ThZeal - The Zeal

N-CSRS 1 d468897dncsrs.htm WESTERN ASSET INVESTMENT GRADE INCOME FUND INC. Western Asset Investment Grade Income Fund Inc.

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 811-02351

Western Asset Investment Grade Income Fund Inc.

(Exact name of registrant as specified in charter)

620 Eighth Avenue, 47^th Floor, New York, NY 10018

(Address of principal executive offices) (Zip code)

Marc A. De Oliveira.

Franklin Templeton

100 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

Registrant’s telephone number, including area code: (888) 777-0102

Date of fiscal year end: December 31

Date of reporting period: June 30, 2021

ITEM 1.

REPORT TO STOCKHOLDERS.

The Semi-Annual Report to Stockholders is filed herewith.

LOGO


Semi-Annual Report		June 30, 2021

WESTERN ASSET

INVESTMENT GRADE

INCOME FUND INC. (PAI)

The Fund intends to no longer mail paper copies of the Fund’s shareholder reports like this one, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary (such as a broker-dealer or bank). Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you invest through a financial intermediary and you already elected to receive shareholder reports electronically (“e-delivery”), you will not be affected by this change and you need not take any action. If you have not already elected e-delivery, you may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary.

You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. That election will apply to all Legg Mason Funds held in your account at that financial intermediary. If you are a direct shareholder with the Fund, you can call the Fund at 1-888-888-0151, or write to the Fund by regular mail at P.O. Box 505000, Louisville, KY 40233 or by overnight delivery to Computershare, 462 South 4th Street, Suite 1600, Louisville, KY 40202 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. That election will apply to all Legg Mason Funds held in your account held directly with the fund complex.

LOGO

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


What’s inside
Letter from the president			III
Performance review			IV
Fund at a glance			1
Schedule of investments			2
Statement of assets and liabilities			20
Statement of operations			21
Statements of changes in net assets			22
Financial highlights			23
Notes to financial statements			24
Additional shareholder information			35
Dividend reinvestment plan			36

Fund objectives

The Fund’s primary investment objective is to seek a high level of current income, consistent with prudent investment risk, through investment in a diversified portfolio of debt securities. To a lesser extent, the Fund may also invest in privately placed debt securities and in certain equity securities. Capital appreciation is a secondary investment objective.

Western Asset Investment Grade Income Fund Inc.

Letter from the president

LOGO

Dear Shareholder,

We are pleased to provide the semi-annual report of Western Asset Investment Grade Income Fund Inc. for the six-month reporting period ended June 30, 2021. Please read on for Fund performance information during the Fund’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.lmcef.com. Here you can gain immediate access to market and investment information, including:

•

Fund prices and performance,

•

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,

LOGO

Jane Trust, CFA

President and Chief Executive Officer

July 30, 2021

Western Asset Investment Grade Income Fund Inc.

III

Performance review

For the six months ended June 30, 2021, Western Asset Investment Grade Income Fund Inc. returned -0.04% based on its net asset value (“NAV”)ⁱ and 0.22% based on its New York Stock Exchange (“NYSE”) market price per share. The Fund’s unmanaged benchmarks, the Bloomberg Barclays U.S. Corporate High Yield Indexⁱⁱ and the Bloomberg Barclays U.S. Credit Indexⁱⁱⁱ, returned 3.62% and -1.28%, respectively, for the same period. The Lipper Corporate Debt Closed-End Funds BBB-Rated Category Average^iv returned -0.06% over the same time frame. Please note that Lipper performance returns are based on each fund’s NAV.

During this six-month period, the Fund made distributions to shareholders totaling $0.28 per share. As of June 30, 2021, the Fund estimates that all of the distributions were sourced from net investment income.* The performance table shows the Fund’s six-month total return based on its NAV and market price as of June 30, 2021. Past performance is no guarantee of future results.


Performance Snapshot as of June 30, 2021 (unaudited)
Price Per Share		6-Month Total Return**
$15.94 (NAV)		-0.04%†
$15.65 (Market Price)		0.22%‡

All figures represent past performance and are not a guarantee of future results. Performance figures for periods shorter than one year represent cumulative figures and are not annualized.

** Total returns are based on changes in NAV or market price, respectively. Returns reflect the deduction of all Fund expenses, including management fees, operating expenses, and other Fund expenses. Returns do not reflect the deduction of brokerage commissions or taxes that investors may pay on distributions or the sale of shares.

† Total return assumes the reinvestment of all distributions, including returns of capital, if any, at NAV.

‡ Total return assumes the reinvestment of all distributions, including returns of capital, if any, in additional shares in accordance with the Fund’s Dividend Reinvestment Plan.

Looking for additional information?

The Fund is traded under the symbol “PAI” and its closing market price is available in most newspapers under the NYSE listings. The daily NAV is available online under the symbol “XPAIX” on most financial websites. Barron’s and The Wall Street Journal’s Monday edition both carry closed-end fund tables that provide additional information. In addition, the Fund issues a quarterly press release that can be found on most major financial websites as well as www.lmcef.com (click on the name of the Fund).

This estimate is not for tax purposes. The Fund will issue a Form 1099 with final composition of the distributions for tax purposes after year-end. A return of capital is not taxable and results in a reduction in the tax basis of a shareholder’s investment. For more information about a distribution’s composition, please refer to the Fund’s distribution press release or, if applicable, the Section 19 notice located in the press release section of our website, www.lmcef.com (click on the name of the Fund).

Western Asset Investment Grade Income Fund Inc.

Performance review (cont’d)

In a continuing effort to provide information concerning the Fund, shareholders may call 1-888-777-0102 (toll free), Monday through Friday from 8:00 a.m. to 5:30 p.m. Eastern Time, for the Fund’s current NAV, market price and other information.

Thank you for your investment in Western Asset Investment Grade Income Fund Inc. As always, we appreciate that you have chosen us to manage your assets and we remain focused on achieving the Fund’s investment goals.

Sincerely,

LOGO

Jane Trust, CFA

President and Chief Executive Officer

July 30, 2021

RISKS: The Fund is a diversified closed-end management investment company designed primarily as a long-term investment and not as a trading vehicle. The Fund is not intended to be a complete investment program and, due to the uncertainty inherent in all investments, there can be no assurance that the Fund will achieve its investment objectives. The Fund’s common stock is traded on the New York Stock Exchange. Similar to stocks, the Fund’s share price will fluctuate with market conditions and, at the time of sale, may be worth more or less than the original investment. Shares of closed-end funds often trade at a discount to their net asset value. Diversification does not assure against market loss. The Fund’s investments are subject to a number of risks, including interest rate, credit and inflation risks. As interest rates rise, bond prices fall, reducing the value of a fixed income investment’s price. The Fund may invest in high-yield bonds (commonly known as “junk” bonds), which are rated below investment grade and carry more risk than higher-rated securities. To the extent that the Fund invests in asset-backed, mortgage-backed or mortgage-related securities, its exposure to prepayment and extension risks may be greater than if it invested in other fixed income securities. Leverage may result in greater volatility of NAV and the market price of common shares and increases a shareholder’s risk of loss. The Fund may invest, to a limited extent, in foreign securities, including emerging or developing markets. 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 result in significant volatility. Emerging market countries tend to have economic, political, and legal systems that are less developed and are less stable than those of more developed countries. The Fund may make significant investments in derivative instruments. Derivative instruments can be illiquid, may disproportionately increase losses, and have a potentially large impact on Fund performance. The Fund may also invest in money market funds, including funds affiliated with the Fund’s investment adviser and subadviser. For more information on Fund risks, see Summary of information regarding the Fund—Principal Risk Factors in the Fund’s most recent annual report.

Western Asset Investment Grade Income Fund Inc.

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

ⁱ

Net asset value (“NAV”) is calculated by subtracting total liabilities and outstanding preferred stock (if any) from the closing value of all securities held by the Fund (plus all other assets) and dividing the result (total net assets) by the total number of the common shares outstanding. The NAV fluctuates with changes in the market prices of securities in which the Fund has invested. However, the price at which an investor may buy or sell shares of the Fund is the Fund’s market price as determined by supply of and demand for the Fund’s shares.

ⁱⁱ

The Bloomberg Barclays U.S. Corporate High Yield Index covers the universe of fixed-rate, non-investment grade debt, including corporate and non-corporate sectors. Pay-in-kind (“PIK”) bonds, Eurobonds and debt issues from countries designated as emerging markets are excluded, but Canadian and global bonds (SEC registered) of issuers in non-emerging market countries are included. Original issue zero coupon bonds, step-up coupon structures and 144-A securities are also included.

ⁱⁱⁱ	The Bloomberg Barclays U.S. Credit Index is an index composed of corporate and non-corporate debt issues that are investment grade (rated Baa3/BBB- or higher).

^iv

Lipper, Inc., a wholly-owned subsidiary of Refinitiv, provides independent insight on global collective investments. Returns are based on the six-month period ended June 30, 2021, including the reinvestment of all distributions, including returns of capital, if any, calculated among the 6 funds in the Fund’s Lipper category.

Western Asset Investment Grade Income Fund Inc.

Fund at a glance^† (unaudited)

Investment breakdown (%) as a percent of total investments

LOGO

†	The bar graph above represents the Fund’s portfolio as of June 30, 2021 and December 31, 2020, and does not include derivatives, such as futures contracts. The Fund’s portfolio is actively managed. As a result, the composition of its portfolio holdings and sectors is subject to change at any time.

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

Schedule of investments (unaudited)

June 30, 2021

Western Asset Investment Grade Income Fund Inc.


Security	Rate			Maturity Date		Face Amount		Value
Corporate Bonds & Notes — 91.1%
Communication Services — 8.4%
Diversified Telecommunication Services — 1.8%
AT&T Inc., Senior Notes		4.300	%		2/15/30	$	80,000	$	92,539
AT&T Inc., Senior Notes		4.500	%		5/15/35		360,000		423,117
AT&T Inc., Senior Notes		6.350	%		3/15/40		50,000		68,536
AT&T Inc., Senior Notes		4.900	%		6/15/42		150,000		181,843
AT&T Inc., Senior Notes		4.800	%		6/15/44		210,000		252,532
AT&T Inc., Senior Notes		4.550	%		3/9/49		310,000		365,183
AT&T Inc., Senior Notes		3.800	%		12/1/57		40,000		41,751	^(a)
AT&T Inc., Senior Notes		3.500	%		2/1/61		70,000		69,237
British Telecommunications PLC, Senior Notes		9.625	%		12/15/30		70,000		108,526
Corning Inc., Senior Notes		3.900	%		11/15/49		130,000		146,199
Telefonica Emisiones SA, Senior Notes		7.045	%		6/20/36		60,000		86,512
Verizon Communications Inc., Senior Notes		5.500	%		3/16/47		630,000		883,400
Total Diversified Telecommunication Services									2,719,375
Media — 4.4%
CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes		4.500	%		5/1/32		580,000		603,035
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., Senior Secured Notes		6.384	%		10/23/35		110,000		147,269
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., Senior Secured Notes		6.484	%		10/23/45		260,000		358,675
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., Senior Secured Notes		5.375	%		5/1/47		350,000		429,612
Comcast Corp., Senior Notes		6.450	%		3/15/37		220,000		319,762
Comcast Corp., Senior Notes		6.950	%		8/15/37		160,000		243,924
Comcast Corp., Senior Notes		6.400	%		5/15/38		950,000		1,404,989
Fox Corp., Senior Notes		5.476	%		1/25/39		510,000		660,627
Time Warner Cable LLC, Senior Secured Notes		6.550	%		5/1/37		180,000		245,789
Time Warner Cable LLC, Senior Secured Notes		7.300	%		7/1/38		200,000		292,454
Time Warner Cable LLC, Senior Secured Notes		6.750	%		6/15/39		10,000		13,962
Time Warner Cable LLC, Senior Secured Notes		5.500	%		9/1/41		50,000		62,062
Time Warner Entertainment Co. LP, Senior Secured Notes		8.375	%		3/15/23		180,000		203,494
Time Warner Entertainment Co. LP, Senior Secured Notes		8.375	%		7/15/33		410,000		621,992

See Notes to Financial Statements.

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

Western Asset Investment Grade Income Fund Inc.


Security	Rate			Maturity Date		Face Amount		Value
Media — continued
Walt Disney Co., Senior Notes		6.550	%		3/15/33	$	545,000	$	777,011
Walt Disney Co., Senior Notes		7.750	%		12/1/45		130,000		230,032
Total Media									6,614,689
Wireless Telecommunication Services — 2.2%
America Movil SAB de CV, Senior Notes		6.125	%		3/30/40		850,000		1,210,760
Sprint Corp., Senior Notes		7.250	%		9/15/21		640,000		650,794
Sprint Corp., Senior Notes		7.875	%		9/15/23		340,000		386,691
Telefonica Europe BV, Senior Notes		8.250	%		9/15/30		230,000		337,431
T-Mobile USA Inc., Senior Notes		2.625	%		2/15/29		110,000		108,762
T-Mobile USA Inc., Senior Notes		2.875	%		2/15/31		80,000		79,500
T-Mobile USA Inc., Senior Secured Notes		4.375	%		4/15/40		60,000		70,526
T-Mobile USA Inc., Senior Secured Notes		4.500	%		4/15/50		210,000		250,316
Vodafone Group PLC, Senior Notes		5.250	%		5/30/48		210,000		277,214
Vodafone Group PLC, Senior Notes		4.250	%		9/17/50		10,000		11,702
Total Wireless Telecommunication Services									3,383,696
Total Communication Services									12,717,760
Consumer Discretionary — 4.1%
Automobiles — 0.8%
General Motors Co., Senior Notes		5.400	%		10/2/23		130,000		143,227
General Motors Co., Senior Notes		6.125	%		10/1/25		190,000		225,055
General Motors Co., Senior Notes		6.600	%		4/1/36		170,000		233,645
General Motors Co., Senior Notes		6.750	%		4/1/46		270,000		390,076
Nissan Motor Co. Ltd., Senior Notes		4.810	%		9/17/30		200,000		226,007	^(a)
Total Automobiles									1,218,010
Hotels, Restaurants & Leisure — 1.9%
Genting New York LLC/GENNY Capital Inc., Senior Notes		3.300	%		2/15/26		550,000		556,366	^(a)
Marriott International Inc., Senior Notes		3.600	%		4/15/24		200,000		213,437
McDonald’s Corp., Senior Notes		4.700	%		12/9/35		150,000		186,443
McDonald’s Corp., Senior Notes		4.875	%		12/9/45		230,000		296,770
McDonald’s Corp., Senior Notes		4.450	%		9/1/48		10,000		12,466
Melco Resorts Finance Ltd., Senior Notes		5.375	%		12/4/29		380,000		402,088	^(a)
Sands China Ltd., Senior Notes		4.600	%		8/8/23		200,000		213,063
Sands China Ltd., Senior Notes		5.125	%		8/8/25		450,000		503,905
Sands China Ltd., Senior Notes		5.400	%		8/8/28		200,000		232,438
Sands China Ltd., Senior Notes		4.375	%		6/18/30		200,000		216,972
Total Hotels, Restaurants & Leisure									2,833,948
Household Durables — 0.4%
Lennar Corp., Senior Notes		5.000	%		6/15/27		250,000		290,834

See Notes to Financial Statements.

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

Schedule of investments (unaudited) (cont’d)

June 30, 2021

Western Asset Investment Grade Income Fund Inc.


Security	Rate			Maturity Date		Face Amount		Value
Household Durables — continued
MDC Holdings Inc., Senior Notes		2.500	%		1/15/31	$	100,000	$	97,549
MDC Holdings Inc., Senior Notes		6.000	%		1/15/43		200,000		257,995
Total Household Durables									646,378
Internet & Direct Marketing Retail — 0.3%
MercadoLibre Inc., Senior Notes		2.375	%		1/14/26		470,000		473,647
Specialty Retail — 0.7%
Home Depot Inc., Senior Notes		3.900	%		12/6/28		590,000		687,816
Home Depot Inc., Senior Notes		3.350	%		4/15/50		50,000		55,376
Lithia Motors Inc., Senior Notes		4.625	%		12/15/27		110,000		116,688	^(a)
Lithia Motors Inc., Senior Notes		3.875	%		6/1/29		190,000		197,182	^(a)
Total Specialty Retail									1,057,062
Total Consumer Discretionary									6,229,045
Consumer Staples — 3.5%
Beverages — 1.6%
Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide Inc., Senior Notes		4.900	%		2/1/46		840,000		1,065,093
Anheuser-Busch InBev Worldwide Inc., Senior Notes		4.600	%		4/15/48		70,000		85,624
Coca-Cola Co., Senior Notes		4.125	%		3/25/40		180,000		215,857
Coca-Cola Co., Senior Notes		4.200	%		3/25/50		110,000		138,813
Pernod Ricard SA, Senior Notes		5.500	%		1/15/42		670,000		920,619	^(a)
Total Beverages									2,426,006
Food Products — 0.1%
Kraft Heinz Foods Co., Senior Notes		5.000	%		6/4/42		110,000		134,573
Tobacco — 1.8%
Altria Group Inc., Senior Notes		3.800	%		2/14/24		190,000		204,305
Altria Group Inc., Senior Notes		4.400	%		2/14/26		410,000		464,115
Altria Group Inc., Senior Notes		4.800	%		2/14/29		870,000		1,009,282
Philip Morris International Inc., Senior Notes		4.500	%		3/20/42		100,000		118,994
Reynolds American Inc., Senior Notes		8.125	%		5/1/40		270,000		394,666
Reynolds American Inc., Senior Notes		7.000	%		8/4/41		320,000		421,683
Reynolds American Inc., Senior Notes		5.850	%		8/15/45		90,000		110,373
Total Tobacco									2,723,418
Total Consumer Staples									5,283,997
Energy — 15.4%
Energy Equipment & Services — 0.1%
Halliburton Co., Senior Notes		5.000	%		11/15/45		200,000		244,083
Oil, Gas & Consumable Fuels — 15.3%
Apache Corp., Senior Notes		6.000	%		1/15/37		106,000		121,876

See Notes to Financial Statements.

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

Western Asset Investment Grade Income Fund Inc.


Security	Rate			Maturity Date		Face Amount		Value
Oil, Gas & Consumable Fuels — continued
Apache Corp., Senior Notes		5.100	%		9/1/40	$	20,000	$	20,975
Apache Corp., Senior Notes		5.250	%		2/1/42		90,000		95,297
BP Capital Markets America Inc., Senior Notes		3.410	%		2/11/26		440,000		481,620
Cameron LNG LLC, Senior Secured Notes		3.302	%		1/15/35		20,000		21,499	^(a)
Cameron LNG LLC, Senior Secured Notes		3.701	%		1/15/39		40,000		44,675	^(a)
Chevron USA Inc., Senior Notes		6.000	%		3/1/41		390,000		571,420
Chevron USA Inc., Senior Notes		5.250	%		11/15/43		150,000		204,191
Cimarex Energy Co., Senior Notes		4.375	%		6/1/24		600,000		653,281
Cimarex Energy Co., Senior Notes		3.900	%		5/15/27		170,000		187,587
ConocoPhillips, Senior Notes		6.500	%		2/1/39		810,000		1,199,009
Continental Resources Inc., Senior Notes		4.500	%		4/15/23		400,000		417,362
Continental Resources Inc., Senior Notes		4.375	%		1/15/28		140,000		155,273
Devon Energy Corp., Senior Notes		5.850	%		12/15/25		350,000		411,193
Devon Energy Corp., Senior Notes		4.500	%		1/15/30		70,000		77,021	^(a)
Devon Energy Corp., Senior Notes		5.600	%		7/15/41		320,000		396,324
Ecopetrol SA, Senior Notes		5.375	%		6/26/26		540,000		596,079
Energy Transfer LP, Junior Subordinated Notes (6.750% to 5/15/25 then 5 year Treasury Constant Maturity Rate + 5.134%)		6.750	%		5/15/25		210,000		212,152	^(b)(c)
Energy Transfer LP, Junior Subordinated Notes (7.125% to 5/15/30 then 5 year Treasury Constant Maturity Rate + 5.306%)		7.125	%		5/15/30		560,000		579,600	^(b)(c)
Energy Transfer LP, Senior Notes		4.200	%		9/15/23		860,000		920,551
Energy Transfer LP, Senior Notes		5.250	%		4/15/29		30,000		35,463
Energy Transfer LP, Senior Notes		6.625	%		10/15/36		20,000		26,673
Energy Transfer LP, Senior Notes		5.800	%		6/15/38		40,000		49,873
Enterprise Products Operating LLC, Senior Notes		6.125	%		10/15/39		320,000		450,309
Enterprise Products Operating LLC, Senior Notes		3.950	%		1/31/60		100,000		111,742
Enterprise Products Operating LLC, Senior Notes (5.375% to 2/15/28 then 3 mo. USD LIBOR + 2.570%)		5.375	%		2/15/78		360,000		375,229	^(c)
EOG Resources Inc., Senior Notes		4.375	%		4/15/30		240,000		284,399
Exxon Mobil Corp., Senior Notes		3.482	%		3/19/30		200,000		224,759
Exxon Mobil Corp., Senior Notes		4.227	%		3/19/40		140,000		167,339
KazMunayGas National Co. JSC, Senior Notes		3.500	%		4/14/33		200,000		207,731	^(a)
Kinder Morgan Inc., Senior Notes		7.800	%		8/1/31		2,000,000		2,865,601
MPLX LP, Senior Notes		4.800	%		2/15/29		60,000		70,462
MPLX LP, Senior Notes		4.500	%		4/15/38		380,000		436,600
Occidental Petroleum Corp., Senior Notes		2.700	%		8/15/22		980,000		1,000,957
Occidental Petroleum Corp., Senior Notes		7.500	%		5/1/31		465,000		586,500

See Notes to Financial Statements.

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

Schedule of investments (unaudited) (cont’d)

June 30, 2021

Western Asset Investment Grade Income Fund Inc.


Security	Rate			Maturity Date		Face Amount		Value
Oil, Gas & Consumable Fuels — continued
Parsley Energy LLC/Parsley Finance Corp., Senior Notes		5.625	%		10/15/27	$	120,000	$	130,003	^(a)
Parsley Energy LLC/Parsley Finance Corp., Senior Notes		4.125	%		2/15/28		200,000		210,894	^(a)
Petrobras Global Finance BV, Senior Notes		7.375	%		1/17/27		190,000		234,417
Petrobras Global Finance BV, Senior Notes		6.900	%		3/19/49		280,000		334,180
Petrobras Global Finance BV, Senior Notes		5.500	%		6/10/51		100,000		100,160
Petrobras Global Finance BV, Senior Notes		6.850	%		6/5/2115		300,000		343,305
Petroleos Mexicanos, Senior Notes		6.875	%		8/4/26		450,000		492,367
Petroleos Mexicanos, Senior Notes		6.625	%		6/15/35		1,005,000		971,835
Phillips 66, Senior Notes		5.875	%		5/1/42		160,000		219,113
Qatar Petroleum, Senior Notes		3.300	%		7/12/51		490,000		490,000	^(a)(d)
Range Resources Corp., Senior Notes		9.250	%		2/1/26		460,000		507,955
Shell International Finance BV, Senior Notes		6.375	%		12/15/38		250,000		371,283
Transcontinental Gas Pipe Line Co. LLC, Senior Notes		7.850	%		2/1/26		470,000		597,477
Transcontinental Gas Pipe Line Co. LLC, Senior Notes		7.250	%		12/1/26		230,000		295,189
Transcontinental Gas Pipe Line Co. LLC, Senior Notes		3.250	%		5/15/30		130,000		140,872
Transcontinental Gas Pipe Line Co. LLC, Senior Notes		5.400	%		8/15/41		310,000		403,325
Transcontinental Gas Pipe Line Co. LLC, Senior Notes		3.950	%		5/15/50		30,000		33,678
Western Midstream Operating LP, Senior Notes		4.650	%		7/1/26		660,000		706,507
Western Midstream Operating LP, Senior Notes		4.750	%		8/15/28		680,000		736,811
Western Midstream Operating LP, Senior Notes		5.300	%		2/1/30		90,000		101,058
Western Midstream Operating LP, Senior Notes		5.450	%		4/1/44		80,000		86,586
Western Midstream Operating LP, Senior Notes		6.500	%		2/1/50		270,000		313,369
Williams Cos. Inc., Senior Notes		7.500	%		1/15/31		47,000		65,184
Williams Cos. Inc., Senior Notes		7.750	%		6/15/31		37,000		51,493
Williams Cos. Inc., Senior Notes		8.750	%		3/15/32		610,000		938,423
Total Oil, Gas & Consumable Fuels									23,136,106
Total Energy									23,380,189
Financials — 31.0%
Banks — 19.2%
Banco Mercantil del Norte SA, Junior
Subordinated Notes (7.500% to 6/27/29 then 10 year Treasury Constant Maturity Rate + 5.470%)		7.500	%		6/27/29		200,000		226,250	^(a)(b)(c)

See Notes to Financial Statements.

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

Western Asset Investment Grade Income Fund Inc.


Security	Rate			Maturity Date		Face Amount		Value
Banks — continued
Banco Mercantil del Norte SA, Junior Subordinated Notes (8.375% to 10/14/30 then 10 year Treasury Constant Maturity Rate + 7.760%)		8.375	%		10/14/30	$	250,000	$	302,925	^(a)(b)(c)
Banco Santander SA, Senior Notes		3.848	%		4/12/23		400,000		423,440
Banco Santander SA, Senior Notes		3.490	%		5/28/30		200,000		216,196
Bank of America Corp., Senior Notes		5.875	%		2/7/42		320,000		461,428
Bank of America Corp., Senior Notes (3.458% to 3/15/24 then 3 mo. USD LIBOR + 0.970%)		3.458	%		3/15/25		70,000		74,853	^(c)
Bank of America Corp., Senior Notes (4.083% to 3/20/50 then 3 mo. USD LIBOR + 3.150%)		4.083	%		3/20/51		160,000		191,576	^(c)
Bank of America Corp., Subordinated Notes		6.110	%		1/29/37		320,000		438,284
Bank of America Corp., Subordinated Notes		7.750	%		5/14/38		900,000		1,422,905
Barclays Bank PLC, Subordinated Notes		7.625	%		11/21/22		450,000		490,971
Barclays PLC, Junior Subordinated Notes (6.125% to 6/15/26 then 5 year Treasury Constant Maturity Rate + 5.867%)		6.125	%		12/15/25		1,060,000		1,175,932	^(b)(c)
Barclays PLC, Subordinated Notes (5.088% to 6/20/29 then 3 mo. USD LIBOR + 3.054%)		5.088	%		6/20/30		640,000		746,953	^(c)
BNP Paribas SA, Senior Notes (5.198% to 1/10/29 then 3 mo. USD LIBOR + 2.567%)		5.198	%		1/10/30		280,000		337,573	^(a)(c)
BPCE SA, Subordinated Notes		5.150	%		7/21/24		410,000		457,007	^(a)
Citigroup Inc., Senior Notes		8.125	%		7/15/39		251,000		434,682
Citigroup Inc., Senior Notes		5.875	%		1/30/42		240,000		345,840
Citigroup Inc., Subordinated Notes		5.500	%		9/13/25		750,000		874,082
Citigroup Inc., Subordinated Notes		6.125	%		8/25/36		404,000		559,661
Citigroup Inc., Subordinated Notes		6.675	%		9/13/43		370,000		569,797
Commonwealth Bank of Australia, Subordinated Notes		3.743	%		9/12/39		220,000		242,988	^(a)
Cooperatieve Rabobank UA, Senior Notes		5.750	%		12/1/43		450,000		637,176
Cooperatieve Rabobank UA, Senior Notes		5.250	%		8/4/45		340,000		456,936
Credit Agricole SA, Junior Subordinated Notes (8.125% to 12/23/25 then USD 5 year ICE Swap Rate + 6.185%)		8.125	%		12/23/25		1,040,000		1,267,095	^(a)(b)(c)
Danske Bank A/S, Senior Notes		5.000	%		1/12/22		1,780,000		1,821,444	^(a)
Danske Bank A/S, Senior Notes		5.375	%		1/12/24		230,000		255,164	^(a)
HSBC Holdings PLC, Junior Subordinated Notes (4.600% to 6/17/31 then 5 year Treasury Constant Maturity Rate + 3.649%)		4.600	%		12/17/30		320,000		332,800	^(b)(c)

See Notes to Financial Statements.

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

Schedule of investments (unaudited) (cont’d)

June 30, 2021

Western Asset Investment Grade Income Fund Inc.


Security	Rate			Maturity Date		Face Amount		Value
Banks — continued
HSBC Holdings PLC, Junior Subordinated Notes (6.500% to 3/23/28 then USD 5 year ICE Swap Rate + 3.606%)		6.500	%		3/23/28	$	300,000	$	344,627	^(b)(c)
HSBC Holdings PLC, Senior Notes		4.950	%		3/31/30		200,000		241,609
HSBC Holdings PLC, Subordinated Notes		4.250	%		8/18/25		210,000		232,767
HSBC Holdings PLC, Subordinated Notes		7.625	%		5/17/32		70,000		98,283
ING Bank NV, Subordinated Notes		5.800	%		9/25/23		600,000		665,859	^(a)
Intesa Sanpaolo SpA, Senior Notes		3.125	%		7/14/22		300,000		307,870	^(a)
Intesa Sanpaolo SpA, Senior Notes		4.700	%		9/23/49		200,000		233,963	^(a)
Intesa Sanpaolo SpA, Subordinated Notes		4.198	%		6/1/32		200,000		205,366	^(a)
Intesa Sanpaolo SpA, Subordinated Notes		4.950	%		6/1/42		200,000		207,765	^(a)
JPMorgan Chase & Co., Junior Subordinated Notes (6.000% to 8/1/23 then 3 mo. USD LIBOR + 3.300%)		6.000	%		8/1/23		260,000		276,575	^(b)(c)
JPMorgan Chase & Co., Senior Notes (3.897% to 1/23/48 then 3 mo. USD LIBOR + 1.220%)		3.897	%		1/23/49		50,000		58,293	^(c)
JPMorgan Chase & Co., Subordinated Notes		5.625	%		8/16/43		440,000		622,794
JPMorgan Chase & Co., Subordinated Notes		4.950	%		6/1/45		490,000		650,524
Lloyds Banking Group PLC, Junior Subordinated Notes (7.500% to 6/27/24 then USD 5 year ICE Swap Rate + 4.760%)		7.500	%		6/27/24		360,000		410,472	^(b)(c)
Lloyds Banking Group PLC, Junior Subordinated Notes (7.500% to 9/27/25 then USD 5 year ICE Swap Rate + 4.496%)		7.500	%		9/27/25		370,000		433,825	^(b)(c)
Natwest Group PLC, Junior Subordinated Notes (7.648% to 9/30/31 then 3 mo. USD LIBOR + 2.500%)		7.648	%		9/30/31		1,360,000		1,992,019	^(b)(c)
Natwest Group PLC, Junior Subordinated Notes (8.625% to 8/15/21 then USD 5 year ICE Swap Rate + 7.598%)		8.625	%		8/15/21		590,000		595,632	^(b)(c)
Natwest Group PLC, Subordinated Notes		6.100	%		6/10/23		1,010,000		1,107,430
Natwest Group PLC, Subordinated Notes		6.000	%		12/19/23		350,000		392,710
Natwest Group PLC, Subordinated Notes (3.754% to 11/1/24 then 5 year Treasury Constant Maturity Rate + 2.100%)		3.754	%		11/1/29		230,000		244,663	^(c)
NatWest Markets NV, Subordinated Notes		7.750	%		5/15/23		480,000		538,259
Santander UK Group Holdings PLC, Subordinated Notes		4.750	%		9/15/25		210,000		235,941	^(a)
Standard Chartered PLC, Subordinated Notes		5.700	%		3/26/44		410,000		526,880	^(a)
UniCredit SpA, Senior Notes		6.572	%		1/14/22		590,000		608,280	^(a)

See Notes to Financial Statements.

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

Western Asset Investment Grade Income Fund Inc.


Security	Rate			Maturity Date		Face Amount		Value
Banks — continued
UniCredit SpA, Subordinated Notes (7.296% to 4/2/29 then USD 5 year ICE Swap Rate + 4.914%)		7.296	%		4/2/34	$	1,040,000	$	1,251,713	^(a)(c)
Wells Fargo & Co., Senior Notes (5.013% to 4/4/50 then SOFR + 4.502%)		5.013	%		4/4/51		260,000		356,886	^(c)
Wells Fargo & Co., Subordinated Notes		5.375	%		11/2/43		430,000		574,413
Wells Fargo & Co., Subordinated Notes		4.750	%		12/7/46		580,000		735,472
Westpac Banking Corp., Subordinated Notes		4.421	%		7/24/39		110,000		130,390
Total Banks									29,045,238
Capital Markets — 5.5%
Charles Schwab Corp., Junior Subordinated Notes (4.000% to 12/1/30 then 10 year Treasury Constant Maturity Rate + 3.079%)		4.000	%		12/1/30		320,000		327,760	^(b)(c)
CI Financial Corp., Senior Notes		3.200	%		12/17/30		380,000		390,400
CI Financial Corp., Senior Notes		4.100	%		6/15/51		160,000		167,536
CME Group Inc., Senior Notes		5.300	%		9/15/43		440,000		636,305
Credit Suisse Group AG, Junior Subordinated Notes (5.250% to 8/11/27 then 5 year Treasury Constant Maturity Rate + 4.889%)		5.250	%		2/11/27		1,060,000		1,123,600	^(a)(b)(c)
Credit Suisse Group AG, Junior Subordinated Notes (7.125% to 7/29/22 then USD 5 year ICE Swap Rate + 5.108%)		7.125	%		7/29/22		350,000		365,484	^(b)(c)(e)
Credit Suisse Group AG, Senior Notes (4.194% to 4/1/30 then SOFR + 3.730%)		4.194	%		4/1/31		250,000		281,207	^(a)(c)
Credit Suisse USA Inc., Senior Notes		7.125	%		7/15/32		40,000		57,925
Goldman Sachs Group Inc., Senior Notes		6.250	%		2/1/41		570,000		850,020
Goldman Sachs Group Inc., Subordinated Notes		6.750	%		10/1/37		640,000		933,390
Goldman Sachs Group Inc., Subordinated Notes		5.150	%		5/22/45		500,000		670,363
KKR Group Finance Co. III LLC, Senior Notes		5.125	%		6/1/44		820,000		1,070,947	^(a)
KKR Group Finance Co. VI LLC, Senior Notes		3.750	%		7/1/29		70,000		78,271	^(a)
Morgan Stanley, Senior Notes		6.375	%		7/24/42		90,000		138,247
Raymond James Financial Inc., Senior Notes		4.650	%		4/1/30		70,000		83,822
Raymond James Financial Inc., Senior Notes		4.950	%		7/15/46		90,000		116,682
UBS AG Stamford, CT, Subordinated Notes		7.625	%		8/17/22		340,000		365,849
UBS Group AG, Junior Subordinated Notes (7.000% to 1/31/24 then USD 5 year ICE Swap Rate + 4.344%)		7.000	%		1/31/24		580,000		639,128	^(a)(b)(c)
Total Capital Markets									8,296,936

See Notes to Financial Statements.

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

Schedule of investments (unaudited) (cont’d)

June 30, 2021

Western Asset Investment Grade Income Fund Inc.


Security	Rate			Maturity Date		Face Amount		Value
Consumer Finance — 0.8%
Navient Corp., Senior Notes		7.250	%		1/25/22	$	830,000	$	861,913
Navient Corp., Senior Notes		6.125	%		3/25/24		290,000		313,890
Total Consumer Finance									1,175,803
Diversified Financial Services — 2.0%
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, Senior Notes		4.500	%		9/15/23		340,000		364,704
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, Senior Notes		4.875	%		1/16/24		330,000		359,460
Carlyle Finance LLC, Senior Notes		5.650	%		9/15/48		110,000		148,757	^(a)
Carlyle Finance Subsidiary LLC, Senior Notes		3.500	%		9/19/29		150,000		161,399	^(a)
Carlyle Holdings II Finance LLC, Senior Notes		5.625	%		3/30/43		220,000		293,984	^(a)
Global Aircraft Leasing Co. Ltd., Senior Notes (6.500% Cash or 7.250% PIK)		6.500	%		9/15/24		504,692		507,859	^(a)(f)
ILFC E-Capital Trust I Ltd. GTD ((Highest of 3 mo. USD LIBOR, 10 year Treasury Constant Maturity Rate and 30 year Treasury Constant Maturity Rate) + 1.550%)		3.660	%		12/21/65		470,000		390,208	^(a)(c)
ILFC E-Capital Trust II, Ltd. GTD ((Highest of 3 mo. USD LIBOR, 10 year Treasury Constant Maturity Rate and 30 year Treasury Constant Maturity Rate) + 1.800%)		3.910	%		12/21/65		270,000		230,729	^(a)(c)
Park Aerospace Holdings Ltd., Senior Notes		5.250	%		8/15/22		392,000		410,283	^(a)
Park Aerospace Holdings Ltd., Senior Notes		5.500	%		2/15/24		220,000		241,977	^(a)
Total Diversified Financial Services									3,109,360
Insurance — 3.5%
Allianz SE, Junior Subordinated Notes (3.500% to 4/30/26 then 5 year Treasury Constant Maturity Rate + 2.973%)		3.500	%		11/17/25		200,000		207,250	^(a)(b)(c)
Allstate Corp., Junior Subordinated Notes (6.500% to 5/15/37 then 3 mo. USD LIBOR + 2.120%)		6.500	%		5/15/57		480,000		640,798	^(c)
American International Group Inc., Junior Subordinated Notes		6.250	%		3/15/37		80,000		93,352
American International Group Inc., Senior Notes		4.750	%		4/1/48		70,000		89,171
Americo Life Inc., Senior Notes		3.450	%		4/15/31		80,000		81,531	^(a)
Arthur J Gallagher & Co., Senior Notes		3.500	%		5/20/51		70,000		73,438
AXA SA, Subordinated Notes		8.600	%		12/15/30		200,000		304,147
Everest Reinsurance Holdings Inc., Senior Notes		3.500	%		10/15/50		140,000		149,672
Fidelity & Guaranty Life Holdings Inc., Senior Notes		5.500	%		5/1/25		230,000		265,092	^(a)

See Notes to Financial Statements.

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

Western Asset Investment Grade Income Fund Inc.


Security	Rate			Maturity Date		Face Amount		Value
Insurance — continued
Liberty Mutual Insurance Co., Subordinated Notes		7.875	%		10/15/26	$	490,000	$	629,073	^(a)
Massachusetts Mutual Life Insurance Co., Subordinated Notes		4.900	%		4/1/77		260,000		338,570	^(a)
MetLife Inc., Junior Subordinated Notes		6.400	%		12/15/36		1,150,000		1,480,824
New York Life Insurance Co., Subordinated Notes		4.450	%		5/15/69		90,000		113,259	^(a)
Nippon Life Insurance Co., Subordinated Notes (2.750% to 1/21/31 then 5 year Treasury Constant Maturity Rate + 2.653%)		2.750	%		1/21/51		200,000		196,250	^(a)(c)
Northwestern Mutual Life Insurance Co., Subordinated Notes		3.625	%		9/30/59		110,000		121,294	^(a)
Teachers Insurance & Annuity Association of America, Subordinated Notes		6.850	%		12/16/39		400,000		607,431	^(a)
Total Insurance									5,391,152
Total Financials									47,018,489
Health Care — 7.9%
Biotechnology — 0.8%
AbbVie Inc., Senior Notes		4.550	%		3/15/35		130,000		158,034
AbbVie Inc., Senior Notes		4.050	%		11/21/39		740,000		860,657
Gilead Sciences Inc., Senior Notes		5.650	%		12/1/41		60,000		82,595
Gilead Sciences Inc., Senior Notes		4.750	%		3/1/46		50,000		63,520
Total Biotechnology									1,164,806
Health Care Equipment & Supplies — 0.4%
Abbott Laboratories, Senior Notes		4.900	%		11/30/46		90,000		123,417
Becton Dickinson and Co., Senior Notes		4.669	%		6/6/47		410,000		511,725
Total Health Care Equipment & Supplies									635,142
Health Care Providers & Services — 5.5%
Centene Corp., Senior Notes		4.250	%		12/15/27		100,000		105,500
Centene Corp., Senior Notes		4.625	%		12/15/29		360,000		396,367
Centene Corp., Senior Notes		3.375	%		2/15/30		500,000		523,337
Cigna Corp., Senior Notes		4.125	%		11/15/25		340,000		381,234
Cigna Corp., Senior Notes		4.800	%		8/15/38		340,000		423,933
CVS Health Corp., Senior Notes		4.100	%		3/25/25		940,000		1,043,003
CVS Health Corp., Senior Notes		4.300	%		3/25/28		540,000		620,854
CVS Health Corp., Senior Notes		4.780	%		3/25/38		570,000		702,286
CVS Health Corp., Senior Notes		5.125	%		7/20/45		340,000		442,949
CVS Health Corp., Senior Notes		5.050	%		3/25/48		560,000		728,722
Dartmouth-Hitchcock Health, Secured Bonds		4.178	%		8/1/48		100,000		118,008
DH Europe Finance II Sarl, Senior Notes		3.400	%		11/15/49		10,000		11,034
HCA Inc., Senior Secured Notes		4.125	%		6/15/29		210,000		236,647

See Notes to Financial Statements.

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

Schedule of investments (unaudited) (cont’d)

June 30, 2021

Western Asset Investment Grade Income Fund Inc.


Security	Rate			Maturity Date		Face Amount		Value
Health Care Providers & Services — continued
HCA Inc., Senior Secured Notes		5.125	%		6/15/39	$	110,000	$	137,775
HCA Inc., Senior Secured Notes		5.500	%		6/15/47		220,000		287,018
HCA Inc., Senior Secured Notes		5.250	%		6/15/49		350,000		446,997
Humana Inc., Senior Notes		8.150	%		6/15/38		80,000		128,474
Humana Inc., Senior Notes		4.800	%		3/15/47		150,000		189,790
Kaiser Foundation Hospitals, Senior Notes		2.810	%		6/1/41		80,000		81,779
Kaiser Foundation Hospitals, Senior Notes		3.002	%		6/1/51		80,000		82,808
Magellan Health Inc., Senior Notes		4.900	%		9/22/24		690,000		768,960
Orlando Health Obligated Group, Senior Notes		4.089	%		10/1/48		170,000		208,204
UnitedHealth Group Inc., Senior Notes		3.700	%		12/15/25		160,000		178,470
UnitedHealth Group Inc., Senior Notes		3.500	%		8/15/39		140,000		156,683
Total Health Care Providers & Services									8,400,832
Pharmaceuticals — 1.2%
Bausch Health Cos. Inc., Senior Notes		5.000	%		1/30/28		80,000		76,013	^(a)
Bausch Health Cos. Inc., Senior Notes		5.250	%		1/30/30		80,000		74,500	^(a)
Bristol-Myers Squibb Co., Senior Notes		3.400	%		7/26/29		910,000		1,020,870
Bristol-Myers Squibb Co., Senior Notes		5.000	%		8/15/45		250,000		342,483
Teva Pharmaceutical Finance Netherlands III BV, Senior Notes		7.125	%		1/31/25		200,000		220,765
Zoetis Inc., Senior Notes		4.700	%		2/1/43		30,000		38,685
Total Pharmaceuticals									1,773,316
Total Health Care									11,974,096
Industrials — 8.7%
Aerospace & Defense — 4.1%
Avolon Holdings Funding Ltd., Senior Notes		5.125	%		10/1/23		520,000		562,376	^(a)
Avolon Holdings Funding Ltd., Senior Notes		3.950	%		7/1/24		140,000		149,387	^(a)
Avolon Holdings Funding Ltd., Senior Notes		4.250	%		4/15/26		530,000		574,798	^(a)
Boeing Co., Senior Notes		2.800	%		3/1/24		320,000		334,022
Boeing Co., Senior Notes		2.196	%		2/4/26		180,000		181,749
Boeing Co., Senior Notes		3.100	%		5/1/26		1,400,000		1,481,362
Boeing Co., Senior Notes		3.250	%		2/1/28		370,000		392,666
Boeing Co., Senior Notes		5.705	%		5/1/40		210,000		270,852
Boeing Co., Senior Notes		5.805	%		5/1/50		140,000		188,838
Huntington Ingalls Industries Inc., Senior Notes		3.483	%		12/1/27		200,000		218,806
L3Harris Technologies Inc., Senior Notes		4.854	%		4/27/35		260,000		326,151
L3Harris Technologies Inc., Senior Notes		5.054	%		4/27/45		210,000		277,198
Lockheed Martin Corp., Senior Notes		4.500	%		5/15/36		40,000		50,104

See Notes to Financial Statements.

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

Western Asset Investment Grade Income Fund Inc.


Security	Rate			Maturity Date		Face Amount		Value
Aerospace & Defense — continued
Northrop Grumman Systems Corp., Senior Notes		7.875	%		3/1/26	$	870,000	$	1,124,477
United Technologies Corp., Senior Notes		4.625	%		11/16/48		110,000		141,801
Total Aerospace & Defense									6,274,587
Airlines — 1.8%
American Airlines Inc./AAdvantage Loyalty IP Ltd., Senior Secured Notes		5.500	%		4/20/26		110,000		116,600	^(a)
American Airlines Inc./AAdvantage Loyalty IP Ltd., Senior Secured Notes		5.750	%		4/20/29		110,000		119,075	^(a)
Delta Air Lines Inc., Senior Notes		2.900	%		10/28/24		540,000		549,771
Delta Air Lines Inc., Senior Notes		3.750	%		10/28/29		150,000		149,934
Delta Air Lines Inc., Senior Secured Notes		7.000	%		5/1/25		260,000		303,595	^(a)
Delta Air Lines Inc./SkyMiles IP Ltd., Senior Secured Notes		4.500	%		10/20/25		320,000		344,030	^(a)
Delta Air Lines Inc./SkyMiles IP Ltd., Senior Secured Notes		4.750	%		10/20/28		180,000		200,262	^(a)
Southwest Airlines Co., Senior Notes		4.750	%		5/4/23		510,000		547,272
Southwest Airlines Co., Senior Notes		5.125	%		6/15/27		190,000		223,654
United Airlines Pass-Through Trust		4.875	%		1/15/26		203,805		216,446
Total Airlines									2,770,639
Building Products — 0.1%
Carrier Global Corp., Senior Notes		3.577	%		4/5/50		100,000		106,287
Commercial Services & Supplies — 0.5%
California Institute of Technology, Senior Notes		3.650	%		9/1/2119		110,000		123,663
Waste Connections Inc., Senior Notes		4.250	%		12/1/28		480,000		555,548
Total Commercial Services & Supplies									679,211
Construction & Engineering — 0.7%
Vinci SA, Senior Notes		3.750	%		4/10/29		890,000		1,005,893	^(a)
Industrial Conglomerates — 0.3%
General Electric Co., Senior Notes		6.750	%		3/15/32		200,000		277,435
General Electric Co., Senior Notes		6.875	%		1/10/39		94,000		140,972
Total Industrial Conglomerates									418,407
Machinery — 0.2%
Caterpillar Inc., Senior Notes		4.750	%		5/15/64		220,000		318,752
Road & Rail — 0.2%
Union Pacific Corp., Senior Notes		4.375	%		11/15/65		320,000		371,450
Trading Companies & Distributors — 0.6%
Aircastle Ltd., Senior Notes		5.250	%		8/11/25		630,000		708,077	^(a)
Aviation Capital Group LLC, Senior Notes		5.500	%		12/15/24		180,000		203,622	^(a)
Total Trading Companies & Distributors									911,699

See Notes to Financial Statements.

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

Schedule of investments (unaudited) (cont’d)

June 30, 2021

Western Asset Investment Grade Income Fund Inc.


Security	Rate			Maturity Date		Face Amount		Value
Transportation Infrastructure — 0.2%
SMBC Aviation Capital Finance DAC, Senior Notes		4.125	%		7/15/23	$	350,000	$	372,377	^(a)
Total Industrials									13,229,302
Information Technology — 3.2%
Electronic Equipment, Instruments & Components — 0.1%
Vontier Corp., Senior Notes		2.950	%		4/1/31		120,000		120,700	^(a)
IT Services — 0.1%
International Business Machines Corp., Senior Notes		3.500	%		5/15/29		110,000		123,203
Semiconductors & Semiconductor Equipment — 1.1%
Broadcom Inc., Senior Notes		4.150	%		11/15/30		280,000		314,306
Broadcom Inc., Senior Notes		4.300	%		11/15/32		370,000		421,787
Intel Corp., Senior Notes		4.900	%		7/29/45		130,000		171,763
Intel Corp., Senior Notes		4.750	%		3/25/50		10,000		13,310
Intel Corp., Senior Notes		4.950	%		3/25/60		60,000		84,926
NVIDIA Corp., Senior Notes		3.500	%		4/1/40		60,000		68,184
NVIDIA Corp., Senior Notes		3.500	%		4/1/50		190,000		214,945
NVIDIA Corp., Senior Notes		3.700	%		4/1/60		80,000		94,720
Texas Instruments Inc., Senior Notes		3.875	%		3/15/39		270,000		325,654
Total Semiconductors & Semiconductor Equipment									1,709,595
Software — 1.3%
Microsoft Corp., Senior Notes		4.250	%		2/6/47		970,000		1,261,577
Oracle Corp., Senior Notes		3.950	%		3/25/51		310,000		338,769
Oracle Corp., Senior Notes		4.100	%		3/25/61		380,000		422,238
Total Software									2,022,584
Technology Hardware, Storage & Peripherals — 0.6%
Apple Inc., Senior Notes		3.850	%		8/4/46		340,000		405,987
Dell International LLC/EMC Corp., Senior Secured Notes		8.100	%		7/15/36		80,000		122,104
HP Inc., Senior Notes		4.650	%		12/9/21		310,000		315,398
Total Technology Hardware, Storage & Peripherals									843,489
Total Information Technology									4,819,571
Materials — 5.6%
Chemicals — 0.9%
Dow Chemical Co., Senior Notes		7.375	%		11/1/29		800,000		1,114,185
Ecolab Inc., Senior Notes		4.800	%		3/24/30		80,000		98,015
OCP SA, Senior Notes		3.750	%		6/23/31		200,000		202,450	^(a)
Total Chemicals									1,414,650

See Notes to Financial Statements.

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

Western Asset Investment Grade Income Fund Inc.


Security	Rate			Maturity Date		Face Amount		Value
Metals & Mining — 4.3%
Anglo American Capital PLC, Senior Notes		4.000	%		9/11/27	$	500,000	$	554,958	^(a)
ArcelorMittal SA, Senior Notes		4.550	%		3/11/26		470,000		531,871
Barrick North America Finance LLC, Senior Notes		5.700	%		5/30/41		50,000		68,838
Barrick PD Australia Finance Pty Ltd., Senior Notes		5.950	%		10/15/39		180,000		249,851
First Quantum Minerals Ltd., Senior Notes		7.250	%		4/1/23		340,000		347,014	^(a)
First Quantum Minerals Ltd., Senior Notes		7.500	%		4/1/25		200,000		208,027	^(a)
Glencore Finance Canada Ltd., Senior Notes		6.900	%		11/15/37		430,000		599,446	^(a)
Glencore Finance Canada Ltd., Senior Notes		5.550	%		10/25/42		150,000		194,369	^(a)
Glencore Funding LLC, Senior Notes		4.125	%		3/12/24		530,000		571,705	^(a)
Glencore Funding LLC, Senior Notes		4.000	%		3/27/27		360,000		399,419	^(a)
Glencore Funding LLC, Senior Notes		3.875	%		10/27/27		170,000		187,480	^(a)
Southern Copper Corp., Senior Notes		5.250	%		11/8/42		470,000		603,095
Vale Overseas Ltd., Senior Notes		6.875	%		11/21/36		1,148,000		1,575,010
Yamana Gold Inc., Senior Notes		4.625	%		12/15/27		350,000		386,074
Total Metals & Mining									6,477,157
Paper & Forest Products — 0.4%
Georgia-Pacific LLC, Senior Notes		7.375	%		12/1/25		250,000		316,632
Suzano Austria GmbH, Senior Notes		3.125	%		1/15/32		230,000		228,073	^(d)
Total Paper & Forest Products									544,705
Total Materials									8,436,512
Real Estate — 0.9%
Equity Real Estate Investment Trusts (REITs) — 0.6%
Diversified Healthcare Trust, Senior Notes		4.750	%		5/1/24		130,000		133,732
MPT Operating Partnership LP/MPT Finance Corp., Senior Notes		5.000	%		10/15/27		250,000		265,335
MPT Operating Partnership LP/MPT Finance Corp., Senior Notes		4.625	%		8/1/29		170,000		182,476
Welltower Inc., Senior Notes		4.125	%		3/15/29		320,000		364,447
Total Equity Real Estate Investment Trusts (REITs)									945,990
Real Estate Management & Development — 0.3%
Security Capital Group Inc., Senior Notes		7.700	%		6/15/28		280,000		363,454
Total Real Estate									1,309,444
Utilities — 2.4%
Electric Utilities — 2.4%
CenterPoint Energy Houston Electric LLC, Senior Secured Bonds		4.500	%		4/1/44		210,000		271,172
Comision Federal de Electricidad, Senior Notes		3.348	%		2/9/31		200,000		198,961	^(a)

See Notes to Financial Statements.

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

Schedule of investments (unaudited) (cont’d)

June 30, 2021

Western Asset Investment Grade Income Fund Inc.


Security	Rate			Maturity Date		Face Amount		Value
Electric Utilities — continued
Edison International, Junior Subordinated Notes (5.375% to 3/15/26 then 5 year Treasury Constant Maturity Rate + 4.698%)		5.375	%		3/15/26	$	150,000	$	151,470	^(b)(c)
Exelon Corp., Senior Notes		4.050	%		4/15/30		120,000		136,815
FirstEnergy Corp., Senior Notes		4.400	%		7/15/27		310,000		337,469
FirstEnergy Corp., Senior Notes		7.375	%		11/15/31		830,000		1,138,021
Jersey Central Power & Light Co., Senior Notes		4.300	%		1/15/26		100,000		110,769	^(a)
MidAmerican Energy Co., First Mortgage Bonds		3.650	%		4/15/29		150,000		169,748
Pacific Gas and Electric Co., Secured Bonds		3.300	%		8/1/40		20,000		18,105
Pacific Gas and Electric Co., Secured Bonds		4.950	%		7/1/50		50,000		51,512
Southern California Edison Co., First Mortgage Bonds		4.125	%		3/1/48		310,000		331,359
Virginia Electric & Power Co., Senior Notes		8.875	%		11/15/38		390,000		695,218
Total Utilities									3,610,619
Total Corporate Bonds & Notes (Cost — $116,267,181)									138,009,024
Sovereign Bonds — 3.8%
Argentina — 0.5%
Argentine Republic Government International Bond, Senior Notes		1.000	%		7/9/29		35,342		13,472
Argentine Republic Government International Bond, Senior Notes, Step bond (0.125% to 7/9/21 then 0.500%)		0.125	%		7/9/30		127,826		46,108
Argentine Republic Government International Bond, Senior Notes, Step bond (0.125% to 7/9/21 then 1.125%)		0.125	%		7/9/35		412,973		131,742
Provincia de Buenos Aires, Senior Notes		9.125	%		3/16/24		1,220,000		552,062	*^(a)(g)
Total Argentina									743,384
Canada — 0.7%
Province of Quebec Canada, Senior Notes, Step bond		7.970%			7/22/36		650,000		1,073,352
Colombia — 0.6%
Colombia Government International Bond, Senior Notes		4.500%			3/15/29		870,000		951,310
Ghana — 0.2%
Ghana Government International Bond, Senior Notes		8.950%			3/26/51		310,000		307,368	^(a)
Indonesia — 0.2%
Indonesia Government International Bond, Senior Notes		4.350%			1/11/48		240,000		273,127

See Notes to Financial Statements.

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

Western Asset Investment Grade Income Fund Inc.


Security	Rate			Maturity Date		Face Amount		Value
Kenya — 0.3%
Kenya Government International Bond, Senior Notes		8.000	%		5/22/32	$	460,000	$	518,905	^(a)
Mexico — 0.4%
Mexico Government International Bond, Senior Notes		4.280	%		8/14/41		200,000		210,428
Mexico Government International Bond, Senior Notes		4.350	%		1/15/47		360,000		376,927
Total Mexico									587,355
Qatar — 0.5%
Qatar Government International Bond, Senior Notes		3.375	%		3/14/24		410,000		440,348	^(a)
Qatar Government International Bond, Senior Notes		4.817	%		3/14/49		270,000		348,322	^(a)
Total Qatar									788,670
United Arab Emirates — 0.3%
Abu Dhabi Government International Bond, Senior Notes		4.125	%		10/11/47		440,000		525,646	^(a)
Uruguay — 0.1%
Uruguay Government International Bond, Senior Notes		4.975	%		4/20/55		70,000		90,493
Total Sovereign Bonds (Cost — $5,925,865)									5,859,610
Municipal Bonds — 1.2%
California — 0.8%
Los Angeles County, CA Public Works Financing Authority Revenue, Multiple Capital Projects I, Series 2010 B, Taxable Build America Bonds		7.618	%		8/1/40		650,000		1,058,702
University of California Revenue, Taxable, General Series AG		4.062	%		5/15/33		150,000		160,371	^(h)
Total California									1,219,073
Florida — 0.1%
Sumter Landing, FL, Community Development District Recreational Revenue, Taxable Community Development District		4.172	%		10/1/47		170,000		191,108
Illinois — 0.3%
Illinois State, GO, Taxable, Build America Bonds, Series 2010-3		6.725	%		4/1/35		310,000		390,679
Total Municipal Bonds (Cost — $1,570,492)									1,800,860

See Notes to Financial Statements.

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

Schedule of investments (unaudited) (cont’d)

June 30, 2021

Western Asset Investment Grade Income Fund Inc.

Security

Rate

Maturity

Date

Face

Amount

Value

U.S. Government & Agency Obligations — 0.1%

U.S. Government Obligations — 0.1%

U.S. Treasury Bonds

2.250%

5/15/41

90,000

93,670

U.S. Treasury Bonds

1.625%

11/15/50

50,000

44,922

Total U.S. Government & Agency Obligations (Cost — $133,523)

138,592

Preferred Stocks — 0.1%

Financials — 0.1%

Insurance — 0.1%

Delphi Financial Group Inc. (3 mo. USD LIBOR + 3.190%) (Cost — $143,068)

3.346

5,725

128,526

^(c)

Total Investments before Short-Term Investments (Cost — $124,040,129)

145,936,612

Short-Term Investments — 3.1%

Western Asset Premier Institutional Government Reserves, Premium Shares
(Cost — $4,725,787)

0.010

4,725,787

4,725,787

⁽ⁱ⁾

Total Investments — 99.4% (Cost — $128,765,916)

150,662,399

Other Assets in Excess of Liabilities — 0.6%

884,291

Total Net Assets — 100.0%

151,546,690

*	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 Directors.

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

^(c)

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.

^(d)	Securities traded on a when-issued or delayed delivery basis.

^(e)

Security is exempt from registration under Regulation S of the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States. This security has been deemed liquid pursuant to guidelines approved by the Board of Directors.

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

^(g)	The coupon payment on this security is currently in default as of June 30, 2021.

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

⁽ⁱ⁾

In this instance, as defined in the Investment Company Act of 1940, an “Affiliated Company” represents Fund ownership of at least 5% of the outstanding voting securities of an issuer, or a company which is under common ownership or control with the Fund. At June 30, 2021, the total market value of investments in Affiliated Companies was $4,725,787 and the cost was $4,725,787 (Note 7).

See Notes to Financial Statements.

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

Western Asset Investment Grade Income Fund Inc.


Abbreviation(s) used in this schedule:

GO		— General Obligation

GTD		— Guaranteed

ICE		— Intercontinental Exchange

JSC		— Joint Stock Company

LIBOR		— London Interbank Offered Rate

PIK		— Payment-In-Kind

SOFR		— Secured Overnight Financing Rate

USD		— United States Dollar

At June 30, 2021, the Fund had the following open futures contracts:


	Number of Contracts		Expiration Date		Notional Amount		Market Value		Unrealized Appreciation (Depreciation)
Contracts to Buy:
U.S. Treasury 2-Year Notes		51		9/21	$	11,253,955	$	11,236,336	$	(17,619)
U.S. Treasury 10-Year Notes		66		9/21		8,707,896		8,745,000		37,104
U.S. Treasury Ultra Long-Term Bonds		46		9/21		8,450,965		8,863,625		412,660
										432,145
Contracts to Sell:
U.S. Treasury 5-Year Notes		10		9/21		1,238,733		1,234,297		4,436
U.S. Treasury Long-Term Bonds		96		9/21		15,100,869		15,432,000		(331,131)
										(326,695)
Net unrealized appreciation on open futures contracts									$	105,450

See Notes to Financial Statements.

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

Statement of assets and liabilities (unaudited)

June 30, 2021



Assets:
Investments in unaffiliated securities, at value (Cost — $124,040,129)			$145,936,612
Investments in affiliated securities, at value (Cost — $4,725,787)			4,725,787
Interest receivable			1,601,456
Receivable for securities sold			448,024
Deposits with brokers for open futures contracts			225,297
Receivable from broker — net variation margin on open futures contracts			5,098
Other assets			13,944
Prepaid expenses			36,624
*Total Assets*			*152,992,842*

Liabilities:
Payable for securities purchased			842,348
Distributions payable			442,182
Investment management fee payable			62,285
Directors’ fees payable			84
Accrued expenses			99,253
*Total Liabilities*			*1,446,152*
Total Net Assets			$151,546,690

Net Assets:
Par value ($0.01 par value; 9,509,295 shares issued and outstanding; 20,000,000 shares authorized)			$95,093
Paid-in capital in excess of par value			132,015,997
Total distributable earnings (loss)			19,435,600
Total Net Assets			$151,546,690

Shares Outstanding			9,509,295

Net Asset Value			$15.94

See Notes to Financial Statements.

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

Statement of operations (unaudited)

For the Six Months Ended June 30, 2021



Investment Income:
Interest from unaffiliated investments	$	3,317,793
Interest from affiliated investments		40
Dividends		2,458
Less: Foreign taxes withheld		(25,815)
*Total Investment Income*		*3,294,476*

Expenses:
Investment management fee (Note 2)		386,832
Fund accounting fees		33,137
Legal fees		32,803
Transfer agent fees		31,228
Franchise taxes		30,103
Audit and tax fees		22,960
Directors’ fees		13,884
Stock exchange listing fees		6,221
Shareholder reports		3,467
Insurance		1,294
Custody fees		766
Miscellaneous expenses		4,519
*Total Expenses*		*567,214*
Less: Fee waivers and/or expense reimbursements (Note 2)		(12,030)
*Net Expenses*		*555,184*
Net Investment Income		2,739,292

Realized and Unrealized Gain (Loss) on Investments and Futures Contracts (Notes 1, 3 and 4):
Net Realized Gain From:
Investment transactions in unaffiliated securities		878,692
Futures contracts		123,800
*Net Realized Gain*		*1,002,492*
Change in Net Unrealized Appreciation (Depreciation) From:
Investments in unaffiliated securities		(3,810,494)
Futures contracts		(20,109)
*Change in Net Unrealized Appreciation (Depreciation)*		*(3,830,603)*
Net Loss on Investments and Futures Contracts		(2,828,111)
Decrease in Net Assets From Operations	$	(88,819)

See Notes to Financial Statements.

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

Statements of changes in net assets


For the Six Months Ended June 30, 2021 (unaudited) and the Year Ended December 31, 2020	2021		2020

Operations:
Net investment income	$	2,739,292	$	5,550,217
Net realized gain (loss)		1,002,492		(1,967,152)
Change in net unrealized appreciation (depreciation)		(3,830,603)		9,230,174
*Increase (Decrease) in Net Assets From Operations*		*(88,819)*		*12,813,239*

Distributions to Shareholders From (Note 1):
Total distributable earnings		(2,653,093)		(5,769,834)
*Decrease in Net Assets From Distributions to Shareholders*		*(2,653,093)*		*(5,769,834)*

Fund Share Transactions:
Reinvestment of distributions (0 and 8,106 shares issued, respectively)		—		125,762
*Increase in Net Assets From Fund Share Transactions*		—		*125,762*
*Increase (Decrease) in Net Assets*		*(2,741,912)*		*7,169,167*

Net Assets:
Beginning of period		154,288,602		147,119,435
End of period	$	151,546,690	$	154,288,602

See Notes to Financial Statements.

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

Financial highlights


For a share of common stock outstanding throughout each year ended December 31, unless otherwise noted:
	2021^1,2			2020¹			2019¹			2018¹			2017¹			2016¹

Net asset value, beginning of period		$16.23			$15.48			$14.00			$15.39			$14.61			$13.84

Income (loss) from operations:
Net investment income		0.29			0.58			0.62			0.65			0.68			0.70
Net realized and unrealized gain (loss)		(0.30)			0.78			1.55			(1.35)			0.79			0.76
*Total income (loss) from operations*		*(0.01)*			*1.36*			*2.17*			*(0.70)*			*1.47*			*1.46*

Less distributions from:
Net investment income		(0.28)	³		(0.61)			(0.69)			(0.69)			(0.69)			(0.69)
*Total distributions*		*(0.28)*			*(0.61)*			*(0.69)*			*(0.69)*			*(0.69)*			*(0.69)*

Net asset value, end of period		$15.94			$16.23			$15.48			$14.00			$15.39			$14.61

Market price, end of period		$15.65			$15.90			$15.52			$13.20			$15.76			$14.31
*Total return, based on NAV^4,5*		*(0.04)*	%		*9.11*	%		*15.77*	%		*(4.62)*	%		*10.27*	%		*10.76*	%
*Total return, based on Market Price⁶*		*0.22*	%		*6.62*	%		*23.05*	%		*(11.96)*	%		*15.31*	%		*15.44*	%

Net assets, end of period (millions)		$152			$154			$147			$133			$146			$138

Ratios to average net assets:
Gross expenses		0.76	%⁷		0.81	%		0.85	%		0.82	%		0.76	%		0.77	%
Net expenses^8,9		0.75	⁷		0.79			0.83			0.80			0.74			0.75
Net investment income		3.68	⁷		3.80			4.12			4.47			4.53			4.87

Portfolio turnover rate		8	%		41	%		66	%		52	%		50	%		50	%

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

²	For the six months ended June 30, 2021 (unaudited).

³	The actual source of the Fund’s current fiscal year distributions may be from net investment income, return of capital or a combination of both. Shareholders will be informed of the tax characteristics of the distributions after the close of the fiscal year.

⁴

Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized.

⁵	The total return calculation assumes that distributions are reinvested at NAV. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized.

⁶	The total return calculation assumes that distributions are reinvested in accordance with the Fund’s dividend reinvestment plan. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized.

⁷	Annualized.

⁸	Reflects fee waivers and/or expense reimbursements.

⁹	The investment adviser has agreed to waive the Fund’s management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund.

See Notes to Financial Statements.

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

Notes to financial statements (unaudited)

1. Organization and significant accounting policies

Western Asset Investment Grade Income Fund Inc. (the “Fund”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a closed-end diversified investment company. The Fund’s primary investment objective is to seek a high level of current income, consistent with prudent investment risk, through investment in a diversified portfolio of debt securities. To a lesser extent, the Fund may also invest in privately placed debt securities and in certain equity securities. Capital appreciation is a secondary investment objective.

The following are significant accounting policies consistently followed by the Fund 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 typically use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Investments in open-end funds are valued at the closing net asset value per share of each fund on the day of valuation. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded. Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund will normally use the currency exchange rates as of 4:00 p.m. (Eastern Time). If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the manager to be unreliable, the market price may be determined by the manager using quotations from one or more broker/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved by the Fund’s Board of Directors.

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

The Board of Directors is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Global Fund Valuation Committee (formerly known as Legg Mason North Atlantic Fund Valuation Committee prior to March 1, 2021) (the “Valuation Committee”). The Valuation Committee, pursuant to the policies adopted by the Board of Directors, is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Board of Directors. When determining the reliability of third party pricing information for investments owned by the Fund, the Valuation Committee, among other things, conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.

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

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

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

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

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

GAAP establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are summarized in the three broad levels listed below:

•

Level 1 — quoted prices in active markets for identical investments

•

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

•

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

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

The following is a summary of the inputs used in valuing the Fund’s assets 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		—	$	138,009,024		—	$	138,009,024
Sovereign Bonds		—		5,859,610		—		5,859,610
Municipal Bonds		—		1,800,860		—		1,800,860
U.S. Government & Agency
Obligations		—		138,592		—		138,592
Preferred Stocks		—		128,526		—		128,526
Total Long-Term Investments		—		145,936,612		—		145,936,612
Short-Term Investments†	$	4,725,787		—		—		4,725,787
Total Investments	$	4,725,787	$	145,936,612		—	$	150,662,399
Other Financial Instruments:
Futures Contracts††	$	454,200		—		—	$	454,200
Total	$	5,179,987	$	145,936,612		—	$	151,116,599

LIABILITIES
Description	Quoted Prices (Level 1)		Other Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Other Financial Instruments:
Futures Contracts††	$	348,750		—		—	$	348,750

†	See Schedule of Investments for additional detailed categorizations.

††	Reflects the unrealized appreciation (depreciation) of the instruments.

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

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

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

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

(c) Securities traded on a when-issued and delayed delivery basis. The Fund may trade securities on a when-issued or delayed delivery basis. In when-issued and delayed delivery transactions, the securities are purchased or sold by the Fund with payment and delivery taking place in the future in order to secure what is considered to be an advantageous price and yield to the Fund at the time of entering into the transaction.

Purchasing such securities involves risk of loss if the value of the securities declines prior to settlement. These securities are subject to market fluctuations and their current value is determined in the same manner as for other securities.

(d) Credit and market risk. The Fund 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 Fund’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 Fund. The Fund’s investments in non-U.S. dollar denominated securities may also result in foreign currency losses caused by devaluations and exchange rate fluctuations.

Investments in securities that are collateralized by real estate mortgages are subject to certain credit and liquidity risks. When market conditions result in an increase in default rates of the underlying mortgages and the foreclosure values of underlying real estate properties are materially below the outstanding amount of these underlying mortgages,

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

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

collection of the full amount of accrued interest and principal on these investments may be doubtful. Such market conditions may significantly impair the value and liquidity of these investments and may result in a lack of correlation between their credit ratings and values.

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

(f) Counterparty risk and credit-risk-related contingent features of derivative instruments. The Fund may invest in certain securities or engage in other transactions where the Fund is exposed to counterparty credit risk in addition to broader market risks. The Fund may invest in securities of issuers, which may also be considered counterparties as trading partners in other transactions. This may increase the risk of loss in the event of default or bankruptcy by the counterparty or if the counterparty otherwise fails to meet its contractual obligations. The Fund’s investment adviser 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 investment adviser. In addition, declines in the values of underlying collateral received may expose the Fund to increased risk of loss.

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

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

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

derivatives counterparty could terminate the positions and demand payment or require additional collateral.

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

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

As of June 30, 2021, the Fund did not have any open OTC derivative transactions with credit related contingent features in a net liability position.

(g) 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. Paydown gains and losses on mortgage- and asset-backed securities are recorded as adjustments to interest income. Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities. The cost of investments sold is determined by use of the specific identification method. To the extent any issuer defaults or a credit event occurs that impacts the issuer, the Fund may halt any additional interest income accruals and consider the realizability of interest accrued up to the date of default or credit event.

(h) Distributions to shareholders. Distributions from net investment income of the Fund, if any, are declared quarterly and paid on a monthly basis. The actual source of the Fund’s monthly distributions may be from net investment income, return of capital or a combination of both. Shareholders will be informed of the tax characteristics of the distributions after the close of the fiscal year. Distributions of net realized gains, if any, are declared at least annually. Distributions to shareholders of the Fund are recorded on the ex-dividend date and are determined in accordance with income tax regulations, which may differ from GAAP.

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

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

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

(j) Federal and other taxes. It is the Fund’s policy to comply with the federal income and excise tax requirements of the Internal Revenue Code of 1986 (the “Code”), as amended, applicable to regulated investment companies. Accordingly, the Fund intends to distribute its taxable income and net realized gains, if any, to shareholders in accordance with timing requirements imposed by the Code. Therefore, no federal or state income tax provision is required in the Fund’s financial statements.

Management has analyzed the Fund’s tax positions taken on income tax returns for all open tax years and has concluded that as of December 31, 2020, no provision for income tax is required in the Fund’s financial statements. The Fund’s federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.

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

(k) 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

The Fund has entered into an Investment Advisory Agreement with Western Asset Management Company, LLC (“Adviser”), pursuant to which the Adviser provides investment advice and administrative services to the Fund. In return for its services, the Fund pays the Adviser a monthly fee at an annual rate of 0.70% of the average monthly net assets of the Fund up to $60,000,000 and 0.40% of such net assets in excess of $60,000,000. If expenses (including the Adviser’s fee but excluding interest, taxes, brokerage fees, the expenses of any offering by the Fund of its securities, and extraordinary expenses beyond the control of the Fund) borne by the Fund in any fiscal year exceed 1.5% of average net assets up to $30,000,000 and 1% of average net assets over $30,000,000, the Adviser has contractually agreed to reimburse the Fund for any excess. The Adviser, or its affiliates, have also agreed to waive $24,000 annually in Fund operating expenses. This waiver is ongoing and will not be terminated without Board approval.

In addition, the Adviser has agreed to waive the Fund’s management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund (the “affiliated money market fund waiver”).

During the six months ended June 30, 2021, fees waived and/or expenses reimbursed amounted to $12,030, which included an affiliated money market fund waiver of $129.

Western Asset Management Company Limited (“Western London”) provides the Fund with investment research, advice, management and supervision and a continuous investment

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

program for the Fund’s portfolio of non-dollar securities consistent with the Fund’s investment objectives and policies. As compensation, the Adviser pays Western London a fee based on the pro rata assets of the Fund managed by Western London during the month.

Under the terms of an administrative services agreement among the Fund, the Adviser, and Legg Mason Partners Fund Advisor, LLC (“LMPFA”), the Adviser (not the Fund) pays LMPFA a monthly fee of $3,000 (an annual rate of $36,000).

The Adviser, LMPFA and Western London are indirect, wholly-owned subsidiaries of Franklin Resources, Inc. (“Franklin Resources”).

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

3. Investments

During the six months ended June 30, 2021, 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	$	9,923,260	$	2,120,236
Sales		11,635,070		2,100,660

At June 30, 2021, 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
Securities	$	128,765,916	$	22,857,201	$	(960,718)	$	21,896,483
Futures contracts		—		454,200		(348,750)		105,450

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, 2021.


ASSET DERIVATIVES¹
	Interest Rate Risk
Futures contracts²	$	454,200

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

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


LIABILITY DERIVATIVES¹
	Interest Rate Risk
Futures contracts²	$	348,750

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

²	Includes cumulative unrealized appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only net variation margin is reported within the receivables and/or payables on the Statement of Assets and Liabilities.

The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the six months ended June 30, 2021. The first table provides additional detail about the amounts and sources of gains (losses) realized on derivatives during the period. The second table provides additional information about the change in unrealized appreciation (depreciation) resulting from the Fund’s derivatives and hedging activities during the period.


AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED
	Interest Rate Risk
Futures contracts	$	123,800

CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED
	Interest Rate Risk
Futures contracts	$	(20,109)

During the six months ended June 30, 2021, the volume of derivative activity for the Fund was as follows:


	Average Market Value
Futures contracts (to buy)	$	26,876,358
Futures contracts (to sell)		17,358,341

5. Distributions subsequent to June 30, 2021

The following distributions have been declared by the Fund’s Board of Directors and are payable subsequent to the period end of this report:


Record Date	Payable Date		Amount
6/23/2021		7/1/2021	$	0.0465
7/23/2021		8/2/2021	$	0.0465
8/24/2021		9/1/2021	$	0.0465
9/23/2021		10/1/2021	$	0.0465

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

6. Stock repurchase program

On November 20, 2015, the Fund announced that the Fund’s Board of Directors (the “Board”) had authorized the Fund to repurchase in the open market up to approximately 10% of the Fund’s outstanding common stock when the Fund’s shares are trading at a discount to net asset value. The Board has directed management of the Fund to repurchase shares of common stock at such times and in such amounts as management reasonably believes may enhance shareholder value. The Fund is under no obligation to purchase shares at any specific discount levels or in any specific amounts. During the six months ended June 30, 2021, the Fund did not repurchase any shares.

7. Transactions with affiliated company

As defined by the 1940 Act, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control with the Fund. The following company was considered an affiliated company for all or some portion of the six months ended June 30, 2021. The following transactions were effected in such company for the six months ended June 30, 2021.


	Affiliate Value at December 31,		Purchased				Sold
	2020		Cost		Shares		Cost		Shares
Western Asset Premier Institutional Government Reserves, Premium Shares	$	1,547,168	$	11,605,438		11,605,438	$	8,426,819		8,426,819

(cont’d)

Realized
Gain (Loss)

Interest
Income

Net Increase
(Decrease) in
Unrealized
Appreciation
(Depreciation)

Affiliate

Value at

June 30,

2021

Western Asset Premier Institutional Government Reserves, Premium Shares

—

$40

—

$4,725,787

8. Deferred capital losses

As of December 31, 2020, the Fund had deferred capital losses of $3,377,086, which have no expiration date, that will be available to offset future taxable capital gains.

9. Recent accounting pronouncement

In March 2020, the Financial Accounting Standards Board issued Accounting Standards Update No. 2020-04, Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting (the “ASU”). The amendments in the ASU provide optional temporary financial reporting relief from the effect of certain types of

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

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

contract modifications due to the planned discontinuation of the London Interbank Offered Rate and other interbank-offered based reference rates as of the end of 2021. The ASU is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management has reviewed the requirements and believes the adoption of this ASU will not have a material impact on the financial statements.

10. Other matters

The outbreak of the respiratory illness COVID-19 (commonly referred to as “coronavirus”) has continued to rapidly spread around the world, causing considerable uncertainty for the global economy and financial markets. The ultimate economic fallout from the pandemic, and the long-term impact on economies, markets, industries and individual issuers, are not known. The COVID-19 pandemic could adversely affect the value and liquidity of the Fund’s investments and negatively impact the Fund’s performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to the Fund by its service providers.

* * *

The Fund’s investments, payment obligations, and financing terms may be based on floating rates, such as the London Interbank Offered Rate, or “LIBOR,” which is the offered rate for short-term Eurodollar deposits between major international banks. On March 5, 2021, the ICE Benchmark Administration, the administrator of LIBOR, stated that it will cease the publication of (i) the overnight and one-, three-, six- and twelve-month USD LIBOR settings immediately following the LIBOR publication on Friday, June 30, 2023 and (ii) all other LIBOR settings, including the one-week and two-month USD LIBOR settings, immediately following the LIBOR publication on Friday, December 31, 2021. There remains uncertainty regarding the nature of any replacement rate and the impact of the transition from LIBOR on the Fund’s transactions and the financial markets generally. As such, the potential effect of a transition away from LIBOR on the Fund or the Fund’s investments cannot yet be determined.

Western Asset Investment Grade Income Fund Inc. 2021 Semi-Annual Report

Additional shareholder information (unaudited)

Results of annual meeting of shareholders

The Annual Meeting of Shareholders of Western Asset Investment Grade Income Fund Inc. was held on May 14, 2021 for the purpose of considering and voting upon the proposal presented at the Meeting. The following table provides information concerning the matters voted upon at the Meeting:

Election of Directors


Nominees	Votes FOR	Votes WITHHELD
Robert Abeles, Jr	6,698,000	1,200,152
Jane F. Dasher	6,731,343	1,166,809
Anita L. DeFrantz	6,690,419	1,207,733
Susan B. Kerley	6,720,589	1,177,563
Michael Larson	6,662,047	1,236,105
Ronald L. Olson	7,465,091	433,061
Avedick B. Poladian	6,694,735	1,203,417
William E.B. Siart	6,631,024	1,267,128
Jaynie M. Studenmund	6,729,041	1,169,111
Peter J. Taylor	6,693,494	1,204,658
Jane Trust	7,465,091	433,061

At June 30, 2021, the Directors of the Fund were Robert Abeles, Jr, Jane F. Dasher, Anita L. DeFrantz, Susan B. Kerley, Michael Larson, Ronald L. Olson, Avedick B. Poladian, William E.B. Siart, Jaynie M. Studenmund, Peter J. Taylor and Jane Trust.

Western Asset Investment Grade Income Fund Inc.

Dividend reinvestment plan (unaudited)

The Fund offers to all shareholders a Dividend Reinvestment Plan (“Plan”). For participants in the Plan, cash distributions (e.g., dividends and capital gains) of registered shareholders (those who own shares in their own name on the Fund’s records) are automatically invested in shares of the Fund. Interested shareholders may obtain more information or sign up for the Plan by contacting the agent. Shareholders who own shares in a brokerage, bank, or other financial institution account must contact the Company where their account is held in order to participate in the Plan.

If you elect to participate in the Plan you will automatically receive your dividend or net capital gains distribution in newly issued shares of the Fund if the market price of a share on the date of the distribution is at or above the net asset value (“NAV”) of a Fund share. The number of shares to be issued to you will be determined by dividing the amount of the cash distribution to which you are entitled (net of any applicable withholding taxes) by the greater of the NAV per share on such date or 95% of the market price of a share on such date. If the market price of a share on such distribution date is below the NAV the Agent will, as agent for the participants, buy shares of the Fund’s stock through a broker on the open market or in a negotiated transaction (subject to price and other terms to which the agent may agree). The price per share of shares purchased for each participant’s account with respect to a particular dividend or other distribution will be the average price (including brokerage commissions, transfer taxes and any other costs of purchase) of all shares purchased with respect to that dividend or other distribution. All shares of common stock acquired on your behalf through the Plan will be automatically credited to an account maintained on the books of the Agent. Full and fractional shares will be voted by the Agent in accordance with your instructions.

Additional information regarding the plan

The Fund will pay all costs applicable to the Plan, with the exceptions noted below. Brokerage commissions, transfer taxes and any other costs of purchase or sale by the Agent under the Plan will be charged to participants. The commission participants pay for selling shares under the Plan is calculated as $2.50 plus $0.15 per share. Beneficial shareholders should contact the company holding their account for further information concerning fees that may apply to selling shares under the Plan. In the event the Fund determines to no longer pay the costs applicable to the Plan, the Agent will terminate the Plan and may, but is not obligated to, offer a new plan under which it would impose a direct service charge on participants.

All shares acquired through the Plan receive voting rights and are eligible for any stock split, stock dividend, or other rights accruing to shareholders that the Board of Directors may declare. Distributions to Plan participants will be in the form of stock, unless the Agent is notified in writing 10 days prior to the record date fixed by the Board of Directors for the distribution that you wish to receive a cash payment. Beneficial shareholders should contact the company holding their account for further information regarding deadlines that might apply.

You may terminate participation in the Plan at any time by giving written notice to the Agent. Such termination will be effective prior to the record date next succeeding the receipt of such instructions or by a later date of termination specified in such instructions.

Western Asset Investment Grade Income Fund Inc.

Upon termination of the Plan, a participant may request a certificate for the full shares credited to his or her account or may request the sale of all or part of such shares. If the participant instructs the Agent to sell the shares credited to the participant’s account, the Agent may accumulate such shares and those of any other terminating participants for purposes of such sale. Brokerage charges, transfer taxes, and any other costs of sale will be allocated pro rata among the selling participants. Any such sale may be made on any securities exchange where such shares are traded, in the over-the counter market or in negotiated transactions, and may be subject to such terms of price, delivery, etc., as the Agent may agree to. Fractional shares credited to a terminating account will be paid for in cash at the current market price at the time of termination.

Dividends and other distributions invested in additional shares under the Plan are subject to income tax just as if they had been received in cash. After year end, dividends paid on the accumulated shares will be included in the Form 1099-DIV information return to the Internal Revenue Service and only one Form 1099-DIV will be sent to each participant each year.

Registered shareholders can make inquiries regarding the Plan, as well as sign up or terminate their participation in the Plan by contacting Computershare Inc., 462 South 4th Street, Suite 1600, Louisville, KY 40202, telephone number 1-888-888-0151. Beneficial Shareholders can make inquiries regarding the Plan as well as sign up or terminate their participation in the Plan by contacting the company where their account is held.

Western Asset Investment Grade Income Fund Inc.

Western Asset

Investment Grade Income Fund Inc.

Directors

Robert Abeles, Jr

Jane F. Dasher

Anita L. DeFrantz

Susan B. Kerley

Michael Larson

Ronald L. Olson

Avedick B. Poladian

William E.B. Siart

Chairman

Jaynie M. Studenmund

Peter J. Taylor

Jane Trust

Officers

Jane Trust

President and Chief Executive Officer

Christopher Berarducci

Treasurer and Principal Financial Officer

Ted P. Becker

Chief Compliance Officer

Jenna Bailey

Identity Theft Prevention Officer

Marc A. De Oliveira

Secretary and Chief Legal Officer

Thomas C. Mandia

Assistant Secretary

Jeanne M. Kelly

Senior Vice President

Western Asset Investment

Grade Income Fund Inc.

620 Eighth Avenue

47th Floor

New York, NY 10018

Investment advisers

Western Asset Management Company, LLC

Western Asset Management Company Limited

Custodian

The Bank of New York Mellon

Independent registered public accounting firm

PricewaterhouseCoopers LLP

100 East Pratt Street

Baltimore, MD 21202

Legal counsel

Ropes & Gray LLP

1211 Avenue of the Americas

New York, NY 10036

Transfer agent

Computershare Inc.

462 South 4th Street, Suite 1600

Louisville, KY 40202

New York Stock Exchange Symbol

PAI

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, Franklin Distributors, LLC, as well as Legg Mason-sponsored closed-end funds. The provisions of this Privacy Notice apply to your information both while you are a shareholder and after you are no longer invested with the Funds.

The Type of Nonpublic Personal Information the Funds Collect About You

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

•

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 Fund at 1-888-777-0102.

Revised April 2018

Legg Mason California Consumer Privacy Act Policy

Although much of the personal information we collect is “nonpublic personal information” subject to federal law, residents of California may, in certain circumstances, have additional rights under the California Consumer Privacy Act (“CCPA”). For example, if you are a broker,

NOT PART OF THE SEMI-ANNUAL REPORT

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

dealer, agent, fiduciary, or representative acting by or on behalf of, or for, the account of any other person(s) or household, or a financial advisor, or if you have otherwise provided personal information to us separate from the relationship we have with personal investors, the provisions of this Privacy Policy apply to your personal information (as defined by the CCPA).

•

In addition to the provisions of the Legg Mason Funds Security and Privacy Notice, you may have the right to know the categories and specific pieces of personal information we have collected about you.

•

You also have the right to request the deletion of the personal information collected or maintained by the Funds.

If you wish to exercise any of the rights you have in respect of your personal information, you should advise the Funds by contacting them as set forth below. The rights noted above are subject to our other legal and regulatory obligations and any exemptions under the CCPA. You may designate an authorized agent to make a rights request on your behalf, subject to the identification process described below. We do not discriminate based on requests for information related to our use of your personal information, and you have the right not to receive discriminatory treatment related to the exercise of your privacy rights.

We may request information from you in order to verify your identity or authority in making such a request. If you have appointed an authorized agent to make a request on your behalf, or you are an authorized agent making such a request (such as a power of attorney or other written permission), this process may include providing a password/passcode, a copy of government issued identification, affidavit or other applicable documentation, i.e. written permission. We may require you to verify your identity directly even when using an authorized agent, unless a power of attorney has been provided. We reserve the right to deny a request submitted by an agent if suitable and appropriate proof is not provided.

For the 12-month period prior to the date of this Privacy Policy, the Legg Mason Funds have not sold any of your personal information; nor do we have any plans to do so in the future.

Contact Information

Address: Data Privacy Officer, 100 International Dr., Baltimore, MD 21202

Email: DataProtectionOfficer@franklintempleton.com

Phone: 1-800-396-4748

Revised October 2020

NOT PART OF THE SEMI-ANNUAL REPORT

Western Asset Investment Grade Income Fund Inc.

Western Asset Investment Grade Income Fund Inc.

620 Eighth Avenue

47th Floor

New York, NY 10018

Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940, as amended, that from time to time the Fund may purchase, at market prices, shares of its stock.

The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Forms N-PORT are available on the SEC’s website at www.sec.gov. To obtain information on Form N-PORT, shareholders can call the Fund at 1-888-777-0102.

Information on how the Fund voted proxies relating to portfolio securities during the prior 12-month period ended June 30th of each year and a description of the policies and procedures that the Fund uses to determine how to vote proxies related to portfolio transactions are available (1) without charge, upon request, by calling 1-888-777-0102, (2) at www.lmcef.com and (3) on the SEC’s website at www.sec.gov.

This report is transmitted to the shareholders of Western Asset Investment Grade Income Fund Inc. for their information. This is not a prospectus, circular or representation intended for use in the purchase of shares of the Fund or any securities mentioned in this report.

Computershare Inc.

462 South 4th Street, Suite 1600

Louisville, KY 40202

WASX012841 8/21 SR21-4227

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.

INVESTMENT PROFESSIONALS 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.

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

Not applicable

ITEM 13.

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.


Western Asset Investment Grade Income Fund Inc.

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

Date:		August 23, 2021

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 23, 2021

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

Date:		August 23, 2021