The following constitutes Amendment No. 1 ("Amendment No. 2") to the Schedule 13D filed by the undersigned. This Amendment amends the original Schedule 13D as specifically set forth.
Item 3. Source and Amount of Funds or Other Considerations. KIM, an independent investment advisor, has accumulated 1,628,871 shares of the Western Asset Inflation Management Fund Inc. on behalf of accounts that are managed by KIM (the Accounts) under limited powers of attorney, which represents 23.07% of the outstanding shares. All funds that have been utilized in making such purchases are from such Accounts. Item 4. Purpose of Transaction. KIM has purchased Shares for the Accounts for investment purposes. However, KIM reserves the right to contact management with regard to concerns that they have with respect to the Fund. This may include letters to the Board and/or other communications with Fund management. Being an independent registered investment advisor, with a specialty focus in closed end funds, the profile of Western Asset Inflation Management Fund Inc. fit the investment guidelines for various Accounts. Shares have been acquired since April 20, 2005. Item 5. Interest in Securities of the Issuer. (a) As of the date of this Report, KIM represents beneficial ownership of 1,628,871 shares or 23.07% of the outstanding shares. George W. Karpus presently owns 837 shares. Karpus Investment Management Defined Benefit Plan presently owns 5,000 shares. Karpus Investment Management Profit Sharing Plan presently owns 6,900 shares. Dana R. Consler presently owns 300 shares. Kathleen F. Crane presently owns 25 shares. None of the other principals of KIM presently own shares of Western Asset Inflation Management Fund Inc. (b) KIM has the sole power to dispose of and to vote all of such Shares under limited powers of attorney. (c) Open market transactions for the last 60 days for the Accounts. There have been no dispositions and no acquisitions, other than by such open market transactions: