Filed pursuant to Rule 424(b)(3)
Registration No. 333‑253996
WESTERN ASSET MORTGAGE OPPORTUNITY FUND INC.
SUPPLEMENT DATED JULY 1, 2024 TO
THE PROSPECTUS DATED MAY 4, 2021
 
 
The following replaces the Financial Highlights in the prospectus:
For a share of capital stock outstanding throughout each year ended December 31:
 
     20231     20221     20211     20201     20191  
Net asset value, beginning of year
    $ 12.12     $ 15.40     $ 14.96     $ 19.48     $ 19.28  
Income (loss) from operations:
           
Net investment income
      1.07       0.95       0.89       1.23       1.51  
Net realized and unrealized gain (loss)
      0.14       (3.00 )      0.90       (4.20 )      0.65  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total income (loss) from operations
      1.21       (2.05 )      1.79       (2.97 )      2.16  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Less distributions from:
           
Net investment income
      (1.28 )      (1.23 )      (1.16 )      (1.13 )      (1.45 ) 
Return of capital
      —        (0.01 )      (0.19 )      (0.42 )      (0.51 ) 
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total distributions
      (1.28 )      (1.24 )      (1.35 )      (1.55 )      (1.96 ) 
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Anti-dilutive impact of repurchase plan
      0.00 2,3      0.01 3      —        —        —   
Net asset value, end of year
    $ 12.05     $ 12.12     $ 15.40     $ 14.96     $ 19.48  
Market price, end of year
    $ 11.17     $ 10.77     $ 15.21     $ 14.18     $ 20.30  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total return, based on NAV4,5
      10.51 %      (13.69 )%      12.38 %      (14.67 )%      11.65 % 
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total return, based on Market Price6
      16.68 %      (21.64 )%      17.24 %      (22.13 )%      9.71 % 
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net assets, end of year (millions)
    $ 137     $ 138     $ 177     $ 165     $ 205  
Ratios to average net assets:
           
Gross expenses
      7.28 %      3.80 %      2.38 %      2.82 %      3.56 % 
Net expenses7
      7.14 8      3.72 8      2.10 8      2.53 8      3.56  
Net investment income
      8.87       6.96       5.82       8.18       7.73  
Portfolio turnover rate
      24 %      22 %9      14 %      11 %      17 % 
Loan Outstanding, End of Year (000s)
      —        —        —      $ 45,000     $ 98,000  
Asset Coverage Ratio for Loan Outstanding10
      —        —        —        467 %      309 % 
Asset Coverage, per $1,000 Principal Amount of Loan Outstanding10
      —        —        —      $ 4,667     $ 3,089  
Weighted Average Loan (000s)
      —        —      $ 45,000     $ 62,369     $ 98,072  
Weighted Average Interest Rate on Loan
      —        —        1.84 %      2.14 %      3.46 % 
 
1 
Per share amounts have been calculated using the average shares method.
2 
Amount represents less than $0.005 or greater than $(0.005) per share.
3 
The repurchase plan was completed at an average repurchase price of $10.21 for 13,982 shares and $142,726 for the year ended December 31, 2023 and $11.16 for 67,728 shares and $755,559 for the year ended December 31, 2022.
4 
Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results.
5 
The total return calculation assumes that distributions are reinvested at NAV. Past performance is no guarantee of future results.
6 
The total return calculation assumes that distributions are reinvested in accordance with the Fund’s dividend reinvestment plan. Past performance is no guarantee of future results.
7 
The manager has agreed to waive the Fund’s management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund.
8 
Reflects fee waivers and/or expense reimbursements.
9 
Excluding mortgage dollar roll transactions. If mortgage dollar roll transactions had been included, the portfolio turnover rate would have been 24% for the year ended December 31, 2022.
10 
Represents value of net assets plus the loan outstanding at the end of the period divided by the loan outstanding at the end of the period.
     20181     20171     20161     20151     20141  
Net asset value, beginning of year
    $ 21.27     $ 20.70     $ 22.76     $ 24.75     $ 23.78  
Income (loss) from operations:
           
Net investment income
      1.65       1.57       1.47       2.13       1.87  
Net realized and unrealized gain (loss)
      0.22       2.28       (0.53 )      (0.80 )      2.19  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total income from operations
      1.87       3.85       0.94       1.33       4.06  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Less distributions from:
           
Net investment income
      (3.03 )      (2.69 )      (2.95 )      (2.33 )      (1.75 ) 
Net realized gains
      (0.83 )      (0.59 )      (0.05 )      (0.99 )      (1.34 ) 
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total distributions
      (3.86 )      (3.28 )      (3.00 )      (3.32 )      (3.09 ) 
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net asset value, end of year
    $ 19.28     $ 21.27     $ 20.70     $ 22.76     $ 24.75  
Market price, end of year
    $ 20.39     $ 24.67     $ 22.79     $ 23.55     $ 23.84  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total return, based on NAV2,3
      9.26 %      19.70 %      4.47 %      5.44 %      17.55 % 
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total return, based on Market Price4
      (1.16 )%      24.20 %      10.80 %      13.56 %      16.76 % 
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net assets, end of year (millions)
    $ 202     $ 222     $ 216     $ 237     $ 258  
Ratios to average net assets:
           
Gross expenses
      3.15 %      2.68 %      2.97 %      2.39 %      2.36 % 
Net expenses
      3.15       2.68       2.97       2.39       2.36  
Net investment income
      7.78       7.29       6.78       8.65       7.39  
Portfolio turnover rate
      33 %      35 %      23 %5      24 %      35 % 
Supplemental data:
           
Loan Outstanding, End of Year (000s)
    $ 99,250     $ 101,750     $ 101,750     $ 80,500     $ 116,700  
Asset Coverage Ratio for Loan Outstanding6
      303 %      319 %      312 %      395 %      321 % 
Asset Coverage, per $1,000 Principal Amount of Loan Outstanding6
    $ 3,035     $ 3,185     $ 3,124     $ 3,946     $ 3,208 7 
Weighted Average Loan (000s)
    $ 101,743     $ 101,750     $ 90,984     $ 99,544     $ 116,700  
Weighted Average Interest Rate on Loan
      3.06 %      2.06 %      1.50 %      1.06 %      1.02 % 
 
1 
Per share amounts have been calculated using the average shares method.
2 
Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results.
3 
The total return calculation assumes that distributions are reinvested at NAV. Past performance is no guarantee of future results.
4 
The total return calculation assumes that distributions are reinvested in accordance with the Fund’s dividend reinvestment plan. Past performance is no guarantee of future results.
5 
Excluding mortgage dollar roll transactions. If mortgage dollar roll transactions had been included, the portfolio turnover rate would have been 24%.
6 
Represents value of net assets plus the loan outstanding at the end of the period divided by the loan outstanding at the end of the period.
7 
Added to conform to current period presentation.