WESTERN ASSET OREGON MUNICIPALS FUND
Schedule of investments (unaudited) | January 31, 2024 |
(Percentages shown based on Fund net assets)
SECURITY | RATE | MATURITY DATE | FACE AMOUNT | VALUE | ||||||||||||
MUNICIPAL BONDS - 96.4% | ||||||||||||||||
Education - 15.2% | ||||||||||||||||
Oregon State Health & Science University, Revenue, Series B, Refunding | 5.000 | % | 7/1/35 | $ | 850,000 | $ | 882,569 | |||||||||
Oregon State University General Revenue, Series A | 5.000 | % | 4/1/45 | 2,000,000 | 2,027,114 | |||||||||||
University of Oregon General Revenue, Series A | 5.000 | % | 4/1/46 | 4,000,000 | 4,084,248 | |||||||||||
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Total Education | 6,993,931 | |||||||||||||||
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Health Care - 12.3% | ||||||||||||||||
Clackamas County, OR, Hospital Facility Authority Revenue, Senior Living, Willamette View Project, Refunding | 5.000 | % | 11/15/47 | 250,000 | 232,253 | |||||||||||
Medford, OR, Hospital Facilities Authority Revenue, Asante Project, Series A, Refunding | 5.000 | % | 8/15/45 | 500,000 | 527,114 | |||||||||||
Oregon State Facilities Authority Revenue: | ||||||||||||||||
Legacy Health Project, Series A, Refunding | 5.000 | % | 6/1/46 | 770,000 | 779,331 | |||||||||||
Providence Health & Services | 5.000 | % | 10/1/45 | 900,000 | 911,364 | |||||||||||
Salem, OR, Hospital Facility Authority Revenue: | ||||||||||||||||
Capital Manor Project | 4.000 | % | 5/15/40 | 500,000 | 435,093 | |||||||||||
Capital Manor Project | 5.000 | % | 5/15/43 | 630,000 | 606,556 | |||||||||||
Multi Model Salem Health Project, Series A, Refunding | 5.000 | % | 5/15/36 | 2,000,000 | 2,154,052 | |||||||||||
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Total Health Care | 5,645,763 | |||||||||||||||
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Industrial Revenue - 2.2% | ||||||||||||||||
Oregon State Business Development Commission Revenue, Recovery Zone Facility Bonds, Intel Corp. Project, Series 232 | 3.800 | % | 6/15/28 | 1,000,000 | 1,015,472 | (a)(b) | ||||||||||
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Leasing - 6.8% | ||||||||||||||||
Metro, OR, Dedicated Tax Revenue, Oregon Convention Center Hotel Project | 5.000 | % | 6/15/47 | 3,000,000 | 3,118,440 | |||||||||||
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Local General Obligation - 37.7% | ||||||||||||||||
Clackamas County, OR, School District No 12, North Clackamas, GO, Series 2018, School Bond Guaranty | 5.000 | % | 6/15/42 | 1,750,000 | 1,860,740 | |||||||||||
Clackamas County, OR, School District No 62, Oregon City, GO, Series B, School Bond Guaranty, Refunding | 5.000 | % | 6/15/43 | 1,000,000 | 1,064,867 | |||||||||||
Lane County, OR, School District No 19, Springfield, GO, CAB, Series B, School Bond Guaranty | 0.000 | % | 6/15/35 | 2,435,000 | 1,658,752 | |||||||||||
Marion County, OR, School District No 15, North Marion, GO, Series B, School Bond Guaranty | 5.000 | % | 6/15/36 | 1,000,000 | 1,095,631 |
See Notes to Schedule of Investments.
Western Asset Oregon Municipals Fund 2024 Quarterly Report |
1 |
WESTERN ASSET OREGON MUNICIPALS FUND
Schedule of investments (unaudited) (cont’d) | January 31, 2024 |
(Percentages shown based on Fund net assets)
SECURITY | RATE | MATURITY DATE | FACE AMOUNT | VALUE | ||||||||||||
Local General Obligation - (continued) | ||||||||||||||||
Multnomah & Clackamas Counties, OR, Centennial School District No 28JT, GO, School Bond Guaranty, Refunding | 5.000 | % | 6/15/45 | $ | 1,000,000 | $ | 1,079,019 | |||||||||
Multnomah County, OR, School District No 7, Reynolds, GO, Deferred Interest, Series B, School Board Guaranty | 0.000 | % | 6/15/31 | 2,000,000 | 1,487,781 | |||||||||||
Multnomah County, OR, School District No 40: | ||||||||||||||||
GO, CAB, Series A, School Board Guaranty | 0.000 | % | 6/15/30 | 425,000 | 347,568 | |||||||||||
GO, CAB, Series A, School Board Guaranty | 0.000 | % | 6/15/31 | 525,000 | 414,223 | |||||||||||
GO, CAB, Series A, School Board Guaranty | 0.000 | % | 6/15/32 | 750,000 | 570,364 | |||||||||||
Polk Marion & Benton Counties, OR, School District No 13J Central, GO, Deferred Interest, Series B, School Bond Guaranty | 0.000 | % | 6/15/33 | 2,000,000 | 1,456,232 | |||||||||||
Port of Morrow, OR, GO, Series D, Refunding | 4.000 | % | 12/1/37 | 1,395,000 | 1,407,551 | |||||||||||
Washington & Clackamas Counties, OR, School District No 23J Tigard-Tualatin, GO, Series A, School Bond Guaranty | 5.000 | % | 6/15/38 | 2,000,000 | 2,198,370 | |||||||||||
Washington, Multnomah & Yamhill Counties, OR, School District No 1J, West Union, GO, Hillsboro, School Bond Guaranty | 5.000 | % | 6/15/38 | 2,500,000 | 2,635,152 | |||||||||||
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Total Local General Obligation | 17,276,250 | |||||||||||||||
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Power - 0.4% | ||||||||||||||||
Puerto Rico Electric Power Authority Revenue: | ||||||||||||||||
Series A | 5.000 | % | 7/1/42 | 200,000 | 62,000 | *(c) | ||||||||||
Series A | 5.050 | % | 7/1/42 | 30,000 | 9,300 | *(c) | ||||||||||
Series XX | 5.250 | % | 7/1/40 | 255,000 | 79,050 | *(c) | ||||||||||
Series ZZ | — | 7/1/18 | 100,000 | 30,750 | *(d) | |||||||||||
|
| |||||||||||||||
Total Power | 181,100 | |||||||||||||||
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| |||||||||||||||
Special Tax Obligation - 2.7% | ||||||||||||||||
Keizer, OR, Special Assessment, Keizer Station Area A | 5.200 | % | 6/1/31 | 590,000 | 597,526 | |||||||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue: | ||||||||||||||||
CAB, Restructured, Series A-1 | 0.000 | % | 7/1/27 | 60,000 | 52,817 | |||||||||||
CAB, Restructured, Series A-1 | 0.000 | % | 7/1/46 | 450,000 | 140,374 | |||||||||||
Restructured, Series A-1 | 4.550 | % | 7/1/40 | 20,000 | 20,072 | |||||||||||
Restructured, Series A-1 | 4.750 | % | 7/1/53 | 200,000 | 196,454 | |||||||||||
Restructured, Series A-1 | 5.000 | % | 7/1/58 | 90,000 | 90,292 | |||||||||||
Restructured, Series A-2 | 4.329 | % | 7/1/40 | 130,000 | 129,513 | |||||||||||
|
| |||||||||||||||
Total Special Tax Obligation | 1,227,048 | |||||||||||||||
|
|
See Notes to Schedule of Investments.
2 | Western Asset Oregon Municipals Fund 2024 Quarterly Report |
WESTERN ASSET OREGON MUNICIPALS FUND
Schedule of investments (unaudited) (cont’d) | January 31, 2024 |
(Percentages shown based on Fund net assets)
SECURITY | RATE | MATURITY DATE | FACE AMOUNT | VALUE | ||||||||||||
State General Obligation - 6.2% | ||||||||||||||||
Oregon State, GO, Series A | 4.000 | % | 5/1/46 | $ | 2,500,000 | $ | 2,526,572 | |||||||||
Puerto Rico Commonwealth, GO: | ||||||||||||||||
CAB, Restructured, Series A-1 | 0.000 | % | 7/1/24 | 609 | 599 | |||||||||||
CAB, Restructured, Series A-1 | 0.000 | % | 7/1/33 | 4,837 | 3,083 | |||||||||||
Restructured, Series A-1 | 5.375 | % | 7/1/25 | 4,186 | 4,255 | |||||||||||
Restructured, Series A-1 | 5.625 | % | 7/1/27 | 4,148 | 4,384 | |||||||||||
Restructured, Series A-1 | 5.625 | % | 7/1/29 | 4,081 | 4,425 | |||||||||||
Restructured, Series A-1 | 5.750 | % | 7/1/31 | 3,964 | 4,424 | |||||||||||
Restructured, Series A-1 | 4.000 | % | 7/1/33 | 3,759 | 3,655 | |||||||||||
Restructured, Series A-1 | 4.000 | % | 7/1/35 | 123,379 | 118,022 | |||||||||||
Restructured, Series A-1 | 4.000 | % | 7/1/37 | 150,000 | 141,060 | |||||||||||
Restructured, Series A-1 | 4.000 | % | 7/1/41 | 8,943 | 8,184 | |||||||||||
Restructured, Series A-1 | 4.000 | % | 7/1/46 | 4,100 | 3,652 | |||||||||||
Subseries CW | 0.000 | % | 11/1/43 | 16,619 | 9,224 | (b) | ||||||||||
|
| |||||||||||||||
Total State General Obligation | 2,831,539 | |||||||||||||||
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| |||||||||||||||
Transportation - 7.7% | ||||||||||||||||
Port of Portland, OR, Airport Revenue: | ||||||||||||||||
Portland International Airport, Series 24B | 5.000 | % | 7/1/42 | 1,000,000 | 1,020,063 | (e) | ||||||||||
Portland International Airport, Series 25B | 5.000 | % | 7/1/49 | 1,000,000 | 1,031,748 | (e) | ||||||||||
Series 22 | 5.000 | % | 7/1/44 | 1,500,000 | 1,500,387 | (e) | ||||||||||
|
| |||||||||||||||
Total Transportation | 3,552,198 | |||||||||||||||
|
| |||||||||||||||
Water & Sewer - 5.2% | ||||||||||||||||
Clackamas River Water, OR, Water Revenue | 5.000 | % | 11/1/43 | 1,000,000 | 1,016,388 | |||||||||||
Eugene, OR, Water Utility System Revenue | 5.000 | % | 8/1/52 | 1,000,000 | 1,101,210 | |||||||||||
Puerto Rico Commonwealth Aqueduct & Sewer Authority Revenue, Senior Lien, Series A, Refunding | 5.000 | % | 7/1/47 | 250,000 | 251,215 | (f) | ||||||||||
|
| |||||||||||||||
Total Water & Sewer | 2,368,813 | |||||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS (Cost - $45,654,025) | 44,210,554 | |||||||||||||||
|
|
See Notes to Schedule of Investments.
Western Asset Oregon Municipals Fund 2024 Quarterly Report |
3 |
WESTERN ASSET OREGON MUNICIPALS FUND
Schedule of investments (unaudited) (cont’d) | January 31, 2024 |
(Percentages shown based on Fund net assets)
SECURITY | RATE | MATURITY DATE | FACE AMOUNT | VALUE | ||||||||||||
SHORT-TERM INVESTMENTS - 2.6% | ||||||||||||||||
MUNICIPAL BONDS - 2.6% | ||||||||||||||||
Health Care - 2.6% | ||||||||||||||||
Oregon State Facilities Authority Revenue: | ||||||||||||||||
Peacehealth, Series A, Refunding, LOC - U.S. Bank N.A. | 3.450 | % | 8/1/34 | $ | 100,000 | $ | 100,000 | (g)(h) | ||||||||
Peacehealth, Series B, Refunding, LOC - TD Bank N.A. | 3.150 | % | 8/1/34 | 1,100,000 | 1,100,000 | (g)(h) | ||||||||||
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TOTAL SHORT-TERM INVESTMENTS (Cost - $1,200,000) | 1,200,000 | |||||||||||||||
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| |||||||||||||||
TOTAL INVESTMENTS - 99.0% (Cost - $46,854,025) | 45,410,554 | |||||||||||||||
Other Assets in Excess of Liabilities - 1.0% | 461,298 | |||||||||||||||
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TOTAL NET ASSETS - 100.0% | $ | 45,871,852 | ||||||||||||||
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* | Non-income producing security. |
(a) | Maturity date shown represents the mandatory tender date. |
(b) | 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. |
(c) | The coupon payment on this security is currently in default as of January 31, 2024. |
(d) | The maturity principal is currently in default as of January 31, 2024. |
(e) | Income from this issue is considered a preference item for purposes of calculating the alternative minimum tax (“AMT”). |
(f) | 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 Trustees. |
(g) | Variable rate demand obligations (“VRDOs”) have a demand feature under which the Fund can tender them back to the issuer or liquidity provider on no more than 7 days notice. The interest rate generally resets on a daily or weekly basis and is determined on the specific interest rate reset date by the remarketing agent, pursuant to a formula specified in official documents for the VRDO, or set at the highest rate allowable as specified in official documents for the VRDO. VRDOs are benchmarked to the Securities Industry and Financial Markets Association (“SIFMA”) Municipal Swap Index. The SIFMA Municipal Swap Index is compiled from weekly interest rate resets of tax-exempt VRDOs reported to the Municipal Securities Rulemaking Board’s Short-term Obligation Rate Transparency System. |
(h) | Maturity date shown is the final maturity date. The security may be sold back to the issuer before final maturity. |
Abbreviation(s) used in this schedule:
CAB | — Capital Appreciation Bonds | |
GO | — General Obligation | |
LOC | — Letter of Credit |
See Notes to Schedule of Investments.
4 | Western Asset Oregon Municipals Fund 2024 Quarterly Report |
WESTERN ASSET OREGON MUNICIPALS FUND
Schedule of investments (unaudited) (cont’d) | January 31, 2024 |
At January 31, 2024, the Fund had the following open futures contracts:
Number of Contracts | Expiration Date | Notional Amount | Market Value | Unrealized Appreciation | ||||||||||||||||
Contracts to Buy: | ||||||||||||||||||||
U.S. Treasury Ultra Long-Term Bonds | 5 | 3/24 | $ | 637,695 | $ | 646,094 | $ | 8,399 |
This Schedule of Investments is unaudited and is intended to provide information about the Fund’s investments as of the date of the schedule. Other information regarding the Fund is available in the Fund’s most recent annual or semi-annual shareholder report.
See Notes to Schedule of Investments.
Western Asset Oregon Municipals Fund 2024 Quarterly Report |
5 |
Notes to Schedule of Investments (unaudited)
1. Organization and significant accounting policies
Western Asset Oregon Municipals Fund (the “Fund”) is a separate non-diversified investment series of Legg Mason Partners Income Trust (the “Trust”). The Trust, a Maryland statutory trust, is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company.
The Fund follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies (“ASC 946”). The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”), including, but not limited to, ASC 946.
(a) Investment valuation. The valuations for fixed income securities (which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and certain derivative instruments are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing services typically use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Investments in open-end funds are valued at the closing net asset value per share of each fund on the day of valuation. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded. If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the manager to be unreliable, the market price may be determined by the manager using quotations from one or more broker/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved by the Fund’s Board of Trustees.
Pursuant to policies adopted by the Board of Trustees, the Fund’s manager has been designated as the valuation designee and is responsible for the oversight of the daily valuation process. The Fund’s manager is assisted by the Global Fund Valuation Committee (the “Valuation Committee”). The Valuation Committee is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Fund’s manager and the Board of Trustees. 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.
6 | Western Asset Oregon Municipals Fund 2024 Quarterly Report |
Notes to Schedule of Investments (unaudited) (continued)
The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuer’s financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts’ research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.
For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Trustees, 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 Trustees quarterly.
The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.
GAAP establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are summarized in the three broad levels listed below:
• | Level 1 – unadjusted quoted prices in active markets for identical investments |
• | Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
• | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
Western Asset Oregon Municipals Fund 2024 Quarterly Report |
7 |
Notes to Schedule of Investments (unaudited) (continued)
The following is a summary of the inputs used in valuing the Fund’s assets carried at fair value:
ASSETS | ||||||||||||||||
DESCRIPTION | QUOTED PRICES (LEVEL 1) | OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | TOTAL | ||||||||||||
Municipal Bonds† | — | $ | 44,210,554 | — | $ | 44,210,554 | ||||||||||
Short-Term Investments† | — | 1,200,000 | — | 1,200,000 | ||||||||||||
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|
|
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|
| |||||||||
Total Investments | — | $ | 45,410,554 | — | $ | 45,410,554 | ||||||||||
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Other Financial Instruments: | ||||||||||||||||
Futures Contracts†† | $ | 8,399 | — | — | $ | 8,399 | ||||||||||
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|
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|
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| |||||||||
Total | $ | 8,399 | $ | 45,410,554 | — | $ | 45,418,953 | |||||||||
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† | See Schedule of Investments for additional detailed categorizations. |
†† | Reflects the unrealized appreciation (depreciation) of the instruments. |
8 | Western Asset Oregon Municipals Fund 2024 Quarterly Report |