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, 49th Floor, New York, NY |
|
10018 | ||||||
|
(Address of principal executive offices) |
|
(Zip code) | ||||||
|
| ||||||||
|
Robert I. Frenkel, Esq. Legg Mason & Co., LLC 100 First Stamford Place Stamford, CT 06902 | ||||||||
|
(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, 2012 |
| ||||||
ITEM 1. SCHEDULE OF INVESTMENTS.
WESTERN ASSET INTERMEDIATE MUNI FUND INC.
FORM N-Q
AUGUST 31, 2012
WESTERN ASSET INTERMEDIATE MUNI FUND INC.
Schedule of investments (unaudited)
August 31, 2012
|
SECURITY |
|
RATE |
|
MATURITY |
|
FACE |
|
VALUE |
| ||
|
MUNICIPAL BONDS — 131.2% |
|
|
|
|
|
|
|
|
| ||
|
Alaska — 0.4% |
|
|
|
|
|
|
|
|
| ||
|
Anchorage, AK, GO, Refunding, FGIC |
|
6.000% |
|
10/1/14 |
|
$ |
500,000 |
|
$ |
552,270 |
|
|
Arizona — 3.1% |
|
|
|
|
|
|
|
|
| ||
|
Pinal County, AZ, Electric District No. 3 |
|
4.000% |
|
7/1/23 |
|
1,000,000 |
|
1,051,580 |
| ||
|
Pinal County, AZ, Electric District No. 3 |
|
5.000% |
|
7/1/24 |
|
1,760,000 |
|
1,980,088 |
| ||
|
Pinal County, AZ, Electric District No. 3 |
|
5.000% |
|
7/1/25 |
|
1,280,000 |
|
1,431,770 |
| ||
|
Total Arizona |
|
|
|
|
|
|
|
4,463,438 |
| ||
|
California — 10.4% |
|
|
|
|
|
|
|
|
| ||
|
California Statewide CDA Revenue: |
|
|
|
|
|
|
|
|
| ||
|
Lodi Memorial Hospital, CMI |
|
5.000% |
|
12/1/22 |
|
2,000,000 |
|
2,175,200 |
| ||
|
Proposition 1A Receivables Program |
|
5.000% |
|
6/15/13 |
|
2,000,000 |
|
2,072,060 |
| ||
|
Los Angeles, CA, COP, Hollywood Presbyterian Medical Center, INDLC |
|
9.625% |
|
7/1/13 |
|
185,000 |
|
199,010 |
(a) | ||
|
M-S-R Energy Authority, CA, Gas Revenue |
|
6.125% |
|
11/1/29 |
|
3,000,000 |
|
3,558,240 |
| ||
|
Modesto, CA, Irrigation District Electric Revenue |
|
5.000% |
|
7/1/24 |
|
4,130,000 |
|
4,870,880 |
| ||
|
Modesto, CA, Irrigation District Electric Revenue |
|
5.000% |
|
7/1/25 |
|
2,000,000 |
|
2,341,660 |
| ||
|
San Francisco, CA, Airport Improvement Corp., Lease Revenue, United Airlines Inc. |
|
8.000% |
|
7/1/13 |
|
60,000 |
|
63,773 |
(a) | ||
|
Total California |
|
|
|
|
|
|
|
15,280,823 |
| ||
|
Colorado — 5.4% |
|
|
|
|
|
|
|
|
| ||
|
Colorado Educational & Cultural Facilities Authority Revenue Charter School: |
|
|
|
|
|
|
|
|
| ||
|
Bromley School Project, XLCA |
|
5.125% |
|
9/15/20 |
|
1,155,000 |
|
1,212,819 |
| ||
|
Refunding & Improvement, University Lab School, XLCA |
|
5.250% |
|
6/1/24 |
|
1,350,000 |
|
1,379,768 |
| ||
|
E-470 Public Highway Authority Revenue, CO |
|
5.250% |
|
9/1/25 |
|
2,000,000 |
|
2,201,020 |
| ||
|
Public Authority for Colorado Energy, Natural Gas Purchase Revenue |
|
6.125% |
|
11/15/23 |
|
2,000,000 |
|
2,333,040 |
| ||
|
SBC Metropolitan District, CO, GO, ACA |
|
5.000% |
|
12/1/25 |
|
750,000 |
|
764,520 |
| ||
|
Total Colorado |
|
|
|
|
|
|
|
7,891,167 |
| ||
|
Connecticut — 3.1% |
|
|
|
|
|
|
|
|
| ||
|
Connecticut State HEFA Revenue, Bristol Hospital |
|
5.500% |
|
7/1/21 |
|
1,845,000 |
|
1,865,000 |
| ||
|
Connecticut State, Development Authority PCR, Connecticut Light & Power Co. Project |
|
4.375% |
|
9/1/28 |
|
2,500,000 |
|
2,707,500 |
| ||
|
Total Connecticut |
|
|
|
|
|
|
|
4,572,500 |
| ||
|
Florida — 8.2% |
|
|
|
|
|
|
|
|
| ||
|
Citizens Property Insurance Corp., FL |
|
5.000% |
|
6/1/16 |
|
5,000,000 |
|
5,610,150 |
| ||
|
Jacksonville, FL, Sales Tax Revenue, Better Jacksonville |
|
5.000% |
|
10/1/30 |
|
1,500,000 |
|
1,716,930 |
| ||
|
Miami-Dade County, FL, School Board, COP |
|
5.000% |
|
2/1/24 |
|
2,000,000 |
|
2,258,720 |
| ||
|
Old Palm Community Development District, FL, Palm Beach Gardens |
|
5.375% |
|
5/1/14 |
|
890,000 |
|
879,489 |
| ||
|
Orange County, FL, Health Facilities Authority Revenue, Hospital Adventist Health Systems |
|
6.250% |
|
11/15/24 |
|
1,500,000 |
|
1,517,175 |
(b) | ||
|
Total Florida |
|
|
|
|
|
|
|
11,982,464 |
| ||
|
Georgia — 7.5% |
|
|
|
|
|
|
|
|
| ||
|
Athens, GA, Housing Authority Student Housing Lease Revenue, University of Georgia East Campus, AMBAC |
|
5.250% |
|
12/1/23 |
|
970,000 |
|
981,620 |
(b) | ||
|
Atlanta, GA, Water & Wastewater Revenue |
|
6.000% |
|
11/1/23 |
|
2,000,000 |
|
2,520,000 |
| ||
|
DeKalb Private Hospital Authority Revenue, GA, Anticipation CTFS, Children’s Health Care of Atlanta Inc. |
|
5.000% |
|
11/15/29 |
|
2,000,000 |
|
2,214,640 |
| ||
See Notes to Schedule of Investments.
WESTERN ASSET INTERMEDIATE MUNI FUND INC.
Schedule of investments (unaudited) (cont’d)
August 31, 2012
|
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 |
|
$ |
1,171,610 |
|
|
Georgia Municipal Electric Authority, Power Revenue, Refunding, AGM |
|
5.000% |
|
1/1/18 |
|
3,000,000 |
|
3,043,980 |
| ||
|
Griffin, GA, Combined Public Utilities Revenue, Refunding & Improvement, AMBAC |
|
5.000% |
|
1/1/21 |
|
1,000,000 |
|
1,027,360 |
| ||
|
Total Georgia |
|
|
|
|
|
|
|
10,959,210 |
| ||
|
Illinois — 2.8% |
|
|
|
|
|
|
|
|
| ||
|
Chicago, IL, O’Hare International Airport Revenue, Refunding Bonds, Lien A-2, AGM |
|
5.750% |
|
1/1/19 |
|
1,500,000 |
|
1,580,910 |
(c) | ||
|
Glendale Heights, IL, Hospital Revenue, Refunding Glendale Heights Project |
|
7.100% |
|
12/1/15 |
|
555,000 |
|
620,046 |
(a) | ||
|
Illinois Development Finance Authority, Chicago Charter School Foundation Project A |
|
5.250% |
|
12/1/12 |
|
80,000 |
|
80,949 |
(a) | ||
|
Illinois Finance Authority Revenue, Memorial Health System |
|
5.250% |
|
4/1/29 |
|
1,670,000 |
|
1,839,121 |
| ||
|
Total Illinois |
|
|
|
|
|
|
|
4,121,026 |
| ||
|
Indiana — 3.8% |
|
|
|
|
|
|
|
|
| ||
|
Indiana State Finance Authority, Environmental Revenue, U.S. Steel Corp. |
|
6.000% |
|
12/1/19 |
|
1,000,000 |
|
1,071,910 |
| ||
|
Indianapolis, IN, Thermal Energy System, Multi-Mode |
|
5.000% |
|
10/1/23 |
|
4,000,000 |
|
4,504,640 |
(d) | ||
|
Total Indiana |
|
|
|
|
|
|
|
5,576,550 |
| ||
|
Iowa — 0.1% |
|
|
|
|
|
|
|
|
| ||
|
Muscatine, IA, Electric Revenue |
|
9.700% |
|
1/1/13 |
|
165,000 |
|
169,970 |
(a) | ||
|
Kansas — 1.7% |
|
|
|
|
|
|
|
|
| ||
|
Burlington, KS, Environmental Improvement Revenue, Kansas City Power & Light |
|
5.250% |
|
4/1/13 |
|
2,500,000 |
|
2,548,900 |
(e) | ||
|
Maryland — 0.1% |
|
|
|
|
|
|
|
|
| ||
|
Maryland State Health & Higher EFA Revenue, Refunding Mercy Medical Center, AGM |
|
6.500% |
|
7/1/13 |
|
195,000 |
|
202,890 |
| ||
|
Massachusetts — 0.3% |
|
|
|
|
|
|
|
|
| ||
|
Massachusetts State DFA Revenue, Curry College, ACA |
|
6.000% |
|
3/1/20 |
|
395,000 |
|
395,739 |
| ||
|
Michigan — 12.1% |
|
|
|
|
|
|
|
|
| ||
|
Detroit, MI, Water Supply System Revenue, Senior Lien |
|
5.250% |
|
7/1/26 |
|
5,000,000 |
|
5,429,400 |
| ||
|
Michigan State Housing Development Authority Rental Housing Revenue |
|
5.250% |
|
10/1/24 |
|
2,640,000 |
|
2,806,109 |
| ||
|
Michigan State, Hospital Finance Authority Revenue: |
|
|
|
|
|
|
|
|
| ||
|
Oakwood Obligated Group |
|
5.500% |
|
11/1/18 |
|
1,000,000 |
|
1,060,630 |
(b) | ||
|
Refunding, Hospital Sparrow Obligated |
|
5.000% |
|
11/15/12 |
|
500,000 |
|
504,205 |
| ||
|
Refunding, Hospital Sparrow Obligated |
|
5.000% |
|
11/15/14 |
|
1,190,000 |
|
1,295,636 |
| ||
|
Walled Lake, MI, Consolidated School District, NATL |
|
5.000% |
|
5/1/22 |
|
1,000,000 |
|
1,065,080 |
| ||
|
Wayne County, MI, Airport Authority Revenue, Detroit Metropolitan Airport |
|
5.000% |
|
12/1/16 |
|
5,000,000 |
|
5,546,050 |
(c) | ||
|
Total Michigan |
|
|
|
|
|
|
|
17,707,110 |
| ||
|
Missouri — 1.8% |
|
|
|
|
|
|
|
|
| ||
|
Missouri State Environmental Improvement & Energy Resources Authority, KC Power & Light Co. Project |
|
4.900% |
|
7/1/13 |
|
2,500,000 |
|
2,562,700 |
(c)(e) | ||
See Notes to Schedule of Investments.
WESTERN ASSET INTERMEDIATE MUNI FUND INC.
Schedule of investments (unaudited) (cont’d)
August 31, 2012
|
SECURITY |
|
RATE |
|
MATURITY |
|
FACE |
|
VALUE |
| ||
|
Nevada — 3.0% |
|
|
|
|
|
|
|
|
| ||
|
Humboldt County, NV, PCR, Idaho Power Co. Project |
|
5.150% |
|
12/1/24 |
|
$ |
4,000,000 |
|
$ |
4,438,120 |
|
|
New Hampshire — 4.7% |
|
|
|
|
|
|
|
|
| ||
|
New Hampshire HEFA Revenue, Healthcare Systems Covenant Health |
|
5.000% |
|
7/1/28 |
|
6,400,000 |
|
6,876,736 |
| ||
|
New Jersey — 10.4% |
|
|
|
|
|
|
|
|
| ||
|
New Jersey State EDA Revenue, Continental Airlines Inc. Project |
|
4.875% |
|
9/15/19 |
|
2,000,000 |
|
2,036,280 |
(c) | ||
|
New Jersey State EFA Revenue, University of Medicine & Dentistry |
|
7.125% |
|
12/1/23 |
|
2,000,000 |
|
2,496,900 |
| ||
|
New Jersey State Higher Education Assistance Authority, Student Loan Revenue |
|
5.375% |
|
6/1/24 |
|
4,000,000 |
|
4,523,240 |
| ||
|
New Jersey State Higher Education Assistance Authority, Student Loan Revenue, AGC |
|
5.875% |
|
6/1/21 |
|
1,220,000 |
|
1,385,615 |
(c) | ||
|
New Jersey State Transportation Trust Fund Authority Revenue |
|
5.250% |
|
6/15/23 |
|
4,000,000 |
|
4,833,720 |
| ||
|
Ringwood Borough, NJ, Sewer Authority Special Obligation |
|
9.875% |
|
7/1/13 |
|
25,000 |
|
26,962 |
(a) | ||
|
Total New Jersey |
|
|
|
|
|
|
|
15,302,717 |
| ||
|
New Mexico — 2.0% |
|
|
|
|
|
|
|
|
| ||
|
Bernalillo County, NM, Gross Receipts Tax Revenue, AMBAC |
|
5.250% |
|
10/1/18 |
|
1,100,000 |
|
1,349,898 |
| ||
|
New Mexico Finance Authority Revenue, Subordinated Lien, Public Project Revolving Fund, NATL |
|
5.000% |
|
6/15/19 |
|
1,415,000 |
|
1,607,794 |
| ||
|
Total New Mexico |
|
|
|
|
|
|
|
2,957,692 |
| ||
|
New York — 7.9% |
|
|
|
|
|
|
|
|
| ||
|
New York State Dormitory Authority, New York & Presbyterian Hospital, AGM |
|
5.250% |
|
2/15/24 |
|
2,975,000 |
|
3,161,146 |
| ||
|
New York State Thruway Authority Highway & Bridge Trust Fund Revenue, AMBAC |
|
5.000% |
|
4/1/21 |
|
2,000,000 |
|
2,256,780 |
(f) | ||
|
New York, NY, GO |
|
5.000% |
|
8/1/21 |
|
5,000,000 |
|
6,208,400 |
| ||
|
Total New York |
|
|
|
|
|
|
|
11,626,326 |
| ||
|
North Carolina — 1.4% |
|
|
|
|
|
|
|
|
| ||
|
North Carolina Eastern Municipal Power Agency, Power Systems Revenue |
|
5.000% |
|
1/1/26 |
|
1,750,000 |
|
1,983,432 |
| ||
|
Ohio — 6.4% |
|
|
|
|
|
|
|
|
| ||
|
American Municipal Power-Ohio Inc., Electricity Purchase Revenue |
|
5.000% |
|
2/1/13 |
|
2,000,000 |
|
2,030,820 |
| ||
|
Kettering, OH, City School District, School Improvement, AGM |
|
5.000% |
|
12/1/19 |
|
1,000,000 |
|
1,067,070 |
| ||
|
Ohio State Air Quality Development Authority Revenue, FirstEnergy Generation Corp. |
|
5.625% |
|
6/1/18 |
|
1,000,000 |
|
1,151,560 |
| ||
|
Ohio State Water Development Authority, Pollution Control Facilities Revenue, FirstEnergy Nuclear Generation Corp. |
|
3.375% |
|
7/1/15 |
|
5,000,000 |
|
5,194,450 |
(e) | ||
|
Total Ohio |
|
|
|
|
|
|
|
9,443,900 |
| ||
|
Oklahoma — 2.0% |
|
|
|
|
|
|
|
|
| ||
|
Grand River Dam Authority, OK, Revenue |
|
5.000% |
|
6/1/30 |
|
2,500,000 |
|
2,887,600 |
| ||
|
Oregon — 0.4% |
|
|
|
|
|
|
|
|
| ||
|
Portland, OR, River District Urban Renewal & Redevelopment |
|
5.000% |
|
6/15/28 |
|
570,000 |
|
653,967 |
| ||
See Notes to Schedule of Investments.
WESTERN ASSET INTERMEDIATE MUNI FUND INC.
Schedule of investments (unaudited) (cont’d)
August 31, 2012
|
SECURITY |
|
RATE |
|
MATURITY |
|
FACE |
|
VALUE |
| ||
|
Pennsylvania — 7.3% |
|
|
|
|
|
|
|
|
| ||
|
Montgomery County, PA, IDA Revenue, New Regional Medical Center Project, FHA |
|
5.000% |
|
8/1/24 |
|
$ |
2,000,000 |
|
$ |
2,309,940 |
|
|
Northampton County, PA, IDA Revenue, Mortgage Moravian Hall Square Project, Radian |
|
5.500% |
|
7/1/19 |
|
1,365,000 |
|
1,378,595 |
| ||
|
Pennsylvania State Public School Building Authority Lease Revenue, Philadelphia School District Project, AGM |
|
5.000% |
|
6/1/27 |
|
2,000,000 |
|
2,322,920 |
| ||
|
Philadelphia, PA, Gas Works Revenue, 7th General Ordinance, AMBAC |
|
5.000% |
|
10/1/17 |
|
1,000,000 |
|
1,155,410 |
| ||
|
Philadelphia, PA, Water & Wastewater, FGIC |
|
5.250% |
|
11/1/14 |
|
2,000,000 |
|
2,013,540 |
| ||
|
Pittsburgh, PA, School District GO, AGM |
|
5.375% |
|
9/1/16 |
|
1,350,000 |
|
1,569,308 |
| ||
|
Total Pennsylvania |
|
|
|
|
|
|
|
10,749,713 |
| ||
|
Puerto Rico — 5.1% |
|
|
|
|
|
|
|
|
| ||
|
Puerto Rico Commonwealth Government Development Bank, NATL |
|
4.750% |
|
12/1/15 |
|
2,000,000 |
|
2,037,700 |
| ||
|
Puerto Rico Commonwealth, GO, Public Improvement |
|
5.500% |
|
7/1/26 |
|
5,000,000 |
|
5,476,150 |
| ||
|
Total Puerto Rico |
|
|
|
|
|
|
|
7,513,850 |
| ||
|
Rhode Island — 0.6% |
|
|
|
|
|
|
|
|
| ||
|
Central Falls, RI, GO, Radian |
|
5.875% |
|
5/15/15 |
|
1,000,000 |
|
909,250 |
| ||
|
South Carolina — 0.8% |
|
|
|
|
|
|
|
|
| ||
|
Greenville County, SC, School District Installment Purchase, Revenue, Refunding, Building Equity |
|
6.000% |
|
12/1/21 |
|
1,100,000 |
|
1,126,125 |
(b) | ||
|
Tennessee — 5.3% |
|
|
|
|
|
|
|
|
| ||
|
Tennessee Energy Acquisition Corp., Gas Revenue |
|
5.250% |
|
9/1/20 |
|
2,030,000 |
|
2,275,630 |
| ||
|
Tennessee Energy Acquisition Corp., Gas Revenue |
|
5.250% |
|
9/1/23 |
|
4,940,000 |
|
5,466,060 |
| ||
|
Total Tennessee |
|
|
|
|
|
|
|
7,741,690 |
| ||
|
Texas — 5.8% |
|
|
|
|
|
|
|
|
| ||
|
Dallas-Fort Worth, TX, International Airport Revenue, Refunding, AGM |
|
5.500% |
|
11/1/20 |
|
1,000,000 |
|
1,073,140 |
(c) | ||
|
El Paso County, TX, Housing Finance Corp., La Plaza Apartments, Subordinated |
|
8.000% |
|
7/1/30 |
|
235,000 |
|
235,012 |
| ||
|
El Paso County, TX, Housing Finance Corp., MFH Revenue, American Village Communities |
|
6.250% |
|
12/1/24 |
|
360,000 |
|
360,871 |
| ||
|
North Texas Tollway Authority Revenue, NATL |
|
5.125% |
|
1/1/28 |
|
2,000,000 |
|
2,240,860 |
| ||
|
Sabine River Authority, Texas PCR, Southwestern Electric Power Co., NATL |
|
4.950% |
|
3/1/18 |
|
3,000,000 |
|
3,387,750 |
| ||
|
Southwest Higher Education Authority Inc., Southern Methodist University Project, AMBAC |
|
5.500% |
|
10/1/19 |
|
1,000,000 |
|
1,003,700 |
(b) | ||
|
Texas State Department Housing Community Affairs Home Mortgage Revenue, RIBS, GNMA/FNMA/FHLMC-Collateralized |
|
13.303% |
|
7/2/24 |
|
125,000 |
|
137,232 |
(c)(d) | ||
|
Total Texas |
|
|
|
|
|
|
|
8,438,565 |
| ||
|
Virginia — 4.8% |
|
|
|
|
|
|
|
|
| ||
|
Pittsylvania County, VA, GO |
|
5.500% |
|
2/1/22 |
|
540,000 |
|
643,739 |
| ||
|
Pittsylvania County, VA, GO |
|
5.500% |
|
2/1/23 |
|
1,030,000 |
|
1,221,127 |
| ||
|
Pittsylvania County, VA, GO |
|
5.600% |
|
2/1/24 |
|
2,490,000 |
|
2,950,501 |
| ||
|
Virginia State Small Business Financing Authority Revenue, Elizabeth River Crossings OpCo LLC Project |
|
5.000% |
|
1/1/27 |
|
2,000,000 |
|
2,169,440 |
(c) | ||
|
Total Virginia |
|
|
|
|
|
|
|
6,984,807 |
| ||
See Notes to Schedule of Investments.
WESTERN ASSET INTERMEDIATE MUNI FUND INC.
Schedule of investments (unaudited) (cont’d)
August 31, 2012
|
SECURITY |
|
RATE |
|
MATURITY |
|
FACE |
|
VALUE |
| ||
|
Washington — 0.8% |
|
|
|
|
|
|
|
|
| ||
|
Washington State Health Care Facilities Authority Revenue, Multicare Health System |
|
5.750% |
|
8/15/29 |
|
$ |
1,000,000 |
|
$ |
1,178,700 |
|
|
Wisconsin — 1.7% |
|
|
|
|
|
|
|
|
| ||
|
La Crosse, WI, Resource Recovery Revenue, Refunding Bonds, Northern States Power Co. Project |
|
6.000% |
|
11/1/21 |
|
2,000,000 |
|
2,418,220 |
(c) | ||
|
TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS (Cost — $176,760,081) |
|
192,218,167 |
| ||||||||
|
SHORT-TERM INVESTMENTS — 1.3% |
|
|
|
|
|
|
|
|
| ||
|
North Carolina — 0.1% |
|
|
|
|
|
|
|
|
| ||
|
Charlotte-Mecklenburg Hospital Authority, NC, Health Care System Revenue, AGM, SPA-Dexia Credit Local |
|
0.220% |
|
1/15/43 |
|
100,000 |
|
100,000 |
(g)(h) | ||
|
Texas — 1.2% |
|
|
|
|
|
|
|
|
| ||
|
Rockwall, TX, ISD, GO, School Building, PSFG, SPA-Dexia Credit Local |
|
0.220% |
|
8/1/37 |
|
1,790,000 |
|
1,790,000 |
(g)(h) | ||
|
TOTAL SHORT-TERM INVESTMENTS (Cost — $1,890,000) |
|
|
|
1,890,000 |
| ||||||
|
TOTAL INVESTMENTS — 132.5% (Cost — $178,650,081#) |
|
|
|
194,108,167 |
| ||||||
|
Auction Rate Cumulative Preferred Stock, at Liquidation Value — (34.1)% |
|
|
|
(50,000,000) |
| ||||||
|
Other Assets in Excess of Liabilities — 1.6% |
|
|
|
|
|
|
|
2,397,703 |
| ||
|
TOTAL NET ASSETS — 100.0% |
|
|
|
|
|
|
|
$ |
146,505,870 |
| |
|
(a) |
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. | |
|
(b) |
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. | |
|
(c) |
Income from this issue is considered a preference item for purposes of calculating the alternative minimum tax (“AMT”). | |
|
(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) |
All or a portion of this security is held at the broker as collateral for open futures contracts. | |
|
(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 |
|
|
EDA |
- Economic Development Authority |
|
|
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 |
|
|
ISD |
- Independent School District |
|
|
MFH |
- Multi-Family Housing |
|
|
NATL |
- National Public Finance Guarantee Corporation - Insured Bonds |
See Notes to Schedule of Investments.
WESTERN ASSET INTERMEDIATE MUNI FUND INC.
Schedule of investments (unaudited) (cont’d)
August 31, 2012
|
|
PCR |
- Pollution Control Revenue |
|
|
PSFG |
- Permanent School Fund Guaranty |
|
|
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 |
|
18.7 |
% |
|
Power |
|
17.9 |
|
|
Health Care |
|
12.9 |
|
|
Transportation |
|
10.2 |
|
|
Local General Obligation |
|
9.1 |
|
|
Special Tax Obligation |
|
5.3 |
|
|
Education |
|
5.2 |
|
|
Water & Sewer |
|
5.1 |
|
|
Leasing |
|
3.7 |
|
|
Pre-Refunded/Escrowed to Maturity |
|
3.5 |
|
|
State General Obligation |
|
2.8 |
|
|
Housing |
|
1.8 |
|
|
Other |
|
1.5 |
|
|
Solid Waste/Resource Recovery |
|
1.3 |
|
|
Short-Term Investments |
|
1.0 |
|
|
|
|
100.0 |
% |
† As a percentage of total investments. Please note that Fund holdings are as of August 31, 2012 and are subject to change.
Ratings Table*
Standard & Poor’s/Moody’s/Fitch**
|
AAA/Aaa |
|
1.1 |
% |
|
AA/Aa |
|
29.9 |
|
|
A |
|
49.1 |
|
|
BBB/Baa |
|
13.4 |
|
|
BB/Ba |
|
0.5 |
|
|
B |
|
1.1 |
|
|
CCC/Caa |
|
0.5 |
|
|
A-1/VMIG 1 |
|
1.0 |
|
|
NR |
|
3.4 |
|
|
|
|
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 Notes to Schedule of Investments.
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 (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 | |||||||||||
|
|
|
QUOTED PRICES |
|
OTHER SIGNIFICANT |
|
SIGNIFICANT UNOBSERVABLE |
|
|
| ||
|
DESCRIPTION |
|
(LEVEL 1) |
|
(LEVEL 2) |
|
(LEVEL 3) |
|
TOTAL |
| ||
|
Municipal bonds† |
|
— |
|
$ |
192,218,167 |
|
— |
|
$ |
192,218,167 |
|
|
Short-term investments† |
|
— |
|
1,890,000 |
|
— |
|
1,890,000 |
| ||
|
Total investments |
|
— |
|
$ |
194,108,167 |
|
— |
|
$ |
194,108,167 |
|
|
LIABILITIES | |||||||||||
|
|
|
QUOTED PRICES |
|
OTHER |
|
SIGNIFICANT |
|
|
| ||
|
DESCRIPTION |
|
(LEVEL 1) |
|
(LEVEL 2) |
|
(LEVEL 3) |
|
TOTAL |
| ||
|
Other financial instruments: |
|
|
|
|
|
|
|
|
| ||
|
Futures contracts |
|
$ |
13,393 |
|
— |
|
— |
|
$ |
13,393 |
|
†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 August 31, 2012, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:
|
Gross unrealized appreciation |
|
$ |
15,615,310 |
|
|
Gross unrealized depreciation |
|
(157,224 |
) | |
|
Net unrealized appreciation |
|
$ |
15,458,086 |
|
Notes to schedule of investments (unaudited) (continued)
At August 31, 2012, the Fund had the following open futures contracts:
|
|
|
NUMBER OF |
|
EXPIRATION |
|
BASIS |
|
MARKET |
|
UNREALIZED |
| |||
|
Contracts to Sell: |
|
|
|
|
|
|
|
|
|
|
| |||
|
U.S. Treasury 30-Year Bonds |
|
56 |
|
9/12 |
|
$ |
8,414,607 |
|
$ |
8,428,000 |
|
$ |
(13,393 |
) |
3. Derivative instruments and hedging activities
Financial Accounting Standards Board Codification Topic 815 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 August 31, 2012.
|
Primary Underlying |
|
Futures Contracts |
| |
|
Interest Rate Risk |
|
$ |
(13,393 |
) |
During the period ended August 31, 2012, the volume of derivative activity for the Fund was as follows:
|
|
|
Average market value |
| |
|
Futures contracts (to sell) |
|
$ |
5,136,944 |
|
4. Recent accounting pronouncement
In May 2011, the Financial Accounting Standards Board issued Accounting Standards Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs (“ASU No. 2011-04”). ASU No. 2011-04 establishes common requirements for measuring fair value and for disclosing information about fair value measurements. ASU No. 2011-04 is effective during interim and annual periods beginning after December 15, 2011. Management has evaluated ASU No. 2011-04 and concluded that it does not materially impact the financial statement amounts; however, as required, additional disclosure has been included about fair value measurement.
|
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.
|
By |
/s/ R. Jay Gerken |
|
|
|
R. Jay Gerken |
|
|
|
Chief Executive Officer |
|
Date: October 26, 2012
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: October 26, 2012
|
By |
/s/ Richard F. Sennett |
|
|
|
Richard F. Sennett |
|
|
|
Principal Financial Officer |
|
Date: October 26, 2012