Company: WIA
Filing Date: 2025-01-28
Form Type: N-CSR
Source: 0001133228-25-000566
Chunk: 72

Company: WESTERN ASSET INFLATION-LINKED INCOME FUND
Filing Date: 2025-01-28
Form: N-CSR
Chunk 72
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 on a U.S. securities exchange or the NASDAQ stock market, the following guidelines are used, which are premised on the existence
of a sound corporate governance and disclosure framework. These guidelines, however, may not be appropriate under some circumstances
for foreign issuers and therefore apply only where applicable.

| V. | Environmental,                        
 Social and Governance (“ESG”) Matters |

Western Asset incorporates ESG considerations,
among other relevant risks, as part of the overall process where appropriate. The Firm seeks to identify and consider material risks
to the investment thesis, including material risks presented by ESG factors. While Western Asset is primarily a fixed income manager,
opportunities to vote proxies are considered on the investment merits of the instruments and strategies involved.

As a general proposition, Western Asset votes
to encourage disclosure of information material to their business. This principle extends to ESG matters. What qualifies as “material”
can vary, so votes are cast on a case-by-case basis but consistent with the overarching principle. Western Asset recognizes that objective
standards and criteria may not be available or universally agreed and that there may be different views and subjective analysis regarding
factors and their significance.

Targeted environmental or social issues that are
the subject of a proxy vote will be considered on a case-by-case basis. Constructive proposals that seek to advance the health of the
issuer and the prospect for risk-adjusted returns to Western Assets clients are viewed more favorably than proposals that advance a single
issue or limit the ability of management to meet its operating objectives.

Retirement Accounts

For accounts subject to ERISA, as well as other
retirement accounts, Western Asset is presumed to have the responsibility to vote proxies for the client. The Department of Labor has
issued a bulletin that states that investment managers have the responsibility to vote proxies on behalf of Retirement Accounts unless
the authority to vote proxies has been specifically reserved to another named fiduciary. Furthermore, unless Western Asset is expressly
precluded from voting the proxies, the Department of Labor has determined that the responsibility remains with the investment manager.

In order to comply with the Department of Labor’s
position, Western Asset will be presumed to have the obligation to vote proxies for its retirement accounts unless Western Asset has
obtained a specific written instruction indicating that: (a) the right to vote proxies has been reserved to a named fiduciary of the
client, and (b) Western Asset is precluded from voting proxies on behalf of the client. If Western Asset does not receive