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 |
811-06629 | |||||||
|
| ||||||||
|
Western Asset Managed Municipals Fund Inc. | ||||||||
|
(Exact name of registrant as specified in charter) | ||||||||
|
| ||||||||
|
620 Eighth Avenue, 49th Floor, 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: |
(888)777-0102 |
| ||||||
|
| ||||||||
|
Date of fiscal year end: |
May 31 |
| ||||||
|
| ||||||||
|
Date of reporting period: |
February 28, 2013 |
| ||||||
ITEM 1. SCHEDULE OF INVESTMENTS
WESTERN ASSET MANAGED MUNICIPALS FUND INC.
FORM N-Q
FEBRUARY 28, 2013
WESTERN ASSET MANAGED MUNICIPALS FUND INC.
Schedule of investments (unaudited)
February 28, 2013
|
SECURITY |
|
RATE |
|
MATURITY |
|
FACE |
|
VALUE |
| ||
|
MUNICIPAL BONDS — 137.5% |
|
|
|
|
|
|
|
|
| ||
|
Arizona — 6.5% |
|
|
|
|
|
|
|
|
| ||
|
Greater Arizona Development Authority, Development Authority Infrastructure Revenue, Pinal County Road Project, NATL |
|
5.000% |
|
8/1/19 |
|
$ |
3,705,000 |
|
$ |
4,111,735 |
|
|
Phoenix, AZ, Civic Improvement Corp. Airport Revenue |
|
5.000% |
|
7/1/40 |
|
5,000,000 |
|
5,579,650 |
| ||
|
Phoenix, AZ, Civic Improvement Corp. Airport Revenue, Senior Lien, FGIC |
|
5.250% |
|
7/1/22 |
|
3,000,000 |
|
3,000,000 |
(a) | ||
|
Salt Verde, AZ, Financial Corp. Gas Revenue |
|
5.000% |
|
12/1/32 |
|
15,000,000 |
|
17,256,000 |
| ||
|
Salt Verde, AZ, Financial Corp. Gas Revenue |
|
5.000% |
|
12/1/37 |
|
7,040,000 |
|
8,042,566 |
| ||
|
Salt Verde, AZ, Financial Corp. Senior Gas Revenue |
|
5.250% |
|
12/1/28 |
|
2,000,000 |
|
2,369,860 |
| ||
|
Total Arizona |
|
|
|
|
|
|
|
40,359,811 |
| ||
|
California — 21.9% |
|
|
|
|
|
|
|
|
| ||
|
Bay Area Toll Authority, CA, Toll Bridge Revenue: |
|
|
|
|
|
|
|
|
| ||
|
San Francisco Bay Area |
|
1.210% |
|
4/1/24 |
|
7,000,000 |
|
7,012,600 |
(b) | ||
|
San Francisco Bay Area |
|
5.125% |
|
4/1/39 |
|
21,700,000 |
|
24,772,069 |
| ||
|
California Health Facilities Financing Authority Revenue, Stanford Hospital & Clinics |
|
5.150% |
|
11/15/40 |
|
2,000,000 |
|
2,250,960 |
| ||
|
California Housing Finance Agency Revenue, Home Mortgage |
|
4.700% |
|
8/1/24 |
|
3,100,000 |
|
3,059,483 |
(a) | ||
|
California State PCFA, Water Furnishing Revenue |
|
5.000% |
|
11/21/45 |
|
10,000,000 |
|
10,338,200 |
(a) | ||
|
California State PCFA, Water Furnishing Revenue |
|
5.000% |
|
11/21/45 |
|
5,000,000 |
|
5,182,300 |
| ||
|
California Statewide CDA Revenue, Methodist Hospital Project, FHA |
|
6.625% |
|
8/1/29 |
|
5,235,000 |
|
6,516,214 |
| ||
|
Garden Grove, CA, Agency for Community Development, Tax Allocation, Refunding, AMBAC |
|
5.000% |
|
10/1/29 |
|
7,375,000 |
|
7,350,072 |
| ||
|
Imperial Irrigation District, CA, Electric Revenue |
|
5.500% |
|
11/1/41 |
|
2,750,000 |
|
3,132,278 |
| ||
|
Los Angeles County, CA, Public Works Financing Authority, Lease Revenue: |
|
|
|
|
|
|
|
|
| ||
|
Multiple Capital Projects II |
|
5.000% |
|
8/1/32 |
|
3,000,000 |
|
3,464,520 |
| ||
|
Multiple Capital Projects II |
|
5.000% |
|
8/1/37 |
|
2,750,000 |
|
3,130,078 |
| ||
|
Los Angeles, CA, Convention & Exhibition Center Authority, Lease Revenue |
|
5.125% |
|
8/15/22 |
|
7,250,000 |
|
8,189,382 |
| ||
|
Los Angeles, CA, Department of Airports Revenue, Los Angeles International Airport |
|
5.000% |
|
5/15/40 |
|
7,215,000 |
|
8,167,164 |
| ||
|
M-S-R Energy Authority, CA, Gas Revenue |
|
7.000% |
|
11/1/34 |
|
3,000,000 |
|
4,312,080 |
| ||
|
M-S-R Energy Authority, CA, Gas Revenue |
|
6.500% |
|
11/1/39 |
|
9,000,000 |
|
12,629,790 |
| ||
|
Modesto, CA, Irrigation District, COP, Capital Improvements |
|
6.000% |
|
10/1/39 |
|
6,500,000 |
|
7,385,625 |
| ||
|
Rancho Cucamonga, CA, RDA, Tax Allocation, Rancho Redevelopment Projects, NATL |
|
5.125% |
|
9/1/30 |
|
3,340,000 |
|
3,340,701 |
| ||
|
Sacramento County, CA, COP, Unrefunded Balance, Public Facilities Project, NATL |
|
5.375% |
|
2/1/19 |
|
1,145,000 |
|
1,148,756 |
| ||
|
San Bernardino County, CA, COP, Arrowhead Project |
|
5.125% |
|
8/1/24 |
|
5,185,000 |
|
5,633,554 |
| ||
|
San Mateo County Community College District, COP, NATL |
|
5.000% |
|
10/1/25 |
|
3,000,000 |
|
3,223,470 |
(c) | ||
|
Shafter Wasco Irrigation District Revenue, CA, COP |
|
5.000% |
|
11/1/40 |
|
5,000,000 |
|
5,374,450 |
| ||
|
Total California |
|
|
|
|
|
|
|
135,613,746 |
| ||
|
Colorado — 10.9% |
|
|
|
|
|
|
|
|
| ||
|
Colorado Health Facilities Authority Revenue: |
|
|
|
|
|
|
|
|
| ||
|
Catholic Health Initiatives |
|
5.000% |
|
9/1/41 |
|
4,000,000 |
|
4,208,880 |
| ||
|
Sisters Leavenworth |
|
5.000% |
|
1/1/35 |
|
6,000,000 |
|
6,560,760 |
| ||
|
Denver, CO, City & County Airport Revenue |
|
6.125% |
|
11/15/25 |
|
10,945,000 |
|
14,927,557 |
(a)(d) | ||
See Notes to Schedule of Investments.
WESTERN ASSET MANAGED MUNICIPALS FUND INC.
Schedule of investments (unaudited) (cont’d)
February 28, 2013
|
SECURITY |
|
RATE |
|
MATURITY |
|
FACE |
|
VALUE |
| ||
|
Colorado — continued |
|
|
|
|
|
|
|
|
| ||
|
Denver, CO, City & County Airport Revenue, Unrefunded Balance |
|
6.125% |
|
11/15/25 |
|
$ |
13,630,000 |
|
$ |
13,669,391 |
(a) |
|
Public Authority for Colorado Energy, Natural Gas Purchase Revenue |
|
6.500% |
|
11/15/38 |
|
20,000,000 |
|
27,899,600 |
| ||
|
Total Colorado |
|
|
|
|
|
|
|
67,266,188 |
| ||
|
District of Columbia — 2.5% |
|
|
|
|
|
|
|
|
| ||
|
District of Columbia, Hospital Revenue, Children’s Hospital Obligation, AGM |
|
5.450% |
|
7/15/35 |
|
14,335,000 |
|
15,596,193 |
| ||
|
Florida — 11.5% |
|
|
|
|
|
|
|
|
| ||
|
Jacksonville, FL, Electric Authority, Electric System Revenue |
|
5.000% |
|
10/1/28 |
|
3,305,000 |
|
3,360,689 |
| ||
|
Martin County, FL, IDA Revenue, Indiantown Cogeneration Project |
|
7.875% |
|
12/15/25 |
|
6,500,000 |
|
6,532,695 |
(a) | ||
|
Miami-Dade County, FL, Aviation Revenue |
|
5.000% |
|
10/1/30 |
|
6,000,000 |
|
6,862,980 |
(a) | ||
|
Miami-Dade County, FL, Aviation Revenue |
|
5.500% |
|
10/1/41 |
|
10,000,000 |
|
11,327,900 |
| ||
|
Miami-Dade County, FL, Aviation Revenue, Miami International Airport |
|
5.375% |
|
10/1/35 |
|
10,705,000 |
|
12,290,518 |
| ||
|
Miami-Dade County, FL, Expressway Authority Toll System Revenue |
|
5.000% |
|
7/1/40 |
|
10,000,000 |
|
10,873,500 |
| ||
|
Orange County, FL, Health Facilities Authority Revenue, Hospital-Orlando Regional Healthcare |
|
5.000% |
|
11/1/35 |
|
4,545,000 |
|
4,918,508 |
| ||
|
Orange County, FL, School Board, COP, AGC |
|
5.500% |
|
8/1/34 |
|
8,000,000 |
|
9,197,680 |
| ||
|
Orlando, FL, State Sales Tax Payments Revenue |
|
5.000% |
|
8/1/32 |
|
5,000,000 |
|
5,722,650 |
| ||
|
Total Florida |
|
|
|
|
|
|
|
71,087,120 |
| ||
|
Georgia — 4.5% |
|
|
|
|
|
|
|
|
| ||
|
Atlanta, GA, Water & Wastewater Revenue |
|
6.250% |
|
11/1/39 |
|
13,000,000 |
|
15,917,850 |
| ||
|
DeKalb, Newton & Gwinnett Counties, GA, Joint Development Authority Revenue, GGC Foundation LLC Project |
|
6.125% |
|
7/1/40 |
|
6,220,000 |
|
7,214,951 |
| ||
|
Main Street Natural Gas Inc., GA, Gas Project Revenue |
|
5.000% |
|
3/15/22 |
|
4,000,000 |
|
4,597,840 |
| ||
|
Total Georgia |
|
|
|
|
|
|
|
27,730,641 |
| ||
|
Hawaii — 1.3% |
|
|
|
|
|
|
|
|
| ||
|
Hawaii State Airports System Revenue |
|
5.000% |
|
7/1/39 |
|
7,000,000 |
|
7,889,420 |
| ||
|
Illinois — 7.1% |
|
|
|
|
|
|
|
|
| ||
|
Chicago, IL, O’Hare International Airport Revenue |
|
5.625% |
|
1/1/35 |
|
6,415,000 |
|
7,532,172 |
| ||
|
Chicago, IL, O’Hare International Airport Revenue |
|
5.750% |
|
1/1/39 |
|
6,000,000 |
|
7,014,900 |
| ||
|
Illinois Finance Authority Revenue: |
|
|
|
|
|
|
|
|
| ||
|
Advocate Health Care & Hospitals Corp. Network |
|
6.250% |
|
11/1/28 |
|
2,445,000 |
|
2,961,555 |
| ||
|
Depaul University |
|
6.125% |
|
10/1/40 |
|
5,000,000 |
|
5,771,400 |
| ||
|
Memorial Health System |
|
5.500% |
|
4/1/39 |
|
7,000,000 |
|
7,612,010 |
| ||
|
Metropolitan Pier & Exposition Authority, IL, Dedicated State Tax Revenue, McCormick Project |
|
5.250% |
|
6/15/50 |
|
12,000,000 |
|
13,232,880 |
| ||
|
Total Illinois |
|
|
|
|
|
|
|
44,124,917 |
| ||
|
Indiana — 2.7% |
|
|
|
|
|
|
|
|
| ||
|
Indiana Finance Authority, Wastewater Utility Revenue, CWA Authority |
|
5.000% |
|
10/1/41 |
|
5,000,000 |
|
5,531,650 |
| ||
|
Indianapolis, IN, Thermal Energy System |
|
5.000% |
|
10/1/25 |
|
5,000,000 |
|
5,550,150 |
(e) | ||
|
Richmond, IN, Hospital Authority Revenue, Reid Hospital & Health Care Services Inc. Project |
|
6.625% |
|
1/1/39 |
|
5,000,000 |
|
5,750,950 |
| ||
|
Total Indiana |
|
|
|
|
|
|
|
16,832,750 |
| ||
See Notes to Schedule of Investments.
WESTERN ASSET MANAGED MUNICIPALS FUND INC.
Schedule of investments (unaudited) (cont’d)
February 28, 2013
|
SECURITY |
|
RATE |
|
MATURITY |
|
FACE |
|
VALUE |
| ||
|
Kentucky — 1.9% |
|
|
|
|
|
|
|
|
| ||
|
Louisville & Jefferson County, KY, Metropolitan Government Health System Revenue, Norton Healthcare Inc. |
|
5.250% |
|
10/1/36 |
|
$ |
11,000,000 |
|
$ |
11,705,540 |
|
|
Louisiana — 0.9% |
|
|
|
|
|
|
|
|
| ||
|
St. Charles Parish, LA, Gulf Zone Opportunity Zone Revenue, Valero Refining-New Orleans LLC |
|
4.000% |
|
6/1/22 |
|
5,000,000 |
|
5,532,500 |
(b) | ||
|
Maryland — 1.2% |
|
|
|
|
|
|
|
|
| ||
|
Baltimore, MD, Project Revenue: |
|
|
|
|
|
|
|
|
| ||
|
Refunding, Wastewater Projects, FGIC |
|
5.125% |
|
7/1/32 |
|
2,500,000 |
|
2,506,575 |
| ||
|
Refunding, Wastewater Projects, FGIC |
|
5.200% |
|
7/1/32 |
|
2,000,000 |
|
2,005,360 |
| ||
|
Maryland State Health & Higher EFA Revenue, Johns Hopkins Hospital Issue |
|
5.000% |
|
11/15/26 |
|
3,075,000 |
|
3,176,044 |
(c) | ||
|
Total Maryland |
|
|
|
|
|
|
|
7,687,979 |
| ||
|
Massachusetts — 4.9% |
|
|
|
|
|
|
|
|
| ||
|
Massachusetts State DFA Revenue: |
|
|
|
|
|
|
|
|
| ||
|
Boston University |
|
5.000% |
|
10/1/29 |
|
3,000,000 |
|
3,327,090 |
| ||
|
Boston University, AMBAC |
|
5.000% |
|
10/1/39 |
|
3,500,000 |
|
3,719,310 |
| ||
|
Broad Institute Inc. |
|
5.250% |
|
4/1/37 |
|
8,000,000 |
|
9,042,960 |
| ||
|
Massachusetts State HEFA Revenue, Suffolk University |
|
5.750% |
|
7/1/39 |
|
8,000,000 |
|
9,104,880 |
| ||
|
Massachusetts State Housing Finance Agency Revenue |
|
7.000% |
|
12/1/38 |
|
4,575,000 |
|
5,086,348 |
| ||
|
Total Massachusetts |
|
|
|
|
|
|
|
30,280,588 |
| ||
|
Michigan — 2.1% |
|
|
|
|
|
|
|
|
| ||
|
Lansing, MI, Board of Water & Light Utility System Revenue |
|
5.000% |
|
7/1/37 |
|
7,000,000 |
|
8,001,840 |
| ||
|
Royal Oak, MI, Hospital Finance Authority Revenue, William Beaumont Hospital |
|
8.250% |
|
9/1/39 |
|
4,000,000 |
|
5,067,080 |
| ||
|
Total Michigan |
|
|
|
|
|
|
|
13,068,920 |
| ||
|
Minnesota — 0.2% |
|
|
|
|
|
|
|
|
| ||
|
Dakota County, MN, CDA, MFH Revenue, Southfork Apartments, LIQ-FNMA |
|
5.625% |
|
2/1/26 |
|
1,500,000 |
|
1,500,765 |
| ||
|
Missouri — 2.2% |
|
|
|
|
|
|
|
|
| ||
|
Kansa City, MO, Water Revenue |
|
5.250% |
|
12/1/32 |
|
1,000,000 |
|
1,187,880 |
| ||
|
Missouri State HEFA Revenue, Children’s Mercy Hospital |
|
5.625% |
|
5/15/39 |
|
6,000,000 |
|
6,665,400 |
| ||
|
Platte County, MO, IDA Revenue, Refunding & Improvement Zona Rosa Retail Project |
|
5.000% |
|
12/1/32 |
|
5,000,000 |
|
5,550,450 |
| ||
|
Total Missouri |
|
|
|
|
|
|
|
13,403,730 |
| ||
|
Nebraska — 0.5% |
|
|
|
|
|
|
|
|
| ||
|
Nebraska Public Power Generation Agency Revenue, Whelan Energy Center Unit 2-A, AMBAC |
|
5.000% |
|
1/1/25 |
|
3,000,000 |
|
3,291,210 |
| ||
|
Nevada — 2.2% |
|
|
|
|
|
|
|
|
| ||
|
Reno, NV, Hospital Revenue, Washoe Medical Centre, AGM |
|
5.500% |
|
6/1/33 |
|
12,750,000 |
|
13,707,397 |
| ||
|
New Jersey — 9.1% |
|
|
|
|
|
|
|
|
| ||
|
New Jersey State EDA Revenue |
|
5.000% |
|
6/15/26 |
|
2,500,000 |
|
2,841,450 |
| ||
|
New Jersey State EDA Revenue: |
|
|
|
|
|
|
|
|
| ||
|
Continental Airlines Inc. Project |
|
4.875% |
|
9/15/19 |
|
3,000,000 |
|
3,085,200 |
(a) | ||
|
Continental Airlines Inc. Project |
|
5.125% |
|
9/15/23 |
|
2,000,000 |
|
2,058,200 |
(a) | ||
See Notes to Schedule of Investments.
WESTERN ASSET MANAGED MUNICIPALS FUND INC.
Schedule of investments (unaudited) (cont’d)
February 28, 2013
|
SECURITY |
|
RATE |
|
MATURITY |
|
FACE |
|
VALUE |
| ||
|
New Jersey — continued |
|
|
|
|
|
|
|
|
| ||
|
Continental Airlines Inc. Project |
|
5.250% |
|
9/15/29 |
|
$ |
3,000,000 |
|
$ |
3,064,740 |
(a) |
|
School Facilities Construction |
|
1.710% |
|
3/1/28 |
|
15,000,000 |
|
15,008,100 |
(e) | ||
|
New Jersey State Higher Education Assistance Authority, Student Loan Revenue |
|
5.625% |
|
6/1/30 |
|
12,320,000 |
|
13,687,643 |
| ||
|
New Jersey State Higher Education Assistance Authority, Student Loan Revenue, AGC |
|
6.125% |
|
6/1/30 |
|
10,000,000 |
|
11,129,500 |
(a) | ||
|
New Jersey State Housing & Mortgage Finance Agency Revenue |
|
6.375% |
|
10/1/28 |
|
4,900,000 |
|
5,184,886 |
| ||
|
Total New Jersey |
|
|
|
|
|
|
|
56,059,719 |
| ||
|
New Mexico — 1.0% |
|
|
|
|
|
|
|
|
| ||
|
New Mexico State Hospital Equipment Loan Council, Hospital Revenue, Presbyterian Healthcare Services |
|
6.125% |
|
8/1/28 |
|
5,000,000 |
|
5,916,550 |
(f) | ||
|
New York — 12.9% |
|
|
|
|
|
|
|
|
| ||
|
Liberty, NY, Development Corporation Revenue: |
|
|
|
|
|
|
|
|
| ||
|
Goldman Sachs Headquarters |
|
5.250% |
|
10/1/35 |
|
9,000,000 |
|
10,751,760 |
| ||
|
Goldman Sachs Headquarters |
|
5.500% |
|
10/1/37 |
|
8,985,000 |
|
11,080,841 |
| ||
|
Long Island Power Authority, NY, Electric System Revenue |
|
6.000% |
|
5/1/33 |
|
24,570,000 |
|
29,806,359 |
| ||
|
MTA, NY, Revenue |
|
5.250% |
|
11/15/40 |
|
5,000,000 |
|
5,628,600 |
| ||
|
New York City, NY, Municipal Water Finance Authority, Water & Sewer Systems Revenue, Second General Resolution Fiscal 2013 |
|
5.000% |
|
6/15/47 |
|
5,000,000 |
|
5,684,150 |
(g) | ||
|
New York City, NY, TFA, Building Aid Revenue |
|
5.000% |
|
1/15/32 |
|
4,000,000 |
|
4,546,600 |
| ||
|
New York Liberty Development Corp., Liberty Revenue: |
|
|
|
|
|
|
|
|
| ||
|
4 World Trade Center LLC Project |
|
5.750% |
|
11/15/51 |
|
5,000,000 |
|
5,935,700 |
| ||
|
Second Priority, Bank of America Tower |
|
5.125% |
|
1/15/44 |
|
1,000,000 |
|
1,110,550 |
| ||
|
New York State Dormitory Authority Revenue, Willow Towers Inc. Project, GNMA-Collateralized |
|
5.250% |
|
2/1/22 |
|
835,000 |
|
846,189 |
| ||
|
Port Authority of New York & New Jersey |
|
5.000% |
|
1/15/41 |
|
3,820,000 |
|
4,300,059 |
| ||
|
Total New York |
|
|
|
|
|
|
|
79,690,808 |
| ||
|
North Carolina — 0.6% |
|
|
|
|
|
|
|
|
| ||
|
Harnett County, NC, GO, Refunded Custody Receipts, AMBAC |
|
5.250% |
|
6/1/24 |
|
1,615,000 |
|
1,709,817 |
| ||
|
North Carolina Capital Facilities Finance Agency, Educational Facilities Revenue: |
|
|
|
|
|
|
|
|
| ||
|
Elizabeth City State University Housing Foundation LLC Project, AMBAC |
|
5.000% |
|
6/1/23 |
|
1,000,000 |
|
1,001,790 |
| ||
|
Elizabeth City State University Housing Foundation LLC Project, AMBAC |
|
5.000% |
|
6/1/33 |
|
1,250,000 |
|
1,250,675 |
| ||
|
Total North Carolina |
|
|
|
|
|
|
|
3,962,282 |
| ||
|
Ohio — 2.6% |
|
|
|
|
|
|
|
|
| ||
|
Hamilton County, OH, Hospital Facilities Revenue, Cincinnati Children’s Hospital, FGIC |
|
5.250% |
|
5/15/23 |
|
2,000,000 |
|
2,061,140 |
| ||
|
JobsOhio Beverage System Statewide Liquor Profits Revenue |
|
5.000% |
|
1/1/38 |
|
8,000,000 |
|
9,075,200 |
| ||
|
Ohio State Water Development Authority, Environmental Improvement Revenue, U.S. Steel Corp. Project |
|
6.600% |
|
5/1/29 |
|
3,000,000 |
|
3,278,550 |
| ||
|
Summit County, OH, GO: |
|
|
|
|
|
|
|
|
| ||
|
FGIC |
|
5.000% |
|
12/1/21 |
|
1,000,000 |
|
1,010,000 |
| ||
|
FGIC |
|
5.000% |
|
12/1/22 |
|
500,000 |
|
505,000 |
| ||
|
Total Ohio |
|
|
|
|
|
|
|
15,929,890 |
| ||
See Notes to Schedule of Investments.
WESTERN ASSET MANAGED MUNICIPALS FUND INC.
Schedule of investments (unaudited) (cont’d)
February 28, 2013
|
SECURITY |
|
RATE |
|
MATURITY |
|
FACE |
|
VALUE |
| ||
|
Oregon — 0.3% |
|
|
|
|
|
|
|
|
| ||
|
Oregon State Housing & Community Services Department, Mortgage Revenue, Single-Family Mortgage Program |
|
5.050% |
|
7/1/26 |
|
$ |
1,040,000 |
|
$ |
1,076,109 |
(a) |
|
Umatilla County, OR, Hospital Facility Authority Revenue: |
|
|
|
|
|
|
|
|
| ||
|
Catholic Health Initiatives |
|
5.000% |
|
5/1/32 |
|
535,000 |
|
551,735 |
| ||
|
Catholic Health Initiatives |
|
5.000% |
|
5/1/32 |
|
465,000 |
|
490,468 |
(c) | ||
|
Total Oregon |
|
|
|
|
|
|
|
2,118,312 |
| ||
|
Pennsylvania — 2.3% |
|
|
|
|
|
|
|
|
| ||
|
Pennsylvania State Public School Building Authority Lease Revenue, Philadelphia School District Project, AGM |
|
5.000% |
|
6/1/33 |
|
7,255,000 |
|
7,735,136 |
| ||
|
Pennsylvania State Turnpike Commission Revenue |
|
5.250% |
|
12/1/41 |
|
6,000,000 |
|
6,552,780 |
| ||
|
Total Pennsylvania |
|
|
|
|
|
|
|
14,287,916 |
| ||
|
Puerto Rico — 7.3% |
|
|
|
|
|
|
|
|
| ||
|
Puerto Rico Commonwealth Aqueduct & Sewer Authority Revenue |
|
5.000% |
|
7/1/33 |
|
5,250,000 |
|
5,138,175 |
| ||
|
Puerto Rico Electric Power Authority Revenue |
|
5.500% |
|
7/1/38 |
|
5,000,000 |
|
5,101,150 |
| ||
|
Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue |
|
5.750% |
|
8/1/37 |
|
6,000,000 |
|
6,482,340 |
| ||
|
Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue |
|
5.250% |
|
8/1/41 |
|
5,550,000 |
|
5,855,916 |
| ||
|
Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue |
|
5.500% |
|
8/1/42 |
|
7,500,000 |
|
7,986,375 |
| ||
|
Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue |
|
6.000% |
|
8/1/42 |
|
4,000,000 |
|
4,388,760 |
| ||
|
Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue |
|
5.000% |
|
8/1/43 |
|
10,000,000 |
|
10,446,000 |
| ||
|
Total Puerto Rico |
|
|
|
|
|
|
|
45,398,716 |
| ||
|
Rhode Island — 1.0% |
|
|
|
|
|
|
|
|
| ||
|
Rhode Island State Health & Educational Building Corp., Revenue, Hospital Financing |
|
7.000% |
|
5/15/39 |
|
5,000,000 |
|
5,845,300 |
| ||
|
South Carolina — 0.5% |
|
|
|
|
|
|
|
|
| ||
|
South Carolina State Ports Authority Revenue |
|
5.250% |
|
7/1/40 |
|
2,500,000 |
|
2,792,300 |
| ||
|
Tennessee — 0.1% |
|
|
|
|
|
|
|
|
| ||
|
Hardeman County, TN, Correctional Facilities Corp., Correctional Facilities Revenue |
|
7.750% |
|
8/1/17 |
|
605,000 |
|
608,570 |
| ||
|
Texas — 13.9% |
|
|
|
|
|
|
|
|
| ||
|
Dallas-Fort Worth, TX, International Airport Facilities Improvement Corp. Revenue, American Airlines Inc., Guarantee Agreement |
|
6.375% |
|
5/1/35 |
|
5,000,000 |
|
5,012,450 |
(a)(h) | ||
|
Dallas-Fort Worth, TX, International Airport Revenue: |
|
|
|
|
|
|
|
|
| ||
|
Joint Improvement |
|
5.000% |
|
11/1/38 |
|
8,000,000 |
|
8,794,960 |
(a) | ||
|
Joint Improvement |
|
5.000% |
|
11/1/45 |
|
10,000,000 |
|
11,027,500 |
| ||
|
Harris County, TX, Health Facilities Development Corp., School Health Care System Revenue |
|
5.750% |
|
7/1/27 |
|
1,000,000 |
|
1,330,470 |
(d) | ||
|
Love Field Airport Modernization Corp., TX, Special Facilities Revenue, Southwest Airlines Co. Project |
|
5.250% |
|
11/1/40 |
|
15,000,000 |
|
16,909,800 |
| ||
|
North Texas Tollway Authority Revenue |
|
5.750% |
|
1/1/33 |
|
5,000,000 |
|
5,530,000 |
| ||
|
North Texas Tollway Authority Revenue |
|
5.750% |
|
1/1/40 |
|
15,000,000 |
|
17,106,000 |
| ||
|
Texas Municipal Gas Acquisition & Supply Corp. I, Gas Supply Revenue |
|
5.625% |
|
12/15/17 |
|
1,765,000 |
|
1,976,394 |
| ||
|
Texas Private Activity Bond Surface Transportation Corp. Revenue, LBJ Infrastructure Group LLC |
|
7.000% |
|
6/30/40 |
|
7,000,000 |
|
8,483,860 |
| ||
See Notes to Schedule of Investments.
WESTERN ASSET MANAGED MUNICIPALS FUND INC.
Schedule of investments (unaudited) (cont’d)
February 28, 2013
|
SECURITY |
|
RATE |
|
MATURITY |
|
FACE |
|
VALUE |
| ||
|
Texas — continued |
|
|
|
|
|
|
|
|
|
|
|
|
Texas State Municipal Gas Acquisition & Supply Corp. III, Gas Supply Revenue |
|
5.000 |
% |
12/15/27 |
|
$ |
8,550,000 |
|
$ |
9,461,943 |
|
|
Total Texas |
|
|
|
|
|
|
|
85,633,377 |
| ||
|
Virginia — 0.9% |
|
|
|
|
|
|
|
|
| ||
|
Virginia State Small Business Financing Authority Revenue: |
|
|
|
|
|
|
|
|
| ||
|
Elizabeth River Crossings OpCo LLC Project |
|
5.250 |
% |
1/1/32 |
|
3,000,000 |
|
3,274,590 |
(a) | ||
|
Elizabeth River Crossings OpCo LLC Project |
|
5.500 |
% |
1/1/42 |
|
2,000,000 |
|
2,197,100 |
(a) | ||
|
Total Virginia |
|
|
|
|
|
|
|
5,471,690 |
| ||
|
TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS (Cost — $741,296,506) |
|
850,394,845 |
| ||||||||
|
SHORT-TERM INVESTMENTS — 1.9% |
|
|
|
|
|
|
|
|
| ||
|
Illinois — 0.0% |
|
|
|
|
|
|
|
|
| ||
|
Chicago, IL, Water Revenue, SPA-JPMorgan Chase |
|
0.130 |
% |
11/1/30 |
|
200,000 |
|
200,000 |
(i)(j) | ||
|
Maryland — 0.1% |
|
|
|
|
|
|
|
|
| ||
|
Montgomery County, MD, Housing Opportunities Commission, Multi-Family Revenue, Housing Oak Mill II Appartments, LOC-Bank of America N.A. |
|
0.150 |
% |
5/1/26 |
|
600,000 |
|
600,000 |
(i)(j) | ||
|
Massachusetts — 1.0% |
|
|
|
|
|
|
|
|
| ||
|
Massachusetts State HEFA Revenue, Partners Healthcare Systems, SPA-JPMorgan Chase |
|
0.100 |
% |
7/1/27 |
|
6,000,000 |
|
6,000,000 |
(i)(j) | ||
|
New York — 0.3% |
|
|
|
|
|
|
|
|
| ||
|
New York City, NY, GO, SPA-Dexia Credit Local |
|
0.190 |
% |
8/1/28 |
|
1,900,000 |
|
1,900,000 |
(i)(j) | ||
|
North Carolina — 0.3% |
|
|
|
|
|
|
|
|
| ||
|
Charlotte, NC: |
|
|
|
|
|
|
|
|
| ||
|
Water & Sewer System Revenue, SPA-Depfa Bank PLC |
|
0.090 |
% |
7/1/36 |
|
1,400,000 |
|
1,400,000 |
(i)(j) | ||
|
Water & Sewer System Revenue, SPA-Wells Fargo Bank N.A. |
|
0.090 |
% |
7/1/27 |
|
100,000 |
|
100,000 |
(i)(j) | ||
|
Guilford County, NC, GO, SPA-Wells Fargo Bank N.A. |
|
0.090 |
% |
3/1/25 |
|
150,000 |
|
150,000 |
(i)(j) | ||
|
Total North Carolina |
|
|
|
|
|
|
|
1,650,000 |
| ||
|
Pennsylvania — 0.2% |
|
|
|
|
|
|
|
|
| ||
|
Pennsylvania State Turnpike Commission, Registration Fee Revenue, Refunding, AGM, SPA-JPMorgan Chase |
|
0.330 |
% |
7/15/41 |
|
1,000,000 |
|
1,000,000 |
(i)(j) | ||
|
Virginia — 0.0% |
|
|
|
|
|
|
|
|
| ||
|
Virginia Small Business Financing Authority, Hospital Revenue, Carilion Clinic Obligation, SPA-Wells Fargo Bank N.A. |
|
0.150 |
% |
7/1/42 |
|
100,000 |
|
100,000 |
(i)(j) | ||
|
TOTAL SHORT-TERM INVESTMENTS (Cost — $11,450,000) |
|
|
|
11,450,000 |
| ||||||
|
TOTAL INVESTMENTS — 139.4 % (Cost — $752,746,506#) |
|
|
|
861,844,845 |
| ||||||
|
Auction Rate Cumulative Preferred Stock, at Liquidation Value — (40.4)% |
|
|
|
|
|
|
|
(250,000,000) |
| ||
|
Other Assets in Excess of Liabilities — 1.0% |
|
|
|
|
|
|
|
6,414,989 |
| ||
|
TOTAL NET ASSETS — 100.0% |
|
|
|
|
|
|
|
$ |
618,259,834 |
| |
|
(a) |
Income from this issue is considered a preference item for purposes of calculating the alternative minimum tax ("AMT"). |
|
(b) |
Maturity date shown represents the mandatory tender date. |
|
(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) |
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. |
See Notes to Schedule of Investments.
WESTERN ASSET MANAGED MUNICIPALS FUND INC.
Schedule of investments (unaudited) (cont’d)
February 28, 2013
|
(e) |
Variable rate security. Interest rate disclosed is as of the most recent information available. |
|
(f) |
All or a portion of this security is held at the broker as collateral for open futures contracts. |
|
(g) |
Security is purchased on a when-issued basis. |
|
(h) |
The coupon payment on these securities is currently in default as of February 28, 2013. |
|
(i) |
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. |
|
(j) |
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 : | |
|
|
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 |
|
|
COP |
- Certificates of Participation |
|
|
DFA |
- Development Finance Agency |
|
|
EDA |
- Economic Development Authority |
|
|
EFA |
- Educational Facilities Authority |
|
|
FGIC |
- Financial Guaranty Insurance Company - Insured Bonds |
|
|
FHA |
- Federal Housing Administration |
|
|
FNMA |
- Federal National Mortgage Association |
|
|
GNMA |
- Government National Mortgage Association |
|
|
GO |
- General Obligation |
|
|
HEFA |
- Health & Educational Facilities Authority |
|
|
IDA |
- Industrial Development Authority |
|
|
LIQ |
- Liquidity Facility |
|
|
LOC |
- Letter of Credit |
|
|
MFH |
- Multi-Family Housing |
|
|
MTA |
- Metropolitan Transportation Authority |
|
|
NATL |
- National Public Finance Guarantee Corporation - Insured Bonds |
|
|
PCFA |
- Pollution Control Financing Authority |
|
|
RDA |
- Redevelopment Agency |
|
|
SPA |
- Standby Bond Purchase Agreement - Insured Bonds |
|
|
TFA |
- Transitional Finance Authority |
Summary of Investments by Industry †
|
Transportation |
|
22.3 |
% |
|
Industrial Revenue |
|
16.4 |
|
|
Health Care |
|
13.3 |
|
|
Power |
|
9.5 |
|
|
Education |
|
9.3 |
|
|
Special Tax Obligation |
|
8.1 |
|
|
Water & Sewer |
|
6.2 |
|
|
Leasing |
|
4.5 |
|
|
Pre-Refunded/Escrowed to Maturity |
|
4.3 |
|
|
Other |
|
2.6 |
|
|
Housing |
|
1.8 |
|
|
Local General Obligation |
|
0.4 |
|
|
Short - Term Investments |
|
1.3 |
|
|
|
|
100.0 |
% |
† As a percentage of total investments. Please note that Fund holdings are as of February 28, 2013 and are subject to change.
Ratings Table*
Standard & Poor’s/Moody’s/Fitch**
|
AAA/Aaa |
|
1.5 |
% |
|
AA/Aa |
|
28.8 |
|
|
A |
|
55.7 |
|
|
BBB/Baa |
|
9.2 |
|
|
BB/Ba |
|
1.1 |
|
|
B/B |
|
1.0 |
|
|
A-1/VMIG 1 |
|
1.3 |
|
|
NR |
|
1.4 |
|
|
|
|
100.0 |
% |
See Notes to Schedule of Investments.
WESTERN ASSET MANAGED MUNICIPALS FUND INC.
Schedule of investments (unaudited) (cont’d)
February 28, 2013
|
* |
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 Notes to Schedule of Investments.
Notes to schedule of investments (unaudited)
1. Organization and significant accounting policies
Western Asset Managed Municipals Fund Inc. (the “Fund”) was incorporated in Maryland and is registered as a non-diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund seeks to maximize current income exempt from federal income tax as is consistent with preservation of principal.
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 (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 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. 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. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded. 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 Directors.
The Board of Directors is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Legg Mason North American Fund Valuation Committee (the “Valuation Committee”). The Valuation Committee, pursuant to the policies adopted by the Board of Directors, is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Board of Directors. 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 Directors, 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 Directors 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.
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:
Notes to schedule of investments (unaudited) (continued)
· 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 |
|
OTHER |
|
SIGNIFICANT |
|
TOTAL |
| |||
|
Municipal bonds† |
|
— |
|
$ |
850,394,845 |
|
— |
|
$ |
850,394,845 |
| |
|
Short-term investments† |
|
— |
|
11,450,000 |
|
— |
|
11,450,000 |
| |||
|
Total investments |
|
— |
|
$ |
861,844,845 |
|
— |
|
$ |
861,844,845 |
| |
|
Other financial instruments: |
|
|
|
|
|
|
|
|
| |||
|
Futures contracts |
|
$ |
624,684 |
|
— |
|
— |
|
$ |
624,684 |
| |
|
Total |
|
$ |
624,684 |
|
$ |
861,844,845 |
|
— |
|
$ |
862,469,529 |
|
†See Schedule of Investments for additional detailed categorizations.
(b) Futures contracts. The Fund uses futures contracts generally to gain exposure to, or hedge against, changes in interest rates or gain exposure to, or hedge against, changes in certain asset classes. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.
Upon entering into a futures contract, the Fund is required to deposit cash or cash equivalents with a broker in an amount equal to a certain percentage of the contract amount. This is known as the ‘‘initial margin’’ and subsequent payments (‘‘variation margin’’) are made or received by the Fund each day, depending on the daily fluctuation in the value of the contract.
Futures contracts involve, to varying degrees, risk of loss. In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid secondary market.
(c) Security transactions. Security transactions are accounted for on a trade date basis.
2. Investments
At February 28, 2013, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:
|
Gross unrealized appreciation |
|
$ |
110,069,883 |
|
|
Gross unrealized depreciation |
|
(971,544 |
) | |
|
Net unrealized appreciation |
|
$ |
109,098,339 |
|
At February 28, 2013, the Fund had the following open futures contracts:
|
|
|
NUMBER OF |
|
EXPIRATION |
|
BASIS |
|
MARKET |
|
UNREALIZED |
| |||
|
Contracts to Sell: |
|
|
|
|
|
|
|
|
|
|
| |||
|
U.S. Treasury 30-Year Bonds |
|
232 |
|
3/13 |
|
$ |
34,329,934 |
|
$ |
33,705,250 |
|
$ |
624,684 |
|
Notes to schedule of investments (unaudited) (continued)
3. Derivative instruments and hedging activities
GAAP requires enhanced disclosure about an entity’s derivative and hedging activities.
The following is a summary of the Fund’s derivative instruments categorized by risk exposure at February 28, 2013.
|
|
|
Futures Contracts |
| |
|
Primary Underlying |
|
Unrealized Appreciation |
| |
|
Interest Rate Risk |
|
$ |
624,684 |
|
During the period ended February 28, 2013, the volume of derivative activity for the Fund was as follows:
|
|
|
Average |
| |
|
Futures contracts (to sell) |
|
$ |
30,658,338 |
|
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 Managed Municipals Fund Inc.
|
By |
/s/ R. Jay Gerken |
|
|
|
R. Jay Gerken | |
|
|
Chief Executive Officer | |
Date: April 25, 2013
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
|
By |
/s/ R. Jay Gerken |
|
|
|
R. Jay Gerken | |
|
|
Chief Executive Officer | |
Date: April 25, 2013
|
By |
/s/ Richard F. Sennett |
|
|
|
Richard F. Sennett | |
|
|
Principal Financial Officer | |
Date: April 25, 2013