UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED
SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05497
Western Asset Municipal High Income Fund Inc.
(Exact name of registrant as specified in charter)
620 Eighth
Avenue, 47th Floor, New York, NY 10018
(Address of principal executive offices)
(Zip code)
George P. Hoyt.
Franklin Templeton
100
First Stamford Place
Stamford, CT 06902
(Name and address of agent for service)
Registrants telephone number, including area code: 1-888-777-0102
Date of fiscal year end: October 31
Date of reporting period: April 30, 2023
ITEM 1. |
REPORT TO STOCKHOLDERS. |
The Semi-Annual Report to Stockholders is filed herewith.
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Semi-Annual Report |
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April 30, 2023 |
WESTERN ASSET
MUNICIPAL HIGH INCOME
FUND INC. (MHF)
|
INVESTMENT PRODUCTS: NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE |
Fund objective
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).
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II |
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Western Asset Municipal High Income Fund Inc. |
Letter from the chairman
Dear Shareholder,
We are pleased to provide the semi-annual report of Western Asset Municipal High Income Fund Inc. for the six-month reporting
period ended April 30, 2023. Please read on for Fund performance information during the Funds reporting period.
As always, we remain committed to
providing you with excellent service and a full spectrum of investment choices. We also remain committed to supplementing the support you receive from your financial advisor. One way we accomplish this is through our website,
www.franklintempleton.com. Here you can gain immediate access to market and investment information, including:
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Fund prices and performance, |
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Market insights and commentaries from our portfolio managers, and |
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A host of educational resources. |
We look forward to helping you meet your financial goals.
Sincerely,
Jane Trust, CFA
Chairman, President and Chief Executive Officer
May 31, 2023
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Western Asset Municipal High Income Fund Inc. |
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III |
Performance review
For the six months ended April 30, 2023, Western Asset Municipal High Income Fund Inc.
returned 7.35% based on its net asset value (NAV)i and 5.07% based on its New York Stock Exchange (NYSE) market price per share. The Funds unmanaged benchmark, the Bloomberg Municipal Bond Indexii, returned 7.65% for
the same period.
Certain investors may be subject to the federal alternative minimum tax, and state and local taxes will apply. Capital gains, if any, are fully
taxable. Please consult your personal tax or legal adviser.
The Fund has a practice of seeking to maintain a relatively stable level of distributions to
shareholders. This practice has no impact on the Funds investment strategy and may reduce the Funds NAV. The Funds manager believes the practice helps maintain the Funds competitiveness and may benefit the Funds market
price and premium/discount to the Funds NAV.
During this six-month period, the Fund made distributions to shareholders
totaling $0.12 per share. As of April 30, 2023, the Fund estimates that all of the distributions were sourced from net investment income.* The performance table shows the Funds six-month total
return based on its NAV and market price as of April 30, 2023. Past performance is no guarantee of future results.
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Performance Snapshot as of April 30,
2023
(unaudited) |
|
Price Per Share |
|
6-Month
Total Return** |
|
$7.19 (NAV) |
|
|
7.35 |
% |
$6.46 (Market Price) |
|
|
5.07 |
% |
All figures represent past performance and are not a guarantee of future results. Performance figures for periods shorter than one year
represent cumulative figures and are not annualized.
** Total returns are based on changes in NAV or market price, respectively. Returns reflect the deduction
of all Fund expenses, including management fees, operating expenses, and other Fund expenses. Returns do not reflect the deduction of brokerage commissions or taxes that investors may pay on distributions or the sale of shares.
Total return assumes the reinvestment of all distributions, including returns of capital, if any, at NAV.
Total return assumes the reinvestment of all distributions, including returns of capital, if any, in additional shares in accordance with the Funds
Dividend Reinvestment Plan.
* |
These estimates are not for tax purposes. The Fund will issue a Form 1099 with final composition of the distributions for
tax purposes after year-end. A return of capital is not taxable and results in a reduction in the tax basis of a shareholders investment. For more information about a distributions composition,
please refer to the Funds distribution press release or, if applicable, the Section 19 notice located in the press release section of our website, www.franklintempleton.com. |
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IV |
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Western Asset Municipal High Income Fund Inc. |
Performance review (contd)
Looking for additional information?
The Fund is traded under the symbol MHF and its closing market price is available in most newspapers under the NYSE listings. The daily NAV is available
online under the symbol XMHFX on most financial websites. Barrons and The Wall Street Journals Monday edition both carry closed-end fund tables that provide additional
information. In addition, the Fund issues a quarterly press release that can be found on most major financial websites as well as www.franklintempleton.com.
In a
continuing effort to provide information concerning the Fund, shareholders may call 1-888-777-0102 (toll free), Monday through
Friday from 8:00 a.m. to 5:30 p.m. Eastern Time, for the Funds current NAV, market price and other information.
Thank you for your investment in Western Asset
Municipal High Income Fund Inc. As always, we appreciate that you have chosen us to manage your assets and we remain focused on achieving the Funds investment goals.
Sincerely,
Jane Trust, CFA
Chairman, President and Chief Executive Officer
May 31, 2023
RISKS: The Fund is a diversified closed-end management investment
company designed primarily as a long-term investment and not as a trading vehicle. The Fund is not intended to be a complete investment program and, due to the uncertainty inherent in all investments, there can be no assurance that the Fund will
achieve its investment objective. The Funds common stock is traded on the New York Stock Exchange. Similar to stocks, the Funds share price will fluctuate with market conditions and, at the time of sale, may be worth more or less than
the original investment. Shares of closed-end funds often trade at a discount to their net asset value. Diversification does not assure against market loss. The Funds investments are subject to a number
of risks, such as credit risk, inflation risk and interest rate risk. High yield bonds, known as junk bonds, involve greater credit and liquidity risks than investment grade bonds. As interest rates rise, bond prices fall, reducing the
value of the Funds holdings. Municipal securities purchased by the Fund may be adversely affected by changes in the financial condition of municipal issuers and insurers, regulatory and political developments, uncertainties and public
perceptions, and other factors. The Fund may invest in securities of other investment companies. To the extent it does, Fund stockholders will indirectly pay a portion of the operating costs of such companies, in addition to the expenses that the
Fund bears directly in connection with its own operation. Investing in securities issued by other investment companies, including exchange-traded funds (ETFs) that invest primarily in municipal securities, involves risks
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Western Asset Municipal High Income Fund Inc. |
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V |
similar to those of investing directly in the securities in which those investment companies invest. The Fund may use
derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses, and have a potentially large impact on Fund performance. The Fund may also invest in money market funds, including funds affiliated with the
Funds manager and subadviser. The market values of securities or other assets will fluctuate, sometimes sharply and unpredictably, due to changes in general market conditions, overall economic trends or events, governmental actions or
intervention, actions taken by the U.S. Federal Reserve or foreign central banks, market disruptions caused by trade disputes or other factors, political developments, armed conflicts, economic sanctions and countermeasures in response to sanctions,
major cybersecurity events, investor sentiment, the global and domestic effects of a pandemic, and other factors that may or may not be related to the issuer of the security or other asset.
All investments are subject to risk including the possible loss of principal. Past performance is no guarantee of future results. All index performance reflects no
deduction for fees, expenses or taxes. Please note that an investor cannot invest directly in an index.
i |
Net asset value (NAV) is calculated by subtracting total liabilities, including liabilities associated with
financial leverage (if any), from the closing value of all securities held by the Fund (plus all other assets) and dividing the result (total net assets) by the total number of the common shares outstanding. The NAV fluctuates with changes in the
market prices of securities in which the Fund has invested. However, the price at which an investor may buy or sell shares of the Fund is the Funds market price as determined by supply of and demand for the Funds shares.
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ii |
The Bloomberg Municipal Bond Index is a market value weighted index of investment grade municipal bonds with maturities of
one year or more. |
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VI |
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Western Asset Municipal High Income Fund Inc. |
Fund at a glance
(unaudited)
Investment breakdown (%) as a percent of total investments
|
The bar graph above represents the composition of the Funds investments as of April 30, 2023 and
October 31, 2022. The Fund is actively managed. As a result, the composition of the Funds investments is subject to change at any time. |
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Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
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1 |
|
Schedule of investments (unaudited)
April 30, 2023
Western Asset Municipal High
Income Fund Inc.
|
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(Percentages shown based on Fund net assets) |
|
Security |
|
Rate |
|
|
Maturity
Date |
|
|
Face
Amount |
|
|
Value |
|
Municipal Bonds 95.0% |
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
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Alabama 5.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alabama State Corrections Institution Finance Authority Revenue, Series A |
|
|
5.250 |
% |
|
|
7/1/52 |
|
|
$ |
500,000 |
|
|
$ |
538,501 |
|
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 |
|
|
|
3,118,919 |
|
Senior Lien, Warrants, Series A, Refunding, AGM |
|
|
5.500 |
% |
|
|
10/1/53 |
|
|
|
400,000 |
|
|
|
409,845 |
|
Subordinated Lien, Warrants, Series D, Refunding |
|
|
6.000 |
% |
|
|
10/1/42 |
|
|
|
1,120,000 |
|
|
|
1,184,493 |
|
Subordinated Lien, Warrants, Series D, Refunding |
|
|
6.500 |
% |
|
|
10/1/53 |
|
|
|
3,000,000 |
|
|
|
3,177,424 |
|
Total Alabama |
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|
|
|
|
|
|
|
|
|
|
|
|
|
8,429,182 |
|
Alaska 0.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Anchorage, AK, Port Revenue, Series A |
|
|
5.000 |
% |
|
|
12/1/50 |
|
|
|
250,000 |
|
|
|
254,655 |
(a) |
Northern Tobacco Securitization Corp., AK, Tobacco Settlement Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Backed Senior Bonds, Class 1, Series A |
|
|
4.000 |
% |
|
|
6/1/36 |
|
|
|
400,000 |
|
|
|
397,280 |
|
Asset Backed Senior Bonds, Class 1, Series A, Refunding |
|
|
4.000 |
% |
|
|
6/1/50 |
|
|
|
250,000 |
|
|
|
221,242 |
|
Asset Backed Senior Bonds, Class 2, Series
B-1 |
|
|
4.000 |
% |
|
|
6/1/50 |
|
|
|
500,000 |
|
|
|
499,308 |
|
Total Alaska |
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|
|
|
|
|
|
|
|
|
|
|
|
|
1,372,485 |
|
Arizona 3.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Arizona, AZ, IDA Revenue, Doral Academy Of Northern Nevada Project, Series A,
Refunding |
|
|
4.000 |
% |
|
|
7/15/51 |
|
|
|
500,000 |
|
|
|
377,421 |
(b) |
La Paz County, AZ, IDA Revenue, Charter School Solutions, Harmony Public School Project,
Series A |
|
|
5.000 |
% |
|
|
2/15/36 |
|
|
|
1,000,000 |
|
|
|
1,015,096 |
(b) |
Maricopa County, AZ, IDA Revenue, Legacy Traditional Schools Project, Series 2019,
Refunding |
|
|
5.000 |
% |
|
|
7/1/49 |
|
|
|
500,000 |
|
|
|
446,446 |
(b) |
Navajo Nation, AZ, Revenue, Series A, Refunding |
|
|
5.500 |
% |
|
|
12/1/30 |
|
|
|
190,000 |
|
|
|
197,108 |
(b) |
Phoenix, AZ, IDA Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basis School Inc., Refunding |
|
|
5.000 |
% |
|
|
7/1/35 |
|
|
|
1,000,000 |
|
|
|
1,003,184 |
(b) |
Great Hearts Academies, Refunding |
|
|
5.000 |
% |
|
|
7/1/41 |
|
|
|
1,200,000 |
|
|
|
1,204,117 |
|
Salt Verde, AZ, Financial Corp., Natural Gas Revenue, Series 2007 |
|
|
5.000 |
% |
|
|
12/1/37 |
|
|
|
1,500,000 |
|
|
|
1,556,102 |
|
Total Arizona |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,799,474 |
|
See Notes to Financial
Statements.
|
|
|
|
|
2 |
|
|
|
Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
Western Asset Municipal High Income Fund Inc.
(Percentages shown based on Fund net assets)
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
Rate |
|
|
Maturity
Date |
|
|
Face
Amount |
|
|
Value |
|
California 10.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alameda, CA, Corridor Transportation Authority Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible CAB, Series C, Refunding, AGM |
|
|
5.000 |
% |
|
|
10/1/52 |
|
|
$ |
600,000 |
|
|
$ |
652,703 |
|
Second Subordinated Lien, Series B, Refunding |
|
|
5.000 |
% |
|
|
10/1/34 |
|
|
|
500,000 |
|
|
|
519,872 |
|
Anaheim, CA, Public Financing Authority Lease Revenue, Series A, Refunding |
|
|
5.000 |
% |
|
|
5/1/46 |
|
|
|
2,000,000 |
|
|
|
2,039,192 |
(c) |
California State Community Choice Financing Authority Revenue, Clean Energy Project, Green
Bonds, Series B-1 |
|
|
5.000 |
% |
|
|
8/1/29 |
|
|
|
500,000 |
|
|
|
532,389 |
(d)(e) |
California State Community Housing Agency, Essential Housing Revenue, Stoneridge
Apartments, Series A |
|
|
4.000 |
% |
|
|
2/1/56 |
|
|
|
500,000 |
|
|
|
371,343 |
(b) |
California State MFA Revenue, Senior Lien, LINXS APM Project, Series A |
|
|
5.000 |
% |
|
|
12/31/43 |
|
|
|
700,000 |
|
|
|
713,667 |
(a) |
California State PCFA Water Furnishing Revenue, San Diego County Water Authority
Desalination Project, Refunding |
|
|
5.000 |
% |
|
|
7/1/39 |
|
|
|
700,000 |
|
|
|
715,529 |
(b) |
California State Public Finance Authority, Senior Living Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Enso Village Project, Green Bond, Series A |
|
|
5.000 |
% |
|
|
11/15/36 |
|
|
|
250,000 |
|
|
|
240,943 |
|
Enso Village Project, Green Bond, Series B-3,
Refunding |
|
|
2.125 |
% |
|
|
11/15/27 |
|
|
|
250,000 |
|
|
|
237,717 |
(b) |
California Statewide CDA Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provident Group-Pomona Properties LLC, Series A |
|
|
5.600 |
% |
|
|
1/15/36 |
|
|
|
500,000 |
|
|
|
499,995 |
(b) |
Provident Group-Pomona Properties LLC, Series A |
|
|
5.750 |
% |
|
|
1/15/45 |
|
|
|
360,000 |
|
|
|
359,990 |
(b) |
Inland Valley, CA, Development Agency, Successor Agency Tax Allocation Revenue, Series A,
Refunding |
|
|
5.000 |
% |
|
|
9/1/44 |
|
|
|
500,000 |
|
|
|
502,963 |
|
Mountain House Public Financing Authority, CA, Utility Systems Revenue, Green Bond, Series
A, BAM |
|
|
4.000 |
% |
|
|
12/1/45 |
|
|
|
750,000 |
|
|
|
734,791 |
|
M-S-R
Energy Authority, CA, Natural Gas Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series B |
|
|
6.500 |
% |
|
|
11/1/39 |
|
|
|
1,000,000 |
|
|
|
1,173,320 |
|
Series C |
|
|
7.000 |
% |
|
|
11/1/34 |
|
|
|
2,000,000 |
|
|
|
2,437,411 |
|
Series C |
|
|
6.500 |
% |
|
|
11/1/39 |
|
|
|
2,000,000 |
|
|
|
2,346,639 |
|
Redding, CA, Redevelopment Agency, Tax Allocation, Shastec Redevelopment Project |
|
|
5.000 |
% |
|
|
9/1/29 |
|
|
|
600,000 |
|
|
|
602,589 |
|
See Notes to Financial Statements.
|
|
|
|
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|
|
Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
3 |
|
Schedule of investments
(unaudited) (contd)
April 30, 2023
Western Asset Municipal High Income Fund Inc.
(Percentages shown based on Fund net assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
Rate |
|
|
Maturity
Date |
|
|
Face
Amount |
|
|
Value |
|
California
continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
$ |
335,566 |
|
San Francisco, CA, City & County Airport Commission, International Airport
Revenue, Second Series A, Refunding |
|
|
5.000 |
% |
|
|
5/1/47 |
|
|
|
1,000,000 |
|
|
|
1,020,887 |
(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 |
|
|
|
207,245 |
|
Total California |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,244,751 |
|
Colorado 1.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aristation Metropolitan District, CO, GO, Convertible Unlimited & Special
Revenue, Refunding and Improvements |
|
|
5.000 |
% |
|
|
12/1/38 |
|
|
|
500,000 |
|
|
|
487,589 |
|
Colorado State Health Facilities Authority Revenue, Commonspirit Health Initiatives,
Series B-2 |
|
|
5.000 |
% |
|
|
8/1/26 |
|
|
|
250,000 |
|
|
|
259,792 |
(d)(e) |
Colorado State High Performance Transportation Enterprise Revenue, C-470 Express Lanes |
|
|
5.000 |
% |
|
|
12/31/51 |
|
|
|
150,000 |
|
|
|
147,676 |
|
North Range, CO, Metropolitan District #2, GO, Series A, Refunding |
|
|
5.625 |
% |
|
|
12/1/37 |
|
|
|
500,000 |
|
|
|
505,647 |
|
Public Authority for Colorado Energy, Natural Gas Purchase Revenue, Series 2008 |
|
|
6.125 |
% |
|
|
11/15/23 |
|
|
|
955,000 |
|
|
|
965,502 |
|
Village Metropolitan District, CO, Limited & Special Revenue, Series 2020,
Refunding and Improvements |
|
|
5.000 |
% |
|
|
12/1/40 |
|
|
|
500,000 |
|
|
|
482,184 |
|
Total Colorado |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,848,390 |
|
Connecticut 0.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Connecticut State Special Tax Revenue, Transportation Infrastructure, Series A |
|
|
5.000 |
% |
|
|
1/1/37 |
|
|
|
500,000 |
|
|
|
540,711 |
|
Connecticut State, GO, Series A |
|
|
4.000 |
% |
|
|
4/15/37 |
|
|
|
600,000 |
|
|
|
615,605 |
|
Total Connecticut |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,156,316 |
|
Florida 5.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Broward County, FL, Port Facilities Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior Bonds, Series B |
|
|
4.000 |
% |
|
|
9/1/44 |
|
|
|
1,250,000 |
|
|
|
1,198,761 |
(a) |
Senior Bonds, Series B |
|
|
4.000 |
% |
|
|
9/1/49 |
|
|
|
500,000 |
|
|
|
465,228 |
(a) |
Series 2022 |
|
|
5.500 |
% |
|
|
9/1/52 |
|
|
|
1,000,000 |
|
|
|
1,084,409 |
(a) |
Florida State Development Finance Corp., Educational Facilities Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mater Academy Projects, Series A |
|
|
5.000 |
% |
|
|
6/15/40 |
|
|
|
650,000 |
|
|
|
654,773 |
|
See Notes to Financial
Statements.
|
|
|
|
|
4 |
|
|
|
Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
Western Asset Municipal High Income Fund Inc.
(Percentages shown based on Fund net assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
Rate |
|
|
Maturity
Date |
|
|
Face
Amount |
|
|
Value |
|
Florida continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Renaissance Charter School Inc. Projects, Series A |
|
|
6.000 |
% |
|
|
6/15/35 |
|
|
$ |
250,000 |
|
|
$ |
252,550 |
(b) |
Renaissance Charter School Inc. Projects, Series A |
|
|
6.125 |
% |
|
|
6/15/46 |
|
|
|
215,000 |
|
|
|
215,637 |
(b) |
Florida State Mid-Bay Bridge Authority Revenue,
Series A, Refunding |
|
|
5.000 |
% |
|
|
10/1/28 |
|
|
|
500,000 |
|
|
|
513,570 |
|
Fort Pierce, FL, Utilities Authority Revenue, Series A, Refunding, AGM |
|
|
4.000 |
% |
|
|
10/1/52 |
|
|
|
150,000 |
|
|
|
142,793 |
|
Miami-Dade County, FL, Aviation Revenue, Series A, Refunding |
|
|
5.000 |
% |
|
|
10/1/49 |
|
|
|
650,000 |
|
|
|
668,831 |
(a) |
Miami-Dade County, FL, Seaport Revenue, Senior Bonds, Series A, Refunding |
|
|
5.250 |
% |
|
|
10/1/52 |
|
|
|
750,000 |
|
|
|
801,839 |
(a) |
Orange County, FL, Health Facilities Authority Revenue, Orlando Health Inc., Series
A |
|
|
5.000 |
% |
|
|
10/1/53 |
|
|
|
250,000 |
|
|
|
265,023 |
|
Palm Beach County, FL, Health Facilities Authority Hospital Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jupiter Medical Center Project, Series A |
|
|
5.000 |
% |
|
|
11/1/39 |
|
|
|
350,000 |
|
|
|
363,668 |
|
Jupiter Medical Center Project, Series A |
|
|
5.000 |
% |
|
|
11/1/47 |
|
|
|
1,515,000 |
|
|
|
1,531,655 |
|
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 |
|
|
|
77,923 |
|
Toby & Leon Cooperman Sinai Residences of Boca Raton Expansion, Series A |
|
|
5.000 |
% |
|
|
6/1/55 |
|
|
|
350,000 |
|
|
|
299,088 |
|
Reunion, FL, East Community Development District, Special Assessment Bond, Series A-2 |
|
|
7.375 |
% |
|
|
5/1/33 |
|
|
|
285,000 |
|
|
|
3 |
*(f) |
Total Florida |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,535,751 |
|
Georgia 0.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Georgia State Municipal Electric Authority Power Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plant Vogtle Units 3&4, Project M, Series A |
|
|
5.250 |
% |
|
|
7/1/64 |
|
|
|
350,000 |
|
|
|
366,441 |
|
Plant Vogtle Units 3&4, Project P, Series A |
|
|
5.000 |
% |
|
|
1/1/56 |
|
|
|
250,000 |
|
|
|
249,167 |
|
Plant Vogtle Units 3&4, Project P, Series A |
|
|
5.500 |
% |
|
|
7/1/64 |
|
|
|
250,000 |
|
|
|
259,655 |
|
Project One Subordinated, Series A |
|
|
5.000 |
% |
|
|
1/1/45 |
|
|
|
250,000 |
|
|
|
260,514 |
|
Main Street Natural Gas Inc., GA, Gas Project Revenue, Series A |
|
|
5.000 |
% |
|
|
5/15/43 |
|
|
|
150,000 |
|
|
|
150,697 |
|
Total Georgia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,286,474 |
|
See Notes to Financial
Statements.
|
|
|
|
|
|
|
Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
5 |
|
Schedule of investments
(unaudited) (contd)
April 30, 2023
Western Asset Municipal High Income Fund Inc.
(Percentages shown based on Fund net assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
Rate |
|
|
Maturity Date |
|
|
Face Amount |
|
|
Value |
|
Illinois 15.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chicago, IL, Board of Education, Dedicated Capital Improvement, Special Tax Revenue,
Series 2018 |
|
|
5.000 |
% |
|
|
4/1/42 |
|
|
$ |
1,000,000 |
|
|
$ |
1,016,305 |
|
Chicago, IL, Board of Education, GO: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dedicated, Series H |
|
|
5.000 |
% |
|
|
12/1/46 |
|
|
|
1,000,000 |
|
|
|
991,750 |
|
Series A |
|
|
5.000 |
% |
|
|
12/1/39 |
|
|
|
1,250,000 |
|
|
|
1,268,460 |
|
Series C, Refunding, AGM |
|
|
5.000 |
% |
|
|
12/1/32 |
|
|
|
250,000 |
|
|
|
268,748 |
|
Chicago, IL, GO: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chicago Works, Series A |
|
|
5.500 |
% |
|
|
1/1/39 |
|
|
|
550,000 |
|
|
|
600,052 |
|
Series A |
|
|
5.000 |
% |
|
|
1/1/44 |
|
|
|
500,000 |
|
|
|
499,327 |
|
Series A, Refunding |
|
|
5.000 |
% |
|
|
1/1/28 |
|
|
|
500,000 |
|
|
|
529,783 |
|
Series A, Refunding |
|
|
6.000 |
% |
|
|
1/1/38 |
|
|
|
300,000 |
|
|
|
319,504 |
|
Series C, Refunding |
|
|
5.000 |
% |
|
|
1/1/25 |
|
|
|
500,000 |
|
|
|
511,427 |
|
Chicago, IL, OHare International Airport Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General Senior Lien, Series C, Refunding |
|
|
5.000 |
% |
|
|
1/1/44 |
|
|
|
500,000 |
|
|
|
525,472 |
(a) |
Senior Lien, Series G |
|
|
5.000 |
% |
|
|
1/1/42 |
|
|
|
500,000 |
|
|
|
510,500 |
(a) |
Series A, Refunding |
|
|
5.000 |
% |
|
|
1/1/31 |
|
|
|
1,500,000 |
|
|
|
1,529,780 |
(a) |
Chicago, IL, Transit Authority, Sales Tax Receipts Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien |
|
|
5.000 |
% |
|
|
12/1/51 |
|
|
|
1,000,000 |
|
|
|
1,018,874 |
|
Second Lien, Series A, Refunding |
|
|
5.000 |
% |
|
|
12/1/45 |
|
|
|
500,000 |
|
|
|
518,467 |
|
Chicago, IL, Wastewater Transmission Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien, Series A |
|
|
5.000 |
% |
|
|
1/1/47 |
|
|
|
300,000 |
|
|
|
302,535 |
|
Second Lien, Series B, Refunding |
|
|
5.000 |
% |
|
|
1/1/38 |
|
|
|
500,000 |
|
|
|
509,794 |
|
Chicago, IL, Waterworks Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien, Series 2017, Refunding |
|
|
5.000 |
% |
|
|
11/1/29 |
|
|
|
500,000 |
|
|
|
528,725 |
|
Second Lien, Series 2017-2, Refunding,
AGM |
|
|
5.000 |
% |
|
|
11/1/32 |
|
|
|
1,260,000 |
|
|
|
1,358,320 |
|
Illinois State Finance Authority, Revenue, Franciscan Communities Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series A, Refunding |
|
|
5.250 |
% |
|
|
5/15/47 |
|
|
|
130,000 |
|
|
|
130,083 |
(c) |
Series A, Refunding |
|
|
5.250 |
% |
|
|
5/15/47 |
|
|
|
870,000 |
|
|
|
844,552 |
|
Illinois State Sports Facilities Authority Revenue, Sport Facilities Project, Series 2019,
Refunding, BAM |
|
|
5.000 |
% |
|
|
6/15/29 |
|
|
|
250,000 |
|
|
|
266,856 |
|
Illinois State University, Auxiliary Facilities System Revenue, Series A, Refunding,
AGM |
|
|
5.000 |
% |
|
|
4/1/28 |
|
|
|
100,000 |
|
|
|
109,346 |
|
Illinois State, GO: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2016, Refunding |
|
|
5.000 |
% |
|
|
2/1/29 |
|
|
|
300,000 |
|
|
|
318,139 |
|
Series A |
|
|
5.000 |
% |
|
|
3/1/37 |
|
|
|
1,250,000 |
|
|
|
1,351,016 |
|
See Notes to Financial
Statements.
|
|
|
|
|
6 |
|
|
|
Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
Western Asset Municipal High Income Fund Inc.
(Percentages shown based on Fund net assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
Rate |
|
|
Maturity Date |
|
|
Face Amount |
|
|
Value |
|
Illinois
continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series A |
|
|
5.000 |
% |
|
|
3/1/46 |
|
|
$ |
500,000 |
|
|
$ |
525,068 |
|
Series A, Refunding |
|
|
5.000 |
% |
|
|
10/1/29 |
|
|
|
1,100,000 |
|
|
|
1,194,717 |
|
Series A, Refunding |
|
|
5.000 |
% |
|
|
10/1/30 |
|
|
|
550,000 |
|
|
|
596,582 |
|
Series B, Refunding |
|
|
5.000 |
% |
|
|
9/1/27 |
|
|
|
400,000 |
|
|
|
427,882 |
|
Series D |
|
|
5.000 |
% |
|
|
11/1/27 |
|
|
|
1,150,000 |
|
|
|
1,233,349 |
|
Metropolitan Pier & Exposition Authority, IL, Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
McCormick Place Expansion Project, Series A |
|
|
5.000 |
% |
|
|
6/15/57 |
|
|
|
350,000 |
|
|
|
352,331 |
|
McCormick Place Expansion Project, Series A, Refunding |
|
|
4.000 |
% |
|
|
12/15/42 |
|
|
|
750,000 |
|
|
|
688,234 |
|
McCormick Place Expansion Project, Series A, Refunding |
|
|
4.000 |
% |
|
|
12/15/47 |
|
|
|
1,000,000 |
|
|
|
883,779 |
|
McCormick Place Expansion Project, Series A, Refunding |
|
|
5.000 |
% |
|
|
6/15/50 |
|
|
|
250,000 |
|
|
|
252,793 |
|
McCormick Place Expansion Project, Series B, Refunding |
|
|
5.000 |
% |
|
|
6/15/42 |
|
|
|
1,250,000 |
|
|
|
1,284,176 |
|
Regional Transportation Authority, IL, GO, Series A, Refunding, NATL |
|
|
6.000 |
% |
|
|
7/1/29 |
|
|
|
930,000 |
|
|
|
1,055,781 |
|
Total Illinois |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24,322,507 |
|
Indiana 2.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indiana State Finance Authority Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BHI Senior Living Inc., Series A, Refunding |
|
|
4.000 |
% |
|
|
11/15/41 |
|
|
|
500,000 |
|
|
|
402,497 |
|
Marion General Hospital, Series A |
|
|
4.000 |
% |
|
|
7/1/45 |
|
|
|
200,000 |
|
|
|
194,597 |
|
Midwestern Disaster Relief, Ohio Valley Electric Corp. Project, Series A |
|
|
4.250 |
% |
|
|
11/1/30 |
|
|
|
200,000 |
|
|
|
200,325 |
|
Private Activity Ohio River Bridges East End Crossing Project, Series A |
|
|
5.000 |
% |
|
|
7/1/48 |
|
|
|
2,000,000 |
|
|
|
2,005,048 |
(a)(c) |
Valparaiso, IN, Exempt Facilities Revenue, Pratt Paper LLC Project |
|
|
7.000 |
% |
|
|
1/1/44 |
|
|
|
500,000 |
|
|
|
509,826 |
(a) |
Total Indiana |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,312,293 |
|
Iowa 1.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Iowa State Finance Authority Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Midwestern Disaster Area, Iowa Fertilizer Co. Project, Refunding |
|
|
5.000 |
% |
|
|
12/1/42 |
|
|
|
750,000 |
|
|
|
753,371 |
(d)(e) |
Midwestern Disaster Area, Iowa Fertilizer Co. Project, Refunding |
|
|
5.000 |
% |
|
|
12/1/50 |
|
|
|
700,000 |
|
|
|
695,823 |
|
Iowa State Tobacco Settlement Authority Revenue, Asset Backed Senior Bonds, Class 1,
Series A-2, Refunding |
|
|
4.000 |
% |
|
|
6/1/49 |
|
|
|
150,000 |
|
|
|
135,140 |
|
Total Iowa |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,584,334 |
|
See Notes to Financial
Statements.
|
|
|
|
|
|
|
Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
7 |
|
Schedule of investments
(unaudited) (contd)
April 30, 2023
Western Asset Municipal High Income Fund Inc.
(Percentages shown based on Fund net assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
Rate |
|
|
Maturity
Date |
|
|
Face
Amount |
|
|
Value |
|
Kentucky 1.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kentucky State PEA, Gas Supply Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series A |
|
|
4.000 |
% |
|
|
6/1/26 |
|
|
$ |
1,500,000 |
|
|
$ |
1,504,082 |
(d)(e) |
Series C |
|
|
4.000 |
% |
|
|
6/1/25 |
|
|
|
1,400,000 |
|
|
|
1,402,328 |
(d)(e) |
Total Kentucky |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,906,410 |
|
Louisiana 1.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Louisiana State PFA, Lease Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provident Group, Flagship Properties |
|
|
5.000 |
% |
|
|
7/1/42 |
|
|
|
700,000 |
|
|
|
719,219 |
|
Provident Group, Flagship Properties, Series A |
|
|
4.000 |
% |
|
|
7/1/49 |
|
|
|
500,000 |
|
|
|
452,734 |
|
St. John the Baptist Parish, LA, State Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marathon Oil Corp. Project, Series A-3,
Refunding |
|
|
2.200 |
% |
|
|
7/1/26 |
|
|
|
400,000 |
|
|
|
376,518 |
(d)(e) |
Marathon Oil Corp. Project, Series B-2,
Refunding |
|
|
2.375 |
% |
|
|
7/1/26 |
|
|
|
250,000 |
|
|
|
236,607 |
(d)(e) |
Total Louisiana |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,785,078 |
|
Maryland 0.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maryland State EDC Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Morgan State University Project |
|
|
4.250 |
% |
|
|
7/1/50 |
|
|
|
350,000 |
|
|
|
310,256 |
|
Seagirt Marine Terminal Project, Series A |
|
|
5.000 |
% |
|
|
6/1/44 |
|
|
|
400,000 |
|
|
|
411,830 |
(a) |
Maryland State Health & Higher EFA Revenue, Frederick Health System |
|
|
4.000 |
% |
|
|
7/1/40 |
|
|
|
300,000 |
|
|
|
284,595 |
|
Total Maryland |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,006,681 |
|
Massachusetts
1.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Massachusetts State DFA Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boston Medical Center, Sustainability Bonds, Series G, Refunding |
|
|
5.250 |
% |
|
|
7/1/52 |
|
|
|
500,000 |
|
|
|
525,414 |
|
Northeastern University Issue, Refunding |
|
|
5.000 |
% |
|
|
10/1/44 |
|
|
|
500,000 |
|
|
|
560,166 |
|
Wellforce Issue, Series A, Refunding |
|
|
5.000 |
% |
|
|
7/1/36 |
|
|
|
500,000 |
|
|
|
512,914 |
|
Wellforce Issue, Series A, Refunding |
|
|
5.000 |
% |
|
|
7/1/44 |
|
|
|
250,000 |
|
|
|
247,440 |
|
Total Massachusetts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,845,934 |
|
Michigan 0.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Detroit, MI, Downtown Development Authority Revenue, Catalyst Development, Series A,
Refunding, AGM |
|
|
5.000 |
% |
|
|
7/1/43 |
|
|
|
250,000 |
|
|
|
250,429 |
|
Michigan State Finance Authority Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Henry Ford Health System, Series A |
|
|
4.000 |
% |
|
|
11/15/50 |
|
|
|
400,000 |
|
|
|
362,772 |
|
Tobacco Settlement Asset Backed Senior Bonds, Series
B-1, Refunding |
|
|
5.000 |
% |
|
|
6/1/49 |
|
|
|
80,000 |
|
|
|
81,666 |
|
Michigan State Strategic Fund Limited Obligation Revenue,
I-75 Improvement Project |
|
|
5.000 |
% |
|
|
12/31/43 |
|
|
|
250,000 |
|
|
|
252,318 |
(a) |
Total Michigan |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
947,185 |
|
See Notes to Financial
Statements.
|
|
|
|
|
8 |
|
|
|
Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
Western Asset Municipal High Income Fund Inc.
(Percentages shown based on Fund net assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
Rate |
|
|
Maturity
Date |
|
|
Face
Amount |
|
|
Value |
|
Missouri 1.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Missouri State HEFA Revenue, Senior Living Facilities, Lutheran Senior Services,
Refunding |
|
|
5.000 |
% |
|
|
2/1/44 |
|
|
$ |
750,000 |
|
|
$ |
689,951 |
|
St. Louis County, MO, IDA, Senior Living Facilities Revenue, Friendship Village of Sunset
Hills, Series A |
|
|
5.875 |
% |
|
|
9/1/43 |
|
|
|
2,000,000 |
|
|
|
2,001,423 |
|
Total Missouri |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,691,374 |
|
Nebraska 0.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Omaha Public Power District, NE, Electric System Revenue, Series B, Refunding |
|
|
4.000 |
% |
|
|
2/1/46 |
|
|
|
500,000 |
|
|
|
492,721 |
|
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 |
|
|
|
295,298 |
(b) |
Charter School Lease Revenue, Somerset Academy, Series A |
|
|
5.125 |
% |
|
|
12/15/45 |
|
|
|
500,000 |
|
|
|
459,269 |
(b) |
Total Nevada |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
754,567 |
|
New Jersey 7.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gloucester County, NJ, PCFA Revenue, Keystone Urban Renewal, Logan Generating, Series A,
Refunding |
|
|
5.000 |
% |
|
|
12/1/24 |
|
|
|
185,000 |
|
|
|
186,593 |
(a)(g) |
New Jersey State EDA Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private Activity-The Goethals Bridge Replacement
Project |
|
|
5.375 |
% |
|
|
1/1/43 |
|
|
|
1,500,000 |
|
|
|
1,505,348 |
(a) |
Special Facility, Port Newark Container Terminal LLC Project, Refunding |
|
|
5.000 |
% |
|
|
10/1/37 |
|
|
|
125,000 |
|
|
|
125,584 |
(a) |
Transit Transportation Project, Series A |
|
|
5.000 |
% |
|
|
11/1/32 |
|
|
|
1,500,000 |
|
|
|
1,663,150 |
|
New Jersey State Health Care Facilities Financing Authority Revenue, Hackensack Meridian
Health, Series A, Refunding |
|
|
5.000 |
% |
|
|
7/1/38 |
|
|
|
100,000 |
|
|
|
105,986 |
|
New Jersey State Higher Education, Student Assistance Authority Revenue, Subordinated,
Series B-1 |
|
|
5.000 |
% |
|
|
12/1/44 |
|
|
|
640,000 |
|
|
|
628,455 |
(a) |
New Jersey State Transportation Trust Fund Authority Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation Program, Series AA |
|
|
5.250 |
% |
|
|
6/15/32 |
|
|
|
4,720,000 |
|
|
|
4,923,511 |
|
Transportation Program, Series BB |
|
|
5.000 |
% |
|
|
6/15/44 |
|
|
|
1,000,000 |
|
|
|
1,049,378 |
|
New Jersey State, GO, COVID-19 Emergency, Series
A |
|
|
5.000 |
% |
|
|
6/1/28 |
|
|
|
1,250,000 |
|
|
|
1,394,333 |
|
See Notes to Financial
Statements.
|
|
|
|
|
|
|
Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
9 |
|
Schedule of investments
(unaudited) (contd)
April 30, 2023
Western Asset Municipal High Income Fund Inc.
(Percentages shown based on Fund net assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
Rate |
|
|
Maturity Date |
|
|
Face Amount |
|
|
Value |
|
New Jersey
continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salem County, NJ, PCFA Revenue, Chambers Project, Series A, Refunding |
|
|
5.000 |
% |
|
|
12/1/23 |
|
|
$ |
530,000 |
|
|
$ |
532,851 |
(a)(g) |
Tobacco Settlement Financing Corp., NJ, Revenue, Series A, Refunding |
|
|
5.250 |
% |
|
|
6/1/46 |
|
|
|
150,000 |
|
|
|
156,924 |
|
Total New Jersey |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,272,113 |
|
New Mexico 0.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Santa Fe, NM, Retirement Facilities Revenue, EL Castillo Retirement Residences Project,
Series A |
|
|
5.000 |
% |
|
|
5/15/49 |
|
|
|
250,000 |
|
|
|
205,640 |
|
New York 6.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brookhaven, NY, Local Development Corp., Long Island Community Hospital Project, Series
A |
|
|
5.000 |
% |
|
|
10/1/34 |
|
|
|
735,000 |
|
|
|
807,038 |
|
Build NYC Resource Corp., NY, Revenue, East Harlem Scholars Academy Charter School
Project |
|
|
5.750 |
% |
|
|
6/1/62 |
|
|
|
300,000 |
|
|
|
302,934 |
(b) |
MTA, NY, Transportation Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Green Bonds, Series E, Refunding |
|
|
5.000 |
% |
|
|
11/15/30 |
|
|
|
250,000 |
|
|
|
271,883 |
|
Green Bonds, Series E, Refunding |
|
|
4.000 |
% |
|
|
11/15/45 |
|
|
|
250,000 |
|
|
|
236,546 |
|
Series A-2 |
|
|
5.000 |
% |
|
|
5/15/30 |
|
|
|
400,000 |
|
|
|
436,397 |
(d)(e) |
New York City, NY, GO, Subseries A-1 |
|
|
4.000 |
% |
|
|
8/1/40 |
|
|
|
750,000 |
|
|
|
751,899 |
|
New York City, NY, Industrial Development Agency Revenue, Yankee Stadium Project,
Refunding |
|
|
4.000 |
% |
|
|
3/1/45 |
|
|
|
300,000 |
|
|
|
277,818 |
|
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 |
|
|
|
477,735 |
|
New York State Liberty Development Corp., Liberty Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 World Trade Center Project, Class 1, Refunding |
|
|
5.000 |
% |
|
|
11/15/44 |
|
|
|
1,205,000 |
|
|
|
1,170,929 |
(b) |
7 World Trade Center Project, Class 3, Refunding |
|
|
3.500 |
% |
|
|
9/15/52 |
|
|
|
700,000 |
|
|
|
540,813 |
|
New York State Thruway Authority General Revenue, Junior Indebtedness Obligations, Junior
Lien, Series B |
|
|
4.000 |
% |
|
|
1/1/45 |
|
|
|
750,000 |
|
|
|
725,353 |
|
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 |
|
|
|
785,796 |
(a) |
Delta Air Lines Inc., LaGuardia Airport Terminals C and D Redevelopment Project |
|
|
4.375 |
% |
|
|
10/1/45 |
|
|
|
250,000 |
|
|
|
238,473 |
(a) |
John F. Kennedy International Airport Terminal 4 Project, Series C, Refunding |
|
|
4.000 |
% |
|
|
12/1/42 |
|
|
|
500,000 |
|
|
|
480,158 |
|
See Notes to Financial
Statements.
|
|
|
|
|
10 |
|
|
|
Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
Western Asset Municipal High Income Fund Inc.
(Percentages shown based on Fund net assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
Rate |
|
|
Maturity
Date |
|
|
Face
Amount |
|
|
Value |
|
New York
continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaGuardia Airport Terminal B Redevelopment Project, Series A |
|
|
5.000 |
% |
|
|
7/1/41 |
|
|
$ |
300,000 |
|
|
$ |
300,625 |
(a) |
LaGuardia Airport Terminal B Redevelopment Project, Series A |
|
|
5.000 |
% |
|
|
7/1/46 |
|
|
|
500,000 |
|
|
|
496,780 |
(a) |
Port Authority of New York & New Jersey Revenue, Consolidated Series 221 |
|
|
4.000 |
% |
|
|
7/15/45 |
|
|
|
1,000,000 |
|
|
|
949,348 |
(a) |
Troy Capital Resource Corp., NY, Revenue, Rensselaer Polytechnic Institute Project, Series
A, Refunding |
|
|
4.000 |
% |
|
|
9/1/40 |
|
|
|
500,000 |
|
|
|
471,152 |
|
Total New York |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,721,677 |
|
North Carolina
0.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North Carolina State Turnpike Authority, Monroe Expressway Toll Revenue, Series A,
Refunding |
|
|
5.000 |
% |
|
|
7/1/47 |
|
|
|
500,000 |
|
|
|
506,175 |
|
North Dakota 0.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grand Forks, ND, Health Care System Revenue, Altru Health System, Refunding, AGM |
|
|
3.000 |
% |
|
|
12/1/46 |
|
|
|
600,000 |
|
|
|
464,280 |
|
Ohio 1.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Buckeye, OH, Tobacco Settlement Financing Authority Revenue, Senior Bonds, Series B-2, Refunding |
|
|
5.000 |
% |
|
|
6/1/55 |
|
|
|
800,000 |
|
|
|
746,811 |
|
Ohio State Air Quality Development Authority Revenue, American Electric Co. Project,
Series B, Refunding |
|
|
2.500 |
% |
|
|
10/1/29 |
|
|
|
350,000 |
|
|
|
308,762 |
(a)(d)(e) |
Ohio State Private Activity Revenue, Portsmouth Bypass Project |
|
|
5.000 |
% |
|
|
6/30/53 |
|
|
|
700,000 |
|
|
|
690,247 |
(a) |
Total Ohio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,745,820 |
|
Oklahoma 0.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tulsa County, OK, Industrial Authority, Senior Living Community Revenue, Montereau Inc.
Project, Refunding |
|
|
5.250 |
% |
|
|
11/15/37 |
|
|
|
500,000 |
|
|
|
509,064 |
|
Oregon 0.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clackamas County, OR, Hospital Facility Authority Revenue, Senior Living, Willamette View
Project, Refunding |
|
|
5.000 |
% |
|
|
11/15/37 |
|
|
|
500,000 |
|
|
|
475,671 |
|
Pennsylvania 6.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allegheny County, PA, HDA Revenue, University Pittsburgh Medical Center, Series A,
Refunding |
|
|
4.000 |
% |
|
|
7/15/39 |
|
|
|
350,000 |
|
|
|
347,904 |
|
Commonwealth Financing Authority, PA, Tobacco Master Settlement Payment Revenue Bonds,
Series 2018 |
|
|
5.000 |
% |
|
|
6/1/33 |
|
|
|
200,000 |
|
|
|
216,847 |
|
See Notes to Financial
Statements.
|
|
|
|
|
|
|
Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
11 |
|
Schedule of investments
(unaudited) (contd)
April 30, 2023
Western Asset Municipal High Income Fund Inc.
(Percentages shown based on Fund net assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
Rate |
|
|
Maturity
Date |
|
|
Face
Amount |
|
|
Value |
|
Pennsylvania
continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumberland County, PA, Municipal Authority Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diakon Lutheran Social Ministries 2015, Refunding |
|
|
5.000 |
% |
|
|
1/1/28 |
|
|
$ |
45,000 |
|
|
$ |
46,485 |
(c) |
Diakon Lutheran Social Ministries 2015, Refunding |
|
|
5.000 |
% |
|
|
1/1/28 |
|
|
|
105,000 |
|
|
|
108,465 |
(c) |
Diakon Lutheran Social Ministries 2015, Refunding |
|
|
5.000 |
% |
|
|
1/1/28 |
|
|
|
200,000 |
|
|
|
201,829 |
|
Erie County, PA, Convention Center Authority Guaranteed Hotel Revenue, County Guaranty,
Refunding |
|
|
5.000 |
% |
|
|
1/15/36 |
|
|
|
750,000 |
|
|
|
766,052 |
|
Lancaster County, PA, Convention Center Authority Revenue, Hotel Room Rental Tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series B, Refunding |
|
|
4.000 |
% |
|
|
5/1/49 |
|
|
|
250,000 |
|
|
|
240,096 |
|
Series B, Refunding |
|
|
4.750 |
% |
|
|
5/1/57 |
|
|
|
500,000 |
|
|
|
508,778 |
|
Lancaster, PA, IDA Revenue, Willow Valley Communities Project |
|
|
5.000 |
% |
|
|
12/1/49 |
|
|
|
500,000 |
|
|
|
512,330 |
|
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 |
|
|
|
2,488,206 |
(a) |
Pennsylvania State Turnpike Commission Revenue, Subordinated, Series B, Refunding |
|
|
5.000 |
% |
|
|
6/1/39 |
|
|
|
3,170,000 |
|
|
|
3,287,878 |
|
Philadelphia, PA, Authority for IDR: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charter School Revenue, A String Theory Charter School Project |
|
|
5.000 |
% |
|
|
6/15/40 |
|
|
|
400,000 |
|
|
|
401,770 |
|
City Service Agreement Revenue, Rebuild Project |
|
|
5.000 |
% |
|
|
5/1/38 |
|
|
|
500,000 |
|
|
|
532,617 |
|
Lease Revenue, Refunding |
|
|
5.000 |
% |
|
|
10/1/30 |
|
|
|
250,000 |
|
|
|
287,231 |
|
Total Pennsylvania |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,946,488 |
|
Puerto Rico 4.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Puerto Rico Commonwealth Highway & Transportation Authority Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAB, Restructured, Series B |
|
|
0.000 |
% |
|
|
7/1/32 |
|
|
|
145,000 |
|
|
|
91,169 |
|
Restructured, Series A |
|
|
5.000 |
% |
|
|
7/1/62 |
|
|
|
160,000 |
|
|
|
154,528 |
|
Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAB, Restructured, Series A-1 |
|
|
0.000 |
% |
|
|
7/1/27 |
|
|
|
240,000 |
|
|
|
199,000 |
|
CAB, Restructured, Series A-1 |
|
|
0.000 |
% |
|
|
7/1/46 |
|
|
|
1,220,000 |
|
|
|
333,364 |
|
Restructured, Series A-1 |
|
|
4.550 |
% |
|
|
7/1/40 |
|
|
|
50,000 |
|
|
|
47,886 |
|
See Notes to Financial
Statements.
|
|
|
|
|
12 |
|
|
|
Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
Western Asset Municipal High Income Fund Inc.
(Percentages shown based on Fund net assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
Rate |
|
|
Maturity
Date |
|
|
Face
Amount |
|
|
Value |
|
Puerto Rico
continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructured, Series A-1 |
|
|
4.750 |
% |
|
|
7/1/53 |
|
|
$ |
3,020,000 |
|
|
$ |
2,831,450 |
|
Restructured, Series A-1 |
|
|
5.000 |
% |
|
|
7/1/58 |
|
|
|
880,000 |
|
|
|
849,730 |
|
Restructured, Series A-2 |
|
|
4.329 |
% |
|
|
7/1/40 |
|
|
|
530,000 |
|
|
|
494,123 |
|
Restructured, Series A-2A |
|
|
4.550 |
% |
|
|
7/1/40 |
|
|
|
1,380,000 |
|
|
|
1,321,660 |
|
Total Puerto Rico |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,322,910 |
|
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 |
|
|
|
394,919 |
|
Tennessee 0.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clarksville, TN, Water, Sewer & Gas Revenue, Series A |
|
|
4.000 |
% |
|
|
2/1/51 |
|
|
|
500,000 |
|
|
|
486,629 |
|
Tennessee State Energy Acquisition Corp., Natural Gas Revenue, Series 2018 |
|
|
4.000 |
% |
|
|
11/1/25 |
|
|
|
400,000 |
|
|
|
400,144 |
(d)(e) |
Total Tennessee |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
886,773 |
|
Texas 6.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Arlington, TX, Higher Education Finance Corp., Education Revenue, Uplift
Education, Series A |
|
|
5.000 |
% |
|
|
12/1/46 |
|
|
|
200,000 |
|
|
|
200,271 |
|
Arlington, TX, Special Tax Revenue, Subordinated Lien, Series C, BAM |
|
|
5.000 |
% |
|
|
2/15/41 |
|
|
|
500,000 |
|
|
|
510,778 |
|
Austin, TX, Airport System Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2022 |
|
|
5.000 |
% |
|
|
11/15/52 |
|
|
|
300,000 |
|
|
|
313,250 |
(a) |
Series B |
|
|
5.000 |
% |
|
|
11/15/39 |
|
|
|
600,000 |
|
|
|
635,249 |
(a) |
Central Texas Regional Mobility Authority Revenue, Senior Lien, Series B |
|
|
4.000 |
% |
|
|
1/1/51 |
|
|
|
500,000 |
|
|
|
457,453 |
|
Gulf Coast, TX, IDA, Solid Waste Disposal Revenue, Citgo Petroleum Corp. Project |
|
|
4.875 |
% |
|
|
5/1/25 |
|
|
|
1,000,000 |
|
|
|
994,281 |
(a) |
Love Field, TX, Airport Modernization Corp., General Airport Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2017 |
|
|
5.000 |
% |
|
|
11/1/33 |
|
|
|
20,000 |
|
|
|
20,877 |
(a) |
Series 2017 |
|
|
5.000 |
% |
|
|
11/1/36 |
|
|
|
20,000 |
|
|
|
20,634 |
(a) |
New Hope Cultural Education Facilities Finance Corp., TX, Retirement Facility
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MRC Crestview, Refunding |
|
|
5.000 |
% |
|
|
11/15/36 |
|
|
|
550,000 |
|
|
|
575,615 |
(c) |
Westminster Manor Project |
|
|
4.000 |
% |
|
|
11/1/49 |
|
|
|
400,000 |
|
|
|
295,352 |
|
Westminster Manor Project, Refunding |
|
|
5.000 |
% |
|
|
11/1/40 |
|
|
|
1,000,000 |
|
|
|
952,907 |
|
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 |
|
|
|
1,182,531
|
(c) |
See Notes to Financial
Statements.
|
|
|
|
|
|
|
Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
13 |
|
Schedule of investments
(unaudited) (contd)
April 30, 2023
Western Asset Municipal High Income Fund Inc.
(Percentages shown based on Fund net assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
Rate |
|
|
Maturity
Date |
|
|
Face
Amount |
|
|
Value |
|
Texas continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Newark, TX, Higher Education Finance Corp., Education Revenue, TLC Academy, Series
A |
|
|
4.000 |
% |
|
|
8/15/56 |
|
|
$ |
350,000 |
|
|
$ |
262,125 |
|
Tarrant County, TX, Cultural Education Facilities Finance Corp., Retirement Facility
Revenue, Buckner Retirement Services Inc. Project, Refunding |
|
|
5.000 |
% |
|
|
11/15/37 |
|
|
|
700,000 |
|
|
|
707,034 |
|
Texas State, Municipal Gas Acquisition & Supply Corp. I, Gas Supply Revenue,
Senior Lien, Series D |
|
|
6.250 |
% |
|
|
12/15/26 |
|
|
|
550,000 |
|
|
|
574,699 |
|
Texas State Private Activity Bond Surface Transportation Corp. Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior Lien, Blueridge Transportation Group LLC |
|
|
5.000 |
% |
|
|
12/31/40 |
|
|
|
1,000,000 |
|
|
|
1,009,112 |
(a) |
Senior Lien, Blueridge Transportation Group LLC |
|
|
5.000 |
% |
|
|
12/31/50 |
|
|
|
500,000 |
|
|
|
500,281 |
(a) |
Willacy County, TX, Jail Public Facilities Corp. Project Revenue |
|
|
7.500 |
% |
|
|
11/1/25 |
|
|
|
210,000 |
|
|
|
186,649 |
|
Total Texas |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,399,098 |
|
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 |
|
|
|
366,287 |
|
Syracuse Arts Academy Project, UT CSCE |
|
|
5.000 |
% |
|
|
4/15/42 |
|
|
|
250,000 |
|
|
|
254,718 |
|
Utah State Infrastructure Agency, Telecommunications Revenue, Series A |
|
|
5.250 |
% |
|
|
10/15/33 |
|
|
|
550,000 |
|
|
|
569,380 |
|
Total Utah |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,190,385 |
|
Virginia 1.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Virginia State Port Authority, Port Facilities Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series B, Refunding |
|
|
5.000 |
% |
|
|
7/1/41 |
|
|
|
250,000 |
|
|
|
256,615 |
(a) |
Series B, Refunding |
|
|
5.000 |
% |
|
|
7/1/45 |
|
|
|
300,000 |
|
|
|
306,418 |
(a) |
Virginia State Small Business Financing Authority Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
National Senior Campuses, Inc., Series A, Refunding |
|
|
5.000 |
% |
|
|
1/1/34 |
|
|
|
200,000 |
|
|
|
215,323 |
|
Senior Lien, 95 Express Lanes LLC Project, Refunding |
|
|
5.000 |
% |
|
|
1/1/37 |
|
|
|
1,000,000 |
|
|
|
1,045,708 |
(a) |
Senior Lien, I-495 HOT Lanes Project,
Refunding |
|
|
5.000 |
% |
|
|
12/31/47 |
|
|
|
250,000 |
|
|
|
252,194 |
(a) |
Total Virginia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,076,258 |
|
See Notes to Financial
Statements.
|
|
|
|
|
14 |
|
|
|
Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
Western Asset Municipal High Income Fund Inc.
(Percentages shown based on Fund net assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
Rate |
|
|
Maturity
Date |
|
|
Face
Amount |
|
|
Value |
|
Washington 0.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Port of Seattle, WA, Intermediate Lien Revenue, Series 2022, Refunding |
|
|
5.000 |
% |
|
|
8/1/41 |
|
|
$ |
500,000 |
|
|
$ |
537,986 |
(a) |
Washington State Health Care Facilities Authority Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commonspirit Health, Series A-1,
Refunding |
|
|
4.000 |
% |
|
|
8/1/44 |
|
|
|
535,000 |
|
|
|
503,582 |
|
Seattle Cancer Care Alliance |
|
|
4.000 |
% |
|
|
12/1/40 |
|
|
|
370,000 |
|
|
|
364,933 |
|
Total Washington |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,406,501 |
|
Wisconsin 2.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Public Finance Authority, WI, Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carmelite System Inc., Obligated Group, Series 2020, Refunding |
|
|
5.000 |
% |
|
|
1/1/40 |
|
|
|
100,000 |
|
|
|
97,782 |
|
Celanese Project, Series B, Refunding |
|
|
5.000 |
% |
|
|
12/1/25 |
|
|
|
550,000 |
|
|
|
558,618 |
(a) |
Cone Health, Series A |
|
|
5.000 |
% |
|
|
10/1/52 |
|
|
|
300,000 |
|
|
|
314,520 |
|
Public Finance Authority, WI, Student Housing Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appalachian State University Project, Series A, AGM |
|
|
4.000 |
% |
|
|
7/1/45 |
|
|
|
600,000 |
|
|
|
572,106 |
|
CHF Wilmington LLC, University of North Carolina at Wilmington Project, AGM |
|
|
5.000 |
% |
|
|
7/1/53 |
|
|
|
1,000,000 |
|
|
|
1,034,370 |
|
University of Hawaii Foundation Project, Green Bonds, Series A-1 |
|
|
4.000 |
% |
|
|
7/1/51 |
|
|
|
280,000 |
|
|
|
213,625 |
(b) |
Wisconsin State HEFA Revenue, Bellin Memorial Hospital Inc., Series A |
|
|
5.500 |
% |
|
|
12/1/52 |
|
|
|
250,000 |
|
|
|
273,407 |
|
Total Wisconsin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,064,428 |
|
Total Municipal Bonds (Cost
$149,416,290) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
147,910,107 |
|
Municipal Bonds Deposited in Tender Option Bond Trust (h) 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 |
|
|
|
1,610,761 |
|
New York State Dormitory Authority, State Personal Income Tax Revenue, Series A |
|
|
4.000 |
% |
|
|
3/15/45 |
|
|
|
1,740,000 |
|
|
|
1,717,945 |
|
Total Municipal Bonds Deposited in Tender Option
Bond Trust (Cost $3,285,630) |
|
|
|
3,328,706 |
|
Total Investments before Short-Term Investments
(Cost $152,701,920) |
|
|
|
151,238,813 |
|
See Notes to Financial
Statements.
|
|
|
|
|
|
|
Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
15 |
|
Schedule of investments
(unaudited) (contd)
April 30, 2023
Western Asset Municipal High Income Fund Inc.
(Percentages shown based on Fund net assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
Rate |
|
|
Maturity
Date |
|
|
Face
Amount |
|
|
Value |
|
Short-Term Investments 2.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds 2.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mississippi 1.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mississippi State Business Finance Corp., Gulf Opportunity Zone, IDR: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chevron USA Inc. Project, Series B |
|
|
3.750 |
% |
|
|
12/1/30 |
|
|
$ |
1,050,000 |
|
|
$ |
1,050,000 |
(i)(j) |
Chevron USA Inc. Project, Series B |
|
|
3.750 |
% |
|
|
11/1/35 |
|
|
|
100,000 |
|
|
|
100,000 |
(i)(j) |
Chevron USA Inc. Project, Series C |
|
|
3.750 |
% |
|
|
12/1/30 |
|
|
|
100,000 |
|
|
|
100,000 |
(i)(j) |
Chevron USA Inc. Project, Series G |
|
|
3.750 |
% |
|
|
11/1/35 |
|
|
|
1,175,000 |
|
|
|
1,175,000 |
(i)(j) |
Total Mississippi |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,425,000 |
|
Nevada 0.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nevada State Housing Division, Multi Unit Housing Revenue, Series A, LIQ - FNMA, LOC -
FNMA |
|
|
3.800 |
% |
|
|
4/15/33 |
|
|
|
350,000 |
|
|
|
350,000 |
(a)(i)(j) |
New York 0.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New York City, NY, TFA, Revenue Future Tax Secured, Subseries A, Refunding, SPA - TD Bank
N.A. |
|
|
3.750 |
% |
|
|
11/1/29 |
|
|
|
200,000 |
|
|
|
200,000 |
(i)(j) |
New York State Housing Finance Agency Revenue, 350 West 43rd Street, Series A LOC -
Landesbank Hessen - Thueringen |
|
|
3.720 |
% |
|
|
11/1/34 |
|
|
|
150,000 |
|
|
|
150,000 |
(a)(i)(j) |
Total New York |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
350,000 |
|
North Carolina
0.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North Carolina Educational Facilities Finance Agency Revenue, Duke University, Series
A |
|
|
3.750 |
% |
|
|
6/1/27 |
|
|
|
400,000 |
|
|
|
400,000 |
(i)(j) |
Pennsylvania 0.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pennsylvania State Turnpike Commission Revenue, Series 2020, Refunding, LOC - TD Bank
N.A. |
|
|
3.950 |
% |
|
|
12/1/39 |
|
|
|
100,000 |
|
|
|
100,000 |
(i)(j) |
Philadelphia, PA, Authority for IDR, Gift of Life Donor Program Project, LOC - TD Bank
N.A. |
|
|
4.000 |
% |
|
|
12/1/34 |
|
|
|
900,000 |
|
|
|
900,000 |
(i)(j) |
Total Pennsylvania |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,000,000 |
|
Total Municipal Bonds (Cost
$4,525,000) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,525,000 |
|
See Notes to Financial
Statements.
|
|
|
|
|
16 |
|
|
|
Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
Western Asset Municipal High Income Fund Inc.
(Percentages shown based on Fund net assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
Rate |
|
|
Shares |
|
|
Value |
|
Money Market Funds 0.0% |
|
|
|
|
|
|
|
|
|
|
|
|
Western Asset Premier Institutional Government Reserves, Premium Shares (Cost
$37,397) |
|
|
4.808 |
% |
|
|
37,397 |
|
|
$ |
37,397 |
(k)(l) |
Total Short-Term Investments (Cost
$4,562,397) |
|
|
|
|
|
|
|
4,562,397 |
|
Total Investments 100.0% (Cost
$157,264,317) |
|
|
|
|
|
|
|
155,801,210 |
|
TOB Floating Rate Notes (1.2)% |
|
|
|
|
|
|
|
|
|
|
(1,830,000 |
) |
Other Assets in Excess of Other Liabilities
1.2% |
|
|
|
|
|
|
|
|
|
|
1,781,389 |
|
Total Net Assets 100.0% |
|
|
|
|
|
|
|
|
|
$ |
155,752,599 |
|
|
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) |
The coupon payment on this security is currently in default as of April 30, 2023. |
(g) |
Bonds are generally escrowed to maturity by government securities and/or U.S. government agency securities.
|
(h) |
Represents securities deposited into a special purpose entity, referred to as a Tender Option Bond (TOB) trust
(Note 1). |
(i) |
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 Boards Short-term Obligation Rate Transparency System.
|
(j) |
Maturity date shown is the final maturity date. The security may be sold back to the issuer before final maturity.
|
(k) |
Rate shown is one-day yield as of the end of the reporting period.
|
(l) |
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 April 30, 2023, the total market value of investments in Affiliated Companies was $37,397 and
the cost was $37,397 (Note 7). |
See
Notes to Financial Statements.
|
|
|
|
|
|
|
Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
17 |
|
Schedule of investments
(unaudited) (contd)
April 30, 2023
Western Asset Municipal High Income Fund Inc.
|
|
|
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 |
|
|
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 |
|
|
TFA |
|
Transitional Finance Authority |
See Notes to Financial
Statements.
|
|
|
|
|
18 |
|
|
|
Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
Statement of assets and liabilities (unaudited)
April 30, 2023
|
|
|
|
|
|
|
Assets: |
|
|
|
|
Investments in unaffiliated securities, at value (Cost $157,226,920) |
|
$ |
155,763,813 |
|
Investments in affiliated securities, at value (Cost $37,397) |
|
|
37,397 |
|
Interest receivable |
|
|
2,399,940 |
|
Dividends receivable from affiliated investments |
|
|
250 |
|
Prepaid expenses |
|
|
348 |
|
Total Assets |
|
|
158,201,748 |
|
|
|
Liabilities: |
|
|
|
|
TOB Floating Rate Notes (Note 1) |
|
|
1,830,000 |
|
Distributions payable |
|
|
428,694 |
|
Investment management fee payable |
|
|
70,635 |
|
Interest expense payable |
|
|
18,512 |
|
Directors fees payable |
|
|
2,507 |
|
Accrued expenses |
|
|
98,801 |
|
Total Liabilities |
|
|
2,449,149 |
|
Total Net Assets |
|
$ |
155,752,599 |
|
|
|
Net Assets: |
|
|
|
|
Par value ($0.01 par value; 21,651,223 shares issued and outstanding; 500,000,000 shares
authorized) |
|
$ |
216,512 |
|
Paid-in capital in excess of par value |
|
|
163,604,428 |
|
Total distributable earnings (loss) |
|
|
(8,068,341) |
|
Total Net Assets |
|
$ |
155,752,599 |
|
|
|
Shares Outstanding |
|
|
21,651,223 |
|
|
|
Net Asset Value |
|
$ |
7.19 |
|
See Notes to Financial
Statements.
|
|
|
|
|
|
|
Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
19 |
|
Statement of operations (unaudited)
For the Six Months Ended April 30, 2023
|
|
|
|
|
|
|
Investment Income: |
|
|
|
|
Interest |
|
$ |
3,296,836 |
|
Dividends from affiliated investments |
|
|
1,076 |
|
Total Investment
Income |
|
|
3,297,912 |
|
|
|
Expenses: |
|
|
|
|
Investment management fee (Note 2) |
|
|
421,905 |
|
Interest expense (Note 1) |
|
|
29,288 |
|
Transfer agent fees |
|
|
28,124 |
|
Directors fees |
|
|
24,579 |
|
Audit and tax fees |
|
|
22,845 |
|
Legal fees |
|
|
17,368 |
|
Fund accounting fees |
|
|
11,812 |
|
Shareholder reports |
|
|
6,383 |
|
Stock exchange listing fees |
|
|
5,371 |
|
Custody fees |
|
|
936 |
|
Insurance |
|
|
505 |
|
Miscellaneous expenses |
|
|
2,920 |
|
Total Expenses |
|
|
572,036 |
|
Less: Fee waivers and/or expense reimbursements (Note 2) |
|
|
(23) |
|
Net Expenses |
|
|
572,013 |
|
Net Investment Income |
|
|
2,725,899 |
|
|
|
Realized and Unrealized Gain (Loss) on Investments (Notes 1 and 3): |
|
|
|
|
Net Realized Loss From Unaffiliated
Investment Transactions |
|
|
(319,097) |
|
Change in Net Unrealized Appreciation
(Depreciation) From Unaffiliated Investments |
|
|
8,492,577 |
|
Net Gain on Investments |
|
|
8,173,480 |
|
Increase in Net Assets From Operations |
|
$ |
10,899,379 |
|
See Notes to Financial
Statements.
|
|
|
|
|
20 |
|
|
|
Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
Statements of changes in net assets
|
|
|
|
|
|
|
|
|
For the Six Months Ended April 30, 2023 (unaudited)
and the Year Ended October 31, 2022 |
|
2023 |
|
|
2022 |
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
Net investment income |
|
$ |
2,725,899 |
|
|
$ |
5,554,930 |
|
Net realized loss |
|
|
(319,097) |
|
|
|
(2,144,016) |
|
Change in net unrealized appreciation (depreciation) |
|
|
8,492,577 |
|
|
|
(24,192,774) |
|
Increase (Decrease) in Net Assets From
Operations |
|
|
10,899,379 |
|
|
|
(20,781,860) |
|
|
|
|
Distributions to Shareholders From (Note 1): |
|
|
|
|
|
|
|
|
Total distributable earnings |
|
|
(2,572,165) |
|
|
|
(5,187,479) |
|
Decrease in Net Assets From Distributions
to Shareholders |
|
|
(2,572,165) |
|
|
|
(5,187,479) |
|
|
|
|
Fund Share Transactions: |
|
|
|
|
|
|
|
|
Reinvestment of distributions (0 and 7,553 shares issued, respectively) |
|
|
|
|
|
|
60,893 |
|
Increase in Net Assets From Fund Share
Transactions |
|
|
|
|
|
|
60,893 |
|
Increase (Decrease) in Net
Assets |
|
|
8,327,214 |
|
|
|
(25,908,446) |
|
|
|
|
Net Assets: |
|
|
|
|
|
|
|
|
Beginning of period |
|
|
147,425,385 |
|
|
|
173,333,831 |
|
End of period |
|
$ |
155,752,599 |
|
|
$ |
147,425,385 |
|
See Notes to Financial
Statements.
|
|
|
|
|
|
|
Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
21 |
|
Financial highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For a share of capital stock outstanding throughout each year ended October 31, unless otherwise noted: |
|
|
|
20231,2 |
|
|
20221 |
|
|
20211 |
|
|
20201 |
|
|
20191 |
|
|
20181 |
|
|
|
|
|
|
|
|
Net asset value, beginning of period |
|
|
$6.81 |
|
|
|
$8.01 |
|
|
|
$7.86 |
|
|
|
$8.04 |
|
|
|
$7.66 |
|
|
|
$7.93 |
|
|
|
|
|
|
|
|
Income (loss) from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
0.13 |
|
|
|
0.26 |
|
|
|
0.26 |
|
|
|
0.27 |
|
|
|
0.30 |
|
|
|
0.32 |
|
Net realized and unrealized gain (loss) |
|
|
0.37 |
|
|
|
(1.22) |
|
|
|
0.15 |
|
|
|
(0.16) |
|
|
|
0.39 |
|
|
|
(0.28) |
|
Total income (loss) from
operations |
|
|
0.50 |
|
|
|
(0.96) |
|
|
|
0.41 |
|
|
|
0.11 |
|
|
|
0.69 |
|
|
|
0.04 |
|
|
|
|
|
|
|
|
Less distributions from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.12) |
3 |
|
|
(0.24) |
|
|
|
(0.26) |
|
|
|
(0.29) |
|
|
|
(0.31) |
|
|
|
(0.31) |
|
Total
distributions |
|
|
(0.12) |
|
|
|
(0.24) |
|
|
|
(0.26) |
|
|
|
(0.29) |
|
|
|
(0.31) |
|
|
|
(0.31) |
|
|
|
|
|
|
|
|
Net asset value, end of period |
|
|
$7.19 |
|
|
|
$6.81 |
|
|
|
$8.01 |
|
|
|
$7.86 |
|
|
|
$8.04 |
|
|
|
$7.66 |
|
|
|
|
|
|
|
|
Market price, end of period |
|
|
$6.46 |
|
|
|
$6.26 |
|
|
|
$8.44 |
|
|
|
$7.19 |
|
|
|
$7.64 |
|
|
|
$6.91 |
|
Total return, based on NAV4,5 |
|
|
7.35 |
% |
|
|
(12.20) |
% |
|
|
5.25 |
% |
|
|
1.43 |
% |
|
|
9.12 |
% |
|
|
0.45 |
% |
Total return, based on Market Price6 |
|
|
5.07 |
% |
|
|
(23.25) |
% |
|
|
21.33 |
% |
|
|
(2.15) |
% |
|
|
15.20 |
% |
|
|
(3.76) |
% |
|
|
|
|
|
|
|
Net assets, end of period (millions) |
|
|
$156 |
|
|
|
$147 |
|
|
|
$173 |
|
|
|
$170 |
|
|
|
$174 |
|
|
|
$166 |
|
|
|
|
|
|
|
|
Ratios to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross expenses |
|
|
0.75 |
%7 |
|
|
0.72 |
% |
|
|
0.71 |
% |
|
|
0.71 |
% |
|
|
0.68 |
% |
|
|
0.68 |
% |
Net expenses |
|
|
0.75 |
7,8,9 |
|
|
0.72 |
8,9 |
|
|
0.71 |
8,9 |
|
|
0.71 |
8 |
|
|
0.68 |
|
|
|
0.68 |
|
Net investment income |
|
|
3.55 |
7 |
|
|
3.42 |
|
|
|
3.16 |
|
|
|
3.43 |
|
|
|
3.86 |
|
|
|
4.09 |
|
|
|
|
|
|
|
|
Portfolio turnover rate |
|
|
6 |
% |
|
|
25 |
% |
|
|
14 |
% |
|
|
27 |
% |
|
|
16 |
% |
|
|
13 |
% |
1 |
Per share amounts have been calculated using the average shares method. |
2 |
For the six months ended April 30, 2023 (unaudited). |
3 |
The actual source of the Funds current fiscal year distributions may be from net investment income, return of
capital or a combination of both. Shareholders will be informed of the tax characteristics of the distributions after the close of the fiscal year. |
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. Total returns for periods of less than one year are not annualized.
|
5 |
The total return calculation assumes that distributions are reinvested at NAV. Past performance is no guarantee of future
results. Total returns for periods of less than one year are not annualized. |
6 |
The total return calculation assumes that distributions are reinvested in accordance with the Funds dividend
reinvestment plan. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized. |
8 |
Reflects fee waivers and/or expense reimbursements. |
9 |
The manager has agreed to waive the Funds management fee to an extent sufficient to offset the net management fee
payable in connection with any investment in an affiliated money market fund. |
See Notes to Financial Statements.
|
|
|
|
|
22 |
|
|
|
Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
Notes to financial statements (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. 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. Estimates and assumptions are required to be made regarding assets, liabilities and changes in net assets resulting from operations when financial statements are prepared. Changes in the
economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ. Subsequent events have been evaluated through the date the financial statements were issued.
(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 Funds Board of Directors.
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Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
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|
|
|
23 |
|
Notes to financial statements
(unaudited) (contd)
Pursuant to policies adopted by the Board of Directors, the Funds manager has been
designated as the valuation designee and is responsible for the oversight of the daily valuation process. The Funds 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 Funds pricing policies, and reporting to the Funds 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 issuers
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.
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24 |
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Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
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 Funds 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 Funds 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 |
|
|
|
|
|
$ |
147,910,107 |
|
|
|
|
|
|
$ |
147,910,107 |
|
Municipal Bonds Deposited in Tender Option Bond Trust |
|
|
|
|
|
|
3,328,706 |
|
|
|
|
|
|
|
3,328,706 |
|
Total Long-Term Investments |
|
|
|
|
|
|
151,238,813 |
|
|
|
|
|
|
|
151,238,813 |
|
Short-Term Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
|
|
|
|
|
4,525,000 |
|
|
|
|
|
|
|
4,525,000 |
|
Money Market Funds |
|
$ |
37,397 |
|
|
|
|
|
|
|
|
|
|
|
37,397 |
|
Total Short-Term Investments |
|
|
37,397 |
|
|
|
4,525,000 |
|
|
|
|
|
|
|
4,562,397 |
|
Total Investments |
|
$ |
37,397 |
|
|
$ |
155,763,813 |
|
|
|
|
|
|
$ |
155,801,210 |
|
|
See Schedule of Investments for additional detailed categorizations. |
(b) Tender option bonds. The Fund may enter into tender option bond
(TOB) transactions and may invest in inverse floating rate instruments (Inverse Floaters) issued in TOB transactions. The Fund may participate either in structuring an Inverse Floater or purchasing an Inverse Floater in the
secondary market. When structuring an Inverse Floater, the Fund deposits securities (typically municipal bonds or other municipal securities) (the Underlying Bonds) into a special purpose entity, referred to as a TOB trust. The TOB trust
generally issues floating rate notes (Floaters) to third parties and residual interest, Inverse Floaters, to the Fund. The Floaters issued by the TOB trust have interest rates which reset weekly and provide the holders of the Floaters
the option to tender their notes back to the TOB trust for redemption at par at each reset date. The net proceeds of the sale of the Floaters, after expenses, are received by the Fund and may be invested in additional securities. The Inverse
Floaters are inverse floating rate debt instruments, as the return on those bonds is inversely related to changes in a specified interest rate. Distributions on any Inverse
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Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
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|
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|
25 |
|
Notes to financial statements
(unaudited) (contd)
Floaters paid to the Fund will be reduced or, in the extreme, eliminated as short-term interest rates rise and will increase when such interest rates fall. Floaters
issued by a TOB trust may be senior to the Inverse Floaters held by the Fund. The value and market for Inverse Floaters can be volatile, and Inverse Floaters can have limited liquidity.
An investment in an Inverse Floater structured by the Fund is accounted for as a secured borrowing. The Underlying Bonds deposited into the TOB trust are included in the
Funds Schedule of Investments and a liability for Floaters (TOB floating rate notes) issued by the TOB trust is recognized in the Funds Statement of Assets and Liabilities. The carrying amount of the TOB trusts floating rate note
obligations as reported on the Statement of Assets and Liabilities approximates its fair value. Interest income, including amortization, on the Underlying Bonds is recognized in the Funds Statements of Operations. Interest paid to holders of
the Floaters, as well as other expenses related to administration, liquidity, remarketing and trustee services of the TOB trust, are recognized in Interest expense in the Funds Statement of Operations.
(c) Credit and market risk. The Fund invests in high-yield instruments that
are subject to certain credit and market risks. The yields of high-yield obligations reflect, among other things, perceived credit and market risks. The Funds investments in securities rated below investment grade typically involve risks not
associated with higher rated securities including, among others, greater risk related to timely and ultimate payment of interest and principal, greater market price volatility and less liquid secondary market trading.
(d) Security transactions and investment income. Security transactions are
accounted for on a trade date basis. Interest income (including interest income from payment-in-kind securities), adjusted for amortization of premium and accretion of
discount, is recorded on the accrual basis. The cost of investments sold is determined by use of the specific identification method. To the extent any issuer defaults or a credit event occurs that impacts the issuer, the Fund may halt any additional
interest income accruals and consider the realizability of interest accrued up to the date of default or credit event.
(e) Distributions to shareholders. Distributions from net investment income of the Fund, if any, are declared quarterly and paid on a monthly basis. The actual
source of the Funds monthly distributions may be from net investment income, return of capital or a combination of both. Shareholders will be informed of the tax characteristics of the distributions after the close of the fiscal year. The Fund
intends to satisfy conditions that will enable interest from municipal securities, which is exempt from federal and certain state income taxes, to retain such tax-exempt status when distributed to the
shareholders of the Fund.
Distributions of net realized gains, if any, are taxable and are declared at least annually. Distributions to shareholders of the
Fund are recorded on the ex-dividend date and are determined in accordance with income tax regulations, which may differ from GAAP.
(f) Compensating balance arrangements. The Fund has an arrangement with its
custodian bank whereby a portion of the custodians fees is paid indirectly by credits earned on the Funds cash on deposit with the bank.
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26 |
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Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
(g) Federal and other taxes. It is the Funds policy to comply with
the federal income and excise tax requirements of the Internal Revenue Code of 1986 (the Code), as amended, applicable to regulated investment companies. Accordingly, the Fund intends to distribute its taxable income and net realized
gains, if any, to shareholders in accordance with timing requirements imposed by the Code. Therefore, no federal or state income tax provision is required in the Funds financial statements.
Management has analyzed the Funds tax positions taken on income tax returns for all open tax years and has concluded that as of October 31, 2022, no provision
for income tax is required in the Funds financial statements. The Funds federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by
the Internal Revenue Service and state departments of revenue.
(h) Reclassification. GAAP requires that certain components of net assets be reclassified to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share.
2. Investment management agreement and other transactions with affiliates
Legg Mason Partners Fund Advisor, LLC (LMPFA) is the Funds investment manager and Western Asset Management Company, LLC (Western Asset) is
the Funds subadviser. LMPFA and Western Asset are indirect, wholly-owned subsidiaries of Franklin Resources, Inc. (Franklin Resources).
LMPFA
provides administrative and certain oversight services to the Fund. The Fund pays an investment management fee, calculated daily and paid monthly, at an annual rate of 0.55% of the Funds average daily net assets.
LMPFA delegates to Western Asset the day-to-day portfolio management of the Fund. For its
services, LMPFA pays Western Asset monthly 70% of the net management fee it receives from the Fund.
The manager has agreed to waive the Funds management fee
to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund.
During the six months ended
April 30, 2023, fees waived and/or expenses reimbursed amounted to $23, all of which was an affiliated money market fund waiver.
All officers and one Director
of the Fund are employees of Franklin Resources or its affiliates and do not receive compensation from the Fund.
The Fund is permitted to purchase or sell
short-term variable rate demand obligations from or to certain other affiliated funds or portfolios under specified conditions outlined in procedures adopted by the Board of Directors. The procedures have been designed to provide assurance that any
purchase or sale of securities by the Fund from or to another fund or portfolio that is, or could be considered, an affiliate by virtue of having a common investment manager or subadviser (or affiliated investment manager or subadviser), common
Directors and/or common officers complies with Rule 17a-7 under the 1940 Act.
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Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
27 |
|
Notes to financial statements
(unaudited) (contd)
Further, as defined under the procedures, each transaction is effected at the current market
price. For the six months ended April 30, 2023, such purchase and sale transactions (excluding accrued interest) were $9,375,000 and $7,350,000, respectively.
3. Investments
During the six months ended April 30, 2023, the aggregate cost of purchases and proceeds from sales of
investments (excluding short-term investments) were as follows:
|
|
|
|
|
Purchases |
|
$ |
16,505,953 |
|
Sales |
|
|
8,650,303 |
|
At April 30, 2023, the aggregate cost of investments and the aggregate gross unrealized appreciation and depreciation of investments
for federal income tax purposes were substantially as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost* |
|
|
Gross
Unrealized Appreciation |
|
|
Gross
Unrealized Depreciation |
|
|
Net
Unrealized Depreciation |
|
Securities |
|
$ |
155,434,317 |
|
|
$ |
3,250,858 |
|
|
$ |
(4,713,965) |
|
|
$ |
(1,463,107) |
|
* |
Cost of investments for federal income tax purposes includes the value of Inverse Floaters issued in TOB transactions
(Note 1). |
4. Derivative instruments and hedging activities
During the six months ended April 30, 2023, the Fund did not invest in derivative instruments.
5. Distributions subsequent to April 30, 2023
The following distributions have been declared by the Funds Board of Directors and are payable subsequent to the period end of this report:
|
|
|
|
|
|
|
|
|
Record Date |
|
Payable Date |
|
|
Amount |
|
4/21/2023 |
|
|
5/1/2023 |
|
|
$ |
0.0198 |
|
5/23/2023 |
|
|
6/1/2023 |
|
|
$ |
0.0198 |
|
6/23/2023 |
|
|
7/3/2023 |
|
|
$ |
0.0198 |
|
7/24/2023 |
|
|
8/1/2023 |
|
|
$ |
0.0198 |
|
8/24/2023 |
|
|
9/1/2023 |
|
|
$ |
0.0198 |
|
6. Stock repurchase program
On November 16, 2015, the Fund announced that the Funds Board of Directors (the Board) had authorized the Fund to repurchase in the open market up
to approximately 10% of the Funds outstanding common stock when the Funds shares are trading at a discount to net asset value. The Board has directed management of the Fund to repurchase shares of common stock at such times and in such
amounts as management reasonably believes may enhance stockholder value. The Fund is under no obligation to purchase shares at any specific discount levels or in any specific amounts. During the six months ended April 30, 2023 and the year
ended October 31, 2022, the Fund did not repurchase any shares.
|
|
|
|
|
28 |
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|
Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
7. 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 all or some portion of the six months ended April 30, 2023. The following transactions were effected in such
company for the six months ended April 30, 2023.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Affiliate Value at |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 31, |
|
|
Purchased |
|
|
Sold |
|
|
2022 |
|
|
Cost |
|
|
Shares |
|
|
Proceeds |
|
|
Shares |
|
Western Asset Premier Institutional Government Reserves, Premium Shares |
|
$ |
46,898 |
|
|
$ |
518,624 |
|
|
|
518,624 |
|
|
$ |
528,125 |
|
|
|
528,125 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(contd) |
|
Realized
Gain (Loss) |
|
|
Dividend Income |
|
|
Net Increase
(Decrease) in Unrealized Appreciation
(Depreciation) |
|
|
Affiliate
Value at April 30, 2023 |
|
Western Asset Premier Institutional Government Reserves, Premium Shares |
|
|
|
|
|
$ |
1,076 |
|
|
|
|
|
|
$ |
37,397 |
|
8. Deferred capital losses
As of October 31, 2022, the Fund had deferred capital losses of $6,507,053, which have no expiration date, that will be available to offset future taxable capital
gains.
9. Recent accounting pronouncement
In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04,
Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In January 2021 and December 2022, the FASB issued ASU No. 2021-01 and ASU No. 2022-06, with further amendments to Topic 848. The amendments in the ASUs provide optional temporary accounting recognition and financial reporting relief from the effect of certain types of contract
modifications due to the planned discontinuation of the London Interbank Offered Rate (LIBOR) and other interbank-offered based reference rates as of the end of 2021 for certain LIBOR settings and 2023 for the remainder. The ASUs are effective for
certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2024. Management has reviewed the requirements and believes the adoption of these ASUs will not have a material impact
on the financial statements.
10. Other matter
The Funds investments, payment obligations, and financing terms may be based on floating rates, such as the London Interbank Offered Rate, or LIBOR,
which is the offered rate for
|
|
|
|
|
|
|
Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
29 |
|
Notes to financial statements
(unaudited) (contd)
short-term Eurodollar deposits between major international banks. On March 5, 2021, the ICE
Benchmark Administration, the administrator of LIBOR, stated that it will cease the publication of the overnight and one-, three-, six- and twelve-month USD LIBOR
settings immediately following the LIBOR publication on Friday, June 30, 2023. All other LIBOR settings, including the one-week and two-month USD LIBOR settings,
have ceased publication as of January 1, 2022. In March 2022, the U.S. federal government enacted legislation to establish a process for replacing LIBOR in certain existing contracts that do not already provide for the use of a clearly defined
or practicable replacement benchmark rate as described in the legislation. Generally speaking, for contracts that do not contain a fallback provision as described in the legislation, a benchmark replacement recommended by the Federal Reserve Board
will effectively automatically replace the USD LIBOR benchmark in the contract after June 30, 2023. The recommended benchmark replacement will be based on the Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New
York, including certain spread adjustments and benchmark replacement conforming changes. There remains uncertainty regarding the impact of the transition from LIBOR on the Funds transactions and the financial markets generally.
|
|
|
|
|
30 |
|
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|
Western Asset Municipal High Income Fund Inc. 2023 Semi-Annual Report |
Additional shareholder information (unaudited)
Results of annual meeting of shareholders
The
Annual Meeting of Shareholders of Western Asset Municipal High Income Fund Inc. was held on April 14, 2023 for the purpose of considering and voting upon the proposals presented at the Meeting. The following table provides information
concerning the matters voted upon at the Meeting:
Election of Directors
|
|
|
|
|
|
|
|
|
|
|
|
|
Nominees |
|
FOR |
|
|
WITHHELD |
|
|
ABSTAIN |
|
Robert D. Agdern |
|
|
17,896,801 |
|
|
|
579,466 |
|
|
|
365,677 |
|
Eileen A. Kamerick |
|
|
17,922,368 |
|
|
|
589,912 |
|
|
|
329,664 |
|
At April 30, 2023, in addition to Robert D. Agdern and Eileen A. Kamerick, the other Directors of the Fund were as follows:
Carol L. Colman
Daniel P. Cronin
Paolo M. Cucchi
Nisha Kumar
Jane Trust
Ratification of Selection of Independent
Registered Public Accountants
To ratify the selection of PricewaterhouseCoopers LLP (PwC) as independent registered public accountants of the
Fund for the fiscal year ended October 31, 2023.
|
|
|
|
|
|
|
|
|
FOR |
|
AGAINST |
|
|
ABSTAIN |
|
18,535,669 |
|
|
173,294 |
|
|
|
132,980 |
|
|
|
|
|
|
|
|
Western Asset Municipal High Income Fund Inc. |
|
|
|
|
31 |
|
Dividend reinvestment plan (unaudited)
Unless you elect to receive distributions in cash (i.e., opt-out), all dividends, including any capital gain dividends and return
of capital distributions, on your Common Stock will be automatically reinvested by Computershare Trust Company, N.A., as agent for the stockholders (the Plan Agent), in additional shares of Common Stock under the Funds Dividend
Reinvestment Plan (the Plan). You may elect not to participate in the Plan by contacting the Plan Agent. If you do not participate, you will receive all cash distributions paid by check mailed directly to you by Computershare Trust
Company, N.A., as dividend paying agent.
If you participate in the Plan, the number of shares of Common Stock you will receive will be determined as follows:
(1) If the market price of the Common Stock (plus $0.03 per share commission) on the payment date (or, if the payment date is not a NYSE trading day, the
immediately preceding trading day) is equal to or exceeds the net asset value per share of the Common Stock at the close of trading on the NYSE on the payment date, the Fund will issue new Common Stock at a price equal to the greater of (a) the
net asset value per share at the close of trading on the NYSE on the payment date or (b) 95% of the market price per share of the Common Stock on the payment date.
(2) If the net asset value per share of the Common Stock exceeds the market price of the Common Stock (plus $0.03 per share commission) at the close of
trading on the NYSE on the payment date, the Plan Agent will receive the dividend or distribution in cash and will buy Common Stock in the open market, on the NYSE or elsewhere, for your account as soon as practicable commencing on the trading day
following the payment date and terminating no later than the earlier of (a) 30 days after the dividend or distribution payment date, or (b) the payment date for the next succeeding dividend or distribution to be made to the stockholders; except
when necessary to comply with applicable provisions of the federal securities laws. If during this period: (i) the market price (plus $0.03 per share commission) rises so that it equals or exceeds the net asset value per share of the Common
Stock at the close of trading on the NYSE on the payment date before the Plan Agent has completed the open market purchases or (ii) if the Plan Agent is unable to invest the full amount eligible to be reinvested in open market purchases, the
Plan Agent will cease purchasing Common Stock in the open market and the Fund shall issue the remaining Common Stock at a price per share equal to the greater of (a) the net asset value per share at the close of trading on the NYSE on the day
prior to the issuance of shares for reinvestment or (b) 95% of the then current market price per share.
Common Stock in your account will be held by the Plan Agent
in non-certificated form. Any proxy you receive will include all shares of Common Stock you have received under the Plan. You may withdraw from the Plan (i.e., opt-out)
by notifying the Plan Agent in writing at P.O. Box 43006, Providence, RI 02940-3078 or by calling the Plan Agent at
1-888-888-0151. Such withdrawal will be effective immediately if notice is received by the Plan Agent not less than ten business
days prior to any dividend or distribution record date; otherwise such withdrawal will be effective as soon as practicable after the Plan Agents investment of the most recently declared dividend or distribution on the Common Stock.
|
|
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|
|
32 |
|
|
|
Western Asset Municipal High Income Fund Inc. |
Plan participants who sell their shares will be
charged a service charge (currently $5.00 per transaction) and the Plan Agent is authorized to deduct brokerage charges actually incurred from the proceeds (currently $0.05 per share commission). There is no service charge for reinvestment of your
dividends or distributions in Common Stock. However, all participants will pay a pro rata share of brokerage commissions incurred by the Plan Agent when it makes open market purchases. Because all dividends and distributions will be automatically
reinvested in additional shares of Common Stock, this allows you to add to your investment through dollar cost averaging, which may lower the average cost of your Common Stock over time. Dollar cost averaging is a technique for lowering the average
cost per share over time if the Funds net asset value declines. While dollar cost averaging has definite advantages, it cannot assure profit or protect against loss in declining markets.
Automatically reinvesting dividends and distributions does not mean that you do not have to pay income taxes due upon receiving dividends and distributions. Investors
will be subject to income tax on amounts reinvested under the Plan.
The Fund reserves the right to amend or terminate the Plan if, in the judgment of the Board of
Directors, the change is warranted. The Plan may be terminated, amended or supplemented by the Fund upon notice in writing mailed to stockholders at least 30 days prior to the record date for the payment of any dividend or distribution by the Fund
for which the termination or amendment is to be effective. Upon any termination, you will be sent cash for any fractional share of Common Stock in your account. You may elect to notify the Plan Agent in advance of such termination to have the Plan
Agent sell part or all of your Common Stock on your behalf. Additional information about the Plan and your account may be obtained from the Plan Agent at P.O. Box 43006, Providence, RI 02940-3078 or by calling the Plan Agent at 1-888-888-0151.
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Western Asset Municipal High Income Fund Inc. |
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33 |
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Western Asset
Municipal High Income Fund Inc.
Directors
Robert D. Agdern
Carol L. Colman
Daniel P. Cronin
Paolo M. Cucchi
Eileen A. Kamerick
Nisha Kumar
Jane Trust
Chairman
Officers
Jane Trust
President and Chief Executive Officer
Christopher Berarducci
Treasurer and Principal Financial Officer
Fred Jensen
Chief Compliance Officer
George P. Hoyt
Secretary and Chief Legal Officer
Thomas C. Mandia
Senior Vice President
Jeanne M. Kelly
Senior Vice President
Western Asset Municipal High Income Fund Inc.
620
Eighth Avenue
47th Floor
New York, NY 10018
Investment manager
Legg Mason Partners Fund
Advisor, LLC
Subadviser
Western Asset
Management Company, LLC
Custodian
The Bank
of New York Mellon
Transfer agent
Computershare Inc.
P.O. Box 43006
Providence, RI 02940-3078
Independent registered public
accounting firm
PricewaterhouseCoopers LLP Baltimore, MD
Legal counsel
Simpson Thacher & Bartlett LLP
900 G Street NW
Washington, DC 20001
New York Stock Exchange Symbol
MHF
Legg Mason Funds Privacy and Security Notice
Your Privacy and the Security of Your Personal Information is Very
Important to the Legg Mason Funds
This Privacy and Security Notice (the Privacy Notice) addresses the Legg Mason Funds privacy and
data protection practices with respect to nonpublic personal information the Funds receive. The Legg Mason Funds include the Western Asset Money Market Funds sold by the Funds distributor, Franklin Distributors, LLC, as well as Legg
Mason-sponsored closed-end funds. The provisions of this Privacy Notice apply to your information both while you are a shareholder and after you are no longer invested with the Funds.
The Type of Nonpublic Personal Information the Funds Collect About You
The Funds collect and maintain nonpublic personal information about you in connection with your shareholder account. Such information may include, but is not limited
to:
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Personal information included on applications or other forms; |
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Account balances, transactions, and mutual fund holdings and positions; |
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Bank account information, legal documents, and identity verification documentation; and |
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Online account access user IDs, passwords, security challenge question responses. |
How the Funds Use Nonpublic Personal Information About You
The Funds do not sell or share your nonpublic personal information with third parties or with affiliates for their marketing purposes, unless you have authorized the
Funds to do so. The Funds do not disclose any nonpublic personal information about you except as may be required to perform transactions or services you have authorized or as permitted or required by law.
The Funds may disclose information about you to:
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Employees, agents, and affiliates on a need to know basis to enable the Funds to conduct ordinary business or
to comply with obligations to government regulators; |
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Service providers, including the Funds affiliates, who assist the Funds as part of the ordinary course of business
(such as printing, mailing services, or processing or servicing your account with us) or otherwise perform services on the Funds behalf, including companies that may perform statistical analysis, market research and marketing services solely
for the Funds; |
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Permit access to transfer, whether in the United States or countries outside of the United States to such Funds
employees, agents and affiliates and service providers as required to enable the Funds to conduct ordinary business, or to comply with obligations to government regulators; |
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The Funds representatives such as legal counsel, accountants and auditors to enable the Funds to conduct ordinary
business, or to comply with obligations to government regulators; |
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Fiduciaries or representatives acting on your behalf, such as an IRA custodian or trustee of a grantor trust.
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NOT PART OF THE SEMI-ANNUAL
REPORT |
Legg Mason Funds Privacy and Security Notice (contd)
Except as otherwise permitted by applicable law, companies acting on the Funds behalf,
including those outside the United States, are contractually obligated to keep nonpublic personal information the Funds provide to them confidential and to use the information the Funds share only to provide the services the Funds ask them to
perform.
The Funds may disclose nonpublic personal information about you when necessary to enforce their rights or protect against fraud, or as permitted or
required by applicable law, such as in connection with a law enforcement or regulatory request, subpoena, or similar legal process. In the event of a corporate action or in the event a Fund service provider changes, the Funds may be required to
disclose your nonpublic personal information to third parties. While it is the Funds practice to obtain protections for disclosed information in these types of transactions, the Funds cannot guarantee their privacy policy will remain
unchanged.
Keeping You Informed of the Funds Privacy and Security Practices
The Funds will notify you annually of their privacy policy as required by federal law. While the Funds reserve the right to modify this policy at any time, they will
notify you promptly if this privacy policy changes.
The Funds Security Practices
The Funds maintain appropriate physical, electronic and procedural safeguards designed to guard your nonpublic personal information. The Funds internal data
security policies restrict access to your nonpublic personal information to authorized employees, who may use your nonpublic personal information for Fund business purposes only.
Although the Funds strive to protect your nonpublic personal information, they cannot ensure or warrant the security of any information you provide or transmit to them,
and you do so at your own risk. In the event of a breach of the confidentiality or security of your nonpublic personal information, the Funds will attempt to notify you as necessary so you can take appropriate protective steps. If you have consented
to the Funds using electronic communications or electronic delivery of statements, they may notify you under such circumstances using the most current email address you have on record with them.
In order for the Funds to provide effective service to you, keeping your account information accurate is very important. If you believe that your account information is
incomplete, not accurate or not current, if you have questions about the Funds privacy practices, or our use of your nonpublic personal information, write the Funds using the contact information on your account statements, email the Funds by
clicking on the Contact Us section of the Funds website at www.franklintempleton.com, or contact the Funds at
1-877-721-1926 for the Western Asset Money Market Funds or 1-888-777-0102 for the Legg Mason-sponsored closed-end funds.
Revised
October 2022
|
NOT PART OF THE SEMI-ANNUAL
REPORT |
Legg Mason Funds Privacy and Security Notice (contd)
Legg Mason California Consumer Privacy Act Policy
Although much of the personal information we collect is nonpublic personal information subject to federal law, residents of California may, in certain
circumstances, have additional rights under the California Consumer Privacy Act (CCPA). For example, if you are a broker, dealer, agent, fiduciary, or representative acting by or on behalf of, or for, the account of any other person(s)
or household, or a financial advisor, or if you have otherwise provided personal information to us separate from the relationship we have with personal investors, the provisions of this Privacy Policy apply to your personal information (as defined
by the CCPA).
In addition to the provisions of the Legg Mason Funds Security and Privacy Notice, you may have the right to know the categories and specific pieces
of personal information we have collected about you.
You also have the right to request the deletion of the personal information collected or maintained by the
Funds.
If you wish to exercise any of the rights you have in respect of your personal information, you should advise the Funds by contacting them as set forth
below. The rights noted above are subject to our other legal and regulatory obligations and any exemptions under the CCPA. You may designate an authorized agent to make a rights request on your behalf, subject to the identification process described
below. We do not discriminate based on requests for information related to our use of your personal information, and you have the right not to receive discriminatory treatment related to the exercise of your privacy rights.
We may request information from you in order to verify your identity or authority in making such a request. If you have appointed an authorized agent to make a request
on your behalf, or you are an authorized agent making such a request (such as a power of attorney or other written permission), this process may include providing a password/passcode, a copy of government issued identification, affidavit or other
applicable documentation, i.e. written permission. We may require you to verify your identity directly even when using an authorized agent, unless a power of attorney has been provided. We reserve the right to deny a request submitted by an agent if
suitable and appropriate proof is not provided.
For the 12-month period prior to the date of this Privacy Policy, the Legg
Mason Funds have not sold any of your personal information; nor do we have any plans to do so in the future.
Contact Information
Address: Data Privacy Officer, 100 International Dr., Baltimore, MD 21202
Email: DataProtectionOfficer@franklintempleton.com
Phone: 1-800-396-4748
Revised October 2022
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NOT PART OF THE SEMI-ANNUAL
REPORT |
Western Asset Municipal High Income Fund Inc.
Western Asset Municipal High Income Fund Inc.
620 Eighth Avenue
47th Floor New York,
NY 10018
Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940, as amended, that from time to time the Fund may purchase, at
market prices, shares of its stock.
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the
first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Funds Forms N-PORT are available on the SECs website at
www.sec.gov. To obtain information on Form N-PORT, shareholders can call the Fund at
1-888-777-0102.
Information on how the Fund
voted proxies relating to portfolio securities during the prior 12-month period ended June 30th of each year and a description of the policies and procedures that the Fund uses to determine how to vote proxies
related to portfolio transactions are available (1) without charge, upon request, by calling 1-888-777-0102, (2) at
www.franklintempleton.com and (3) on the SECs website at www.sec.gov.
Quarterly performance, semi-annual and annual reports, current net asset value and
other information regarding the Fund may be found on Franklin Templetons website, which can be accessed at www.franklintempleton.com. Any reference to Franklin Templetons website in this report is intended to allow investors public
access to information regarding the Fund and does not, and is not intended to, incorporate Franklin Templetons website in this report.
This report is
transmitted to the shareholders of Western Asset Municipal High Income Fund Inc. for their information. This is not a prospectus, circular or representation intended for use in the purchase of shares of the Fund or any securities mentioned in this
report.
Computershare Inc.
P.O. Box 43006
Providence, RI 02940-3078
WAS04050 06/23 SR23-4668
Not applicable.
ITEM 3. |
AUDIT COMMITTEE FINANCIAL EXPERT. |
Not applicable.
ITEM 4. |
PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Not applicable.
ITEM 5. |
AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable.
ITEM 6. |
SCHEDULE OF INVESTMENTS. |
Included herein under Item 1.
ITEM 7. |
DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 8. |
INVESTMENT PROFESSIONALS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
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On March 31, 2023, John Mooney became part of the portfolio management team of the Fund.
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NAME AND
ADDRESS |
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LENGTH OF
TIME SERVED |
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PRINCIPAL OCCUPATION(S) DURING
PAST 5 YEARS |
John Mooney
Western Asset 385 East
Colorado Blvd. Pasadena, CA
91101 |
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Since March 31, 2023 |
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Responsible for the day-to-day management with other members of the Funds portfolio management team; portfolio manager at Western Asset since 2005; prior to that time, Mr. Mooney was with Citigroup Asset Management,
AIG/SunAmerica, and First Investors Management Company. |
ITEM 9. |
PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS. |
Not applicable.
ITEM 10. |
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
Not applicable.
ITEM 11. |
CONTROLS AND PROCEDURES. |
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(a) |
The registrants principal executive officer and principal financial officer have concluded that the
registrants disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the 1940 Act)) are effective as of a date within 90 days of
the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934. |
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(b) |
There were no changes in the registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are likely to materially affect the registrants internal control over financial reporting.
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ITEM 12. |
DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT
INVESTMENT COMPANIES |
Not applicable.
(a) (1) Not applicable.
Exhibit
99.CODE ETH
(a) (2)
Certifications pursuant to section 302 of the Sarbanes-Oxley Act of 2002 attached hereto.
Exhibit
99.CERT
(b) Certifications pursuant to Section
906 of the Sarbanes-Oxley Act of 2002 attached hereto.
Exhibit 99.906CERT
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this
Report to be signed on its behalf by the undersigned, there unto duly authorized.
Western Asset Municipal High Income Fund Inc.
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By: |
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/s/ Jane Trust |
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Jane Trust |
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Chief Executive Officer |
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Date: |
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June 26, 2023 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940,
this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
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By: |
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/s/ Jane Trust |
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Jane Trust |
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Chief Executive Officer |
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Date: |
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June 26, 2023 |
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By: |
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/s/ Christopher Berarducci |
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Christopher Berarducci |
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Principal Financial Officer |
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Date: |
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June 26, 2023 |
CERTIFICATIONS PURSUANT TO SECTION 302
EX-99.CERT
CERTIFICATIONS
I, Jane Trust,
certify that:
1. |
I have reviewed this report on Form N-CSR of Western Asset Municipal
High Income Fund Inc.; |
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. |
Based on my knowledge, the financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the
periods presented in this report; |
4. |
The registrants other certifying officers and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule
30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
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a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is
being prepared; |
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b) |
Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles; |
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c) |
Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this
report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
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d) |
Disclosed in this report any change in the registrants internal control over financial reporting that
occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. |
The registrants other certifying officers and I have disclosed to the registrants auditors and the
audit committee of the registrants board of directors (or persons performing the equivalent functions): |
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and |
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in
the registrants internal control over financial reporting. |
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Date: June 26, 2023 |
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/s/ Jane Trust |
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Jane Trust |
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Chief Executive Officer |
CERTIFICATIONS
I, Christopher Berarducci, certify that:
1. |
I have reviewed this report on Form N-CSR of Western Asset Municipal
High Income Fund Inc.; |
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. |
Based on my knowledge, the financial information included in this report, and the financial statements on which
the financial information is based, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the
registrant as of, and for, the periods presented in this report; |
4. |
The registrants other certifying officers and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule
30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is
being prepared; |
|
b) |
Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles; |
|
c) |
Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this
report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
|
d) |
Disclosed in this report any change in the registrants internal control over financial reporting that
occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. |
The registrants other certifying officers and I have disclosed to the registrants auditors and the
audit committee of the registrants board of directors (or persons performing the equivalent functions): |
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and |
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in
the registrants internal control over financial reporting. |
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Date: June 26, 2023 |
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/s/ Christopher Berarducci |
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Christopher Berarducci |
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Principal Financial Officer |
CERTIFICATIONS PURSUANT TO SECTION 906
EX-99.906CERT
CERTIFICATION
Jane Trust, Chief
Executive Officer, and Christopher Berarducci, Principal Financial Officer of Western Asset Municipal High Income Fund Inc. (the Registrant), each certify to the best of their knowledge that:
1. The Registrants periodic report on Form N-CSR for the period ended
April 30, 2023 (the Form N-CSR) fully complies with the requirements of section 15(d) of the Securities Exchange Act of 1934, as amended; and
2. The information contained in the Form N-CSR fairly presents, in all material
respects, the financial condition and results of operations of the Registrant.
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Chief Executive Officer |
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Principal Financial Officer |
Western Asset Municipal High Income Fund Inc. |
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Western Asset Municipal High Income Fund Inc. |
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/s/ Jane Trust |
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/s/ Christopher Berarducci |
Jane Trust |
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Christopher Berarducci |
Date: June 26, 2023 |
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Date: June 26, 2023 |
This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. § 1350 and
is not being filed as part of the Form N-CSR with the Commission.
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