Western Asset Funds NCSR Certified annual shareholder report (management investment company)

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 811-06110

Western Asset Funds, Inc.

(Exact name of registrant as specified in charter)

100 International Drive, Baltimore, MD, 21202

(Address of principal executive offices) (Zip code)

Marc A. De Oliveira

Franklin Templeton

100 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

Registrant’s telephone number, including area code: 877-6LM-FUND/656-3863

Date of fiscal year end: December 31

Date of reporting period: December 31, 2024

ITEM 1.

REPORT TO STOCKHOLDERS.

The Annual Report to Stockholders is filed herewith.


Western Asset Inflation Indexed Plus Bond Fund
Class A [WAFAX]
Annual Shareholder Report \| December 31, 2024

This annual shareholder report contains important information about Western Asset Inflation Indexed Plus Bond Fund for the period January 1, 2024, to December 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at 877-6LM-FUND/656-3863.

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class A	$90	0.90%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended December 31, 2024, Class A shares of Western Asset Inflation Indexed Plus Bond Fund returned 0.85%. The Fund compares its performance to the Bloomberg U.S. Treasury: U.S. TIPS, which returned 1.84% for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Underweight inflation-linked exposure
↑	Nominal Treasury exposure
↑	Overweight to a non-agency residential mortgage-backed security


Top detractors from performance:
↓	Overall duration stance relative to the benchmark
↓	Duration exposure sourced from dollar-denominated positions
↓	Yield curve positioning

Use of derivatives and the impact on performance:

The Fund utilized futures for duration management, which detracted from performance.

Western Asset Inflation Indexed Plus Bond Fund

PAGE 1

7821-ATSR-0225

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

The Fund’s past performance is not necessarily an indication of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

VALUE OF A $10,000 INVESTMENT ($9,575 AFTER MAXIMUM APPLICABLE SALES CHARGE) –
Class A 12/31/2014 — 12/31/2024

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended December 31, 2024


	1 Year	5 Year	10 Year
Class A	0.85	0.70	1.26
Class A (with sales charge)	-2.97	-0.17	0.82
Bloomberg U.S. Aggregate Index	1.25	-0.33	1.35
Bloomberg U.S. Treasury: U.S. TIPS	1.84	1.87	2.24

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

Performance for periods beginning prior to August 15, 2022, reflects a higher maximum sales charge in effect at that time. Performance for periods beginning after August 15, 2022, reflects the current maximum sales charge.

For current month-end performance, please call Franklin Templeton at 877-6LM-FUND/656-3863 or visit https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of December 31, 2024)


Total Net Assets	$48,627,092
Total Number of Portfolio Holdings^*	57
Total Management Fee Paid	$57,392
Portfolio Turnover Rate	7%

*	Does not include derivatives, except purchased options, if any.

Western Asset Inflation Indexed Plus Bond Fund

PAGE 2

7821-ATSR-0225

WHAT DID THE FUND INVEST IN? (as of December 31, 2024)

Portfolio Composition^*^,^† (% of Total Investments)

*	Does not include derivatives, except purchased options, if any.

†	Certain categories may represent less than 0.1%.

HOW HAS THE FUND CHANGED?

Effective August 21, 2024, the Fund’s named portfolio management team consists of Michael C. Buchanan, Amit Chopra and Frederick R. Marki.

This is a summary of certain changes to the Fund since January 1, 2024. For more complete information, you may review the Fund’s current prospectus and any applicable supplements and the Fund’s next prospectus, which we expect to be available by May 1, 2025, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at 877-6LM-FUND/656-3863 or
prospectus@franklintempleton.com.


	WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
	Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
	• prospectus • proxy voting information • financial information • holdings • tax information

HOUSEHOLDING

You will receive the Fund’s shareholder reports every six months. In addition, you will receive an annual updated summary prospectus (detail prospectus available upon request). To reduce Fund expenses, we try to identify related shareholders in a household and send only one copy of the shareholder reports and summary prospectus. This process, called “householding,” will continue indefinitely unless you instruct us otherwise. If you prefer not to have these documents householded, please call us at 877-6LM-FUND/656-3863. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Western Asset Inflation Indexed Plus Bond Fund

PAGE 3

7821-ATSR-0225

95759312951098379582104791148412000104551075810850100001005510321106871068811620124921229910699112911143210000985610318106281049411378126291338111796122561248186.09.14.50.40.0


Western Asset Inflation Indexed Plus Bond Fund
Class C [WAFCX]
Annual Shareholder Report \| December 31, 2024

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class C	$165	1.65%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended December 31, 2024, Class C shares of Western Asset Inflation Indexed Plus Bond Fund returned 0.13%. The Fund compares its performance to the Bloomberg U.S. Treasury: U.S. TIPS, which returned 1.84% for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Underweight inflation-linked exposure
↑	Nominal Treasury exposure
↑	Overweight to a non-agency residential mortgage-backed security


Top detractors from performance:
↓	Overall duration stance relative to the benchmark
↓	Duration exposure sourced from dollar-denominated positions
↓	Yield curve positioning

Use of derivatives and the impact on performance:

The Fund utilized futures for duration management, which detracted from performance.

Western Asset Inflation Indexed Plus Bond Fund

PAGE 1

7820-ATSR-0225

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Class C 12/31/2014 — 12/31/2024

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended December 31, 2024


	1 Year	5 Year	10 Year
Class C	0.13	-0.04	0.57
Class C (with sales charge)	-0.85	-0.04	0.57
Bloomberg U.S. Aggregate Index	1.25	-0.33	1.35
Bloomberg U.S. Treasury: U.S. TIPS	1.84	1.87	2.24

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at 877-6LM-FUND/656-3863 or visit https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of December 31, 2024)


Total Net Assets	$48,627,092
Total Number of Portfolio Holdings^*	57
Total Management Fee Paid	$57,392
Portfolio Turnover Rate	7%

*	Does not include derivatives, except purchased options, if any.

Western Asset Inflation Indexed Plus Bond Fund

PAGE 2

7820-ATSR-0225

WHAT DID THE FUND INVEST IN? (as of December 31, 2024)

Portfolio Composition^*^,^† (% of Total Investments)

*	Does not include derivatives, except purchased options, if any.

†	Certain categories may represent less than 0.1%.

HOW HAS THE FUND CHANGED?

Effective August 21, 2024, the Fund’s named portfolio management team consists of Michael C. Buchanan, Amit Chopra and Frederick R. Marki.


	WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
	Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
	• prospectus • proxy voting information • financial information • holdings • tax information

HOUSEHOLDING

Western Asset Inflation Indexed Plus Bond Fund

PAGE 3

7820-ATSR-0225

1000096649811100959763106061153111964103511057210586100001005510321106871068811620124921229910699112911143210000985610318106281049411378126291338111796122561248186.09.14.50.40.0


Western Asset Inflation Indexed Plus Bond Fund
Class C1 [LWICX]
Annual Shareholder Report \| December 31, 2024

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class C1	$140	1.40%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended December 31, 2024, Class C1 shares of Western Asset Inflation Indexed Plus Bond Fund returned -0.06%. The Fund compares its performance to the Bloomberg U.S. Treasury: U.S. TIPS, which returned 1.84% for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Underweight inflation-linked exposure
↑	Nominal Treasury exposure
↑	Overweight to a non-agency residential mortgage-backed security


Top detractors from performance:
↓	Overall duration stance relative to the benchmark
↓	Duration exposure sourced from dollar-denominated positions
↓	Yield curve positioning

Use of derivatives and the impact on performance:

The Fund utilized futures for duration management, which detracted from performance.

Western Asset Inflation Indexed Plus Bond Fund

PAGE 1

7835-ATSR-0225

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Class C1 12/31/2014 — 12/31/2024

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended December 31, 2024


	1 Year	5 Year	10 Year
Class C1	-0.06	0.08	0.73
Bloomberg U.S. Aggregate Index	1.25	-0.33	1.35
Bloomberg U.S. Treasury: U.S. TIPS	1.84	1.87	2.24

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at 877-6LM-FUND/656-3863 or visit https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of December 31, 2024)


Total Net Assets	$48,627,092
Total Number of Portfolio Holdings^*	57
Total Management Fee Paid	$57,392
Portfolio Turnover Rate	7%

*	Does not include derivatives, except purchased options, if any.

WHAT DID THE FUND INVEST IN? (as of December 31, 2024)

Portfolio Composition^*^,^† (% of Total Investments)

*	Does not include derivatives, except purchased options, if any.

†	Certain categories may represent less than 0.1%.

Western Asset Inflation Indexed Plus Bond Fund

PAGE 2

7835-ATSR-0225

HOW HAS THE FUND CHANGED?

Effective August 21, 2024, the Fund’s named portfolio management team consists of Michael C. Buchanan, Amit Chopra and Frederick R. Marki.


	WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
	Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
	• prospectus • proxy voting information • financial information • holdings • tax information

HOUSEHOLDING

Western Asset Inflation Indexed Plus Bond Fund

PAGE 3

7835-ATSR-0225

1000096869838101449837107181164612166105491076510759100001005510321106871068811620124921229910699112911143210000985610318106281049411378126291338111796122561248186.09.14.50.40.0


Western Asset Inflation Indexed Plus Bond Fund
Class FI [WATPX]
Annual Shareholder Report \| December 31, 2024

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class FI	$85	0.85%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended December 31, 2024, Class FI shares of Western Asset Inflation Indexed Plus Bond Fund returned 0.96%. The Fund compares its performance to the Bloomberg U.S. Treasury: U.S. TIPS, which returned 1.84% for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Underweight inflation-linked exposure
↑	Nominal Treasury exposure
↑	Overweight to a non-agency residential mortgage-backed security


Top detractors from performance:
↓	Overall duration stance relative to the benchmark
↓	Duration exposure sourced from dollar-denominated positions
↓	Yield curve positioning

Use of derivatives and the impact on performance:

The Fund utilized futures for duration management, which detracted from performance.

Western Asset Inflation Indexed Plus Bond Fund

PAGE 1

7185-ATSR-0225

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Class FI 12/31/2014 — 12/31/2024

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended December 31, 2024


	1 Year	5 Year	10 Year
Class FI	0.96	0.67	1.26
Bloomberg U.S. Aggregate Index	1.25	-0.33	1.35
Bloomberg U.S. Treasury: U.S. TIPS	1.84	1.87	2.24

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at 877-6LM-FUND/656-3863 or visit https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of December 31, 2024)


Total Net Assets	$48,627,092
Total Number of Portfolio Holdings^*	57
Total Management Fee Paid	$57,392
Portfolio Turnover Rate	7%

*	Does not include derivatives, except purchased options, if any.

WHAT DID THE FUND INVEST IN? (as of December 31, 2024)

Portfolio Composition^*^,^† (% of Total Investments)

*	Does not include derivatives, except purchased options, if any.

†	Certain categories may represent less than 0.1%.

Western Asset Inflation Indexed Plus Bond Fund

PAGE 2

7185-ATSR-0225

HOW HAS THE FUND CHANGED?

Effective August 21, 2024, the Fund’s named portfolio management team consists of Michael C. Buchanan, Amit Chopra and Frederick R. Marki.


	WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
	Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
	• prospectus • proxy voting information • financial information • holdings • tax information

HOUSEHOLDING

Western Asset Inflation Indexed Plus Bond Fund

PAGE 3

7185-ATSR-0225

10000972699341027710012109611199412541109321122811336100001005510321106871068811620124921229910699112911143210000985610318106281049411378126291338111796122561248186.09.14.50.40.0


Western Asset Inflation Indexed Plus Bond Fund
Class R [WAFRX]
Annual Shareholder Report \| December 31, 2024

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class R	$115	1.15%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended December 31, 2024, Class R shares of Western Asset Inflation Indexed Plus Bond Fund returned 0.75%. The Fund compares its performance to the Bloomberg U.S. Treasury: U.S. TIPS, which returned 1.84% for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Underweight inflation-linked exposure
↑	Nominal Treasury exposure
↑	Overweight to a non-agency residential mortgage-backed security


Top detractors from performance:
↓	Overall duration stance relative to the benchmark
↓	Duration exposure sourced from dollar-denominated positions
↓	Yield curve positioning

Use of derivatives and the impact on performance:

The Fund utilized futures for duration management, which detracted from performance.

Western Asset Inflation Indexed Plus Bond Fund

PAGE 1

7819-ATSR-0225

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Class R 12/31/2014 — 12/31/2024

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended December 31, 2024


	1 Year	5 Year	10 Year
Class R	0.75	0.40	0.95
Bloomberg U.S. Aggregate Index	1.25	-0.33	1.35
Bloomberg U.S. Treasury: U.S. TIPS	1.84	1.87	2.24

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at 877-6LM-FUND/656-3863 or visit https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of December 31, 2024)


Total Net Assets	$48,627,092
Total Number of Portfolio Holdings^*	57
Total Management Fee Paid	$57,392
Portfolio Turnover Rate	7%

*	Does not include derivatives, except purchased options, if any.

WHAT DID THE FUND INVEST IN? (as of December 31, 2024)

Portfolio Composition^*^,^† (% of Total Investments)

*	Does not include derivatives, except purchased options, if any.

†	Certain categories may represent less than 0.1%.

Western Asset Inflation Indexed Plus Bond Fund

PAGE 2

7819-ATSR-0225

HOW HAS THE FUND CHANGED?

Effective August 21, 2024, the Fund’s named portfolio management team consists of Michael C. Buchanan, Amit Chopra and Frederick R. Marki.


	WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
	Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
	• prospectus • proxy voting information • financial information • holdings • tax information

HOUSEHOLDING

Western Asset Inflation Indexed Plus Bond Fund

PAGE 3

7819-ATSR-0225

1000096979867101819882107711174612234106341090610988100001005510321106871068811620124921229910699112911143210000985610318106281049411378126291338111796122561248186.09.14.50.40.0


Western Asset Inflation Indexed Plus Bond Fund
Class I [WAIIX]
Annual Shareholder Report \| December 31, 2024

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class I	$71	0.71%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended December 31, 2024, Class I shares of Western Asset Inflation Indexed Plus Bond Fund returned 1.05%. The Fund compares its performance to the Bloomberg U.S. Treasury: U.S. TIPS, which returned 1.84% for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Underweight inflation-linked exposure
↑	Nominal Treasury exposure
↑	Overweight to a non-agency residential mortgage-backed security


Top detractors from performance:
↓	Overall duration stance relative to the benchmark
↓	Duration exposure sourced from dollar-denominated positions
↓	Yield curve positioning

Use of derivatives and the impact on performance:

The Fund utilized futures for duration management, which detracted from performance.

Western Asset Inflation Indexed Plus Bond Fund

PAGE 1

7186-ATSR-0225

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $1,000,000 INVESTMENT – Class I 12/31/2014 — 12/31/2024

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended December 31, 2024


	1 Year	5 Year	10 Year
Class I	1.05	0.96	1.56
Bloomberg U.S. Aggregate Index	1.25	-0.33	1.35
Bloomberg U.S. Treasury: U.S. TIPS	1.84	1.87	2.24

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at 877-6LM-FUND/656-3863 or visit https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of December 31, 2024)


Total Net Assets	$48,627,092
Total Number of Portfolio Holdings^*	57
Total Management Fee Paid	$57,392
Portfolio Turnover Rate	7%

*	Does not include derivatives, except purchased options, if any.

WHAT DID THE FUND INVEST IN? (as of December 31, 2024)

Portfolio Composition^*^,^† (% of Total Investments)

*	Does not include derivatives, except purchased options, if any.

†	Certain categories may represent less than 0.1%.

Western Asset Inflation Indexed Plus Bond Fund

PAGE 2

7186-ATSR-0225

HOW HAS THE FUND CHANGED?

Effective August 21, 2024, the Fund’s named portfolio management team consists of Michael C. Buchanan, Amit Chopra and Frederick R. Marki.


	WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
	Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
	• prospectus • proxy voting information • financial information • holdings • tax information

HOUSEHOLDING

Western Asset Inflation Indexed Plus Bond Fund

PAGE 3

7186-ATSR-0225

10000009750199983841036554101322211123871221860127978811181611154934116707810000001005718103245210690601069228116254612497751230454107024911294121143704100000098584010320071063074104978511384431263481133878111802241226175124855686.09.14.50.40.0


Western Asset Inflation Indexed Plus Bond Fund
Class IS [WAFSX]
Annual Shareholder Report \| December 31, 2024

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class IS	$61	0.61%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended December 31, 2024, Class IS shares of Western Asset Inflation Indexed Plus Bond Fund returned 1.15%. The Fund compares its performance to the Bloomberg U.S. Treasury: U.S. TIPS, which returned 1.84% for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Underweight inflation-linked exposure
↑	Nominal Treasury exposure
↑	Overweight to a non-agency residential mortgage-backed security


Top detractors from performance:
↓	Overall duration stance relative to the benchmark
↓	Duration exposure sourced from dollar-denominated positions
↓	Yield curve positioning

Use of derivatives and the impact on performance:

The Fund utilized futures for duration management, which detracted from performance.

Western Asset Inflation Indexed Plus Bond Fund

PAGE 1

7276-ATSR-0225

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $1,000,000 INVESTMENT – Class IS 12/31/2014 — 12/31/2024

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended December 31, 2024


	1 Year	5 Year	10 Year
Class IS	1.15	1.07	1.68
Bloomberg U.S. Aggregate Index	1.25	-0.33	1.35
Bloomberg U.S. Treasury: U.S. TIPS	1.84	1.87	2.24

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at 877-6LM-FUND/656-3863 or visit https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of December 31, 2024)


Total Net Assets	$48,627,092
Total Number of Portfolio Holdings^*	57
Total Management Fee Paid	$57,392
Portfolio Turnover Rate	7%

*	Does not include derivatives, except purchased options, if any.

WHAT DID THE FUND INVEST IN? (as of December 31, 2024)

Portfolio Composition^*^,^† (% of Total Investments)

*	Does not include derivatives, except purchased options, if any.

†	Certain categories may represent less than 0.1%.

Western Asset Inflation Indexed Plus Bond Fund

PAGE 2

7276-ATSR-0225

HOW HAS THE FUND CHANGED?

Effective August 21, 2024, the Fund’s named portfolio management team consists of Michael C. Buchanan, Amit Chopra and Frederick R. Marki.


	WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
	Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
	• prospectus • proxy voting information • financial information • holdings • tax information

HOUSEHOLDING

Western Asset Inflation Indexed Plus Bond Fund

PAGE 3

7276-ATSR-0225

100000097697310024281041823101862911197221230247129159811296651167485118093510000001005718103245210690601069228116254612497751230454107024911294121143704100000098584010320071063074104978511384431263481133878111802241226175124855686.09.14.50.40.0

ITEM 2.    CODE OF ETHICS.

The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The Board of Directors of the registrant has determined that Mr. Robert Abeles, Jr., possesses the technical attributes identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as “audit committee financial expert,” and have designated Mr. Abeles as the Audit Committee’s financial expert. Mr. Abeles is an “independent” Director pursuant to paragraph (a) (2) of Item 3 to Form N-CSR.

ITEM 4.

PRINCIPAL ACCOUNTANT FEES AND SERVICES

(a) Audit Fees. The aggregate fees billed in the last two fiscal years ending December 31, 2023 and December 31, 2024 (the “Reporting Periods”) for professional services rendered by the Registrant’s principal accountant (the “Auditor”) for the audit of the Registrant’s annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $205,236 in December 31, 2023 and in $219,051 in December 31, 2024.

(b) Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the Registrant’s financial statements were $0 in December 31, 2023 and $0 in December 31, 2024.

(c) Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning (“Tax Services”) were $30,000 in December 31, 2023 and $30,000 in December 31, 2024. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.

There were no fees billed for tax services by the Auditors to service affiliates during the Reporting Periods that required pre-approval by the Audit Committee.

(d) All Other Fees. The aggregate other fees billed in the Reporting Periods for products and services provided by the Auditor were $0 in December 31, 2023 and $0 in December 31, 2024, other than the services reported in paragraphs (a) through (c) for the Item for the Western Asset Funds, Inc.

There were no other non-audit services rendered by the Auditor to Franklin Templeton Fund Adviser, LLC (“FTFA”), and any entity controlling, controlled by or under common control with FTFA that provided ongoing services to Western Asset Funds, Inc. requiring pre-approval by the Audit Committee in the Reporting Period.

(e) Audit Committee’s pre–approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.

(1) The Charter for the Audit Committee (the “Committee”) of the Board of each registered investment company (the “Fund”) advised by FTFA or one of their affiliates (each, an “Adviser”) requires that the Committee shall approve (a) all audit and permissible non-audit services to be provided to the Fund and (b) all permissible non-audit services to be provided by the Fund’s

independent auditors to the Adviser and any Covered Service Providers if the engagement relates directly to the operations and financial reporting of the Fund. The Committee may implement policies and procedures by which such services are approved other than by the full Committee.

The Committee shall not approve non-audit services that the Committee believes may impair the independence of the auditors. As of the date of the approval of this Audit Committee Charter, permissible non-audit services include any professional services (including tax services), that are not prohibited services as described below, provided to the Fund by the independent auditors, other than those provided to the Fund in connection with an audit or a review of the financial statements of the Fund. Permissible non-audit services may not include: (i) bookkeeping or other services related to the accounting records or financial statements of the Fund; (ii) financial information systems design and implementation; (iii) appraisal or valuation services, fairness opinions or contribution-in-kind reports; (iv) actuarial services; (v) internal audit outsourcing services; (vi) management functions or human resources; (vii) broker or dealer, investment adviser or investment banking services; (viii) legal services and expert services unrelated to the audit; and (ix) any other service the Public Company Accounting Oversight Board determines, by regulation, is impermissible.

Pre-approval by the Committee of any permissible non-audit services is not required so long as: (i) the aggregate amount of all such permissible non-audit services provided to the Fund, the Adviser and any service providers controlling, controlled by or under common control with the Adviser that provide ongoing services to the Fund (“Covered Service Providers”) constitutes not more than 5% of the total amount of revenues paid to the independent auditors during the fiscal year in which the permissible non-audit services are provided to (a) the Fund, (b) the Adviser and (c) any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Fund during the fiscal year in which the services are provided that would have to be approved by the Committee; (ii) the permissible non-audit services were not recognized by the Fund at the time of the engagement to be non-audit services; and (iii) such services are promptly brought to the attention of the Committee and approved by the Committee (or its delegate(s)) prior to the completion of the audit.

(2) None of the services described in paragraphs (b) through (d) of this Item were performed in reliance on paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not applicable.

(g) Non-audit fees billed by the Auditor for services rendered to Western Asset Funds, Inc., FTFA and any entity controlling, controlled by, or under common control with FTFA that provides ongoing services to Western Asset Funds, Inc. during the reporting period were $342,635 in December 31, 2023 and $334,889 in December 31, 2024.

(h) Yes. Western Asset Funds, Inc.’s Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval), is compatible with maintaining the Accountant’s independence. All services provided by the Auditor to the Western Asset Funds, Inc. or to Service Affiliates, which were required to be pre-approved, were pre-approved as required.

(i) Not applicable.

(j) Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

The independent board members are acting as the registrant's audit committee as specified in Section 3(a)(58)(B) of the Exchange Act. The Audit Committee consists of the following Board members:

Robert Abeles, Jr

Jane F. Dasher

Anita L. DeFrantz

Susan B. Kerley

Michael Larson

Avedick B. Poladian

William E.B. Siart

JaynieM. Studenmund

Peter J. Taylor

Not applicable.

ITEM 6. SCHEDULE OF INVESTMENTS.

(a)

Please see schedule of investments contained in the Financial Statements and Financial Highlights included under Item 7 of this Form N-CSR.

(b)

Not applicable.

ITEM 7.

FINANCIAL STATEMENTS AND FINANCIAL HIGLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.

Western Asset
Inflation Indexed Plus Bond Fund

Financial Statements and Other Important Information

Annual | December 31, 2024

Table of Contents

Schedule of Investments	1
Statement of Assets and Liabilities	5
Statement of Operations	7
Statements of Changes in Net Assets	8
Financial Highlights	9
Notes to Financial Statements	16
Report of Independent Registered Public Accounting Firm	31
Important Tax Information	32
Changes in and Disagreements with Accountants	33
Results of Meeting(s) of Shareholders	33
Remuneration Paid to Directors, Officers and Others	33

franklintempleton.com

Financial Statements and Other Important Information — Annual

Schedule of Investments

December 31, 2024

Western Asset Inflation Indexed Plus Bond Fund

(Percentages shown based on Fund net assets)

Security	Rate	Maturity Date	Face Amount†	Value
U.S. Treasury Inflation Protected Securities — 84.2%
U.S. Treasury Bonds, Inflation Indexed	2.500%	1/15/29	2,205,390	$2,244,721
U.S. Treasury Bonds, Inflation Indexed	3.875%	4/15/29	4,800,450	5,150,293
U.S. Treasury Bonds, Inflation Indexed	2.125%	2/15/40	730,230	705,124
U.S. Treasury Bonds, Inflation Indexed	0.750%	2/15/42	3,492,475	2,678,215
U.S. Treasury Bonds, Inflation Indexed	1.375%	2/15/44	1,083,552	902,389
U.S. Treasury Bonds, Inflation Indexed	0.750%	2/15/45	6,032,250	4,375,057
U.S. Treasury Bonds, Inflation Indexed	0.250%	2/15/50	4,665,678	2,724,021
U.S. Treasury Bonds, Inflation Indexed	0.125%	2/15/52	1,814,320	985,621
U.S. Treasury Bonds, Inflation Indexed	1.500%	2/15/53	743,351	595,941
U.S. Treasury Notes, Inflation Indexed	0.125%	10/15/26	3,234,532	3,145,202
U.S. Treasury Notes, Inflation Indexed	0.125%	4/15/27	5,590,000	5,359,029
U.S. Treasury Notes, Inflation Indexed	0.875%	1/15/29	3,875,434	3,701,090
U.S. Treasury Notes, Inflation Indexed	0.250%	7/15/29	1,727,684	1,600,615
U.S. Treasury Notes, Inflation Indexed	1.625%	10/15/29	501,600	493,330
U.S. Treasury Notes, Inflation Indexed	0.125%	1/15/30	2,944,584	2,675,302
U.S. Treasury Notes, Inflation Indexed	0.125%	1/15/32	1,138,750	987,532
U.S. Treasury Notes, Inflation Indexed	1.125%	1/15/33	1,589,580	1,462,711
U.S. Treasury Notes, Inflation Indexed	1.750%	1/15/34	1,232,292	1,181,764

Total U.S. Treasury Inflation Protected Securities (Cost — $47,003,019)				40,967,957
Corporate Bonds & Notes — 9.0%
Energy — 5.5%
Energy Equipment & Services — 0.0%††
Halliburton Co., Senior Notes	3.800%	11/15/25	5,000	4,960
Oil, Gas & Consumable Fuels — 5.5%
Apache Corp., Senior Notes	4.750%	4/15/43	150,000	119,906
BP Capital Markets America Inc., Senior Notes	3.588%	4/14/27	410,000	400,904
Columbia Pipelines Holding Co. LLC, Senior Notes	6.042%	8/15/28	130,000	133,155 (a)
Devon Energy Corp., Senior Notes	5.850%	12/15/25	490,000	493,466
Ecopetrol SA, Senior Notes	4.625%	11/2/31	200,000	166,016
Energy Transfer LP, Senior Notes	2.900%	5/15/25	30,000	29,774
Energy Transfer LP, Senior Notes	5.250%	4/15/29	120,000	120,517
EQT Corp., Senior Notes	5.000%	1/15/29	120,000	118,363
Exxon Mobil Corp., Senior Notes	3.043%	3/1/26	90,000	88,628
Kinder Morgan Inc., Senior Notes	4.300%	6/1/25	170,000	169,637
Occidental Petroleum Corp., Senior Notes	5.550%	3/15/26	110,000	110,506
Occidental Petroleum Corp., Senior Notes	3.000%	2/15/27	130,000	124,193
Occidental Petroleum Corp., Senior Notes	3.500%	8/15/29	240,000	220,277
ONEOK Inc., Senior Notes	5.800%	11/1/30	110,000	113,426
Targa Resources Corp., Senior Notes	4.200%	2/1/33	130,000	118,123

See Notes to Financial Statements.

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

Schedule of Investments (cont’d)

December 31, 2024

Western Asset Inflation Indexed Plus Bond Fund

(Percentages shown based on Fund net assets)

Security	Rate	Maturity Date	Face Amount†	Value

Oil, Gas & Consumable Fuels — continued
Western Midstream Operating LP, Senior Notes	3.100%	2/1/25	120,000	$119,875
Total Oil, Gas & Consumable Fuels				2,646,766

Total Energy				2,651,726
Materials — 3.5%
Metals & Mining — 3.0%
Anglo American Capital PLC, Senior Notes	4.000%	9/11/27	280,000	272,551 (a)
Antofagasta PLC, Senior Notes	2.375%	10/14/30	340,000	285,483 (a)
ArcelorMittal SA, Senior Notes	7.000%	10/15/39	140,000	149,545
Glencore Funding LLC, Senior Notes	4.000%	3/27/27	140,000	137,326 (a)
Southern Copper Corp., Senior Notes	5.250%	11/8/42	440,000	398,104
Yamana Gold Inc., Senior Notes	4.625%	12/15/27	230,000	226,159
Total Metals & Mining				1,469,168
Paper & Forest Products — 0.5%
Inversiones CMPC SA, Senior Notes	4.375%	4/4/27	240,000	236,143 (b)

Total Materials				1,705,311
Total Corporate Bonds & Notes (Cost — $4,512,131)				4,357,037
Collateralized Mortgage Obligations(c) — 4.4%
Benchmark Mortgage Trust, 2023-B38 A4	5.525%	4/15/56	130,000	132,451
BLP Commercial Mortgage Trust, 2023-IND A (1 mo. Term SOFR + 1.692%)	6.089%	3/15/40	330,000	331,179 (a)(d)
BX Trust, 2022-VAMF A (1 mo. Term SOFR + 0.850%)	5.247%	1/15/39	190,000	189,615 (a)(d)
Citigroup Commercial Mortgage Trust, 2023-SMRT A	5.820%	10/12/40	230,000	233,943 (a)(d)
CSMC Trust, 2019-AFC1 A3	3.877%	7/25/49	139,931	134,122 (a)
Deephaven Residential Mortgage Trust, 2022-1 A2	2.961%	1/25/67	210,000	166,337 (a)(d)
Ellington Financial Mortgage Trust, 2022-1 A2	3.001%	1/25/67	120,000	87,767 (a)(d)
Federal Home Loan Mortgage Corp. (FHLMC) REMIC, Structured Agency Credit Risk Trust, 2021-DNA6 M2 (30 Day Average SOFR + 1.500%)	6.069%	10/25/41	190,000	191,216 (a)(d)
Federal Home Loan Mortgage Corp. (FHLMC) REMIC, Structured Agency Credit Risk Trust, 2022-DNA2 M1B (30 Day Average SOFR + 2.400%)	6.969%	2/25/42	200,000	204,882 (a)(d)
Federal Home Loan Mortgage Corp. (FHLMC) REMIC, Structured Agency Credit Risk Trust, 2022-DNA3 M1A (30 Day Average SOFR + 2.000%)	6.569%	4/25/42	98,175	99,458 (a)(d)
La Quinta Mortgage Trust, 2023-LAQ A (1 mo. Term SOFR + 2.091%)	6.489%	3/15/36	30,526	30,655 (a)(d)
Morgan Stanley Bank of America Merrill Lynch Trust, 2016-C32 A3	3.459%	12/15/49	189,679	185,279

See Notes to Financial Statements.

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

Western Asset Inflation Indexed Plus Bond Fund

(Percentages shown based on Fund net assets)

Security	Rate	Maturity Date	Face Amount†	Value
Collateralized Mortgage Obligations(c) — continued
WaMu Mortgage Pass-Through Certificates Trust, 2005-AR4 A5	4.547%	4/25/35	145,780	$140,242 (d)

Total Collateralized Mortgage Obligations (Cost — $2,193,352)				2,127,146
Non-U.S. Treasury Inflation Protected Securities — 0.4%
United Kingdom — 0.4%
United Kingdom Inflation-Linked Gilt, Bonds (Cost — $282,516)	0.125%	3/22/68	312,936 GBP	203,864

Asset-Backed Securities — 0.0%††
Bear Stearns Asset Backed Securities Trust, 2003- ABF1 A (1 mo. Term SOFR + 0.854%) (Cost — $4,415)	5.193%	1/25/34	4,482	4,362 (d)
Total Investments — 98.0% (Cost — $53,995,433)				47,660,366
Other Assets in Excess of Liabilities — 2.0%				966,726
Total Net Assets — 100.0%				$48,627,092

†	Face amount denominated in U.S. dollars, unless otherwise noted.
††	Represents less than 0.1%.
(a)	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.
(b)	Security is exempt from registration under Regulation S of the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States. This security has been deemed liquid pursuant to guidelines approved by the Board of Directors.
(c)	Collateralized mortgage obligations are secured by an underlying pool of mortgages or mortgage pass-through certificates that are structured to direct payments on underlying collateral to different series or classes of the obligations. The interest rate may change positively or inversely in relation to one or more interest rates, financial indices or other financial indicators and may be subject to an upper and/or lower limit.
(d)	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.

Abbreviation(s) used in this schedule:
GBP	—	British Pound
REMIC	—	Real Estate Mortgage Investment Conduit
SOFR	—	Secured Overnight Financing Rate

See Notes to Financial Statements.

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

Schedule of Investments (cont’d)

December 31, 2024

Western Asset Inflation Indexed Plus Bond Fund

At December 31, 2024, the Fund had the following open futures contracts:

	Number of Contracts	Expiration Date	Notional Amount	Market Value	Unrealized Appreciation (Depreciation)
Contracts to Buy:
U.S. Treasury 5-Year Notes	12	3/25	$1,283,208	$1,275,656	$(7,552 )
U.S. Treasury 10-Year Notes	4	3/25	439,382	435,000	(4,382 )
					(11,934 )
Contracts to Sell:
U.S. Treasury Ultra Long-Term Bonds	26	3/25	3,232,221	3,091,563	140,658
Net unrealized appreciation on open futures contracts					$128,724

At December 31, 2024, the Fund had the following open forward foreign currency contracts:

Currency Purchased		Currency Sold		Counterparty	Settlement Date	Unrealized Appreciation
USD	2,863	EUR	2,597	Bank of America N.A.	1/16/25	$171
USD	278,582	GBP	212,685	Bank of America N.A.	1/16/25	12,358
Net unrealized appreciation on open forward foreign currency contracts						$12,529

Abbreviation(s) used in this table:
EUR	—	Euro
GBP	—	British Pound
USD	—	United States Dollar

See Notes to Financial Statements.

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

Statement of Assets and Liabilities

December 31, 2024

Assets:
Investments, at value (Cost — $53,995,433)	$47,660,366
Foreign currency, at value (Cost — $16,170)	15,453
Cash	721,592
Interest receivable	204,754
Deposits with brokers for open futures contracts	158,765
Unrealized appreciation on forward foreign currency contracts	12,529
Receivable from brokers — net variation margin on open futures contracts	9,655
Receivable for Fund shares sold	8,865
Dividends receivable from affiliated investments	105
Prepaid expenses	36,253
Total Assets	48,828,337
Liabilities:
Payable for Fund shares repurchased	94,231
Audit and tax fees payable	50,740
Fund accounting fees payable	34,590
Shareholder reports payable	10,313
Service and/or distribution fees payable	2,207
Investment management fee payable	1,871
Directors’ fees payable	453
Accrued expenses	6,840
Total Liabilities	201,245
Total Net Assets	$48,627,092
Net Assets:
Par value (Note 7)	$5,219
Paid-in capital in excess of par value	69,161,196
Total distributable earnings (loss)	(20,539,323 )
Total Net Assets	$48,627,092

See Notes to Financial Statements.

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

Statement of Assets and Liabilities (cont’d)

December 31, 2024

Net Assets:
Class A	$7,663,092
Class C	$584,932
Class C1	$307
Class FI	$96,592
Class R	$19,042
Class I	$6,337,306
Class IS	$33,925,821
Shares Outstanding:
Class A	834,569
Class C	65,956
Class C1	33
Class FI	10,604
Class R	2,107
Class I	681,863
Class IS	3,623,573
Net Asset Value:
Class A (and redemption price)	$9.18
Class C*	$8.87
Class C1 (and redemption price)	$9.30
Class FI (and redemption price)	$9.11
Class R (and redemption price)	$9.04
Class I (and redemption price)	$9.29
Class IS (and redemption price)	$9.36
Maximum Public Offering Price Per Share:
Class A (based on maximum initial sales charge of 3.75%)	$9.54

*	Redemption price per share is NAV of Class C shares reduced by a 1.00% CDSC if shares are redeemed within one year from purchase payment (Note 2).

See Notes to Financial Statements.

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

Statement of Operations

For the Year Ended December 31, 2024

Investment Income:
Interest	$1,911,144
Dividends from affiliated investments	275
Less: Foreign taxes withheld	(441 )
Total Investment Income	1,910,978
Expenses:
Investment management fee (Note 2)	110,521
Registration fees	108,156
Fund accounting fees	67,796
Audit and tax fees	52,740
Service and/or distribution fees (Notes 2 and 5)	31,676
Transfer agent fees (Notes 2 and 5)	18,531
Shareholder reports	16,200
Legal fees	7,628
Directors’ fees	3,723
Fees recaptured by investment manager (Note 2)	3,709
Commitment fees (Note 9)	480
Custody fees	278
Insurance	228
Miscellaneous expenses	12,755
Total Expenses	434,421
Less: Fee waivers and/or expense reimbursements (Notes 2 and 5)	(53,129 )
Net Expenses	381,292
Net Investment Income	1,529,686
Realized and Unrealized Gain (Loss) on Investments, Futures Contracts, Forward Foreign Currency Contracts and Foreign Currency Transactions (Notes 1, 3 and 4):
Net Realized Gain (Loss) From:
Investment transactions in unaffiliated securities	(1,916,020 )
Futures contracts	60,385
Forward foreign currency contracts	(18,285 )
Foreign currency transactions	114
Net Realized Loss	(1,873,806 )
Change in Net Unrealized Appreciation (Depreciation) From:
Investments in unaffiliated securities	790,817
Futures contracts	165,451
Forward foreign currency contracts	23,828
Foreign currencies	(1,154 )
Change in Net Unrealized Appreciation (Depreciation)	978,942
Net Loss on Investments, Futures Contracts, Forward Foreign Currency Contracts and Foreign Currency Transactions	(894,864 )
Increase in Net Assets From Operations	$634,822

See Notes to Financial Statements.

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

Statements of Changes in Net Assets

For the Years Ended December 31,	2024	2023
Operations:
Net investment income	$1,529,686	$2,316,099
Net realized loss	(1,873,806 )	(6,304,100 )
Change in net unrealized appreciation (depreciation)	978,942	6,497,887
Increase in Net Assets From Operations	634,822	2,509,886
Distributions to Shareholders From (Notes 1 and 6):
Total distributable earnings	(1,818,121 )	(2,030,022 )
Decrease in Net Assets From Distributions to Shareholders	(1,818,121 )	(2,030,022 )
Fund Share Transactions (Note 7):
Net proceeds from sale of shares	10,016,895	11,976,089
Reinvestment of distributions	1,783,626	1,988,336
Cost of shares repurchased	(25,167,673 )	(49,374,984 )
Decrease in Net Assets From Fund Share Transactions	(13,367,152 )	(35,410,559 )
Decrease in Net Assets	(14,550,451 )	(34,930,695 )
Net Assets:
Beginning of year	63,177,543	98,108,238
End of year	$48,627,092	$63,177,543

See Notes to Financial Statements.

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

Financial Highlights

For a share of capital stock outstanding throughout each year ended December 31:
Class A Shares1	2024	2023	2022	2021	2020
Net asset value, beginning of year	$9.40	$9.37	$11.44	$12.29	$11.34
Income (loss) from operations:
Net investment income	0.24	0.24	0.53	0.47	0.13
Net realized and unrealized gain (loss)	(0.16 )	0.03	(1.99 )	0.06	0.95
Total income (loss) from operations	0.08	0.27	(1.46)	0.53	1.08
Less distributions from:
Net investment income	(0.30 )	(0.24 )	(0.61 )	(0.59 )	(0.13 )
Net realized gains	—	—	—	(0.79 )	—
Total distributions	(0.30 )	(0.24 )	(0.61 )	(1.38 )	(0.13 )
Net asset value, end of year	$9.18	$9.40	$9.37	$11.44	$12.29
Total return2	0.85 %	2.90 %	(12.88 )%	4.50 %	9.58 %
Net assets, end of year (000s)	$7,663	$10,283	$19,810	$10,798	$8,749
Ratios to average net assets:
Gross expenses	1.02 %	0.90 %	0.84 %	0.75 %	0.65 %
Net expenses3,4	0.90	0.88	0.82	0.75	0.65
Net investment income	2.57	2.58	5.18	3.83	1.11
Portfolio turnover rate	7 %	19 %	39 %	80 %5	23 %

1	Per share amounts have been calculated using the average shares method.
2	Performance figures, exclusive of sales charges, may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results.
3	Reflects fee waivers and/or expense reimbursements.
4	As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage commissions, taxes, extraordinary expenses, deferred organizational expenses and acquired fund fees and expenses, to average net assets of Class A shares did not exceed 0.90%. This expense limitation arrangement cannot be terminated prior to December 31, 2026 without the Board of Directors’ consent. In addition, the manager has agreed to waive the Fund’s management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund.
5	Excludes securities delivered as a result of a redemption in-kind.

See Notes to Financial Statements.

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

Financial Highlights (cont’d)

For a share of capital stock outstanding throughout each year ended December 31:
Class C Shares1	2024	2023	2022	2021	2020
Net asset value, beginning of year	$9.08	$9.06	$11.09	$11.96	$11.05
Income (loss) from operations:
Net investment income	0.12	0.17	0.42	0.38	0.06
Net realized and unrealized gain (loss)	(0.11 )	0.02	(1.90 )	0.05	0.90
Total income (loss) from operations	0.01	0.19	(1.48)	0.43	0.96
Less distributions from:
Net investment income	(0.22 )	(0.17 )	(0.55 )	(0.51 )	(0.05 )
Net realized gains	—	—	—	(0.79 )	—
Total distributions	(0.22 )	(0.17 )	(0.55 )	(1.30 )	(0.05 )
Net asset value, end of year	$8.87	$9.08	$9.06	$11.09	$11.96
Total return2	0.13 %	2.14 %	(13.48 )%	3.75 %	8.73 %
Net assets, end of year (000s)	$585	$1,697	$2,296	$1,481	$1,002
Ratios to average net assets:
Gross expenses	1.76 %	1.64 %	1.54 %	1.45 %	1.43 %
Net expenses3,4	1.65	1.62	1.51	1.45	1.43
Net investment income	1.31	1.91	4.25	3.23	0.48
Portfolio turnover rate	7 %	19 %	39 %	80 %5	23 %

1	Per share amounts have been calculated using the average shares method.
2	Performance figures, exclusive of CDSC, may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results.
3	Reflects fee waivers and/or expense reimbursements.
4	As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage commissions, taxes, extraordinary expenses, deferred organizational expenses and acquired fund fees and expenses, to average net assets of Class C shares did not exceed 1.65%. This expense limitation arrangement cannot be terminated prior to December 31, 2026 without the Board of Directors’ consent. In addition, the manager has agreed to waive the Fund’s management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund.
5	Excludes securities delivered as a result of a redemption in-kind.

See Notes to Financial Statements.

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

For a share of capital stock outstanding throughout each year ended December 31:
Class C1 Shares1	2024	2023	2022	2021	2020
Net asset value, beginning of year	$9.46	$9.29	$11.42	$12.20	$11.24
Income (loss) from operations:
Net investment income	0.15	0.18	0.54	0.39	0.04
Net realized and unrealized gain (loss)	(0.16 )	0.16	(2.20 )	0.13	0.93
Total income (loss) from operations	(0.01)	0.34	(1.66)	0.52	0.97
Less distributions from:
Net investment income	(0.15 )	(0.17 )	(0.47 )	(0.51 )	(0.01 )
Net realized gains	—	—	—	(0.79 )	—
Total distributions	(0.15 )	(0.17 )	(0.47 )	(1.30 )	(0.01 )
Net asset value, end of year	$9.30	$9.46	$9.29	$11.42	$12.20
Total return2	(0.06 )%	2.05 %	(13.29 )%	4.46 %3	8.66 %
Net assets, end of year	$307	$331	$316	$30,534	$27,986
Ratios to average net assets:
Gross expenses	11.43 %	22.29 %	2.01 %	1.94 %	2.24 %
Net expenses4,5	1.40	1.40	1.40	1.40	1.40
Net investment income	1.58	1.90	5.15	3.24	0.33
Portfolio turnover rate	7 %	19 %	39 %	80 %6	23 %

1	Per share amounts have been calculated using the average shares method.
2	Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results.
3	The total return includes a payment by an affiliate to reimburse for an error. Absent this payment, total return would have been 3.82% for the year ended December 31, 2021.
4	Reflects fee waivers and/or expense reimbursements.
5	As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage commissions, taxes, extraordinary expenses, deferred organizational expenses and acquired fund fees and expenses, to average net assets of Class C1 shares did not exceed 1.40%. This expense limitation arrangement cannot be terminated prior to December 31, 2026 without the Board of Directors’ consent. In addition, the manager has agreed to waive the Fund’s management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund.
6	Excludes securities delivered as a result of a redemption in-kind.

See Notes to Financial Statements.

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

Financial Highlights (cont’d)

For a share of capital stock outstanding throughout each year ended December 31:
Class FI Shares1	2024	2023	2022	2021	2020
Net asset value, beginning of year	$9.33	$9.30	$11.35	$12.20	$11.27
Income (loss) from operations:
Net investment income	0.24	0.26	0.58	0.47	0.13
Net realized and unrealized gain (loss)	(0.15 )	(0.01 )2	(2.02 )	0.07	0.93
Total income (loss) from operations	0.09	0.25	(1.44)	0.54	1.06
Less distributions from:
Net investment income	(0.31 )	(0.22 )	(0.61 )	(0.60 )	(0.13 )
Net realized gains	—	—	—	(0.79 )	—
Total distributions	(0.31 )	(0.22 )	(0.61 )	(1.39 )	(0.13 )
Net asset value, end of year	$9.11	$9.33	$9.30	$11.35	$12.20
Total return3	0.96 %	2.71 %	(12.83 )%	4.56 %	9.42 %
Net assets, end of year (000s)	$97	$98	$336	$816	$754
Ratios to average net assets:
Gross expenses	1.08 %	0.94 %	0.82 %	0.70 %	0.73 %
Net expenses4,5	0.85	0.85	0.80	0.69	0.73
Net investment income	2.58	2.74	5.57	3.89	1.07
Portfolio turnover rate	7 %	19 %	39 %	80 %6	23 %

1	Per share amounts have been calculated using the average shares method.
2	Calculation of the net gain per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain presented in the Statement of Operations due to the timing of the sales and repurchases of Fund shares in relation to fluctuating market values of the investments of the Fund.
3	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.
4	Reflects fee waivers and/or expense reimbursements.
5	As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage commissions, taxes, extraordinary expenses, deferred organizational expenses and acquired fund fees and expenses, to average net assets of Class FI shares did not exceed 0.85%. This expense limitation arrangement cannot be terminated prior to December 31, 2026 without the Board of Directors’ consent. In addition, the manager has agreed to waive the Fund’s management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund.
6	Excludes securities delivered as a result of a redemption in-kind.

See Notes to Financial Statements.

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

For a share of capital stock outstanding throughout each year ended December 31:
Class R Shares1	2024	2023	2022	2021	2020
Net asset value, beginning of year	$9.26	$9.23	$11.28	$12.13	$11.20
Income (loss) from operations:
Net investment income	0.22	0.21	0.45	0.42	0.10
Net realized and unrealized gain (loss)	(0.16 )	0.03	(1.93 )	0.07	0.91
Total income (loss) from operations	0.06	0.24	(1.48)	0.49	1.01
Less distributions from:
Net investment income	(0.28 )	(0.21 )	(0.57 )	(0.55 )	(0.08 )
Net realized gains	—	—	—	(0.79 )	—
Total distributions	(0.28 )	(0.21 )	(0.57 )	(1.34 )	(0.08 )
Net asset value, end of year	$9.04	$9.26	$9.23	$11.28	$12.13
Total return2	0.75 %	2.56 %	(13.08 )%	4.16 %	9.06 %
Net assets, end of year (000s)	$19	$104	$61	$102	$216
Ratios to average net assets:
Gross expenses	1.70 %	1.37 %	1.36 %	1.13 %	1.06 %
Net expenses3,4	1.15	1.15	1.15	1.13	1.06
Net investment income	2.36	2.33	4.36	3.45	0.88
Portfolio turnover rate	7 %	19 %	39 %	80 %5	23 %

1	Per share amounts have been calculated using the average shares method.
2	Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results.
3	Reflects fee waivers and/or expense reimbursements.
4	As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage commissions, taxes, extraordinary expenses, deferred organizational expenses and acquired fund fees and expenses, to average net assets of Class R shares did not exceed 1.15%. This expense limitation arrangement cannot be terminated prior to December 31, 2026 without the Board of Directors’ consent. In addition, the manager has agreed to waive the Fund’s management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund.
5	Excludes securities delivered as a result of a redemption in-kind.

See Notes to Financial Statements.

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

Financial Highlights (cont’d)

For a share of capital stock outstanding throughout each year ended December 31:
Class I Shares1	2024	2023	2022	2021	2020
Net asset value, beginning of year	$9.51	$9.47	$11.55	$12.40	$11.45
Income (loss) from operations:
Net investment income	0.26	0.28	0.60	0.54	0.18
Net realized and unrealized gain (loss)	(0.16 )	0.03	(2.05 )	0.03	0.94
Total income (loss) from operations	0.10	0.31	(1.45)	0.57	1.12
Less distributions from:
Net investment income	(0.32 )	(0.27 )	(0.63 )	(0.63 )	(0.17 )
Net realized gains	—	—	—	(0.79 )	—
Total distributions	(0.32 )	(0.27 )	(0.63 )	(1.42 )	(0.17 )
Net asset value, end of year	$9.29	$9.51	$9.47	$11.55	$12.40
Total return2	1.05 %	3.29 %	(12.63 )%	4.74 %	9.84 %
Net assets, end of year (000s)	$6,337	$10,677	$16,624	$34,615	$84,063
Ratios to average net assets:
Gross expenses	0.80 %3	0.61 %	0.56 %	0.39 %	0.35 %
Net expenses4,5	0.71 3	0.58	0.54	0.39	0.35
Net investment income	2.75	2.97	5.66	4.34	1.51
Portfolio turnover rate	7 %	19 %	39 %	80 %6	23 %

1	Per share amounts have been calculated using the average shares method.
2	Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results.
3	Reflects recapture of fees waived and/or expenses reimbursed from prior fiscal years.
4	Reflects fee waivers and/or expense reimbursements.
5	As a result of an expense limitation arrangement, prior to May 1, 2023, the ratio of total annual fund operating expenses, other than interest, brokerage commissions, taxes, extraordinary expenses, deferred organizational expenses and acquired fund fees and expenses, to average net assets of Class I shares did not exceed 0.50%. In addition, the manager has agreed to waive the Fund’s management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund.
6	Excludes securities delivered as a result of a redemption in-kind.

See Notes to Financial Statements.

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

For a share of capital stock outstanding throughout each year ended December 31:
Class IS Shares1	2024	2023	2022	2021	2020
Net asset value, beginning of year	$9.58	$9.54	$11.63	$12.46	$11.51
Income (loss) from operations:
Net investment income	0.27	0.28	0.60	0.54	0.18
Net realized and unrealized gain (loss)	(0.16 )	0.03	(2.05 )	0.06	0.95
Total income (loss) from operations	0.11	0.31	(1.45)	0.60	1.13
Less distributions from:
Net investment income	(0.33 )	(0.27 )	(0.64 )	(0.64 )	(0.18 )
Net realized gains	—	—	—	(0.79 )	—
Total distributions	(0.33 )	(0.27 )	(0.64 )	(1.43 )	(0.18 )
Net asset value, end of year	$9.36	$9.58	$9.54	$11.63	$12.46
Total return2	1.15 %	3.35 %	(12.54 )%	4.99 %	9.87 %
Net assets, end of year (000s)	$33,926	$40,318	$58,982	$64,384	$414,300
Ratios to average net assets:
Gross expenses	0.70 %3	0.52 %	0.47 %	0.28 %	0.27 %
Net expenses4,5	0.61 3	0.49	0.44	0.28	0.27
Net investment income	2.85	2.96	5.68	4.37	1.49
Portfolio turnover rate	7 %	19 %	39 %	80 %6	23 %

1	Per share amounts have been calculated using the average shares method.
2	Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results.
3	Reflects recapture of fees waived and/or expenses reimbursed from prior fiscal years.
4	Reflects fee waivers and/or expense reimbursements.
5	As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses for Class IS shares did not exceed the ratio of total annual fund operating expenses for Class I shares. This expense limitation arrangement cannot be terminated prior to December 31, 2026 without the Board of Directors’ consent. In addition, the manager has agreed to waive the Fund’s management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund. Prior to May 1, 2023, the expense limitation was 0.40%.
6	Excludes securities delivered as a result of a redemption in-kind.

See Notes to Financial Statements.

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

Notes to Financial Statements

1. Organization and significant accounting policies

Western Asset Inflation Indexed Plus Bond Fund (the “Fund”) is a separate diversified investment series of Western Asset Funds, Inc. (the “Corporation”). The Corporation, a Maryland Statutory Corporation, 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. 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. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded. Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund will normally use the currency exchange rates as of 4:00 p.m. (Eastern Time). If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the manager to be unreliable, the market price may be determined by the manager using quotations from one or more broker/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved by the Fund’s Board of Directors (the “Board”).

Pursuant to policies adopted by the Board, 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. When determining the reliability of third party pricing information for investments owned by the Fund, the Valuation Committee, among other things, conducts

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.

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

For each portfolio security that has been fair valued pursuant to the policies adopted by the Board, 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 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 Inflation Indexed Plus Bond Fund 2024 Annual Report

Notes to Financial Statements (cont’d)

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities 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†:
U.S. Treasury Inflation Protected Securities	—	$40,967,957	—	$40,967,957
Corporate Bonds & Notes	—	4,357,037	—	4,357,037
Collateralized Mortgage Obligations	—	2,127,146	—	2,127,146
Non-U.S. Treasury Inflation Protected Securities	—	203,864	—	203,864
Asset-Backed Securities	—	4,362	—	4,362
Total Investments	—	$47,660,366	—	$47,660,366
Other Financial Instruments:
Futures Contracts††	$140,658	—	—	$140,658
Forward Foreign Currency Contracts††	—	$12,529	—	12,529
Total Other Financial Instruments	$140,658	$12,529	—	$153,187
Total	$140,658	$47,672,895	—	$47,813,553
LIABILITIES
Description	Quoted Prices (Level 1)	Other Significant Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Other Financial Instruments:
Futures Contracts††	$11,934	—	—	$11,934

†	See Schedule of Investments for additional detailed categorizations.
††	Reflects the unrealized appreciation (depreciation) of the instruments.

(b) Futures contracts. The Fund uses futures contracts generally to gain exposure to, or hedge against, changes in interest rates or gain exposure to, or hedge against, changes in certain asset classes. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.

Upon entering into a futures contract, the Fund is required to deposit cash or cash equivalents with a broker in an amount equal to a certain percentage of the contract amount. This is known as the ‘‘initial margin’’ and subsequent payments (‘‘variation margin’’) are made or received by the Fund each day, depending on the daily fluctuation in the value of the contract. For certain futures, including foreign denominated futures, variation margin is not settled daily, but is recorded as a net variation margin payable or receivable. The daily changes in contract value are recorded as unrealized appreciation or

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

depreciation in the Statement of Operations and the Fund recognizes a realized gain or loss when the contract is closed.

Futures contracts involve, to varying degrees, risk of loss in excess of the amounts reflected in the financial statements. In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid secondary market.

(c) Forward foreign currency contracts. The Fund enters into a forward foreign currency contract to hedge exposure of bond positions or in an attempt to increase the Fund’s return. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price with delivery and settlement at a future date. The contract is marked-to-market daily and the change in value is recorded by the Fund as an unrealized gain or loss. When a forward foreign currency contract is closed, through either delivery or offset by entering into another forward foreign currency contract, the Fund recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value of the contract at the time it is closed.

Forward foreign currency contracts involve elements of market risk in excess of the amounts reflected on the Statement of Assets and Liabilities. The Fund bears the risk of an unfavorable change in the foreign exchange rate underlying the forward foreign currency contract. Risks may also arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts.

(d) Inflation-indexed bonds. Inflation-indexed bonds are fixed income securities whose principal value or interest rate is periodically adjusted according to the rate of inflation. As the index measuring inflation changes, the principal value or interest rate of inflation-indexed bonds will be adjusted accordingly. Inflation adjustments to the principal amount of inflation-indexed bonds are reflected as an increase or decrease to investment income on the Statement of Operations. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury inflation-indexed bonds. For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal.

(e) Foreign currency translation. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the respective dates of such transactions.

The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from sales of foreign currencies, including gains and losses on forward foreign currency contracts, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

Notes to Financial Statements (cont’d)

the values of assets and liabilities, other than investments in securities, on the date of valuation, resulting from changes in exchange rates.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

(f) Credit and market risk. Investments in securities that are collateralized by real estate mortgages are subject to certain credit and liquidity risks. When market conditions result in an increase in default rates of the underlying mortgages and the foreclosure values of underlying real estate properties are materially below the outstanding amount of these underlying mortgages, collection of the full amount of accrued interest and principal on these investments may be doubtful. Such market conditions may significantly impair the value and liquidity of these investments and may result in a lack of correlation between their credit ratings and values.

(g) Foreign investment risks. The Fund’s investments in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies or may pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Fund. Foreign investments may also subject the Fund to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which affect the market and/or credit risk of the investments.

(h) Counterparty risk and credit-risk-related contingent features of derivative instruments. The Fund may invest in certain securities or engage in other transactions where the Fund is exposed to counterparty credit risk in addition to broader market risks. The Fund may invest in securities of issuers, which may also be considered counterparties as trading partners in other transactions. This may increase the risk of loss in the event of default or bankruptcy by the counterparty or if the counterparty otherwise fails to meet its contractual obligations. The Fund’s subadviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. Market events and changes in overall economic conditions may impact the assessment of such counterparty risk by the subadviser. In addition, declines in the values of underlying collateral received may expose the Fund to increased risk of loss.

With exchange traded and centrally cleared derivatives, there is less counterparty risk to the Fund since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, the credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default of the clearing broker or clearinghouse.

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

The Fund has entered into master agreements, such as an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement, with certain of its derivative counterparties that govern over-the-counter (“OTC”) derivatives and provide for general obligations, representations, agreements, collateral posting terms, netting provisions in the event of default or termination and credit related contingent features. The credit related contingent features include, but are not limited to, a percentage decrease in the Fund’s net assets or net asset value per share over a specified period of time. If these credit related contingent features were triggered, the derivatives counterparty could terminate the positions and demand payment or require additional collateral.

Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. However, absent an event of default by the counterparty or a termination of the agreement, the terms of the ISDA Master Agreements do not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities across transactions between the Fund and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction.

Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearinghouse for exchange traded derivatives while collateral terms are contract specific for OTC traded derivatives. Cash collateral that has been pledged to cover obligations of the Fund under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

As of December 31, 2024, the Fund did not have any open OTC derivative transactions with credit related contingent features in a net liability position.

(i) 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) is recorded on the accrual basis. Amortization of premiums and accretion of discounts on debt securities are recorded to interest income over the lives of the respective securities, except for premiums on certain callable debt securities, which are amortized to the earliest call date. Paydown gains and losses on mortgage- and asset-backed securities are recorded as adjustments to interest income. Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities. 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.

(j) Distributions to shareholders. Distributions from net investment income of the Fund, if any, are declared and paid on a quarterly basis. Distributions of net realized gains, if any, 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.

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

Notes to Financial Statements (cont’d)

(k) Share class accounting. Investment income, common expenses and realized/unrealized gains (losses) on investments are allocated to the various classes of the Fund on the basis of daily net assets of each class. Fees relating to a specific class are charged directly to that share class.

(l) Compensating balance arrangements. The Fund has an arrangement with its custodian bank whereby a portion of the custodian’s fees is paid indirectly by credits earned on the Fund’s cash on deposit with the bank.

(m) Federal and other taxes. It is the Fund’s 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 Fund’s financial statements.

Management has analyzed the Fund’s tax positions taken on income tax returns for all open tax years and has concluded that as of December 31, 2024, no provision for income tax is required in the Fund’s financial statements. The Fund’s 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.

Under the applicable foreign tax laws, a withholding tax may be imposed on interest, dividends and capital gains at various rates.

(n) 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. During the current year, the Fund had no reclassifications.

2. Investment management agreement and other transactions with affiliates

Franklin Templeton Fund Adviser, LLC (“FTFA”) is the Fund’s investment manager. Western Asset Management Company, LLC (“Western Asset”), Western Asset Management Company Limited (“Western Asset London”), Western Asset Management Company Pte. Ltd. in Singapore (“Western Asset Singapore”) and Western Asset Management Company Ltd in Japan (“Western Asset Japan”) are the Fund’s subadvisers. FTFA, Western Asset, Western Asset London, Western Asset Singapore and Western Asset Japan are indirect, wholly-owned subsidiaries of Franklin Resources, Inc. (“Franklin Resources”).

FTFA provides the Fund with management and administrative services for which the Fund pays a fee, calculated daily and paid monthly, at an annual rate of 0.20% of the Fund’s average daily net assets. For their services, FTFA pays Western Asset, Western Asset London, Western Asset Singapore and Western Asset Japan monthly all of the management fee that it receives from the Fund.

As a result of expense limitation arrangements between the Fund and FTFA, the ratio of total annual fund operating expenses, other than interest, brokerage commissions, taxes, extraordinary expenses, deferred organizational expenses and acquired fund fees and expenses, to average net assets of Class A, Class C, Class C1, Class FI and Class R shares did not exceed 0.90%, 1.65%, 1.40%, 0.85% and 1.15%, respectively. In addition, the ratio

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

of total annual fund operating expenses for Class IS shares did not exceed the ratio of total annual fund operating expenses for Class I shares. These expense limitation arrangements cannot be terminated prior to December 31, 2026 without the Board consent. In addition, the manager has agreed to waive the Fund’s management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund (the “affiliated money market fund waiver”). The affiliated money market fund waiver is not subject to the recapture provision discussed below. Prior to May 1, 2023, the expense limitation of Class I and Class IS shares were 0.50% and 0.40%, respectively.
During the year ended December 31, 2024, fees waived and/or expenses reimbursed amounted to $53,129, which included an affiliated money market fund waiver of $8.

FTFA is permitted to recapture amounts waived and/or reimbursed to a class within two years after the fiscal year in which FTFA earned the fee or incurred the expense if the class’ total annual fund operating expenses have fallen to a level below the expense limitation (“expense cap”) in effect at the time the fees were earned or the expenses incurred. In no case will FTFA recapture any amount that would result, on any particular business day of the Fund, in the class’ total annual fund operating expenses exceeding the expense cap or any other lower limit then in effect.

Pursuant to these arrangements, at December 31, 2024, the Fund had remaining fee waivers and/or expense reimbursements subject to recapture by FTFA and respective dates of expiration as follows:

	Class A	Class C	Class C1	Class FI	Class R	Class I	Class IS
Expires December 31, 2025	$3,542	$459	$67	$233	$176	$3,444	$12,574
Expires December 31, 2026	10,956	985	32	220	260	7,386	33,282
Total fee waivers/ expense reimbursements subject to recapture	$14,498	$1,444	$99	$453	$436	$10,830	$45,856

For the year ended December 31, 2024, fee waivers and/or expense reimbursements recaptured by FTFA were as follows:

	Class I	Class IS
FTFA recaptured	$37	$3,672

Franklin Distributors, LLC (“Franklin Distributors”) serves as the Fund’s sole and exclusive distributor. Franklin Distributors is an indirect, wholly-owned broker-dealer subsidiary of Franklin Resources. Franklin Templeton Investor Services, LLC (“Investor Services”) serves as the Fund’s shareholder servicing agent and acts as the Fund’s transfer agent and dividend-paying agent. Investor Services is an indirect, wholly-owned subsidiary of Franklin Resources. Each class of shares of the Fund pays transfer agent fees to Investor Services for its performance of shareholder servicing obligations. Investor Services charges account-based fees based on the number of individual shareholder accounts, as well as a fixed percentage fee based on the total account-based fees charged. In addition, each class reimburses Investor Services for out of pocket expenses incurred. For the year ended

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

Notes to Financial Statements (cont’d)

December 31, 2024, the Fund incurred transfer agent fees as reported on the Statement of Operations, of which $3,027 was earned by Investor Services.

There is a maximum initial sales charge of 3.75% for Class A shares. There is a contingent deferred sales charge (“CDSC”) of 1.00% on Class C shares, which applies if redemption occurs within 12 months from purchase payment. In certain cases, Class A shares have a 1.00% CDSC, which applies if redemption occurs within 18 months from purchase payment. This CDSC only applies to those purchases of Class A shares, which, when combined with current holdings of other shares of funds sold by Franklin Distributors, equal or exceed $500,000 in the aggregate. These purchases do not incur an initial sales charge.

For the year ended December 31, 2024, sales charges retained by and CDSCs paid to Franklin Distributors and its affiliates, if any, were as follows:

	Class A
Sales charges	$4
CDSCs	—

All officers and one Director of the Corporation are employees of Franklin Resources or its affiliates and do not receive compensation from the Corporation.

3. Investments

During the year ended December 31, 2024, the aggregate cost of purchases and proceeds from sales of investments (excluding short-term investments) and U.S. Government & Agency Obligations were as follows:

	Investments	U.S. Government & Agency Obligations
Purchases	$740,490	$2,906,849
Sales	1,088,397	17,648,538

At December 31, 2024, the aggregate cost of investments and the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were as follows:

	Cost	Gross Unrealized Appreciation	Gross Unrealized Depreciation	Net Unrealized Appreciation (Depreciation)
Securities	$54,019,387	$29,826	$(6,388,847)	$(6,359,021)
Futures contracts	—	140,658	(11,934)	128,724
Forward foreign currency contracts	—	12,529	—	12,529

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

4. Derivative instruments and hedging activities

Below is a table, grouped by derivative type, that provides information about the fair value and the location of derivatives within the Statement of Assets and Liabilities at December 31, 2024.

ASSET DERIVATIVES1
	Interest Rate Risk	Foreign Exchange Risk	Total
Futures contracts2	$140,658	—	$140,658
Forward foreign currency contracts	—	$12,529	12,529
Total	$140,658	$12,529	$153,187

LIABILITY DERIVATIVES1
	Interest Rate Risk
Futures contracts2	$11,934

1	Generally, the balance sheet location for asset derivatives is receivables/net unrealized appreciation and for liability derivatives is payables/net unrealized depreciation.
2	Includes cumulative unrealized appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only net variation margin is reported within the receivables and/or payables on the Statement of Assets and Liabilities.

The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the year ended December 31, 2024. The table provides additional detail about the amounts and sources of gains (losses) realized on derivatives during the period. The second table provides additional information about the change in net unrealized appreciation (depreciation) resulting from the Fund’s derivatives and hedging activities during the period.

AMOUNT OF NET REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED
	Interest Rate Risk	Foreign Exchange Risk	Total
Futures contracts	$60,385	—	$60,385
Forward foreign currency contracts	—	$(18,285 )	(18,285 )
Total	$60,385	$(18,285 )	$42,100

CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED
	Interest Rate Risk	Foreign Exchange Risk	Total
Futures contracts	$165,451	—	$165,451
Forward foreign currency contracts	—	$23,828	23,828
Total	$165,451	$23,828	$189,279

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

Notes to Financial Statements (cont’d)

During the year ended December 31, 2024, the volume of derivative activity for the Fund was as follows:

	Average Market Value
Futures contracts (to buy)	$660,029
Futures contracts (to sell)	1,146,197
Forward foreign currency contracts (to sell)	274,510

The following table presents the Fund’s OTC derivative assets and liabilities by counterparty net of amounts available for offset under an ISDA Master Agreement and net of the related collateral pledged (received) by the Fund as of December 31, 2024.

Counterparty	Gross Assets Subject to Master Agreements1	Gross Liabilities Subject to Master Agreements	Net Assets (Liabilities) Subject to Master Agreements	Collateral Pledged (Received)	Net Amount2
Bank of America N.A.	$12,529	—	$12,529	—	$12,529

1	Absent an event of default or early termination, derivative assets and liabilities are presented gross and not offset in the Statement of Assets and Liabilities.
2	Represents the net amount receivable (payable) from (to) the counterparty in the event of default.

5. Class specific expenses, waivers and/or expense reimbursements

The Fund has adopted a Rule 12b-1 shareholder services and distribution plan and under that plan the Fund pays service and/or distribution fees with respect to its Class A, Class C, Class C1, Class FI and Class R shares calculated at the annual rate of 0.25%, 1.00%, 0.75%, 0.25% and 0.50% of the average daily net assets of each class, respectively. Service and/or distribution fees are accrued daily and paid monthly.

For the year ended December 31, 2024, class specific expenses were as follows:

	Service and/or Distribution Fees	Transfer Agent Fees
Class A	$22,571	$7,480
Class C	8,625	688
Class C1	2	32
Class FI	241	133
Class R	237	242
Class I	—	9,276
Class IS	—	680
Total	$31,676	$18,531

For the year ended December 31, 2024, waivers and/or expense reimbursements by class were as follows:

	Waivers/Expense Reimbursements
Class A	$10,957
Class C	985

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

	Waivers/Expense Reimbursements
Class C1	$32
Class FI	220
Class R	260
Class I	7,387
Class IS	33,288
Total	$53,129

6. Distributions to shareholders by class

	Year Ended December 31, 2024	Year Ended December 31, 2023
Net Investment Income:
Class A	$274,951	$360,610
Class C	17,966	38,673
Class C1	5	6
Class FI	3,158	5,937
Class R	1,131	1,950
Class I	269,749	402,605
Class IS	1,251,161	1,220,241
Total	$1,818,121	$2,030,022

7. Capital shares

At December 31, 2024, the Corporation had 42.7 billion shares of capital stock authorized with a par value of $0.001 per share. Transactions in shares of each class were as follows:

	Year Ended December 31, 2024		Year Ended December 31, 2023
	Shares	Amount	Shares	Amount
Class A
Shares sold	173,407	$1,624,746	161,141	$1,526,708
Shares issued on reinvestment	26,707	247,205	34,887	324,072
Shares repurchased	(459,812 )	(4,303,387 )	(1,216,996 )	(11,383,958 )
Net decrease	(259,698 )	$(2,431,436 )	(1,020,968 )	$(9,533,178 )
Class C
Shares sold	3,829	$34,457	36,993	$339,878
Shares issued on reinvestment	1,993	17,797	4,301	38,542
Shares repurchased	(126,764 )	(1,139,809 )	(107,815 )	(979,328 )
Net decrease	(120,942 )	$(1,087,555 )	(66,521 )	$(600,908 )
Class C1
Shares sold	1	$16	2	$17
Shares issued on reinvestment	1	5	1	6
Shares repurchased	(4 )	(19 )	(2 )	(21 )
Net increase (decrease)	(2 )	$2	1	$2

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

Notes to Financial Statements (cont’d)

	Year Ended December 31, 2024		Year Ended December 31, 2023
	Shares	Amount	Shares	Amount
Class FI
Shares sold	491	$4,583	986	$9,209
Shares issued on reinvestment	344	3,158	638	5,937
Shares repurchased	(772 )	(7,136 )	(27,223 )	(250,267 )
Net increase (decrease)	63	$605	(25,599 )	$(235,121 )
Class R
Shares sold	612	$5,636	6,392	$59,595
Shares issued on reinvestment	72	656	180	1,635
Shares repurchased	(9,778 )	(89,936 )	(1,973 )	(18,276 )
Net increase (decrease)	(9,094 )	$(83,644 )	4,599	$42,954
Class I
Shares sold	252,483	$2,407,338	173,657	$1,634,950
Shares issued on reinvestment	28,286	264,899	42,313	397,903
Shares repurchased	(721,740 )	(6,836,236 )	(848,083 )	(7,962,739 )
Net decrease	(440,971 )	$(4,163,999 )	(632,113 )	$(5,929,886 )
Class IS
Shares sold	625,957	$5,940,119	880,448	$8,405,732
Shares issued on reinvestment	132,470	1,249,906	128,751	1,220,241
Shares repurchased	(1,344,246 )	(12,791,150 )	(2,983,893 )	(28,780,395 )
Net decrease	(585,819 )	$(5,601,125 )	(1,974,694 )	$(19,154,422 )

8. 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 year ended December 31, 2024. The following transactions were effected in such company for the year ended December 31, 2024.

	Affiliate Value at December 31, 2023	Purchased		Sold
	Affiliate Value at December 31, 2023	Cost	Shares	Proceeds	Shares
Western Asset Premier Institutional Government Reserves, Premium Shares	—	$1,223,384	1,223,384	$1,223,384	1,223,384

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

(cont’d)	Realized Gain (Loss)	Dividend Income	Net Increase (Decrease) in Unrealized Appreciation (Depreciation)	Affiliate Value at December 31, 2024
Western Asset Premier Institutional Government Reserves, Premium Shares	—	$275	—	—

9. Redemption facility

The Fund, together with other U.S. registered and foreign investment funds (collectively, the “Borrowers”) managed by Franklin Resources or its affiliates, is a borrower in a joint syndicated senior unsecured credit facility totaling $2.675 billion (the “Global Credit Facility”). The Global Credit Facility provides a source of funds to the Borrowers for temporary and emergency purposes, including the ability to meet future unanticipated or unusually large redemption requests. Unless renewed, the Global Credit Facility will terminate on January 30, 2026.

Under the terms of the Global Credit Facility, the Fund shall, in addition to interest charged on any borrowings made by the Fund and other costs incurred by the Fund, pay its share of fees and expenses incurred in connection with the implementation and maintenance of the Global Credit Facility, based upon its relative share of the aggregate net assets of all the Borrowers, including an annual commitment fee of 0.15% based upon the unused portion of the Global Credit Facility. These fees are reflected in the Statement of Operations. The Fund did not utilize the Global Credit Facility during the year ended December 31, 2024.

10. Income tax information and distributions to shareholders

The tax character of distributions paid during the fiscal years ended December 31, was as follows:

	2024	2023
Distributions paid from:
Ordinary income	$1,818,121	$2,030,022

As of December 31, 2024, the components of distributable earnings (loss) on a tax basis were as follows:

Undistributed ordinary income — net	$2,530
Deferred capital losses*	(14,171,433)
Other book/tax temporary differences(a)	(151,931)
Unrealized appreciation (depreciation)(b)	(6,218,489)
Total distributable earnings (loss) — net	$(20,539,323)

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

Notes to Financial Statements (cont’d)

*	These capital losses have been deferred in the current year as either short-term or long-term losses. The losses will be deemed to occur on the first day of the next taxable year in the same character as they were originally deferred and will be available to offset future taxable capital gains.
(a)	Other book/tax temporary differences are attributable to the tax deferral of losses on straddles, the realization for tax purposes of unrealized gains (losses) on certain futures and foreign currency contracts and book/tax differences in the timing of the deductibility of various expenses.
(b)	The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable to the tax deferral of losses on wash sales.

11. Operating segments

The Fund has adopted the Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures. The update is limited to disclosure requirements and does not impact the Fund’s financial position or results of operations.

The Fund operates as a single operating segment, which is an investment portfolio. The Fund’s Investment Manager serves as the Chief Operating Decision Maker (CODM), evaluating fund-wide results and performance under a unified investment strategy. The CODM uses these measures to assess fund performance and allocate resources effectively. Internal reporting provided to the CODM aligns with the accounting policies and measurement principles used in the financial statements.

For information regarding segment assets, segment profit or loss, and significant expenses, refer to the Statement of assets and liabilities and the Statement of operations, along with the related Notes to the financial statements. The Fund’s portfolio holdings provide details of the Fund’s investments that generate returns such as interest, dividends, and realized and unrealized gains or losses. Performance metrics, including portfolio turnover and expense ratios, are disclosed in the Financial highlights.

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

Report of Independent Registered Public Accounting Firm

To the Board of Directors of Western Asset Funds, Inc. and Shareholders of Western Asset Inflation Indexed Plus Bond Fund

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Western Asset Inflation Indexed Plus Bond Fund (one of the funds constituting Western Asset Funds, Inc., referred to hereafter as the “Fund”) as of December 31, 2024, the related statement of operations for the year ended December 31, 2024, the statement of changes in net assets for each of the two years in the period ended December 31, 2024, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2024 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2024 and the financial highlights for each of the five years in the period ended December 31, 2024 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2024 by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.

/s/PricewaterhouseCoopers LLP

Baltimore, Maryland
February 21, 2025

We have served as the auditor of one or more investment companies in the Franklin Templeton Group of Funds since 1948.

Western Asset Inflation Indexed Plus Bond Fund 2024 Annual Report

Important Tax Information (unaudited)

By mid-February, tax information related to a shareholder’s proportionate share of distributions paid during the preceding calendar year will be received, if applicable. Please also refer to www.franklintempleton.com for per share tax information related to any distributions paid during the preceding calendar year. Shareholders are advised to consult with their tax advisors for further information on the treatment of these amounts on their tax returns.

The following tax information for the Fund is required to be furnished to shareholders with respect to income earned and distributions paid during its fiscal year.

The Fund hereby reports the following amounts, or if subsequently determined to be different, the maximum allowable amounts, for the fiscal year ended December 31, 2024:

	Pursuant to:	Amount Reported
Qualified Net Interest Income (QII)	§871(k)(1)(C)	$1,514,734
Section 163(j) Interest Earned	§163(j)	$2,108,369
Interest Earned from Federal Obligations	Note (1)	$1,673,826

Note (1) - The law varies in each state as to whether and what percentage of dividend income attributable to Federal obligations is exempt from state income tax. Shareholders are advised to consult with their tax advisors to determine if any portion of the dividends received is exempt from state income taxes.

Western Asset Inflation Indexed Plus Bond Fund

Changes in and Disagreements with AccountantsFor the period covered by this report

Not applicable.

Results of Meeting(s) of ShareholdersFor the period covered by this report

Not applicable.

Remuneration Paid to Directors, Officers and OthersFor the period covered by this report

Refer to the financial statements included herein.

Western Asset Inflation Indexed Plus Bond Fund

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Western Asset

Inflation Indexed Plus Bond Fund

Directors

Robert Abeles, Jr.

Jane F. Dasher

Anita L. DeFrantz

Susan B. Kerley

Michael Larson

Ronald L. Olson

Avedick B. Poladian

William E.B. Siart
Chair

Jaynie M. Studenmund

Peter J. Taylor

Jane Trust

Investment manager

Franklin Templeton Fund Adviser, LLC

Subadvisers

Western Asset Management Company, LLC

Western Asset Management Company Limited

Western Asset Management Company Ltd

Western Asset Management Company Pte. Ltd.

Distributor

Franklin Distributors, LLC

Custodian

The Bank of New York Mellon

Transfer agent

Franklin Templeton Investor
Services, LLC
3344 Quality Drive
Rancho Cordova, CA 95670-7313

Independent registered
public accounting firm

PricewaterhouseCoopers LLP
Baltimore, MD

Western Asset Inflation Indexed Plus Bond Fund

The Fund is a separate investment series of Western Asset Funds, Inc.

Western Asset Inflation Indexed Plus Bond Fund
Legg Mason Funds
100 International Drive
Baltimore, MD 21202

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 Fund’s Forms N-PORT are available on the SEC’s website at www.sec.gov. To obtain information on Form N-PORT, shareholders can call the Fund at 877-6LM-FUND/656-3863.

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 the Fund at 877-6LM-FUND/656-3863, (2) at www.franklintempleton.com and (3) on the SEC’s website at www.sec.gov.

This report is submitted for the general information of the shareholders of Western Asset Inflation Indexed Plus Bond Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by a current prospectus.

Investors should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other important information about the Fund. Please read the prospectus carefully before investing.

www.franklintempleton.com

Franklin Templeton Funds Privacy and Security Notice

Your Privacy Is Our Priority

Franklin Templeton* is committed to safeguarding your personal information. This notice is designed to provide you with a summary of the non-public personal information Franklin Templeton may collect and maintain about current or former individual investors; our policy regarding the use of that information; and the measures we take to safeguard the information. We do not sell individual investors’ non-public personal information to anyone and only share it as described in this notice.

Information We Collect

When you invest with us, you provide us with your non-public personal information. We collect and use this information to service your accounts and respond to your requests. The non-public personal information we may collect falls into the following categories:

• Information we receive from you or your financial intermediary on applications or other forms, whether we receive the form in writing or electronically. For example, this information may include your name, address, tax identification number, birth date, investment selection, beneficiary information, and your personal bank account information and/or email address if you have provided that information.

• Information about your transactions and account history with us, or with other companies that are part of Franklin Templeton, including transactions you request on our website or in our app. This category also includes your communications to us concerning your investments.

• Information we receive from third parties (for example, to update your address if you move, obtain or verify your email address or obtain additional information to verify your identity).

• Information collected from you online, such as your IP address or device ID and data gathered from your browsing activity and location. (For example, we may use cookies to collect device and browser information so our website recognizes your online preferences and device information.) Our website contains more information about cookies and similar technologies and ways you may limit them.

• Other general information that we may obtain about you such as demographic information.

Disclosure Policy

To better service your accounts and process transactions or services you requested, we may share non-public personal information with other Franklin Templeton companies. From time to time we may also send you information about products/services offered by other Franklin Templeton companies although we will not share your non-public personal information with these companies without first offering you the opportunity to prevent that sharing.

NOT PART OF THE ANNUAL REPORT

Franklin Templeton Funds Privacy and Security Notice

(cont’d)

We will only share non-public personal information with outside parties in the limited circumstances permitted by law. For example, this includes situations where we need to share information with companies who work on our behalf to service or maintain your account or process transactions you requested, when the disclosure is to companies assisting us with our own marketing efforts, when the disclosure is to a party representing you, or when required by law (for example, in response to legal process). Additionally, we will ensure that any outside companies working on our behalf, or with whom we have joint marketing agreements, are under contractual obligations to protect the confidentiality of your information, and to use it only to provide the services we asked them to perform.

Confidentiality and Security

Our employees are required to follow procedures with respect to maintaining the confidentiality of our investors’ non-public personal information. Additionally, we maintain physical, electronic and procedural safeguards to protect the information. This includes performing ongoing evaluations of our systems containing investor information and making changes when appropriate.

At all times, you may view our current privacy notice on our website at
https://www.franklintempleton.com/help/privacy-policy or contact us for a copy at (800) 632-2301.

*For purposes of this privacy notice Franklin Templeton shall refer to the following entities:

Fiduciary Trust International of the South (FTIOS), as custodian for individual retirement plans

Franklin Advisers, Inc.

Franklin Distributors, LLC, including as program manager of the Franklin Templeton 529 College Savings Plan and the NJBEST 529 College Savings Plan

Franklin Mutual Advisers, LLC

Franklin, Templeton and Mutual Series Funds

Franklin Templeton Institutional, LLC

Franklin Templeton Investments Corp., Canada

Franklin Templeton Investments Management, Limited UK

Legg Mason Funds

Templeton Asset Management, Limited

Templeton Global Advisors, Limited

Templeton Investment Counsel, LLC

If you are a customer of other Franklin Templeton affiliates and you receive notices from them, you will need to read those notices separately.

NOT PART OF THE ANNUAL REPORT

90203-AFSOI 2/25

ITEM 8.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.

The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.

ITEM 9.

PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.

The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.

ITEM 10.

REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES.

The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.

ITEM 11.

STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT.

The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR, as applicable.

ITEM 12.

DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 13.

PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 14.

PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 15.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

Not applicable.

ITEM 16.

CONTROLS AND PROCEDURES.

(a)

The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s 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.

(b)

There were no changes in the registrant’s 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 registrant’s internal control over financial reporting.

ITEM 17.

DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 18.

RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION.

(a)

Not applicable.

(b)

Not applicable.

ITEM 19.

EXHIBITS.

(a) (1) Code of Ethics attached hereto.

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 Funds, Inc.

By:	/s/ Jane Trust
	Jane Trust
	Chief Executive Officer

Date:	February 25, 2025

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.

By:	/s/ Jane Trust
	Jane Trust
	Chief Executive Officer

Date:	February 25, 2025

By:	/s/ Christopher Berarducci
	Christopher Berarducci
	Principal Financial Officer

Date:	February 25, 2025

Western Asset Funds N-CSRCertified annual shareholder report (management investment company)