Western Asset Municipal High Income Fund (XMHFX)

Overview

Western Asset Municipal High Income Fund Inc. is a closed-ended fixed income mutual fund that was launched and is managed by Legg Mason Partners Fund Advisor, LLC. The fund benefits from the co-management expertise of Western Asset Management Company. Positioned within the fixed income markets of the United States, the fund focuses primarily on investing in intermediate and long-term municipal debt securities. These securities are issued by various state and local governments, which also includes U.S. territories and possessions, political subdivisions, agencies, and public authorities.

The fund emphasizes the importance of maintaining a high-quality portfolio by investing chiefly in investment-grade debt securities that have been rated within one of the four highest categories by a nationally recognized statistical rating organization. This strategic approach aims to enhance the fund’s reliability and stability. The performance of the fund’s portfolio is benchmarked against the Lehman Brothers Municipal Bond Index, providing a clear performance measurement against industry standards. Initially known as Municipal High Income Fund Inc., Western Asset Municipal High Income Fund Inc. has been established since November 28, 1988, and is domiciled in the United States.

Products and Services

• Closed-End Mutual Fund

  This investment vehicle enables investors to pool their resources to invest in a diversified portfolio of municipal debt securities. The fund operates with a fixed number of shares, which are traded on the stock exchange, allowing liquidity and access for investors.

• Fixed Income Investments

  The fund primarily invests in intermediate and long-term municipal debt securities issued by government entities. These investments are aimed at generating income while maintaining safety and stability, making them an appealing option for conservative investors.

• Portfolio Management

  Managed by experienced professionals at Legg Mason and Western Asset Management Company, the fund employs strategic selection and management of securities to optimize returns while mitigating risks associated with market fluctuations.

• Investment-Grade Focus

  By concentrating on high-quality, investment-grade bonds that are rated by recognized agencies, the fund strives to provide steady income and reduce default risk, aligning with the investment goals of risk-averse clients.

• Performance Benchmarking

  The fund's performance is measured against the Lehman Brothers Municipal Bond Index. This benchmark serves as a standard for evaluating the fund's effectiveness and helps investors assess relative performance in the municipal bond market.