Western Asset High Income Fund II Inc. (XHGIX)

Overview

Western Asset High Income Fund II Inc. operates as a closed-end mutual fund, primarily focusing on the high-yield fixed income investment sector. Managed by Franklin Templeton Investments, it aims to maximize current income for its shareholders, targeting at least 80% investment in high-yield debt securities. This fund is distinctively known for its strategic endeavors to not only provide significant current income but also to achieve capital appreciation as a feasible secondary objective, as long as it aligns with its main income-centric approach. Its diversified portfolio includes both U.S. and international corporate debt, with a portion allocated to emerging markets, thereby offering investors a broad exposure across various sectors and geographic locations. The fund stands out for its substantial monthly dividend distributions, boasting a high dividend yield of around 13.5% as of July 2025. Its strategy involves a concentrated portfolio in its top holdings, accompanied by a moderate rate of portfolio turnover, thus positioning itself as a pivotal option for investors seeking lucrative income opportunities within the high-yield corporate bond market.

Products and Services

• High-Yield Debt Securities

Western Asset High Income Fund II Inc. dedicates at least 80% of its net assets to investing in high-yield debt securities. These investments are chosen to maximize current income for investors, focusing on delivering substantial returns. This service caters to investors inclined towards accepting higher risk to gain higher income through their investment portfolios.

• Capital Appreciation

Though the fund prioritizes current income maximization, it also seeks capital appreciation as a secondary goal, provided it aligns with its primary income objectives. This balance enables investors to potentially enhance their portfolio’s value over time, alongside receiving regular income, thereby ensuring a dual-benefit investment strategy.

• Diversified Global Portfolio

With a diversified mix of U.S. and international corporate debt, including emerging markets, Western Asset High Income Fund II Inc. offers expansive exposure across multiple sectors and geographies. This service is especially beneficial for investors looking to diversify their investment across different markets, thus mitigating risks while possibly tapping into various growing economies worldwide.

• Monthly Dividend Distributions

The fund is renowned for its robust monthly dividend distributions, providing a notably high dividend yield, notably around 13.5% as of July 2025. This feature is particularly attractive for income-focused investors seeking regular, high-yield returns on their investments.