UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
|
Investment Company Act file number |
811-6506 |
| ||||
|
| ||||||
|
Western Asset Intermediate Muni Fund Inc. | ||||||
|
(Exact name of registrant as specified in charter) | ||||||
|
| ||||||
|
620 Eighth Avenue, New York, NY |
|
10018 | ||||
|
(Address of principal executive offices) |
|
(Zip code) | ||||
|
| ||||||
|
Robert I. Frenkel, Esq. | ||||||
|
(Name and address of agent for service) | ||||||
|
| ||||||
|
Registrant’s telephone number, including area code: |
1-888-777-0102 |
| ||||
|
| ||||||
|
Date of fiscal year end: |
November 30 |
| ||||
|
|
|
| ||||
|
Date of reporting period: |
August 31, 2011 |
| ||||
ITEM 1. SCHEDULE OF INVESTMENTS
WESTERN ASSET INTERMEDIATE MUNI FUND INC.
FORM N-Q
AUGUST 31, 2011
WESTERN ASSET INTERMEDIATE MUNI FUND INC.
Schedule of investments (unaudited)
August 31, 2011
|
SECURITY |
|
RATE |
|
MATURITY |
|
FACE |
|
VALUE |
| ||
|
MUNICIPAL BONDS — 95.7% |
|
|
|
|
|
|
|
|
| ||
|
Alaska — 1.1% |
|
|
|
|
|
|
|
|
| ||
|
Anchorage, AK, GO, Refunding, FGIC |
|
6.000% |
|
10/1/14 |
|
$ |
500,000 |
|
$ |
577,850 |
|
|
North Slope Boro, AK, Refunding, NATL |
|
5.000% |
|
6/30/15 |
|
1,250,000 |
|
1,439,813 |
| ||
|
Total Alaska |
|
|
|
|
|
|
|
2,017,663 |
| ||
|
Arkansas — 0.6% |
|
|
|
|
|
|
|
|
| ||
|
Warren County, AR, Solid Waste Disposal Revenue, Potlatch Corp. Project |
|
7.000% |
|
4/1/12 |
|
1,000,000 |
|
1,021,360 |
(a) | ||
|
California — 8.4% |
|
|
|
|
|
|
|
|
| ||
|
California Statewide CDA Revenue: |
|
|
|
|
|
|
|
|
| ||
|
Lodi Memorial Hospital, CMI |
|
5.000% |
|
12/1/22 |
|
2,000,000 |
|
2,110,420 |
| ||
|
Proposition 1A Receivables Program |
|
5.000% |
|
6/15/13 |
|
3,000,000 |
|
3,219,930 |
| ||
|
Los Angeles, CA, COP, Hollywood Presbyterian Medical Center, INDLC |
|
9.625% |
|
7/1/13 |
|
350,000 |
|
390,540 |
(b) | ||
|
M-S-R Energy Authority, CA, Gas Revenue |
|
6.125% |
|
11/1/29 |
|
3,000,000 |
|
3,135,840 |
| ||
|
Modesto, CA, Irrigation District Electric Revenue |
|
5.000% |
|
7/1/24 |
|
4,130,000 |
|
4,532,799 |
| ||
|
Modesto, CA, Irrigation District Electric Revenue |
|
5.000% |
|
7/1/25 |
|
2,000,000 |
|
2,171,140 |
| ||
|
San Francisco, CA, Airport Improvement Corp., Lease Revenue, United Airlines Inc. |
|
8.000% |
|
7/1/13 |
|
115,000 |
|
125,818 |
(b) | ||
|
Total California |
|
|
|
|
|
|
|
15,686,487 |
| ||
|
Colorado — 4.8% |
|
|
|
|
|
|
|
|
| ||
|
Colorado Educational & Cultural Facilities Authority Revenue Charter School: |
|
|
|
|
|
|
|
|
| ||
|
Bromley East Project |
|
7.000% |
|
9/15/20 |
|
1,000,000 |
|
1,001,670 |
(c) | ||
|
Bromley School Project, XLCA |
|
5.125% |
|
9/15/20 |
|
1,155,000 |
|
1,183,424 |
| ||
|
Refunding & Improvement, University Lab School, XLCA |
|
5.250% |
|
6/1/24 |
|
1,350,000 |
|
1,357,398 |
| ||
|
Denver, CO, Health & Hospital Authority |
|
6.250% |
|
12/1/16 |
|
710,000 |
|
720,132 |
(c) | ||
|
E-470 Public Highway Authority Revenue, CO |
|
5.250% |
|
9/1/25 |
|
2,000,000 |
|
1,899,240 |
| ||
|
Public Authority for Colorado Energy, Natural Gas Purchase Revenue |
|
6.125% |
|
11/15/23 |
|
2,000,000 |
|
2,122,580 |
| ||
|
SBC Metropolitan District, CO, GO, ACA |
|
5.000% |
|
12/1/25 |
|
750,000 |
|
722,565 |
| ||
|
Total Colorado |
|
|
|
|
|
|
|
9,007,009 |
| ||
|
Connecticut — 1.6% |
|
|
|
|
|
|
|
|
| ||
|
Connecticut State HEFA Revenue, Bristol Hospital |
|
5.500 |
% |
7/1/21 |
|
2,000,000 |
|
1,922,540 |
| ||
|
Connecticut State Special Obligation Parking Revenue, Bradley International Airport, ACA |
|
6.375 |
% |
7/1/12 |
|
960,000 |
|
965,808 |
(a) | ||
|
Total Connecticut |
|
|
|
|
|
|
|
2,888,348 |
| ||
|
Florida — 5.4% |
|
|
|
|
|
|
|
|
| ||
|
Citizens Property Insurance Corp., FL |
|
5.000% |
|
6/1/16 |
|
5,000,000 |
|
5,431,300 |
| ||
|
Miami-Dade County, FL, School Board, COP |
|
5.000% |
|
2/1/24 |
|
2,000,000 |
|
2,168,300 |
| ||
|
Old Palm Community Development District, FL, Palm Beach Gardens |
|
5.375% |
|
5/1/14 |
|
960,000 |
|
902,218 |
| ||
|
Orange County, FL, Health Facilities Authority Revenue, Hospital Adventist Health Systems |
|
6.250% |
|
11/15/24 |
|
1,500,000 |
|
1,601,025 |
(c) | ||
|
Total Florida |
|
|
|
|
|
|
|
10,102,843 |
| ||
|
Georgia — 6.2% |
|
|
|
|
|
|
|
|
| ||
|
Athens, GA, Housing Authority Student Housing Lease Revenue, University of Georgia East Campus, AMBAC |
|
5.250% |
|
12/1/23 |
|
970,000 |
|
1,028,317 |
(c) | ||
|
Atlanta, GA, Water & Wastewater Revenue |
|
6.000% |
|
11/1/23 |
|
2,000,000 |
|
2,333,340 |
| ||
|
Chatham County, GA, Hospital Authority Revenue, Hospital Memorial Health Medical Center |
|
6.000% |
|
1/1/17 |
|
650,000 |
|
652,821 |
| ||
|
DeKalb Private Hospital Authority Revenue, GA, Anticipation CTFS, Children’s Health Care of Atlanta Inc. |
|
5.000% |
|
11/15/29 |
|
2,000,000 |
|
2,071,920 |
| ||
See Notes to Schedule of Investments.
WESTERN ASSET INTERMEDIATE MUNI FUND INC.
Schedule of investments (unaudited) (cont’d)
August 31, 2011
|
SECURITY |
|
RATE |
|
MATURITY |
|
FACE |
|
VALUE |
| ||
|
Georgia — continued |
|
|
|
|
|
|
|
|
|
|
|
|
DeKalb, Newton & Gwinnett Counties, GA, Joint Development Authority Revenue, GGC Foundation LLC Project |
|
6.000% |
|
7/1/29 |
|
$ |
1,000,000 |
|
$ |
1,086,900 |
|
|
Georgia Municipal Electric Authority: |
|
|
|
|
|
|
|
|
| ||
|
Power Revenue, Refunding, AGM |
|
5.000% |
|
1/1/18 |
|
3,000,000 |
|
3,170,730 |
| ||
|
Power System Revenue |
|
6.500% |
|
1/1/12 |
|
110,000 |
|
112,016 |
| ||
|
Griffin, GA, Combined Public Utilities Revenue, Refunding & Improvement, AMBAC |
|
5.000% |
|
1/1/21 |
|
1,000,000 |
|
1,041,010 |
| ||
|
Total Georgia |
|
|
|
|
|
|
|
11,497,054 |
| ||
|
Illinois — 2.2% |
|
|
|
|
|
|
|
|
| ||
|
Chicago, IL, O’Hare International Airport Revenue, Refunding Bonds, Lien A-2, AGM |
|
5.750% |
|
1/1/19 |
|
1,500,000 |
|
1,584,090 |
(a) | ||
|
Glendale Heights, IL, Hospital Revenue, Refunding Glendale Heights Project |
|
7.100% |
|
12/1/15 |
|
660,000 |
|
707,639 |
(b) | ||
|
Illinois Development Finance Authority, Chicago Charter School Foundation Project A |
|
5.250% |
|
12/1/12 |
|
155,000 |
|
159,688 |
(b) | ||
|
Illinois Finance Authority Revenue, Memorial Health System |
|
5.250% |
|
4/1/29 |
|
1,670,000 |
|
1,649,192 |
| ||
|
Total Illinois |
|
|
|
|
|
|
|
4,100,609 |
| ||
|
Indiana — 2.8% |
|
|
|
|
|
|
|
|
| ||
|
Ball State University, Indiana University Revenue, Student Fee, FGIC |
|
5.750% |
|
7/1/20 |
|
800,000 |
|
814,248 |
(c) | ||
|
Indianapolis, IN, Thermal Energy System, Multi-Mode |
|
5.000% |
|
10/1/23 |
|
4,000,000 |
|
4,367,560 |
(d) | ||
|
Total Indiana |
|
|
|
|
|
|
|
5,181,808 |
| ||
|
Iowa — 0.2% |
|
|
|
|
|
|
|
|
| ||
|
Muscatine, IA, Electric Revenue |
|
9.700% |
|
1/1/13 |
|
320,000 |
|
342,973 |
(b) | ||
|
Kansas — 1.4% |
|
|
|
|
|
|
|
|
| ||
|
Burlington, KS, Environmental Improvement Revenue, Kansas City Power & Light |
|
5.250% |
|
4/1/13 |
|
2,500,000 |
|
2,629,250 |
(e) | ||
|
Louisiana — 0.0% |
|
|
|
|
|
|
|
|
| ||
|
Louisiana Public Facilities Authority Hospital Revenue, Southern Baptist Hospital Inc. Project, Aetna |
|
8.000% |
|
5/15/12 |
|
55,000 |
|
55,817 |
(b) | ||
|
Maryland — 0.2% |
|
|
|
|
|
|
|
|
| ||
|
Maryland State Health & Higher EFA Revenue, Refunding Mercy Medical Center, AGM |
|
6.500% |
|
7/1/13 |
|
380,000 |
|
393,019 |
| ||
|
Massachusetts — 1.9% |
|
|
|
|
|
|
|
|
| ||
|
Lancaster, MA, GO, AMBAC |
|
5.375% |
|
4/15/17 |
|
1,130,000 |
|
1,166,895 |
| ||
|
Massachusetts State DFA Revenue: |
|
|
|
|
|
|
|
|
| ||
|
Curry College, ACA |
|
6.000% |
|
3/1/20 |
|
435,000 |
|
435,387 |
| ||
|
VOA Concord, GNMA-Collateralized |
|
6.700% |
|
10/20/21 |
|
340,000 |
|
359,693 |
(c) | ||
|
Massachusetts State HEFA Revenue: |
|
|
|
|
|
|
|
|
| ||
|
Caritas Christi Obligation |
|
6.500% |
|
7/1/12 |
|
535,000 |
|
561,124 |
(b) | ||
|
Milford-Whitinsville Regional Hospital |
|
6.500% |
|
7/15/23 |
|
1,000,000 |
|
1,062,900 |
(c) | ||
|
Total Massachusetts |
|
|
|
|
|
|
|
3,585,999 |
| ||
|
Michigan — 7.0% |
|
|
|
|
|
|
|
|
| ||
|
Jenison, MI, Public Schools GO, Building and Site, FGIC |
|
5.500% |
|
5/1/20 |
|
1,000,000 |
|
1,034,760 |
(c) | ||
|
Michigan State Housing Development Authority Rental Housing Revenue |
|
5.250% |
|
10/1/24 |
|
2,640,000 |
|
2,707,399 |
| ||
|
Michigan State, Hospital Finance Authority Revenue: |
|
|
|
|
|
|
|
|
| ||
|
Oakwood Obligated Group |
|
5.500% |
|
11/1/18 |
|
1,000,000 |
|
1,045,310 |
| ||
|
Refunding, Hospital Sparrow Obligated |
|
5.000% |
|
11/15/12 |
|
500,000 |
|
521,795 |
| ||
|
Refunding, Hospital Sparrow Obligated |
|
5.000% |
|
11/15/14 |
|
1,190,000 |
|
1,297,112 |
| ||
|
Walled Lake, MI, Consolidated School District, NATL |
|
5.000% |
|
5/1/22 |
|
1,000,000 |
|
1,062,970 |
| ||
See Notes to Schedule of Investments.
WESTERN ASSET INTERMEDIATE MUNI FUND INC.
Schedule of investments (unaudited) (cont’d)
August 31, 2011
|
SECURITY |
|
RATE |
|
MATURITY |
|
FACE |
|
VALUE |
| ||
|
Michigan — continued |
|
|
|
|
|
|
|
|
|
|
|
|
Wayne County, MI, Airport Authority Revenue, Detroit Metropolitan Airport |
|
5.000% |
|
12/1/16 |
|
$ |
5,000,000 |
|
$ |
5,380,500 |
(a) |
|
Total Michigan |
|
|
|
|
|
|
|
13,049,846 |
| ||
|
Missouri — 1.4% |
|
|
|
|
|
|
|
|
| ||
|
Missouri State Environmental Improvement & Energy Resources Authority, KC Power & Light Co. Project |
|
4.900% |
|
7/1/13 |
|
2,500,000 |
|
2,595,100 |
(a)(e) | ||
|
Nevada — 2.2% |
|
|
|
|
|
|
|
|
| ||
|
Humboldt County, NV, PCR, Idaho Power Co. Project |
|
5.150% |
|
12/1/24 |
|
4,000,000 |
|
4,180,320 |
| ||
|
New Hampshire — 3.6% |
|
|
|
|
|
|
|
|
| ||
|
New Hampshire HEFA Revenue: |
|
|
|
|
|
|
|
|
| ||
|
Covenant Health |
|
6.500% |
|
7/1/17 |
|
445,000 |
|
458,439 |
(c) | ||
|
Covenant Health, Unrefunded Balance |
|
6.500% |
|
7/1/17 |
|
75,000 |
|
76,477 |
| ||
|
Healthcare Systems Covenant Health |
|
5.000% |
|
7/1/28 |
|
6,400,000 |
|
6,264,192 |
| ||
|
Total New Hampshire |
|
|
|
|
|
|
|
6,799,108 |
| ||
|
New Jersey — 5.0% |
|
|
|
|
|
|
|
|
| ||
|
New Jersey State EFA Revenue, University of Medicine & Dentistry |
|
7.125% |
|
12/1/23 |
|
2,000,000 |
|
2,353,900 |
| ||
|
New Jersey State Higher Education Assistance Authority, Student Loan Revenue |
|
5.375% |
|
6/1/24 |
|
4,000,000 |
|
4,282,880 |
| ||
|
New Jersey State Higher Education Assistance Authority, Student Loan Revenue, AGC |
|
5.875% |
|
6/1/21 |
|
2,450,000 |
|
2,643,697 |
(a) | ||
|
Ringwood Borough, NJ, Sewer Authority Special Obligation |
|
9.875% |
|
7/1/13 |
|
50,000 |
|
56,104 |
(b) | ||
|
Total New Jersey |
|
|
|
|
|
|
|
9,336,581 |
| ||
|
New Mexico — 1.6% |
|
|
|
|
|
|
|
|
| ||
|
Bernalillo County, NM, Gross Receipts Tax Revenue, AMBAC |
|
5.250% |
|
10/1/18 |
|
1,100,000 |
|
1,344,310 |
| ||
|
New Mexico Finance Authority Revenue, Subordinated Lien, Public Project Revolving Fund, NATL |
|
5.000% |
|
6/15/19 |
|
1,415,000 |
|
1,600,464 |
| ||
|
Total New Mexico |
|
|
|
|
|
|
|
2,944,774 |
| ||
|
New York — 2.9% |
|
|
|
|
|
|
|
|
| ||
|
New York State Dormitory Authority, New York & Presbyterian Hospital, AGM |
|
5.250% |
|
2/15/24 |
|
3,025,000 |
|
3,215,212 |
| ||
|
New York State Thruway Authority Highway & Bridge Trust Fund Revenue, AMBAC |
|
5.000% |
|
4/1/21 |
|
2,000,000 |
|
2,200,420 |
| ||
|
Total New York |
|
|
|
|
|
|
|
5,415,632 |
| ||
|
North Carolina — 1.0% |
|
|
|
|
|
|
|
|
| ||
|
North Carolina Eastern Municipal Power Agency, Power Systems Revenue |
|
5.000% |
|
1/1/26 |
|
1,750,000 |
|
1,854,300 |
| ||
|
Ohio — 5.1% |
|
|
|
|
|
|
|
|
| ||
|
American Municipal Power-Ohio Inc., Electricity Purchase Revenue |
|
5.000% |
|
2/1/13 |
|
2,000,000 |
|
2,089,640 |
| ||
|
Kettering, OH, City School District, School Improvement, AGM |
|
5.000% |
|
12/1/19 |
|
1,000,000 |
|
1,082,400 |
| ||
|
Ohio State Air Quality Development Authority Revenue, FirstEnergy Generation Corp. |
|
5.625% |
|
6/1/18 |
|
1,000,000 |
|
1,125,840 |
| ||
|
Ohio State Water Development Authority, Pollution Control Facilities Revenue, FirstEnergy Nuclear Generation Corp. |
|
3.375 |
% |
7/1/15 |
|
5,000,000 |
|
5,189,800 |
(e) | ||
|
Total Ohio |
|
|
|
|
|
|
|
9,487,680 |
| ||
|
Oklahoma — 1.4% |
|
|
|
|
|
|
|
|
| ||
|
Grand River Dam Authority, OK, Revenue |
|
5.000% |
|
6/1/30 |
|
2,500,000 |
|
2,671,250 |
| ||
See Notes to Schedule of Investments.
WESTERN ASSET INTERMEDIATE MUNI FUND INC.
Schedule of investments (unaudited) (cont’d)
August 31, 2011
|
SECURITY |
|
RATE |
|
MATURITY |
|
FACE |
|
VALUE |
| ||
|
Pennsylvania — 6.7% |
|
|
|
|
|
|
|
|
| ||
|
Conneaut, PA, School District, GO, AMBAC |
|
9.500% |
|
5/1/12 |
|
$ |
15,000 |
|
$ |
15,881 |
(b) |
|
Harrisburg, PA, Parking Authority Parking Revenue, AGM |
|
5.500% |
|
5/15/20 |
|
1,000,000 |
|
1,036,830 |
(c) | ||
|
Montgomery County, PA, IDA Revenue, New Regional Medical Center Project, FHA |
|
5.000% |
|
8/1/24 |
|
2,000,000 |
|
2,160,940 |
| ||
|
Northampton County, PA, IDA Revenue, Mortgage Moravian Hall Square Project, Radian |
|
5.500% |
|
7/1/19 |
|
1,365,000 |
|
1,369,887 |
| ||
|
Pennsylvania State IDA Revenue, Economic Development, AMBAC |
|
5.500% |
|
7/1/21 |
|
1,000,000 |
|
1,034,030 |
| ||
|
Pennsylvania State Public School Building Authority Lease Revenue, Philadelphia School District Project, AGM |
|
5.000% |
|
6/1/27 |
|
2,000,000 |
|
2,146,880 |
| ||
|
Philadelphia, PA, Gas Works Revenue, 7th General Ordinance, AMBAC |
|
5.000% |
|
10/1/17 |
|
1,000,000 |
|
1,091,640 |
| ||
|
Philadelphia, PA, Water & Wastewater, FGIC |
|
5.250% |
|
11/1/14 |
|
2,000,000 |
|
2,099,760 |
| ||
|
Pittsburgh, PA, School District GO, AGM |
|
5.375% |
|
9/1/16 |
|
1,350,000 |
|
1,574,262 |
| ||
|
Total Pennsylvania |
|
|
|
|
|
|
|
12,530,110 |
| ||
|
Puerto Rico — 1.1% |
|
|
|
|
|
|
|
|
| ||
|
Puerto Rico Commonwealth Government Development Bank, NATL |
|
4.750% |
|
12/1/15 |
|
2,000,000 |
|
2,088,800 |
| ||
|
Rhode Island — 0.5% |
|
|
|
|
|
|
|
|
| ||
|
Central Falls, RI, GO, Radian |
|
5.875% |
|
5/15/15 |
|
1,000,000 |
|
854,590 |
| ||
|
South Carolina — 0.6% |
|
|
|
|
|
|
|
|
| ||
|
Greenville County, SC, School District Installment Purchase, Revenue, Refunding, Building Equity |
|
6.000% |
|
12/1/21 |
|
1,100,000 |
|
1,188,693 |
(c) | ||
|
Tennessee — 3.7% |
|
|
|
|
|
|
|
|
| ||
|
Jackson, TN, Water & Sewer Revenue |
|
7.200% |
|
7/1/12 |
|
15,000 |
|
15,863 |
(b) | ||
|
Tennessee Energy Acquisition Corp., Gas Revenue |
|
5.250% |
|
9/1/20 |
|
2,030,000 |
|
2,034,304 |
| ||
|
Tennessee Energy Acquisition Corp., Gas Revenue |
|
5.250% |
|
9/1/23 |
|
4,940,000 |
|
4,888,031 |
| ||
|
Total Tennessee |
|
|
|
|
|
|
|
6,938,198 |
| ||
|
Texas — 9.9% |
|
|
|
|
|
|
|
|
| ||
|
Brazos River, TX, Harbor Navigation District, BASF Corp. Project |
|
6.750% |
|
2/1/12 |
|
400,000 |
|
400,120 |
| ||
|
Dallas-Fort Worth, TX, International Airport Revenue, Refunding, AGM |
|
5.500% |
|
11/1/20 |
|
1,000,000 |
|
1,060,390 |
(a) | ||
|
El Paso County, TX, Housing Finance Corp., La Plaza Apartments, Subordinated |
|
8.000% |
|
7/1/30 |
|
240,000 |
|
219,989 |
| ||
|
El Paso County, TX, Housing Finance Corp., MFH Revenue, American Village Communities |
|
6.250% |
|
12/1/24 |
|
360,000 |
|
361,526 |
| ||
|
El Paso, TX, Water & Sewer Revenue: |
|
|
|
|
|
|
|
|
| ||
|
Refunding & Improvement, AGM |
|
6.000% |
|
3/1/15 |
|
955,000 |
|
982,046 |
(c) | ||
|
Refunding & Improvement, AGM, Unrefunded Balance |
|
6.000% |
|
3/1/15 |
|
45,000 |
|
46,182 |
| ||
|
Fort Worth, TX, Water & Sewer Revenue |
|
5.625% |
|
2/15/17 |
|
2,000,000 |
|
2,048,140 |
(c) | ||
|
Harris County, TX, Industrial Development Corp., Solid Waste Disposal Revenue, Deer Park Refining Project |
|
4.700% |
|
5/1/18 |
|
6,250,000 |
|
6,786,875 |
| ||
|
North Texas Tollway Authority Revenue, NATL |
|
5.125% |
|
1/1/28 |
|
2,000,000 |
|
2,050,260 |
| ||
|
Sabine River Authority, Texas PCR, Southwestern Electric Power Co., NATL |
|
4.950% |
|
3/1/18 |
|
3,000,000 |
|
3,274,080 |
| ||
|
Southwest Higher Education Authority Inc., Southern Methodist University Project, AMBAC |
|
5.500% |
|
10/1/19 |
|
1,000,000 |
|
1,056,370 |
(c) | ||
|
Texas State Department Housing Community Affairs Home Mortgage Revenue, RIBS, GNMA/FNMA/FHLMC-Collateralized |
|
12.948% |
|
7/2/24 |
|
125,000 |
|
140,607 |
(a)(d)(f) | ||
|
Total Texas |
|
|
|
|
|
|
|
18,426,585 |
| ||
See Notes to Schedule of Investments.
WESTERN ASSET INTERMEDIATE MUNI FUND INC.
Schedule of investments (unaudited) (cont’d)
August 31, 2011
|
SECURITY |
|
RATE |
|
MATURITY |
|
FACE |
|
VALUE |
| ||
|
Utah — 0.8% |
|
|
|
|
|
|
|
|
| ||
|
Spanish Fork City, UT, Water Revenue: |
|
|
|
|
|
|
|
|
| ||
|
AGM |
|
5.500% |
|
6/1/16 |
|
$ |
350,000 |
|
$ |
363,584 |
(c) |
|
AGM, Unrefunded Balance |
|
5.500% |
|
6/1/16 |
|
1,135,000 |
|
1,179,049 |
(c) | ||
|
Total Utah |
|
|
|
|
|
|
|
1,542,633 |
| ||
|
Virginia — 2.5% |
|
|
|
|
|
|
|
|
| ||
|
Pittsylvania County, VA, GO |
|
5.500% |
|
2/1/22 |
|
540,000 |
|
632,135 |
| ||
|
Pittsylvania County, VA, GO |
|
5.500% |
|
2/1/23 |
|
1,030,000 |
|
1,197,540 |
| ||
|
Pittsylvania County, VA, GO |
|
5.600% |
|
2/1/24 |
|
2,490,000 |
|
2,877,493 |
| ||
|
Total Virginia |
|
|
|
|
|
|
|
4,707,168 |
| ||
|
Washington — 0.6% |
|
|
|
|
|
|
|
|
| ||
|
Washington State Health Care Facilities Authority Revenue, Multicare Health System |
|
5.750% |
|
8/15/29 |
|
1,000,000 |
|
1,095,240 |
| ||
|
Wisconsin — 1.3% |
|
|
|
|
|
|
|
|
| ||
|
La Crosse, WI, Resource Recovery Revenue, Refunding Bonds, Northern States Power Co. Project |
|
6.000% |
|
11/1/21 |
|
2,000,000 |
|
2,330,960 |
(a) | ||
|
TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS (Cost — $169,847,441) |
|
178,547,807 |
| ||||||||
|
SHORT-TERM INVESTMENTS — 4.3% |
|
|
|
|
|
|
|
|
| ||
|
Maryland — 0.8% |
|
|
|
|
|
|
|
|
| ||
|
Maryland State Stadium Authority, Sports Facilities Lease Revenue, Football Stadium, SPA-Dexia Credit Local |
|
2.100% |
|
3/1/26 |
|
1,600,000 |
|
1,600,000 |
(g)(h) | ||
|
New York — 0.3% |
|
|
|
|
|
|
|
|
| ||
|
New York City, NY, GO, LOC-Bank of America N.A. |
|
0.160% |
|
4/1/36 |
|
100,000 |
|
100,000 |
(g)(h) | ||
|
New York City, NY, Municipal Water Finance Authority, Water & Sewer System Revenue, Second General Resolution, SPA-Fortis Bank S.A. |
|
0.080% |
|
6/15/36 |
|
400,000 |
|
400,000 |
(g)(h) | ||
|
Total New York |
|
|
|
|
|
|
|
500,000 |
| ||
|
North Carolina — 3.2% |
|
|
|
|
|
|
|
|
| ||
|
Charlotte-Mecklenburg Hospital Authority, NC, Health Care System Revenue, AGM, SPA-Dexia Credit Local |
|
0.500% |
|
1/15/43 |
|
6,000,000 |
|
6,000,000 |
(g)(h) | ||
|
TOTAL SHORT-TERM INVESTMENTS (Cost — $8,100,000) |
|
8,100,000 |
| ||||||||
|
TOTAL INVESTMENTS — 100.0% (Cost — $177,947,441#) |
|
$ |
186,647,807 |
| |||||||
(a) Income from this issue is considered a preference item for purposes of calculating the alternative minimum tax (“AMT”).
(b) Bonds are escrowed to maturity by government securities and/or U.S. government agency securities and are considered by the manager to be triple-A rated even if issuer has not applied for new ratings.
(c) Pre-Refunded bonds are escrowed with U.S. government obligations and/or U.S. government agency securities and are considered by the manager to be triple-A rated even if issuer has not applied for new ratings.
(d) Variable rate security. Interest rate disclosed is as of the most recent information available.
(e) Maturity date shown represents the mandatory tender date.
(f) Residual interest bonds—coupon varies inversely with level of short-term tax-exempt interest rates.
(g) Variable rate demand obligations 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.
(h) Maturity date shown is the final maturity date. The security may be sold back to the issuer before final maturity.
# Aggregate cost for federal income tax purposes is substantially the same.
Abbreviations used in this schedule:
|
ACA |
- American Capital Assurance - Insured Bonds |
|
AGC |
- Assured Guaranty Corporation - Insured Bonds |
|
AGM |
- Assured Guaranty Municipal Corporation - Insured Bonds |
|
AMBAC |
- American Municipal Bond Assurance Corporation - Insured Bonds |
|
CDA |
- Communities Development Authority |
|
CMI |
- California Mortgage Insurance Program - Insured Bonds |
|
COP |
- Certificates of Participation |
|
CTFS |
- Certificates |
|
DFA |
- Development Finance Agency |
See Notes to Schedule of Investments.
WESTERN ASSET INTERMEDIATE MUNI FUND INC.
Schedule of investments (unaudited) (cont’d)
August 31, 2011
|
EFA |
- Educational Facilities Authority |
|
FGIC |
- Financial Guaranty Insurance Company - Insured Bonds |
|
FHA |
- Federal Housing Administration |
|
FHLMC |
- Federal Home Loan Mortgage Corporation |
|
FNMA |
- Federal National Mortgage Association |
|
GNMA |
- Government National Mortgage Association |
|
GO |
- General Obligation |
|
HEFA |
- Health & Educational Facilities Authority |
|
IDA |
- Industrial Development Authority |
|
INDLC |
- Industrial Indemnity Company - Insured Bonds |
|
LOC |
- Letter of Credit |
|
MFH |
- Multi-Family Housing |
|
NATL |
- National Public Finance Guarantee Corporation - Insured Bonds |
|
PCR |
- Pollution Control Revenue |
|
Radian |
- Radian Asset Assurance - Insured Bonds |
|
RIBS |
- Residual Interest Bonds |
|
SPA |
- Standby Bond Purchase Agreement - Insured Bonds |
|
XLCA |
- XL Capital Assurance Inc. - Insured Bonds |
Summary of Investments by Industry †
|
Industrial Revenue |
|
18.9 |
% |
|
Power |
|
15.6 |
|
|
Health Care |
|
13.9 |
|
|
Pre-Refunded/Escrowed to Maturity |
|
9.8 |
|
|
Transportation |
|
8.1 |
|
|
Local General Obligation |
|
7.1 |
|
|
Education |
|
5.8 |
|
|
Special Tax Obligation |
|
5.1 |
|
|
Leasing |
|
3.7 |
|
|
Water & Sewer |
|
2.4 |
|
|
Solid Waste/Resource Recovery |
|
1.9 |
|
|
Housing |
|
1.8 |
|
|
Other |
|
1.6 |
|
|
Short-Term Investments |
|
4.3 |
|
|
|
|
100.0 |
% |
† As a percentage of total investments. Please note that Fund holdings are as of August 31, 2011 and are subject to change.
See Notes to Schedule of Investments.
WESTERN ASSET INTERMEDIATE MUNI FUND INC.
Schedule of investments (unaudited) (cont’d)
August 31, 2011
Ratings Table*
|
Standard & Poor’s/Moody’s/Fitch** |
|
|
|
|
AAA/Aaa |
|
1.3 |
% |
|
AA/Aa |
|
32.3 |
|
|
A |
|
42.6 |
|
|
BBB/Baa |
|
11.1 |
|
|
BB/Ba |
|
1.1 |
|
|
CCC/Caa |
|
0.5 |
|
|
A-1/VMIG 1 |
|
4.3 |
|
|
NR |
|
6.8 |
|
|
|
|
100.0 |
% |
* As a percentage of total investments.
** The ratings shown are based on each portfolio security’s rating as determined by Standard & Poor’s, Moody’s or Fitch, each a Nationally Recognized Statistical Rating Organization (“NRSRO”). These ratings are the opinions of the NRSRO and are not measures of quality or guarantees of performance. Securities may be rated by other NRSROs, and these ratings may be higher or lower. In the event that a security is rated by multiple NRSROs and receives different ratings, the Fund will treat the security as being rated in the highest rating category received from a NRSRO.
See pages 8 through 10 for definitions of ratings.
See Notes to Schedule of Investments.
Bond ratings
The definitions of the applicable rating symbols are set forth below:
Long-term security ratings (unaudited)
Standard & Poor’s Ratings Service (“Standard & Poor’s”) Long-term Issue Credit Ratings — Ratings from “AA” to “CCC” may be modified by the addition of a plus (+) or minus (–) sign to show relative standings within the major rating categories.
|
AAA |
— |
|
An obligation rated “AAA” has the highest rating assigned by Standard & Poor’s. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong. |
|
AA |
— |
|
An obligation rated “AA” differs from the highest-rated obligations only to a small degree. The obligor’s capacity to meet its financial commitment on the obligation is very strong. |
|
A |
— |
|
An obligation rated “A” is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated categories. However, the obligor’s capacity to meet its financial commitment on the obligation is still strong. |
|
BBB |
— |
|
An obligation rated “BBB” exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation. |
|
BB |
— |
|
An obligation rated “BB” is less vulnerable to nonpayment than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions, which could lead to the obligor’s inadequate capacity to meet its financial commitment on the obligation. |
|
B |
— |
|
An obligation rated “B” is more vulnerable to nonpayment than obligations rated “BB”, but the obligor currently has the capacity to meet its financial commitment on the obligation. Adverse business, financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its financial commitment on the obligation. |
|
CCC |
— |
|
An obligation rated “CCC” is currently vulnerable to nonpayment, and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitment on the obligation. In the event of adverse business, financial, or economic conditions, the obligor is not likely to have the capacity to meet its financial commitment on the obligation. |
|
CC |
— |
|
An obligation rated “CC” is currently highly vulnerable to nonpayment. |
|
C |
— |
|
The “C” rating may be used to cover a situation where a bankruptcy petition has been filed or similar action has been taken, but payments on this obligation are being continued. |
|
D |
— |
|
An obligation rated “D” is in payment default. The “D” rating category is used when payments on an obligation are not made on the date due, even if the applicable grace period has not expired, unless Standard & Poor’s believes that such payments will be made during such grace period. The “D” rating also will be used upon the filing of a bankruptcy petition or the taking of a similar action if payments of an obligation are jeopardized. |
Moody’s Investors Service (“Moody’s”) Long-term Obligation Ratings — Numerical modifiers 1, 2 and 3 may be applied to each generic rating from “Aa” to “Caa,” where 1 is the highest and 3 the lowest ranking within its generic category.
|
Aaa |
— |
|
Obligations rated “Aaa” are judged to be of the highest quality, with minimal credit risk. |
|
Aa |
— |
|
Obligations rated “Aa” are judged to be of high quality and are subject to very low credit risk. |
|
A |
— |
|
Obligations rated “A” are considered upper-medium grade and are subject to low credit risk. |
|
Baa |
— |
|
Obligations rated “Baa” are subject to moderate credit risk. They are considered medium grade and as such may possess certain speculative characteristics. |
|
Ba |
— |
|
Obligations rated “Ba” are judged to have speculative elements and are subject to substantial credit risk. |
|
B |
— |
|
Obligations rated “B” are considered speculative and are subject to high credit risk. |
Long-term security ratings (unaudited) (cont’d)
|
Caa |
— |
|
Obligations rated “Caa” are judged to be of poor standing and are subject to very high credit risk. |
|
Ca |
— |
|
Obligations rated “Ca” are highly speculative and are likely in, or very near, default, with some prospect of recovery for principal and interest. |
|
C |
— |
|
Obligations rated “C” are the lowest rated class and are typically in default, with little prospect of recovery for principal and interest. |
Fitch Ratings Service (“Fitch”) Structured, Project & Public Finance Obligations — Ratings from “AA” to “CCC” may be modified by the addition of a plus (+) or minus (–) sign to show relative standings within the major rating categories.
|
AAA |
— |
|
Obligations rated “AAA” by Fitch denote the lowest expectation of default risk. They are assigned only in cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events. |
|
AA |
— |
|
Obligations rated “AA” denote expectations of very low default risk. They indicate very strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events. |
|
A |
— |
|
Obligations rated “A” denote expectations of low default risk. The capacity for payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to adverse business or economic conditions than is the case for higher ratings. |
|
BBB |
— |
|
Obligations rated “BBB” indicate that expectations of default risk are currently low. The capacity for payment of financial commitments is considered adequate but adverse business or economic conditions are more likely to impair this capacity. |
|
BB |
— |
|
Obligations rated “BB” indicate an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time; however, business or financial flexibility exists which supports the servicing of financial commitments. |
|
B |
— |
|
Obligations rated “B” indicate that material default risk is present, but a limited margin of safety remains. Financial commitments are currently being met; however, capacity for continued payment is vulnerable to deterioration in the business and economic environment. |
|
CCC |
— |
|
Default is a real possibility. |
|
CC |
— |
|
Default of some kind appears probable. |
|
C |
— |
|
Default is imminent or inevitable, or the issuer is in standstill. |
|
|
|
|
|
|
NR |
— |
|
Indicates that the obligation is not rated by Standard & Poor’s, Moody’s or Fitch. |
Short-term security ratings (unaudited)
Standard & Poor’s Municipal Short-Term Notes Ratings
|
SP-1 |
— |
|
A short-term obligation rated “SP-1” is rated in the highest category by Standard & Poor’s. Strong capacity to pay principal and interest. An issue determined to possess a very strong capacity to pay debt service is given a plus (+) designation. |
|
SP-2 |
— |
|
A short-term obligation rated “SP-2” is a Standard & Poor’s rating indicating satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and economic changes over the term of the notes. |
|
SP-3 |
— |
|
A short-term obligation rated “SP-3” is a Standard & Poor’s rating indicating speculative capacity to pay principal and interest. |
Standard & Poor’s Short-Term Issues Credit Ratings
|
A-1 |
— |
|
A short-term obligation rated “A-1” is rated in the highest category by Standard & Poor’s. The obligor’s capacity to meet its financial commitment on the obligation is strong. Within this category, certain obligations are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial commitment on these obligations is extremely strong. |
Short-term security ratings (unaudited) (cont’d)
|
A-2 |
— |
|
A short-term obligation rated “A-2” by Standard & Poor’s is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher rating categories. However, the obligor’s capacity to meet its financial commitment on the obligation is satisfactory. |
|
A-3 |
— |
|
A short-term obligation rated “A-3” by Standard & Poor’s exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation. |
|
B |
— |
|
A short-term obligation rated “B” by Standard & Poor’s is regarded as having significant speculative characteristics. Ratings of “B-1”, “B-2” and “B-3” may be assigned to indicate finer distinctions within the “B” category. The obligor currently has the capacity to meet its financial commitment on the obligation; however, it faces major ongoing uncertainties which could lead to the obligor’s inadequate capacity to meet its financial commitment on the obligation. |
Moody’s Variable Rate Demand Obligations (VRDO) Ratings
|
VMIG 1 |
— |
|
Moody’s highest rating for issues having a variable rate demand feature — VRDO. This designation denotes superior credit quality. Excellent protection is afforded by the superior short-term credit strength of the liquidity provider and structural and legal protections that ensure the timely payment of purchase price on demand. |
|
VMIG 2 |
— |
|
This designation denotes strong credit quality. Good protection is afforded by the strong short-term credit strength of the liquidity provider and structural and legal protections that ensure the timely payment of purchase price on demand. |
|
VMIG 3 |
— |
|
This designation denotes acceptable credit quality. Adequate protection is afforded by the strong short-term credit strength of the liquidity provider and structural and legal protections that ensure the timely payment of purchase price on demand. |
Moody’s Short-Term Municipal Obligations Ratings
|
MIG 1 |
— |
|
Moody’s highest rating for short-term municipal obligations. This designation denotes superior credit quality. Excellent protection is afforded by established cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for refinancing. |
|
MIG 2 |
— |
|
This designation denotes strong credit quality. Margins of protection are ample, although not as large as the preceding group. |
|
MIG 3 |
— |
|
This designation denotes acceptable credit quality. Liquidity and cash flow protection may be narrow, and market access for refinancing is likely to be less well-established. |
|
SG |
— |
|
This designation denotes speculative-grade credit quality. Debt instruments in this category may lack sufficient margins of protection. |
Moody’s Short-Term Obligations Ratings
|
P-1 |
— |
|
Moody’s highest rating for commercial paper and for VRDO prior to the advent of the VMIG 1 rating. Have a superior ability to repay short-term debt obligations. |
|
P-2 |
— |
|
Have a strong ability to repay short-term debt obligations. |
|
P-3 |
— |
|
Have an acceptable ability to repay short-term debt obligations. |
|
NP |
— |
|
Issuers do not fall within any of the Prime rating categories. |
Fitch’s Short-Term Issuer or Obligations Ratings
|
F1 |
— |
|
Fitch’s highest rating indicating the strongest intrinsic capacity for timely payment of financial commitments; may have an added “+” to denote any exceptionally strong credit feature. |
|
F2 |
— |
|
Fitch rating indicating good intrinsic capacity for timely payment of financial commitments. |
|
F3 |
— |
|
Fitch rating indicating intrinsic capacity for timely payment of financial commitments is adequate. |
|
|
|
|
|
|
NR |
— |
|
Indicates that the obligation is not rated by Standard & Poor’s, Moody’s or Fitch. |
Notes to Schedule of Investments (unaudited)
1. Organization and significant accounting policies
Western Asset Intermediate Muni Fund Inc. (the “Fund”) was incorporated in Maryland on December 19, 1991 and is registered as a diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Board of Directors authorized 100 million shares of $0.001 par value common stock. The Fund’s investment objective is to provide common shareholders a high level of current income exempt from regular federal income taxes consistent with prudent investing.
The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”).
(a) Investment Valuation. The valuations for fixed income 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 fair valuation techniques and methodologies. Short-term fixed income securities that will mature in 60 days or less are valued at amortized cost, unless it is determined that using this method would not reflect an investment’s fair value. 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. 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. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved by the Fund’s Board of Directors.
The Fund has adopted Financial Accounting Standards Board Codification Topic 820 (“ASC Topic 820”). ASC Topic 820 establishes a single definition of fair value, creates a three-tier hierarchy as a framework for measuring fair value based on inputs used to value the Fund’s investments, and requires additional disclosure about fair value. The hierarchy of inputs is summarized 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 methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
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.
The following is a summary of the inputs used in valuing the Fund’s assets carried at fair value:
ASSETS
|
DESCRIPTION |
|
QUOTED PRICES |
|
OTHER |
|
SIGNIFICANT |
|
TOTAL |
| ||
|
Municipal bonds† |
|
— |
|
$ |
178,547,807 |
|
— |
|
$ |
178,547,807 |
|
|
Short-term investments† |
|
— |
|
8,100,000 |
|
— |
|
8,100,000 |
| ||
|
Total investments |
|
— |
|
$ |
186,647,807 |
|
— |
|
$ |
186,647,807 |
|
†See Schedule of Investments for additional detailed categorizations.
(b) Security Transactions. Security transactions are accounted for on a trade date basis.
Notes to Schedule of Investments (unaudited) (continued)
2. Investments
At August 31, 2011, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:
|
Gross unrealized appreciation |
|
$ |
9,383,573 |
|
|
Gross unrealized depreciation |
|
(683,207 |
) | |
|
Net unrealized appreciation |
|
$ |
8,700,366 |
|
3. Derivative Instruments and Hedging Activities
Financial Accounting Standards Board Codification Topic 815 requires enhanced disclosure about an entity’s derivative and hedging activities.
During the period ended August 31, 2011, the Fund did not invest in any derivative instruments.
ITEM 2. 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 registrant’s last fiscal quarter that have materially affected, or are likely to materially affect the registrant’s internal control over financial reporting.
ITEM 3. EXHIBITS.
Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached hereto.
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, thereunto duly authorized.
Western Asset Intermediate Muni Fund Inc.
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By |
/s/ R. Jay Gerken |
|
|
|
R. Jay Gerken |
|
|
|
Chief Executive Officer |
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| |
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Date: October 26, 2011 |
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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.
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By |
/s/ R. Jay Gerken |
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|
|
R. Jay Gerken |
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Chief Executive Officer |
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Date: October 26, 2011 |
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|
| |
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By |
/s/ Kaprel Ozsolak |
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Kaprel Ozsolak |
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Chief Financial Officer |
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| |
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Date: October 26, 2011 |
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