PRICES (LEVEL 1)   OTHER SIGNIFICANT OBSERVABLE INPUTS
(LEVEL 2)
   SIGNIFICANT
UNOBSERVABLE
INPUTS
(LEVEL 3)
   TOTAL 
Other Financial Instruments:                    
Futures Contracts  $268,801           $268,801 

 

See Schedule of Investments for additional detailed categorizations.

 

23