Statement of operations (unaudited)
For the Six Months Ended June 30, 2022
|
|
|
|
|
|
|
| Investment Income: |
|
|
|
|
| Interest |
|
$ |
6,141,682 |
|
| Dividends from unaffiliated investments |
|
|
20,938 |
|
| Dividends from affiliated investments |
|
|
4,292 |
|
| Less: Foreign taxes withheld |
|
|
(7,000) |
|
| Total Investment
Income |
|
|
6,159,912 |
|
|
|
| Expenses: |
|
|
|
|
| Investment management fee (Note 2) |
|
|
610,037 |
|
| Interest expense (Notes 3 and 5) |
|
|
373,696 |
|
| Audit and tax fees |
|
|
34,766 |
|
| Legal fees |
|
|
20,302 |
|
| Transfer agent fees |
|
|
18,526 |
|
| Trustees’ fees |
|
|
18,104 |
|
| Fund accounting fees |
|
|
14,887 |
|
| Commitment fees (Note 5) |
|
|
14,581 |
|
| Excise tax (Note 1) |
|
|
6,544 |
|
| Stock exchange listing fees |
|
|
6,194 |
|
| Shareholder reports |
|
|
6,012 |
|
| Custody fees |
|
|
1,706 |
|
| Insurance |
|
|
399 |
|
| Miscellaneous expenses |
|
|
3,555 |
|
| Total Expenses |
|
|
1,129,309 |
|
| Less: Fee waivers and/or expense reimbursements (Note 2) |
|
|
(838) |
|
| Net Expenses |
|
|
1,128,471 |
|
| Net Investment Income |
|
|
5,031,441 |
|
|
| Realized and Unrealized Gain (Loss) on Investments, Forward Foreign Currency Contracts and Foreign Currency Transactions (Notes 1, 3 and
4): |
|
| Net Realized Gain (Loss) From: |
|
|
|
|
| Investment transactions in unaffiliated securities |
|
|
(6,986,463) |
|
| Forward foreign currency contracts |
|
|
120,399 |
|
| Foreign currency transactions |
|
|
(23,635) |
|
| Net Realized Loss |
|
|
(6,889,699) |
|
| Change in Net Unrealized Appreciation (Depreciation) From: |
|
|
|
|
| Investments in unaffiliated securities |
|
|
(28,535,372) |
† |
| Forward foreign currency contracts |
|
|
153,449 |
|
| Foreign currencies |
|
|
27,370 |
|
| Change in Net Unrealized Appreciation
(Depreciation) |
|
|
(28,354,553) |
|
| Net Loss on Investments, Forward Foreign Currency Contracts and Foreign Currency Transactions |
|
|
(35,244,252) |
|
| Decrease in Net Assets From Operations |
|
$ |
(30,212,811) |
|
| † |
Net of change in accrued foreign capital gains tax of $1,443. |
See Notes to Financial Statements.
|
|
|
|
|
| Western Asset Premier Bond Fund 2022 Semi-Annual Report |
|
|
|
21 |
Statements of changes in net assets
|
|
|
|
|
|
|
|
|
| For the Six Months Ended June 30, 2022 (unaudited)
and the Year Ended December 31, 2021 |
|
2022 |
|
|
2021 |
|
|
|
|
| Operations: |
|
|
|
|
|
|
|
|
| Net investment income |
|
$ |
5,031,441 |
|
|
$ |
10,277,449 |
|
| Net realized gain (loss) |
|
|
(6,889,699) |
|
|
|
1,148,539 |
|
| Change in net unrealized appreciation (depreciation) |
|
|
(28,354,553) |
|
|
|
(8,366,148) |
|
| Increase (Decrease) in Net Assets From
Operations |
|
|
(30,212,811) |
|
|
|
3,059,840 |
|
|
|
|
| Distributions to Shareholders From (Note 1): |
|
|
|
|
|
|
|
|
| Total distributable earnings |
|
|
(4,698,778) |
|
|
|
(9,396,192) |
|
| Decrease in Net Assets From Distributions
to Shareholders |
|
|
(4,698,778) |
|
|
|
(9,396,192) |
|
|
|
|
| Fund Share Transactions: |
|
|
|
|
|
|
|
|
| Reinvestment of distributions (0 and 2,263 shares issued, respectively) |
|
|
— |
|
|
|
32,850 |
|
| Increase in Net Assets From Fund Share
Transactions |
|
|
— |
|
|
|
32,850 |
|
| Decrease in Net
Assets |
|
|
(34,911,589) |
|
|
|
(6,303,502) |
|
|
|
|
| Net Assets: |
|
|
|
|
|
|
|
|
| Beginning of period |
|
|
169,882,814 |
|
|
|
176,186,316 |
|
| End of period |
|
$ |
134,971,225 |
|
|
$ |
169,882,814 |
|
See Notes to Financial
Statements.
|
|
|
|
|
|
22 |
|
|
|
Western Asset Premier Bond Fund 2022 Semi-Annual Report |
Statement of cash flows (unaudited)
For the Six Months Ended June 30, 2022
|
|
|
|
|
|
|
| Increase (Decrease) in Cash: |
|
|
|
|
| Cash Flows from Operating Activities: |
|
|
|
|
| Net decrease in net assets resulting from operations |
|
$ |
(30,212,811) |
|
| Adjustments to reconcile net decrease in net assets resulting from operations to net cash
provided (used) by operating activities: Purchases of portfolio securities |
|
|
(95,727,474) |
|
| Sales of portfolio securities |
|
|
99,869,363 |
|
| Net purchases, sales and maturities of short-term investments |
|
|
(1,648,413) |
|
| Net amortization of premium (accretion of discount) |
|
|
(771,505) |
|
| Increase in receivable for securities sold |
|
|
(1,370,784) |
|
| Increase in interest receivable |
|
|
(120,558) |
|
| Decrease in prepaid expenses |
|
|
398 |
|
| Decrease in other receivables |
|
|
16,898 |
|
| Increase in dividends receivable from affiliated investments |
|
|
(2,200) |
|
| Decrease in payable for securities purchased |
|
|
(1,407,868) |
|
| Decrease in investment management fee payable |
|
|
(12,827) |
|
| Decrease in Trustees’ fees payable |
|
|
(149) |
|
| Decrease in administration fee payable |
|
|
(3,758) |
|
| Increase in interest expense payable |
|
|
16,996 |
|
| Increase in accrued expenses |
|
|
13,670 |
|
| Net realized loss on investments |
|
|
6,986,463 |
|
| Change in net unrealized appreciation (depreciation) of investments and forward foreign
currency contracts |
|
|
28,381,923 |
|
| Net Cash Provided in Operating
Activities* |
|
|
4,007,364 |
|
|
|
| Cash Flows from Financing Activities: |
|
|
|
|
| Distributions paid on common shares (net of distributions payable) |
|
|
(3,915,648) |
|
| Decrease in payable for open reverse repurchase agreements |
|
|
(256,523) |
|
| Net Cash Used by Financing
Activities |
|
|
(4,172,171) |
|
| Net Decrease in Cash and Restricted Cash |
|
|
(164,807) |
|
| Cash and restricted cash at beginning of period |
|
|
618,865 |
|
| Cash and restricted cash at end of period |
|
$ |
454,058 |
|
| * |
Included in operating expenses is $386,103 paid for interest and commitment fees on borrowings. |
| |
The following table provides a reconciliation of cash (including foreign currency) and restricted cash reported within the
Statement of Assets and Liabilities that sums to the total of such amounts shown on the Statement of Cash Flows. |
|
|
|
|
|
| |
|
June 30, 2022 |
|
| Cash |
|
$ |
346,058 |
|
| Restricted cash |
|
|
108,000 |
|
| Total cash and restricted cash shown in the Statement of Cash Flows |
|
$ |
454,058 |
|
Restricted cash consists of cash that has been segregated to cover the Fund’s collateral or margin obligations
for reverse repurchase agreements. It is separately reported on the Statement of Assets and Liabilities as Deposits with brokers.
See Notes to Financial Statements.
|
|
|
|
|
| Western Asset Premier Bond Fund 2022 Semi-Annual Report |
|
|
|
23 |
Financial highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| For a common share outstanding throughout each year ended
December 31, unless otherwise noted: |
|
| |
|
20221,2 |
|
|
20211 |
|
|
20201 |
|
|
20191 |
|
|
20181 |
|
|
20171 |
|
|
|
|
|
|
|
|
| Net asset value, beginning of period |
|
|
$14.32 |
|
|
|
$14.85 |
|
|
|
$14.66 |
|
|
|
$13.00 |
|
|
|
$14.51 |
|
|
|
$13.88 |
|
|
|
|
|
|
|
|
| Income (loss) from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income |
|
|
0.42 |
|
|
|
0.87 |
|
|
|
0.87 |
|
|
|
0.82 |
|
|
|
0.75 |
|
|
|
0.81 |
|
| Net realized and unrealized gain (loss) |
|
|
(2.96) |
|
|
|
(0.61) |
|
|
|
0.10 |
|
|
|
1.63 |
|
|
|
(1.47) |
|
|
|
0.69 |
|
| Total income (loss) from
operations |
|
|
(2.54) |
|
|
|
0.26 |
|
|
|
0.97 |
|
|
|
2.45 |
|
|
|
(0.72) |
|
|
|
1.50 |
|
|
|
|
|
|
|
|
| Less distributions from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income |
|
|
(0.40) |
3 |
|
|
(0.79) |
|
|
|
(0.79) |
|
|
|
(0.79) |
|
|
|
(0.79) |
|
|
|
(0.87) |
|
| Total
distributions |
|
|
(0.40) |
|
|
|
(0.79) |
|
|
|
(0.79) |
|
|
|
(0.79) |
|
|
|
(0.79) |
|
|
|
(0.87) |
|
| Anti-dilutive impact of repurchase plan |
|
|
— |
|
|
|
— |
|
|
|
0.01 |
4 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
| Net asset value, end of period |
|
|
$11.38 |
|
|
|
$14.32 |
|
|
|
$14.85 |
|
|
|
$14.66 |
|
|
|
$13.00 |
|
|
|
$14.51 |
|
|
|
|
|
|
|
|
| Market price, end of period |
|
|
$10.58 |
|
|
|
$14.33 |
|
|
|
$14.17 |
|
|
|
$14.65 |
|
|
|
$12.09 |
|
|
|
$13.81 |
|
| Total return, based on NAV5,6 |
|
|
(18.08) |
% |
|
|
1.80 |
% |
|
|
7.28 |
% |
|
|
19.22 |
% |
|
|
(5.13) |
% |
|
|
11.03 |
% |
| Total return, based on Market Price7 |
|
|
(23.65) |
% |
|
|
6.87 |
% |
|
|
2.64 |
% |
|
|
28.35 |
% |
|
|
(6.85) |
% |
|
|
13.50 |
% |
|
|
|
|
|
|
|
| Net assets, end of period (millions) |
|
|
$135 |
|
|
|
$170 |
|
|
|
$176 |
|
|
|
$175 |
|
|
|
$155 |
|
|
|
$173 |
|
|
|
|
|
|
|
|
| Ratios to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross expenses |
|
|
1.49 |
%8 |
|
|
1.22 |
% |
|
|
1.50 |
% |
|
|
2.14 |
% |
|
|
1.93 |
% |
|
|
1.58 |
% |
| Net expenses9 |
|
|
1.49 |
8,10 |
|
|
1.22 |
10 |
|
|
1.50 |
|
|
|
2.14 |
|
|
|
1.93 |
|
|
|
1.58 |
|
| Net investment income |
|
|
6.66 |
8 |
|
|
5.93 |
|
|
|
6.24 |
|
|
|
5.78 |
|
|
|
5.49 |
|
|
|
5.66 |
|
|
|
|
|
|
|
|
| Portfolio turnover rate |
|
|
44 |
% |
|
|
32 |
% |
|
|
55 |
% |
|
|
47 |
% |
|
|
106 |
% |
|
|
70 |
% |
|
|
|
|
|
|
|
| Supplemental data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loan Outstanding, End of Period (000s) |
|
|
$57,500 |
|
|
|
$57,500 |
|
|
|
$57,500 |
|
|
|
$57,000 |
|
|
|
$57,000 |
|
|
|
$58,000 |
|
| Asset Coverage Ratio for Loan
Outstanding11 |
|
|
335 |
% |
|
|
395 |
% |
|
|
406 |
% |
|
|
406 |
% |
|
|
372 |
% |
|
|
398 |
% |
| Asset Coverage, per $1,000 Principal Amount of Loan Outstanding11 |
|
|
$3,347 |
|
|
|
$3,954 |
|
|
|
$4,064 |
|
|
|
$4,063 |
|
|
|
$3,715 |
|
|
|
$3,979 |
|
| Weighted Average Loan (000s) |
|
|
$57,500 |
|
|
|
$57,500 |
|
|
|
$57,448 |
|
|
|
$57,000 |
|
|
|
$56,803 |
|
|
|
$58,000 |
|
| Weighted Average Interest Rate on Loan |
|
|
1.16 |
% |
|
|
0.80 |
% |
|
|
1.48 |
% |
|
|
3.09 |
% |
|
|
2.72 |
% |
|
|
1.79 |
% |
See Notes to Financial
Statements.
|
|
|
|
|
|
24 |
|
|
|
Western Asset Premier Bond Fund 2022 Semi-Annual Report |
Financial highlights (cont’d)
| 1 |
Per share amounts have been calculated using the average shares method. |
| 2 |
For the six months ended June 30, 2022 (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 |
The repurchase plan was completed at an average repurchase price of $10.38 for 44,671 shares and $462,743 for the year
ended December 31, 2020. |
| 5 |
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.
|
| 6 |
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. |
| 7 |
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. |
| 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. |
| 10 |
Reflects fee waivers and/or expense reimbursements. |
| 11 |
Represents value of net assets plus the loan outstanding at the end of the period divided by the loan outstanding at the
end of the period. |
See Notes to
Financial Statements.
|
|
|
|
|
| Western Asset Premier Bond Fund 2022 Semi-Annual Report |
|
|
|
25 |
Notes to financial statements (unaudited)
1. Organization and significant accounting policies
Western Asset Premier Bond Fund (the “Fund”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified closed-end management investment company. The Fund commenced investment operations on March 28, 2002. The Fund’s investment objective is to provide current income and capital appreciation by investing
primarily in a diversified portfolio of investment grade bonds.
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. 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 Trustees.
The Board of Trustees is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Global Fund Valuation
Committee (the “Valuation Committee”). The Valuation Committee, pursuant to the policies adopted by the Board of Trustees, is responsible for making fair value determinations, evaluating the
|
|
|
|
|
|
26 |
|
|
|
Western Asset Premier Bond Fund 2022 Semi-Annual Report |
effectiveness of the Fund’s pricing policies,
and reporting to the Board of Trustees. When determining the reliability of third party pricing information for investments owned by the Fund, the Valuation Committee, among other things, conducts due diligence reviews of pricing vendors, monitors
the daily change in prices and reviews transactions among market participants.
The Valuation Committee will consider pricing methodologies it deems relevant and
appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a
multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of
possible factors include, but are not limited to, the type of security; the issuer’s financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase;
analysts’ research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of
public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.
For each portfolio
security that has been fair valued pursuant to the policies adopted by the Board of Trustees, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such back
testing monthly and fair valuation occurrences are reported to the Board of Trustees quarterly.
The Fund uses valuation techniques to measure fair value that are
consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or
comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.
|
|
|
|
|
| Western Asset Premier Bond Fund 2022 Semi-Annual Report |
|
|
|
27 |
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 |
|
|
— |
|
|
$ |
159,806,161 |
|
|
|
— |
|
|
$ |
159,806,161 |
|
| Sovereign Bonds |
|
|
— |
|
|
|
13,710,755 |
|
|
|
— |
|
|
|
13,710,755 |
|
| U.S. Government & Agency Obligations |
|
|
— |
|
|
|
12,627,809 |
|
|
|
— |
|
|
|
12,627,809 |
|
| Senior Loans |
|
|
— |
|
|
|
6,835,530 |
|
|
|
— |
|
|
|
6,835,530 |
|
| Asset-Backed Securities |
|
|
— |
|
|
|
3,032,670 |
|
|
|
— |
|
|
|
3,032,670 |
|
| Convertible Bonds & Notes |
|
|
— |
|
|
|
1,654,060 |
|
|
|
— |
|
|
|
1,654,060 |
|
| Collateralized Mortgage Obligations |
|
|
— |
|
|
|
1,298,415 |
|
|
|
— |
|
|
|
1,298,415 |
|
| Warrants |
|
|
— |
|
|
|
1,455 |
|
|
|
— |
|
|
|
1,455 |
|
| Preferred Stocks |
|
|
— |
|
|
|
509 |
|
|
|
— |
|
|
|
509 |
|
| Total Long-Term Investments |
|
|
— |
|
|
|
198,967,364 |
|
|
|
— |
|
|
|
198,967,364 |
|
| Short-Term Investments† |
|
$ |
2,588,495 |
|
|
|
— |
|
|
|
— |
|
|
|
2,588,495 |
|
| Total Investments |
|
$ |
2,588,495 |
|
|
$ |
198,967,364 |
|
|
|
— |
|
|
$ |
201,555,859 |
|
| Other Financial Instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Forward Foreign Currency Contracts†† |
|
|
— |
|
|
$ |
171,375 |
|
|
|
— |
|
|
$ |
171,375 |
|
| Total |
|
$ |
2,588,495 |
|
|
$ |
199,138,739 |
|
|
|
— |
|
|
$ |
201,727,234 |
|
|
|
|
|
|
|
28 |
|
|
|
Western Asset Premier Bond Fund 2022 Semi-Annual Report |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES |
|
| Description |
|
Quoted Prices
(Level 1) |
|
|
Other Significant
Observable Inputs
(Level 2) |
|
|
Significant
Unobservable
Inputs
(Level 3) |
|
|
Total |
|
| Other Financial Instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Forward Foreign Currency Contracts†† |
|
|
— |
|
|
$ |
1,005 |
|
|
|
— |
|
|
$ |
1,005 |
|
| † |
See Schedule of Investments for additional detailed categorizations. |
| †† |
Reflects the unrealized appreciation (depreciation) of the instruments. |
(b) Forward foreign currency contracts. The Fund enters into a forward
foreign currency contract to hedge exposure of bond positions or in an attempt to increase the Fund’s return. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price with delivery and
settlement at a future date. The contract is marked-to-market daily and the change in value is recorded by the Fund as an unrealized gain or loss. When a forward foreign
currency contract is closed, through either delivery or offset by entering into another forward foreign currency contract, the Fund recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was
opened and the value of the contract at the time it is closed.
Forward foreign currency contracts involve elements of market risk in excess of the amounts
reflected on the Statement of Assets and Liabilities. The Fund bears the risk of an unfavorable change in the foreign exchange rate underlying the forward foreign currency contract. Risks may also arise upon entering into these contracts from the
potential inability of the counterparties to meet the terms of their contracts.
(c) Loan
participations. The Fund may invest in loans arranged through private negotiation between one or more financial institutions. The Fund’s investment in any such loan may be in the form of a
participation in or an assignment of the loan. In connection with purchasing participations, the Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement related to the loan, or any rights of off-set against the borrower and the Fund may not benefit directly from any collateral supporting the loan in which it has purchased the participation.
The Fund assumes the credit risk of the borrower, the lender that is selling the participation and any other persons interpositioned between the Fund and the borrower.
In the event of the insolvency of the lender selling the participation, the Fund may be treated as a general creditor of the lender and may not benefit from any off-set between the lender and the borrower.
|
|
|
|
|
| Western Asset Premier Bond Fund 2022 Semi-Annual Report |
|
|
|
29 |
Notes to financial statements
(unaudited) (cont’d)
(d) Stripped securities. The Fund may invest in ‘‘Stripped Securities,’’ a term used collectively for components, or strips, of fixed income securities. Stripped Securities can be principal only securities (“PO”),
which are debt obligations that have been stripped of
unmatured interest coupons, or interest only securities (“IO”), which are unmatured interest
coupons that have been stripped from debt obligations. The market value of Stripped Securities will fluctuate in response to changes in economic conditions, rates of prepayment, interest rates and the market’s perception of the securities.
However, fluctuations in response to interest rates may be greater in Stripped Securities than for debt obligations of comparable maturities that pay interest currently. The amount of fluctuation may increase with a longer period of maturity.
The yield to maturity on IO’s is sensitive to the rate of principal repayments (including prepayments) on the related underlying debt obligation and principal
payments may have a material effect on yield to maturity. If the underlying debt obligation experiences greater than anticipated prepayments of principal, the Fund may not fully recoup its initial investment in IO’s.
(e) Reverse repurchase agreements. The Fund may enter into reverse
repurchase agreements. Under the terms of a typical reverse repurchase agreement, a fund sells a security subject to an obligation to repurchase the security from the buyer at an agreed upon time and price. In the event the buyer of securities under
a reverse repurchase agreement files for bankruptcy or becomes insolvent, the Fund’s use of the proceeds of the agreement may be restricted pending a determination by the counterparty, or its trustee or receiver, whether to enforce the
Fund’s obligation to repurchase the securities. In entering into reverse repurchase agreements, the Fund will pledge cash, U.S. government securities or other liquid debt obligations at least equal in value to its obligations with respect to
reverse repurchase agreements or will take other actions permitted by law to cover its obligations. If the market value of the collateral declines during the period, the Fund may be required to post additional collateral to cover its obligation.
Cash collateral that has been pledged to cover obligations of the Fund under reverse repurchase agreements, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral are noted in the Schedule of
Investments. Interest payments made on reverse repurchase agreements are recognized as a component of “Interest expense” on the Statement of Operations. In periods of increased demand for the security, the Fund may receive a fee for use of
the security by the counterparty, which may result in interest income to the Fund.
(f) Inflation-indexed
bonds. Inflation-indexed bonds are fixed income securities whose principal value or interest rate is periodically adjusted according to the rate of inflation. As the index measuring inflation changes, the
principal value or interest rate of inflation-indexed bonds will be adjusted accordingly. Inflation adjustments to the principal amount of inflation-indexed bonds are reflected as an increase or decrease to investment income on the Statement of
Operations. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury inflation-indexed bonds. For bonds that do not provide a similar guarantee, the adjusted principal value of the
bond repaid at maturity may be less than the original principal.
|
|
|
|
|
|
30 |
|
|
|
Western Asset Premier Bond Fund 2022 Semi-Annual Report |
(g) Cash flow information. The Fund invests in securities and distributes
dividends from net investment income and net realized gains, which are paid in cash and may be reinvested at the discretion of shareholders. These activities are reported in the Statements of Changes in Net Assets and additional information on cash
receipts and cash payments is presented in the Statement of Cash Flows.
(h) Foreign currency
translation. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the date of valuation.
Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the respective dates of such transactions.
The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates on investments from the fluctuations arising
from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.
Net realized
foreign exchange gains or losses arise from sales of foreign currencies, including gains and losses on forward foreign currency contracts, currency gains or losses realized between the trade and settlement dates on securities transactions, and the
difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise
from changes in the values of assets and liabilities, other than investments in securities, on the date of valuation, resulting from changes in exchange rates.
Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a
result of, among other factors, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.
(i) 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.
|
|
|
|
|
| Western Asset Premier Bond Fund 2022 Semi-Annual Report |
|
|
|
31 |
Notes to financial statements
(unaudited) (cont’d)
Investments in securities that are collateralized by real estate mortgages are subject to certain
credit and liquidity risks. When market conditions result in an increase in default rates of the underlying mortgages and the foreclosure values of underlying real estate properties are materially below the outstanding amount of these underlying
mortgages, collection of the full amount of accrued interest and principal on these investments may be doubtful. Such market conditions may significantly impair the value and liquidity of these investments and may result in a lack of correlation
between their credit ratings and values.
(j) 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.
(k) 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.
|
|
|
|
|
|
32 |
|
|
|
Western Asset Premier Bond Fund 2022 Semi-Annual Report |
The Fund has entered into master agreements, such as
an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement, with certain of its derivative counterparties that govern over-the-counter (“OTC”) derivatives and provide for general obligations, representations, agreements, collateral posting terms, netting provisions in the event of default or termination and credit
related contingent features. The credit related contingent features include, but are not limited to, a percentage decrease in the Fund’s net assets or net asset value per share over a specified period of time. If these credit related contingent
features were triggered, the derivatives counterparty could terminate the positions and demand payment or require additional collateral.
Under an ISDA Master
Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. However, absent an
event of default by the counterparty or a termination of the agreement, the terms of the ISDA Master Agreements do not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities
across transactions between the Fund and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction.
Collateral requirements
differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearinghouse for exchange traded derivatives while collateral terms are contract specific for OTC traded derivatives. Cash collateral that has been
pledged to cover obligations of the Fund under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of
Investments.
As of June 30, 2022, the Fund held forward foreign currency contracts with credit related contingent features which had a liability position of
$1,005. If a contingent feature in the master agreements would have been triggered, the Fund would have been required to pay this amount to its derivatives counterparties.
(l) 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.
|
|
|
|
|
| Western Asset Premier Bond Fund 2022 Semi-Annual Report |
|
|
|
33 |
Notes to financial statements
(unaudited) (cont’d)
(m) 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.
(n) 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.
(o) 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.
However, due to the timing of when distributions are
made by the Fund, the Fund may be subject to an excise tax of 4% of the amount by which 98% of the Fund’s annual taxable income and 98.2% of net realized gains exceed the distributions from such taxable income and realized gains for the
calendar year. During the period, the Fund paid $20,544 of federal income taxes attributable to calendar year 2021, of which $6,544 was accrued during the period.
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, 2021, 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. As of June 30, 2022, there were $1,443 of capital gains tax liabilities accrued on unrealized gains.
(p) Reclassification. GAAP requires that certain components of net assets be reclassified to reflect permanent differences between financial and tax reporting.
These reclassifications have no effect on net assets or net asset value per share.
|
|
|
|
|
|
34 |
|
|
|
Western Asset Premier Bond Fund 2022 Semi-Annual Report |
2. Investment management
agreement and other transactions with affiliates
The Fund has a management agreement with Western Asset Management Company, LLC (“Western
Asset”). Pursuant to the terms of the management agreement, the Fund pays Western Asset an annual fee, payable monthly, in an amount equal to 0.55% of the average weekly value of the Fund’s total managed assets. “Total managed
assets” means the total assets of the Fund (including any assets attributable to leverage) minus accrued liabilities (other than liabilities representing leverage). Pursuant to a Portfolio Management Agreement between Western Asset and Western
Asset Management Company Limited (“Western London”), Western Asset pays monthly a portion of the fees it receives from the Fund to Western London at an annual rate of 0.425% of the average weekly value of the Fund’s total managed
assets that Western London manages. Western Asset Management Company Pte. Ltd. (“Western Asset Singapore”) and Western Asset Management Company Ltd (“Western Asset Japan”) are additional investment advisers to the Fund under
portfolio management agreements between Western Asset and Western Asset Singapore, and Western Asset and Western Asset Japan.
Western Asset Singapore and Western
Asset Japan provide certain advisory services to the Fund relating to currency transactions and investments in non-U.S. dollar-denominated securities and related foreign currency instruments in Asia (excluding
Japan) and Japan, respectively.
Under the terms of the administration services agreement between Western Asset and Legg Mason Partners Fund Advisor, LLC
(“LMPFA”), Western Asset pays LMPFA a monthly fee at an annual rate of 0.125% of the Fund’s average weekly total managed assets, subject to a monthly minimum fee of $12,500.
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 (the “affiliated money market fund waiver”).
During the six months ended June 30, 2022, fees waived
and/or expenses reimbursed amounted to $838, all of which included an affiliated money market fund waiver.
LMPFA, Western Asset, Western London, Western Asset
Singapore and Western Asset Japan are indirect, wholly-owned subsidiaries of Franklin Resources, Inc. (“Franklin Resources”).
During periods in which the
Fund utilizes financial leverage, the fees paid to the investment adviser will be higher than if the Fund did not utilize leverage because the fees are calculated as a percentage of the Fund’s assets, including those investments purchased with
leverage.
All officers and one Trustee of the Fund are employees of Franklin Resources or its affiliates and do not receive compensation from the Fund.
|
|
|
|
|
| Western Asset Premier Bond Fund 2022 Semi-Annual Report |
|
|
|
35 |
Notes to financial statements
(unaudited) (cont’d)
3. Investments
During the six months ended June 30, 2022, the aggregate cost of purchases and proceeds from sales of investments (excluding short-term investments) and U.S.
Government & Agency Obligations were as follows:
|
|
|
|
|
|
|
|
|
| |
|
Investments |
|
|
U.S. Government &
Agency Obligations |
|
| Purchases |
|
$ |
89,283,519 |
|
|
$ |
6,443,955 |
|
| Sales |
|
|
93,500,122 |
|
|
|
6,369,241 |
|
At June 30, 2022, the aggregate cost of investments and the aggregate gross unrealized appreciation and depreciation of investments
for federal income tax purposes were substantially as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Cost |
|
|
Gross
Unrealized Appreciation |
|
|
Gross
Unrealized Depreciation |
|
|
Net
Unrealized Appreciation (Depreciation) |
|
| Securities |
|
$ |
208,610,562 |
|
|
$ |
4,447,942 |
|
|
$ |
(11,502,645) |
|
|
$ |
(7,054,703) |
|
| Forward foreign currency contracts |
|
|
— |
|
|
|
171,375 |
|
|
|
(1,005) |
|
|
|
170,370 |
|
Transactions in reverse repurchase agreements for the Fund during the six months ended June 30, 2022 were as follows:
|
|
|
|
|
| Average Daily
Balance* |
|
Weighted Average
Interest Rate* |
|
Maximum Amount
Outstanding |
| $13,006,547 |
|
0.568% |
|
$13,175,186 |
| * |
Averages based on the number of days that the Fund had reverse repurchase agreements outstanding. |
Interest rates on reverse repurchase agreements ranged from 0.140% to 1.900% during the six months ended June 30, 2022. Interest expense incurred on reverse
repurchase agreements totaled $37,152.
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, 2022.
|
|
|
|
|
|
|
|
|
| ASSET DERIVATIVES1 |
|
| |
|
|
|
|
Foreign
Exchange Risk |
|
| Forward foreign currency contracts |
|
|
|
|
|
$ |
171,375 |
|
|
| LIABILITY DERIVATIVES1 |
|
| |
|
|
|
|
Foreign
Exchange Risk |
|
| Forward foreign currency contracts |
|
|
|
|
|
$ |
1,005 |
|
| 1 |
Generally, the balance sheet location for asset derivatives is receivables/net unrealized appreciation and for liability
derivatives is payables/net unrealized depreciation. |
|
|
|
|
|
|
36 |
|
|
|
Western Asset Premier Bond Fund 2022 Semi-Annual Report |
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, 2022. 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 |
|
| |
|
Foreign
Exchange Risk |
|
| Forward foreign currency contracts |
|
$ |
120,399 |
|
| CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED |
|
| |
|
Foreign
Exchange Risk |
|
| Forward foreign currency contracts |
|
$ |
153,449 |
|
During the six months ended June 30, 2022, the volume of
derivative activity for the Fund was as follows:
|
|
|
|
|
| |
|
Average Market
Value |
|
| Forward foreign currency contracts (to buy) |
|
$ |
25,407 |
|
| Forward foreign currency contracts (to sell) |
|
|
2,770,310 |
|
The following table presents the Fund’s OTC derivative assets and liabilities by counterparty net of amounts available for offset
under an ISDA Master Agreement and net of the related collateral pledged (received) by the Fund as of June 30, 2022.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Counterparty |
|
Gross Assets
Subject to Master Agreements1 |
|
|
Gross
Liabilities Subject to Master
Agreements1 |
|
|
Net Assets
(Liabilities) Subject to Master
Agreements |
|
|
Collateral
Pledged (Received) |
|
|
Net
Amount2 |
|
| Goldman Sachs Group Inc. |
|
$ |
171,375 |
|
|
$ |
(1,005) |
|
|
$ |
170,370 |
|
|
|
— |
|
|
$ |
170,370 |
|
| 1 |
Absent an event of default or early termination, derivative assets and liabilities are presented gross and not offset in
the Statement of Assets and Liabilities. |
| 2 |
Represents the net amount receivable (payable) from (to) the counterparty in the event of default. |
|
|
|
|
|
| Western Asset Premier Bond Fund 2022 Semi-Annual Report |
|
|
|
37 |
Notes to financial statements
(unaudited) (cont’d)
5. Loan
The Fund has a revolving credit agreement with National Australia Bank Limited (“Credit Agreement”) that allows the Fund to borrow up to an aggregate amount of
$72,000,000. The Credit Agreement automatically renews daily for a six month term unless notice to the
contrary is given to the Fund. The Fund pays a commitment fee
at an annual rate of 0.20%, on the unutilized portion of the loan. The interest on the loan is calculated at a variable rate based on the prime rate, federal funds rate or LIBOR, plus any applicable margin. Securities held by the Fund are subject to
a lien granted to National Australia Bank Limited, to the extent of the borrowing outstanding and any additional expenses. The Fund’s Credit Agreement contains customary covenants that, among other things, may limit the Fund’s ability to
pay distributions in certain circumstances, incur additional debt, change its fundamental investment policies and engage in certain transactions, including mergers and consolidations, and require asset coverage ratios in addition to those required
by the 1940 Act. In addition, the Credit Agreement may be subject to early termination under certain conditions and may contain other provisions that could limit the Fund’s ability to utilize borrowing under the agreement. For the six months
ended June 30, 2022, the Fund incurred a commitment fee in the amount of $14,581. Interest expense related to this loan for the six months ended June 30, 2022 was $336,278. For the six months ended June 30, 2022, the Fund had an
average daily loan balance outstanding of $57,500,000 and the weighted average interest rate was 1.16%. At June 30, 2022, the Fund had $57,500,000 of borrowings outstanding.
6. Distributions subsequent to June 30, 2022
The following distributions have been declared by the Fund’s Board of Trustees and are payable subsequent to the period end of this report:
|
|
|
|
|
|
|
|
|
| Record Date |
|
Payable Date |
|
|
Amount |
|
| 6/23/2022 |
|
|
7/1/2022 |
|
|
$ |
0.0660 |
|
| 7/22/2022 |
|
|
8/1/2022 |
|
|
$ |
0.0660 |
|
| 8/24/2022 |
|
|
9/1/2022 |
|
|
$ |
0.0660 |
|
| 9/23/2022 |
|
|
10/3/2022 |
|
|
$ |
0.0660 |
|
7. Share repurchase program
On November 20, 2015, the Fund announced that the Fund’s Board of Trustees (the “Board”) had authorized the Fund to repurchase in the open market up
to approximately 10% of the Fund’s outstanding common shares when the Fund’s shares are trading at a discount to net asset value. The Board has directed management of the Fund to repurchase its common shares 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, 2022 and the year ended
December 31, 2021, the Fund did not repurchase any shares.
Since the commencement of the share repurchase program through June 30, 2022, the Fund
repurchased 44,671 shares or 0.38% of its common shares outstanding for a total amount of $462,743.
|
|
|
|
|
|
38 |
|
|
|
Western Asset Premier Bond Fund 2022 Semi-Annual Report |
8. Transactions with
affiliated company
As defined by the 1940 Act, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a
company which is under common ownership or control with the Fund. The following company was considered an affiliated company for all or some portion of the six months ended June 30, 2022. The following transactions were effected in such company
for the six months ended June 30, 2022.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Affiliate
Value
at
December 31,
2021 |
|
|
Purchased |
|
|
Sold |
|
| |
|
Cost |
|
|
Shares |
|
|
Cost |
|
|
Shares |
|
| Western Asset Premier Institutional Government Reserves, Premium Shares |
|
$ |
912,279 |
|
|
$ |
24,724,360 |
|
|
|
24,724,360 |
|
|
$ |
23,048,144 |
|
|
|
23,048,144 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (cont’d) |
|
Realized
Gain (Loss) |
|
|
Dividend
Income |
|
|
Net Increase
(Decrease) in
Unrealized
Appreciation
(Depreciation) |
|
|
Affiliate
Value at June 30, 2022 |
|
| Western Asset Premier Institutional Government Reserves, Premium Shares |
|
|
— |
|
|
$ |
4,292 |
|
|
|
— |
|
|
$ |
2,588,495 |
|