UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-04254
(Exact name of registrant as specified in charter)
620 Eighth Avenue, 47th 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: 877-6LM-FUND/656-3863
Date of fiscal year end: February 28
Date of reporting period:
ITEM 1. | REPORT TO STOCKHOLDERS |
(a) | The Report to Shareholders is filed herewith |
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Annual Shareholder Report |
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Class Name
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Costs of a $10,000 investment
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Costs paid as a percentage of a $10,000 investment*
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Class A
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$
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* | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
Top contributors to performance:
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↑
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Issue selection within multiple sectors, led by power, education, and special tax
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↑
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Overweight to industrial revenue
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↑
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Overweight to lower investment-grade securities
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Top detractors from performance:
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↓
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Rates positioning
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↓
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Underweight to local general obligation
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Western Asset California Municipals Fund | PAGE 1 | 7044-ATSR-0425 |
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1 Year
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5 Year
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10 Year
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-
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-
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Total Net Assets
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$
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Total Number of Portfolio Holdings*
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Total Management Fee Paid
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$
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Portfolio Turnover Rate
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* | Does not include derivatives, except purchased options, if any. |
Western Asset California Municipals Fund | PAGE 2 | 7044-ATSR-0425 |
* | Does not include derivatives, except purchased options, if any. |
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WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
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Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
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• prospectus • proxy voting information • financial information • holdings • tax information
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Western Asset California Municipals Fund | PAGE 3 | 7044-ATSR-0425 |
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Annual Shareholder Report |
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Class Name
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Costs of a $10,000 investment
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Costs paid as a percentage of a $10,000 investment*
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Class C
|
$
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* | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
Top contributors to performance:
|
|
↑
|
Issue selection within multiple sectors, led by power, education, and special tax
|
↑
|
Overweight to industrial revenue
|
↑
|
Overweight to lower investment-grade securities
|
Top detractors from performance:
|
|
↓
|
Rates positioning
|
↓
|
Underweight to local general obligation
|
Western Asset California Municipals Fund | PAGE 1 | 7478-ATSR-0425 |
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1 Year
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5 Year
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10 Year
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-
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-
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|
|
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Total Net Assets
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$
|
Total Number of Portfolio Holdings*
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|
Total Management Fee Paid
|
$
|
Portfolio Turnover Rate
|
|
* | Does not include derivatives, except purchased options, if any. |
Western Asset California Municipals Fund | PAGE 2 | 7478-ATSR-0425 |
* | Does not include derivatives, except purchased options, if any. |
![]() |
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
|
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
|
|
• prospectus • proxy voting information • financial information • holdings • tax information
|
Western Asset California Municipals Fund | PAGE 3 | 7478-ATSR-0425 |
|
![]() |
|
|
||
Annual Shareholder Report |
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||
![]() |
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment*
|
Class I
|
$
|
|
* | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
Top contributors to performance:
|
|
↑
|
Issue selection within multiple sectors, led by power, education, and special tax
|
↑
|
Overweight to industrial revenue
|
↑
|
Overweight to lower investment-grade securities
|
Top detractors from performance:
|
|
↓
|
Rates positioning
|
↓
|
Underweight to local general obligation
|
Western Asset California Municipals Fund | PAGE 1 | 7463-ATSR-0425 |
|
1 Year
|
5 Year
|
10 Year
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net Assets
|
$
|
Total Number of Portfolio Holdings*
|
|
Total Management Fee Paid
|
$
|
Portfolio Turnover Rate
|
|
* | Does not include derivatives, except purchased options, if any. |
* | Does not include derivatives, except purchased options, if any. |
Western Asset California Municipals Fund | PAGE 2 | 7463-ATSR-0425 |
![]() |
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
|
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
|
|
• prospectus • proxy voting information • financial information • holdings • tax information
|
Western Asset California Municipals Fund | PAGE 3 | 7463-ATSR-0425 |
|
![]() |
|
|
||
Annual Shareholder Report |
|
||
![]() |
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment*
|
Class IS
|
$
|
|
* | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
Top contributors to performance:
|
|
↑
|
Issue selection within multiple sectors, led by power, education, and special tax
|
↑
|
Overweight to industrial revenue
|
↑
|
Overweight to lower investment-grade securities
|
Top detractors from performance:
|
|
↓
|
Rates positioning
|
↓
|
Underweight to local general obligation
|
Western Asset California Municipals Fund | PAGE 1 | 7274-ATSR-0425 |
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1 Year
|
5 Year
|
Since Inception
(8/9/2019) |
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|
|
|
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Total Net Assets
|
$
|
Total Number of Portfolio Holdings*
|
|
Total Management Fee Paid
|
$
|
Portfolio Turnover Rate
|
|
* | Does not include derivatives, except purchased options, if any. |
Western Asset California Municipals Fund | PAGE 2 | 7274-ATSR-0425 |
* | Does not include derivatives, except purchased options, if any. |
![]() |
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
|
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
|
|
• prospectus • proxy voting information • financial information • holdings • tax information
|
Western Asset California Municipals Fund | PAGE 3 | 7274-ATSR-0425 |
(b) | Not applicable |
ITEM 2. | CODE OF ETHICS. |
(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.
(c) N/A
(d) N/A
(f) Pursuant to Item 19(a) (1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
The Board of Trustees of the Registrant has determined that Robert Abeles, Jr., possesses the technical attributes identified in Item 3 to Form N-CSR to qualify as an “audit committee financial expert,” and has designated Mr. Abeles, Jr. as the Audit Committee’s financial expert. Mr. Abeles, Jr. is an “independent” Trustee pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.
Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
a) Audit Fees. The aggregate fees billed in the last two fiscal years ending February 29, 2024 and February 28, 2025 (the “Reporting Periods”) for professional services rendered by the Registrant’s principal accountant (the “Auditor”) for the audit of the Registrant’s annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $151,676 in February 29, 2024 and $162,276 in February 28, 2025.
b) Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the Registrant’s financial statements were $0 in February 29, 2024 and $0 in February 28, 2025.
(c) Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning (“Tax Services”) were $29,250 in February 29, 2024 and $29,250 in February 28, 2025. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.
There were no fees billed for tax services by the Auditors to the Registrant’s investment manager and any entity controlling, controlled by, or under common control with the
investment manager that provides ongoing services to the Registrant (“Service Affiliates”) during the Reporting Periods that required pre-approval by the Audit Committee.
d) All Other Fees. The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor to the Registrant, other than the services reported in paragraphs (a) through (c) of this item, were $0 in February 29, 2024 and $0 in February 28, 2025.
There were no other non-audit services rendered by the Auditor to the Service Affiliates requiring pre-approval by the Audit Committee in the Reporting Periods.
(e) Audit Committee’s pre-approval policies and procedures described in paragraph (c) (7) of Rule 2-01 of Regulation S-X.
(1) The Charter for the Audit Committee (the “Committee”) of the Board of each registered investment company (the “Fund”) advised by the Registrant’s investment manager or one of their affiliates (each, an “Adviser”) requires that the Committee shall approve (a) all audit and permissible non-audit services to be provided to the Fund and (b) all permissible non-audit services to be provided by the Fund’s independent auditors to the Adviser and any service providers controlling, controlled by or under common control with the Adviser that provide ongoing services to the Fund (“Covered Service Providers”) if the engagement relates directly to the operations and financial reporting of the Fund. The Committee may implement policies and procedures by which such services are approved other than by the full Committee.
The Committee shall not approve non-audit services that the Committee believes may impair the independence of the auditors. As of the date of the approval of this Audit Committee Charter, permissible non-audit services include any professional services (including tax services), that are not prohibited services as described below, provided to the Fund by the independent auditors, other than those provided to the Fund in connection with an audit or a review of the financial statements of the Fund. Permissible non-audit services may not include: (i) bookkeeping or other services related to the accounting records or financial statements of the Fund; (ii) financial information systems design and implementation; (iii) appraisal or valuation services, fairness opinions or contribution-in-kind reports; (iv) actuarial services; (v) internal audit outsourcing services; (vi) management functions or human resources; (vii) broker or dealer, investment adviser or investment banking services; (viii) legal services and expert services unrelated to the audit; and (ix) any other service the Public Company Accounting Oversight Board determines, by regulation, is impermissible.
Pre-approval by the Committee of any permissible non-audit services is not required so long as: (i) the aggregate amount of all such permissible non-audit services provided to the Fund, the Adviser and the Covered Service Providers constitutes not more than 5% of the total amount of revenues paid to the independent auditors during the fiscal year in which the permissible non-audit services are provided to (a) the Fund, (b) the Adviser and (c) any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Fund during the fiscal year in which the services are provided that would have to be approved by the Committee; (ii) the permissible non-audit services were not recognized by the Fund at the time of the engagement to be non-audit services; and (iii) such services are promptly brought to the attention of the Committee and approved by the Committee (or its delegate(s)) prior to the completion of the audit.
(2) None of the services described in paragraphs (b) through (d) of this Item were performed in reliance on paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) Non-audit fees billed by the Auditor for services rendered to the Registrant and the Service Affiliates during the reporting period were $342,635 in February 29, 2024 and $334,889 in February 28, 2025.
(h) Yes. The Registrant’s Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval), is compatible with maintaining the Auditor’s independence. All services provided by the Auditor to the Registrant or to the Service Affiliates, which were required to be pre-approved, were pre-approved as required.
(i) Not applicable.
(j) Not applicable.
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable.
ITEM 6. | SCHEDULE OF INVESTMENTS. |
(a) | Please see schedule of investments contained in the Financial Statements and Financial Highlights included under Item 7 of this Form N-CSR. |
(b) | Not applicable. |
ITEM 7. | FINANCIAL STATEMENTS AND FINANCIAL HIGLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
1
| |
9
| |
11
| |
12
| |
13
| |
17
| |
30
| |
31
| |
32
| |
32
| |
32
|
Security
|
|
Rate
|
Maturity
Date
|
Face
Amount
|
Value
|
Municipal
Bonds — 97.8% | |||||
Education
— 11.0% | |||||
California
State Enterprise Development
Authority
Revenue: |
|
|
|
| |
Provident
Group SDSU Properties LLC,
M@College
Project, Series A |
5.000%
|
8/1/45
|
$500,000
|
$511,526
| |
Provident
Group SDSU Properties LLC,
M@College
Project, Series A |
5.000%
|
8/1/55
|
600,000
|
609,516
| |
California
State Infrastructure & Economic
Development
Bank Revenue, UCSF
2130
Third Street |
5.000%
|
5/15/42
|
6,105,000
|
6,377,288
| |
California
State MFA Revenue, CHF-Davis II, LLC,
Orchard
Park Student Housing Project, Green
Bonds,
Series 2021, BAM |
4.000%
|
5/15/46
|
2,000,000
|
1,980,729
| |
California
State School Finance Authority
Revenue:
|
|
|
|
| |
Classical
Academies Oceanside Project,
Series
A, Refunding |
5.000%
|
10/1/42
|
1,000,000
|
1,023,224
(a)
| |
Classical
Academies Oceanside Project,
Series
A, Refunding |
5.000%
|
10/1/52
|
2,000,000
|
2,005,251
(a)
| |
KIPP
LA Project, Series A |
5.000%
|
7/1/45
|
1,650,000
|
1,651,521
(a)
| |
KIPP
LA Project, Series A |
5.000%
|
7/1/47
|
1,750,000
|
1,763,504
(a)
| |
KIPP
LA Project, Series A |
4.000%
|
7/1/50
|
1,135,000
|
1,018,802
(a)
| |
California
State University Revenue,
Systemwide,
Series C |
4.000%
|
11/1/45
|
2,000,000
|
2,005,526
| |
California
Statewide CDA Revenue: |
|
|
|
| |
College
Housing, NCCD Hooper Street LLC |
5.250%
|
7/1/39
|
1,300,000
|
1,331,779
(a)
| |
College
Housing, NCCD Hooper Street LLC |
5.250%
|
7/1/49
|
1,000,000
|
1,010,639
(a)
| |
Pittsburg,
CA, Unified School District Financing
Authority
Revenue, GO, AGM |
5.000%
|
9/1/47
|
3,000,000
|
3,105,463
| |
Total
Education |
24,394,768
| ||||
Health
Care — 7.4% | |||||
California
State Health Facilities Financing
Authority
Revenue: |
|
|
|
| |
CommonSpirit
Health, Series A, Refunding |
4.000%
|
4/1/44
|
2,000,000
|
1,945,322
| |
Lucile
Salter Packard Children’s Hospital at
Stanford
|
5.000%
|
11/15/49
|
2,500,000
|
2,523,096
| |
Lucile
Salter Packard Children’s Hospital at
Stanford,
Series B |
5.000%
|
8/15/55
|
2,000,000
|
2,022,818
|
Security
|
|
Rate
|
Maturity
Date
|
Face
Amount
|
Value
|
Health
Care — continued | |||||
California
State MFA Revenue: |
|
|
|
| |
Goodwill
Industries of Sacramento Valley &
Northern
Nevada, Series A, Refunding |
6.625%
|
1/1/32
|
$1,000,000
|
$992,865
(a)
| |
Goodwill
Industries of Sacramento Valley &
Northern
Nevada, Series A, Refunding |
6.875%
|
1/1/42
|
1,500,000
|
1,454,434
(a)
| |
Humangood
Obligated Group, Series A,
Refunding
|
4.000%
|
10/1/39
|
750,000
|
751,109
| |
Humangood
Obligated Group, Series A,
Refunding
|
4.000%
|
10/1/44
|
1,000,000
|
959,716
| |
California
State Public Finance Authority
Revenue,
Green Bonds, ENSO Village Project,
Series
A |
5.000%
|
11/15/46
|
500,000
|
490,607
| |
California
Statewide CDA Revenue: |
|
|
|
| |
Front
Porch Communities & Services,
Refunding
|
5.000%
|
4/1/47
|
1,300,000
|
1,315,449
| |
John
Muir Health, Series A, Refunding |
5.000%
|
12/1/49
|
3,750,000
|
4,044,573
| |
Total
Health Care |
16,499,989
| ||||
Housing
— 3.0% | |||||
California
State MFA Revenue, Caritas Project,
Social
Bonds, Series A, Refunding |
5.000%
|
8/15/54
|
1,800,000
|
1,883,755
| |
California
Statewide CDA Revenue: |
|
|
|
| |
CHF
Irvine LLC, Refunding |
5.000%
|
5/15/34
|
1,000,000
|
1,018,398
| |
CHF
Irvine LLC, Refunding |
5.000%
|
5/15/35
|
1,000,000
|
1,017,692
| |
CHF
Irvine LLC, Refunding |
5.000%
|
5/15/40
|
2,750,000
|
2,785,834
| |
Total
Housing |
6,705,679
| ||||
Industrial
Revenue — 27.7% | |||||
California
State Community Choice Financing
Authority
Revenue: |
|
|
|
| |
Clean
Energy Project, Green Bonds, Series A-1 |
4.000%
|
8/1/28
|
3,750,000
|
3,796,695
(b)(c)
| |
Clean
Energy Project, Green Bonds, Series B |
5.000%
|
12/1/32
|
2,200,000
|
2,342,959
(b)(c)
| |
Clean
Energy Project, Green Bonds, Series B-1 |
5.000%
|
8/1/29
|
2,900,000
|
3,079,523
(b)(c)
| |
Clean
Energy Project, Green Bonds, Series B-1 |
4.000%
|
8/1/31
|
6,515,000
|
6,581,920
(b)(c)
| |
Clean
Energy Project, Green Bonds, Series E-1 |
5.000%
|
3/1/31
|
1,500,000
|
1,604,894
(b)(c)
| |
California
State Infrastructure & Economic
Development
Bank Revenue, Los Angeles County
Museum
of Natural History Foundation,
Refunding
|
4.000%
|
7/1/50
|
4,000,000
|
3,868,846
| |
California
State MFA Special Facility Revenue,
United
Airlines, Inc., Los Angeles International
Airport
Project |
4.000%
|
7/15/29
|
1,000,000
|
999,167
(d)
|
Security
|
|
Rate
|
Maturity
Date
|
Face
Amount
|
Value
|
Industrial
Revenue — continued | |||||
California
State PCFA Water Furnishing
Revenue,
Poseidon Resources Desalination
Project
|
5.000%
|
11/21/45
|
$10,500,000
|
$10,506,817
(a)(d)
| |
Golden
State, CA, Tobacco Securitization Corp.,
Tobacco
Settlement Revenue, Senior Asset-
Backed
Bonds, Series A-1, Refunding |
5.000%
|
6/1/51
|
2,900,000
|
3,009,226
| |
Long
Beach, CA, Bond Finance Authority
Revenue:
|
|
|
|
| |
Natural
Gas Purchase, Series A |
5.000%
|
11/15/29
|
2,500,000
|
2,645,224
| |
Natural
Gas Purchase, Series A |
5.500%
|
11/15/37
|
5,000,000
|
5,828,283
| |
Northern
California Energy Authority, Commodity
Supply
Revenue, Refunding |
5.000%
|
8/1/30
|
7,350,000
|
7,875,346
(b)(c)
| |
San
Francisco, CA, City & County Airport
Commission,
International Airport Revenue, SFO
Fuel
Company LLC, Series A, Refunding |
5.000%
|
1/1/36
|
1,000,000
|
1,044,599
(d)
| |
Southern
California Public Power Authority,
Natural
Gas Revenue, Project No 1, Series A |
5.000%
|
11/1/33
|
4,805,000
|
5,174,051
| |
Tobacco
Securitization Authority of Southern
California
Revenue, Asset Backed Refunding,
San
Diego County Tobacco Asset Securitization
Corporation,
Class 2, Series B |
5.000%
|
6/1/48
|
2,880,000
|
2,922,643
| |
Total
Industrial Revenue |
61,280,193
| ||||
Leasing
— 3.9% | |||||
California
State Public Works Board, Lease
Revenue,
Various Capital Projects, Series B |
4.000%
|
3/1/45
|
1,000,000
|
1,004,306
(e)
| |
San
Mateo County, CA, Joint Powers Financing
Authority,
Lease Revenue: |
|
|
|
| |
Capital
Project, Series A |
5.000%
|
7/15/38
|
2,005,000
|
2,127,747
| |
Capital
Project, Series A |
5.000%
|
7/15/43
|
2,000,000
|
2,090,731
| |
Sanger,
CA, USD Revenue, COP, Capital Projects,
Refunding,
AGM |
5.000%
|
6/1/45
|
2,000,000
|
2,089,544
| |
South
San Francisco, CA, Public Facilities
Financing
Authority, Lease Revenue, Multiple
Capital
Projects, Series A |
5.250%
|
6/1/46
|
1,250,000
|
1,340,416
| |
Total
Leasing |
8,652,744
| ||||
Local
General Obligation — 3.3% | |||||
Folsom
Cordova, CA, USD: |
|
|
|
| |
School
Facilities Improvement District No 4,
GO,
Series A, Refunding |
5.000%
|
10/1/38
|
1,410,000
|
1,613,749
(f)
| |
School
Facilities Improvement District No 5,
GO,
Series B, Refunding |
5.000%
|
10/1/39
|
2,630,000
|
2,991,934
(f)
|
Security
|
|
Rate
|
Maturity
Date
|
Face
Amount
|
Value
|
Local
General Obligation — continued | |||||
Gilroy,
CA, USD, GO, Series 2021 |
4.000%
|
8/1/44
|
$1,000,000
|
$1,000,400
| |
Local
Public Schools Funding Authority, CA,
School
Improvement District No 2016-1, GO,
Series
A, BAM |
5.000%
|
8/1/46
|
1,600,000
|
1,638,318
| |
Total
Local General Obligation |
7,244,401
| ||||
Other
— 1.8% | |||||
California
State MFA Revenue, Senior Lien,
LINXS
APM Project, Series A |
5.000%
|
12/31/43
|
4,000,000
|
4,050,165
(d)
| |
Power
— 5.5% | |||||
Los
Angeles, CA, Department of Water & Power,
Power
System Revenue, Series C |
5.000%
|
7/1/42
|
5,000,000
|
5,090,593
| |
Puerto
Rico Electric Power Authority Revenue: |
|
|
|
| |
Series
A |
5.000%
|
7/1/42
|
1,050,000
|
511,875
*(g)
| |
Series
A |
5.050%
|
7/1/42
|
170,000
|
82,875
*(g)
| |
Series
XX |
5.250%
|
7/1/40
|
1,750,000
|
853,125
*(g)
| |
Series
ZZ, Refunding |
—
|
7/1/18
|
400,000
|
194,000
*(h)
| |
Sacramento
Municipal Utility District, CA,
Electric
Revenue, Green Bonds, Series M,
Refunding
|
5.000%
|
11/15/54
|
5,000,000
|
5,456,729
| |
Total
Power |
12,189,197
| ||||
Special
Tax Obligation — 4.3% | |||||
Puerto
Rico Sales Tax Financing Corp., Sales Tax
Revenue:
|
|
|
|
| |
CAB,
Restructured, Series A-1 |
0.000%
|
7/1/27
|
460,000
|
422,616
| |
CAB,
Restructured, Series A-1 |
0.000%
|
7/1/46
|
2,860,000
|
963,935
| |
Restructured,
Series A-1 |
4.550%
|
7/1/40
|
110,000
|
110,293
| |
Restructured,
Series A-1 |
4.750%
|
7/1/53
|
1,030,000
|
1,024,930
| |
Restructured,
Series A-1 |
5.000%
|
7/1/58
|
420,000
|
421,770
| |
Restructured,
Series A-2 |
4.329%
|
7/1/40
|
1,190,000
|
1,187,028
| |
River
Islands, CA, Public Financing Authority,
Special
Tax Revenue: |
|
|
|
| |
Community
Facilities District No 2003-1 |
5.750%
|
9/1/52
|
600,000
|
634,041
| |
Community
Facilities District No 2003-1,
Series
A-1, Refunding, AGM |
5.250%
|
9/1/52
|
750,000
|
801,340
| |
Community
Facilities District No 2023-1 |
4.500%
|
9/1/44
|
650,000
|
643,637
| |
Community
Facilities District No 2023-1 |
5.000%
|
9/1/48
|
1,650,000
|
1,683,375
| |
Community
Facilities District No 2023-1 |
5.625%
|
9/1/53
|
1,600,000
|
1,692,893
| |
Total
Special Tax Obligation |
9,585,858
|
Security
|
|
Rate
|
Maturity
Date
|
Face
Amount
|
Value
|
State
General Obligation — 0.9% | |||||
Puerto
Rico Commonwealth, GO: |
|
|
|
| |
CAB,
Restructured, Series A-1 |
0.000%
|
7/1/33
|
$26,607
|
$18,876
| |
Restructured,
Series A-1 |
5.375%
|
7/1/25
|
11,497
|
11,561
| |
Restructured,
Series A-1 |
5.625%
|
7/1/27
|
22,818
|
23,873
| |
Restructured,
Series A-1 |
5.625%
|
7/1/29
|
22,448
|
24,196
| |
Restructured,
Series A-1 |
5.750%
|
7/1/31
|
21,803
|
24,359
| |
Restructured,
Series A-1 |
4.000%
|
7/1/33
|
20,675
|
20,844
| |
Restructured,
Series A-1 |
4.000%
|
7/1/35
|
408,584
|
409,929
| |
Restructured,
Series A-1 |
4.000%
|
7/1/37
|
1,225,000
|
1,218,620
| |
Restructured,
Series A-1 |
4.000%
|
7/1/41
|
196,686
|
189,579
| |
Restructured,
Series A-1 |
4.000%
|
7/1/46
|
22,553
|
20,582
| |
Subseries
CW |
0.000%
|
11/1/43
|
85,317
|
53,750
(c)
| |
Total
State General Obligation |
2,016,169
| ||||
Transportation
— 20.1% | |||||
Alameda,
CA, Corridor Transportation Authority
Revenue:
|
|
|
|
| |
Convertible
CAB, Series C, AGM |
5.000%
|
10/1/52
|
2,750,000
|
2,926,590
| |
Second
Subordinated Lien, Series B,
Refunding
|
5.000%
|
10/1/34
|
6,500,000
|
6,631,496
| |
Foothill-Eastern
Transportation Corridor Agency,
CA,
Toll Road Revenue, Senior Lien, Series A |
4.000%
|
1/15/46
|
1,000,000
|
982,182
| |
Long
Beach, CA, Marina System Revenue,
Alamitos
Bay Marina Project |
5.000%
|
5/15/45
|
2,085,000
|
2,085,805
| |
Los
Angeles, CA, Department of Airports
Revenue:
|
|
|
|
| |
Los
Angeles International Airport,
Subordinated,
Series C |
5.000%
|
5/15/44
|
4,000,000
|
4,047,371
(d)
| |
Los
Angeles International Airport,
Subordinated,
Series F, Refunding |
5.000%
|
5/15/34
|
3,300,000
|
3,476,088
(d)
| |
Los
Angeles, CA, Harbor Department Revenue: |
|
|
|
| |
Series
A-1, Refunding |
5.000%
|
8/1/34
|
2,000,000
|
2,242,424
(d)
| |
Series
A-1, Refunding |
5.000%
|
8/1/35
|
2,000,000
|
2,234,060
(d)
| |
San
Diego County, CA, Regional Airport
Authority
Revenue, Series B |
5.000%
|
7/1/46
|
5,250,000
|
5,452,011
(d)
| |
San
Francisco, CA, City & County Airport
Commission,
International Airport Revenue: |
|
|
|
| |
Series
A, Refunding |
5.000%
|
5/1/36
|
2,900,000
|
3,111,943
(d)
| |
Series
D, Unrefunded |
5.000%
|
5/1/48
|
3,000,000
|
3,036,770
(d)
| |
Series
E, Refunding |
5.000%
|
5/1/35
|
4,750,000
|
4,984,857
(d)
|
Security
|
|
Rate
|
Maturity
Date
|
Face
Amount
|
Value
|
Transportation
— continued | |||||
Stockton,
CA, Public Financing Authority
Revenue,
Refunding |
5.000%
|
3/1/47
|
$3,250,000
|
$3,218,565
| |
Total
Transportation |
44,430,162
| ||||
Water
& Sewer — 8.9% | |||||
California
State Infrastructure & Economic
Development
Bank Revenue, Green Bonds, Clean
Water
State Revolving Fund, Series B |
5.000%
|
10/1/48
|
4,000,000
|
4,157,463
| |
Fillmore,
CA, Wastewater Revenue, Refunding,
AGM
|
5.000%
|
5/1/47
|
4,500,000
|
4,597,545
| |
Mountain
House Public Financing Authority, CA,
Utility
Systems Revenue, Green Bonds, Series A,
BAM
|
4.000%
|
12/1/45
|
3,000,000
|
3,006,178
| |
Puerto
Rico Commonwealth Aqueduct & Sewer
Authority
Revenue, Senior Lien, Series A,
Refunding
|
5.000%
|
7/1/47
|
1,150,000
|
1,167,772
(a)
| |
San
Francisco, CA, City & County Public Utilities
Commission
Revenue, Green Bonds, Series C,
Refunding
|
4.000%
|
11/1/41
|
1,500,000
|
1,546,760
| |
Southern
California Water Replenishment
District
Financing Authority, Replenishment
Revenue:
|
|
|
|
| |
Series
2018 |
5.000%
|
8/1/43
|
3,000,000
|
3,154,570
| |
Series
2018 |
5.000%
|
8/1/48
|
2,000,000
|
2,088,605
| |
Total
Water & Sewer |
19,718,893
| ||||
| |||||
Total
Municipal Bonds (Cost — $215,835,576) |
216,768,218
| ||||
Municipal
Bonds Deposited in Tender Option Bond Trust(i)
— 7.2% | |||||
Leasing
— 7.2% | |||||
Los
Angeles County, CA, Public Works Financing
Authority,
Lease Revenue, Series H
(Cost
— $15,956,478) |
5.000%
|
12/1/49
|
14,500,000
|
15,952,779
| |
| |||||
Total
Investments before Short-Term Investments (Cost — $231,792,054) |
232,720,997
| ||||
Short-Term
Investments — 0.6% | |||||
Municipal
Bonds — 0.6% | |||||
Education
— 0.1% | |||||
University
of California Revenue, Series AL-3,
Refunding
|
2.750%
|
5/15/48
|
300,000
|
300,000
(j)(k)
| |
Housing
— 0.3% | |||||
California
Statewide CDA, MFH Revenue, David
Avenue
Apartments, Series WW, LIQ - FHLMC
|
3.310%
|
12/1/42
|
580,000
|
580,000
(d)(j)(k)
|
Security
|
|
Rate
|
Maturity
Date
|
Face
Amount
|
Value
|
| |||||
Industrial
Revenue — 0.2% | |||||
California
State MFA Revenue, Chevron USA Inc.
Project,
Series A |
2.650%
|
11/1/35
|
$415,000
|
$415,000
(j)(k)
| |
| |||||
Total
Short-Term Investments (Cost — $1,295,000) |
1,295,000
| ||||
Total
Investments — 105.6% (Cost — $233,087,054) |
234,015,997
| ||||
TOB
Floating Rate Notes — (4.4)% |
(9,665,000
) | ||||
Other
Liabilities in Excess of Other Assets — (1.2)% |
(2,714,228
) | ||||
Total
Net Assets — 100.0% |
$221,636,769
|
*
|
Non-income
producing security. |
(a)
|
Security
is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in
transactions
that are exempt from registration, normally to qualified institutional buyers. This security has been
deemed
liquid pursuant to guidelines approved by the Board of Trustees.
|
(b)
|
Maturity
date shown represents the mandatory tender 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)
|
Income
from this issue is considered a preference item for purposes of calculating the alternative minimum tax
(“AMT”).
|
(e)
|
All
or a portion of this security is held at the broker as collateral for open futures contracts. |
(f)
|
Securities
traded on a when-issued or delayed delivery basis. |
(g)
|
The
coupon payment on this security is currently in default as of February 28, 2025. |
(h)
|
The
maturity principal is currently in default as of February 28, 2025. |
(i)
|
Represents
securities deposited into a special purpose entity, referred to as a Tender Option Bond (“TOB”)
trust
(Note
1). |
(j)
|
Variable
rate demand obligations (“VRDOs”) have a demand feature under which the Fund can tender them back to
the
issuer or liquidity provider on no more than 7 days notice. The interest rate generally resets on a daily or
weekly
basis and is determined on the specific interest rate reset date by the remarketing agent, pursuant to a
formula
specified in official documents for the VRDO, or set at the highest rate allowable as specified in official
documents
for the VRDO. VRDOs are benchmarked to the Securities Industry and Financial Markets Association
(“SIFMA”)
Municipal Swap Index. The SIFMA Municipal Swap Index is compiled from weekly interest rate resets
of
tax-exempt VRDOs reported to the Municipal Securities Rulemaking Board’s Short-term Obligation Rate
Transparency
System. |
(k)
|
Maturity
date shown is the final maturity date. The security may be sold back to the issuer before final maturity. |
Abbreviation(s)
used in this schedule: | ||
AGM
|
—
|
Assured
Guaranty Municipal Corporation — Insured
Bonds |
BAM
|
—
|
Build
America Mutual — Insured
Bonds |
CAB
|
—
|
Capital
Appreciation Bonds |
CDA
|
—
|
Communities
Development Authority |
COP
|
—
|
Certificates
of Participation |
FHLMC
|
—
|
Federal
Home Loan Mortgage Corporation |
GO
|
—
|
General
Obligation |
LIQ
|
—
|
Liquidity
Facility |
MFA
|
—
|
Municipal
Finance Authority |
MFH
|
—
|
Multi-Family
Housing |
PCFA
|
—
|
Pollution
Control Financing Authority |
USD
|
—
|
Unified
School District |
|
Number
of
Contracts
|
Expiration
Date
|
Notional
Amount
|
Market
Value
|
Unrealized
Appreciation
|
Contracts
to Buy: |
|
|
|
|
|
U.S.
Treasury Ultra Long-Term
Bonds
|
60
|
6/25
|
$7,249,016
|
$7,447,500
|
$198,484
|
Assets:
|
|
Investments,
at value (Cost — $233,087,054) |
$234,015,997
|
Cash
|
2,125
|
Interest
receivable |
2,625,581
|
Receivable
for securities sold
|
424,200
|
Receivable
from brokers — net variation margin on open futures contracts |
43,125
|
Receivable
for Fund shares sold |
23,816
|
Deposits
with brokers for open futures contracts |
917
|
Prepaid
expenses |
28,264
|
Total
Assets |
237,164,025
|
Liabilities:
|
|
TOB
Floating Rate Notes (Note
1) |
9,665,000
|
Payable
for securities purchased |
5,000,721
|
Payable
for Fund shares repurchased |
546,344
|
Interest
and commitment fees payable |
75,518
|
Investment
management fee payable |
62,889
|
Distributions
payable |
25,700
|
Service
and/or distribution fees payable |
22,621
|
Trustees’
fees payable |
851
|
Accrued
expenses |
127,612
|
Total
Liabilities |
15,527,256
|
Total
Net Assets |
$221,636,769
|
Net
Assets: |
|
Par
value (Note
7) |
$157
|
Paid-in
capital in excess of par value |
230,200,962
|
Total
distributable earnings (loss)
|
(8,564,350
) |
Total
Net Assets |
$221,636,769
|
Net
Assets: |
|
Class
A |
$184,169,332
|
Class
C |
$2,494,005
|
Class
I |
$30,413,474
|
Class
IS |
$4,559,958
|
Shares
Outstanding: |
|
Class
A |
13,059,530
|
Class
C |
177,359
|
Class
I |
2,156,895
|
Class
IS |
323,717
|
Net
Asset Value: |
|
Class
A (and
redemption price) |
$14.10
|
Class
C*
|
$14.06
|
Class
I (and
redemption price) |
$14.10
|
Class
IS (and
redemption price) |
$14.09
|
Maximum
Public Offering Price Per Share: |
|
Class
A (based on maximum initial sales charge of 3.75%) |
$14.65
|
*
|
Redemption
price per share is NAV of Class C shares reduced by a 1.00% CDSC if shares are redeemed within
one
year from purchase payment (Note 2).
|
Investment
Income: |
|
Interest
|
$9,028,192
|
Expenses:
|
|
Investment
management fee (Note
2) |
1,053,784
|
Service
and/or distribution fees
(Notes 2 and 5)
|
313,919
|
Transfer
agent fees (Notes 2 and 5) |
186,998
|
Interest
expense (Note 1)
|
166,490
|
Fund
accounting fees |
69,584
|
Registration
fees |
63,592
|
Audit
and tax fees |
38,839
|
Shareholder
reports |
22,475
|
Legal
fees |
13,409
|
Trustees’
fees |
6,205
|
Commitment
fees (Note
8) |
2,116
|
Insurance
|
1,933
|
Custody
fees |
642
|
Miscellaneous
expenses |
14,671
|
Total
Expenses |
1,954,657
|
Less:
Fee waivers and/or expense reimbursements (Notes
2 and 5) |
(93,447
) |
Net
Expenses |
1,861,210
|
Net
Investment Income |
7,166,982
|
Realized
and Unrealized Gain (Loss) on Investments and Futures Contracts
(Notes 1, 3 and 4):
| |
Net
Realized Loss From: |
|
Investment
transactions |
(852,730
) |
Futures
contracts |
(393,695
) |
Net
Realized Loss
|
(1,246,425
) |
Change
in Net Unrealized Appreciation (Depreciation) From: |
|
Investments
|
1,665,723
|
Futures
contracts |
107,104
|
Change
in Net Unrealized Appreciation (Depreciation)
|
1,772,827
|
Net
Gain on Investments and Futures Contracts
|
526,402
|
Increase
in Net Assets From Operations |
$7,693,384
|
For
the Year Ended February 28, 2025
and
the Year Ended February 29, 2024 |
2025
|
2024
|
Operations:
|
|
|
Net
investment income
|
$7,166,982
|
$7,884,507
|
Net
realized loss
|
(1,246,425
) |
(2,367,899
) |
Change
in net unrealized appreciation (depreciation)
|
1,772,827
|
6,681,524
|
Increase
in Net Assets From Operations |
7,693,384
|
12,198,132
|
Distributions
to Shareholders From (Notes
1 and 6): |
|
|
Total
distributable earnings |
(7,072,373
) |
(7,810,332
) |
Decrease
in Net Assets From Distributions to Shareholders |
(7,072,373
) |
(7,810,332
) |
Fund
Share Transactions (Note
7): |
|
|
Net
proceeds from sale of shares
|
21,767,678
|
35,574,520
|
Reinvestment
of distributions |
6,742,826
|
7,460,553
|
Cost
of shares repurchased
|
(53,494,773
) |
(93,665,561
) |
Decrease
in Net Assets From Fund Share Transactions |
(24,984,269
) |
(50,630,488
) |
Decrease
in Net Assets |
(24,363,258
) |
(46,242,688
) |
Net
Assets: |
|
|
Beginning
of year |
246,000,027
|
292,242,715
|
End
of year |
$221,636,769
|
$246,000,027
|
For
a share of each class of beneficial interest outstanding throughout each year ended February 28,
unless
otherwise noted: | |||||
Class
A Shares1
|
2025
|
20242
|
2023
|
2022
|
2021
|
Net
asset value, beginning of year |
$14.06
|
$13.81
|
$15.20
|
$15.76
|
$16.55
|
Income
(loss) from operations: | |||||
Net
investment income |
0.43
|
0.40
|
0.36
|
0.36
|
0.42
|
Net
realized and unrealized gain (loss) |
0.03
|
0.25
|
(1.36
) |
(0.38
) |
(0.55
) |
Total
income (loss) from operations |
0.46
|
0.65
|
(1.00)
|
(0.02)
|
(0.13)
|
Less
distributions from: |
|
|
|
|
|
Net
investment income |
(0.42
) |
(0.40
) |
(0.36
) |
(0.35
) |
(0.41
) |
Net
realized gains |
—
|
—
|
(0.03
) |
(0.19
) |
(0.25
) |
Total
distributions
|
(0.42
) |
(0.40
) |
(0.39
) |
(0.54
) |
(0.66
) |
Net
asset value, end of year |
$14.10
|
$14.06
|
$13.81
|
$15.20
|
$15.76
|
Total
return3
|
3.39
% |
4.81
% |
(6.57
)% |
(0.19
)% |
(0.70
)% |
Net
assets, end of year (millions) |
$184
|
$204
|
$241
|
$290
|
$318
|
Ratios
to average net assets: | |||||
Gross
expenses |
0.85
% |
0.75
% |
0.77
% |
0.77
% |
0.77
% |
Net
expenses4
|
0.82
|
0.74
|
0.76
|
0.76
|
0.77
|
Net
investment income |
3.04
|
2.93
|
2.59
|
2.25
|
2.64
|
Portfolio
turnover rate |
27
% |
4
% |
21
% |
17
% |
16
% |
1
|
Per
share amounts have been calculated using the average shares method. |
2
|
For
the year ended February 29. |
3
|
Performance
figures, exclusive of sales charges, may reflect compensating balance arrangements, fee waivers
and/or
expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or
expense
reimbursements, the total return would have been lower. Past performance is no guarantee of future
results.
|
4
|
Reflects
fee waivers and/or expense reimbursements. |
For
a share of each class of beneficial interest outstanding throughout each year ended February 28,
unless
otherwise noted: | |||||
Class
C Shares1
|
2025
|
20242
|
2023
|
2022
|
2021
|
Net
asset value, beginning of year |
$14.02
|
$13.77
|
$15.15
|
$15.72
|
$16.50
|
Income
(loss) from operations: | |||||
Net
investment income |
0.35
|
0.33
|
0.29
|
0.27
|
0.33
|
Net
realized and unrealized gain (loss) |
0.03
|
0.25
|
(1.36
) |
(0.38
) |
(0.53
) |
Total
income (loss) from operations |
0.38
|
0.58
|
(1.07)
|
(0.11)
|
(0.20)
|
Less
distributions from: |
|
|
|
|
|
Net
investment income |
(0.34
) |
(0.33
) |
(0.28
) |
(0.27
) |
(0.33
) |
Net
realized gains |
—
|
—
|
(0.03
) |
(0.19
) |
(0.25
) |
Total
distributions
|
(0.34
) |
(0.33
) |
(0.31
) |
(0.46
) |
(0.58
) |
Net
asset value, end of year |
$14.06
|
$14.02
|
$13.77
|
$15.15
|
$15.72
|
Total
return3
|
2.78
% |
4.26
% |
(7.02
)% |
(0.81
)% |
(1.18
)% |
Net
assets, end of year (000s) |
$2,494
|
$3,626
|
$7,378
|
$11,708
|
$17,351
|
Ratios
to average net assets: | |||||
Gross
expenses |
1.38
% |
1.28
% |
1.31
% |
1.31
% |
1.32
% |
Net
expenses4
|
1.35
|
1.27
|
1.29
|
1.31
|
1.32
|
Net
investment income |
2.50
|
2.38
|
2.04
|
1.70
|
2.10
|
Portfolio
turnover rate |
27
% |
4
% |
21
% |
17
% |
16
% |
1
|
Per
share amounts have been calculated using the average shares method. |
2
|
For
the year ended February 29. |
3
|
Performance
figures, exclusive of CDSC, may reflect compensating balance arrangements, fee waivers and/or
expense
reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense
reimbursements,
the total return would have been lower. Past performance is no guarantee of future results.
|
4
|
Reflects
fee waivers and/or expense reimbursements. |
For
a share of each class of beneficial interest outstanding throughout each year ended February 28,
unless
otherwise noted: | |||||
Class
I Shares1
|
2025
|
20242
|
2023
|
2022
|
2021
|
Net
asset value, beginning of year |
$14.06
|
$13.81
|
$15.20
|
$15.76
|
$16.55
|
Income
(loss) from operations: | |||||
Net
investment income |
0.45
|
0.43
|
0.39
|
0.38
|
0.45
|
Net
realized and unrealized gain (loss) |
0.04
|
0.25
|
(1.37
) |
(0.37
) |
(0.55
) |
Total
income (loss) from operations |
0.49
|
0.68
|
(0.98)
|
0.01
|
(0.10)
|
Less
distributions from: |
|
|
|
|
|
Net
investment income |
(0.45
) |
(0.43
) |
(0.38
) |
(0.38
) |
(0.44
) |
Net
realized gains |
—
|
—
|
(0.03
) |
(0.19
) |
(0.25
) |
Total
distributions
|
(0.45
) |
(0.43
) |
(0.41
) |
(0.57
) |
(0.69
) |
Net
asset value, end of year |
$14.10
|
$14.06
|
$13.81
|
$15.20
|
$15.76
|
Total
return3
|
3.53
% |
5.01
% |
(6.41
)% |
(0.03
)% |
(0.53
)% |
Net
assets, end of year (000s) |
$30,413
|
$34,358
|
$43,979
|
$72,278
|
$55,204
|
Ratios
to average net assets: | |||||
Gross
expenses |
0.71
% |
0.61
% |
0.63
% |
0.63
% |
0.63
% |
Net
expenses4,5
|
0.62
|
0.55
|
0.59
|
0.60
|
0.60
|
Net
investment income |
3.23
|
3.11
|
2.74
|
2.41
|
2.82
|
Portfolio
turnover rate |
27
% |
4
% |
21
% |
17
% |
16
% |
1
|
Per
share amounts have been calculated using the average shares method. |
2
|
For
the year ended February 29. |
3
|
Performance
figures may reflect compensating balance arrangements, fee waivers and/or expense
reimbursements.
In the absence of compensating balance arrangements, fee waivers and/or expense
reimbursements,
the total return would have been lower. Past performance is no guarantee of future results. |
4
|
As
a result of an expense limitation arrangement, effective December 1, 2022, the ratio of total annual fund
operating
expenses, other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and
expenses,
to average net assets of Class I shares did not exceed 0.55%. Total annual fund operating expenses,
after
waiving and/or reimbursing expenses, exceeded the expense limitation as a result of interest expense. This
expense
limitation arrangement cannot be terminated prior to December 31, 2026 without the Board of Trustees’
consent.
Prior to December 1, 2022, the expense limitation was 0.60%. |
5
|
Reflects
fee waivers and/or expense reimbursements. |
For
a share of each class of beneficial interest outstanding throughout each year ended February 28,
unless
otherwise noted: | |||||
Class
IS Shares1
|
2025
|
20242
|
2023
|
2022
|
2021
|
Net
asset value, beginning of year |
$14.04
|
$13.79
|
$15.17
|
$15.76
|
$16.55
|
Income
(loss) from operations: | |||||
Net
investment income |
0.46
|
0.45
|
0.40
|
0.39
|
0.47
|
Net
realized and unrealized gain (loss) |
0.04
|
0.23
|
(1.36
) |
(0.39
) |
(0.53
) |
Total
income (loss) from operations |
0.50
|
0.68
|
(0.96)
|
0.00
|
(0.06)
|
Less
distributions from: |
|
|
|
|
|
Net
investment income |
(0.45
) |
(0.43
) |
(0.39
) |
(0.40
) |
(0.48
) |
Net
realized gains |
—
|
—
|
(0.03
) |
(0.19
) |
(0.25
) |
Total
distributions
|
(0.45
) |
(0.43
) |
(0.42
) |
(0.59
) |
(0.73
) |
Net
asset value, end of year |
$14.09
|
$14.04
|
$13.79
|
$15.17
|
$15.76
|
Total
return3
|
3.63
% |
5.04
% |
(6.31
)% |
(0.07
)% |
(0.30
)% |
Net
assets, end of year (000s) |
$4,560
|
$3,519
|
$158
|
$68
|
$70
|
Ratios
to average net assets: | |||||
Gross
expenses |
0.62
% |
0.54
% |
0.59
% |
0.59
% |
0.47
% |
Net
expenses4,5
|
0.59
|
0.52
|
0.54
|
0.55
|
0.47
|
Net
investment income |
3.28
|
3.23
|
2.84
|
2.46
|
3.00
|
Portfolio
turnover rate |
27
% |
4
% |
21
% |
17
% |
16
% |
1
|
Per
share amounts have been calculated using the average shares method. |
2
|
For
the year ended February 29. |
3
|
Performance
figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements.
In
the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total
return
would have been lower. Past performance is no guarantee of future results.
|
4
|
As
a result of an expense limitation arrangement, effective December 1, 2022, the
ratio of total annual fund
operating
expenses, other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and
expenses,
to average net assets of Class IS shares did not exceed 0.52%. Total annual fund operating expenses,
after
waiving and/or reimbursing expenses, exceeded the expense limitation as a result of interest expense. In
addition,
the ratio of total annual fund operating expenses for Class IS shares did not exceed the ratio of total
annual
fund operating expenses for Class I shares. These expense limitation arrangements cannot be terminated
prior
to December 31, 2026 without the Board of Trustees’ consent. Prior to December 1, 2022, the expense
limitation
was 0.55%. |
5
|
Reflects
fee waivers and/or expense reimbursements. |
ASSETS
| ||||
Description
|
Quoted
Prices
(Level
1) |
Other
Significant
Observable
Inputs
(Level
2) |
Significant
Unobservable
Inputs
(Level
3) |
Total
|
Long-Term
Investments†: |
|
|
|
|
Municipal
Bonds |
—
|
$216,768,218
|
—
|
$216,768,218
|
Municipal
Bonds Deposited in
Tender
Option Bond Trust |
—
|
15,952,779
|
—
|
15,952,779
|
Total
Long-Term Investments |
—
|
232,720,997
|
—
|
232,720,997
|
Short-Term
Investments† |
—
|
1,295,000
|
—
|
1,295,000
|
Total
Investments |
—
|
$234,015,997
|
—
|
$234,015,997
|
Other
Financial Instruments: |
|
|
|
|
Futures
Contracts†† |
$198,484
|
—
|
—
|
$198,484
|
Total
|
$198,484
|
$234,015,997
|
—
|
$234,214,481
|
†
|
See
Schedule of Investments for additional detailed categorizations. |
††
|
Reflects
the unrealized appreciation (depreciation) of the instruments. |
|
Class
A |
Class
C |
Class
I |
Class
IS |
Expires
February 28, 2026 |
$36,747
|
$971
|
$22,598
|
$213
|
Expires
February 28, 2027 |
63,982
|
967
|
27,211
|
1,287
|
Total
fee waivers/expense reimbursements subject to
recapture
|
$100,729
|
$1,938
|
$49,809
|
$1,500
|
|
Class
A |
Sales
charges |
$4,579
|
CDSCs
|
917
|
Purchases
|
$65,503,004
|
Sales
|
70,410,617
|
|
Cost*
|
Gross
Unrealized
Appreciation
|
Gross
Unrealized
Depreciation
|
Net
Unrealized
Appreciation
|
Securities
|
$222,359,062
|
$6,774,200
|
$(4,782,265)
|
$1,991,935
|
Futures
contracts |
—
|
198,484
|
—
|
198,484
|
*
|
Cost
of investments for federal income tax purposes includes the value of Inverse Floaters issued in TOB
transactions
(Note 1). |
ASSET
DERIVATIVES1
| |
|
Interest
Rate
Risk |
Futures
contracts2
|
$198,484
|
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. |
AMOUNT
OF NET REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED | |
|
Interest
Rate
Risk |
Futures
contracts |
$(393,695
) |
CHANGE
IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED | |
|
Interest
Rate
Risk |
Futures
contracts |
$107,104
|
|
Average
Market
Value
|
Futures
contracts (to buy) |
$7,530,144
|
|
Service
and/or
Distribution
Fees |
Transfer
Agent
Fees
|
Class
A |
$293,230
|
$157,875
|
Class
C |
20,689
|
1,745
|
Class
I |
—
|
27,354
|
Class
IS |
—
|
24
|
Total
|
$313,919
|
$186,998
|
|
Waivers/Expense
Reimbursements
|
Class
A |
$63,982
|
Class
C |
967
|
Class
I |
27,211
|
Class
IS |
1,287
|
Total
|
$93,447
|
|
Year
Ended
February
28, 2025 |
Year
Ended
February
29, 2024 |
Net
Investment Income: |
|
|
Class
A |
$5,855,557
|
$6,360,747
|
Class
C |
72,591
|
136,062
|
Class
I |
1,018,952
|
1,277,934
|
Class
IS |
125,273
|
35,589
|
Total
|
$7,072,373
|
$7,810,332
|
|
Year Ended
February
28, 2025 |
Year Ended
February
29, 2024 | ||
|
Shares
|
Amount
|
Shares
|
Amount
|
Class
A |
|
|
|
|
Shares
sold |
1,117,970
|
$15,719,472
|
1,235,794
|
$17,052,283
|
Shares
issued on reinvestment |
399,869
|
5,618,508
|
443,312
|
6,124,731
|
Shares
repurchased |
(3,004,231
) |
(42,174,429
) |
(4,569,880
) |
(63,154,647
) |
Net
decrease |
(1,486,392
) |
$(20,836,449
) |
(2,890,774
) |
$(39,977,633
) |
Class
C |
|
|
|
|
Shares
sold |
19,779
|
$277,325
|
19,151
|
$262,181
|
Shares
issued on reinvestment |
5,067
|
70,938
|
9,501
|
130,879
|
Shares
repurchased |
(106,129
) |
(1,489,932
) |
(305,981
) |
(4,217,418
) |
Net
decrease |
(81,283
) |
$(1,141,669
) |
(277,329
) |
$(3,824,358
) |
|
Year Ended
February
28, 2025 |
Year Ended
February
29, 2024 | ||
|
Shares
|
Amount
|
Shares
|
Amount
|
Class
I |
|
|
|
|
Shares
sold |
298,283
|
$4,187,142
|
1,084,455
|
$14,883,749
|
Shares
issued on reinvestment |
66,062
|
928,107
|
84,703
|
1,169,560
|
Shares
repurchased |
(651,483
) |
(9,140,453
) |
(1,910,748
) |
(26,116,323
) |
Net
decrease |
(287,138
) |
$(4,025,204
) |
(741,590
) |
$(10,063,014
) |
Class
IS |
|
|
|
|
Shares
sold |
113,265
|
$1,583,739
|
249,672
|
$3,376,307
|
Shares
issued on reinvestment |
8,925
|
125,273
|
2,526
|
35,383
|
Shares
repurchased |
(49,059
) |
(689,959
) |
(13,088
) |
(177,173
) |
Net
increase |
73,131
|
$1,019,053
|
239,110
|
$3,234,517
|
|
2025
|
2024
|
Distributions
paid from: |
|
|
Tax-exempt
income |
$7,066,713
|
$7,808,469
|
Ordinary
income |
5,660
|
1,863
|
Total
distributions paid |
$7,072,373
|
$7,810,332
|
Undistributed
tax-exempt income — net |
$489,068
|
Deferred
capital losses* |
(11,019,651)
|
Other
book/tax temporary differences(a)
|
(224,186)
|
Unrealized
appreciation (depreciation)(b)
|
2,190,419
|
Total
distributable earnings (loss) — net |
$(8,564,350)
|
*
|
These
capital losses have been deferred in the current year as either short-term or long-term losses. The losses
will
be deemed to occur on the first day of the next taxable year in the same character as they were originally
deferred
and will be available to offset future taxable capital gains. |
(a)
|
Other
book/tax temporary differences are attributable to book/tax differences in the timing of the deductibility of
various
expenses. |
(b)
|
The
difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable to the tax
deferral
of losses on wash sales; difference between book and tax accretion methods for market discount on
fixed
income securities and the book/tax differences in the accrual of interest income on securities in default
and
other book/tax basis adjustments. |
|
Pursuant
to: |
Amount
Reported |
Exempt-Interest
Dividends Distributed |
§852(b)(5)(A)
|
$7,066,713
|
Qualified
Net Interest Income (QII) |
§871(k)(1)(C)
|
$5,660
|
Section
163(j) Interest Earned |
§163(j)
|
$106,773
|
Interest
Earned from Federal Obligations |
Note
(1) |
$268
|
Changes
in and Disagreements with Accountants |
For
the period covered by this report |
Not
applicable. |
|
Results
of Meeting(s) of Shareholders |
For
the period covered by this report |
Not
applicable. |
|
Remuneration
Paid to Directors, Officers and Others |
For
the period covered by this report |
Refer
to the financial statements included herein. |
ITEM 8. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
ITEM 9. | PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
ITEM 10. | REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
ITEM 11. | STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR, as applicable.
ITEM 12. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 13. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 14. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
Not applicable.
ITEM 15. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees that would require disclosure herein.
ITEM 16. | CONTROLS AND PROCEDURES. |
(a) | The Registrant’s principal executive officer and principal financial officer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934. |
(b) | There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected or are likely to materially affect the Registrant’s internal control over financial reporting. |
ITEM 17. | DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 18. | RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION. |
(a) | Not applicable. |
(b) | Not applicable. |
ITEM 19. | EXHIBITS. |
(a) (1) Code of Ethics attached hereto.
Exhibit 99.CODE ETH
(a) (3) Certifications pursuant to section 302 of the Sarbanes-Oxley Act of 2002 attached hereto.
Exhibit 99.CERT
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto.
Exhibit 99.906CERT
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this Report to be signed on its behalf by the undersigned, there unto duly authorized.
Legg Mason Partners Income Trust | ||
By: | /s/ Jane Trust | |
Jane Trust | ||
Chief Executive Officer | ||
Date: | April 21, 2025 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Jane Trust | |
Jane Trust | ||
Chief Executive Officer | ||
Date: | April 21, 2025 |
By: | /s/ Christopher Berarducci | |
Christopher Berarducci | ||
Principal Financial Officer | ||
Date: | April 21, 2025 |