NPORT-EX 2 LMF5200LM022823.htm HTML

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited)    January 31, 2023

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  
MUNICIPAL BONDS - 95.3%           

Alabama - 5.4%

           

Alabama State Corrections Institution Finance Authority Revenue, Series A

      5.250 %      7/1/52      $ 500,000      $ 553,940  

Jefferson County, AL, Sewer Revenue:

           

Convertible CAB, Subordinated Lien, Warrants, Step bond, Series F, Refunding (0.000% to 10/1/23 then 7.900%)

      0.000 %      10/1/50        3,020,000        3,097,009  

Senior Lien, Warrants, Series A, Refunding, AGM

      5.500 %      10/1/53        400,000        412,278  

Subordinated Lien, Warrants, Series D, Refunding

      6.000 %      10/1/42        1,120,000        1,196,662  

Subordinated Lien, Warrants, Series D, Refunding

      6.500 %      10/1/53        3,000,000        3,207,682  
          

 

 

  

Total Alabama

              8,467,571  
          

 

 

  

Alaska - 0.9%

           

Anchorage, AK, Port Revenue, Series A

      5.000 %      12/1/50        250,000        257,689 (a)  

Northern Tobacco Securitization Corp., AK, Tobacco Settlement Revenue:

           

Asset Backed Senior Bonds, Class 1, Series A

      4.000 %      6/1/36        400,000        400,591  

Asset Backed Senior Bonds, Class 1, Series A, Refunding

      4.000 %      6/1/50        250,000        228,239  

Asset Backed Senior Bonds, Class 2, Series B-1

      4.000 %      6/1/50        500,000        497,507  
          

 

 

  

Total Alaska

              1,384,026  
          

 

 

  

Arizona - 3.7%

           

Arizona, AZ, IDA Revenue, Doral Academy Of Northern Nevada Project, Series A, Refunding

      4.000 %      7/15/51        500,000        390,357 (b)  

La Paz County, AZ, IDA Revenue, Charter School Solutions, Harmony Public School Project, Series A

      5.000 %      2/15/36        1,000,000        1,022,068 (b) 

Maricopa County, AZ, IDA Revenue, Legacy Traditional Schools Project, Series 2019, Refunding

      5.000 %      7/1/49        500,000        473,349 (b)  

Navajo Nation, AZ, Revenue, Series A, Refunding

      5.500 %      12/1/30        190,000        199,052 (b)  

Phoenix, AZ, IDA Revenue:

           

Basis School Inc., Refunding

      5.000 %      7/1/35        1,000,000        1,005,210 (b) 

Great Hearts Academies, Refunding

      5.000 %      7/1/41        1,200,000        1,217,165  

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

      5.000 %      12/1/37        1,500,000        1,591,134  
          

 

 

  

Total Arizona

              5,898,335  
          

 

 

  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal High Income Fund Inc. 2023 Quarterly Report    

  

 

 

1

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2023

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

California - 10.7%

           

Alameda, CA, Corridor Transportation Authority Revenue:

           

Convertible CAB, Series C, Refunding, AGM

      5.000 %      10/1/52      $ 600,000      $ 662,801  

Second Subordinated Lien, Series B, Refunding

      5.000 %      10/1/34        500,000        524,070  

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

      5.000 %      5/1/46        2,000,000        2,066,985 (c) 

California State Community Choice Financing Authority Revenue, Clean Energy Project, Green Bonds, Series B-1

      5.000 %      8/1/29        500,000        535,552 (d)(e) 

California State Community Housing Agency, Essential Housing Revenue, Stoneridge Apartments, Series A

      4.000 %      2/1/56        500,000        393,749 (b)  

California State MFA Revenue, Senior Lien, LINXS APM Project,
Series A

      5.000 %      12/31/43        700,000        715,149 (a)  

California State PCFA Water Furnishing Revenue, San Diego County Water Authority Desalination Project, Refunding

      5.000 %      7/1/39        700,000        717,970 (b)  

California State Public Finance Authority, Senior Living Revenue:

           

Enso Village Project, Green Bond, Series A

      5.000 %      11/15/36        250,000        242,709  

Enso Village Project, Green Bond, Series B-3, Refunding

      2.125 %      11/15/27        250,000        237,088 (b)  

California Statewide CDA Revenue:

           

Provident Group-Pomona Properties LLC, Series A

      5.600 %      1/15/36        500,000        500,101 (b)  

Provident Group-Pomona Properties LLC, Series A

      5.750 %      1/15/45        360,000        360,065 (b)  

California Statewide CDA, Community Improvement Authority Revenue, Renaissance at City Center, Series A

      5.000 %      7/1/51        175,000        172,733  

Inland Valley, CA, Development Agency, Successor Agency Tax Allocation Revenue, Series A, Refunding

      5.000 %      9/1/44        500,000        507,497  

Mountain House Public Financing Authority, CA, Utility Systems Revenue, Green Bond, Series A, BAM

      4.000 %      12/1/45        750,000        753,080  

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

           

Series B

      6.500 %      11/1/39        1,000,000        1,256,752  

Series C

      7.000 %      11/1/34        2,000,000        2,584,957  

 

See Notes to Schedule of Investments.

 

 

 

2

  

    Western Asset Municipal High Income Fund Inc. 2023 Quarterly Report

  

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2023

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

California - continued

           

Series C

      6.500 %      11/1/39      $ 2,000,000      $ 2,513,505  

Redding, CA, Redevelopment Agency, Tax Allocation, Shastec Redevelopment Project

      5.000 %      9/1/29        600,000        601,425  

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

      5.250 %      9/1/52        300,000        330,625  

San Francisco, CA, City & County Airport Commission, International Airport Revenue, Second Series A, Refunding

      5.000 %      5/1/47        1,000,000        1,032,098 (a) 

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        200,000        209,776  
          

 

 

  

Total California

              16,918,687  
          

 

 

  

Colorado - 1.8%

           

Aristation Metropolitan District, CO, GO, Convertible Unlimited & Special Revenue, Refunding and Improvements

      5.000 %      12/1/38        500,000        492,957  

Colorado State Health Facilities Authority Revenue, Commonspirit Health Initiatives, Series B-2

      5.000 %      8/1/26        250,000        264,067 (d)(e) 

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

      5.000 %      12/31/51        150,000        148,634  

North Range, CO, Metropolitan District #2, GO, Series A, Refunding

      5.625 %      12/1/37        500,000        508,115  

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

      6.125 %      11/15/23        955,000        974,981  

Village Metropolitan District, CO, Limited & Special Revenue, Series 2020, Refunding and Improvements

      5.000 %      12/1/40        500,000        488,717  
          

 

 

  

Total Colorado

              2,877,471  
          

 

 

  

Connecticut - 1.1%

           

Connecticut State Special Tax Revenue:

           

Transportation Infrastructure, Series A

      5.000 %      1/1/37        500,000        546,180  

Transportation Infrastructure, Series A

      5.000 %      5/1/38        550,000        618,616  

Connecticut State, GO, Series A

      4.000 %      4/15/37        600,000        620,862  
          

 

 

  

Total Connecticut

              1,785,658  
          

 

 

  

Florida - 5.5%

           

Broward County, FL, Port Facilities Revenue:

           

Senior Bonds, Series B

      4.000 %      9/1/44        1,250,000        1,204,002 (a) 

Senior Bonds, Series B

      4.000 %      9/1/49        500,000        469,515 (a)  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal High Income Fund Inc. 2023 Quarterly Report    

  

 

 

3

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2023

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Florida - continued

           

Series 2022

      5.500 %      9/1/52      $ 1,000,000      $ 1,092,462 (a) 

Florida State Development Finance Corp., Educational Facilities Revenue:

           

Mater Academy Projects, Series A

      5.000 %      6/15/40        650,000        656,644  

Renaissance Charter School Inc. Projects, Series A

      6.000 %      6/15/35        250,000        254,275 (b)  

Renaissance Charter School Inc. Projects, Series A

      6.125 %      6/15/46        215,000        216,981 (b)  

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

      5.000 %      10/1/28        500,000        521,651  

Fort Pierce, FL, Utilities Authority Revenue, Series A, Refunding, AGM

      4.000 %      10/1/52        150,000        147,932  

Miami-Dade County, FL, Aviation Revenue, Series A, Refunding

      5.000 %      10/1/49        650,000        674,816 (a)  

Miami-Dade County, FL, Seaport Revenue, Series A, Refunding

      5.250 %      10/1/52        750,000        802,065 (a)(f) 

Orange County, FL, Health Facilities Authority Revenue, Orlando Health Inc., Series A

      5.000 %      10/1/53        250,000        268,981 (f)  

Palm Beach County, FL, Health Facilities Authority Hospital Revenue:

           

Jupiter Medical Center Project, Series A

      5.000 %      11/1/39        350,000        368,800  

Jupiter Medical Center Project, Series A

      5.000 %      11/1/47        1,515,000        1,570,995  

Palm Beach County, FL, Health Facilities Authority Revenue:

           

Toby & Leon Cooperman Sinai Residences of Boca Raton Expansion, Refunding

      4.000 %      6/1/41        100,000        82,809  

Toby & Leon Cooperman Sinai Residences of Boca Raton Expansion, Series A

      5.000 %      6/1/55        350,000        320,708  

Reunion, FL, East Community Development District, Special Assessment Bond, Series A-2

      7.375 %      5/1/33        285,000        3 *(g)  
          

 

 

  

Total Florida

              8,652,639  
          

 

 

  

Georgia - 0.8%

           

Georgia State Municipal Electric Authority Revenue:

           

Plant Vogtle Units 3 & 4 Project M, Series A

      5.250 %      7/1/64        350,000        368,809  

Plant Vogtle Units 3 & 4 Project P, Series A

      5.500 %      7/1/64        250,000        262,472  

Plant Vogtle Units 3 & 4 Project, Series A

      5.000 %      1/1/56        250,000        254,088  

 

See Notes to Schedule of Investments.

 

 

 

4

  

    Western Asset Municipal High Income Fund Inc. 2023 Quarterly Report

  

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2023

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Georgia - continued

           

Project One Subordinated, Series A

      5.000 %      1/1/45      $ 250,000      $ 262,330  

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

      5.000 %      5/15/43        150,000        152,630  
          

 

 

  

Total Georgia

              1,300,329  
          

 

 

  

Illinois - 15.5%

           

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

      5.000 %      4/1/42        1,000,000        1,012,996  

Chicago, IL, Board of Education, GO:

           

Dedicated, Series H

      5.000 %      12/1/46        1,000,000        1,003,761  

Series A

      5.000 %      12/1/39        1,250,000        1,280,493  

Series C, Refunding, AGM

      5.000 %      12/1/32        250,000        268,531  

Chicago, IL, GO:

           

Chicago Works, Series A

      5.500 %      1/1/39        550,000        600,594  

Series A

      5.000 %      1/1/44        500,000        502,388  

Series A, Refunding

      5.000 %      1/1/28        500,000        528,195  

Series A, Refunding

      6.000 %      1/1/38        300,000        319,848  

Series C, Refunding

      5.000 %      1/1/25        500,000        512,111  

Chicago, IL, O’Hare International Airport Revenue:

           

General Senior Lien, Series C, Refunding

      5.000 %      1/1/44        500,000        534,446 (a)  

Senior Lien, Series G

      5.000 %      1/1/42        500,000        516,940 (a)  

Series A, Refunding

      5.000 %      1/1/31        1,500,000        1,552,427 (a) 

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

           

Second Lien

      5.000 %      12/1/51        1,000,000        1,028,216  

Second Lien, Series A, Refunding

      5.000 %      12/1/45        500,000        527,497  

Chicago, IL, Wastewater Transmission Revenue:

           

Second Lien, Series A

      5.000 %      1/1/47        300,000        304,500  

Second Lien, Series B, Refunding

      5.000 %      1/1/38        500,000        513,438  

Chicago, IL, Waterworks Revenue:

           

Second Lien, Series 2017, Refunding

      5.000 %      11/1/29        500,000        534,897  

Second Lien, Series 2017-2, Refunding, AGM

      5.000 %      11/1/32        1,260,000        1,373,246  

Illinois State Finance Authority, Revenue, Franciscan Communities Inc.:

           

Series A, Refunding

      5.250 %      5/15/47        130,000        130,982 (c)  

Series A, Refunding

      5.250 %      5/15/47        870,000        847,791  

Illinois State Sports Facilities Authority Revenue, State Tax Supported, Series 2019, Refunding, BAM

      5.000 %      6/15/30        250,000        271,367  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal High Income Fund Inc. 2023 Quarterly Report    

  

 

 

5

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2023

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Illinois - continued

           

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

      5.000 %      4/1/28      $ 100,000      $ 111,864  

Illinois State, GO:

           

Series 2016, Refunding

      5.000 %      2/1/29        300,000        318,367  

Series A

      5.000 %      3/1/37        1,250,000        1,328,590  

Series A

      5.000 %      3/1/46        500,000        514,372  

Series A, Refunding

      5.000 %      10/1/29        1,100,000        1,188,982  

Series A, Refunding

      5.000 %      10/1/30        550,000        591,973  

Series B, Refunding

      5.000 %      9/1/27        400,000        430,573  

Series D

      5.000 %      11/1/27        1,150,000        1,239,839  

Metropolitan Pier & Exposition Authority, IL, Revenue:

           

McCormick Place Expansion Project, Series A

      5.000 %      6/15/57        350,000        352,080  

McCormick Place Expansion Project, Series A, Refunding

      4.000 %      12/15/42        750,000        703,382  

McCormick Place Expansion Project, Series A, Refunding

      4.000 %      12/15/47        1,000,000        906,510  

McCormick Place Expansion Project, Series A, Refunding

      5.000 %      6/15/50        250,000        254,043  

McCormick Place Expansion Project, Series B, Refunding

      5.000 %      6/15/42        1,250,000        1,290,615  

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

      6.000 %      7/1/29        930,000        1,080,611  
          

 

 

  

Total Illinois

              24,476,465  
          

 

 

  

Indiana - 2.1%

           

Indiana State Finance Authority Revenue:

           

BHI Senior Living Inc., Series A, Refunding

      4.000 %      11/15/41        500,000        423,231  

Marion General Hospital, Series A

      4.000 %      7/1/45        200,000        199,443  

Midwestern Disaster Relief, Ohio Valley Electric Corp. Project, Series A

      4.250 %      11/1/30        200,000        198,910  

Private Activity Ohio River Bridges East End Crossing Project, Series A

      5.000 %      7/1/48        2,000,000        2,017,847 (a)(c) 

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

      7.000 %      1/1/44        500,000        514,398 (a)  
          

 

 

  

Total Indiana

              3,353,829  
          

 

 

  

Iowa - 1.0%

           

Iowa State Finance Authority Revenue:

           

Midwestern Disaster Area, Iowa Fertilizer Co. Project, Refunding

      5.000 %      12/1/42        750,000        766,909 (d)(e) 

 

See Notes to Schedule of Investments.

 

 

 

6

  

    Western Asset Municipal High Income Fund Inc. 2023 Quarterly Report

  

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2023

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Iowa - continued

           

Midwestern Disaster Area, Iowa Fertilizer Co. Project, Refunding

      5.000 %      12/1/50      $ 700,000      $ 704,819  

Iowa State Tobacco Settlement Authority Revenue, Asset Backed Senior Bonds, Class 1, Series A-2, Refunding

      4.000 %      6/1/49        150,000        136,977  
          

 

 

  

Total Iowa

              1,608,705  
          

 

 

  

Kentucky - 1.8%

           

Kentucky State PEA, Gas Supply Revenue:

           

Series A

      4.000 %      6/1/26        1,500,000        1,503,269 (d)(e) 

Series C

      4.000 %      6/1/25        1,400,000        1,404,169 (d)(e) 
          

 

 

  

Total Kentucky

              2,907,438  
          

 

 

  

Louisiana - 1.2%

           

Louisiana State PFA, Lease Revenue:

           

Provident Group, Flagship Properties

      5.000 %      7/1/42        700,000        726,488  

Provident Group, Flagship Properties, Series A

      4.000 %      7/1/49        500,000        470,177  

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

           

Marathon Oil Corp. Project, Series A-3, Refunding

      2.200 %      7/1/26        400,000        377,230 (d)(e) 

Marathon Oil Corp. Project, Series B-2, Refunding

      2.375 %      7/1/26        250,000        236,769 (d)(e) 
          

 

 

  

Total Louisiana

              1,810,664  
          

 

 

  

Maryland - 0.7%

           

Maryland State EDC Revenue:

           

Morgan State University Project

      4.250 %      7/1/50        350,000        332,581  

Seagirt Marine Terminal Project, Series A

      5.000 %      6/1/44        400,000        416,921 (a)  

Maryland State Health & Higher EFA Revenue, Frederick Health System

      4.000 %      7/1/40        300,000        292,748  
          

 

 

  

Total Maryland

              1,042,250  
          

 

 

  

Massachusetts - 0.9%

           

Massachusetts State DFA Revenue:

           

Northeastern University Issue, Refunding

      5.000 %      10/1/44        500,000        569,812  

Wellforce Issue, Series A, Refunding

      5.000 %      7/1/36        500,000        513,074  

Wellforce Issue, Series A, Refunding

      5.000 %      7/1/44        250,000        249,981  
          

 

 

  

Total Massachusetts

              1,332,867  
          

 

 

  

Michigan - 0.6%

           

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

      5.000 %      7/1/43        250,000        251,906  

Michigan State Finance Authority Revenue:

           

Henry Ford Health System, Series A

      4.000 %      11/15/50        400,000        381,369  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal High Income Fund Inc. 2023 Quarterly Report    

  

 

 

7

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2023

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Michigan - continued

           

Tobacco Settlement Asset Backed Senior Bonds, Series B-1, Refunding

      5.000 %      6/1/49      $ 80,000      $ 82,451  

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

      5.000 %      12/31/43        250,000        255,460 (a)  
          

 

 

  

Total Michigan

              971,186  
          

 

 

  

Missouri - 1.7%

           

Missouri State HEFA Revenue, Senior Living Facilities, Lutheran Senior Services, Refunding

      5.000 %      2/1/44        750,000        727,242  

St. Louis County, MO, IDA, Senior Living Facilities Revenue, Friendship Village of Sunset Hills, Series A

      5.875 %      9/1/43        2,000,000        2,007,862  
          

 

 

  

Total Missouri

              2,735,104  
          

 

 

  

Nebraska - 0.3%

           

Omaha Public Power District, NE, Electric System Revenue, Series B, Refunding

      4.000 %      2/1/46        500,000        496,050  
          

 

 

  

Nevada - 0.5%

           

State of Nevada Department of Business & Industry Revenue:

           

Charter School Lease Revenue, Somerset Academy, Series A

      5.000 %      12/15/35        300,000        302,774 (b)  

Charter School Lease Revenue, Somerset Academy, Series A

      5.125 %      12/15/45        500,000        496,971 (b)  
          

 

 

  

Total Nevada

              799,745  
          

 

 

  

New Jersey - 7.9%

           

Gloucester County, NJ, PCFA Revenue, Keystone Urban Renewal, Logan Generating, Series A, Refunding

      5.000 %      12/1/24        185,000        188,550 (a)(h) 

New Jersey State EDA Revenue:

           

Private Activity-The Goethals Bridge Replacement Project

      5.375 %      1/1/43        1,500,000        1,517,586 (a) 

Special Facility, Port Newark Container Terminal LLC Project, Refunding

      5.000 %      10/1/37        125,000        127,280 (a)  

Transit Transportation Project, Series A

      5.000 %      11/1/32        1,500,000        1,691,144  

New Jersey State Health Care Facilities Financing Authority Revenue, Hackensack Meridian Health, Series A, Refunding

      5.000 %      7/1/38        100,000        107,070  

New Jersey State Higher Education, Student Assistance Authority Revenue, Subordinated, Series B-1

      5.000 %      12/1/44        640,000        642,874 (a)  

 

See Notes to Schedule of Investments.

 

 

 

8

  

    Western Asset Municipal High Income Fund Inc. 2023 Quarterly Report

  

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2023

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

New Jersey - continued

           

New Jersey State Transportation Trust Fund Authority Revenue:

           

Transportation Program, Series AA

      5.250 %      6/15/32      $ 4,720,000      $ 4,973,084  

Transportation Program, Series BB

      5.000 %      6/15/44        1,000,000        1,043,816  

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

      5.000 %      6/1/28        1,250,000        1,422,751  

Salem County, NJ, PCFA Revenue, Chambers Project, Series A, Refunding

      5.000 %      12/1/23        530,000        537,480 (a)(h)  

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

      5.250 %      6/1/46        150,000        156,787  
          

 

 

  

Total New Jersey

              12,408,422  
          

 

 

  

New Mexico - 0.1%

           

Santa Fe, NM, Retirement Facilities Revenue, EL Castillo Retirement Residences Project, Series A

      5.000 %      5/15/49        250,000        212,453  
          

 

 

  

New York - 6.3%

           

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

      5.000 %      10/1/34        735,000        812,953  

Build NYC Resource Corp., NY, Revenue, East Harlem Scholars Academy Charter School Project

      5.750 %      6/1/62        300,000        307,538 (b)  

MTA, NY, Transportation Revenue:

           

Green Bonds, Series E, Refunding

      5.000 %      11/15/30        250,000        272,483  

Green Bonds, Series E, Refunding

      4.000 %      11/15/45        250,000        228,559  

Series A-2

      5.000 %      5/15/30        400,000        437,465 (d)(e) 

New York City, NY, GO, Subseries A-1

      4.000 %      8/1/40        750,000        755,500  

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

      4.000 %      3/1/45        300,000        283,893  

New York State Dormitory Authority Revenue, Non-State Supported Debt, Memorial Sloan- Kettering Cancer Center, Series B-1

      4.000 %      7/1/51        500,000        492,192  

New York State Liberty Development Corp., Liberty Revenue:

           

3 World Trade Center Project, Class 1, Refunding

      5.000 %      11/15/44        1,205,000        1,203,322 (b)  

7 World Trade Center Project, Class 3, Refunding

      3.500 %      9/15/52        700,000        576,747  

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

      4.000 %      1/1/45        750,000        734,340  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal High Income Fund Inc. 2023 Quarterly Report    

  

 

 

9

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2023

(Percentages shown based on Fund net assets)

 

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 %      1/1/33      $ 750,000      $ 782,646 (a) 

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

      4.375 %      10/1/45        250,000        237,768 (a)  

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

      4.000 %      12/1/42        500,000        473,433  

LaGuardia Airport Terminal B Redevelopment Project, Series A

      5.000 %      7/1/41        300,000        301,745 (a)  

LaGuardia Airport Terminal B Redevelopment Project, Series A

      5.000 %      7/1/46        500,000        500,316 (a)  

Port Authority of New York & New Jersey Revenue, Consolidated Series 221

      4.000 %      7/15/45        1,000,000        967,026 (a)  

Troy Capital Resource Corp., NY, Revenue, Rensselaer Polytechnic Institute Project, Series A, Refunding

      4.000 %      9/1/40        500,000        486,621  
          

 

 

  

Total New York

              9,854,547  
          

 

 

  

North Carolina - 0.3%

           

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

      5.000 %      7/1/47        500,000        506,454  
          

 

 

  

North Dakota - 0.3%

           

Grand Forks, ND, Health Care System Revenue, Altru Health System, Refunding, AGM

      3.000 %      12/1/46        600,000        467,721  
          

 

 

  

Ohio - 1.1%

           

Buckeye, OH, Tobacco Settlement Financing Authority Revenue, Senior Bonds, Series B-2, Refunding

      5.000 %      6/1/55        800,000        764,003  

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

      2.500 %      10/1/29        350,000        319,875 (a)(d)(e) 

Ohio State Private Activity Revenue, Portsmouth Bypass Project

      5.000 %      6/30/53        700,000        703,525 (a)  
          

 

 

  

Total Ohio

              1,787,403  
          

 

 

  

Oklahoma - 0.3%

           

Tulsa County, OK, Industrial Authority, Senior Living Community Revenue, Montereau Inc. Project, Refunding

      5.250 %      11/15/37        500,000        511,198  
          

 

 

  

 

See Notes to Schedule of Investments.

 

 

 

10

  

    Western Asset Municipal High Income Fund Inc. 2023 Quarterly Report

  

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2023

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Oregon - 0.3%

           

Clackamas County, OR, Hospital Facility Authority Revenue, Senior Living, Willamette View Project, Refunding

      5.000 %      11/15/37      $ 500,000      $ 496,351  
          

 

 

  

Pennsylvania - 6.4%

           

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

      4.000 %      7/15/39        350,000        351,614  

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

      5.000 %      6/1/33        200,000        221,375  

Cumberland County, PA, Municipal Authority Revenue:

           

Diakon Lutheran Social Ministries 2015, Refunding

      5.000 %      1/1/28        45,000        47,198 (c)  

Diakon Lutheran Social Ministries 2015, Refunding

      5.000 %      1/1/28        105,000        110,128 (c)  

Diakon Lutheran Social Ministries 2015, Refunding

      5.000 %      1/1/28        200,000        203,939  

Erie County, PA, Convention Center Authority Guaranteed Hotel Revenue, County Guaranty, Refunding

      5.000 %      1/15/36        750,000        776,644  

Lancaster County, PA, Convention Center Authority Revenue, Hotel Room Rental Tax:

           

Series B, Refunding

      4.000 %      5/1/49        250,000        241,784  

Series B, Refunding

      4.750 %      5/1/57        500,000        515,473  

Lancaster, PA, IDA Revenue, Willow Valley Communities Project

      5.000 %      12/1/49        500,000        522,223  

Pennsylvania State Economic Development Financing Authority Revenue, Tax-Exempt Private Activity, The Penndot Major Bridges Package One Project

      5.250 %      6/30/53        2,400,000        2,524,931 (a)  

Pennsylvania State Turnpike Commission Revenue, Subordinated,
Series B, Refunding

      5.000 %      6/1/39        3,170,000        3,306,130  

Philadelphia, PA, Authority for IDR:

           

Charter School Revenue, A String Theory Charter School Project

      5.000 %      6/15/40        400,000        401,654  

City Service Agreement Revenue, Rebuild Project

      5.000 %      5/1/38        500,000        538,963  

Lease Revenue, Refunding

      5.000 %      10/1/30        250,000        290,265  
          

 

 

  

Total Pennsylvania

              10,052,321  
          

 

 

  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal High Income Fund Inc. 2023 Quarterly Report    

  

 

 

11

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2023

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Puerto Rico - 4.1%

           

Puerto Rico Commonwealth Highway & Transportation Authority Revenue:

           

Restructured, Series A

      5.000 %      7/1/62      $ 160,000      $ 154,400  

Restructured, Series B

      0.000 %      7/1/32        120,000        75,600 (d)  

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

           

CAB, Restructured, Series A-1

      0.000 %      7/1/27        240,000        198,192  

CAB, Restructured, Series A-1

      0.000 %      7/1/46        1,220,000        336,545  

Restructured, Series A-1

      4.550 %      7/1/40        50,000        49,300  

Restructured, Series A-1

      4.750 %      7/1/53        3,020,000        2,879,830  

Restructured, Series A-1

      5.000 %      7/1/58        880,000        869,219  

Restructured, Series A-2

      4.329 %      7/1/40        530,000        508,706  

Restructured, Series A-2A

      4.550 %      7/1/40        1,380,000        1,360,683  
          

 

 

  

Total Puerto Rico

              6,432,475  
          

 

 

  

South Carolina - 0.3%

           

South Carolina State Jobs-EDA Hospital Facilities Revenue, Bon Secours Mercy Health Inc., Series A, Refunding

      4.000 %      12/1/44        400,000        389,724  
          

 

 

  

Tennessee - 0.6%

           

Clarksville, TN, Water, Sewer & Gas Revenue, Series A

      4.000 %      2/1/51        500,000        496,390  

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

      4.000 %      11/1/25        400,000        402,016 (d)(e) 
          

 

 

  

Total Tennessee

              898,406  
          

 

 

  

Texas - 6.1%

           

Arlington, TX, Higher Education Finance Corp., Education Revenue, Uplift Education, Series A

      5.000 %      12/1/46        200,000        203,271  

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

      5.000 %      2/15/41        500,000        517,024  

Austin, TX, Airport System Revenue:

           

Series 2022

      5.000 %      11/15/52        300,000        316,092 (a)  

Series B

      5.000 %      11/15/39        600,000        643,119 (a)  

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

      4.000 %      1/1/50        500,000        486,460  

Gulf Coast, TX, IDA, Solid Waste Disposal Revenue, Citgo Petroleum Corp. Project

      4.875 %      5/1/25        1,000,000        1,000,261 (a) 

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

           

Series 2017

      5.000 %      11/1/33        20,000        21,254 (a)  

Series 2017

      5.000 %      11/1/36        20,000        20,943 (a)  

 

See Notes to Schedule of Investments.

 

 

 

12

  

    Western Asset Municipal High Income Fund Inc. 2023 Quarterly Report

  

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2023

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Texas - continued

           

New Hope Cultural Education Facilities Finance Corp., TX, Retirement Facility Revenue:

           

MRC Crestview, Refunding

      5.000 %      11/15/36      $ 550,000      $ 583,503 (c) 

Westminster Manor Project

      4.000 %      11/1/49        400,000        316,912  

Westminster Manor Project, Refunding

      5.000 %      11/1/40        1,000,000        1,002,632  

New Hope Cultural Education Facilities Finance Corp., TX, Student Housing Revenue, Collegiate Housing Stephenville II LLC, Tartleton State University Project, Series A

      5.000 %      4/1/39        1,165,000        1,197,684 (c) 

Newark, TX, Higher Education Finance Corp., Education Revenue, TLC Academy, Series A

      4.000 %      8/15/56        350,000        265,550  

Tarrant County, TX, Cultural Education Facilities Finance Corp., Retirement Facility Revenue, Buckner Retirement Services Inc. Project, Refunding

      5.000 %      11/15/37        700,000        727,599  

Texas State, Municipal Gas Acquisition & Supply Corp. I, Gas Supply Revenue, Senior Lien, Series D

      6.250 %      12/15/26        550,000        584,658  

Texas State Private Activity Bond Surface Transportation Corp. Revenue:

           

Senior Lien, Blueridge Transportation Group LLC

      5.000 %      12/31/40        1,000,000        1,011,654 (a) 

Senior Lien, Blueridge Transportation Group LLC

      5.000 %      12/31/50        500,000        501,884 (a)  

Willacy County, TX, Jail Public Facilities Corp. Project Revenue

      7.500 %      11/1/25        210,000        185,592  
          

 

 

  

Total Texas

              9,586,092  
          

 

 

  

Utah - 0.8%

           

Utah State Charter School Finance Authority, Charter School Revenue:

           

Summit Academy Inc., Series A, Refunding, UT CSCE

      5.000 %      4/15/39        350,000        371,245  

Syracuse Arts Academy Project, UT CSCE

      5.000 %      4/15/42        250,000        256,718  

Utah State Infrastructure Agency, Telecommunications Revenue, Series A

      5.250 %      10/15/33        550,000        569,929  
          

 

 

  

Total Utah

              1,197,892  
          

 

 

  

Virginia - 1.3%

           

Virginia State Port Authority, Port Facilities Revenue:

           

Series B, Refunding

      5.000 %      7/1/41        250,000        258,965 (a)  

Series B, Refunding

      5.000 %      7/1/45        300,000        310,552 (a)  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal High Income Fund Inc. 2023 Quarterly Report    

  

 

 

13

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2023

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

Virginia - continued

           

Virginia State Small Business Financing Authority Revenue:

           

National Senior Campuses, Inc., Series A, Refunding

      5.000 %      1/1/34      $ 200,000      $ 218,008  

Senior Lien, 95 Express Lanes LLC Project, Refunding

      5.000 %      1/1/37        1,000,000        1,072,336 (a)  

Senior Lien, I-495 HOT Lanes Project, Refunding

      5.000 %      12/31/47        250,000        259,982 (a)  
          

 

 

  

Total Virginia

              2,119,843  
          

 

 

  

Washington - 0.9%

           

Port of Seattle, WA, Intermediate Lien Revenue, Series 2022, Refunding

      5.000 %      8/1/41        500,000        542,581 (a)  

Washington State Health Care Facilities Authority Revenue:

           

Commonspirit Health, Series A-1, Refunding

      4.000 %      8/1/44        535,000        515,523  

Seattle Cancer Care Alliance

      4.000 %      12/1/40        370,000        370,803  
          

 

 

  

Total Washington

              1,428,907  
          

 

 

  

Wisconsin - 2.0%

           

Public Finance Authority, WI, Revenue:

           

Carmelite System Inc., Obligated Group, Series 2020, Refunding

      5.000 %      1/1/40        100,000        100,810  

Celanese Project, Series B, Refunding

      5.000 %      12/1/25        550,000        561,302 (a)  

Cone Health, Series A

      5.000 %      10/1/52        300,000        319,102  

Public Finance Authority, WI, Student Housing Revenue:

           

Appalachian State University Project, Series A, AGM

      4.000 %      7/1/45        600,000        564,390  

CHF Wilmington LLC, University of North Carolina at Wilmington Project, AGM

      5.000 %      7/1/53        1,000,000        1,030,077  

University of Hawai’i Foundation Project, Green Bonds, Series A-1

      4.000 %      7/1/51        280,000        221,320 (b)  

Wisconsin State HEFA Revenue, Bellin Memorial Hospital Inc., Series A

      5.500 %      12/1/52        250,000        277,616  
          

 

 

  

Total Wisconsin

              3,074,617  
          

 

 

  

TOTAL MUNICIPAL BONDS
(Cost - $149,951,791)

              150,243,845  
          

 

 

  

 

See Notes to Schedule of Investments.

 

 

 

14

  

    Western Asset Municipal High Income Fund Inc. 2023 Quarterly Report

  

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2023

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  
                            
MUNICIPAL BONDS DEPOSITED IN TENDER OPTION BOND TRUST (i) - 2.1%

 

      

New York - 2.1%

           

New York City, NY, Municipal Water Finance Authority, Water & Sewer System Revenue, Second General Resolution Fiscal 2023, Subseries AA-1

      5.250 %      6/15/52      $ 1,440,000      $ 1,641,010  

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

      4.000 %      3/15/45        1,740,000        1,725,102  
          

 

 

  

TOTAL MUNICIPAL BONDS DEPOSITED IN TENDER OPTION BOND TRUST
(Cost - $3,287,671)

 

      3,366,112  
          

 

 

  

TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS
(Cost - $153,239,462)

 

      153,609,957  
          

 

 

  
SHORT-TERM INVESTMENTS - 4.2%           
MUNICIPAL BONDS - 3.4%           

California - 0.1%

           

San Jose, CA, Multifamily Housing Revenue, Series B, Refunding, LIQ - FHLMC

      1.390 %      7/1/38        100,000        100,000 (a)(j)(k) 
          

 

 

  

Maryland - 0.1%

           

Maryland State Health & Higher EFA Revenue, University of Maryland Medical System, Series D, LOC - TD Bank N.A.

      1.200 %      7/1/41        200,000        200,000 (j)(k) 
          

 

 

  

Mississippi - 1.5%

           

Mississippi State Business Finance Corp., Gulf Opportunity Zone, IDR:

           

Chevron USA Inc. Project, Series B

      1.200 %      12/1/30        1,050,000        1,050,000 (j)(k) 

Chevron USA Inc. Project, Series B

      1.200 %      11/1/35        100,000        100,000 (j)(k)  

Chevron USA Inc. Project, Series C

      1.200 %      12/1/30        100,000        100,000 (j)(k)  

Chevron USA Inc. Project, Series G

      1.200 %      11/1/35        1,175,000        1,175,000 (j)(k) 
          

 

 

  

Total Mississippi

              2,425,000  
          

 

 

  

Nevada - 0.4%

           

Nevada State Housing Division, Multi Unit Housing Revenue, Series A, LOC - FNMA, LIQ - FNMA

      1.700 %      4/15/33        650,000        650,000 (a)(j)(k) 
          

 

 

  

New York - 0.3%

           

New York City, NY, GO, Subseries E-5, LOC - TD Bank N.A.

      1.150 %      3/1/48        200,000        200,000 (j)(k)  

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal High Income Fund Inc. 2023 Quarterly Report    

  

 

 

15

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2023

(Percentages shown based on Fund net assets)

 

SECURITY

    RATE     MATURITY
DATE		      FACE
AMOUNT		      VALUE  

New York - continued

           

New York City, NY, Municipal Water Finance Authority, Water & Sewer System Revenue, Second General Resolution Fiscal 2014, Series AA-5, Refunding, SPA - Mizuho Bank Ltd.

      1.150 %      6/15/48      $ 100,000      $ 100,000 (j)(k) 

New York State Housing Finance Agency Revenue, 350 West 43rd Street, Series A LOC - Landesbank Hessen - Thueringen

      1.210 %      11/1/34        150,000        150,000 (a)(j)(k) 
          

 

 

  

Total New York

              450,000  
          

 

 

  

North Carolina - 0.3%

           

North Carolina Educational Facilities Finance Agency Revenue, Duke University, Series A

      1.450 %      6/1/27        400,000        400,000 (j)(k) 
          

 

 

  

Pennsylvania - 0.6%

           

Philadelphia, PA, Authority for IDR, Gift of Life Donor Program Project, LOC - TD Bank N.A.

      1.600 %      12/1/34        900,000        900,000 (j)(k) 
          

 

 

  

Texas - 0.1%

           

Harris County, TX, Solid Waste Disposal Revenue, Industrial Development Corp. Project

      1.190 %      4/1/32        200,000        200,000 (a)(j)(k) 
          

 

 

  

TOTAL MUNICIPAL BONDS
(Cost - $5,325,000)

              5,325,000  
          

 

 

  
U.S. GOVERNMENT AGENCIES - 0.8%           

Federal Home Loan Bank (FHLB), Discount Notes
(Cost - $1,200,000)

      0.000 %      2/1/23        1,200,000        1,200,000 (l) 
          

 

 

  
                  SHARES         
MONEY MARKET FUNDS - 0.0%††           

Western Asset Premier Institutional Government Reserves, Premium Shares

(Cost - $61,508)

      4.283 %         61,508        61,508 (m)(n)  
          

 

 

  

TOTAL SHORT-TERM INVESTMENTS
(Cost - $6,586,508)

              6,586,508  
          

 

 

  

TOTAL INVESTMENTS - 101.6%
(Cost - $159,825,970)

              160,196,465  

TOB Floating Rate Notes - (1.2)%

              (1,830,000 ) 

Other Liabilities in Excess of Other Assets - (0.4)%

              (713,689 ) 
          

 

 

  

TOTAL NET ASSETS - 100.0%

            $ 157,652,776  
          

 

 

  

 

See Notes to Schedule of Investments.

 

 

 

16

  

    Western Asset Municipal High Income Fund Inc. 2023 Quarterly Report

  

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2023

 

††

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)

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.

 

(c)

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

 

(d)

Maturity date shown represents the mandatory tender date.

 

(e)

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.

 

(f)

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

 

(g)

The coupon payment on this security is currently in default as of January 31, 2023.

 

(h)

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

 

(i)

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

 

(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.

 

(l)

Rate shown represents yield-to-maturity.

 

(m)

Rate shown is one-day yield as of the end of the reporting period.

 

(n)

In this instance, as defined in the Investment Company Act of 1940, an “Affiliated Company” represents Fund ownership of at least 5% of the outstanding voting securities of an issuer, or a company which is under common ownership or control with the Fund. At January 31, 2023, the total market value of investments in Affiliated Companies was $61,508 and the cost was $61,508 (Note 2).

 

See Notes to Schedule of Investments.

 

 

Western Asset Municipal High Income Fund Inc. 2023 Quarterly Report    

  

 

 

17

WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2023

 

Abbreviation(s) used in this schedule:

 

AGM    — Assured Guaranty Municipal Corporation - Insured Bonds
BAM    — Build America Mutual - Insured Bonds
CAB    — Capital Appreciation Bonds
CDA    — Communities Development Authority
CSCE    — Charter School Credit Enhancement
DFA    — Development Finance Agency
EDA    — Economic Development Authority
EDC    — Economic Development Corporation
EFA    — Educational Facilities Authority
FHLMC    — Federal Home Loan Mortgage Corporation
FNMA    — Federal National Mortgage Association
GO    — General Obligation
HDA    — Housing Development Authority
HEFA    — Health & Educational Facilities Authority
IDA    — Industrial Development Authority
IDR    — Industrial Development Revenue
LIQ    — Liquidity Facility
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
SPA    — Standby Bond Purchase Agreement - Insured Bonds

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.

 

 

 

18

  

    Western Asset Municipal High Income Fund Inc. 2023 Quarterly Report

  

Notes to Schedule of Investments (unaudited)

 

1. Organization and significant accounting policies

Western Asset Municipal High Income Fund Inc. (the “Fund”) was incorporated in Maryland and is registered as a diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund seeks high current income exempt from federal income taxes. The Fund seeks to achieve its investment objective by investing primarily in intermediate and long-term municipal debt securities issued by state and local governments (“municipal obligations”). However, the Fund may invest in municipal obligations of any maturity. The Fund may invest up to 100% of its assets in municipal obligations rated below investment grade (commonly referred to as “junk bonds”). Investment grade securities are those rated in the Baa/BBB categories or above by at least one National Recognized Statistical Rating Organization that provides such a rating or unrated securities that the subadviser determined to be of comparable credit quality. For credit ratings purposes, pre-refunded bonds are deemed to be unrated. The subadviser determines the credit quality of pre-refunded bonds based on the quality of the escrowed collateral and such other factors as the subadviser deems appropriate.

The Fund follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies (“ASC 946”). The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”), including, but not limited to, ASC 946.

(a) Investment valuation. The valuations for fixed income securities (which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and certain derivative instruments are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing services typically use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Investments in open-end funds are valued at the closing net asset value per share of each fund on the day of valuation. 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.

 

   

 

 

19

Notes to Schedule of Investments (unaudited) (cont’d)

 

Pursuant to policies adopted by the Board of Directors, the Fund’s manager has been designated as the valuation designee and is responsible for the oversight of the daily valuation process. The Fund’s manager is assisted by the Global Fund Valuation Committee (the “Valuation Committee”). The Valuation Committee is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Fund’s manager and the Board of Directors. When determining the reliability of third party pricing information for investments owned by the Fund, the Valuation Committee, among other things, conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.

The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuer’s financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts’ research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.

For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Directors, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such back testing monthly and fair valuation occurrences are reported to the Board of Directors quarterly.

The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.

 

 

 

20

    

Notes to Schedule of Investments (unaudited) (cont’d)

 

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 – unadjusted quoted prices in active markets for identical investments

 

  •  

Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

 

  •  

Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

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

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

 

ASSETS

  

DESCRIPTION

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

Long-Term Investments†:

            

Municipal Bonds

      —        $ 150,243,845        —        $ 150,243,845  

Municipal Bonds Deposited in Tender Option Bond Trust

      —          3,366,112        —          3,366,112  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Long-Term Investments

      —          153,609,957        —          153,609,957  
  

 

 

     

 

 

     

 

 

     

 

 

  

Short-Term Investments†:

            

Municipal Bonds

      —          5,325,000        —          5,325,000  

U.S. Government Agencies

      —          1,200,000        —          1,200,000  

Money Market Funds

    $ 61,508        —          —          61,508  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Short-Term Investments

      61,508        6,525,000        —          6,586,508  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 61,508      $ 160,134,957        —        $ 160,196,465  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

†

See Schedule of Investments for additional detailed categorizations.

2. Transactions with affiliated company

As defined by the 1940 Act, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control with the Fund. The following company was considered an affiliated company for

 

   

 

 

21

Notes to Schedule of Investments (unaudited) (cont’d)

 

all or some portion of the period ended January 31, 2023. The following transactions were effected in such company for the period ended January 31, 2023.

 

     Affiliate
Value at
October 31,
2022		      Purchased      Sold      Realized
Gain (Loss)		      Dividend
Income		      Net Increase
(Decrease) in
Unrealized
Appreciation
(Depreciation)		      Affiliate
Value at
January 31,
2023		  
     Cost      Shares      Proceeds      Shares  
Western Asset Premier Institutional Government Reserves, Premium Shares    $ 46,898      $ 296,193        296,193      $ 281,583        281,583        —        $ 383        —        $ 61,508  

 

 

 

22