Legg Mason Partners Variable Portfolios Ii N-CSRS Certified semi-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 811-06310

Legg Mason Partners Variable Income Trust

(Exact name of registrant as specified in charter)

620 Eighth Avenue, 49^th Floor, New York, NY 10018

(Address of principal executive offices) (Zip code)

Robert I. Frenkel, Esq.

Legg Mason & Co., LLC

100 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

Registrant’s telephone number, including area code: 1-877-721-1926

Date of fiscal year end: December 31

Date of reporting period: June 30, 2018

ITEM 1. REPORT TO STOCKHOLDERS.

The Semi-Annual Report to Stockholders is filed herewith.

Semi-Annual Report June 30, 2018

WESTERN ASSET

VARIABLE GLOBAL HIGH YIELD BOND PORTFOLIO

INVESTMENT PRODUCTS: NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

What’s inside
Letter from the president	II
Investment commentary	III
Portfolio at a glance	1
Portfolio expenses	2
Spread duration	4
Effective duration	5
Schedule of investments	6
Statement of assets and liabilities	22
Statement of operations	24
Statements of changes in net assets	25
Financial highlights	26
Notes to financial statements	28

Portfolio objective

The Portfolio seeks to maximize total return.

Letter from the president

Dear Shareholder,

We are pleased to provide the semi-annual report of Western Asset Variable Global High Yield Bond Portfolio for the six-month reporting period ended June 30, 2018. Please read on for Portfolio performance information and a detailed look at prevailing economic and market conditions during the Portfolio’s reporting period.

As always, we remain committed to providing you with excellent service and a full spectrum of investment choices. We also remain committed to supplementing the support you receive from your financial advisor. One way we accomplish this is through our website, www.leggmason.com. Here you can gain immediate access to market and investment information, including:

• Market insights and commentaries from our portfolio managers and

• A host of educational resources.

We look forward to helping you meet your financial goals.

Sincerely,

Jane Trust, CFA

President and Chief Executive Officer

July 27, 2018

II Western Asset Variable Global High Yield Bond Portfolio

Investment commentary

Economic review

Economic activity in the U.S. was mixed during the six months ended June 30, 2018 (the “reporting period”). Looking back, the U.S. Department of Commerce reported that revised fourth quarter 2017 U.S. gross domestic product (“GDP”)ⁱ growth was 2.3%. GDP growth then moderated to a revised 2.2% during the first quarter of 2018. Finally, the U.S. Department of Commerce’s initial reading for second quarter 2018 GDP growth — released after the reporting period ended — was 4.1%. The acceleration in GDP growth in the second quarter reflected positive contributions from personal consumption expenditures (“PCE”), exports, nonresidential fixed investment, federal government spending and state and local government spending. These were partly offset by negative contributions from private inventory investment and residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.

Job growth in the U.S. was solid overall and supported the economy during the reporting period. When the reporting period ended on June 30, 2018, the unemployment rate was 4.0%, as reported by the U.S. Department of Labor. While the unemployment rate ticked up from 3.8% to 4.0% in June, the increase was largely attributed to an increase in the workforce participation rate. The percentage of longer-term unemployed moved higher during the reporting period. In June 2018, 23.0% of Americans looking for a job had been out of work for more than six months, versus 21.5% when the period began.

Turning to the global economy, in its July 2018 World Economic Outlook Update — released after the reporting period ended — the International Monetary Fund (“IMF”)ⁱⁱ said, “Global growth is projected to reach 3.9 percent in 2018 and 2019, in line with the forecast of the April 2018 World Economic Outlook, but the expansion is becoming less even, and risks to the outlook are mounting. The rate of expansion appears to have peaked in some major economies and growth has become less synchronized.” From a regional perspective, the IMF projects 2018 growth in the Eurozone will be 2.2%, versus 2.4% in 2017. Japan’s economy is expected to expand 1.0% in 2018, compared to 1.7% in 2017. Elsewhere, the IMF projects that overall growth in emerging market countries will accelerate to 4.9% in 2018, versus 4.7% in 2017.

Western Asset Variable Global High Yield Bond Portfolio III

Investment commentary (cont’d)

Market review

Q. How did the Federal Reserve Board (the “Fed”)ⁱⁱⁱ respond to the economic environment?

A. The Fed increased the federal funds rate^iv twice during the reporting period. Looking back, at its meeting that concluded on September 20, 2017 — before the reporting period began — the Fed kept rates on hold, but reiterated its intention to begin reducing its balance sheet. At its meeting that ended on December 13, 2017, the Fed raised rates to a range between 1.25% and 1.50%. As expected, the Fed kept rates on hold at its meeting that concluded on January 31, 2018. However, at its meeting that ended on March 21, 2018, the Fed again raised the federal funds rate, moving it to a range between 1.50% and 1.75%. Finally, at its meeting that concluded on June 13, 2018, the Fed raised the federal funds rate to a range between 1.75% and 2.00%.

Q. What actions did international central banks take during the reporting period?

A. Central banks outside the U.S. largely maintained their accommodative monetary policy stances during the reporting period. Looking back, in December 2016, the European Central Bank (“ECB”)^v extended its bond buying program until December 2017. From April 2017 through December 2017, the ECB purchased €60 billion-per-month of bonds. In October 2017, the ECB announced that it would continue to buy bonds through September 2018, but after December 2017 it would pare its purchases to €30 billion-per-month. In June 2018, the ECB announced it would end its bond buying program by the end of the year, but it did not anticipate raising interest rates “at least through the summer of 2019”. In other developed countries, on November 2, 2017, the Bank of England^vi raised rates from 0.25% to 0.50% — the first increase since July 2007. After holding rates steady at 0.10% for more than five years, in January 2016, the Bank of Japan^vii announced that it cut the rate on current accounts that commercial banks hold with it to -0.10% and kept rates on hold during the reporting period. Elsewhere, the People’s Bank of China^viii kept rates steady at 4.35% during the reporting period.

Q. Did Treasury yields trend higher or lower during the reporting period?

A. Both short-term and longer-term Treasury yields moved higher during the six-month reporting period ended June 30, 2018. The yield for the two-year Treasury note began the reporting period at 1.89% — the low for the period — and ended the period at 2.52%. The peak for the period of 2.59% occurred on several occasions in May and June 2018. The yield for the ten-year Treasury began the reporting period at 2.40% — the low for the period — and ended the period at 2.85%. The high for the period of 3.11% took place on May 17, 2018.

Q. What factors impacted the spread sectors (non-Treasuries) during the reporting period?

A. Most spread sectors generally posted weak results during the reporting period. Performance fluctuated given changing expectations for global growth, uncertainties regarding future central bank monetary policy and concerns over a global trade war. All told, the broad U.S. bond market, as measured by the Bloomberg Barclays U.S. Aggregate Index^ix, returned -1.62% during the six-month reporting period ended June 30, 2018.

IV Western Asset Variable Global High Yield Bond Portfolio

Q. How did the high-yield bond market perform over the reporting period?

A. The U.S. high-yield bond market, as measured by the Bloomberg Barclays U.S. Corporate High Yield -2% Issuer Cap Index^x, returned 0.16% for the six months ended June 30, 2018. The high-yield market posted a modest gain during the first month of the reporting period. Those gains were then erased in February and March 2018. This turnaround was triggered by a number of factors, including fears that the Fed may take a more aggressive approach to rate hikes, trade war concerns and high-profile issues in the technology industry. However, the high yield market then rallied in April, was relatively flat in May and moved higher in June 2018.

Q. How did the emerging markets debt asset class perform over the reporting period?

A. The JPMorgan Emerging Markets Bond Index Global (“EMBI Global”)^xi returned -5.23% during the six months ended June 30, 2018. The asset class produced choppy results during the reporting period. At times it was supported by solid investor demand, less concern over a significant shift in U.S. trade policy and a weakening U.S. dollar. However, at other times it was dragged down by rising U.S. interest rates, periods of investor risk aversion and geopolitical issues. In addition, the U.S. dollar rallied during the second half of the reporting period, negatively impacting the performance of the asset class.

Performance review

For the six months ended June 30, 2018, Class I shares of Western Asset Variable Global High Yield Bond Portfolio¹ returned -2.68%. The Portfolio’s unmanaged benchmark, the Bloomberg Barclays Global High Yield Index (Hedged)^xii, returned -1.80% for the same period. The Lipper Variable High Yield Funds Category Average² returned -0.19% over the same time frame.

Performance Snapshot as of June 30, 2018 (unaudited)
	6 months
Western Asset Variable Global High Yield Bond Portfolio1:
Class I		-2.68	%
Class II		-2.73	%
Bloomberg Barclays Global High Yield Index (Hedged)		-1.80	%
Lipper Variable High Yield Funds Category Average2		-0.19	%

The performance shown represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown above. Principal value, investment returns and yields will fluctuate and investors’ shares, when redeemed, may be worth more or less than their original cost.

All share class returns assume the reinvestment of all distributions, including returns of capital, if any, at net asset value and the deduction of all Portfolio expenses. Performance figures for periods shorter than one year represent cumulative figures and are not annualized.

¹  The Portfolio is an underlying investment option of various variable annuity and variable life insurance products. The Portfolio’s performance returns do not reflect the deduction of expenses imposed in connection with investing in variable annuity or variable life insurance contracts, such as administrative fees, account charges and surrender charges, which, if reflected, would reduce the performance of the Portfolio. Past performance is no guarantee of future results.

²  Lipper, Inc., a wholly-owned subsidiary of Reuters, provides independent insight on global collective investments. Returns are based on the six-month period ended June 30, 2018, including the reinvestment of all distributions, including returns of capital, if any, calculated among the 111 funds in the Portfolio’s Lipper category.

Western Asset Variable Global High Yield Bond Portfolio V

Investment commentary (cont’d)

The 30-Day SEC Yields for the period ended June 30, 2018 for Class I and Class II shares were 5.40% and 5.14%, respectively. The 30-Day SEC Yield, calculated pursuant to the standard SEC formula, is based on a Portfolio’s investments over an annualized trailing 30-day period, and not on the distributions paid by the Portfolio, which may differ.

Total Annual Operating Expenses (unaudited)

As of the Portfolio’s current prospectus dated May 1, 2018, the gross total annual fund operating expense ratios for Class I and Class II shares were 0.83% and 1.08%, respectively.

Actual expenses may be higher. For example, expenses may be higher than those shown if average net assets decrease. Net assets are more likely to decrease and Portfolio expense ratios are more likely to increase when markets are volatile.

As always, thank you for your confidence in our stewardship of your assets.

Sincerely,

Jane Trust, CFA

President and Chief Executive Officer

July 27, 2018

RISKS: Investments in bonds are subject to interest rate and credit risks. As interest rates rise, bond prices fall, reducing the value of the Portfolio’s share price. High-yield bonds, commonly known as “junk” bonds, involve greater credit and liquidity risks than investment grade bonds. Investing in foreign securities is subject to certain risks not associated with domestic investing, such as currency fluctuations and social, political and economic uncertainties, which could increase volatility. These risks are magnified in emerging or developing markets. The Portfolio may use derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses, and have a potentially large impact on Portfolio performance. Please see the Portfolio’s prospectus for a more complete discussion of these and other risks and the Portfolio’s investment strategies.

All investments are subject to risk including the possible loss of principal. Past performance is no guarantee of future results. All index performance reflects no deduction for fees, expenses or taxes. Please note that an investor cannot invest directly in an index.

The information provided is not intended to be a forecast of future events, a guarantee of future results or investment advice. Views expressed may differ from those of the firm as a whole. Forecasts and predictions are inherently limited and should not be relied upon as an indication of actual or future performance.

VI Western Asset Variable Global High Yield Bond Portfolio

ⁱ   Gross domestic product (“GDP”) is the market value of all final goods and services produced within a country in a given period of time.

ⁱⁱ  The International Monetary Fund (“IMF”) is an organization of 189 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

ⁱⁱⁱ  The Federal Reserve Board (the “Fed”) is responsible for the formulation of U.S. policies designed to promote economic growth, full employment, stable prices and a sustainable pattern of international trade and payments.

^iv  The federal funds rate is the rate charged by one depository institution on an overnight sale of immediately available funds (balances at the Federal Reserve) to another depository institution; the rate may vary from depository institution to depository institution and from day to day.

^v  The European Central Bank (“ECB”) is responsible for the monetary system of the European Union and the euro currency.

^vi  The Bank of England (“BoE”), formally the Governor and Company of the BoE, is the central bank of the United Kingdom. The BoE’s purpose is to maintain monetary and financial stability.

^vii  The Bank of Japan is the central bank of Japan. The bank is responsible for issuing and handling currency and treasury securities, implementing monetary policy, maintaining the stability of the Japanese financial system and the yen currency.

^viii  The People’s Bank of China is the central bank of the People’s Republic of China with the power to carry out monetary policy and regulate financial institutions in mainland China.

^ix  The Bloomberg Barclays U.S. Aggregate Index is a broad-based bond index comprised of government, corporate, mortgage- and asset-backed issues, rated investment grade or higher, and having at least one year to maturity.

^x  The Bloomberg Barclays U.S. Corporate High Yield -2% Issuer Cap Index is an index of the 2% Issuer Cap component of the Bloomberg Barclays U.S. Corporate High Yield Index, which covers the U.S. dollar-denominated, non-investment grade, fixed-rate, taxable corporate bond market.

^xi  The JPMorgan Emerging Markets Bond Index Global (“EMBI Global”) tracks total returns for U.S. dollar-denominated debt instruments issued by emerging market sovereign and quasi-sovereign entities: Brady bonds, loans, Eurobonds and local market instruments.

^xii  The Bloomberg Barclays Global High Yield Index (Hedged) provides a broad-based measure of the global high-yield fixed-income markets, representing the union of the U.S. High-Yield, Pan-European High-Yield, U.S. Emerging Markets High-Yield, CMBS High-Yield and Pan European Emerging Markets High-Yield Indices.

Western Asset Variable Global High Yield Bond Portfolio VII

Portfolio at a glance^†(unaudited)

Investment breakdown (%) as a percent of total investments

† The bar graph above represents the composition of the Portfolio’s investments as of June 30, 2018 and December 31, 2017 and does not include derivatives, such as futures contracts, written options and forward foreign currency contracts. The Portfolio is actively managed. As a result, the composition of the Portfolio’s investments is subject to change at any time.

‡ Represents less than 0.1%.

Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report 1

Portfolio expenses (unaudited)

Example

As a shareholder of the Portfolio, you may incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees; service and/or distribution (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

This example is based on an investment of $1,000 invested on January 1, 2018 and held for the six months ended June 30, 2018.

Actual expenses

The table below titled “Based on Actual Total Return” provides information about actual account values and actual expenses. You may use the information provided in this table, together with the amount you invested, to estimate the expenses that you paid over the period. To estimate the expenses you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period”.

Hypothetical example for comparison purposes

The table below titled “Based on Hypothetical Total Return” provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5.00% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use the information provided in this table to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare the 5.00% hypothetical example relating to the Portfolio with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

Based on actual total return1													Based on hypothetical total return1
	Actual Total  Return2			Beginning Account Value		Ending Account Value		Annualized Expense Ratio			Expenses Paid During the Period3			Hypothetical Annualized Total Return			Beginning Account Value		Ending Account Value		Annualized Expense Ratio			Expenses Paid During the Period3
Class I		-2.68	%	$	1,000.00	$	973.20		0.82	%	$	4.01	Class I		5.00	%	$	1,000.00	$	1,020.73		0.82	%	$	4.11
Class II		-2.73			1,000.00		972.70		1.08			5.28	Class II		5.00			1,000.00		1,019.44		1.08			5.41

2 Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report

¹   For the six months ended June 30, 2018.

² Assumes the reinvestment of all distributions, including returns of capital, if any, at net asset value. Total return is not annualized, as it may not be representative of the total return for the year. Total returns do not reflect expenses associated with separate accounts such as administrative fees, account charges and surrender charges, which, if reflected, would reduce the total returns. 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 Expenses (net of compensating balance arrangements, fee waivers and/or expense reimbursements) are equal to each class’ respective annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (181), then divided by 365.

Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report 3

Spread duration (unaudited)

Economic exposure — June 30, 2018

Spread duration measures the sensitivity to changes in spreads. The spread over Treasuries is the annual risk-premium demanded by investors to hold non-Treasury securities. Spread duration is quantified as the % change in price resulting from a 100 basis points change in spreads. For a security with positive spread duration, an increase in spreads would result in a price decline and a decline in spreads would result in a price increase. This chart highlights the market sector exposure of the Portfolio’s sectors relative to the selected benchmark sectors as of the end of the reporting period.

ABS	— Asset-Backed Securities
Benchmark	— Bloomberg Barclays Global High Yield Index (Hedged)
EM	— Emerging Markets
HY	— High Yield
IG Credit	— Investment Grade Credit
WA Var Global	— Western Asset Variable Global High Yield Bond Portfolio

4 Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report

Effective duration (unaudited)

Interest rate exposure — June 30, 2018

Effective duration measures the sensitivity to changes in relevant interest rates. Effective duration is quantified as the % change in price resulting from a 100 basis points change in interest rates. For a security with positive effective duration, an increase in interest rates would result in a price decline and a decline in interest rates would result in a price increase. This chart highlights the interest rate exposure of the Portfolio’s sectors relative to the selected benchmark sectors as of the end of the reporting period.

ABS	— Asset-Backed Securities
Benchmark	— Bloomberg Barclays Global High Yield Index (Hedged)
EM	— Emerging Markets
HY	— High Yield
IG Credit	— Investment Grade Credit
WA Var Global	— Western Asset Variable Global High Yield Bond Portfolio

Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report 5

Schedule of investments (unaudited)

June 30, 2018

Western Asset Variable Global High Yield Bond Portfolio

Security	Rate				Maturity Date		Face Amount†			Value
Corporate Bonds & Notes — 64.7%
Consumer Discretionary — 15.4%
Auto Components — 1.2%
Adient Global Holdings, Ltd., Senior Notes		4.875	%			8/15/26		670,000		$	604,675	(a)
IHO Verwaltungs GmbH, Senior Secured Notes, (4.750% Cash or 5.500% PIK)		4.750	%			9/15/26		720,000			679,500	(a)(b)
JB Poindexter & Co. Inc., Senior Notes		7.125	%			4/15/26		390,000			401,700	(a)
ZF North America Capital Inc., Senior Notes		4.500	%			4/29/22		218,000			222,143	(a)
Total Auto Components											1,908,018
Diversified Consumer Services — 0.9%
Carriage Services Inc., Senior Notes		6.625	%			6/1/26		390,000			397,313	(a)
Prime Security Services Borrower LLC/Prime Finance, Inc., Secured Notes		9.250	%			5/15/23		851,000			908,187	(a)
Total Diversified Consumer Services											1,305,500
Hotels, Restaurants & Leisure — 3.1%
Bossier Casino Venture Holdco Inc., Senior Secured Bonds (14.000% PIK)		14.000	%			2/9/23		433,444			433,444	(a)(b)(d)(e)
Burger King France SAS, Senior Secured Notes		6.000	%			5/1/24		130,000	EUR		162,231	(a)
Carrols Restaurant Group Inc., Secured Notes		8.000	%			5/1/22		770,000			804,650
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp., Senior Notes		4.625	%			4/1/25		380,000			371,450
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp., Senior Notes		4.875	%			4/1/27		550,000			532,125
Marstons Issuer PLC, Secured Bonds (5.641% to 7/15/19 then 3 mo. GBP LIBOR + 2.550%)		5.641	%			7/15/35		223,000	GBP		267,162	(c)(f)
NCL Corp. Ltd., Senior Notes		4.750	%			12/15/21		371,000			371,000	(a)
Pinnacle Bidco PLC, Senior Secured Notes		6.375	%			2/15/25		110,000	GBP		146,618	(a)
Silversea Cruise Finance Ltd., Senior Secured Notes		7.250	%			2/1/25		262,000			284,296	(a)
VOC Escrow Ltd., Senior Secured Notes		5.000	%			2/15/28		1,460,000			1,386,577	(a)
Total Hotels, Restaurants & Leisure											4,759,553
Household Durables — 0.6%
Lennar Corp., Senior Notes		4.750	%			11/29/27		560,000			527,968
LGI Homes Inc., Senior Notes		6.875	%			7/15/26		390,000			390,000	(a)
Total Household Durables											917,968
Media — 7.5%
Altice France SA, Senior Secured Notes		6.000	%			5/15/22		750,000			753,600	(a)
Altice France SA, Senior Secured Notes		6.250	%			5/15/24		650,000			633,750	(a)
Altice France SA, Senior Secured Notes		7.375	%			5/1/26		2,790,000			2,738,245	(a)
Altice Luxembourg SA, Senior Secured Notes		7.750	%			5/15/22		2,320,000			2,253,300	(a)
CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes		5.125	%	��		5/1/27		720,000			675,450	(a)

See Notes to Financial Statements.

6 Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report

Western Asset Variable Global High Yield Bond Portfolio

Security	Rate			Maturity Date		Face Amount†			Value
Media — continued
CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes		5.000	%		2/1/28		820,000		$	754,400	(a)
DISH DBS Corp., Senior Notes		5.000	%		3/15/23		100,000			87,125
DISH DBS Corp., Senior Notes		5.875	%		11/15/24		1,030,000			875,500
DISH DBS Corp., Senior Notes		7.750	%		7/1/26		2,380,000			2,094,400
Virgin Media Secured Finance PLC, Senior Secured Notes		5.500	%		1/15/25		504,000	GBP		679,039	(c)
Total Media										11,544,809
Specialty Retail — 1.4%
Hertz Corp., Senior Notes		5.875	%		10/15/20		490,000			481,425
Masaria Investments SAU, Senior Secured Bonds		5.000	%		9/15/24		130,000	EUR		143,540	(a)
Masaria Investments SAU, Senior Secured Bonds, (3 mo. Euribor +5.250%)		4.890	%		9/15/24		360,000	EUR		399,808	(a)(f)
Maxeda DIY Holding BV, Senior Secured Notes		6.125	%		7/15/22		339,000	EUR		361,912	(c)
Maxeda DIY Holding BV, Senior Secured Notes		6.125	%		7/15/22		260,000	EUR		277,572	(a)
ServiceMaster Co. LLC, Senior Notes		5.125	%		11/15/24		438,000			425,955	(a)
Total Specialty Retail										2,090,212
Textiles, Apparel & Luxury Goods — 0.7%
CBR Fashion Finance BV, Senior Secured Notes		5.125	%		10/1/22		300,000	EUR		301,131	(c)
Hanesbrands Inc., Senior Notes		4.625	%		5/15/24		90,000			88,200	(a)
Hanesbrands Inc., Senior Notes		4.875	%		5/15/26		730,000			708,100	(a)
Total Textiles, Apparel & Luxury Goods										1,097,431
Total Consumer Discretionary										23,623,491
Consumer Staples — 0.4%
Food Products — 0.1%
Boparan Finance PLC, Senior Secured Notes		5.500	%		7/15/21		170,000	GBP		195,854	(c)
Household Products — 0.3%
Spectrum Brands, Inc., Senior Notes		5.750	%		7/15/25		480,000			476,400
Total Consumer Staples										672,254
Energy — 11.7%
Energy Equipment & Services — 0.3%
Transocean Guardian Ltd., Senior Secured Notes		5.875	%		1/15/24		220,000			219,450	(a)
Transocean, Inc., Senior Notes		6.800	%		3/15/38		240,000			196,200
Total Energy Equipment & Services										415,650
Oil, Gas & Consumable Fuels — 11.4%
Berry Petroleum Co. Escrow		—			—		120,000			0	*(d)(e)(g)
Berry Petroleum Co. Escrow		—			—		630,000			0	*(d)(e)(g)
Blue Racer Midstream LLC / Blue Racer Finance Corp., Senior Notes		6.625	%		7/15/26		80,000			79,376	(a)
Blue Racer Midstream LLC/Blue Racer Finance Corp., Senior Notes		6.125	%		11/15/22		360,000			365,400	(a)

See Notes to Financial Statements.

Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report 7

Schedule of investments (unaudited) (cont’d)

June 30, 2018

Western Asset Variable Global High Yield Bond Portfolio

Security	Rate			Maturity Date		Face Amount†		Value
Oil, Gas & Consumable Fuels — continued
Chesapeake Energy Corp., Senior Notes		8.000	%		1/15/25		350,000	$	357,333	(a)
Chesapeake Energy Corp., Senior Notes		8.000	%		6/15/27		180,000		183,600	(a)
Genesis Energy LP / Genesis Energy Finance Corp., Senior Notes		6.000	%		5/15/23		270,000		266,288
Magnum Hunter Resources Corp. Escrow		—			—		810,000		0	*(d)(e)(g)
MEG Energy Corp., Senior Notes		6.375	%		1/30/23		40,000		37,400	(a)
MEG Energy Corp., Senior Notes		7.000	%		3/31/24		1,350,000		1,265,625	(a)
NGL Energy Partners LP/NGL Energy Finance Corp., Senior Notes		7.500	%		11/1/23		370,000		375,088
Oasis Petroleum Inc., Senior Notes		6.250	%		5/1/26		410,000		414,612	(a)
Petrobras Global Finance BV, Senior Notes		4.375	%		5/20/23		1,140,000		1,071,030
Petrobras Global Finance BV, Senior Notes		7.375	%		1/17/27		670,000		670,837
Petrobras Global Finance BV, Senior Notes		5.999	%		1/27/28		1,260,000		1,142,505	(a)
Petrobras Global Finance BV, Senior Notes		5.750	%		2/1/29		3,980,000		3,504,907
PT Pertamina Persero, Senior Notes		5.250	%		5/23/21		370,000		382,487	(c)
Rockies Express Pipeline LLC, Senior Notes		7.500	%		7/15/38		90,000		106,650	(a)
Targa Resources Partners LP/Targa Resources Partners Finance Corp., Senior Notes		5.250	%		5/1/23		20,000		20,050
Targa Resources Partners LP/Targa Resources Partners Finance Corp., Senior Notes		4.250	%		11/15/23		150,000		144,375
Targa Resources Partners LP/Targa Resources Partners Finance Corp., Senior Notes		5.875	%		4/15/26		1,290,000		1,301,287	(a)
Targa Resources Partners LP/Targa Resources Partners Finance Corp., Senior Notes		5.375	%		2/1/27		25,000		24,313
Targa Resources Partners LP/Targa Resources Partners Finance Corp., Senior Notes		5.000	%		1/15/28		230,000		214,475	(a)
Transportadora de Gas del Peru SA, Senior Notes		4.250	%		4/30/28		1,250,000		1,208,562	(a)
Transportadora de Gas del Sur SA, Senior Notes		6.750	%		5/2/25		500,000		460,000	(a)
Ultrapar International SA, Senior Notes		5.250	%		10/6/26		480,000		447,360	(a)
Whiting Petroleum Corp., Senior Notes		6.250	%		4/1/23		150,000		154,125
Whiting Petroleum Corp., Senior Notes		6.625	%		1/15/26		290,000		299,063	(a)
Williams Cos Inc., Senior Notes		3.700	%		1/15/23		630,000		612,675
Williams Cos Inc., Senior Notes		4.550	%		6/24/24		260,000		261,300
Williams Cos Inc., Senior Notes		7.500	%		1/15/31		680,000		812,158
Williams Cos Inc., Senior Notes		5.750	%		6/24/44		260,000		270,075
WPX Energy, Inc., Senior Notes		5.750	%		6/1/26		150,000		150,141
YPF Sociedad Anonima, Senior Notes		8.500	%		3/23/21		490,000		499,310	(a)
YPF Sociedad Anonima, Senior Notes		8.500	%		7/28/25		400,000		382,380	(a)
Total Oil, Gas & Consumable Fuels									17,484,787
Total Energy									17,900,437

See Notes to Financial Statements.

8 Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report

Western Asset Variable Global High Yield Bond Portfolio

Security	Rate			Maturity Date		Face Amount†			Value
Financials — 9.2%
Banks — 4.7%
Barclays Bank PLC, Subordinated Notes		7.625	%		11/21/22		540,000		$	582,322
CIT Group Inc., Senior Notes		4.125	%		3/9/21		180,000			179,325
CIT Group Inc., Senior Notes		5.000	%		8/15/22		601,000			609,264
CIT Group Inc., Senior Notes		5.000	%		8/1/23		110,000			111,551
CIT Group Inc., Senior Notes		5.250	%		3/7/25		240,000			242,400
Credit Agricole SA, Junior Subordinated Notes (8.125% to 12/23/25 then USD 5 year Swap Rate + 6.185%)		8.125	%		12/23/25		430,000			456,338	(a)(f)
Intesa Sanpaolo SpA, Subordinated Notes		5.710	%		1/15/26		2,070,000			1,895,543	(a)
Itau Unibanco Holding SA Island, Subordinated Notes		5.650	%		3/19/22		400,000			407,000	(c)
NatWest Markets NV, Subordinated Notes		7.750	%		5/15/23		160,000			176,891
Royal Bank of Scotland Group PLC, Junior Subordinated Notes (8.625% to 8/15/21 then USD 5 year Swap Rate + 7.598%)		8.625	%		8/15/21		210,000			223,703	(f)
Royal Bank of Scotland Group PLC, Subordinated Notes		6.000	%		12/19/23		820,000			861,485
Santander UK Group Holdings PLC, Junior Subordinated Bonds, (7.375% to 6/24/22 then GBP 5 year Swap Rate + 5.543%)		7.375	%		6/24/22		310,000	GBP		426,817	(c)(f)(h)
Sberbank of Russia Via SB Capital SA, Subordinated Notes (5.500% to 2/26/19 then 5 year Treasury Constant Maturity Rate + 4.023%)		5.500	%		2/26/24		700,000			703,034	(c)(f)
TC Ziraat Bankasi AS, Senior Notes		5.125	%		5/3/22		350,000			325,484	(a)
Total Banks										7,201,157
Consumer Finance — 0.1%
Navient Corp., Senior Notes		6.750	%		6/15/26		210,000			205,737
Diversified Financial Services — 4.0%
ASP AMC Merger Subordinated Inc., Senior Notes		8.000	%		5/15/25		250,000			208,750	(a)
DAE Funding LLC, Senior Notes		5.000	%		8/1/24		3,633,000			3,498,579	(a)
Garfunkelux Holdco 3 SA, Senior Secured Notes		7.500	%		8/1/22		250,000	EUR		285,296	(c)
Hunt Cos., Inc., Senior Secured Notes		6.250	%		2/15/26		250,000			233,750	(a)
Jerrold Finco PLC, Senior Secured Notes		6.125	%		1/15/24		220,000	GBP		292,904	(a)
LHC3 PLC, Senior Secured Bonds (4.125% PIK)		4.125	%		8/15/24		220,000	EUR		257,237	(a)(b)
Park Aerospace Holdings Ltd., Senior Notes		5.500	%		2/15/24		830,000			821,526	(a)
Travelport Corporate Finance PLC, Senior Secured Notes		6.000	%		3/15/26		462,000			466,620	(a)
Total Diversified Financial Services										6,064,662
Insurance — 0.4%
Fidelity & Guaranty Life Holdings Inc., Senior Notes		5.500	%		5/1/25		210,000			205,275	(a)
Galaxy Bidco Ltd., Senior Secured Notes		6.375	%		11/15/20		280,000	GBP		370,121	(c)
Total Insurance										575,396
Total Financials										14,046,952

See Notes to Financial Statements.

Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report 9

Schedule of investments (unaudited) (cont’d)

June 30, 2018

Western Asset Variable Global High Yield Bond Portfolio

Security	Rate			Maturity Date		Face Amount†			Value
Health Care — 7.7%
Health Care Equipment & Supplies — 0.2%
IDH Finance PLC, Senior Secured Notes		6.250	%		8/15/22		280,000	GBP	$	339,317	(c)
Health Care Providers & Services — 2.1%
Air Medical Group Holdings Inc., Senior Notes		6.375	%		5/15/23		190,000			177,650	(a)
BioScrip Inc., First Lien Notes (1 mo. USD LIBOR + 7.000%)		8.224	%		6/30/22		459,000			479,655	(e)(f)(i)
Centene Corp., Senior Notes		4.750	%		5/15/22		260,000			262,925
Centene Corp., Senior Notes		6.125	%		2/15/24		90,000			95,062
Centene Corp., Senior Notes		4.750	%		1/15/25		750,000			748,125
DaVita HealthCare Partners, Senior Notes		5.750	%		8/15/22		130,000			132,276
HCA Inc., Senior Bonds		5.375	%		2/1/25		30,000			29,616
HCA Inc., Senior Notes		7.500	%		2/15/22		270,000			294,300
HCA Inc., Senior Notes		5.875	%		5/1/23		10,000			10,400
HCA Inc., Senior Secured Notes		5.000	%		3/15/24		530,000			531,325
HCA Inc., Senior Secured Notes		5.250	%		6/15/26		340,000			338,538
Total Health Care Providers & Services										3,099,872
Pharmaceuticals — 5.4%
Endo Finance LLC/Endo Finco, Inc., Senior Notes		7.250	%		1/15/22		100,000			92,500	(a)
Endo Finance LLC/Endo Finco, Inc., Senior Notes		5.375	%		1/15/23		90,000			72,450	(a)
Nidda BondCo GmbH, Senior Notes		5.000	%		9/30/25		280,000	EUR		300,021	(c)
Teva Pharmaceutical Finance Co. BV, Senior Notes		3.650	%		11/10/21		120,000			115,013
Teva Pharmaceutical Finance Netherlands III BV, Senior Notes		2.200	%		7/21/21		5,570,000			5,170,121
Valeant Pharmaceuticals International Inc., Senior Notes		7.250	%		7/15/22		340,000			348,215	(a)
Valeant Pharmaceuticals International Inc., Senior Notes		5.500	%		3/1/23		250,000			233,750	(a)
Valeant Pharmaceuticals International Inc., Senior Notes		6.125	%		4/15/25		2,130,000			1,970,250	(a)
Total Pharmaceuticals										8,302,320
Total Health Care										11,741,509
Industrials — 4.3%
Aerospace & Defense — 0.5%
BBA US Holdings Inc., Senior Notes		5.375	%		5/1/26		430,000			432,692	(a)
BWX Technologies Inc., Senior Notes		5.375	%		7/15/26		290,000			294,350	(a)
Total Aerospace & Defense										727,042
Airlines — 0.0%
Continental Airlines Inc., Pass-Through Certificates, Secured Bonds		8.388	%		11/1/20		30			33
Building Products — 0.4%
Standard Industries Inc., Senior Notes		5.375	%		11/15/24		320,000			317,600	(a)
Standard Industries Inc., Senior Notes		4.750	%		1/15/28		320,000			295,200	(a)
Total Building Products										612,800

See Notes to Financial Statements.

10 Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report

Western Asset Variable Global High Yield Bond Portfolio

Security	Rate			Maturity Date		Face Amount†			Value
Commercial Services & Supplies — 1.4%
ADT Corp., Senior Secured Notes		6.250	%		10/15/21		210,000		$	218,400
Brink’s Co., Senior Notes		4.625	%		10/15/27		530,000			496,875	(a)
GFL Environmental, Inc., Senior Notes		5.375	%		3/1/23		150,000			139,125	(a)
United Rentals North America, Inc., Senior Notes		5.500	%		7/15/25		550,000			556,187
United Rentals North America, Inc., Senior Notes		4.625	%		10/15/25		130,000			124,150
United Rentals North America, Inc., Senior Notes		4.875	%		1/15/28		380,000			352,811
Waste Pro USA, Inc., Senior Notes		5.500	%		2/15/26		240,000			231,300	(a)
Total Commercial Services & Supplies										2,118,848
Containers & Packaging — 0.2%
Hercule Debtco Sarl, Senior Secured Notes (6.750% Cash or 7.500% PIK)		6.750	%		6/30/24		260,000	EUR		297,601	(a)(b)
Machinery — 0.7%
Allison Transmission Inc., Senior Bonds		5.000	%		10/1/24		690,000			680,513	(a)
Allison Transmission Inc., Senior Notes		4.750	%		10/1/27		390,000			364,650	(a)
Total Machinery										1,045,163
Marine — 0.2%
Navios Maritime Acquisition Corp./Navios Acquisition Finance U.S. Inc., Senior Secured Notes		8.125	%		11/15/21		440,000			361,900	(a)
Trading Companies & Distributors — 0.8%
Ashtead Capital Inc., Secured Notes		4.125	%		8/15/25		880,000			825,000	(a)
Ashtead Capital Inc., Secured Notes		4.375	%		8/15/27		250,000			233,125	(a)
Beacon Escrow Corp., Senior Notes		4.875	%		11/1/25		250,000			231,100	(a)
Total Trading Companies & Distributors										1,289,225
Transportation Infrastructure — 0.1%
Neovia Logistics Services LLC/Neovia Logistics Intermediate Finance Corp., Senior Notes (10.000% Cash or 10.750% PIK)		10.000	%		4/1/20		302,977			172,697	(a)(b)
Neovia Logistics Services LLC/SPL Logistics Finance Corp., Senior Secured Notes		8.875	%		8/1/20		50,000			42,750	(a)
Total Transportation Infrastructure										215,447
Total Industrials										6,668,059
Information Technology — 1.8%
Internet Software & Services — 1.0%
IPD 3 BV, Senior Secured Notes		4.500	%		7/15/22		260,000	EUR		308,147	(a)
Match Group Inc., Senior Notes		5.000	%		12/15/27		1,040,000			969,800	(a)
Match Group, Inc., Senior Notes		6.375	%		6/1/24		230,000			242,938
Total Internet Software & Services										1,520,885
IT Services — 0.3%
Vantiv LLC/Vanity Issuer Corp., Senior Notes		4.375	%		11/15/25		433,000			414,801	(a)

See Notes to Financial Statements.

Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report 11

Schedule of investments (unaudited) (cont’d)

June 30, 2018

Western Asset Variable Global High Yield Bond Portfolio

Security	Rate			Maturity Date		Face Amount†			Value
Software — 0.5%
CDK Global Inc., Senior Notes		5.875	%		6/15/26		440,000		$	449,460
j2 Cloud Services LLC/j2 Global Co.-Obligor Inc., Senior Notes		6.000	%		7/15/25		400,000			407,000	(a)
Total Software										856,460
Total Information Technology										2,792,146
Materials — 4.2%
Chemicals — 0.5%
Monitchem HoldCo 2 SA, Senior Notes		6.875	%		6/15/22		350,000	EUR		362,846	(c)
Valvoline, Inc., Senior Notes		5.500	%		7/15/24		350,000			354,375
Total Chemicals										717,221
Containers & Packaging — 1.1%
ARD Securities Finance SARL, Senior Secured Notes, (8.75% PIK)		8.750	%		1/31/23		310,000			316,975	(a)(b)
Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc., Senior Notes		6.000	%		2/15/25		330,000			322,163	(a)
Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc., Senior Secured Notes		4.625	%		5/15/23		220,000			218,075	(a)
Pactiv LLC, Senior Notes		7.950	%		12/15/25		720,000			792,000
Total Containers & Packaging										1,649,213
Metals & Mining — 2.6%
Alcoa Nederland Holding BV, Senior Notes		6.750	%		9/30/24		370,000			392,048	(a)
Alcoa Nederland Holding BV, Senior Notes		7.000	%		9/30/26		250,000			267,500	(a)
Alcoa Nederland Holding BV, Senior Notes		6.125	%		5/15/28		400,000			403,500	(a)
ArcelorMittal SA, Senior Bonds		6.125	%		6/1/25		340,000			368,050
First Quantum Minerals Ltd., Senior Notes		6.500	%		3/1/24		200,000			193,500	(a)
Freeport-McMoRan Inc., Senior Notes		6.875	%		2/15/23		610,000			645,807
Freeport-McMoRan Inc., Senior Notes		3.875	%		3/15/23		1,440,000			1,364,400
Freeport-McMoRan Inc., Senior Notes		5.450	%		3/15/43		360,000			317,592
Midwest Vanadium Pty Ltd., Senior Secured Notes		11.500	%		2/15/18		391,562			4,405	*(a)(j)
Teck Resources Ltd., Senior Notes		4.750	%		1/15/22		110,000			110,780
Total Metals & Mining										4,067,582
Total Materials										6,434,016
Real Estate — 1.5%
Equity Real Estate Investment Trusts (REITs) — 1.0%
CoreCivic Inc., Senior Notes		4.750	%		10/15/27		320,000			291,200
CTR Partnership LP/CareTrust Capital Corp., Senior Notes		5.250	%		6/1/25		340,000			328,950
MPT Operating Partnership LP/MPT Finance Corp., Senior Notes		5.000	%		10/15/27		910,000			871,325
Total Equity Real Estate Investment Trusts (REITs)										1,491,475

See Notes to Financial Statements.

12 Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report

Western Asset Variable Global High Yield Bond Portfolio

Security	Rate			Maturity Date		Face Amount†			Value
Real Estate Management & Development — 0.5%
Tesco Property Finance 6 PLC, Senior Secured Notes		5.411	%		7/13/44		242,880	GBP	$	363,498	(c)
WeWork Cos. Inc., Senior Notes		7.875	%		5/1/25		400,000			385,000	(a)
Total Real Estate Management & Development										748,498
Total Real Estate										2,239,973
Telecommunication Services — 7.4%
Diversified Telecommunication Services — 4.2%
Cogent Communications Group, Inc., Senior Secured Notes		5.375	%		3/1/22		970,000			999,100	(a)
Intelsat Jackson Holdings SA, Senior Bonds		5.500	%		8/1/23		325,000			292,403
Telecom Italia SpA, Senior Notes		5.303	%		5/30/24		1,590,000			1,574,100	(a)
UPCB Finance IV Ltd., Senior Secured Notes		5.375	%		1/15/25		1,320,000			1,260,732	(a)
Wind Tre SpA, Senior Secured Notes		5.000	%		1/20/26		240,000			191,450	(a)
Windstream Services LLC/Windstream Finance Corp., Senior Notes		7.750	%		10/15/20		2,285,000			2,062,213
Total Diversified Telecommunication Services										6,379,998
Wireless Telecommunication Services — 3.2%
CSC Holdings LLC, Senior Notes		6.625	%		10/15/25		900,000			923,625	(a)
Millicom International Cellular SA, Senior Notes		5.125	%		1/15/28		420,000			387,870	(a)
Sprint Capital Corp., Senior Notes		6.875	%		11/15/28		770,000			739,200
Sprint Capital Corp., Senior Notes		8.750	%		3/15/32		230,000			246,675
Sprint Corp., Senior Notes		7.875	%		9/15/23		1,350,000			1,403,156
VEON Holdings BV, Senior Notes		7.504	%		3/1/22		380,000			406,410	(c)
VEON Holdings BV, Senior Notes		5.950	%		2/13/23		780,000			788,190	(a)
Total Wireless Telecommunication Services										4,895,126
Total Telecommunication Services										11,275,124
Utilities — 1.1%
Electric Utilities — 0.7%
NRG REMA LLC, Pass-Through Certificates, Senior Secured Bonds		9.681	%		7/2/26		380,000			273,600
Pampa Energia SA, Senior Notes		7.500	%		1/24/27		480,000			434,400	(a)
PT Perusahaan Listrik Negara, Senior Notes		5.500	%		11/22/21		390,000			408,041	(c)
Total Electric Utilities										1,116,041
Gas Utilities — 0.4%
Suburban Propane Partners LP/Suburban Energy Finance Corp., Senior Notes		5.875	%		3/1/27		550,000			517,000
Total Utilities										1,633,041
Total Corporate Bonds & Notes (Cost — $100,488,111)										99,027,002

See Notes to Financial Statements.

Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report 13

Schedule of investments (unaudited) (cont’d)

June 30, 2018

Western Asset Variable Global High Yield Bond Portfolio

Security	Rate			Maturity Date		Face Amount†			Value
Sovereign Bonds — 19.8%
Argentina — 4.6%
Argentine Republic Government International Bond, Senior Notes		7.500	%		4/22/26		710,000		$	657,638
Argentine Republic Government International Bond, Senior Notes		6.875	%		1/26/27		890,000			786,537
Argentine Republic Government International Bond, Senior Notes		5.875	%		1/11/28		3,080,000			2,512,125
Autonomous City of Buenos Aires Argentina, Senior Notes		7.500	%		6/1/27		600,000			545,136	(a)
Provincia de Buenos Aires, Senior Notes		7.875	%		6/15/27		950,000			836,000	(a)
Provincia de Buenos Aires/Argentina, Senior Notes		9.125	%		3/16/24		890,000			858,850	(a)
Republic of Argentina, Bonds (Argentina Central Bank 7 Day Repo Reference Rate)		40.000	%		6/21/20		24,650,000	ARS		882,580	(f)
Total Argentina										7,078,866
Brazil — 3.3%
Brazilian Government International Bond, Senior Notes		4.250	%		1/7/25		3,690,000			3,491,662
Federative Republic of Brazil, Notes		10.000	%		1/1/21		187,000	BRL		48,966
Federative Republic of Brazil, Notes		10.000	%		1/1/23		3,400,000	BRL		857,310
Federative Republic of Brazil, Notes		10.000	%		1/1/27		3,026,000	BRL		714,756
Total Brazil										5,112,694
Colombia — 1.5%
Colombia Government International Bond, Senior Notes		4.000	%		2/26/24		2,250,000			2,250,563
Costa Rica — 0.2%
Costa Rica Government International Bond, Senior Notes		7.000	%		4/4/44		350,000			343,000	(a)
Dominican Republic — 0.5%
Dominican Republic International Bond, Senior Notes		5.500	%		1/27/25		200,000			198,964	(a)
Dominican Republic International Bond, Senior Notes		6.850	%		1/27/45		600,000			596,058	(a)
Total Dominican Republic										795,022
Ecuador — 1.1%
Ecuador Government International Bond, Senior Notes		10.750	%		3/28/22		250,000			257,613	(a)
Ecuador Government International Bond, Senior Notes		8.750	%		6/2/23		650,000			611,292	(c)
Republic of Ecuador, Senior Bonds		7.950	%		6/20/24		980,000			868,721	(c)
Total Ecuador										1,737,626
Egypt — 0.6%
Arab Republic of Egypt, Senior Bonds		5.577	%		2/21/23		400,000			380,000	(a)
Egypt Government International Bond, Senior Notes		6.125	%		1/31/22		240,000			236,627	(c)
Egypt Government International Bond, Senior Notes		7.500	%		1/31/27		270,000			266,073	(a)
Total Egypt										882,700
El Salvador — 0.2%
El Salvador Government International Bond, Senior Notes		6.375	%		1/18/27		300,000			280,875	(a)

See Notes to Financial Statements.

14 Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report

Western Asset Variable Global High Yield Bond Portfolio

Security	Rate			Maturity Date		Face Amount†			Value
Ghana — 0.2%
Ghana Government International Bond, Bonds		10.750	%		10/14/30		290,000		$	353,162	(a)
Guatemala — 0.4%
Guatemala Government Bond, Senior Notes		4.375	%		6/5/27		620,000			576,600	(a)
Honduras — 0.5%
Honduras Government International Bond, Senior Notes		6.250	%		1/19/27		700,000			704,130	(a)
Indonesia — 0.6%
Indonesia Government International Bond, Senior Notes		5.950	%		1/8/46		650,000			714,317	(c)
Republic of Indonesia, Senior Notes		3.850	%		7/18/27		250,000			237,597	(a)
Total Indonesia										951,914
Ivory Coast — 0.2%
Ivory Coast Government International Bond, Senior Notes		6.125	%		6/15/33		200,000			176,823	(a)
Ivory Coast Government International Bond, Senior Notes, Step Bond		5.750	%		12/31/32		185,000			171,996	(c)
Total Ivory Coast										348,819
Nigeria — 0.3%
Nigeria Government International Bond, Senior Notes		6.500	%		11/28/27		260,000			242,545	(c)
Nigeria Government International Bond, Senior Notes		7.875	%		2/16/32		200,000			196,712	(a)
Total Nigeria										439,257
Russia — 1.6%
Russian Federal Bond, Bonds		8.150	%		2/3/27		57,800,000	RUB		956,014
Russian Federal Bond, Bonds		7.050	%		1/19/28		95,633,000	RUB		1,473,222
Total Russia										2,429,236
Senegal — 0.1%
Senegal Government International Bond, Bonds		6.250	%		5/23/33		250,000			222,313	(a)
South Africa — 0.3%
Republic of South Africa Government International Bond, Senior Notes		4.875	%		4/14/26		400,000			385,615
Sri Lanka — 0.2%
Sri Lanka Government International Bond, Senior Notes		6.250	%		7/27/21		240,000			242,099	(c)
Turkey — 2.0%
Turkey Government International Bond, Senior Notes		4.250	%		4/14/26		2,570,000			2,202,025
Turkey Government International Bond, Senior Notes		4.875	%		10/9/26		900,000			794,033
Total Turkey										2,996,058
Ukraine — 0.6%
Ukraine Government International Bond, Senior Notes		7.750	%		9/1/26		400,000			372,058	(a)
Ukraine Government International Bond, Senior Notes		7.375	%		9/25/32		600,000			516,029	(a)
Total Ukraine										888,087

See Notes to Financial Statements.

Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report 15

Schedule of investments (unaudited) (cont’d)

June 30, 2018

Western Asset Variable Global High Yield Bond Portfolio

Security	Rate			Maturity Date		Face Amount†			Value
Uruguay — 0.4%
Uruguay Government International Bond, Senior Notes		8.500	%		3/15/28		24,910,000	UYU	$	688,504	(c)
Venezuela — 0.4%
Venezuela Government International Bond, Senior Notes		7.750	%		10/13/19		1,474,000			407,856	*(c)(k)
Venezuela Government International Bond, Senior Notes		8.250	%		10/13/24		610,000			168,787	*(c)(k)
Total Venezuela										576,643
Total Sovereign Bonds (Cost — $33,795,935)										30,283,783
Senior Loans — 7.5%
Consumer Discretionary — 4.5%
Auto Components — 0.8%
American Axle & Manufacturing Inc., Term Loan B (1 mo. LIBOR + 2.250%)		3.000	%		4/6/24		902,095			900,065	(f)(l)(m)
American Media Inc., Bridge Loan (1 mo. LIBOR + 8.000%)		10.334	%		9/30/18		270,000			264,769	(f)(l)(m)
Total Auto Components										1,164,834
Hotels, Restaurants & Leisure — 0.8%
Aramark Services, Inc., Term Loan B3 (3 mo. LIBOR + 1.750%)		—			3/11/25		937,493			938,079	(n)
Hilton Worldwide Finance LLC, Term Loan B2 (1 mo. LIBOR + 1.750%)		3.841	%		10/25/23		348,970			349,170	(f)(l)(m)(n)
Total Hotels, Restaurants & Leisure										1,287,249
Media — 1.2%
Charter Communications Operating LLC, 2017 Term Loan B (1 mo. LIBOR + 2.000%)		4.100	%		4/30/25		1,428,916			1,429,241	(f)(l)(m)
Lamar Media Corp., Term Loan B (1 mo. LIBOR + 1.750%)		3.875	%		3/16/25		319,200			319,200	(f)(l)(m)
Total Media										1,748,441
Specialty Retail — 1.7%
PetSmart Inc., Term Loan B2 (1 mo. LIBOR + 3.000%)		4.000	%		3/11/22		2,827,953			2,349,322	(f)(l)(m)(n)
Spencer Gifts LLC, Second Lien Term Loan (1 mo. LIBOR + 8.250%)		10.310	%		6/29/22		410,000			307,500	(f)(l)(m)
Total Specialty Retail										2,656,822
Total Consumer Discretionary										6,857,346
Energy — 0.4%
Energy Equipment & Services — 0.0%
Hercules Offshore Inc., (Wind-down lender claim)		—			—		32,500			27,625	*(e)
Oil, Gas & Consumable Fuels — 0.4%
Chesapeake Energy Corp., Term Loan (1 mo. LIBOR + 7.500%)		9.594	%		8/23/21		510,000			534,544	(f)(l)(m)
Total Energy										562,169
Industrials — 1.1%
Air Freight & Logistics — 0.4%
Avolon TLB Borrower 1 (US) LLC, Term Loan B3 (1 mo. LIBOR + 2.000%)		4.088	%		1/15/25		647,742			640,973	(f)(l)(m)

See Notes to Financial Statements.

16 Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report

Western Asset Variable Global High Yield Bond Portfolio

Security	Rate			Maturity Date		Face Amount†		Value
Professional Services — 0.3%
TransUnion LLC, Term Loan B3 (1 mo. LIBOR + 2.000%)		4.094	%		4/10/23		496,250	$	495,506	(f)(l)(m)
Trading Companies & Distributors — 0.4%
Beacon Roofing Supply Inc., 2017 Term Loan B (1 mo. LIBOR + 2.250%)		4.280	%		1/2/25		498,750		496,957	(f)(l)(m)
Total Industrials									1,633,436
Information Technology — 0.8%
IT Services — 0.8%
First Data Corp., 2024 USD Term Loan (1 mo. LIBOR + 2.000%)		4.091	%		4/26/24		1,255,995		1,250,029	(f)(l)(m)
Materials — 0.6%
Containers & Packaging — 0.6%
Reynolds Group Holdings Inc., USD 2017 Term Loan (1 mo. LIBOR + 2.750%)		4.844	%		2/5/23		991,209		991,071	(f)(l)(m)
Utilities — 0.1%
Electric Utilities — 0.1%
Panda Temple Power LLC, Term Loan (3 mo. LIBOR + 8.000%)		10.046	%		2/7/23		161,367		164,594	(e)(f)(l)(m)(n)
Total Senior Loans (Cost — $11,828,436)									11,458,645
Convertible Bonds & Notes — 1.9%
Consumer Discretionary — 1.2%
Media — 1.1%
DISH Network Corp., Senior Notes		3.375	%		8/15/26		770,000		747,744
GCI Liberty Inc., Senior Notes		1.750	%		9/30/46		230,000		237,808	(a)
Liberty Media Corp., Senior Notes		2.125	%		3/31/48		400,000		395,428	(a)
Live Nation Entertainment Inc., Senior Notes		2.500	%		3/15/23		270,000		280,236	(a)
Total Media									1,661,216
Specialty Retail — 0.1%
RH, PO		0.000	%		6/15/23		110,000		102,832	(a)
Total Consumer Discretionary									1,764,048
Energy — 0.0%
Oil, Gas & Consumable Fuels — 0.0%
Cheniere Energy Inc., Senior Notes		4.250	%		3/15/45		90,000		71,703
Health Care — 0.4%
Pharmaceuticals — 0.4%
Jazz Investments I Ltd., Senior Notes		1.500	%		8/15/24		510,000		533,249	(a)
Information Technology — 0.3%
Internet Software & Services — 0.3%
Akamai Technologies Inc., Senior Notes		0.125	%		5/1/25		120,000		120,463	(a)
Twitter Inc., Senior Notes		1.000	%		9/15/21		280,000		271,630

See Notes to Financial Statements.

Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report 17

Schedule of investments (unaudited) (cont’d)

June 30, 2018

Western Asset Variable Global High Yield Bond Portfolio

Security	Rate			Maturity Date		Face Amount†		Value
Internet Software & Services — continued
Twitter Inc., Senior Notes		0.250	%		6/15/24		60,000	$	62,131	(a)
Total Information Technology									454,224
Total Convertible Bonds & Notes (Cost — $2,812,285)									2,823,224
U.S. Government & Agency Obligations — 1.6%
U.S. Government Obligations — 1.6%
U.S. Treasury Notes		2.125	%		8/15/21		1,550,000		1,526,296
U.S. Treasury Notes		1.625	%		5/31/23		1,000,000		949,551
Total U.S. Government & Agency Obligations (Cost — $2,468,979)									2,475,847
						Shares
Common Stocks — 1.3%
Consumer Discretionary — 0.5%
Hotels, Restaurants & Leisure — 0.4%
Bossier Casino Venture Holdco Inc.							26,303		614,438	(d)(e)
Media — 0.1%
New Cotai LLC/New Cotai Capital Corp., Class B Shares							2		133,897	*(d)(e)
Total Consumer Discretionary									748,335
Energy — 0.6%
Energy Equipment & Services — 0.2%
Hercules Offshore Inc. (Escrow)							17,554		4,950	*(d)(e)
KCAD Holdings I Ltd.							75,024,286		379,623	*(d)(e)
Total Energy Equipment & Services									384,573
Oil, Gas & Consumable Fuels — 0.4%
Berry Petroleum Co.							29,497		359,495	*
Blue Ridge Mountain Resources Inc.							40,967		264,237	*(d)(e)
MWO Holdings LLC							211		0	*(d)(e)(g)
Total Oil, Gas & Consumable Fuels									623,732
Total Energy									1,008,305
Industrials — 0.0%
Marine — 0.0%
Tricer HoldCo, S.C.A.							10,471		43,769	*(d)(e)
Road & Rail — 0.0%
Jack Cooper Enterprises Inc.							936		0	*(d)(e)(g)
Total Industrials									43,769

See Notes to Financial Statements.

18 Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report

Western Asset Variable Global High Yield Bond Portfolio

Security				Shares		Value
Utilities — 0.2%
Electric Utilities — 0.2%
Panda Temple Power LLC					11,090	$	249,525	*(d)(e)
Total Common Stocks (Cost — $3,603,806)							2,049,934
Investment in Underlying Funds — 1.0%
Invesco Senior Loan ETF (Cost — $1,501,860)					65,000		1,488,500	*
	Rate
Convertible Preferred Stocks — 0.3%
Energy — 0.3%
Oil, Gas & Consumable Fuels — 0.3%
Berry Petroleum Co., (6.000% Cash or 6.000% PIK)		6.000	%		33,772		472,808	(b)
Berry Petroleum Co., (6.000% Cash or 6.000% PIK)		6.000	%		506		7,084	(b)(i)
Total Convertible Preferred Stocks (Cost — $317,490)							479,892
Preferred Stocks — 0.0%
Industrials — 0.0%
Marine — 0.0%
Tricer Tracking Preferred Equity Certificates, (8.000% PIK) (Cost — $384,121)		8.000	%		5,026,217		50,262	(b)(d)(e)
Total Investments before Short-Term Investments (Cost — $157,201,024)							150,137,089
Short-Term Investments — 0.0%
Western Asset Government Cash Management Portfolio LLC (Cost — $351)		1.830	%		351		351	(o)
Total Investments — 98.1% (Cost — $157,201,375)							150,137,440
Other Assets in Excess of Liabilities — 1.9%							2,959,586
Total Net Assets — 100.0%						$	153,097,026

† Face amount denominated in U.S. dollars, unless otherwise noted.

* Non-income producing security.

^(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 Trustees.

^(b)  Payment-in-kind security for which the issuer has the option at each interest payment date of making interest payments in cash or additional debt securities.

^(c) 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 Trustees.

^(d) Security is valued in good faith in accordance with procedures approved by the Board of Trustees (Note 1).

^(e) Security is valued using significant unobservable inputs (Note 1).

^(f)  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.

See Notes to Financial Statements.

Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report 19

Schedule of investments (unaudited) (cont’d)

June 30, 2018

Western Asset Variable Global High Yield Bond Portfolio

^(g)  Value is less than $1.

^(h) Security has no maturity date. The date shown represents the next call date.

⁽ⁱ⁾ Restricted security (See Note 9).

^(j) The maturity principal is currently in default as of June 30, 2018.

^(k) The coupon payment on these securities is currently in default as of June 30, 2018.

^(l) Senior loans may be considered restricted in that the Portfolio ordinarily is contractually obligated to receive approval from the agent bank and/or borrower prior to the disposition of a senior loan.

^(m) Interest rates disclosed represent the effective rates on senior loans. Ranges in interest rates are attributable to multiple contracts under the same loan.

⁽ⁿ⁾ All or a portion of this loan is unfunded as of June 30, 2018. The interest rate for fully unfunded term loans is to be determined.

^(o)  In this instance, as defined in the Investment Company Act of 1940, an “Affiliated Company” represents Portfolio ownership of at least 5% of the outstanding voting securities of an issuer, or a company which is under ownership or control. At June 30, 2018, the total market value of investments in Affiliated Companies was $351 and the cost was $351 (See Note 2).

Abbreviations used in this schedule:
ARS	— Argentine Peso
BRL	— Brazilian Real
ETF	— Exchange-Traded Fund
EUR	— Euro
Euribor	— Euro Interbank Offered Rate
GBP	— British Pound
LIBOR	— London Interbank Offered Rate
RUB	— Russian Ruble
UYU	— Uruguayan Peso

At June 30, 2018, the Portfolio had the following open futures contracts:

	Number of Contracts		Expiration Date		Notional Amount		Market Value		Unrealized Appreciation
Contracts to Sell:
Euro Currency Futures		27		9/18	$	4,001,696	$	3,961,069	$	40,627

At June 30, 2018, the Portfolio had the following open forward foreign currency contracts:

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
EUR	853,698	USD	1,060,732	Barclays Bank PLC		7/19/18	$	(62,309)
USD	3,330,979	GBP	2,331,188	Barclays Bank PLC		7/19/18		251,538
USD	116,410	EUR	100,000	Citibank N.A.		7/19/18		(543)
USD	236,001	EUR	200,000	Citibank N.A.		7/19/18		2,096
Total							$	190,782

Abbreviations used in this table:
EUR	— Euro
GBP	— British Pound
USD	— United States Dollar

See Notes to Financial Statements.

20 Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report

Western Asset Variable Global High Yield Bond Portfolio

Summary of Investments by Country*
United States	46.7	%
Brazil	8.2
Argentina	5.9
United Kingdom	4.1
Israel	3.5
France	3.2
Luxembourg	2.8
Italy	2.4
Netherlands	2.4
United Arab Emirates	2.3
Turkey	2.2
Russia	2.1
Colombia	1.8
Indonesia	1.2
Ecuador	1.2
Canada	1.0
Germany	1.0
Ireland	0.9
Peru	0.8
Ukraine	0.6
Egypt	0.6
Dominican Republic	0.5
Honduras	0.5
Uruguay	0.5
Cayman Islands	0.4
Venezuela	0.4
Guatemala	0.4
Spain	0.4
Nigeria	0.3
South Africa	0.3
Ghana	0.2
Ivory Coast	0.2
Costa Rica	0.2
El Salvador	0.2
Jersey	0.2
Sri Lanka	0.2
Senegal	0.1
Zambia	0.1
Australia	0.0	‡
Short-Term Investments	0.0	‡
	100.0	%

* As a percentage of total investments. Please note that the Portfolio holdings are as of June 30, 2018 and are subject to change.

‡ Represents less than 0.1%.

See Notes to Financial Statements.

Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report 21

Statement of assets and liabilities (unaudited)

June 30, 2018

Assets:
Investments in unaffiliated securities, at value (Cost — $157,201,024)	$	150,137,089
Investments in affiliated securities, at value (cost $351)		351
Cash		510,459
Foreign currency, at value (Cost — $202,422)		190,728
Receivable for securities sold		3,945,009
Interest receivable		2,534,382
Unrealized appreciation on forward foreign currency contracts		253,634
Receivable for Portfolio shares sold		74,673
Deposits with brokers for open futures contracts		63,031
Prepaid expenses		1,337
Total Assets		157,710,693
Liabilities:
Payable for securities purchased		4,287,299
Investment management fee payable		88,726
Unrealized depreciation on forward foreign currency contracts		62,852
Payable for Portfolio shares repurchased		59,388
Payable to broker — variation margin on open futures contracts		38,138
Service and/or distribution fees payable		5,349
Trustees’ fees payable		416
Accrued expenses		71,499
Total Liabilities		4,613,667
Total Net Assets	$	153,097,026
Net Assets:
Par value (Note 7)	$	215
Paid-in capital in excess of par value		171,085,448
Undistributed net investment income		3,932,409
Accumulated net realized loss on investments, futures contracts, written options, forward foreign currency contracts and foreign currency transactions		(15,057,603)
Net unrealized depreciation on investments, futures contracts, forward foreign currency contracts and foreign currencies		(6,863,443)
Total Net Assets	$	153,097,026

See Notes to Financial Statements.

22 Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report

Net Assets:
Class I	$126,927,898
Class II	$26,169,128
Shares Outstanding:
Class I	17,876,739
Class II	3,582,198
Net Asset Value:
Class I	$7.10
Class II	$7.31

See Notes to Financial Statements.

Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report 23

Statement of operations (unaudited)

For the Six Months Ended June 30, 2018

Investment Income:
Dividends	$	53,143
Interest from unaffiliated securities		4,723,939
Interest from affiliated investments		7,167
Less: Foreign taxes withheld		(939)
Total Investment Income		4,783,310
Expenses:
Investment management fee (Note 2)		561,887
Shareholder reports		34,626
Service and/or distribution fees (Notes 2 and 5)		32,709
Audit and tax fees		20,939
Fund accounting fees		18,061
Legal fees		13,038
Custody fees		3,844
Trustees’ fees		2,046
Insurance		1,553
Transfer agent fees (Note 5)		1,397
Commitment fees (Note 10)		929
Interest expense		22
Miscellaneous expenses		3,992
Total Expenses		695,043
Net Investment Income		4,088,267
Realized and Unrealized Gain (Loss) on Investments, Futures Contracts, Written Options, Forward Foreign Currency Contracts and Foreign Currency Transactions (Notes 1, 3 and 4):
Net Realized Gain (Loss) From:
Investment transactions in unaffiliated securities		1,228,446
Futures contracts		70,853
Written options		36,451
Forward foreign currency contracts		(168,160)
Foreign currency transactions		(292,017)
Net Realized Gain		875,573
Change in Net Unrealized Appreciation (Depreciation) From:
Investments in unaffiliated securities		(9,614,628)
Futures contracts		40,627
Written options		23,624
Forward foreign currency contracts		221,525
Foreign currencies		(38,655)
Change in Net Unrealized Appreciation (Depreciation)		(9,367,507)
Net Loss on Investments, Futures Contracts, Written Options, Forward Foreign Currency Contracts and Foreign Currency Transactions		(8,491,934)
Decrease in Net Assets From Operations	$	(4,403,667)

See Notes to Financial Statements.

24 Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report

Statements of changes in net assets

For the Six Months Ended June 30, 2018 (unaudited) and the Year Ended December 31, 2017	2018		2017
Operations:
Net investment income	$	4,088,267	$	9,117,254
Net realized gain		875,573		1,379,009
Change in net unrealized appreciation (depreciation)		(9,367,507)		3,593,245
Increase (Decrease) in Net Assets From Operations		(4,403,667)		14,089,508
Distributions to Shareholders From (Notes 1 and 6):
Net investment income		(100,022)		(8,900,018)
Decrease in Net Assets From Distributions to Shareholders		(100,022)		(8,900,018)
Portfolio Share Transactions (Note 7):
Net proceeds from sale of shares		13,965,740		55,508,449
Reinvestment of distributions		100,022		8,900,018
Cost of shares repurchased		(29,137,480)		(56,044,545)
Increase (Decrease) in Net Assets From Portfolio Share Transactions		(15,071,718)		8,363,922
Increase (Decrease) in Net Assets		(19,575,407)		13,553,412
Net Assets:
Beginning of period		172,672,433		159,119,021
End of period*	$	153,097,026	$	172,672,433
*Includes undistributed (overdistributed) net investment income, respectively, of:		$3,932,409		$(55,836)

See Notes to Financial Statements.

Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report 25

Financial highlights

For a share of each class of beneficial interest outstanding throughout each year ended December 31, unless otherwise noted:
Class I Shares1	20182			2017			2016			2015			2014			2013
Net asset value, beginning of period		$7.30			$7.09			$6.53			$7.42			$8.12			$8.12
Income (loss) from operations:
Net investment income		0.18			0.40			0.47			0.47			0.53			0.57
Net realized and unrealized gain (loss)		(0.38)			0.21			0.54			(0.90)			(0.63)			(0.06)
Total income (loss) from operations		(0.20)			0.61			1.01			(0.43)			(0.10)			0.51
Less distributions from:
Net investment income		(0.00)	3		(0.40)			(0.45)			(0.46)			(0.60)			(0.51)
Total distributions		(0.00)	3		(0.40)			(0.45)			(0.46)			(0.60)			(0.51)
Net asset value, end of period		$7.10			$7.30			$7.09			$6.53			$7.42			$8.12
Total return4		(2.68)	%		8.65	%		15.60	%		(5.84)	%		(1.15)	%		6.27	%
Net assets, end of period (millions)		$127			$144			$138			$138			$160			$163
Ratios to average net assets:
Gross expenses		0.82	%5		0.82	%		0.81	%		0.80	%		0.81	%		0.81	%
Net expenses6		0.82	5		0.82			0.81			0.80			0.81			0.81
Net investment income		5.13	5		5.34			6.77			6.36			6.34			6.77
Portfolio turnover rate		62	%		112	%		98	%		82	%		62	%		74	%

¹ Per share amounts have been calculated using the average shares method.

² For the six months ended June 30, 2018 (unaudited).

³ Amount represents less than $0.005 per share.

⁴ Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Total returns do not reflect expenses associated with separate accounts such as administrative fees, account charges and surrender charges which, if reflected, would reduce the total return for all periods shown. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized.

⁵  Annualized.

⁶ As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and expenses, to average net assets of Class I shares did not exceed 0.90%. This expense limitation arrangement cannot be terminated prior to December 31, 2019 without the Board of Trustees’ consent.

See Notes to Financial Statements.

26 Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report

For a share of each class of beneficial interest outstanding throughout each year ended December 31, unless otherwise noted:
Class II Shares1	20182			2017			2016			2015			2014			2013
Net asset value, beginning of period		$7.52			$7.29			$6.70			$7.60			$8.30			$8.29
Income (loss) from operations:
Net investment income		0.18			0.39			0.47			0.46			0.52			0.55
Net realized and unrealized gain (loss)		(0.39)			0.22			0.55			(0.92)			(0.65)			(0.05)
Total income (loss) from operations		(0.21)			0.61			1.02			(0.46)			(0.13)			0.50
Less distributions from:
Net investment income		(0.00)	3		(0.38)			(0.43)			(0.44)			(0.57)			(0.49)
Total distributions		(0.00)	3		(0.38)			(0.43)			(0.44)			(0.57)			(0.49)
Net asset value, end of period		$7.31			$7.52			$7.29			$6.70			$7.60			$8.30
Total return4		(2.73)	%		8.43	%		15.36	%		(6.08)	%		(1.51)	%		6.06	%
Net assets, end of period (000s)		$26,169			$29,168			$20,725			$18,929			$31,611			$43,929
Ratios to average net assets:
Gross expenses		1.08	%5		1.07	%		1.06	%		1.05	%		1.07	%		1.08	%
Net expenses6		1.08	5		1.07			1.06			1.05			1.07			1.08
Net investment income		4.90	5		5.09			6.54			6.08			6.06			6.49
Portfolio turnover rate		62	%		112	%		98	%		82	%		62	%		74	%

¹ Per share amounts have been calculated using the average shares method.

² For the six months ended June 30, 2018 (unaudited).

³ Amount represents less than $0.005 per share.

⁴ Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Total returns do not reflect expenses associated with separate accounts such as administrative fees, account charges and surrender charges which, if reflected, would reduce the total return for all periods shown. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized.

⁵  Annualized.

⁶ As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and expenses, to average net assets of Class II shares did not exceed 1.15%. This expense limitation arrangement cannot be terminated prior to December 31, 2019 without the Board of Trustees’ consent.

See Notes to Financial Statements.

Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report 27

Notes to financial statements (unaudited)

1. Organization and significant accounting policies

Western Asset Variable Global High Yield Bond Portfolio (the “Portfolio”) is a separate diversified investment series of Legg Mason Partners Variable Income Trust (the “Trust”). The Trust, a Maryland statutory trust, is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company.

Shares of the Portfolio may only be purchased or redeemed through variable annuity contracts and variable life insurance policies offered by the separate accounts of participating insurance companies or through eligible pension or other qualified plans.

The following are significant accounting policies consistently followed by the Portfolio and are in conformity with U.S. generally accepted accounting principles (“GAAP”). 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 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 Portfolio holds securities or other assets that are denominated in a foreign currency, the Portfolio 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 Portfolio calculates its net asset value, the Portfolio values these securities as determined in accordance with procedures approved by the Portfolio’s Board of Trustees.

The Board of Trustees is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Legg Mason North Atlantic Fund Valuation

28 Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report

Committee (the “Valuation Committee”). The Valuation Committee, pursuant to the policies adopted by the Board of Trustees, is responsible for making fair value determinations, evaluating the effectiveness of the Portfolio’s pricing policies, and reporting to the Board of Trustees. When determining the reliability of third party pricing information for investments owned by the Portfolio, the Valuation Committee, among other things, conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.

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

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

The Portfolio 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 — 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 Portfolio’s own assumptions in determining the fair value of investments)

Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report 29

Notes to financial statements (unaudited) (cont’d)

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

The following is a summary of the inputs used in valuing the Portfolio’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†:
Corporate bonds & notes:
Consumer discretionary		—	$	23,190,047	$	433,444		$	23,623,491
Energy		—		17,900,437		0	*		17,900,437
Health care		—		11,261,854		479,655			11,741,509
Other corporate bonds & notes		—		45,761,565		—			45,761,565
Sovereign bonds		—		30,283,783		—			30,283,783
Senior loans:
Energy		—		534,544		27,625			562,169
Utilities		—		—		164,594			164,594
Other senior loans		—		10,731,882		—			10,731,882
Convertible bonds & notes		—		2,823,224		—			2,823,224
U.S. government & agency obligations		—		2,475,847		—			2,475,847
Common stocks:
Consumer discretionary		—		—		748,335			748,335
Energy		—		359,495		648,810			1,008,305
Industrials		—		—		43,769			43,769
Utilities		—		—		249,525			249,525
Investment in underlying funds	$	1,488,500		—		—			1,488,500
Convertible preferred stocks:		—		479,892		—			479,892
Preferred stocks		—		—		50,262			50,262
Total long-term investments		1,488,500		145,802,570		2,846,019			150,137,089
Short-term investments†		—		351		—			351
Total investments	$	1,488,500	$	145,802,921	$	2,846,019		$	150,137,440
Other financial instruments:
Futures contracts		40,627		—		—			40,627
Forward foreign currency contracts		—		253,634		—			253,634
Total other financial instruments	$	40,627	$	253,634		—		$	294,261
Total	$	1,529,127	$	146,056,555	$	2,846,019		$	150,431,701
LIABILITIES
Description	Quoted Prices (Level 1)		Other Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Total
Other financial instruments:
Forward foreign currency contracts		—	$	62,852		—		$	62,852

† See Schedule of Investments for additional detailed categorizations.

* Amount represents less than $1.

30 Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report

Investments in Securities	Balance as of December 31, 2017			Accrued Premiums/ Discounts		Realized Gain/(Loss)1		Change in Unrealized Appreciation (Depreciation)2		Purchases
Corporate bonds
Consumer discretionary	$	390,503		$	1,428	$	—	$	(1,428)	$	42,941
Energy		0	*		—		—		—		—
Health care		458,679			391		—		20,585		—
Industrials		127,102			(632)		—		—		—
Materials		0	*		—		(84)		84		—
Senior loans
Consumer discretionary		217,300			(419)		—		90,619		—
Energy		89,713			8		53		10,895		—
Information technology		1,258,238			111		—		(8,320)		—
Utilities		—			(2,000)		—		(35,122)		201,716
Common stocks
Consumer discretionary		412,102			—		—		336,233		—
Energy		414,776			—		—		(30,203)		—
Industrials		30,471			—		—		13,298		—
Utilities		—			—		—		5,588		243,937
Preferred stocks
Industrials		46,542			—		—		—		3,720
	$	3,445,426		$	(1,113)	$	(31)	$	402,229	$	492,314

Investments in Securities (con'd)	Sales		Transfers into Level  33		Transfers out of Level 34		Balance as of June 30, 2018			Net Change in Unrealized Appreciation (Depreciation) for Investments in Securities Still Held at June 30, 20182
Corporate bonds
Consumer discretionary	$	—	$	—	$	—	$	433,444		$	(1,428)
Energy		—		—		—		0	*		—
Health care		—		—		—		479,655			20,585
Industrials		(126,470)		—		—		—			—
Materials		—		—		—		—			—
Senior loans
Consumer discretionary		—		—		(307,500)		—			—
Energy		(73,044)		—		—		27,625			(4,853)
Information technology		—		—		(1,250,029)		—			—
Utilities		—		—		—		164,594			(35,122)
Common stocks
Consumer discretionary		—		—		—		748,335			336,233
Energy		—		264,237		—		648,810			(30,203)
Industrials		—		—		—		43,769			13,298
Utilities		—		—		—		249,525			5,588
Preferred stocks
Industrials		—		—		—		50,262			—
	$	(199,514)	$	264,237		$(1,557,529)	$	2,846,019		$	304,098

Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report 31

Notes to financial statements (unaudited) (cont’d)

The Portfolio’s policy is to recognize transfers between levels as of the end of the reporting period.

* Amount represents less than $1.

¹  This amount is included in net realized gain (loss) from investment transactions in the accompanying Statement of Operations.

²  This amount is included in the change in net unrealized appreciation (depreciation) in the accompanying Statement of Operations. Change in unrealized appreciation (depreciation) includes net unrealized appreciation (depreciation) resulting from changes in investment values during the reporting period and the reversal of previously recorded unrealized appreciation (depreciation) when gains or losses are realized.

³  Transferred into Level 3 as a result of the unavailability of a quoted price in an active market for an identical investment or the unavailability of other significant observable inputs.

⁴  Transferred out of Level 3 as a result of the availability of a quoted price in an active market for an identical investment or the availability of other significant observable inputs.

(b) Written options. When the Portfolio writes an option, an amount equal to the premium received by the Portfolio is recorded as a liability, the value of which is marked-to-market daily to reflect the current market value of the option written. If the option expires, the premium received is recorded as a realized gain. When a written call option is exercised, the difference between the premium received plus the option exercise price and the Portfolio’s basis in the underlying security (in the case of a covered written call option), or the cost to purchase the underlying security (in the case of an uncovered written call option), including brokerage commission, is recognized as a realized gain or loss. When a written put option is exercised, the amount of the premium received is subtracted from the cost of the security purchased by the Portfolio from the exercise of the written put option to form the Portfolio’s basis in the underlying security purchased. The writer or buyer of an option traded on an exchange can liquidate the position before the exercise of the option by entering into a closing transaction. The cost of a closing transaction is deducted from the original premium received resulting in a realized gain or loss to the Portfolio.

The risk in writing a covered call option is that the Portfolio may forego the opportunity of profit if the market price of the underlying security increases and the option is exercised. The risk in writing a put option is that the Portfolio may incur a loss if the market price of the underlying security decreases and the option is exercised. The risk in writing an uncovered call option is that the Portfolio is exposed to the risk of loss if the market price of the underlying security increases. In addition, there is the risk that the Portfolio may not be able to enter into a closing transaction because of an illiquid secondary market.

(c) Futures contracts. The Portfolio 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 Portfolio 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 Portfolio 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

32 Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report

daily, but is recorded as a net variation margin payable or receivable. The daily changes in contract value are recorded as unrealized gains or losses in the Statement of Operations and the Portfolio 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 Portfolio may not be able to enter into a closing transaction because of an illiquid secondary market.

(d) Forward foreign currency contracts. The Portfolio enters into a forward foreign currency contract to hedge against foreign currency exchange rate risk on its non-U.S. dollar denominated securities or to facilitate settlement of a foreign currency denominated portfolio transaction. 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 Portfolio 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 Portfolio 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 Portfolio 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.

(e) Loan participations. The Portfolio may invest in loans arranged through private negotiation between one or more financial institutions. The Portfolio’s investment in any such loan may be in the form of a participation in or an assignment of the loan. In connection with purchasing participations, the Portfolio generally will have no right to enforce compliance by the borrower with the terms of the loan agreement related to the loan, or any rights of off-set against the borrower and the Portfolio may not benefit directly from any collateral supporting the loan in which it has purchased the participation.

The Portfolio assumes the credit risk of the borrower, the lender that is selling the participation and any other persons interpositioned between the Portfolio and the borrower. In the event of the insolvency of the lender selling the participation, the Portfolio may be treated as a general creditor of the lender and may not benefit from any off-set between the lender and the borrower.

(f) Unfunded loan commitments. The Portfolio may enter into certain credit agreements where all or a portion of which may be unfunded. The Portfolio is obligated to fund these commitments at the borrower’s discretion. The commitments are disclosed in the accompanying Schedule of Investments. At June 30, 2018, the Portfolio had sufficient cash and/or securities to cover these commitments.

(g) Foreign currency translation. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts based upon

Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report 33

Notes to financial statements (unaudited) (cont’d)

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 Portfolio 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 Portfolio’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 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 regula-tion of foreign securities markets and the possibility of political or economic instability.

(h) Credit and market risk. The Portfolio invests in high-yield and emerging market instruments that are subject to certain credit and market risks. The yields of high-yield and emerging market debt obligations reflect, among other things, perceived credit and market risks. The Portfolio’s investments in securities rated below investment grade typically involve risks not associated with higher rated securities including, among others, greater risk related to timely and ultimate payment of interest and principal, greater market price volatility and less liquid secondary market trading. The consequences of political, social, economic or diplomatic changes may have disruptive effects on the market prices of investments held by the Portfolio. The Portfolio’s investments in non-U.S. dollar denominated securities may also result in foreign currency losses caused by devaluations and exchange rate fluctuations.

(i) Foreign investment risks. The Portfolio’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 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 Portfolio. Foreign investments may also subject the Portfolio 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.

34 Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report

(j) Counterparty risk and credit-risk-related contingent features of derivative instruments. The Portfolio may invest in certain securities or engage in other transactions,where the Portfolio is exposed to counterparty credit risk in addition to broader market risks. The Portfolio 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 Portfolio’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 Portfolio to increased risk of loss.

With exchange traded and centrally cleared derivatives, there is less counterparty risk to the Portfolio 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 Portfolio 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.

The Portfolio 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 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 Portfolio’s net assets or NAV 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 Portfolio 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 Portfolio 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 over-the-counter traded derivatives. Cash collateral that has been pledged to cover obligations of the Portfolio under derivative contracts, if any,

Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report 35

Notes to financial statements (unaudited) (cont’d)

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 June 30, 2018, the Portfolio held forward foreign currency contracts with credit related contingent features which had a liability position of $62,852. If a contingent feature in the master agreements would have been triggered, the Portfolio would have been required to pay this amount to its derivative counterparties.

(k) Security transactions and investment income. Security transactions are accounted for on a trade date basis. Interest income (including interest income from payment-in-kind securities), adjusted for amortization of premium and accretion of discount, is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities. Foreign dividend income is recorded on the ex-dividend date or as soon as practicable after the Portfolio determines the existence of a dividend declaration after exercising reasonable due diligence. 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 Portfolio may halt any additional interest income accruals and consider the realizability of interest accrued up to the date of default or credit event.

(l) Distributions to shareholders. Distributions from net investment income and distributions of net realized gains, if any, are declared at least annually. Distributions to shareholders of the Portfolio are recorded on the ex-dividend date and are determined in accordance with income tax regulations, which may differ from GAAP.

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

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

(o) Federal and other taxes. It is the Portfolio’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 Portfolio 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 Portfolio’s financial statements.

Management has analyzed the Portfolio’s tax positions taken on income tax returns for all open tax years and has concluded that as of December 31, 2017, no provision for income tax is required in the Portfolio’s financial statements. The Portfolio’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.

36 Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report

Under the applicable foreign tax laws, a withholding tax may be imposed on interest, dividends and capital gains at various rates. Realized gain upon disposition of securities issued in or by certain foreign countries are subject to capital gains tax imposed by those countries.

(p) Reclassification. GAAP requires that certain components of net assets be reclassified to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share.

2. Investment management agreement and other transactions with affiliates

Legg Mason Partners Fund Advisor, LLC (“LMPFA”) is the Portfolio’s investment manager. Western Asset Management Company, LLC (formerly Western Asset Management Company) (“Western Asset”), Western Asset Management Company Limited (“Western Asset London”) and Western Asset Management Company Pte. Ltd. (“Western Singapore”) are the Portfolio’s subadvisers. LMPFA, Western Asset, Western Asset London and Western Singapore are wholly-owned subsidiaries of Legg Mason, Inc. (“Legg Mason”).

Under the investment management agreement, the Portfolio pays an investment management fee, calculated daily and paid monthly, at an annual rate of 0.70% of the Portfolio’s average daily net assets.

LMPFA provides administrative and certain oversight services to the Portfolio. LMPFA delegates to Western Asset the day-to-day portfolio management of the Portfolio. Western Asset London and Western Singapore provide certain subadvisory services to the Portfolio relating to currency transactions and investment in non-U.S. dollar denominated securities and related foreign currency instruments. For its services, LMPFA pays Western Asset monthly 70% of the net management fee it receives from the Portfolio. In turn, Western Asset pays Western Asset London and Western Singapore monthly a subadvisory fee of 0.30% on the assets managed by Western Asset London and Western Singapore.

As a result of expense limitation arrangements between the Portfolio and LMPFA, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and expenses, to average net assets of Class I and Class II shares did not exceed 0.90% and 1.15%, respectively. These expense limitation arrangements cannot be terminated prior to December 31, 2019 without the Board of Trustees’ consent.

LMPFA is permitted to recapture amounts waived and/or reimbursed to a class during the same fiscal year if the class’ total annual 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 LMPFA recapture any amount that would result, on any particular business day of the Portfolio, in the class’ total annual operating expenses exceeding the expense cap or any other lower limit then in effect.

Legg Mason Investor Services, LLC, a wholly-owned broker-dealer subsidiary of Legg Mason, serves as the Portfolio’s sole and exclusive distributor.

Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report 37

Notes to financial statements (unaudited) (cont’d)

All officers and one Trustee of the Trust are employees of Legg Mason or its affiliates and do not receive compensation from the Trust.

3. Investments

During the six months ended June 30, 2018, 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	$	89,740,358	$	11,906,094
Sales		93,647,180		17,370,751

At June 30, 2018, the aggregate cost of investments and the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

	Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Net Unrealized Appreciation/ (Depreciation)
Securities	$	157,201,375	$	2,940,737	$	(10,004,672)	$	(7,063,935)
Futures contracts		—		40,627		—		40,627
Forward foreign currency contracts		—		253,634		(62,852)		190,782

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 June 30, 2018.

ASSET DERIVATIVES1
	Foreign Exchange Risk
Futures contracts2	$	40,627
Forward foreign currency contracts		253,634
Total	$	294,261

LIABILITY DERIVATIVES1
	Foreign Exchange Risk
Forward foreign currency contracts	$	62,852

¹  Generally, the balance sheet location for asset derivatives is receivables/net unrealized appreciation (depreciation) and for liability derivatives is payables/net unrealized appreciation (depreciation).

²  Includes cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only 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 Portfolio’s Statement of Operations for the six months ended June 30, 2018. The first table provides additional detail about the amounts and sources of gains (losses) realized on

38 Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report

derivatives during the period. The second table provides additional information about the change in unrealized appreciation (depreciation) resulting from the Portfolio’s derivatives and hedging activities during the period.

AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED
	Foreign Exchange Risk
Written options	$	36,451
Futures contracts		70,853
Forward foreign currency contracts		(168,160)
Total	$	(60,856)

CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED
	Foreign Exchange Risk
Written options	$	23,624
Futures contracts		40,627
Forward foreign currency contracts		221,525
Total	$	285,776

During the six months ended June 30, 2018, the volume of derivative activity for the Portfolio was as follows:

	Average Market Value
Written options†	$	8,582
Futures contracts (to sell)		3,499,538
Forward foreign currency contracts (to buy)		1,351,291
Forward foreign currency contracts (to sell)		3,653,386

† At June 30, 2018, there were no open positions held in this derivative.

The following table presents the Portfolio’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 Portfolio as of June 30, 2018.

Counterparty	Gross Assets Subject to Master Agreements1		Gross Liabilities Subject to Master Agreements1		Net Assets (Liabilities) Subject to Master Agreements		Collateral Pledged (Received)		Net Amount2
Barclays Bank PLC	$	251,538	$	(62,309)	$	189,229		—	$	189,229
Citibank N.A.		2,096		(543)		1,553		—		1,553
Total	$	253,634	$	(62,852)	$	190,782		—	$	190,782

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 Portfolio has adopted a Rule 12b-1 shareholder services and distribution plan and under that plan the Portfolio pays service and/or distribution fees with respect to its Class II

Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report 39

Notes to financial statements (unaudited) (cont’d)

shares calculated at the annual rate of 0.25% of the average daily net assets of the class. Service and/or distribution fees are accrued daily and paid monthly.

For the six months ended June 30, 2018, class specific expenses were as follows:

	Service and/or Distribution Fees		Transfer Agent Fees
Class I		—	$	1,039
Class II	$	32,709		358
Total	$	32,709	$	1,397

6. Distributions to shareholders by class

	Six Months Ended June 30, 2018		Year Ended December 31, 2017
Net Investment Income:
Class I	$	83,495	$	7,516,849
Class II		16,527		1,383,169
Total	$	100,022	$	8,900,018

7. Shares of beneficial interest

At June 30, 2018, the Trust had an unlimited number of shares of beneficial interest authorized with a par value of $0.00001 per share. The Portfolio has the ability to issue multiple classes of shares. Each class of shares represents an identical interest and has the same rights, except that each class bears certain direct expenses, including those specifically related to the distribution of its shares.

Transactions in shares of each class were as follows:

	Six Months Ended June 30, 2018				Year Ended December 31, 2017
	Shares		Amount		Shares		Amount
Class I
Shares sold		1,303,910	$	9,432,522		4,641,443	$	34,977,067
Shares issued on reinvestment		11,694		83,495		1,033,954		7,516,849
Shares repurchased		(3,093,789)		(22,353,430)		(5,548,003)		(41,866,908)
Net increase (decrease)		(1,778,185)	$	(12,837,413)		127,394	$	627,008
Class II
Shares sold		609,629	$	4,533,218		2,705,045	$	20,531,382
Shares issued on reinvestment		2,249		16,527		184,669		1,383,169
Shares repurchased		(907,892)		(6,784,050)		(1,855,157)		(14,177,637)
Net increase (decrease)		(296,014)	$	(2,234,305)		1,034,557	$	7,736,914

8. Transactions with affiliated companies

As defined by the 1940 Act, an affiliated company is one in which the Portfolio owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. The Portfolio may invest in Western Asset Government Cash Management Portfolio, LLC (“Cash Management Portfolio”), an affiliated private money

40 Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report

market fund managed by Western Asset, the Portfolio’s subadviser. Cash Management Portfolio is available as a cash management vehicle for certain proprietary investment companies affiliated with Legg Mason. While Cash Management Portfolio is not a registered money market fund, it conducts all of its investment activities in accordance with the requirements of Rule 2a-7 under the 1940 Act. Based on the Portfolio’s relative ownership, the following companies were considered affiliated companies for all or some portion of the six months ended June 30, 2018. The following transactions were effected in shares of such companies for the six months ended June 30, 2018.

	Affiliate Value at December  31, 2017		Purchased				Sold				Realized Gain (Loss)		Interest Income		Net Increase (Decrease) in Unrealized Appreciation (Depreciation)		Affiliate Value at June  30, 2018
			Cost		Shares		Cost		Shares
Western Asset Government Cash Management Portfolio LLC	$	2,502,039	$	23,208,852		23,208,852	$	25,710,540		25,710,540		—	$	7,167		—	$	351

9. Restricted securities

The following Portfolio investments are restricted as to resale.

Security	Number of Shares/ Units		Acquisition Date		Cost		Value at 6/30/2018		Value Per Share/Unit		Percent of Net Assets
BioScrip Inc., First Lien Notes, 8.224%, due 6/30/22	$	459,000		6/17	$	455,178	$	479,655	$	104.50		0.31	%
Berry Petroleum Co., Covertible Preferred Stocks		506		2/17		4,835		7,084		14.00		0.00
					$	460,013	$	486,739				0.31	%

10. Redemption facility

The Portfolio and certain other participating funds within the Legg Mason Partners Income Trust, Legg Mason Partners Institutional Trust, Legg Mason Partners Variable Income Trust, and Master Portfolio Trust (the “Participating Funds”), have available an unsecured revolving credit facility (the “Redemption Facility”) from the lenders and The Bank of New York Mellon (“BNY Mellon”), as administrative agent for the lenders. The Redemption Facility is to be used for temporary or emergency purposes as an additional source of liquidity to fund redemptions of shares. Under the agreement, BNY Mellon provides a 364-day revolving credit facility, in the aggregate amount of $220 million. Unless renewed, the agreement will terminate on November 19, 2018. Any borrowings under the Redemption Facility will bear interest at current market rates as set forth in the credit agreement. The annual commitment fee to maintain the Redemption Facility is 0.10% and is incurred on the unused portion of the facility and is allocated to all Participating Funds pro rata based on net assets. For the six months ended June 30, 2018, the Portfolio incurred a commitment fee in the amount of $929. The Portfolio did not utilize the Redemption Facility during the six months ended June 30, 2018.

Western Asset Variable Global High Yield Bond Portfolio 2018 Semi-Annual Report 41

Western Asset

Variable Global High Yield Bond Portfolio

Trustees

Elliot J. Berv

Jane F. Dasher

Mark T. Finn

Stephen R. Gross

Richard E. Hanson, Jr.

Susan M. Heilbron

Chair

Susan B. Kerley

R. Richardson Pettit

Jane Trust

† Prior to May 2, 2018, known as Western Asset Management Company.

* Effective April 9, 2018, BNY became custodian.

Investment manager

Legg Mason Partners Fund Advisor, LLC

Subadviser

Western Asset Management Company,

LLC†

Western Asset Management Company Limited

Western Asset Management Company Pte. Ltd.

Distributor

Legg Mason Investor Services, LLC

Custodian

The Bank of New York Mellon (“BNY”)*

Transfer agent

BNY Mellon Investment Servicing (US) Inc.

4400 Computer Drive

Westborough, MA 01581

Independent registered public accounting firm

PricewaterhouseCoopers LLP

Baltimore, MD

Western Asset Variable Global High Yield Bond Portfolio

The Portfolio is a separate investment series of Legg Mason Partners Variable Income Trust, a Maryland statutory trust.

Western Asset Variable Global High Yield Bond Portfolio

Legg Mason Funds

620 Eighth Avenue, 49^th Floor

New York, NY 10018

The Portfolio files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Portfolio’s Forms N-Q are available on the SEC’s website at www.sec.gov. The Portfolio’s Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C., and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. To obtain information on Form N-Q, shareholders can call the Portfolio at 1-877-721-1926.

Information on how the Portfolio 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 Portfolio uses to determine how to vote proxies related to portfolio transactions are available (1) without charge, upon request, by calling the Portfolio at 1-877-721-1926, (2) at www.leggmason.com/variablefunds 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 Variable Global High Yield Bond Portfolio. This report is not authorized for distribution to prospective investors in the Portfolio unless preceded or accompanied by a current prospectus.

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

www.leggmason.com

© 2018 Legg Mason Investors Services, LLC

Member FINRA, SIPC

Legg Mason Funds Privacy and Security Notice

Your Privacy and the Security of Your Personal Information is Very Important to the Legg Mason Funds

This Privacy and Security Notice (the “Privacy Notice”) addresses the Legg Mason Funds’ privacy and data protection practices with respect to nonpublic personal information the Funds receive. The Legg Mason Funds include any funds sold by the Funds’ distributor, Legg Mason Investor Services, LLC, as well as Legg Mason-sponsored closed-end funds. The provisions of this Privacy Notice apply to your information both while you are a shareholder and after you are no longer invested with the Funds.

The Type of Nonpublic Personal Information the Funds Collect About You

The Funds collect and maintain nonpublic personal information about you in connection with your shareholder account. Such information may include, but is not limited to:

• Personal information included on applications or other forms;

• Account balances, transactions, and mutual fund holdings and positions;

• Bank account information, legal documents, and identity verification documentation;

• Online account access user IDs, passwords, security challenge question responses; and

• Information received from consumer reporting agencies regarding credit history and creditworthiness (such as the amount of an individual’s total debt, payment history, etc.).

How the Funds Use Nonpublic Personal Information About You

The Funds do not sell or share your nonpublic personal information with third parties or with affiliates for their marketing purposes, or with other financial institutions or affiliates for joint marketing purposes, unless you have authorized the Funds to do so. The Funds do not disclose any nonpublic personal information about you except as may be required to perform transactions or services you have authorized or as permitted or required by law. The Funds may disclose information about you to:

• Employees, agents, and affiliates on a “need to know” basis to enable the Funds to conduct ordinary business or to comply with obligations to government regulators;

• Service providers, including the Funds’ affiliates, who assist the Funds as part of the ordinary course of business (such as printing, mailing services, or processing or servicing your account with us) or otherwise perform services on the Funds’ behalf, including companies that may perform statistical analysis, market research and marketing services solely for the Funds;

• Permit access to transfer, whether in the United States or countries outside of the United States to such Funds’ employees, agents and affiliates and service providers as required to enable the Funds to conduct ordinary business, or to comply with obligations to government regulators;

• The Funds’ representatives such as legal counsel, accountants and auditors to enable the Funds to conduct ordinary business, or to comply with obligations to government regulators;

• Fiduciaries or representatives acting on your behalf, such as an IRA custodian or trustee of a grantor trust.

NOT PART OF THE  SEMI-ANNUAL REPORT

Legg Mason Funds Privacy and Security Notice (cont’d)

Except as otherwise permitted by applicable law, companies acting on the Funds’ behalf, including those outside the United States, are contractually obligated to keep nonpublic personal information the Funds provide to them confidential and to use the information the Funds share only to provide the services the Funds ask them to perform.

The Funds may disclose nonpublic personal information about you when necessary to enforce their rights or protect against fraud, or as permitted or required by applicable law, such as in connection with a law enforcement or regulatory request, subpoena, or similar legal process. In the event of a corporate action or in the event a Fund service provider changes, the Funds may be required to disclose your nonpublic personal information to third parties. While it is the Funds’ practice to obtain protections for disclosed information in these types of transactions, the Funds cannot guarantee their privacy policy will remain unchanged.

Keeping You Informed of the Funds’ Privacy and Security Practices

The Funds will notify you annually of their privacy policy as required by federal law. While the Funds reserve the right to modify this policy at any time they will notify you promptly if this privacy policy changes.

The Funds’ Security Practices

The Funds maintain appropriate physical, electronic and procedural safeguards designed to guard your nonpublic personal information. The Funds’ internal data security policies restrict access to your nonpublic personal information to authorized employees, who may use your nonpublic personal information for Fund business purposes only.

Although the Funds strive to protect your nonpublic personal information, they cannot ensure or warrant the security of any information you provide or transmit to them, and you do so at your own risk. In the event of a breach of the confidentiality or security of your nonpublic personal information, the Funds will attempt to notify you as necessary so you can take appropriate protective steps. If you have consented to the Funds using electronic communications or electronic delivery of statements, they may notify you under such circumstances using the most current email address you have on record with them.

In order for the Funds to provide effective service to you, keeping your account information accurate is very important. If you believe that your account information is incomplete, not accurate or not current, if you have questions about the Funds’ privacy practices, or our use of your nonpublic personal information, write the Funds using the contact information on your account statements, email the Funds by clicking on the Contact Us section of the Funds’ website at www.leggmason.com, or contact the Funds at 1-877-721-1926.

Revised April 2018

NOT PART OF THE  SEMI-ANNUAL REPORT

www.leggmason.com

© 2018 Legg Mason Investor Services, LLC

FDXX010090 8/18 SR18-3402

ITEM 2. CODE OF ETHICS.

Not applicable.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6. SCHEDULE OF INVESTMENTS.

Included herein under Item 1.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

Not applicable.

ITEM 11. CONTROLS AND PROCEDURES.

(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 second fiscal quarter of 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 12. EXHIBITS.

(a) (1) Not applicable.

Exhibit 99.CODE ETH

(a) (2) Certifications pursuant to section 302 of the Sarbanes-Oxley Act of 2002 attached hereto.

Exhibit 99.CERT

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto.

Exhibit 99.906CERT

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this Report to be signed on its behalf by the undersigned, there unto duly authorized.

Legg Mason Partners Variable Income Trust

By:	/s/ Jane Trust
	Jane Trust
	Chief Executive Officer
Date:	August 21, 2018

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:	August 21, 2018

By:	/s/ Richard F. Sennett
	Richard F. Sennett
	Principal Financial Officer
Date:	August 21, 2018