NPORT-EX 2 LMF5300WAMuniPartFd.htm HTML

WESTERN ASSET MUNICIPAL PARTNERS FUND INC.

 

Schedule of investments (unaudited)    August 31, 2020

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  
MUNICIPAL BONDS - 151.2%           

Alabama - 2.9%

           

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

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

Jefferson County, AL, Sewer Revenue:

           

Subordinated Lien, Warrants, Series D, Refunding

      6.000 %      10/1/42        760,000        877,268  

Subordinated Lien, Warrants, Series D, Refunding

      6.500 %      10/1/53        1,300,000        1,516,385  

Lower Alabama Gas District, Natural Gas Revenue, Series A

      5.000 %      9/1/46        850,000        1,199,817  

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

      4.000 %      6/1/24        850,000        941,452 (b)(c) 
          

 

 

  

Total Alabama

              4,709,236  
          

 

 

  

Alaska - 0.9%

           

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

      5.000 %      12/1/39        245,000        303,349  

Valdez, AK, Marine Terminal Revenue, BP Pipelines Inc. Project, Series C, Refunding

      5.000 %      1/1/21        1,150,000        1,168,032  
          

 

 

  

Total Alaska

              1,471,381  
          

 

 

  

Arizona - 3.6%

           

Arizona State IDA, Revenue Bonds, Lincoln

           

South Beltway Project

      5.000 %      8/1/26        500,000        619,120  

Chandler, AZ, IDA Revenue, Intel Corp. Project

      5.000 %      6/3/24        1,650,000        1,907,202 (a)(b)(c) 

Navajo Nation, AZ, Revenue, Series A, Refunding

      5.500 %      12/1/30        275,000        305,035 (d)  

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

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

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

      5.000 %      12/1/32        2,000,000        2,636,280  
          

 

 

  

Total Arizona

              5,793,872  
          

 

 

  

California - 21.2%

           

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

      5.000 %      10/1/34        500,000        584,425  

Bay Area Toll Authority, CA, Toll Bridge Revenue, San Francisco Bay Area, Series B-1, (SIFMA Municipal Swap Index Yield + 1.100%)

      1.190 %      4/1/24        2,500,000        2,515,850 (b)(c) 

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

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

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal Partners Fund Inc. 2020 Quarterly Report    

  

 

 

1

WESTERN ASSET MUNICIPAL PARTNERS FUND INC.

 

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

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

California - (continued)

           

California State MFA Revenue:

           

Senior Lien, LINXS APM Project, Series A

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

Senior Lien, LINXS APM Project, Series A

      5.000 %      12/31/47        500,000        572,170 (a)  

California State PCFA Water Furnishing Revenue, Poseidon Resources Desalination Project

      5.000 %      11/21/45        1,000,000        1,039,320 (a)(d) 

California State, GO:

           

Various Purpose

      5.000 %      3/1/36        500,000        659,270  

Various Purpose

      5.000 %      4/1/43        3,000,000        3,326,820  

Various Purpose, Refunding

      4.000 %      3/1/40        500,000        600,705  

Chino Valley, CA, USD, GO, Series B

      5.000 %      8/1/55        500,000        643,655  

Eastern Municipal Water District Financing Authority, CA, Water & Wastewater Revenue, Series D

      5.000 %      7/1/47        1,000,000        1,218,580  

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

      5.250 %      6/1/47        1,050,000        1,082,980  

Los Angeles, CA, Department of Airports Revenue:

           

Los Angeles International Airport, Subordinated, Series D

      5.000 %      5/15/49        1,500,000        1,798,065 (a) 

Los Angeles International Airport, Subordinated, Series F

      5.000 %      5/15/27        1,500,000        1,870,875 (a) 

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

      5.000 %      7/1/47        1,000,000        1,212,770  

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

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

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

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

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

           

Series B

      7.000 %      11/1/34        2,490,000        3,874,714  

Series C

      6.500 %      11/1/39        2,000,000        3,186,260  

Northern California Energy Authority, Commodity Supply Revenue, Series A

      4.000 %      7/1/24        500,000        558,160 (b)(c) 

Rancho Cucamonga, CA, RDA, Rancho Redevelopment Project Area, AGM

      5.000 %      9/1/30        750,000        866,130  

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

      5.500 %      9/1/45        500,000        533,985  

 

See Notes to Schedule of Investments.

 

 

 

2

  

    Western Asset Municipal Partners Fund Inc. 2020 Quarterly Report

  

WESTERN ASSET MUNICIPAL PARTNERS FUND INC.

 

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

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

California - (continued)

           

Riverside County, CA, Transportation Commission Toll Revenue:

           

Senior Lien, Series A

      5.750 %      6/1/44      $ 100,000      $ 109,122  

Senior Lien, Series A

      5.750 %      6/1/48        200,000        217,884  

Riverside, CA, Electric Revenue, Series A, Refunding

      5.000 %      10/1/48        750,000        943,965  

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

      5.000 %      10/1/38        300,000        375,678  

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

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

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

      1.400 %      6/1/22        200,000        199,862  

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

      5.000 %      6/1/48        300,000        364,884  

Tulare, CA, Sewer Revenue, Refunding, AGM

      5.000 %      11/15/41        2,000,000        2,410,160  
          

 

 

  

Total California

              33,973,387  
          

 

 

  

Colorado - 5.3%

           

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

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

Colliers Hill Metropolitan District #2, CO, GO, Senior Bonds, Series A

      6.250 %      12/1/37        750,000        772,507  

Colorado State Health Facilities Authority Revenue, Commonspirit Health Project, Series A-1

      4.000 %      8/1/44        600,000        665,538  

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

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

Public Authority for Colorado Energy, Natural Gas Purchase Revenue

      6.500 %      11/15/38        4,000,000        6,377,720  
          

 

 

  

Total Colorado

              8,549,563  
          

 

 

  

Connecticut - 2.7%

           

Connecticut State Special Tax Revenue:

           

Special Tax Obligation Bonds, Series A

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

Transportation Infrastructure, Series A

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

Connecticut State, GO:

           

Series A

      4.000 %      4/15/37        500,000        582,620  

Series E

      5.000 %      10/15/34        270,000        325,477  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal Partners Fund Inc. 2020 Quarterly Report    

  

 

 

3

WESTERN ASSET MUNICIPAL PARTNERS FUND INC.

 

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

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Connecticut - (continued)

           

Harbor Point, CT, Infrastructure Improvement District, Special Obligation Revenue, Harbor Point Project Ltd., Refunding

      5.000 %      4/1/39      $ 250,000      $ 268,670 (d) 

University of Connecticut, Student Fee Revenue, Series A

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

 

 

  

Total Connecticut

              4,273,402  
          

 

 

  

Delaware - 0.4%

           

Delaware State Health Facilities Authority Revenue, Beebe Medical Center Project

      5.000 %      6/1/48        500,000        576,610  
          

 

 

  

District of Columbia - 0.7%

           

District of Columbia Revenue:

           

Ingleside Rock Creek Project, Series A

      4.125 %      7/1/27        200,000        195,622  

KIPP DC Issue, Series A, Refunding

      5.000 %      7/1/37        800,000        935,480  
          

 

 

  

Total District of Columbia

              1,131,102  
          

 

 

  

Florida - 9.1%

           

Broward County, FL, Airport System Revenue:

           

Series 2017

      5.000 %      10/1/47        350,000        406,686 (a)  

Series A

      5.000 %      10/1/45        1,000,000        1,132,650 (a) 

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

      6.125 %      6/15/46        160,000        176,128 (d)  

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

      5.000 %      10/1/40        740,000        831,619  

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

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

Miami-Dade County, FL, Aviation Revenue:

           

Series A, Refunding

      5.000 %      10/1/41        3,000,000        3,486,780  

Series A, Refunding

      5.000 %      10/1/49        500,000        601,355 (a)  

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

      5.000 %      7/1/24        1,250,000        1,426,825  

Miami-Dade County, FL, GO, Seaport, Series C, Refunding

      5.000 %      10/1/23        2,315,000        2,432,787  

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

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

Miami-Dade County, FL, School District, GO

      5.000 %      3/15/30        1,000,000        1,254,270  

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

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

 

See Notes to Schedule of Investments.

 

 

 

4

  

    Western Asset Municipal Partners Fund Inc. 2020 Quarterly Report

  

WESTERN ASSET MUNICIPAL PARTNERS FUND INC.

 

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

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Florida - (continued)

           

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

      5.000 %      7/1/50      $ 250,000      $ 306,398  

Volusia County, FL, EFA Revenue, Educational Facilities Embry-Riddle Aeronautical University Inc. Project, Refunding

      5.000 %      10/15/42        1,000,000        1,192,790  
          

 

 

  

Total Florida

              14,520,523  
          

 

 

  

Georgia - 0.6%

           

Main Street Natural Gas Inc., GA, Gas Project Revenue:

           

Series A

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

Series C

      4.000 %      9/1/26        150,000        174,810 (b)(c) 
          

 

 

  

Total Georgia

              943,858  
          

 

 

  

Illinois - 17.6%

           

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

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

Chicago, IL, Board of Education, GO:

           

Dedicated, Series G, Refunding

      5.000 %      12/1/44        330,000        359,776  

Series D

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

Chicago, IL, GO:

           

Series 2002B

      5.500 %      1/1/37        60,000        65,389  

Series A

      5.000 %      1/1/44        100,000        109,580  

Series A, Refunding

      5.000 %      1/1/28        750,000        854,820  

Series A, Refunding

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

Series C, Refunding

      5.000 %      1/1/25        1,000,000        1,106,700  

Series D, Refunding

      5.500 %      1/1/34        950,000        1,040,392  

Chicago, IL, O’Hare International Airport Revenue:

           

General Senior Lien, Series B, Refunding

      5.000 %      1/1/41        250,000        286,270  

Senior Lien, Series D

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

Senior Lien, Series D

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

Series C

      5.000 %      1/1/35        2,200,000        2,514,622 (a) 

Trips Obligated Group

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

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

           

Second Lien

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

Second Lien, Series A, Refunding

      4.000 %      12/1/55        600,000        657,744 (e) 

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

      5.000 %      1/1/38        750,000        871,447  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal Partners Fund Inc. 2020 Quarterly Report    

  

 

 

5

WESTERN ASSET MUNICIPAL PARTNERS FUND INC.

 

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

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Illinois - (continued)

           

Chicago, IL, Waterworks Revenue:

           

Second Lien Project

      5.000 %      11/1/34      $ 800,000      $ 897,168  

Second Lien Project

      5.000 %      11/1/39        500,000        555,755  

Illinois State Finance Authority Revenue, Northshore University Health System, Refunding

      4.000 %      8/15/40        500,000        582,895  

Illinois State Sports Facilities Authority Revenue:

           

State Tax Supported, Series 2019, Refunding

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

State Tax Supported, Series 2019, Refunding, BAM

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

Illinois State Toll Highway Authority Revenue:

           

Senior Series A, Refunding

      5.000 %      12/1/31        1,500,000        1,802,325  

Series C, Refunding

      5.000 %      1/1/27        500,000        624,360  

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

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

Illinois State, GO:

           

Series 2006

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

Series 2016

      5.000 %      1/1/33        500,000        544,115  

Series 2016

      5.000 %      11/1/33        650,000        713,440  

Series 2016, Refunding

      5.000 %      2/1/29        440,000        494,943  

Series A

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

Series A

      5.000 %      5/1/39        600,000        660,228  

Series A, Refunding

      5.000 %      10/1/29        1,300,000        1,494,844  

Series A, Refunding

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

Series D

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

Metropolitan Pier & Exposition Authority, IL, Dedicated State Revenue, McCormick Place Expansion Project, Series A, Refunding

      5.000 %      6/15/50        750,000        845,392  

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

      5.000 %      12/1/44        1,000,000        1,127,890  

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

      6.000 %      7/1/29        1,300,000        1,683,487  

University of Illinois, COP, Series C, Refunding

      5.000 %      3/15/24        1,000,000        1,145,000  
          

 

 

  

Total Illinois

              28,255,264  
          

 

 

  

Indiana - 1.9%

           

Indianapolis, IN, Local Public Improvement Bond Bank:

           

Courthouse and Jail Project, Series A

      5.000 %      2/1/54        850,000        1,047,710  

Series K

      5.000 %      6/1/27        2,000,000        2,058,620  
          

 

 

  

Total Indiana

              3,106,330  
          

 

 

  

 

See Notes to Schedule of Investments.

 

 

 

6

  

    Western Asset Municipal Partners Fund Inc. 2020 Quarterly Report

  

WESTERN ASSET MUNICIPAL PARTNERS FUND INC.

 

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

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Iowa - 0.1%

           

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

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

 

 

  

Kentucky - 1.1%

           

Kentucky State PEA, Gas Supply Revenue, Series A

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

 

 

  

Louisiana - 2.4%

           

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

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

Shreveport, LA, Water & Sewer Revenue, Refunding, AGM

      5.000 %      12/1/34        2,080,000        2,455,981  

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

           

Marathon Oil Corp. Project, Refunding

      2.200 %      7/1/26        350,000        351,715 (b)(c) 

Marathon Oil Corp. Project, Refunding

      2.375 %      7/1/26        500,000        507,225 (b)(c) 
          

 

 

  

Total Louisiana

              3,911,891  
          

 

 

  

Massachusetts - 3.0%

           

Massachusetts State Clean Water Trust, Unrefunded Balance, MWRA Project, Subordinated, Series A

      5.750 %      8/1/29        355,000        356,537  

Massachusetts State Department of Transportation, Metropolitan Highway System Revenue, Series A, Refunding

      5.000 %      1/1/34        1,000,000        1,271,820  

Massachusetts State DFA Revenue:

           

International Charter School

      5.000 %      4/15/40        1,875,000        2,043,225  

UMass Boston Student Housing Project

      5.000 %      10/1/48        200,000        192,888  

Wellforce Issue, Series A, Refunding

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

Massachusetts State Port Authority Revenue,

           

Series A, Refunding

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

 

 

  

Total Massachusetts

              4,777,345  
          

 

 

  

Michigan - 2.8%

           

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

      5.000 %      7/1/43        300,000        336,210  

Detroit, MI, Water & Sewage Department, Disposal System Revenue, Senior Lien, Series A, Refunding

      5.250 %      7/1/39        405,000        442,507 (f)  

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

           

Senior Lien, Series A

      5.000 %      7/1/46        1,300,000        1,530,633  

Senior Lien, Series C, Refunding

      5.000 %      7/1/35        150,000        180,387  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal Partners Fund Inc. 2020 Quarterly Report    

  

 

 

7

WESTERN ASSET MUNICIPAL PARTNERS FUND INC.

 

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

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Michigan - (continued)

           

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

      6.750 %      7/1/44      $ 350,000      $ 358,827 (d) 

Michigan State Finance Authority Revenue:

           

Facilities Program, Series 1-A, Refunding

      5.250 %      10/15/47        250,000        283,560  

Local Government Loan Program, Detroit, MI, Water & Sewer Department, Series C-1, Refunding

      5.000 %      7/1/44        380,000        413,090 (f) 

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

      5.000 %      7/1/33        370,000        421,297  

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

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

 

 

  

Total Michigan

              4,415,351  
          

 

 

  

Missouri - 0.3%

           

Missouri State HEFA Revenue, Lutheran Senior Service Projects, Series A

      5.000 %      2/1/42        150,000        162,660  

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

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

 

 

  

Total Missouri

              539,309  
          

 

 

  

New Jersey - 11.8%

           

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

      5.000 %      11/1/27        240,000        265,800  

New Jersey State EDA Revenue:

           

Cigarette Tax, Refunding

      5.000 %      6/15/29        500,000        511,805  

Private Activity-The Goethals Bridge Replacement Project

      5.375 %      1/1/43        1,000,000        1,100,380 (a) 

Provident Group - Rowan Properties LLC, Rowan University Housing Project

      5.000 %      1/1/48        500,000        454,985  

School Facilities Construction, Series I, Refunding, State Appropriations (SIFMA Municipal Swap Index Yield + 1.600%)

      1.690 %      3/1/28        2,500,000        2,438,150 (c) 

New Jersey State EDA, Special Facility Revenue:

           

Continental Airlines Inc. Project

      5.250 %      9/15/29        2,000,000        2,046,920 (a) 

Port Newark Container Terminal LLC Project, Refunding

      5.000 %      10/1/37        175,000        193,412 (a) 

New Jersey State EFA Revenue, Stevens Institute of Technology, Refunding

      5.000 %      7/1/42        3,000,000        3,467,400  

 

See Notes to Schedule of Investments.

 

 

 

8

  

    Western Asset Municipal Partners Fund Inc. 2020 Quarterly Report

  

WESTERN ASSET MUNICIPAL PARTNERS FUND INC.

 

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

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

New Jersey - (continued)

           

New Jersey State Health Care Facilities

           

Financing Authority Revenue:

           

Hackensack Meridian Health, Series A, Refunding

      5.000 %      7/1/38      $ 100,000      $ 120,392  

RWJ Barnabas Health Obligation Group, Series A, Refunding

      5.000 %      7/1/43        300,000        346,698  

New Jersey State Transportation Trust Fund Authority Revenue:

           

Transportation Program, Series AA

      5.000 %      6/15/38        6,000,000        6,268,080  

Transportation System, Series A, Refunding

      5.000 %      12/15/27        200,000        240,616  

Transportation System, Series A, Refunding

      5.000 %      12/15/28        1,050,000        1,279,477  

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

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

 

 

  

Total New Jersey

              18,971,079  
          

 

 

  

New York - 15.1%

           

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

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

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

      5.000 %      5/15/30        500,000        579,665 (b)(c) 

Nassau County, NY, Industrial Development Agency, Continuing Care Retirement Community Revenue, Amsterdam at Harborside, Series C

      2.000 %      1/1/49        74,690        7,469  

New York State Dormitory Authority, School

           

Districts Revenue Financing Program, Series A, AGM

      5.000 %      10/1/35        1,000,000        1,248,860  

New York State Dormitory Authority Revenue, New School,
Series A, Refunding

      5.000 %      7/1/35        2,000,000        2,236,040  

New York State Dormitory Authority, Sales Tax Revenue, Group 4, Series E, Refunding

      5.000 %      3/15/44        850,000        1,048,611  

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

      5.000 %      3/15/46        1,000,000        1,224,650  

New York State Liberty Development Corp., Liberty Revenue:

           

3 World Trade Center Project, Class 1, Refunding

      5.000 %      11/15/44        490,000        520,042 (d)  

4 World Trade Center Project, Refunding

      5.750 %      11/15/51        2,000,000        2,109,980  

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

      4.000 %      1/1/50        1,000,000        1,141,640  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal Partners Fund Inc. 2020 Quarterly Report    

  

 

 

9

WESTERN ASSET MUNICIPAL PARTNERS FUND INC.

 

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

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

New York - (continued)

           

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      $ 500,000      $ 553,455 (a)  

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

      5.000 %      1/1/32        650,000        712,614 (a)  

LaGuardia Airport Terminal B Redevelopment Project, Series A

      5.000 %      7/1/41        2,550,000        2,751,399 (a)  

LaGuardia Airport Terminal B Redevelopment Project, Series A

      5.000 %      7/1/46        100,000        107,236 (a)  

Port Authority of New York & New Jersey Revenue:

           

Consolidated Series 166, Refunding

      5.000 %      1/15/41        4,750,000        4,811,275  

Consolidated Series 221

      4.000 %      7/15/50        1,000,000        1,115,710 (a)  

Triborough Bridge & Tunnel Authority, NY, Revenue:

           

General-MTA Bridges & Tunnels, Series A

      5.000 %      11/15/43        250,000        304,953  

General-MTA Bridges & Tunnels, Series A

      5.000 %      11/15/49        300,000        379,743  

General-MTA Bridges & Tunnels, Series A

      4.000 %      11/15/54        750,000        867,382  

General-MTA Bridges & Tunnels, Series A

      5.000 %      11/15/54        1,500,000        1,889,355  
          

 

 

  

Total New York

              24,188,009  
          

 

 

  

North Carolina - 4.4%

           

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

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

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

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

Charlotte-Mecklenburg Hospital Authority, NC, Healthcare System Revenue, Series A, Refunding

      5.000 %      1/15/31        5,000,000        5,263,200  

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

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

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

      5.000 %      7/1/47        750,000        844,275  
          

 

 

  

Total North Carolina

              7,128,137  
          

 

 

  

Ohio - 4.2%

           

Buckeye, OH, Tobacco Settlement Financing Authority Revenue:

           

Senior Bonds, Series A-2, Refunding

      4.000 %      6/1/48        350,000        387,173  

Senior Bonds, Series B-2, Refunding

      5.000 %      6/1/55        1,125,000        1,237,500  

 

See Notes to Schedule of Investments.

 

 

 

10

  

    Western Asset Municipal Partners Fund Inc. 2020 Quarterly Report

  

WESTERN ASSET MUNICIPAL PARTNERS FUND INC.

 

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

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Ohio - (continued)

           

Northeast, OH, Regional Sewer District, Waste Water Improvement Revenue

      5.000 %      11/15/43      $ 4,040,000      $ 4,556,595 (f) 

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

      2.500 %      10/1/29        450,000        476,496 (a)(b)(c) 
          

 

 

  

Total Ohio

              6,657,764  
          

 

 

  

Oklahoma - 0.0%††

           

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

      6.875 %      11/1/46        99,820        250 *(g)  
          

 

 

  

Oregon - 1.4%

           

Multnomah County, OR, School District No 7, Reynolds, GO, Deferred Interest, Series B, School Bond Guaranty

      0.000 %      6/15/31        1,000,000        733,540  

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

      5.000 %      6/1/46        600,000        689,718  

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

      5.000 %      7/1/26        250,000        303,300 (a)  

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

      5.000 %      11/15/46        475,000        490,295  
          

 

 

  

Total Oregon

              2,216,853  
          

 

 

  

Pennsylvania - 8.8%

           

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

      4.000 %      7/15/38        500,000        571,990  

Central Bradford Progress Authority, PA, Guthrie Healthcare Systems

      5.000 %      12/1/26        5,130,000        5,427,899 (f) 

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

      5.000 %      6/1/33        250,000        311,395  

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

      5.000 %      1/1/29        750,000        808,245  

East Hempfield Township, PA, IDA Revenue, Student Services Inc. Student Housing Project - Millersville University

      5.000 %      7/1/47        250,000        253,730  

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

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

Pennsylvania State Economic Development Financing Authority, Sewage Sludge Disposal Revenue, Philadelphia Biosolids Facility

      6.250 %      1/1/32        475,000        483,859  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal Partners Fund Inc. 2020 Quarterly Report    

  

 

 

11

WESTERN ASSET MUNICIPAL PARTNERS FUND INC.

 

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

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Pennsylvania - (continued)

           

Philadelphia, PA, Airport Revenue, Series A, Refunding

      5.000 %      6/15/35      $ 2,000,000      $ 2,264,040 (a) 

Philadelphia, PA, Authority for IDR:

           

City Service Agreement Revenue, Rebuild Project

      5.000 %      5/1/35        250,000        302,693  

City Service Agreement Revenue, Rebuild Project

      5.000 %      5/1/38        500,000        599,585  

Lease Revenue, Refunding

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

Philadelphia, PA, GO, Series B

      5.000 %      2/1/38        250,000        313,620  

School District Philadelphia, PA, GO, Series A, State Aid Withholding

      5.000 %      9/1/32        1,000,000        1,188,430  

State Public School Building Authority, PA, Lease Revenue:

           

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

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

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

      5.000 %      6/1/33        500,000        601,795  
          

 

 

  

Total Pennsylvania

              14,187,657  
          

 

 

  

Puerto Rico - 4.6%

           

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

      5.250 %      7/1/42        1,150,000        1,183,062  

Puerto Rico Electric Power Authority Revenue:

           

Series A

      5.000 %      7/1/42        400,000        276,000 *(g)  

Series A

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

Series XX

      5.250 %      7/1/40        890,000        615,213 *(g)  

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

           

CAB, Restructured, Series A-1

      0.000 %      7/1/27        280,000        237,885  

CAB, Restructured, Series A-1

      0.000 %      7/1/46        310,000        88,930  

CAB, Restructured, Series A-1

      0.000 %      7/1/51        2,600,000        537,472  

Restructured, Series A-1

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

Restructured, Series A-1

      5.000 %      7/1/58        1,360,000        1,452,072  

Restructured, Series A-2

      4.329 %      7/1/40        1,610,000        1,690,516  

Restructured, Series A-2A

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

 

 

  

Total Puerto Rico

              7,342,928  
          

 

 

  

South Carolina - 0.4%

           

South Carolina State Ports Authority Revenue, Series 2018

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

 

 

  

 

See Notes to Schedule of Investments.

 

 

 

12

  

    Western Asset Municipal Partners Fund Inc. 2020 Quarterly Report

  

WESTERN ASSET MUNICIPAL PARTNERS FUND INC.

 

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

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

South Dakota - 0.1%

           

South Dakota State HEFA Revenue, Regional Health

      5.000 %      9/1/40      $ 200,000      $ 238,378  
          

 

 

  

Tennessee - 2.6%

           

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

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

Tennessee State Energy Acquisition Corp., Natural Gas Revenue:

           

Series 2018

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

Series C

      5.000 %      2/1/21        2,025,000        2,062,098  
          

 

 

  

Total Tennessee

              4,192,773  
          

 

 

  

Texas - 12.8%

           

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

      5.000 %      12/1/47        250,000        299,865  

Arlington, TX, Special Tax Revenue, Senior Lien, Series A, AGM

      5.000 %      2/15/48        350,000        406,717  

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

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

Corpus Christi, TX, Utility System Revenue, Junior Lien, Series A

      5.000 %      7/15/31        2,905,000        3,495,325  

El Paso, TX, GO, Series B, Refunding

      5.000 %      8/15/31        1,000,000        1,324,490  

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        2,000,000        2,303,000  

First Tier, Series C, Refunding

      4.000 %      10/1/45        3,000,000        3,523,170  

Harris County, TX, MTA, Sales & Use Tax Revenue, Series A

      5.000 %      11/1/36        3,125,000        3,300,406 (f) 

Houston, TX, Airport Systems Revenue, Series B-1

      5.000 %      7/15/30        1,000,000        1,037,030 (a) 

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

           

Series 2017

      5.000 %      11/1/33        40,000        46,551 (a)  

Series 2017

      5.000 %      11/1/36        40,000        46,145 (a)  

New Hope, TX, Cultural Education Facilities Finance Corp., Student Housing Revenue, Collegiate Housing-Tarleton State University Project

      5.000 %      4/1/35        800,000        942,520 (f)  

North Texas Tollway Authority Revenue:

           

Series A, Refunding

      5.000 %      1/1/39        250,000        293,518  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal Partners Fund Inc. 2020 Quarterly Report    

  

 

 

13

WESTERN ASSET MUNICIPAL PARTNERS FUND INC.

 

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

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Texas - (continued)

           

Series B, Refunding

      5.000 %      1/1/40      $ 600,000      $ 649,740  

Series B, Refunding

      5.000 %      1/1/45        600,000        686,892  

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

      6.625 %      11/15/37        170,000        185,451  

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

      5.000 %      12/31/40        460,000        489,178 (a)  

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

      4.000 %      2/1/39        500,000        599,120  

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

           

Inspired Living at Lewisville Project, Series A-1

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

Subordinate, Inspired Living at Lewisville Project, Series B

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

 

 

  

Total Texas

              20,522,668  
          

 

 

  

U.S. Virgin Islands - 0.5%

           

Virgin Islands Public Finance Authority Revenue:

           

Matching Fund Loan, Senior Lien, Series A

      5.000 %      10/1/29        235,000        231,289  

Subordinated, Matching Fund Loan, Cruzan Project, Series A

      6.000 %      10/1/39        420,000        401,596  

Subordinated, Matching Fund Loan, Diageo Project, Series A

      6.625 %      10/1/29        200,000        200,082  
          

 

 

  

Total U.S. Virgin Islands

              832,967  
          

 

 

  

Utah - 0.4%

           

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

      5.000 %      4/15/42        250,000        287,590  

Utah State Infrastructure Agency Telecommunication Revenue, Series 2019

      4.000 %      10/15/42        300,000        310,122  
          

 

 

  

Total Utah

              597,712  
          

 

 

  

Virginia - 1.2%

           

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

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

Virginia State Port Authority, Port Facilities Revenue:

           

Series B, Refunding

      5.000 %      7/1/41        300,000        359,472 (a)  

 

See Notes to Schedule of Investments.

 

 

 

14

  

    Western Asset Municipal Partners Fund Inc. 2020 Quarterly Report

  

WESTERN ASSET MUNICIPAL PARTNERS FUND INC.

 

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

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Virginia - (continued)

           

Series B, Refunding

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

Virginia State Small Business Financing Authority Revenue, Bon Secours Mercy Health, Series A, Refunding

      4.000 %      12/1/49        550,000        625,388  
          

 

 

  

Total Virginia

              1,905,533  
          

 

 

  

Washington - 2.8%

           

Port of Seattle, WA, Intermediate Lien Revenue:

           

Series 2019

      4.000 %      4/1/44        250,000        269,418 (a)  

Series 2019

      5.000 %      4/1/44        500,000        595,230 (a)  

Series A, Refunding

      5.000 %      8/1/25        2,395,000        2,594,216  

Washington State Health Care Facilities Authority Revenue:

           

Commonspirit Health, Series B, Refunding

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

Seattle Cancer Care Alliance, Refunding

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

 

 

  

Total Washington

              4,437,265  
          

 

 

  

West Virginia - 0.3%

           

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

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

 

 

  

Wisconsin - 3.2%

           

Mount Pleasant, WI, Tax Increment Revenue, Series A

      5.000 %      4/1/48        500,000        604,400  

Public Finance Authority, WI, Airport Facilities Revenue, Transportation Infrastructure Properties LLC, Series B, Refunding

      5.000 %      7/1/42        4,000,000        4,135,240 (a)  

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

      7.000 %      12/1/50        400,000        347,732 (d)  
          

 

 

  

Total Wisconsin

              5,087,372  
          

 

 

  

TOTAL INVESTMENTS BEFORE SHORT-TERM
INVESTMENTS
(Cost - $222,639,108)

 

      242,486,947  
          

 

 

  
SHORT-TERM INVESTMENTS - 0.4%           
MUNICIPAL BONDS - 0.4%           

Arizona - 0.1%

           

Phoenix, AZ, IDA, Health Care Facilities Revenue, Mayo Clinic, Series B, SPA - Northern Trust Company

      0.010 %      11/15/52        100,000        100,000 (h)(i)  
          

 

 

  

Mississippi - 0.3%

           

Mississippi State Business Finance Corp., Gulf Opportunity Zone, IDR, Chevron USA Inc. Project, Series E

      0.030 %      12/1/30        500,000        500,000 (h)(i)  
          

 

 

  

TOTAL MUNICIPAL BONDS
(Cost - $600,000)

              600,000  
          

 

 

  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal Partners Fund Inc. 2020 Quarterly Report    

  

 

 

15

WESTERN ASSET MUNICIPAL PARTNERS FUND INC.

 

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

 

SECURITY

    RATE     SHARES      VALUE  
MONEY MARKET FUNDS - 0.0%††        

Dreyfus Government Cash Management, Institutional Shares
(Cost - $95,611)

      0.038 %      95,611      $ 95,611  
       

 

 

  

TOTAL SHORT-TERM INVESTMENTS
(Cost - $695,611)

           695,611  
       

 

 

  

TOTAL INVESTMENTS - 151.6%
(Cost - $223,334,719)

           243,182,558  

Auction Rate Cumulative Preferred Stock, at Liquidation Value - (11.4)%

           (18,350,000 ) 

Variable Rate Demand Preferred Stock, at Liquidation Value - (41.5)%

           (66,500,000 ) 

Other Assets in Excess of Liabilities - 1.3%

           2,061,610  
       

 

 

  

TOTAL NET ASSETS APPLICABLE TO COMMON
SHAREHOLDERS - 100.0%

         $ 160,394,168  
       

 

 

  

 

††

Represents less than 0.1%.

 

*

Non-income producing security.

 

(a)

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

 

(b)

Maturity date shown represents the mandatory tender date.

 

(c)

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

 

(d)

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

 

(e)

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

 

(f)

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

 

(g)

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

 

(h)

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

 

(i)

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

 

See Notes to Schedule of Investments.

 

 

 

16

  

    Western Asset Municipal Partners Fund Inc. 2020 Quarterly Report

  

WESTERN ASSET MUNICIPAL PARTNERS FUND INC.

 

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

 

Abbreviation(s) used in this schedule:

 

AGM    — Assured Guaranty Municipal Corporation — Insured Bonds
BAM    — Build America Mutual — Insured Bonds
BAN    — Bond Anticipation Notes
CAB    — Capital Appreciation Bonds
COP    — Certificates of Participation
CSCE    — Charter School Credit Enhancement
DFA    — Development Finance Agency
EDA    — Economic Development Authority
EFA    — Educational Facilities Authority
GO    — General Obligation
GTD    — Guaranteed
HDA    — Housing Development Authority
HEFA    — Health & Educational Facilities Authority
IDA    — Industrial Development Authority
IDR    — Industrial Development Revenue
MFA    — Municipal Finance Authority
MTA    — Metropolitan Transportation Authority
MWRA    — Massachusetts Water Resources 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
RDA    — Redevelopment Agency
SIFMA    — Securities Industry and Financial Markets Association
SPA    — Standby Bond Purchase Agreement — Insured Bonds
USD    — Unified School District

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

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal Partners Fund Inc. 2020 Quarterly Report    

  

 

 

17

Notes to Schedule of Investments (unaudited)

 

1. Organization and significant accounting policies

Western Asset Municipal Partners Fund Inc. (the “Fund”) was incorporated in Maryland on November 24, 1992 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 primary investment objective is to seek a high level of current income which is exempt from regular federal income taxes, consistent with the preservation of capital. As a secondary investment objective, the Fund intends to enhance portfolio value by purchasing tax-exempt securities that, in the opinion of the investment manager, may appreciate in value relative to other similar obligations in the marketplace. On April 1, 2020, the Board of Directors of the Fund approved amendments to the Fund’s bylaws. The amended and restated bylaws were subsequently filed on Form 8-K and are available on the Securities and Exchange Commission’s website at www.sec.gov.

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

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

The Board of Directors is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Legg Mason North Atlantic Fund Valuation Committee (the “Valuation Committee”). The Valuation Committee, pursuant to the policies adopted by the Board of Directors, is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Board of

 

 

 

18

    

Notes to Schedule of Investments (unaudited) (continued)

 

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.

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)

 

   

 

 

19

Notes to Schedule of Investments (unaudited) (continued)

 

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

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

 

ASSETS

  

DESCRIPTION

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

Municipal Bonds†

      —        $ 242,486,947        —        $ 242,486,947  
  

 

 

     

 

 

     

 

 

     

 

 

  

Short-Term Investments†:

            

Municipal Bonds

      —          600,000        —          600,000  

Money Market Funds

    $ 95,611        —          —          95,611  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Short-Term Investments

      95,611        600,000        —          695,611  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 95,611      $ 243,086,947        —        $ 243,182,558  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

†

See Schedule of Investments for additional detailed categorizations.

 

 

 

20