# EDGAR Filing Document

**Accession Number:** 0000764624
**File Stem:** 0001193125-23-048674
**Filing Date:** 2023-2
**Character Count:** 319818
**Document Hash:** 226185b748a416ca896f57e698532687
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-23-048674.hdr.sgml**: 20230224

**ACCESSION NUMBER**: 0001193125-23-048674

**CONFORMED SUBMISSION TYPE**: N-CSR

**PUBLIC DOCUMENT COUNT**: 10

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230224

**DATE AS OF CHANGE**: 20230224

**EFFECTIVENESS DATE**: 20230224

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** LEGG MASON PARTNERS INCOME TRUST
- **CENTRAL INDEX KEY:** 0000764624
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 0731

**FILING VALUES:**
- **FORM TYPE:** N-CSR
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-04254
- **FILM NUMBER:** 23666528

**BUSINESS ADDRESS:**
- **STREET 1:** LEGG MASON & CO., LLC
- **STREET 2:** 620 EIGHTH AVENUE, 49TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10018
- **BUSINESS PHONE:** 1-877-721-1926

**MAIL ADDRESS:**
- **STREET 1:** LEGG MASON & CO., LLC
- **STREET 2:** 620 EIGHTH AVENUE, 49TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10018

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** LEGG MASON PARTNERS INCOME FUNDS
- **DATE OF NAME CHANGE:** 20060407

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SMITH BARNEY INCOME FUNDS
- **DATE OF NAME CHANGE:** 19941228

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SMITH BARNEY SHEARSON INCOME FUNDS
- **DATE OF NAME CHANGE:** 19931015

## Series and Classes Contracts Data

### Western Asset Short-Term Bond Fund (Series ID: S000016639)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000046471 | Class A      | SBSTX           |
| C000046473 | Class C1     | SSTLX           |
| C000046474 | Class I      | SBSYX           |
| C000062459 | Class R      | LWARX           |
| C000088507 | Class C      | LWSOX           |
| C000117030 | Class IS     | LWSTX           |
| C000118877 | Class FI     |  |

##### [**Table of Contents**](#toc)

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**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

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**FORM N-CSR** 

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**CERTIFIED SHAREHOLDER REPORT OF REGISTERED** 

**MANAGEMENT INVESTMENT COMPANIES** 

**Investment Company Act file number 811-04254** 

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## Legg Mason Partners Income Trust
**(Exact name of registrant as specified in charter)** 

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**620 Eighth Avenue, 47<sup>th</sup> Floor,** 

**New York, NY 10018** 

**(Address of principal executive offices) (Zip code)** 

**Marc A. De Oliveira** 

**Franklin Templeton** 

**100 First Stamford Place** 

**Stamford, CT 06902** 

**(Name and address of agent for service)** 

------

**Registrant's telephone number, including area code: 877-6LM-FUND/656-3863** 

**Date of fiscal year end: December 31** 

**Date of reporting period: December 31, 2022** 

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##### [**Table of Contents**](#toc)
ITEM 1. REPORT TO STOCKHOLDERS.

The **Annual** Report to Stockholders is filed herewith.

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##### [**Table of Contents**](#toc)
![LOGO](g425185westassetlogo.jpg)

<u>Annual Report</u>   <u>December 31, 2022</u>

## WESTERN ASSET

## SHORT-TERM BOND FUND

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![LOGO](g425185g57q58.jpg)

INVESTMENT PRODUCTS: NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

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##### [**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **What's inside** | |
| [Letter from the president](#tx425185_1) | II |
| [Fund overview](#tx425185_2) | 1 |
| [Fund at a glance](#tx425185_3) | 6 |
| [Fund expenses](#tx425185_4) | 7 |
| [Fund performance](#tx425185_5) | 9 |
| [Schedule of investments](#tx425185_6) | 11 |
| [Statement of assets and liabilities](#tx425185_7) | 44 |
| [Statement of operations](#tx425185_8) | 46 |
| [Statements of changes in net assets](#tx425185_9) | 47 |
| [Financial highlights](#tx425185_10) | 48 |
| [Notes to financial statements](#tx425185_11) | 54 |
| [Report of independent registered public accounting firm](#tx425185_12) | 75 |
| [Additional information](#tx425185_13) | 76 |
| [Important tax information](#tx425185_14) | 83 |

---

**Fund objective** 

The Fund seeks current income, preservation of capital and liquidity.

Letter from the president

![LOGO](g425185janetrust_photo.jpg)

**Dear Shareholder,** 

We are pleased to provide the annual report of Western Asset Short-Term Bond Fund for the twelve-month reporting period ended December 31, 2022. Please read on for a detailed look at prevailing economic and market conditions during the Fund's reporting period and to learn how those conditions have affected Fund performance.

As always, we remain committed to providing you with excellent service and a full spectrum of investment choices. We also remain committed to supplementing the support you receive from your financial advisor. One way we accomplish this is through our website, www.franklintempleton.com. Here you can gain immediate access to market and investment information, including:

• Fund prices and performance,

• Market insights and commentaries from our portfolio managers, and

• A host of educational resources.

We look forward to helping you meet your financial goals.

Sincerely,

![LOGO](g425185g12u83.jpg)

Jane Trust, CFA

President and Chief Executive Officer

January 31, 2023

II Western Asset Short-Term Bond Fund

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##### [**Table of Contents**](#toc)
Fund overview

**Q. What is the Fund's investment strategy?** 

**A.** The Fund seeks current income, preservation of capital and liquidity. Under normal market conditions, the Fund invests at least 80% of its assets in "investment grade" fixed income securities. Securities in which the Fund invests include corporate debt securities, bank obligations, mortgage- and asset-backed securities and securities issued by the U.S. government and its agencies and instrumentalities. Investment grade securities are those rated by a rating agency at the time of purchase in one of the top four ratings categories (that is, securities rated in the Baa/BBB categories or above) or, if unrated, securities that we judged to be of comparable quality. The Fund may invest up to 25% of its assets in U.S. dollar denominated securities of non-U.S. issuers.

The Fund is not a money market fund and does not seek to maintain a stable net asset value of $1.00 per share. The Fund may invest in securities of any maturity and normally maintains an average effective maturity of not more than three years.

Instead of, and/or in addition to, investing directly in particular securities, the Fund may use instruments such as derivatives, including options, swaps, interest rate swaps, credit default swaps (including buying and selling credit default swaps and options on credit default swaps), futures contracts, and other synthetic instruments that are intended to provide economic exposure to the securities or the issuer or to be used as a hedging technique.

The Fund may use one or more types of these instruments without limit. These instruments are taken into account when determining compliance with the Fund's 80% policy.

The Fund may also engage in a variety of transactions using derivatives in order to change the investment characteristics of its portfolio (such as shortening or lengthening duration) and for other purposes.

At Western Asset Management Company, LLC ("Western Asset"), the Fund's subadviser, we utilize a fixed income team approach, with decisions derived from interaction among various investment management sector specialists. The sector teams are comprised of Western Asset's senior portfolio management personnel, research analysts and an in-house economist. Under this team approach, management of client fixed income portfolios will reflect a consensus of interdisciplinary views within the Western Asset organization.

**Q. What were the overall market conditions during the Fund's reporting period?** 

**A.** Fixed income markets experienced periods of volatility and fell sharply over the twelve-month reporting period ended December 31, 2022. The market's decline was driven by a number of factors, including elevated and persistent inflation, aggressive Federal Reserve Board (the "Fed") monetary policy tightening, the repercussions from the COVID-19 pandemic and its variants, the weakening global economy, and the war in Ukraine.

Short-term U.S. Treasury yields moved sharply higher as the Fed began to raise interest rates in March 2022 in attempt to rein in inflation. Over the next nine months, the central

Western Asset Short-Term Bond Fund 2022 Annual Report 1

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##### [**Table of Contents**](#toc)
Fund overview (cont'd)

bank hiked rates an additional six times, bringing the federal funds rate to a range between 4.25% and 4.50% — the highest level since 2008. The yield for the two-year Treasury note began the reporting period at 0.73% (the low for the reporting period) and ended the period at 4.41%. The peak of 4.72% occurred on November 7, 2022. The yield for the ten-year Treasury note began the reporting period at 1.52% (the low for the reporting period) and ended the period at 3.88%. The peak of 4.25% occurred on October 24, 2022. All told, the Bloomberg U.S. Aggregate Index<sup>i</sup> returned -13.01% for the twelve months reporting period ended December 31, 2022.

**Q. How did we respond to these changing market conditions?** 

**A.** A number of changes were made to the Fund during the reporting period. We tactically managed the Fund's duration as yields fluctuated. Additionally, we increased the Fund's allocation to investment-grade corporate bonds and agency mortgage-backed securities ("MBS") as their spreads widened. Conversely, in terms of reductions, we trimmed the Fund's exposures to structured products, including non-agency residential mortgage-backed securities and commercial mortgage-backed securities.

The Fund used U.S. Treasury and Eurodollar futures, options and interest rate swaps to manage its duration and yield curve exposure. The use of these instruments in aggregate detracted from performance. Index credit default swaps, which were used to manage the Fund's credit exposures, slightly contributed to results.

**Performance review** 

For the twelve months ended December 31, 2022, Class A shares of Western Asset Short-Term Bond Fund, excluding sales charges, returned -5.01%. The Fund's unmanaged benchmarks, the Bloomberg U.S. Gov/Credit 1-3 Yr. Index<sup>1,ii</sup> and the FTSE Treasury/ Government Sponsored/Credit 1-3 Year Index<sup>iii</sup>, returned -3.69% and -3.73%, respectively, for the same period. The Lipper Short Investment Grade Debt Funds Category Average<sup>iv</sup> returned -4.31% over the same time frame.

<sup>1</sup> Effective November 30, 2022, the Bloomberg U.S. Gov/Credit 1-3 Yr. Index replaced the FTSE Treasury/ Government Sponsored/Credit 1-3 Year Index as the Fund's benchmark

2 Western Asset Short-Term Bond Fund 2022 Annual Report

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##### [**Table of Contents**](#toc)

---

| | | |
|:---|:---|:---|
| **Performance Snapshot as of December 31, 2022**<br> (unaudited) | **Performance Snapshot as of December 31, 2022**<br> (unaudited) | **Performance Snapshot as of December 31, 2022**<br> (unaudited) |
| (excluding sales charges) | 6 months | 12 months |
| Western Asset Short-Term Bond Fund: | Western Asset Short-Term Bond Fund: | Western Asset Short-Term Bond Fund: |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | -0.09% | -5.01% |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C | -0.47% | -6.02% |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C1<sup>2</sup> | -0.21% | -5.29% |
| &nbsp;&nbsp;&nbsp;&nbsp; Class R | -0.55% | -5.64% |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I | 0.05% | -4.75% |
| &nbsp;&nbsp;&nbsp;&nbsp; Class IS | 0.06% | -4.73% |
| FTSE Treasury/Government Sponsored/Credit 1-3 Year Index | -0.61% | -3.73% |
| Bloomberg U.S. Gov/Credit 1-3 Yr. Index | -0.60% | -3.69% |
| Lipper Short Investment Grade Debt Funds Category Average | 0.04% | -4.31% |

---

**The performance shown represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown above. Principal value, investment returns and yields will fluctuate and investors' shares, when redeemed, may be worth more or less than their original cost. To obtain performance data current to the most recent month-end, please visit our website at www.franklintempleton.com.** 

**All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all Fund expenses. Returns have not been adjusted to include sales charges that may apply or the deduction of taxes that a shareholder would pay on Fund distributions. If sales charges were reflected, the performance quoted would be lower. Performance figures for periods shorter than one year represent cumulative figures and are not annualized.** 

**Fund performance figures reflect fee waivers and/or reimbursements without which the performance would have been lower.** 

**The 30-Day SEC Yields for the period ended December 31, 2022 for Class A, Class C, Class C1, Class R, Class I and Class IS shares were 4.08%, 3.47%, 4.01%, 3.97%, 4.45% and 4.42%, respectively. Absent fee waivers and/or expense reimbursements, the 30-Day SEC Yields for Class A, Class R, Class I and Class IS shares would have been 4.01%, 3.96%, 4.11% and 4.36%, respectively. The 30-Day SEC Yield, calculated pursuant to the standard SEC formula, is based on the Fund's investments over an annualized trailing 30-day period, and not on the distributions paid by the Fund, which may differ.** 

**Total Annual Operating Expenses** (unaudited)

**As of the Fund's current prospectus dated May 01, 2022, the gross total annual fund operating expense ratios for Class A, Class C, Class C1, Class R, Class I and Class IS shares were 0.73%, 1.50%, 1.03%, 1.44%, 0.52% and 0.40%, respectively.** 

**Actual expenses may be higher. For example, expenses may be higher than those shown if average net assets decrease. Net assets are more likely to decrease and Fund expense ratios are more likely to increase when markets are volatile.** 

<sup>2</sup> Class C1 shares are not available for purchase by new or existing investors (except for certain retirement plan programs authorized by the Fund's distributor). Class C1 shares continue to be available for dividend reinvestment and incoming exchanges.

Western Asset Short-Term Bond Fund 2022 Annual Report 3

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##### [**Table of Contents**](#toc)
Fund overview (cont'd)

**As a result of expense limitation arrangements, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and expenses, to average net assets will not exceed 0.70% for Class A shares, 1.55% for Class C shares, 1.05% for Class C1 shares, 1.10% for Class R shares, 0.42% for Class I shares and 0.40% for Class IS shares. In addition, the ratio of total annual fund operating expenses for Class IS shares will not exceed the ratio of total annual fund operating expenses for Class I shares. Total annual fund operating expenses after waiving fees and/or reimbursing expenses exceed the expense limitation ("expense cap") for Class A, Class R and Class I shares as a result of acquired fund fees and expenses These expense limitation arrangements cannot be terminated prior to December 31, 2024 without the Board of Trustees' consent. In addition, the manager has agreed to waive the Fund's management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund. This management fee waiver is not subject to the recapture provision discussed below.** 

**The manager is permitted to recapture amounts waived and/or reimbursed to a class within two years after the fiscal year in which the manager earned the fee or incurred the expense if the class' total annual fund operating expenses have fallen to a level below the expense cap in effect at the time the fees were earned or the expenses incurred. In no case will the manager recapture any amount that would result, on any particular business day of the Fund, in the class' total annual fund operating expenses exceeding the expense cap or any other lower limit then in effect.** 

**Q. What were the leading contributors to performance?** 

**A.** The largest contributor to the Fund's relative performance during the reporting period was its yield-curve positioning. In particular, we generally focused on overweights to five-year duration and shorter- term rates rose more than intermediate rates. Additionally, an allocation to high yield corporate bonds slightly contributed to performance, due to favorable issue selection, as their spreads widened.

**Q. What were the leading detractors from performance?** 

**A.** The largest detractor from the Fund's relative performance during the reporting period was its duration positioning. This was a negative for returns as yields rose substantially during the year. Additionally, allocations to structured products, corporate credit and agency MBS, detracted from results as their spreads generally widened during the reporting period.

Thank you for your investment in Western Asset Short-Term Bond Fund. As always, we appreciate that you have chosen us to manage your assets and we remain focused on achieving the Fund's investment goals.

Sincerely,

Western Asset Management Company, LLC

January 17, 2023

*RISKS: Investments in bonds are subject to interest rate, credit, inflation and reinvestment risks. As interest rates rise, bond prices fall, reducing the value of the Fund's share price. Asset-backed, mortgage-backed and mortgage related securities are subject to prepayment and* 

4 Western Asset Short-Term Bond Fund 2022 Annual Report

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##### [**Table of Contents**](#toc)
*extension risks. The Fund may use derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses, and have a potentially large impact on Fund performance. Please see the Fund's prospectus for a more complete discussion of these and other risks and the Fund's investment strategies.* 

Portfolio holdings and breakdowns are as of December 31, 2022 and are subject to change and may not be representative of the portfolio managers' current or future investments. Please refer to pages 11 through 43 for a list and percentage breakdown of the Fund's holdings.

The mention of sector breakdowns is for informational purposes only and should not be construed as a recommendation to purchase or sell any securities. The information provided regarding such sectors is not a sufficient basis upon which to make an investment decision. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies discussed should consult their financial professional. Portfolio holdings are subject to change at any time and may not be representative of the portfolio managers' current or future investments. The Fund's top five sector holdings (as a percentage of net assets) as of December 31, 2022 were: corporate bonds & notes (52.9%), asset-backed securities (13.2%), collateralized mortgage obligations (12.0%), U.S. government & agency obligations (8.7%) and mortgage-backed securities (4.2%). The Fund's portfolio composition is subject to change at any time.

All investments are subject to risk including the possible loss of principal. Past performance is no guarantee of future results. All index performance reflects no deduction for fees, expenses or taxes. Please note that an investor cannot invest directly in an index.

The information provided is not intended to be a forecast of future events, a guarantee of future results or investment advice. Views expressed may differ from those of the firm as a whole.

<sup>i</sup> The Bloomberg U.S. Aggregate Index is a broad-based bond index comprised of government, corporate, mortgage- and asset-backed issues, rated investment grade or higher, and having at least one year to maturity.

<sup>ii</sup> The Bloomberg U.S. Gov/Credit 1-3 Yr. Index includes all medium and larger issues of U.S. government, investment-grade corporate and investment-grade international dollar-denominated bonds that have maturities of between one and three years and are publicly issued.

<sup>iii</sup> The FTSE Treasury/Government Sponsored/Credit 1-3 Year Index is a broad-based index of short-term U.S. Treasury and corporate debt securities.

<sup>iv</sup> Lipper, Inc., a wholly-owned subsidiary of Refinitiv, provides independent insight on global collective investments. Returns are based on the period ended December 31, 2022, including the reinvestment of all distributions, including returns of capital, if any, calculated among the 379 funds for the six-month period and among the 366 funds for the twelve-month period in the Fund's Lipper category, and excluding sales charges, if any. 

Western Asset Short-Term Bond Fund 2022 Annual Report 5

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##### [**Table of Contents**](#toc)
Fund at a glance<sup>†</sup> (unaudited)

**Investment breakdown** (%) as a percent of total investments

![LOGO](g425185dsp09.jpg)

† The bar graph above represents the composition of the Fund's investments as of December 31, 2022 and
December 31, 2021 and does not include derivatives, such as written options, futures contracts and swap contracts. The Fund is actively managed. As a result, the composition of the Fund's investments is subject to change at any time.

\* Prior year percentages have been restated to reflect correct classifications. 

‡ Represents less than 0.1%.

6 Western Asset Short-Term Bond Fund 2022 Annual Report

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##### [**Table of Contents**](#toc)
Fund expenses (unaudited)

**Example** 

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, including front-end and back-end sales charges (loads) on purchase payments; and (2) ongoing costs, including management fees; service and/or distribution (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

This example is based on an investment of $1,000 invested on July 1, 2022 and held for the six months ended December 31, 2022.

**Actual expenses**

The table below titled "Based on actual total return" provides information about actual account values and actual expenses. You may use the information provided in this table, together with the amount you invested, to estimate the expenses that you paid over the period. To estimate the expenses you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled "Expenses Paid During the Period".

**Hypothetical example for comparison purposes** 

The table below titled "Based on hypothetical total return" provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5.00% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use the information provided in this table to compare the ongoing costs of investing in the Fund and other funds. To do so, compare the 5.00% hypothetical example relating to the Fund with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front-end or back-end sales charges (loads). Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

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| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Based on actual total return<sup>1</sup>** | **Based on actual total return<sup>1</sup>** | **Based on actual total return<sup>1</sup>** | **Based on actual total return<sup>1</sup>** | **Based on actual total return<sup>1</sup>** | | **Based on hypothetical total return<sup>1</sup>** | **Based on hypothetical total return<sup>1</sup>** | **Based on hypothetical total return<sup>1</sup>** | **Based on hypothetical total return<sup>1</sup>** | **Based on hypothetical total return<sup>1</sup>** | **Based on hypothetical total return<sup>1</sup>** |
|  | Actual<br>Total Return<br>Without<br>Sales<br>Charge<sup>2</sup> | Beginning<br>Account<br> Value | Ending<br>Account<br>Value | Annualized<br>Expense<br>Ratio | Expenses<br>Paid<br>During<br>the<br>Period<sup>3</sup> |  | Hypothetical<br>Annualized<br>Total Return | Beginning<br>Account<br>Value | Ending<br> Account<br> Value | Annualized<br>Expense<br>Ratio | Expenses<br>Paid<br>During<br>the<br>Period<sup>3</sup> |
| &nbsp;&nbsp;&nbsp;Class A | -0.09% | $1000.00 | $999.10 | 0.70% | $3.53 | Class A | 5.00% | $1000.00 | $1021.68 | 0.70% | $3.57 |
| &nbsp;&nbsp;&nbsp;Class C | -0.47 | 1000.00 | 995.30 | 1.45 | 7.29 | Class C | 5.00 | 1000.00 | 1017.90 | 1.45 | 7.38 |
| &nbsp;&nbsp;&nbsp;Class C1 | -0.21 | 1000.00 | 997.90 | 0.98 | 4.94 | Class C1 | 5.00 | 1000.00 | 1020.27 | 0.98 | 4.99 |
| &nbsp;&nbsp;&nbsp;Class R | -0.55 | 1000.00 | 994.50 | 1.10 | 5.53 | Class R | 5.00 | 1000.00 | 1019.66 | 1.10 | 5.60 |
| &nbsp;&nbsp;&nbsp;Class I | 0.05 | 1000.00 | 1000.50 | 0.42 | 2.12 | Class I | 5.00 | 1000.00 | 1023.09 | 0.42 | 2.14 |
| &nbsp;&nbsp;&nbsp;Class IS | 0.06 | 1000.00 | 1000.60 | 0.40 | 2.02 | Class IS | 5.00 | 1000.00 | 1023.19 | 0.40 | 2.04 |

---

Western Asset Short-Term Bond Fund 2022 Annual Report 7

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##### [**Table of Contents**](#toc)
Fund expenses (unaudited) (cont'd)

<sup>1</sup> For the six months ended December 31, 2022.

<sup>2</sup> Assumes the reinvestment of all distributions, including returns of capital, if any, at net asset value and does not reflect the deduction of the applicable sales charge with respect to Class A shares or the applicable contingent deferred sales charge ("CDSC") with respect to Class C shares. Total return is not annualized, as it may not be representative of the total return for the year. Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. 

<sup>3</sup> Expenses (net of compensating balance arrangements, fee waivers and/or expense reimbursements) are equal to each class' respective annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (184), then divided by 365. 

8 Western Asset Short-Term Bond Fund 2022 Annual Report

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##### [**Table of Contents**](#toc)
Fund performance (unaudited)

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Average annual total returns** | **Average annual total returns** | **Average annual total returns** | **Average annual total returns** | **Average annual total returns** | **Average annual total returns** | **Average annual total returns** |
| **Without sales charges<sup>1</sup>** | Class A | Class C | Class C1<sup>2</sup> | Class R | Class I | Class IS |
| Twelve Months Ended 12/31/22 | -5.01% | -6.02% | -5.29% | -5.64% | -4.75% | -4.73% |
| Five Years Ended 12/31/22 | 0.73 | -0.04 | 0.52 | 0.35 | 0.98 | 1.05 |
| Ten Years Ended 12/31/22 | 0.90 | 0.11 | 0.66 | N/A | 1.17 | 1.23 |
| Inception\* through 12/31/22 |  |  |  | 0.55 |  |  |
| **With sales charges<sup>3</sup>** | Class A | Class C | Class C1<sup>2</sup> | Class R | Class I | Class IS |
| Twelve Months Ended 12/31/22 | -7.17% | -6.94% | -5.29% | -5.64% | -4.75% | -4.73% |
| Five Years Ended 12/31/22 | 0.26 | -0.04 | 0.52 | 0.35 | 0.98 | 1.05 |
| Ten Years Ended 12/31/22 | 0.67 | 0.11 | 0.66 | N/A | 1.17 | 1.23 |
| Inception\* through 12/31/22 |  |  |  | 0.55 |  |  |

---

---

| | |
|:---|:---|
| **Cumulative total returns**<br>**Without sales charges<sup>1</sup>** | |
| Class A (12/31/12 through 12/31/22) | 9.38% |
| Class C (12/31/12 through 12/31/22) | 1.10 |
| Class C1 (12/31/12 through 12/31/22) | 6.82 |
| Class R (Inception date of 1/31/14 through 12/31/22) | 5.03 |
| Class I (12/31/12 through 12/31/22) | 12.30 |
| Class IS (12/31/12 through 12/31/22) | 13.01 |

---

**All figures represent past performance and are not a guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower.** 

<sup>1</sup> Assumes the reinvestment of all distributions, including returns of capital, if any, at net asset value and does not reflect the deduction of the applicable sales charge with respect to Class A shares or the applicable contingent deferred sales charge ("CDSC") with respect to Class C shares. 

<sup>2</sup> On August 1, 2012, Class C shares were reclassified as Class C1 shares.

<sup>3</sup> Assumes the reinvestment of all distributions, including returns of capital, if any, at net asset value. In addition, Class A shares reflect the deduction of the maximum initial sales charge of 2.25%. Class C shares reflect the deduction of a 1.00% CDSC, which applies if shares are redeemed within one year from purchase payment. 

\* Inception dates for Class A, C, C1, R, I and IS shares are November 11, 1991, August 1, 2012, August 5, 2002, January 31, 2014, February 7, 1996 and October 5, 2012, respectively.

Western Asset Short-Term Bond Fund 2022 Annual Report 9

------

##### [**Table of Contents**](#toc)
Fund performance (unaudited) (cont'd)

**Historical performance** 

**Value of $10,000 invested in** 

Class A Shares of Western Asset Short-Term Bond Fund vs. FTSE Treasury/Government Sponsored/Credit 1-3 Year Index and Bloomberg U.S. Government/Credit 1-3 Year Index† — December 2012 - December 2022

![LOGO](g425185dsp13.jpg)

**All figures represent past performance and are not a guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower.** 

† Hypothetical illustration of $10,000 invested in Class A shares of Western Asset Short-Term Bond Fund on
December 31, 2012, assuming the deduction of the maximum initial sales charge of 2.25% at the time of investment for Class A shares and the reinvestment of all distributions, including returns of capital, if any, at net asset value through
December 31, 2022. The hypothetical illustration also assumes a $10,000 investment in the FTSE Treasury/Government Sponsored/Credit 1-3 Year Index and Bloomberg U.S. Government Credit 1-3 Year Index (together, the "Indices"). The FTSE
Treasury/Government Sponsored/Credit 1-3 Year Index is a broad-based index of short-term U.S. Treasury and corporate debt securities. The Bloomberg U.S. Government/Credit 1-3 Year Index measures the performance of investment grade, US
dollar-denominated, fixed-rate, taxable corporate and government-related debt with 1 to 2.9999 years to maturity. The Indices are unmanaged and is not subject to the same management and trading expenses as a mutual fund. Please note that an investor
cannot invest directly in an index. The performance of the Fund's other classes may be greater or less than Class A shares' performance indicated on this chart, depending on whether greater or lesser sales charges and fees were
incurred by shareholders investing in the other classes.

10 Western Asset Short-Term Bond Fund 2022 Annual Report

------

##### [**Table of Contents**](#toc)
Schedule of investments

December 31, 2022

**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |  |
| **Corporate Bonds & Notes — 52.9%** |  |  |  |  |  |
| **Communication Services — 5.3%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Diversified Telecommunication Services — 2.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AT&T Inc., Senior Notes | 0.900% | 3/25/24 | $4110000 | $3904876 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AT&T Inc., Senior Notes | 1.700% | 3/25/26 | 1200000 | 1082824 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; NTT Finance Corp., Senior Notes | 0.583% | 3/1/24 | 2760000 | 2617601 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Verizon Communications Inc., Senior Notes | 0.750% | 3/22/24 | 1560000 | 1480676 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Verizon Communications Inc., Senior Notes | 3.376% | 2/15/25 | 2070000 | 2007228 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Verizon Communications Inc., Senior Notes | 1.450% | 3/20/26 | 1250000 | 1123594 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Verizon Communications Inc., Senior Notes | 4.125% | 3/16/27 | 3430000 | 3345931 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Verizon Communications Inc., Senior Notes | 4.329% | 9/21/28 | 762000 | 734177 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Diversified Telecommunication Services* |  |  |  | *16296907* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Entertainment — 0.5%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Warnermedia Holdings Inc., Senior Notes | 3.638% | 3/15/25 | 2300000 | 2189103 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Warnermedia Holdings Inc., Senior Notes | 3.755% | 3/15/27 | 1540000 | 1389008 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Entertainment* |  |  |  | *3578111* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Interactive Media & Services — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Alphabet Inc., Senior Notes | 0.450% | 8/15/25 | 370000 | 334365 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tencent Holdings Ltd., Senior Notes | 2.985% | 1/19/23 | 710000 | 709389 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Interactive Media & Services* |  |  |  | *1043754* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Media — 1.7%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes | 5.125% | 5/1/27 | 2700000 | 2522529 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Charter Communications Operating LLC/Charter Communications Operating Capital Corp., Senior Secured Notes | 4.500% | 2/1/24 | 1330000 | 1314863 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Charter Communications Operating LLC/Charter Communications Operating Capital Corp., Senior Secured Notes | 4.908% | 7/23/25 | 3800000 | 3728058 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Comcast Corp., Senior Notes | 3.950% | 10/15/25 | 2810000 | 2754858 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Comcast Corp., Senior Notes | 3.150% | 3/1/26 | 70000 | 66713 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; DISH DBS Corp., Senior Notes | 5.875% | 11/15/24 | 250000 | 232824 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; DISH DBS Corp., Senior Secured Notes | 5.250% | 12/1/26 | 100000 | 84421 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Fox Corp., Senior Notes | 4.030% | 1/25/24 | 2610000 | 2580835 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Media* |  |  |  | *13285101* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Wireless Telecommunication Services — 0.9%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; CSC Holdings LLC, Senior Notes | 6.500% | 2/1/29 | 1200000 | 983538 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; T-Mobile USA Inc., Senior Notes | 3.500% | 4/15/25 | 1480000 | 1424606 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; T-Mobile USA Inc., Senior Notes | 2.250% | 2/15/26 | 4320000 | 3937727 |  |

---

See Notes to Financial Statements.

Western Asset Short-Term Bond Fund 2022 Annual Report 11

------

##### [**Table of Contents**](#toc)
Schedule of investments (cont'd)

December 31, 2022

**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Wireless Telecommunication Services — continued* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; T-Mobile USA Inc., Senior Notes | 4.750% | 2/1/28 | $900000 | $877044 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; T-Mobile USA Inc., Senior Notes | 3.375% | 4/15/29 | 70000 | 61789 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Wireless Telecommunication Services* |  |  |  | *7284704* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Communication Services** |  |  |  | **41488577** |  |
| **Consumer Discretionary — 4.5%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Automobiles — 2.4%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; American Honda Finance Corp., Senior Notes | 2.400% | 6/27/24 | 2530000 | 2439069 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; BMW US Capital LLC, Senior Notes | 0.800% | 4/1/24 | 1460000 | 1384857 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Daimler Finance North America LLC, Senior Notes | 0.750% | 3/1/24 | 1590000 | 1510409 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Ford Motor Credit Co. LLC, Senior Notes | 4.950% | 5/28/27 | 1150000 | 1074985 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; General Motors Financial Co. Inc., Senior Notes | 3.950% | 4/13/24 | 1070000 | 1049452 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; General Motors Financial Co. Inc., Senior Notes | 2.750% | 6/20/25 | 2820000 | 2642368 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Hyundai Capital America, Senior Notes | 1.250% | 9/18/23 | 2150000 | 2084309 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Nissan Motor Co. Ltd., Senior Notes | 3.043% | 9/15/23 | 2940000 | 2881344 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Toyota Motor Corp., Senior Notes | 0.681% | 3/25/24 | 3860000 | 3663240 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Automobiles* |  |  |  | *18730033* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Hotels, Restaurants & Leisure — 0.9%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Las Vegas Sands Corp., Senior Notes | 3.200% | 8/8/24 | 210000 | 198616 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Las Vegas Sands Corp., Senior Notes | 2.900% | 6/25/25 | 2570000 | 2364053 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Marriott International Inc., Senior Notes | 3.600% | 4/15/24 | 1230000 | 1205987 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; McDonald's Corp., Senior Notes | 3.300% | 7/1/25 | 440000 | 426030 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; McDonald's Corp., Senior Notes | 1.450% | 9/1/25 | 1240000 | 1138278 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; McDonald's Corp., Senior Notes | 3.700% | 1/30/26 | 660000 | 642448 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; McDonald's Corp., Senior Notes | 3.500% | 3/1/27 | 230000 | 219323 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sands China Ltd., Senior Notes | 2.800% | 3/8/27 | 420000 | 360272 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sands China Ltd., Senior Notes | 3.350% | 3/8/29 | 200000 | 163662 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Hotels, Restaurants & Leisure* |  |  |  | *6718669* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Household Durables — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; DR Horton Inc., Senior Notes | 2.500% | 10/15/24 | 880000 | *838551* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Internet & Direct Marketing Retail — 0.5%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Amazon.com Inc., Senior Notes | 0.400% | 6/3/23 | 300000 | 294584 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Amazon.com Inc., Senior Notes | 0.450% | 5/12/24 | 1980000 | 1865989 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Amazon.com Inc., Senior Notes | 3.000% | 4/13/25 | 770000 | 743685 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Amazon.com Inc., Senior Notes | 0.800% | 6/3/25 | 650000 | 594136 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Amazon.com Inc., Senior Notes | 3.300% | 4/13/27 | 590000 | 560831 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Internet & Direct Marketing Retail* |  |  |  | *4059225* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Multiline Retail — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Target Corp., Senior Notes | 2.250% | 4/15/25 | 800000 | *759630* | |

---

See Notes to Financial Statements.

12 Western Asset Short-Term Bond Fund 2022 Annual Report

------

##### [**Table of Contents**](#toc)
**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount | Face<br>Amount | Value | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Specialty Retail — 0.4%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Home Depot Inc., Senior Notes | 2.700% | 4/15/25 | $| 870000 | $| 834519 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Home Depot Inc., Senior Notes | 2.500% | 4/15/27 |  | 770000 |  | 709718 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Home Depot Inc., Senior Notes | 2.875% | 4/15/27 |  | 290000 |  | 270934 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Lowe's Cos. Inc., Senior Notes | 4.000% | 4/15/25 |  | 1460000 |  | 1432851 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Specialty Retail* |  |  |  |  | | *3248022* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Textiles, Apparel & Luxury Goods — 0.1%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; NIKE Inc., Senior Notes | 2.400% | 3/27/25 |  | 730000 | | *697875* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Consumer Discretionary** |  |  |  |  |  | **35052005** |  |
| **Consumer Staples — 1.5%** | **Consumer Staples — 1.5%** | **Consumer Staples — 1.5%** | **Consumer Staples — 1.5%** | **Consumer Staples — 1.5%** | **Consumer Staples — 1.5%** | **Consumer Staples — 1.5%** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Beverages — 0.3%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide Inc., Senior Notes | 3.650% | 2/1/26 |  | 2400000 | | *2312538* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Food & Staples Retailing — 0.1%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Walmart Inc., Senior Notes | 1.050% | 9/17/26 |  | 660000 | | *585341* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Food Products — 0.0%††* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Mondelez International Inc., Senior Notes | 1.500% | 5/4/25 |  | 230000 | | *213036* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Household Products — 0.1%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; GSK Consumer Healthcare Capital UK PLC, Senior Notes | 3.125% | 3/24/25 |  | 1040000 |  | 989904 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Procter & Gamble Co., Senior Notes | 2.800% | 3/25/27 |  | 30000 |  | 28139 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Household Products* |  |  |  |  | | *1018043* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Tobacco — 1.0%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Altria Group Inc., Senior Notes | 2.350% | 5/6/25 |  | 2890000 |  | 2724665 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Altria Group Inc., Senior Notes | 4.400% | 2/14/26 |  | 800000 |  | 784102 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cargill Inc., Senior Notes | 1.375% | 7/23/23 |  | 150000 |  | 146979 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Philip Morris International Inc., Senior Notes | 1.125% | 5/1/23 |  | 1930000 |  | 1906315 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Philip Morris International Inc., Senior Notes | 2.875% | 5/1/24 |  | 230000 |  | 223301 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Reynolds American Inc., Senior Notes | 4.850% | 9/15/23 |  | 2290000 |  | 2285634 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Tobacco* |  |  |  |  | | *8070996* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Consumer Staples** |  |  |  |  |  | **12199954** |  |
| **Energy — 7.9%** | **Energy — 7.9%** | **Energy — 7.9%** | **Energy — 7.9%** | **Energy — 7.9%** | **Energy — 7.9%** | **Energy — 7.9%** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Oil, Gas & Consumable Fuels — 7.9%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Chevron Corp., Senior Notes | 1.554% | 5/11/25 |  | 2540000 |  | 2365092 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Continental Resources Inc., Senior Notes | 4.500% | 4/15/23 |  | 2460000 |  | 2459692 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Continental Resources Inc., Senior Notes | 3.800% | 6/1/24 |  | 860000 |  | 837689 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Continental Resources Inc., Senior Notes | 2.268% | 11/15/26 |  | 1380000 |  | 1197504 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Devon Energy Corp., Senior Notes | 5.250% | 9/15/24 |  | 1520000 |  | 1522216 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Devon Energy Corp., Senior Notes | 5.850% | 12/15/25 |  | 3370000 |  | 3434369 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Diamondback Energy Inc., Senior Notes | 3.250% | 12/1/26 |  | 2040000 |  | 1900253 |  |

---

See Notes to Financial Statements.

Western Asset Short-Term Bond Fund 2022 Annual Report 13

------

##### [**Table of Contents**](#toc)
Schedule of investments (cont'd)

December 31, 2022

**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount | Value |
| &nbsp;&nbsp;&nbsp;&nbsp; *Oil, Gas & Consumable Fuels — continued* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Energy Transfer LP, Senior Notes | 4.250% | 3/15/23 | $890000 | $887896 |
| &nbsp;&nbsp;&nbsp;&nbsp; Energy Transfer LP, Senior Notes | 4.500% | 4/15/24 | 980000 | 966543 |
| &nbsp;&nbsp;&nbsp;&nbsp; Energy Transfer LP, Senior Notes | 4.050% | 3/15/25 | 610000 | 591353 |
| &nbsp;&nbsp;&nbsp;&nbsp; Energy Transfer LP, Senior Notes | 2.900% | 5/15/25 | 1070000 | 1008609 |
| &nbsp;&nbsp;&nbsp;&nbsp; Energy Transfer LP/Regency Energy Finance Corp., Senior Notes | 4.500% | 11/1/23 | 2170000 | 2154848 |
| &nbsp;&nbsp;&nbsp;&nbsp; Enterprise Products Operating LLC, Senior Notes | 3.350% | 3/15/23 | 1920000 | 1914567 |
| &nbsp;&nbsp;&nbsp;&nbsp; Enterprise Products Operating LLC, Senior Notes | 3.750% | 2/15/25 | 720000 | 700642 |
| &nbsp;&nbsp;&nbsp;&nbsp; Enterprise Products Operating LLC, Senior Notes | 3.700% | 2/15/26 | 4320000 | 4168589 |
| &nbsp;&nbsp;&nbsp;&nbsp; EOG Resources Inc., Senior Notes | 2.625% | 3/15/23 | 1040000 | 1035997 |
| &nbsp;&nbsp;&nbsp;&nbsp; EQT Corp., Senior Notes | 3.125% | 5/15/26 | 1300000 | 1196436 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; EQT Corp., Senior Notes | 3.900% | 10/1/27 | 420000 | 388653 |
| &nbsp;&nbsp;&nbsp;&nbsp; EQT Corp., Senior Notes | 5.000% | 1/15/29 | 1150000 | 1083505 |
| &nbsp;&nbsp;&nbsp;&nbsp; Exxon Mobil Corp., Senior Notes | 1.571% | 4/15/23 | 890000 | 881759 |
| &nbsp;&nbsp;&nbsp;&nbsp; Exxon Mobil Corp., Senior Notes | 2.992% | 3/19/25 | 1870000 | 1802777 |
| &nbsp;&nbsp;&nbsp;&nbsp; Kinder Morgan Energy Partners LP, Senior Notes | 3.450% | 2/15/23 | 1160000 | 1157548 |
| &nbsp;&nbsp;&nbsp;&nbsp; Kinder Morgan Energy Partners LP, Senior Notes | 4.250% | 9/1/24 | 2150000 | 2114812 |
| &nbsp;&nbsp;&nbsp;&nbsp; Kinder Morgan Inc., Senior Notes | 4.300% | 6/1/25 | 1790000 | 1757081 |
| &nbsp;&nbsp;&nbsp;&nbsp; Lukoil International Finance BV, Senior Notes | 4.750% | 11/2/26 | 1000000 | 804000 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; MPLX LP, Senior Notes | 4.500% | 7/15/23 | 1850000 | 1842916 |
| &nbsp;&nbsp;&nbsp;&nbsp; MPLX LP, Senior Notes | 4.000% | 2/15/25 | 3380000 | 3278720 |
| &nbsp;&nbsp;&nbsp;&nbsp; Occidental Petroleum Corp., Senior Notes | 3.200% | 8/15/26 | 2150000 | 1981848 |
| &nbsp;&nbsp;&nbsp;&nbsp; Petrobras Global Finance BV, Senior Notes | 5.750% | 2/1/29 | 1250000 | 1215950 |
| &nbsp;&nbsp;&nbsp;&nbsp; Petroleos del Peru SA, Senior Notes | 4.750% | 6/19/32 | 1210000 | 937387 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Pioneer Natural Resources Co., Senior Notes | 0.550% | 5/15/23 | 1230000 | 1209925 |
| &nbsp;&nbsp;&nbsp;&nbsp; Pioneer Natural Resources Co., Senior Notes | 1.125% | 1/15/26 | 2480000 | 2213130 |
| &nbsp;&nbsp;&nbsp;&nbsp; Schlumberger Holdings Corp., Senior Notes | 3.900% | 5/17/28 | 500000 | 466769 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Shell International Finance BV, Senior Notes | 2.875% | 5/10/26 | 2460000 | 2319622 |
| &nbsp;&nbsp;&nbsp;&nbsp; Targa Resources Corp., Senior Notes | 5.200% | 7/1/27 | 2100000 | 2061671 |
| &nbsp;&nbsp;&nbsp;&nbsp; Transcontinental Gas Pipe Line Co. LLC, Senior Notes | 7.850% | 2/1/26 | 1840000 | 1965843 |
| &nbsp;&nbsp;&nbsp;&nbsp; Western Midstream Operating LP, Senior Notes | 3.350% | 2/1/25 | 2130000 | 2018920 |
| &nbsp;&nbsp;&nbsp;&nbsp; Western Midstream Operating LP, Senior Notes | 3.950% | 6/1/25 | 170000 | 161208 |
| &nbsp;&nbsp;&nbsp;&nbsp; Western Midstream Operating LP, Senior Notes (3 mo. USD LIBOR + 1.100%) | 5.041% | 1/13/23 | 40000 | 39940 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Williams Cos. Inc., Senior Notes | 4.500% | 11/15/23 | 1150000 | 1141915 |
| &nbsp;&nbsp;&nbsp;&nbsp; Williams Cos. Inc., Senior Notes | 4.300% | 3/4/24 | 1300000 | 1284877 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Energy** |  |  |  | **62473071** |

---

See Notes to Financial Statements.

14 Western Asset Short-Term Bond Fund 2022 Annual Report

------

##### [**Table of Contents**](#toc)
**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount | Value |
| **Financials — 23.1%** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Banks — 16.6%* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Banco Santander SA, Senior Notes | 3.125% | 2/23/23 | $1600000 | $1595402 |
| &nbsp;&nbsp;&nbsp;&nbsp; Banco Santander SA, Senior Notes | 3.848% | 4/12/23 | 200000 | 198954 |
| &nbsp;&nbsp;&nbsp;&nbsp; Banco Santander SA, Senior Notes | 2.746% | 5/28/25 | 3200000 | 2997694 |
| &nbsp;&nbsp;&nbsp;&nbsp; Banco Santander SA, Senior Notes (4.175% to 3/24/27 then 1 year Treasury Constant Maturity Rate + 2.000%) | 4.175% | 3/24/28 | 1200000 | 1114778 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of America Corp., Senior Notes (1.319% to 6/19/25 then SOFR + 1.150%) | 1.319% | 6/19/26 | 8440000 | 7607672 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of America Corp., Senior Notes (1.486% to 5/19/23 then SOFR + 1.460%) | 1.486% | 5/19/24 | 2740000 | 2697441 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of America Corp., Senior Notes (3.458% to 3/15/24 then 3 mo. USD LIBOR + 0.970%) | 3.458% | 3/15/25 | 840000 | 818097 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of America Corp., Senior Notes (3.550% to 3/5/23 then 3 mo. USD LIBOR + 0.780%) | 3.550% | 3/5/24 | 3840000 | 3825813 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of America Corp., Senior Notes (3.841% to 4/25/24 then SOFR + 1.110%) | 3.841% | 4/25/25 | 1490000 | 1455486 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of Montreal, Senior Notes | 3.300% | 2/5/24 | 690000 | 677364 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of Montreal, Senior Notes | 2.500% | 6/28/24 | 1490000 | 1435648 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of Nova Scotia, Senior Notes | 0.800% | 6/15/23 | 1300000 | 1276002 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of Nova Scotia, Senior Notes | 3.450% | 4/11/25 | 1220000 | 1175105 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of Nova Scotia, Senior Notes | 1.300% | 6/11/25 | 1310000 | 1201426 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of Nova Scotia, Senior Notes | 1.050% | 3/2/26 | 650000 | 575472 |
| &nbsp;&nbsp;&nbsp;&nbsp; BNP Paribas SA, Senior Notes | 3.500% | 3/1/23 | 1610000 | 1606146 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BNP Paribas SA, Senior Notes | 3.375% | 1/9/25 | 2110000 | 2032122 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BNP Paribas SA, Senior Notes (2.219% to 6/9/25 then SOFR + 2.074%) | 2.219% | 6/9/26 | 970000 | 891454 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BNP Paribas SA, Senior Notes (4.705% to 1/10/24 then 3 mo. USD LIBOR + 2.235%) | 4.705% | 1/10/25 | 780000 | 772519 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Canadian Imperial Bank of Commerce, Senior Notes | 0.950% | 6/23/23 | 3070000 | 3013285 |
| &nbsp;&nbsp;&nbsp;&nbsp; Citigroup Inc., Junior Subordinated Notes (5.950% to 5/15/25 then 3 mo. USD LIBOR + 3.905%) | 5.950% | 5/15/25 | 540000 | 487053 <sup>(c)(d)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Citigroup Inc., Senior Notes (1.678% to 5/15/23 then SOFR + 1.667%) | 1.678% | 5/15/24 | 6900000 | 6803265 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Citigroup Inc., Senior Notes (3.106% to 4/8/25 then SOFR + 2.842%) | 3.106% | 4/8/26 | 3090000 | 2927558 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Citigroup Inc., Senior Notes (3.290% to 3/17/25 then SOFR + 1.528%) | 3.290% | 3/17/26 | 1510000 | 1436582 <sup>(c)</sup> |

---

See Notes to Financial Statements.

Western Asset Short-Term Bond Fund 2022 Annual Report 15

------

##### [**Table of Contents**](#toc)
Schedule of investments (cont'd)

December 31, 2022

**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |
| &nbsp;&nbsp;&nbsp;&nbsp; *Banks — continued* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Citigroup Inc., Subordinated Notes | 4.400% | 6/10/25 | $3000000 | $2947311 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cooperatieve Rabobank UA, Senior Notes (1.339% to 6/24/25 then 1 year Treasury Constant Maturity Rate + 1.000%) | 1.339% | 6/24/26 | 2830000 | 2547059 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Cooperatieve Rabobank UA, Senior Notes (3.649% to 4/6/27 then 1 year Treasury Constant Maturity Rate + 1.220%) | 3.649% | 4/6/28 | 510000 | 470632 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit Agricole SA, Senior Notes (1.247% to 1/26/26 then SOFR + 0.892%) | 1.247% | 1/26/27 | 2030000 | 1777489 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Danske Bank A/S, Senior Notes | 5.375% | 1/12/24 | 1220000 | 1210389 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Danske Bank A/S, Senior Notes | 1.226% | 6/22/24 | 1100000 | 1027523 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Danske Bank A/S, Senior Notes (3.773% to 3/28/24 then 1 year Treasury Constant Maturity Rate + 1.450%) | 3.773% | 3/28/25 | 3680000 | 3567490 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; HSBC Holdings PLC, Senior Notes (0.976% to 5/24/24 then SOFR + 0.708%) | 0.976% | 5/24/25 | 3460000 | 3205343 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; HSBC Holdings PLC, Senior Notes (3.803% to 3/11/24 then 3 mo. USD LIBOR + 1.211%) | 3.803% | 3/11/25 | 1160000 | 1128203 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; ING Groep NV, Senior Notes (4.017% to 3/28/27 then SOFR + 1.830%) | 4.017% | 3/28/28 | 1680000 | 1573440 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Intesa Sanpaolo SpA, Senior Notes | 3.250% | 9/23/24 | 430000 | 408121 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; JPMorgan Chase & Co., Senior Notes (0.697%to 3/16/23 then SOFR + 0.580%) | 0.697% | 3/16/24 | 3700000 | 3661390 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; JPMorgan Chase & Co., Senior Notes (2.083%to 4/22/25 then SOFR + 1.850%) | 2.083% | 4/22/26 | 8720000 | 8102172 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; JPMorgan Chase & Co., Senior Notes (3.220%to 3/1/24 then 3 mo. USD LIBOR + 1.155%) | 3.220% | 3/1/25 | 920000 | 894598 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; JPMorgan Chase & Co., Senior Notes (3.845%to 6/14/24 then SOFR + 0.980%) | 3.845% | 6/14/25 | 1450000 | 1418513 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; JPMorgan Chase & Co., Senior Notes (4.023%to 12/5/23 then 3 mo. USD LIBOR + 1.000%) | 4.023% | 12/5/24 | 2530000 | 2493186 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; KeyBank NA, Senior Notes (0.423% to 1/3/23 then SOFR + 0.340%) | 0.423% | 1/3/24 | 1410000 | 1409817 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Lloyds Banking Group PLC, Senior Notes | 4.050% | 8/16/23 | 690000 | 685487 |
| &nbsp;&nbsp;&nbsp;&nbsp; Lloyds Banking Group PLC, Senior Notes | 3.900% | 3/12/24 | 370000 | 363335 |
| &nbsp;&nbsp;&nbsp;&nbsp; Lloyds Banking Group PLC, Senior Notes (3.870% to 7/9/24 then 1 year Treasury Constant Maturity Rate + 3.500%) | 3.870% | 7/9/25 | 3160000 | 3060306 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Mitsubishi UFJ Financial Group Inc., Senior Notes | 1.412% | 7/17/25 | 640000 | 581768 |

---

See Notes to Financial Statements.

16 Western Asset Short-Term Bond Fund 2022 Annual Report

------

##### [**Table of Contents**](#toc)
**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Banks — continued* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Mitsubishi UFJ Financial Group Inc., Senior Notes (0.848% to 9/15/23 then 1 year Treasury Constant Maturity Rate + 0.680%) | 0.848% | 9/15/24 | $1620000 | $1563941 | <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Mitsubishi UFJ Financial Group Inc., Senior Notes (3.837% to 4/17/25 then 1 year Treasury Constant Maturity Rate + 1.125%) | 3.837% | 4/17/26 | 270000 | 260273 | <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Mitsubishi UFJ Financial Group Inc., Senior Notes (4.080% to 4/19/27 then 1 year Treasury Constant Maturity Rate + 1.300%) | 4.080% | 4/19/28 | 280000 | 264415 | <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Mizuho Financial Group Inc., Senior Notes (0.849% to 9/8/23 then SOFR + 0.872%) | 0.849% | 9/8/24 | 1160000 | 1119809 | <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; NatWest Group PLC, Senior Notes (4.269% to 3/22/24 then 3 mo. USD LIBOR + 1.762%) | 4.269% | 3/22/25 | 1770000 | 1731687 | <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Nordea Bank Abp, Senior Notes | 0.625% | 5/24/24 | 1050000 | 983304 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; PNC Financial Services Group Inc., Senior Notes | 3.500% | 1/23/24 | 900000 | 887031 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Royal Bank of Canada, Senior Notes | 1.600% | 4/17/23 | 710000 | 703940 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Royal Bank of Canada, Senior Notes | 3.375% | 4/14/25 | 3340000 | 3230431 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Royal Bank of Canada, Senior Notes | 1.150% | 6/10/25 | 1060000 | 971204 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Royal Bank of Canada, Senior Notes (SOFR + 0.360%) | 4.353% | 7/29/24 | 1450000 | 1434154 | <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Sumitomo Mitsui Financial Group Inc., Senior Notes | 0.508% | 1/12/24 | 510000 | 485712 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sumitomo Mitsui Financial Group Inc., Senior Notes (3 mo. USD LIBOR + 0.800%) | 4.879% | 10/16/23 | 1290000 | 1291607 | <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Swedbank AB, Senior Notes | 3.356% | 4/4/25 | 4390000 | 4223062 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Toronto-Dominion Bank, Senior Notes | 0.300% | 6/2/23 | 2820000 | 2767564 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; US Bancorp, Senior Notes | 3.375% | 2/5/24 | 795000 | 781140 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Wells Fargo & Co., Senior Notes | 3.750% | 1/24/24 | 3770000 | 3720357 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Wells Fargo & Co., Senior Notes (1.654% to 6/2/23 then SOFR + 1.600%) | 1.654% | 6/2/24 | 4690000 | 4615008 | <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Wells Fargo & Co., Senior Notes (2.188% to 4/30/25 then SOFR + 2.000%) | 2.188% | 4/30/26 | 5830000 | 5430757 | <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Wells Fargo & Co., Senior Notes (3.908% to 4/25/25 then SOFR + 1.320%) | 3.908% | 4/25/26 | 3070000 | 2986467 | <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Banks* |  |  |  | *130607773* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Capital Markets — 5.0%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of New York Mellon Corp., Senior Notes | 1.600% | 4/24/25 | 440000 | 409223 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of New York Mellon Corp., Senior Notes (3.992% to 6/13/27 then SOFR + 1.151%) | 3.992% | 6/13/28 | 900000 | 862407 | <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Charles Schwab Corp., Senior Notes | 0.750% | 3/18/24 | 1970000 | 1873140 |  |

---

See Notes to Financial Statements.

Western Asset Short-Term Bond Fund 2022 Annual Report 17

------

##### [**Table of Contents**](#toc)
Schedule of investments (cont'd)

December 31, 2022

**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Capital Markets — continued* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit Suisse AG, Senior Notes | 1.000% | 5/5/23 | $940000 | $918325 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit Suisse AG, Senior Notes | 0.520% | 8/9/23 | 1110000 | 1056139 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit Suisse AG, Senior Notes | 3.625% | 9/9/24 | 1140000 | 1063682 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit Suisse AG, Senior Notes | 2.950% | 4/9/25 | 880000 | 792705 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit Suisse Group AG, Senior Notes (2.193% to 6/5/25 then SOFR + 2.044%) | 2.193% | 6/5/26 | 880000 | 752312 | <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit Suisse Group AG, Senior Notes (2.593% to 9/11/24 then SOFR + 1.560%) | 2.593% | 9/11/25 | 1490000 | 1318119 | <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Goldman Sachs Group Inc., Senior Notes | 3.200% | 2/23/23 | 370000 | 369094 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Goldman Sachs Group Inc., Senior Notes | 3.625% | 2/20/24 | 6190000 | 6085636 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Goldman Sachs Group Inc., Senior Notes | 3.500% | 4/1/25 | 1010000 | 972118 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Goldman Sachs Group Inc., Senior Notes (3.272% to 9/29/24 then 3 mo. USD LIBOR + 1.201%) | 3.272% | 9/29/25 | 4940000 | 4763618 | <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Goldman Sachs Group Inc., Senior Notes (4.387% to 6/15/26 then SOFR + 1.510%) | 4.387% | 6/15/27 | 720000 | 694572 | <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Morgan Stanley, Senior Notes (0.529% to 1/25/23 then SOFR + 0.455%) | 0.529% | 1/25/24 | 6310000 | 6267834 | <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Morgan Stanley, Senior Notes (2.188% to 4/28/25 then SOFR + 1.990%) | 2.188% | 4/28/26 | 4380000 | 4073939 | <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Morgan Stanley, Senior Notes (3.620% to 4/17/24 then SOFR + 1.160%) | 3.620% | 4/17/25 | 3400000 | 3319445 | <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; UBS AG, Senior Notes | 0.375% | 6/1/23 | 1990000 | 1950543 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; UBS AG, Senior Notes | 0.700% | 8/9/24 | 1000000 | 932429 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; UBS Group AG, Senior Notes | 4.125% | 9/24/25 | 940000 | 914955 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Capital Markets* |  |  |  | *39390235* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Consumer Finance — 0.4%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Caterpillar Financial Services Corp., Senior Notes | 0.450% | 5/17/24 | 2960000 | *2789866* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Diversified Financial Services — 0.7%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AerCap Ireland Capital DAC/AerCap Global Aviation Trust, Senior Notes | 4.875% | 1/16/24 | 840000 | 832331 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AerCap Ireland Capital DAC/AerCap Global Aviation Trust, Senior Notes | 1.650% | 10/29/24 | 2910000 | 2686141 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; National Securities Clearing Corp., Senior Notes | 1.200% | 4/23/23 | 1050000 | 1039243 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; National Securities Clearing Corp., Senior Notes | 0.750% | 12/7/25 | 1020000 | 904884 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; USAA Capital Corp., Senior Notes | 0.500% | 5/1/24 | 340000 | 320661 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Diversified Financial Services* |  |  |  | *5783260* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Insurance — 0.4%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; American International Group Inc., Senior Notes | 2.500% | 6/30/25 | 60000 | 56540 |  |

---

See Notes to Financial Statements.

18 Western Asset Short-Term Bond Fund 2022 Annual Report

------

##### [**Table of Contents**](#toc)
**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Security | Rate |  | Maturity<br>Date | Face<br>Amount | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Insurance — continued* | &nbsp;&nbsp;&nbsp;&nbsp; *Insurance — continued* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Great-West Lifeco US Finance 2020 LP, Senior Notes | 0.904 | % | 8/12/25 | $1630000 | $1451329 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; MassMutual Global Funding II, Senior Secured Notes | 0.850 | % | 6/9/23 | 460000 | 451595 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Metropolitan Life Global Funding I, Secured Notes | 0.900 | % | 6/8/23 | 320000 | 314743 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; New York Life Global Funding, Senior Secured Notes | 0.950 | % | 6/24/25 | 940000 | 852017 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Principal Life Global Funding II, Secured Notes | 1.250 | % | 6/23/25 | 60000 | 54623 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Insurance* |  |  |  |  | *3180847* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Financials** |  |  |  |  | **181751981** |  |
| **Health Care — 4.4%** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Biotechnology — 0.9%* | &nbsp;&nbsp;&nbsp;&nbsp; *Biotechnology — 0.9%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AbbVie Inc., Senior Notes | 3.750 | % | 11/14/23 | 2930000 | 2901684 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AbbVie Inc., Senior Notes | 2.600 | % | 11/21/24 | 2770000 | 2651941 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AbbVie Inc., Senior Notes | 2.950 | % | 11/21/26 | 390000 | 363239 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gilead Sciences Inc., Senior Notes | 0.750 | % | 9/29/23 | 590000 | 571766 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gilead Sciences Inc., Senior Notes | 3.700 | % | 4/1/24 | 690000 | 678695 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Biotechnology* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Biotechnology* |  |  |  | *7167325* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Health Care Equipment & Supplies — 0.1%* | &nbsp;&nbsp;&nbsp;&nbsp; *Health Care Equipment & Supplies — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Becton Dickinson and Co., Senior Notes | 3.363 | % | 6/6/24 | 580000 | *567097* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Health Care Providers & Services — 2.5%* | &nbsp;&nbsp;&nbsp;&nbsp; *Health Care Providers & Services — 2.5%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Centene Corp., Senior Notes | 4.250 | % | 12/15/27 | 360000 | 338424 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cigna Corp., Senior Notes | 3.750 | % | 7/15/23 | 2364000 | 2348907 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cigna Corp., Senior Notes | 4.125 | % | 11/15/25 | 2090000 | 2044271 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; CVS Health Corp., Senior Notes | 2.625 | % | 8/15/24 | 3630000 | 3489272 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; CVS Health Corp., Senior Notes | 3.875 | % | 7/20/25 | 2070000 | 2021977 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; CVS Health Corp., Senior Notes | 3.000 | % | 8/15/26 | 1570000 | 1468520 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Elevance Health Inc., Senior Notes | 3.300 | % | 1/15/23 | 930000 | 929326 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Humana Inc., Senior Notes | 0.650 | % | 8/3/23 | 3020000 | 2942812 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Humana Inc., Senior Notes | 4.500 | % | 4/1/25 | 590000 | 583362 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; UnitedHealth Group Inc., Senior Notes | 3.500 | % | 6/15/23 | 50000 | 49727 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; UnitedHealth Group Inc., Senior Notes | 0.550 | % | 5/15/24 | 1450000 | 1368833 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; UnitedHealth Group Inc., Senior Notes | 2.375 | % | 8/15/24 | 460000 | 442629 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; UnitedHealth Group Inc., Senior Notes | 3.750 | % | 7/15/25 | 420000 | 410983 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; UnitedHealth Group Inc., Senior Notes | 1.250 | % | 1/15/26 | 350000 | 317569 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; UnitedHealth Group Inc., Senior Notes | 3.700 | % | 5/15/27 | 1150000 | 1114255 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Health Care Providers & Services* |  |  |  |  | *19870867* | |

---

See Notes to Financial Statements.

Western Asset Short-Term Bond Fund 2022 Annual Report 19

------

##### [**Table of Contents**](#toc)
Schedule of investments (cont'd)

December 31, 2022

**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Security | Rate |  | Maturity<br>Date | Face<br>Amount | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Pharmaceuticals — 0.9%* | &nbsp;&nbsp;&nbsp;&nbsp; *Pharmaceuticals — 0.9%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Astrazeneca Finance LLC, Senior Notes | 0.700 | % | 5/28/24 | $3420000 | $3225181 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Bristol-Myers Squibb Co., Senior Notes | 2.900 | % | 7/26/24 | 301000 | 292375 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Teva Pharmaceutical Finance Netherlands III BV, Senior Notes | 2.800 | % | 7/21/23 | 1500000 | 1469295 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Teva Pharmaceutical Finance Netherlands III BV, Senior Notes | 3.150 | % | 10/1/26 | 1370000 | 1200846 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Teva Pharmaceutical Finance Netherlands III BV, Senior Notes | 4.750 | % | 5/9/27 | 1000000 | 905150 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Pharmaceuticals* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Pharmaceuticals* |  |  |  | *7092847* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Health Care** |  |  |  |  | **34698136** |  |
| **Industrials — 3.1%** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Aerospace & Defense — 1.4%* | &nbsp;&nbsp;&nbsp;&nbsp; *Aerospace & Defense — 1.4%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Avolon Holdings Funding Ltd., Senior Notes | 4.250 | % | 4/15/26 | 1510000 | 1370594 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Boeing Co., Senior Notes | 1.433 | % | 2/4/24 | 2970000 | 2847421 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Boeing Co., Senior Notes | 4.875 | % | 5/1/25 | 2880000 | 2860539 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Boeing Co., Senior Notes | 2.196 | % | 2/4/26 | 1640000 | 1491857 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; General Dynamics Corp., Senior Notes | 3.250 | % | 4/1/25 | 1340000 | 1299554 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; L3Harris Technologies Inc., Senior Notes | 3.850 | % | 6/15/23 | 810000 | 805392 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Aerospace & Defense* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Aerospace & Defense* |  |  |  | *10675357* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Airlines — 0.4%* | &nbsp;&nbsp;&nbsp;&nbsp; *Airlines — 0.4%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Delta Air Lines Inc., Senior Secured Notes | 7.000 | % | 5/1/25 | 1000000 | 1022848 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Hawaiian Brand Intellectual Property Ltd./ HawaiianMiles Loyalty Ltd., Senior Secured Notes | 5.750 | % | 1/20/26 | 30000 | 27207 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd., Senior Secured Notes | 8.000 | % | 9/20/25 | 538000 | 540674 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; United Airlines Inc., Senior Secured Notes | 4.375 | % | 4/15/26 | 800000 | 742901 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; United Airlines Inc., Senior Secured Notes | 4.625 | % | 4/15/29 | 1410000 | 1230155 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Airlines* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Airlines* |  |  |  | *3563785* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Building Products — 0.0%††* | &nbsp;&nbsp;&nbsp;&nbsp; *Building Products — 0.0%††* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Carrier Global Corp., Senior Notes | 2.242 | % | 2/15/25 | 62000 | *58449* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Commercial Services & Supplies — 0.1%* | &nbsp;&nbsp;&nbsp;&nbsp; *Commercial Services & Supplies — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Republic Services Inc., Senior Notes | 2.500 | % | 8/15/24 | 460000 | *441098* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Electrical Equipment — 0.0%††* | &nbsp;&nbsp;&nbsp;&nbsp; *Electrical Equipment — 0.0%††* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Vertiv Group Corp., Senior Secured Notes | 4.125 | % | 11/15/28 | 100000 | *85118* | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Industrial Conglomerates — 0.3%* | &nbsp;&nbsp;&nbsp;&nbsp; *Industrial Conglomerates — 0.3%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 3M Co., Senior Notes | 3.250 | % | 2/14/24 | 2150000 | *2110909* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Machinery — 0.2%* | &nbsp;&nbsp;&nbsp;&nbsp; *Machinery — 0.2%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; John Deere Capital Corp., Senior Notes | 0.450 | % | 6/7/24 | 2070000 | *1946583* | |

---

See Notes to Financial Statements.

20 Western Asset Short-Term Bond Fund 2022 Annual Report

------

##### [**Table of Contents**](#toc)
**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Road & Rail — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Canadian Pacific Railway Co., Senior Notes | 1.750% | 12/2/26 | $1340000 | $1195971 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; XPO Inc., Senior Notes | 6.250% | 5/1/25 | 22000 | 22299 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Road & Rail* |  |  |  | *1218270* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Trading Companies & Distributors — 0.6%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Air Lease Corp., Senior Notes | 0.700% | 2/15/24 | 1900000 | 1795539 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Air Lease Corp., Senior Notes | 1.875% | 8/15/26 | 3030000 | 2635408 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Trading Companies & Distributors* |  |  |  | *4430947* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Industrials** |  |  |  | **24530516** |  |
| **Information Technology — 2.0%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Communications Equipment — 0.0%††* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; CommScope Inc., Senior Secured Notes | 4.750% | 9/1/29 | 40000 | *32323* | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *IT Services — 0.5%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; International Business Machines Corp., Senior Notes | 3.000% | 5/15/24 | 910000 | 885486 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; PayPal Holdings Inc., Senior Notes | 1.650% | 6/1/25 | 2510000 | 2332420 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Visa Inc., Senior Notes | 3.150% | 12/14/25 | 520000 | 501898 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total IT Services* |  |  |  | *3719804* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Semiconductors & Semiconductor Equipment — 0.7%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Broadcom Corp./Broadcom Cayman Finance Ltd., Senior Notes | 3.625% | 1/15/24 | 790000 | 776781 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Broadcom Inc., Senior Notes | 3.150% | 11/15/25 | 230000 | 218108 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Intel Corp., Senior Notes | 3.700% | 7/29/25 | 1310000 | 1278973 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Microchip Technology Inc., Senior Secured Notes | 4.333% | 6/1/23 | 1340000 | 1334502 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Microchip Technology Inc., Senior Secured Notes | 0.983% | 9/1/24 | 360000 | 333569 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; NXP BV/NXP Funding LLC/NXP USA Inc., Senior Notes | 2.700% | 5/1/25 | 46000 | 43343 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Texas Instruments Inc., Senior Notes | 1.375% | 3/12/25 | 540000 | 504610 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; TSMC Arizona Corp., Senior Notes | 1.750% | 10/25/26 | 1150000 | 1027489 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Semiconductors & Semiconductor Equipment* |  |  |  | *5517375* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Software — 0.5%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Oracle Corp., Senior Notes | 2.400% | 9/15/23 | 1050000 | 1029435 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Workday Inc., Senior Notes | 3.500% | 4/1/27 | 3240000 | 3032901 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Software* |  |  |  | *4062336* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Technology Hardware, Storage & Peripherals — 0.3%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Apple Inc., Senior Notes | 1.125% | 5/11/25 | 2350000 | *2165588* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Information Technology** |  |  |  | **15497426** |  |

---

See Notes to Financial Statements.

Western Asset Short-Term Bond Fund 2022 Annual Report 21

------

##### [**Table of Contents**](#toc)
Schedule of investments (cont'd)

December 31, 2022

**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |  |
| **Materials — 0.8%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Chemicals — 0.0%††* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Orbia Advance Corp. SAB de CV, Senior Notes | 1.875% | 5/11/26 | $320000 | $*276845* | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Metals & Mining — 0.7%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Glencore Funding LLC, Senior Notes | 4.125% | 5/30/23 | 980000 | 975005 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Glencore Funding LLC, Senior Notes | 4.125% | 3/12/24 | 1840000 | 1811360 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Glencore Funding LLC, Senior Notes | 4.625% | 4/29/24 | 840000 | 829414 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Vale Overseas Ltd., Senior Notes | 6.875% | 11/21/36 | 751000 | 794098 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Yamana Gold Inc., Senior Notes | 4.625% | 12/15/27 | 710000 | 665985 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Metals & Mining* |  |  |  | *5075862* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Paper & Forest Products — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Suzano Austria GmbH, Senior Notes | 5.750% | 7/14/26 | 990000 | *994347* | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Materials** |  |  |  | **6347054** |  |
| **Real Estate — 0.0%††** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Equity Real Estate Investment Trusts (REITs) — 0.0%††* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; CTR Partnership LP/CareTrust Capital Corp., Senior Notes | 3.875% | 6/30/28 | 390000 | **331163** | <sup>(a)</sup> |
| **Utilities — 0.3%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Electric Utilities — 0.3%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pacific Gas and Electric Co., First Mortgage Bonds | 4.950% | 6/8/25 | 1190000 | 1172744 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Southern California Edison Co., First Mortgage Bonds | 0.975% | 8/1/24 | 1170000 | 1094787 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Utilities** |  |  |  | **2267531** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Corporate Bonds & Notes (Cost — $439,267,335)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Corporate Bonds & Notes (Cost — $439,267,335)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Corporate Bonds & Notes (Cost — $439,267,335)** |  | **416637414** |  |
| **Asset-Backed Securities — 13.2%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; ABFC Trust, 2002-WF2 A2 (1 mo. USD LIBOR + 1.125%) | 5.514% | 5/25/32 | 17780 | 17510 | <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; ABFC Trust, 2003-OPT1 A3 (1 mo. USD LIBOR + 0.680%) | 5.069% | 4/25/33 | 490227 | 451871 | <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; ABFC Trust, 2004-OPT2 M1 (1 mo. USD LIBOR + 0.825%) | 5.214% | 8/25/33 | 1532 | 1529 | <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; ABPCI Direct Lending Fund CLO LP, 2020-10A A1A (3 mo. USD LIBOR + 1.950%) | 6.193% | 1/20/32 | 980000 | 965816 | <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Allegro CLO Ltd., 2014-1RA A1 (3 mo. USD LIBOR + 1.080%) | 5.358% | 10/21/28 | 1012723 | 1000190 | <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Allegro CLO Ltd., 2019-2A A1A (3 mo. USD LIBOR + 1.390%) | 5.617% | 1/19/33 | 1650000 | 1620048 | <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; American Express Credit Account Master Trust, 2018-9 A (1 mo. USD LIBOR + 0.380%) | 4.698% | 4/15/26 | 4050000 | 4047811 | <sup>(c)</sup> |

---

See Notes to Financial Statements.

22 Western Asset Short-Term Bond Fund 2022 Annual Report

------

##### [**Table of Contents**](#toc)
**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |
| **Asset-Backed Securities — continued** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AMMC CLO Ltd., 2020-23A A1R (3 mo. USD LIBOR + 1.040%) | 5.119% | 10/17/31 | $3140000 | $3092828 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Arbor Realty Commercial Real Estate Notes Ltd., 2021-FL3 A (1 mo. USD LIBOR + 1.070%) | 5.388% | 8/15/34 | 1320000 | 1260003 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Avis Budget Rental Car Funding AESOP LLC, 2020-2A A | 2.020% | 2/20/27 | 940000 | 853214 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Avis Budget Rental Car Funding AESOP LLC, 2021-1A A | 1.380% | 8/20/27 | 1230000 | 1072914 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Avis Budget Rental Car Funding AESOP LLC, 2021-1A C | 2.130% | 8/20/27 | 980000 | 816497 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Ballyrock CLO Ltd., 2019-2A A1BR (3 mo. USD LIBOR + 1.200%) | 5.875% | 11/20/30 | 490000 | 477275 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Battery Park CLO Ltd., 2022-1A A1 (3 mo. Term SOFR + 2.210%) | 6.390% | 10/20/35 | 1150000 | 1141585 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BCRED MML CLO LLC, 2021-1A A (3 mo. USD LIBOR + 1.480%) | 5.559% | 1/15/35 | 1050000 | 1010339 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BDS Ltd., 2021-FL10 D (1 mo. USD LIBOR + 2.850%) | 7.189% | 12/16/36 | 1320000 | 1218233 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BlueMountain CLO Ltd., 2018-22A A1 (3 mo. USD LIBOR + 1.080%) | 5.159% | 7/15/31 | 770000 | 757295 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bravo Mortgage Asset Trust, 2006-1A M1 (1 mo. USD LIBOR + 0.600%) | 4.989% | 7/25/36 | 749500 | 636750 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Capital One Multi-Asset Execution Trust, 2018-A2 A2 (1 mo. USD LIBOR + 0.350%) | 4.668% | 3/16/26 | 2220000 | 2221564 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Carlyle Global Market Strategies CLO Ltd., 2014-1A A1R2 (3 mo. USD LIBOR + 0.970%) | 5.049% | 4/17/31 | 667969 | 658190 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Carlyle Global Market Strategies CLO Ltd., 2014- 3RA A1A (3 mo. USD LIBOR + 1.050%) | 5.408% | 7/27/31 | 376896 | 371506 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CBAM Ltd., 2017-1A A1 (3 mo. USD LIBOR + 1.250%) | 5.493% | 7/20/30 | 348860 | 345611 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CCG Receivables Trust, 2021-2 A2 | 0.540% | 3/14/29 | 1690232 | 1614779 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Cedar Funding CLO Ltd., 2016-5A AFRR | 1.937% | 7/17/31 | 1700000 | 1579566 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Cerberus Loan Funding LP, 2019-2A A1 (3 mo. USD LIBOR + 1.800%) | 5.879% | 1/15/32 | 470000 | 464631 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Cerberus Loan Funding LP, 2020-1A A (3 mo. USD LIBOR + 1.850%) | 5.929% | 10/15/31 | 500042 | 497940 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Countrywide Asset-Backed Certificates Trust, 2002-S3 M1 | 4.800% | 5/25/32 | 2000 | 1732 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CWABS Revolving Home Equity Loan Trust, 2004-B 2A (1 mo. USD LIBOR + 0.220%) | 4.538% | 2/15/29 | 519595 | 460485 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; DB Master Finance LLC, 2021-1A A23 | 2.791% | 11/20/51 | 1306800 | 1010622 <sup>(a)</sup> |

---

See Notes to Financial Statements.

Western Asset Short-Term Bond Fund 2022 Annual Report 23

------

##### [**Table of Contents**](#toc)
Schedule of investments (cont'd)

December 31, 2022

**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |
| **Asset-Backed Securities — continued** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dryden CLO Ltd., 2019-80A BR (3 mo. Term SOFR + 1.750%) | 5.614% | 1/17/33 | $1710000 | $1605773 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Dryden CLO Ltd., 2019-75A AR2 (3 mo. USD LIBOR + 1.040%) | 5.119% | 4/15/34 | 250000 | 241936 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Enterprise Fleet Financing LLC, 2022-3-A2 | 4.380% | 7/20/29 | 1130000 | 1105428 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Fortress Credit BSL Ltd., 2021-1A A (3 mo. USD LIBOR + 1.470%) | 5.713% | 4/20/33 | 1990000 | 1939355 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Foundation Finance Trust, 2021-1A A | 1.270% | 5/15/41 | 411418 | 368247 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Galaxy CLO Ltd., 2018-26A A (3 mo. USD LIBOR + 1.200%) | 5.865% | 11/22/31 | 450000 | 444423 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; GCI Funding LLC, 2021-1 A | 2.380% | 6/18/46 | 586313 | 499278 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; GoldenTree Loan Management US CLO 10 Ltd., 2021-10A A (3 mo. USD LIBOR + 1.100%) | 5.343% | 7/20/34 | 2590000 | 2511683 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; GoldenTree Loan Opportunities Ltd., 2014-9A AR2 (3 mo. USD LIBOR + 1.110%) | 5.525% | 10/29/29 | 551382 | 547017 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Golub Capital Partners CLO LP, 2021-54A A (3 mo. USD LIBOR + 1.530%) | 6.062% | 8/5/33 | 1980000 | 1906083 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Golub Capital Partners CLO Ltd., 2018-36A B (3 mo. USD LIBOR + 1.650%) | 6.182% | 2/5/31 | 1270000 | 1218331 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Golub Capital Partners CLO Ltd., 2020-47A A1 (3 mo. USD LIBOR + 1.680%) | 6.212% | 5/5/32 | 1080000 | 1042765 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Golub Capital Partners CLO Ltd., 2015-25A AR (3 mo. USD LIBOR + 1.380%) | 5.912% | 5/5/30 | 1286529 | 1268888 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; GoodLeap Sustainable Home Solutions Trust, 2021-4GS A | 1.930% | 7/20/48 | 617853 | 472337 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Great Lakes Kcap F3c Senior LLC, 2017-1A A (3 mo. USD LIBOR + 1.900%) | 6.646% | 12/20/29 | 1358633 | 1356003 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Greenwood Park CLO Ltd., 2018-1A A2 (3 mo. USD LIBOR + 1.010%) | 5.089% | 4/15/31 | 500000 | 491197 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Greystone CRE Notes Ltd., 2021-FL3 A (1 mo. USD LIBOR + 1.020%) | 5.338% | 7/15/39 | 1030000 | 983364 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Greywolf CLO Ltd., 2018-1A A2 (3 mo. USD LIBOR + 1.890%) | 5.936% | 4/26/31 | 650000 | 627423 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Grippen Park CLO Ltd., 2017-1A A (3 mo. USD LIBOR + 1.260%) | 5.503% | 1/20/30 | 1199446 | 1187136 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Grippen Park CLO Ltd., 2017-1A C (3 mo. USD LIBOR + 2.300%) | 6.543% | 1/20/30 | 750000 | 725229 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Halsey Point CLO Ltd., 2019-1A A1A1 (3 mo. USD LIBOR + 1.350%) | 5.593% | 1/20/33 | 1360000 | 1328890 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Hertz Vehicle Financing LLC, 2021-1A A | 1.210% | 12/26/25 | 1250000 | 1155991 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Hertz Vehicle Financing LP, 2021-2A A | 1.680% | 12/27/27 | 530000 | 462233 <sup>(a)</sup> |

---

See Notes to Financial Statements.

24 Western Asset Short-Term Bond Fund 2022 Annual Report

------

##### [**Table of Contents**](#toc)
**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |
| **Asset-Backed Securities — continued** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; HGI CRE CLO Ltd., 2021-FL2 A (1 mo. USD LIBOR + 1.000%) | 5.326% | 9/17/36 | $1320000 | $1274712 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Hildene Community Funding CDO Ltd., 2015-1A ARR | 2.600% | 11/1/35 | 1410000 | 1190534 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Home Equity Asset Trust, 2005-6 M5 (1 mo. USD LIBOR + 0.945%) | 5.334% | 12/25/35 | 380000 | 350976 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; JPMorgan Mortgage Acquisition Trust, 2007- CH2 MV2 (1 mo. USD LIBOR + 0.300%) | 4.689% | 1/25/37 | 420000 | 402297 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; KKR Financial CLO Ltd., 2021 A (3 mo. USD LIBOR + 1.000%) | 5.079% | 4/15/31 | 460000 | 451964 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; LCM LP, 19A AR (3 mo. USD LIBOR + 1.240%) | 5.319% | 7/15/27 | 53899 | 53804 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Magnetite Ltd., 2015-14RA A2 (3 mo. USD LIBOR + 1.120%) | 5.314% | 10/18/31 | 730000 | 717325 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; MASTR Specialized Loan Trust, 2006-3 A (1 mo. USD LIBOR + 0.260%) | 4.649% | 6/25/46 | 36120 | 34158 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Mercury Financial Credit Card Master Trust, 2021-1A B | 2.330% | 3/20/26 | 920000 | 857063 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; MF1 LLC, 2022-FL9 A (1 mo. Term SOFR + 2.150%) | 6.471% | 6/19/37 | 1450000 | 1430931 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; MF1 Ltd., 2021-FL7 A (1 mo. USD LIBOR + 1.080%) | 5.419% | 10/16/36 | 1060000 | 1018390 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Midocean Credit CLO, 2018-8A A1R (3 mo. USD LIBOR + 1.050%) | 5.725% | 2/20/31 | 1300000 | 1278012 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Midocean Credit CLO, 2018-9A B (3 mo. USD LIBOR + 1.750%) | 5.993% | 7/20/31 | 1750000 | 1691904 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Myers Park CLO Ltd., 2018-1A B1 (3 mo. USD LIBOR + 1.600%) | 5.843% | 10/20/30 | 250000 | 240343 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Navient Student Loan Trust, 2016-6A A3 (1 mo. USD LIBOR + 1.300%) | 5.689% | 3/25/66 | 1940000 | 1913168 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Navient Student Loan Trust, 2021-1A A1B (1 mo. USD LIBOR + 0.600%) | 4.989% | 12/26/69 | 735256 | 704054 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Nelnet Student Loan Trust, 2014-6A A (1 mo. USD LIBOR + 0.650%) | 5.039% | 11/25/52 | 276243 | 267768 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Nelnet Student Loan Trust, 2021-A A2 (1 mo. USD LIBOR + 1.030%) | 5.383% | 4/20/62 | 1310000 | 1225012 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Nelnet Student Loan Trust, 2021-A APT1 | 1.360% | 4/20/62 | 644402 | 570799 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Neuberger Berman Loan Advisers CLO Ltd., 2017-24A AR (3 mo. USD LIBOR + 1.020%) | 5.247% | 4/19/30 | 493505 | 486779 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Neuberger Berman Loan Advisers CLO Ltd., 2021-40A A (3 mo. USD LIBOR + 1.060%) | 5.139% | 4/16/33 | 600000 | 592093 <sup>(a)(c)</sup> |

---

See Notes to Financial Statements.

Western Asset Short-Term Bond Fund 2022 Annual Report 25

------

##### [**Table of Contents**](#toc)
Schedule of investments (cont'd)

December 31, 2022

**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |
| **Asset-Backed Securities — continued** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Neuberger Berman Loan Advisers CLO Ltd., 2018-29A A1 (3 mo. USD LIBOR + 1.130%) | 5.357% | 10/19/31 | $250000 | $247014 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; NextGear Floorplan Master Owner Trust, 2020-1A A2 | 1.550% | 2/15/25 | 1320000 | 1314793 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Ocean Trails CLO, 2019-7A AR (3 mo. USD LIBOR + 1.010%) | 5.089% | 4/17/30 | 1520743 | 1498427 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; OCP CLO Ltd., 2014-5A A1R (3 mo. USD LIBOR + 1.080%) | 5.407% | 4/26/31 | 970000 | 952786 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Octagon Investment Partners Ltd., 2014-1A AAR3 (3 mo. USD LIBOR + 1.000%) | 5.650% | 2/14/31 | 260000 | 255760 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Octagon Investment Partners Ltd., 2018-1A A1A (3 mo. USD LIBOR + 1.060%) | 5.303% | 1/20/31 | 2080000 | 2055040 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Octagon Investment Partners Ltd., 2020-1A AR (3 mo. USD LIBOR + 1.160%) | 5.403% | 7/20/34 | 750000 | 731598 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; OHA Loan Funding Ltd., 2013-2A AR (3 mo. USD LIBOR + 1.040%) | 5.732% | 5/23/31 | 240000 | 236434 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Option One Mortgage Loan Trust, 2007-FXD1 1A1 | 5.866% | 1/25/37 | 442304 | 359543 |
| &nbsp;&nbsp;&nbsp;&nbsp; Option One Mortgage Loan Trust, 2007-FXD1 2A1 | 5.866% | 1/25/37 | 395674 | 332685 |
| &nbsp;&nbsp;&nbsp;&nbsp; Owl Rock CLO Ltd., 2019-1A A (3 mo. USD LIBOR + 1.800%) | 6.475% | 5/20/31 | 720000 | 702500 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Parliament Funding Ltd., 2020-1A AR (3 mo. USD LIBOR + 1.250%) | 5.493% | 10/20/31 | 1950000 | 1927076 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Recette CLO Ltd., 2015-1A ARR (3 mo. USD LIBOR + 1.080%) | 5.323% | 4/20/34 | 350000 | 340488 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Santander Drive Auto Receivables Trust, 2021-2 B | 0.590% | 9/15/25 | 623227 | 621503 |
| &nbsp;&nbsp;&nbsp;&nbsp; Saranac CLO Ltd., 2014-3A BR (3 mo. USD LIBOR + 1.850%) | 6.603% | 6/22/30 | 690000 | 673277 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Saxon Asset Securities Trust, 2003-3 M1 (1 mo. USD LIBOR + 0.975%) | 3.521% | 12/25/33 | 18440 | 17732 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Saxon Asset Securities Trust, 2006-3 A4 (1 mo. USD LIBOR + 0.240%) | 4.629% | 10/25/46 | 1420000 | 1205698 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; SLM Private Credit Student Loan Trust, 2005-A A4 (3 mo. USD LIBOR + 0.310%) | 5.079% | 12/15/38 | 1090132 | 1039403 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; SLM Private Credit Student Loan Trust, 2006-A A5 (3 mo. USD LIBOR + 0.290%) | 5.059% | 6/15/39 | 782420 | 737172 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; SLM Private Credit Student Loan Trust, 2006-B A5 (3 mo. USD LIBOR + 0.270%) | 5.039% | 12/15/39 | 436063 | 412734 <sup>(c)</sup> |

---

See Notes to Financial Statements.

26 Western Asset Short-Term Bond Fund 2022 Annual Report

------

##### [**Table of Contents**](#toc)
**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |
| **Asset-Backed Securities — continued** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; SLM Student Loan Trust, 2003-4 A5A (3 mo. USD LIBOR + 0.750%) | 5.519% | 3/15/33 | $37164 | $36631 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; SLM Student Loan Trust, 2003-10A A4 (3 mo. USD LIBOR + 0.670%) | 5.439% | 12/17/68 | 773447 | 750031 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; SLM Student Loan Trust, 2005-8 A5 (3 mo. USD LIBOR + 0.170%) | 4.528% | 1/25/40 | 1344381 | 1276980 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; SMB Private Education Loan Trust, 2016-C A2A | 2.340% | 9/15/34 | 497240 | 473739 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; SMB Private Education Loan Trust, 2021-A A2A1 (1 mo. USD LIBOR + 0.730%) | 5.048% | 1/15/53 | 493269 | 472492 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; SMB Private Education Loan Trust, 2021-A A2B | 1.590% | 1/15/53 | 527885 | 461601 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; SMB Private Education Loan Trust, 2021-A C | 2.990% | 1/15/53 | 970000 | 811658 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Sonic Capital LLC, 2020-1A A2I | 3.845% | 1/20/50 | 87900 | 78346 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Stonepeak ABS, 2021-1A A | 2.675% | 2/28/33 | 1408261 | 1217429 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Stratus CLO Ltd., 2021-3A A (3 mo. USD LIBOR + 0.950%) | 5.193% | 12/29/29 | 1335169 | 1317639 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Stratus Static CLO Ltd., 2022-3A A (3 mo. Term SOFR + 2.150%) | 0.010% | 10/20/31 | 750000 | 748142 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Structured Asset Securities Corp., 2004-SC1 A | 7.898% | 12/25/29 | 5459 | 4727 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Structured Asset Securities Corp. Mortgage Loan Trust, 2006-GEL4 M1 (1 mo. USD LIBOR + 0.570%) | 4.959% | 10/25/36 | 355307 | 346578 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Structured Asset Securities Corp. Trust, 2005- SC1 1A2 | 6.693% | 5/25/31 | 483677 | 389748 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; STWD Ltd., 2022-FL3 A (30 Day Average SOFR + 1.350%) | 5.157% | 11/15/38 | 250000 | 242204 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Symphony CLO Ltd., 2016-18A BR (3 mo. USD LIBOR + 1.600%) | 5.925% | 7/23/33 | 1040000 | 1000619 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Symphony CLO Ltd., 2018-19A A (3 mo. USD LIBOR + 0.960%) | 5.039% | 4/16/31 | 260000 | 255130 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; TCI-Flatiron CLO Ltd., 2016-1A AR3 (3 mo. Term SOFR + 1.100%) | 4.964% | 1/17/32 | 1200000 | 1185365 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; TRP LLC, 2021-1 A | 2.070% | 6/19/51 | 907741 | 762315 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Voya CLO Ltd., 2015-1A A1R (3 mo. USD LIBOR + 0.900%) | 5.094% | 1/18/29 | 594616 | 588482 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Voya CLO Ltd., 2018-3A A1A (3 mo. USD LIBOR + 1.150%) | 5.229% | 10/15/31 | 350000 | 345510 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Voya CLO Ltd., 2018-4A A1AR (3 mo. USD LIBOR + 1.040%) | 5.119% | 1/15/32 | 820000 | 806205 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Wells Fargo Home Equity Asset-Backed Securities Trust, 2006-1 M5 (1 mo. USD LIBOR + 0.555%) | 4.944% | 5/25/36 | 1340000 | 1202487 <sup>(c)</sup> |

---

See Notes to Financial Statements.

Western Asset Short-Term Bond Fund 2022 Annual Report 27

------

##### [**Table of Contents**](#toc)
Schedule of investments (cont'd)

December 31, 2022

**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |
| **Asset-Backed Securities — continued** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Whitebox CLO Ltd., 2019-1A ANAR (3 mo. USD LIBOR + 1.130%) | 5.455% | 7/24/32 | $2040000 | $1997313 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Whitebox CLO Ltd., 2020-2A A1R (3 mo. USD LIBOR + 1.220%) | 5.545% | 10/24/34 | 610000 | 589195 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Whitebox CLO Ltd., 2021-3A A1 (3 mo. USD LIBOR + 1.220%) | 5.299% | 10/15/34 | 660000 | 637471 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; ZAIS CLO Ltd., 2019-13A A1A (3 mo. USD LIBOR + 1.490%) | 5.569% | 7/15/32 | 300000 | 271131 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Asset-Backed Securities (Cost — $108,251,504)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Asset-Backed Securities (Cost — $108,251,504)** |  |  | **103840261** |
| **Collateralized Mortgage Obligations** <sup>(e)</sup> **— 12.0%** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Alternative Loan Trust, 2005-56 4A1 (1 mo. USD LIBOR + 0.620%) | 5.009% | 11/25/35 | 64928 | 56347 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; AREIT Trust, 2021-CRE5 A (1 mo. USD LIBOR + 1.080%) | 5.419% | 11/17/38 | 706191 | 680618 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; AREIT Trust, 2022-CRE6 A (30 Day Average SOFR + 1.250%) | 5.076% | 1/16/37 | 1254906 | 1197510 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Banc of America Mortgage Trust, 2003-C B1 | 2.706% | 4/25/33 | 17884 | 3329 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BANK, 2017-BNK9 ASB | 3.470% | 11/15/54 | 1279989 | 1223410 |
| &nbsp;&nbsp;&nbsp;&nbsp; BANK, 2022-BNK39 XA, IO | 0.426% | 2/15/55 | 60754819 | 1774211 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bear Stearns ALT-A Trust, 2007-1 1A1 (1 mo. USD LIBOR + 0.320%) | 4.709% | 1/25/47 | 84911 | 67069 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Benchmark Mortgage Trust, 2021-B31 A5 | 2.669% | 12/15/54 | 1320000 | 1094149 |
| &nbsp;&nbsp;&nbsp;&nbsp; BPR Trust, 2021-TY C (1 mo. USD LIBOR + 1.700%) | 6.018% | 9/15/38 | 990000 | 912435 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BX Commercial Mortgage Trust, 2021-CIP A (1 mo. USD LIBOR + 0.921%) | 5.239% | 12/15/38 | 1320000 | 1275801 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BX Commercial Mortgage Trust, 2021-VOLT A (1 mo. USD LIBOR + 0.700%) | 5.018% | 9/15/36 | 1000000 | 964712 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BX Commercial Mortgage Trust, 2021-XL2 A (1 mo. USD LIBOR + 0.689%) | 5.007% | 10/15/38 | 1529080 | 1471919 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BX Commercial Mortgage Trust, 2021-XL2 J (1 mo. USD LIBOR + 3.890%) | 8.208% | 10/15/38 | 917448 | 835771 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BX Commercial Mortgage Trust, 2022-AHP A (1 mo. Term SOFR + 0.990%) | 5.326% | 1/17/39 | 1270000 | 1217748 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BX Mortgage Trust, 2021-PAC A (1 mo. USD LIBOR + 0.689%) | 5.007% | 10/15/36 | 330000 | 317260 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BX Trust, 2019-OC11 A | 3.202% | 12/9/41 | 680000 | 570734 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BX Trust, 2021-ARIA A (1 mo. USD LIBOR + 0.899%) | 5.217% | 10/15/36 | 1650000 | 1572381 <sup>(a)(c)</sup> |

---

See Notes to Financial Statements.

28 Western Asset Short-Term Bond Fund 2022 Annual Report

------

##### [**Table of Contents**](#toc)
**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |
| **Collateralized Mortgage Obligations** <sup>(e)</sup> **— continued** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; BX Trust, 2021-ARIA D (1 mo. USD LIBOR + 1.895%) | 6.213% | 10/15/36 | $930000 | $862894 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BX Trust, 2021-ARIA G (1 mo. USD LIBOR + 3.142%) | 7.460% | 10/15/36 | 990000 | 888991 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BX Trust, 2021-BXMF A (1 mo. USD LIBOR + 0.636%) | 4.954% | 10/15/26 | 1640000 | 1574602 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BX Trust, 2021-SDMF F (1 mo. USD LIBOR + 1.937%) | 6.255% | 9/15/34 | 1170000 | 1082689 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BX Trust, 2022-CLS A | 5.760% | 10/13/27 | 1630000 | 1599111 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BX Trust, 2022-LBA6 A (1 mo. Term SOFR + 1.000%) | 5.336% | 1/15/39 | 1290000 | 1248516 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BX Trust, 2022-PSB A (1 mo. Term SOFR + 2.451%) | 6.787% | 8/15/39 | 1621243 | 1620080 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CD Mortgage Trust, 2016-CD2 A4 | 3.526% | 11/10/49 | 960000 | 893479 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CFK Trust, 2020-MF2 F | 3.458% | 3/15/39 | 1270000 | 992671 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Chase Mortgage Finance Trust, 2007-A1 2A3 | 3.645% | 2/25/37 | 6793 | 6229 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Chevy Chase Funding LLC Mortgage-Backed Certificates, 2004-3A A2 (1 mo. USD LIBOR + 0.300%) | 4.689% | 8/25/35 | 1327 | 1198 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Chevy Chase Funding LLC Mortgage-Backed Certificates, 2004-4A A2 (1 mo. USD LIBOR + 0.580%) | 4.969% | 10/25/35 | 11307 | 10293 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Chevy Chase Funding LLC Mortgage-Backed Certificates, 2005-1A A2 (1 mo. USD LIBOR + 0.200%) | 4.589% | 1/25/36 | 2467 | 2176 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Citigroup Commercial Mortgage Trust, 2013- 375P A | 3.251% | 5/10/35 | 330000 | 309406 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Citigroup Commercial Mortgage Trust, 2017-B1 A4 | 3.458% | 8/15/50 | 930000 | 852980 |
| &nbsp;&nbsp;&nbsp;&nbsp; Citigroup Mortgage Loan Trust, 2007-AR4 2A1A | 2.524% | 3/25/37 | 19631 | 18505 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Countrywide Home Loans Reperforming REMIC Trust, 2006-R2 AF1 (1 mo. USD LIBOR + 0.420%) | 4.809% | 7/25/36 | 86287 | 82325 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CSMC Trust, 2014-11R 15A2 | 3.683% | 1/27/36 | 610619 | 556684 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CSMC Trust, 2019-UVIL A | 3.160% | 12/15/41 | 1730000 | 1413020 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CSMC Trust, 2020-RPL4 A1 | 2.000% | 1/25/60 | 307121 | 273880 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CSMC Trust, 2020-TMIC A (1 mo. USD LIBOR + 3.000%) | 7.818% | 12/15/35 | 1350000 | 1346127 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; DSLA Mortgage Loan Trust, 2005-AR1 2A1A (1 mo. USD LIBOR + 0.500%) | 4.839% | 2/19/45 | 10906 | 10517 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Ellington Financial Mortgage Trust, 2021-2 A1 | 0.931% | 6/25/66 | 481384 | 372641 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Ellington Financial Mortgage Trust, 2022-1 A1 | 2.206% | 1/25/67 | 1158679 | 974759 <sup>(a)(c)</sup> |

---

See Notes to Financial Statements.

Western Asset Short-Term Bond Fund 2022 Annual Report 29

------

##### [**Table of Contents**](#toc)
Schedule of investments (cont'd)

December 31, 2022

**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |
| **Collateralized Mortgage Obligations** <sup>(e)</sup> **— continued** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; ELP Commercial Mortgage Trust, 2021-ELP A (1 mo. USD LIBOR + 0.701%) | 5.019% | 11/15/38 | $2310000 | $2220835 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Extended Stay America Trust, 2021-ESH A (1 mo. USD LIBOR + 1.080%) | 5.398% | 7/15/38 | 1386193 | 1348315 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) REMIC, 2525 AM | 4.500% | 4/15/32 | 59653 | 58833 |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) REMIC, 3877 FA, PAC-1 (1 mo. USD LIBOR + 0.350%) | 4.668% | 11/15/40 | 7944 | 7936 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) REMIC, Structured Agency Credit Risk Debt Notes, 2020-DNA1 B1 (1 mo. USD LIBOR + 2.300%) | 6.689% | 1/25/50 | 230000 | 217309 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) REMIC, Structured Agency Credit Risk Debt Notes, 2020-DNA2 M2 (1 mo. USD LIBOR + 1.850%) | 6.239% | 2/25/50 | 167406 | 167135 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) REMIC, Structured Agency Credit Risk Debt Notes, 2020-DNA6 M2 (30 Day Average SOFR + 2.000%) | 5.928% | 12/25/50 | 1140939 | 1133690 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) REMIC, Structured Agency Credit Risk Debt Notes, 2021-DNA1 M2 (30 Day Average SOFR + 1.800%) | 5.728% | 1/25/51 | 191905 | 187484 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) REMIC, Structured Agency Credit Risk Debt Notes, 2022-DNA3 M1A (30 Day Average SOFR + 2.000%) | 5.928% | 4/25/42 | 384484 | 382741 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) REMIC, Structured Agency Credit Risk Debt Notes, 2022-DNA3 M1B (30 Day Average SOFR + 2.900%) | 6.828% | 4/25/42 | 590000 | 583838 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) Seasoned Credit Risk Transfer Trust, 2018-1 M | 4.750% | 5/25/57 | 676673 | 612602 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) Seasoned Credit Risk Transfer Trust, 2019-1 M | 4.750% | 7/25/58 | 1040000 | 911396 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) Seasoned Credit Risk Transfer Trust, 2020-2 M | 4.250% | 11/25/59 | 950000 | 809082 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) — CAS, 2014-C04 1M2 (1 mo. USD LIBOR + 4.900%) | 9.289% | 11/25/24 | 128998 | 132439 <sup>(a)(c)</sup> |

---

See Notes to Financial Statements.

30 Western Asset Short-Term Bond Fund 2022 Annual Report

------

##### [**Table of Contents**](#toc)
**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |
| **Collateralized Mortgage Obligations** <sup>(e)</sup> **— continued** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) — CAS, 2017-C07 1B1 (1 mo. USD LIBOR + 4.000%) | 8.389% | 5/25/30 | $370000 | $379864 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) — CAS, 2018-C01 1B1 (1 mo. USD LIBOR + 3.550%) | 7.939% | 7/25/30 | 410000 | 417826 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) — CAS, 2018-C05 1B1 (1 mo. USD LIBOR + 4.250%) | 8.639% | 1/25/31 | 190000 | 196553 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) — CAS, 2019-R07 1M2 (1 mo. USD LIBOR + 2.100%) | 6.489% | 10/25/39 | 54329 | 54203 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) — CAS, 2020-R01 1M2 (1 mo. USD LIBOR + 2.050%) | 6.439% | 1/25/40 | 130639 | 129820 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) — CAS, 2022-R04 1M2 (30 Day Average SOFR + 3.100%) | 7.028% | 3/25/42 | 540000 | 538739 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) ACES, 2019-M19 A2 | 2.560% | 9/25/29 | 194002 | 172717 |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) ACES, 2019-M28 AV | 2.232% | 2/25/27 | 43382 | 40151 |
| &nbsp;&nbsp;&nbsp;&nbsp; Flagstar Mortgage Trust, 2018-2 A4 | 3.500% | 4/25/48 | 15837 | 15550 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Freddie Mac Structured Pass-Through Certificates, T-51 1A | 6.500% | 9/25/43 | 40755 | 41789 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2010-H02 FA (1 mo. USD LIBOR + 0.680%) | 4.735% | 2/20/60 | 25458 | 25290 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2010-H03 FA (1 mo. USD LIBOR + 0.550%) | 4.605% | 3/20/60 | 225527 | 224247 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2010-H10 FB (1 mo. USD LIBOR + 1.000%) | 5.055% | 5/20/60 | 315517 | 315641 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2010-H20 AF (1 mo. USD LIBOR + 0.330%) | 4.172% | 10/20/60 | 591646 | 586095 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2010-H26 LF (1 mo. USD LIBOR + 0.350%) | 4.148% | 8/20/58 | 532016 | 527099 <sup>(c)</sup> |

---

See Notes to Financial Statements.

Western Asset Short-Term Bond Fund 2022 Annual Report 31

------

##### [**Table of Contents**](#toc)
Schedule of investments (cont'd)

December 31, 2022

**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |
| **Collateralized Mortgage Obligations** <sup>(e)</sup> **— continued** | **Collateralized Mortgage Obligations** <sup>(e)</sup> **— continued** | **Collateralized Mortgage Obligations** <sup>(e)</sup> **— continued** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2011-H01 AF (1 mo. USD LIBOR + 0.450%) | 4.292% | 11/20/60 | $750175 | $745157 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2011-H03 FA (1 mo. USD LIBOR + 0.500%) | 4.342% | 1/20/61 | 63348 | 62908 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2011-H05 FB (1 mo. USD LIBOR + 0.500%) | 4.342% | 12/20/60 | 89247 | 88539 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2011-H06 FA (1 mo. USD LIBOR + 0.450%) | 4.292% | 2/20/61 | 124818 | 123816 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2011-H07 FA (1 mo. USD LIBOR + 0.500%) | 4.342% | 2/20/61 | 65890 | 65407 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2011-H19 FA (1 mo. USD LIBOR + 0.470%) | 4.312% | 8/20/61 | 281806 | 279894 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2012-H21 FA (1 mo. USD LIBOR + 0.500%) | 4.342% | 7/20/62 | 2247684 | 2229863 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2012-H23 SA (1 mo. USD LIBOR + 0.530%) | 4.372% | 10/20/62 | 100107 | 99515 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2012-H23 WA (1 mo. USD LIBOR + 0.520%) | 4.362% | 10/20/62 | 74518 | 73985 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2013-H02 FD (1 mo. USD LIBOR + 0.340%) | 4.182% | 12/20/62 | 736133 | 728640 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2013-H08 BF (1 mo. USD LIBOR + 0.400%) | 4.242% | 3/20/63 | 327394 | 323588 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2013-H14 FC (1 mo. USD LIBOR + 0.470%) | 4.312% | 6/20/63 | 75784 | 75217 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2013-H14 FD (1 mo. USD LIBOR + 0.470%) | 4.312% | 6/20/63 | 33962 | 33692 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2013-H14 FG (1 mo. USD LIBOR + 0.470%) | 4.312% | 5/20/63 | 31505 | 31255 <sup>(c)</sup> |

---

See Notes to Financial Statements.

32 Western Asset Short-Term Bond Fund 2022 Annual Report

------

##### [**Table of Contents**](#toc)
**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |
| **Collateralized Mortgage Obligations** <sup>(e)</sup> **— continued** | **Collateralized Mortgage Obligations** <sup>(e)</sup> **— continued** | **Collateralized Mortgage Obligations** <sup>(e)</sup> **— continued** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2021-H03 FA (30 Day Average SOFR + 0.380%) | 4.206% | 4/20/70 | $2331720 | $2292608 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2021-H16 FG (30 Day Average SOFR + 0.300%) | 3.954% | 9/20/71 | 2482919 | 2433413 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA), 2022-H08 FA (30 Day Average SOFR + 0.750%) | 3.291% | 4/20/72 | 2427297 | 2351058 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; GS Mortgage Securities Corp. Trust, 2021-IP A (1 mo. USD LIBOR + 0.950%) | 5.268% | 10/15/36 | 990000 | 925243 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Hawaii Hotel Trust, 2019-MAUI F (1 mo. USD LIBOR + 2.750%) | 7.068% | 5/15/38 | 1000000 | 952865 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Impac CMB Trust, 2007-A A (1 mo. USD LIBOR + 0.500%) | 4.889% | 5/25/37 | 41014 | 38241 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; IMPAC Secured Assets Corp., 2006-3 A7 (1 mo. USD LIBOR + 0.540%) | 4.929% | 11/25/36 | 745283 | 553680 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; IndyMac INDX Mortgage Loan Trust, 2004-AR14 2A1A (1 mo. USD LIBOR + 0.720%) | 5.109% | 1/25/35 | 46709 | 35947 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; JPMDB Commercial Mortgage Securities Trust, 2017-C7 A5 | 3.409% | 10/15/50 | 893000 | 821556 |
| &nbsp;&nbsp;&nbsp;&nbsp; JPMorgan Chase Commercial Mortgage Securities Trust, 2020-NNN GFX | 4.688% | 1/16/37 | 1350000 | 1081093 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; JPMorgan Chase Commercial Mortgage Securities Trust, 2021-NYAH F (1 mo. USD LIBOR + 2.190%) | 6.508% | 6/15/38 | 1320000 | 1237894 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; JPMorgan Resecuritization Trust, 2009-10 7A2 | 6.054% | 2/26/37 | 1654241 | 742678 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Luminent Mortgage Trust, 2006-7 2A2 (1 mo. USD LIBOR + 0.440%) | 4.829% | 12/25/36 | 17669 | 17900 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; MASTR Reperforming Loan Trust, 2005-1 1A3 | 7.000% | 8/25/34 | 7999 | 6090 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; MBRT, 2019-MBR H1 (1 mo. USD LIBOR + 4.350%) | 8.668% | 11/15/36 | 625000 | 596353 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Med Trust, 2021-MDLN E (1 mo. USD LIBOR + 3.150%) | 7.468% | 11/15/38 | 980000 | 912584 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Merrill Lynch Mortgage Investors Trust, 2003-A2 2M1 | 3.065% | 3/25/33 | 40159 | 31944 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Merrill Lynch Mortgage Investors Trust, 2004-A1 2A1 | 3.186% | 2/25/34 | 6640 | 6112 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Merrill Lynch Mortgage Investors Trust, 2004-A1 2A2 | 3.186% | 2/25/34 | 282698 | 260225 <sup>(c)</sup> |

---

See Notes to Financial Statements.

Western Asset Short-Term Bond Fund 2022 Annual Report 33

------

##### [**Table of Contents**](#toc)
Schedule of investments (cont'd)

December 31, 2022

**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |
| **Collateralized Mortgage Obligations** <sup>(e)</sup> **— continued** | **Collateralized Mortgage Obligations** <sup>(e)</sup> **— continued** | **Collateralized Mortgage Obligations** <sup>(e)</sup> **— continued** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Morgan Stanley Bank of America Merrill Lynch Trust, 2016-C32 ASB | 3.514% | 12/15/49 | $210893 | $201990 |
| &nbsp;&nbsp;&nbsp;&nbsp; Morgan Stanley Capital I Trust, 2017-ASHF A (1 mo. USD LIBOR + 0.975%) | 5.293% | 11/15/34 | 299326 | 290086 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Morgan Stanley Capital I Trust, 2018-H4 XA, IO | 0.831% | 12/15/51 | 24118966 | 880747 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Morgan Stanley Capital I Trust, 2019-BPR A (1 mo. USD LIBOR + 1.650%) | 5.968% | 5/15/36 | 587447 | 562294 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Mortgage Repurchase Agreement Financing Trust, 2022-S1 A1 (30 Day Average SOFR + 2.000%) | 5.805% | 3/30/25 | 1220000 | 1211717 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; MSC Trust, 2021-ILP A (1 mo. USD LIBOR + 0.778%) | 5.096% | 11/15/23 | 1654529 | 1592822 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; New Residential Mortgage Loan Trust, 2017-2A B2 | 4.750% | 3/25/57 | 330084 | 305990 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; New Residential Mortgage Loan Trust, 2017-4A A1 | 4.000% | 5/25/57 | 135333 | 126354 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; New Residential Mortgage Loan Trust, 2019-6A A1B | 3.500% | 9/25/59 | 537996 | 497330 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; New Residential Mortgage Loan Trust, 2022- NQM2 A1 | 3.079% | 3/27/62 | 1264656 | 1130178 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; OBX Trust, 2022-NQM1 A1 | 2.305% | 11/25/61 | 1085007 | 934806 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; OPG Trust, 2021-PORT A (1 mo. USD LIBOR + 0.484%) | 4.802% | 10/15/36 | 904694 | 865735 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Radnor RE Ltd., 2021-1 M1C (30 Day Average SOFR + 2.700%) | 6.628% | 12/27/33 | 1320000 | 1234130 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; RAMP Trust, 2004-SL4 A5 | 7.500% | 7/25/32 | 4052 | 1775 |
| &nbsp;&nbsp;&nbsp;&nbsp; Ready Capital Mortgage Financing LLC, 2021- FL7 A (1 mo. USD LIBOR + 1.200%) | 5.589% | 11/25/36 | 1621117 | 1555237 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Residential Accredit Loans Inc., 2007-QS7 1A7 (1 mo. USD LIBOR + 0.550%) | 4.939% | 5/25/37 | 484343 | 358093 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Sequoia Mortgage Trust, 2003-2 A2 (6 mo. USD LIBOR + 0.680%) | 5.802% | 6/20/33 | 91473 | 86052 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; SFO Commercial Mortgage Trust, 2021-555 D (1 mo. USD LIBOR + 2.400%) | 6.718% | 5/15/38 | 920000 | 795793 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; SG Residential Mortgage Trust, 2022-1 A1 | 3.166% | 3/27/62 | 1384372 | 1244020 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; SMR Mortgage Trust, 2022-IND F (1 mo. Term SOFR + 6.000%) | 10.336% | 2/15/39 | 1543345 | 1432146 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; SMRT, 2022-MINI A (1 mo. Term SOFR + 1.000%) | 5.336% | 1/15/39 | 1290000 | 1246937 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; SREIT Trust, 2021-MFP A (1 mo. USD LIBOR + 0.731%) | 5.049% | 11/15/38 | 1650000 | 1589411 <sup>(a)(c)</sup> |

---

See Notes to Financial Statements.

34 Western Asset Short-Term Bond Fund 2022 Annual Report

------

##### [**Table of Contents**](#toc)
**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |
| **Collateralized Mortgage Obligations** <sup>(e)</sup> **— continued** | **Collateralized Mortgage Obligations** <sup>(e)</sup> **— continued** | **Collateralized Mortgage Obligations** <sup>(e)</sup> **— continued** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; SREIT Trust, 2021-MFP2 A (1 mo. USD LIBOR + 0.822%) | 5.140% | 11/15/36 | $1450000 | $1397751 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; SREIT Trust, 2021-PALM A (1 mo. USD LIBOR + 0.590%) | 4.908% | 10/15/34 | 1650000 | 1582626 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Structured Adjustable Rate Mortgage Loan Trust, 2004-2 4A1 | 3.887% | 3/25/34 | 51263 | 47570 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Structured Adjustable Rate Mortgage Loan Trust, 2005-4 1A1 | 3.513% | 3/25/35 | 78559 | 62574 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Structured Adjustable Rate Mortgage Loan Trust, 2005-12 3A1 | 4.068% | 6/25/35 | 6560 | 5894 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Structured Asset Securities Corp., 2005-RF3 2A | 3.529% | 6/25/35 | 103098 | 91994 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Structured Asset Securities Corp. Mortgage Pass-Through Certificates, 2002-3 B2 | 6.500% | 3/25/32 | 263166 | 294894 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; STWD Trust, 2021-FLWR E (1 mo. USD LIBOR + 1.924%) | 6.242% | 7/15/36 | 2200000 | 2068130 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Tharaldson Hotel Portfolio Trust, 2018-THL D (1 mo. USD LIBOR + 2.300%) | 6.518% | 11/11/34 | 793879 | 747559 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Thornburg Mortgage Securities Trust, 2004-2 A4 (1 mo. USD LIBOR + 0.680%) | 5.069% | 6/25/44 | 286845 | 258537 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Towd Point Mortgage Trust, 2015-2 1B3 | 3.436% | 11/25/60 | 900000 | 741743 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Towd Point Mortgage Trust, 2019-4 B1B | 3.500% | 10/25/59 | 910000 | 623791 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; UBS Commercial Mortgage Trust, 2017-C4 A4 | 3.563% | 10/15/50 | 1330000 | 1224960 |
| &nbsp;&nbsp;&nbsp;&nbsp; Wachovia Mortgage Loan Trust LLC, 2005-A 1A1 | 3.539% | 8/20/35 | 3075 | 2888 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; WaMu Mortgage Pass-Through Certificates Trust, 2003-AR5 A7 | 3.206% | 6/25/33 | 14279 | 13290 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; WaMu Mortgage Pass-Through Certificates Trust, 2005-AR4 A5 | 2.987% | 4/25/35 | 11013 | 10104 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; WaMu Mortgage Pass-Through Certificates Trust, 2005-AR19 A1B2 (1 mo. USD LIBOR + 0.820%) | 5.209% | 12/25/45 | 21389 | 19510 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; WaMu Mortgage Pass-Through Certificates Trust, 2006-AR13 2A (Cost of Funds for the 11th District of San Francisco + 1.500%) | 3.548% | 10/25/46 | 356855 | 316631 <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; WMRK Commercial Mortgage Trust, 2022- WMRK A (1 mo. Term SOFR + 2.789%) | 7.125% | 11/15/27 | 2070000 | 2068177 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Collateralized Mortgage Obligations (Cost — $101,267,252)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Collateralized Mortgage Obligations (Cost — $101,267,252)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Collateralized Mortgage Obligations (Cost — $101,267,252)** |  | **94649622** |
| **U.S. Government & Agency Obligations — 8.7%** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *U.S. Government Agencies — 0.1%* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA), Notes | 0.375% | 8/25/25 | 1010000 | *911139* |

---

See Notes to Financial Statements.

Western Asset Short-Term Bond Fund 2022 Annual Report 35

------

##### [**Table of Contents**](#toc)
Schedule of investments (cont'd)

December 31, 2022

**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *U.S. Government Obligations — 8.6%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Farm Credit Banks Funding Corp., Bonds | 3.375% | 8/26/24 | $830000 | $812876 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Notes | 0.125% | 5/31/23 | 9340000 | 9173450 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Notes | 0.250% | 6/15/24 | 19260000 | 18078820 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Notes | 3.000% | 6/30/24 | 17450000 | 17034199 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Notes | 0.250% | 5/31/25 | 20000 | 18159 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Notes | 0.250% | 7/31/25 | 4545000 | 4102040 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Notes | 2.750% | 7/31/27 | 9400000 | 8894750 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Notes | 4.125% | 10/31/27 | 9210000 | 9244538 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total U.S. Government Obligations* |  |  |  | *67358832* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total U.S. Government & Agency Obligations (Cost — $70,717,713)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total U.S. Government & Agency Obligations (Cost — $70,717,713)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total U.S. Government & Agency Obligations (Cost — $70,717,713)** |  | **68269971** |  |
| **Mortgage-Backed Securities — 4.2%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *FHLMC — 1.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) | 3.500% | 4/1/33 | 71331 | 69022 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) | 3.000% | 6/1/35-11/1/35 | 3493015 | 3244045 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) | 2.500% | 5/1/51 | 848257 | 721289 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) | 5.000% | 7/1/52 | 487753 | 482789 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) (12 mo. USD LIBOR + 1.495%) | 3.122% | 6/1/43 | 100999 | 101120 | <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) (30 Day Average SOFR + 2.184%) | 1.777% | 8/1/51 | 4315949 | 3880764 | <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) Gold | 8.000% | 2/1/31 | 19361 | 19428 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) Gold | 7.000% | 4/1/32 | 26179 | 27623 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) Gold | 3.000% | 2/1/38-4/1/38 | 59732 | 55283 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total FHLMC* |  |  |  | *8601363* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *FNMA — 2.6%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 7.000% | 2/1/27-8/1/32 | 61482 | 62044 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 6.000% | 11/1/27 | 27 | 28 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 2.500% | 2/1/35-10/1/51 | 5447998 | 4867409 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 3.000% | 2/1/36-3/1/40 | 3118168 | 2901034 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 4.500% | 11/1/38 | 3112511 | 3091430 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 2.000% | 7/1/51-11/1/51 | 364176 | 298814 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 2.500% | 1/1/52 | 300000 | 254095 | <sup>(f)</sup> |

---

See Notes to Financial Statements.

36 Western Asset Short-Term Bond Fund 2022 Annual Report

------

##### [**Table of Contents**](#toc)
**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *FNMA — continued* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 5.500% | 8/1/52 | $6096444 | $6121382 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) | 4.000% | 2/1/56-6/1/57 | 370877 | 355156 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) (1 year Treasury Constant Maturity Rate + 2.375%) | 4.445% | 9/1/37 | 364128 | 370823 | <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal National Mortgage Association (FNMA) (30 Day Average SOFR + 2.120%) | 1.928% | 11/1/51 | 2562804 | 2322296 | <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total FNMA* |  |  |  | *20644511* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *GNMA — 0.5%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) | 6.000% | 11/15/28 | 4232 | 4344 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) | 6.500% | 8/15/34 | 56861 | 58569 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) | 7.000% | 3/15/36 | 18997 | 19999 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) | 3.000% | 9/15/42-11/15/42 | 188078 | 172374 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) | 3.500% | 6/15/48-5/15/50 | 167812 | 157679 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) II | 3.500% | 6/20/44-10/20/49 | 96719 | 90349 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) II | 4.000% | 2/20/48-4/20/48 | 12759 | 12273 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) II | 4.500% | 8/20/48-1/20/49 | 213171 | 209283 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) II | 2.500% | 12/20/50 | 144033 | 123782 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) II | 2.500% | 1/1/52 | 1600000 | 1386923 | <sup>(f)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) II | 4.000% | 2/1/52 | 1100000 | 1041567 | <sup>(f)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) II | 4.500% | 2/1/52 | 200000 | 194092 | <sup>(f)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) II (1 mo. USD LIBOR + 1.100%) | 4.179% | 7/20/60 | 17719 | 17746 | <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) II (1 mo. USD LIBOR + 2.071%) | 5.160% | 8/20/60 | 322918 | 330316 | <sup>(c)</sup> |

---

See Notes to Financial Statements.

Western Asset Short-Term Bond Fund 2022 Annual Report 37

------

##### [**Table of Contents**](#toc)
Schedule of investments (cont'd)

December 31, 2022

**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *GNMA — continued* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) II (1 year Treasury Constant Maturity Rate + 1.181%) | 5.263% | 7/20/60 | $40118 | $40178 | <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Government National Mortgage Association (GNMA) II (1 year Treasury Constant Maturity Rate + 1.440%) | 5.520% | 2/20/60 | 210289 | 211145 | <sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total GNMA* |  |  |  | *4070619* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Mortgage-Backed Securities (Cost — $35,223,984)** |  |  |  | **33316493** |  |
| **Senior Loans — 1.3%** |  |  |  |  |  |
| **Communication Services — 0.3%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Media — 0.3%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Charter Communications Operating LLC, Term Loan B1 (1 mo. USD LIBOR + 1.750%) | 6.140% | 4/30/25 | 494792 | 493322 | <sup>(c)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Charter Communications Operating LLC, Term Loan B2 (1 mo. USD LIBOR + 1.750%) | 6.140% | 2/1/27 | 494885 | 483998 | <sup>(c)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Nexstar Broadcasting Inc., Term Loan B4 (1 mo. USD LIBOR + 2.500%) | 6.884% | 9/18/26 | 442827 | 440004 | <sup>(c)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Virgin Media Bristol LLC, Term Loan Facility N (1 mo. USD LIBOR + 2.500%) | 6.818% | 1/31/28 | 750000 | 738818 | <sup>(c)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Communication Services** |  |  |  | **2156142** |  |
| **Consumer Discretionary — 0.3%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Auto Components — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Clarios Global LP, First Lien Amendment No. 1 Dollar Term Loan (1 mo. USD LIBOR + 3.250%) | 7.634% | 4/30/26 | 750000 | *737501* | <sup>(c)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Diversified Consumer Services — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Prime Security Services Borrower LLC, 2021 Refinancing Term Loan B1 (3 mo. USD LIBOR + 2.750%) | 6.505% | 9/23/26 | 494962 | *491250* | <sup>(c)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Hotels, Restaurants & Leisure — 0.0%††* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Caesars Resort Collection LLC, Term Loan B (1 mo. USD LIBOR + 2.750%) | 7.134% | 12/23/24 | 378435 | *378072* | <sup>(c)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Specialty Retail — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Rent-A-Center Inc., Term Loan B2 (3 mo. USD LIBOR + 3.250%) | 7.688% | 2/17/28 | 742444 | *717386* | <sup>(c)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Consumer Discretionary** |  |  |  | **2324209** |  |
| **Energy — 0.1%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Oil, Gas & Consumable Fuels — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pilot Travel Centers LLC, Initial Term Loan B (1 mo. Term SOFR + 2.100%) | 6.423% | 8/4/28 | 742481 | **735335** | <sup>(c)(g)(h)</sup> |

---

See Notes to Financial Statements.

38 Western Asset Short-Term Bond Fund 2022 Annual Report

------

##### [**Table of Contents**](#toc)
**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |  |
| **Financials — 0.3%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Diversified Financial Services — 0.2%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Hudson River Trading LLC, Term Loan (1 mo. Term SOFR + 3.114%) | 7.438% | 3/20/28 | $742444 | $703929 | <sup>(c)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Setanta Aircraft Leasing DAC, Term Loan (3 mo. USD LIBOR + 2.000%) | 6.730% | 11/5/28 | 750000 | 747750 | <sup>(c)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; VFH Parent LLC, Initial Term Loan (1 mo. Term SOFR + 3.000%) | 7.321% | 1/13/29 | 500000 | 488250 | <sup>(c)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Diversified Financial Services* |  |  |  | *1939929* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Insurance — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Asurion LLC, New Term Loan B9 (1 mo. USD LIBOR + 3.250%) | 7.634% | 7/31/27 | 494962 | *434641* | <sup>(c)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Financials** |  |  |  | **2374570** |  |
| **Industrials — 0.3%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Commercial Services & Supplies — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; APi Group DE Inc., Initial Term Loan (1 mo. USD LIBOR + 2.500%) | 6.884% | 10/1/26 | 741630 | *737766* | <sup>(c)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Road & Rail — 0.2%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Genesee & Wyoming Inc., Initial Term Loan (3 mo. USD LIBOR + 2.000%) | 6.730% | 12/30/26 | 742366 | 739445 | <sup>(c)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; XPO Logistics Inc., Refinancing Term Loan (1 mo. USD LIBOR + 1.750%) | 5.935% | 2/24/25 | 750000 | 747596 | <sup>(c)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Road & Rail* |  |  |  | *1487041* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Industrials** |  |  |  | **2224807** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Senior Loans (Cost — $10,021,613)** |  |  |  | **9815063** |  |
| **Sovereign Bonds — 0.2%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Qatar — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Qatar Government International Bond, Senior Notes | 3.875% | 4/23/23 | 740000 | *736969* | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Supranational — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Asian Development Bank, Senior Notes | 1.500% | 1/20/27 | 830000 | *747465* |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Sovereign Bonds (Cost — $1,566,281)** |  |  |  | **1484434** |  |
|  | Expiration<br> Date | Contracts | Notional<br> Amount |  |  |
| **Purchased Options — 0.0%††** |  |  |  |  |  |
| **Exchange-Traded Purchased Options — 0.0%††** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; SOFR 1-Year Mid-Curve Futures, Put @ $95.63 | 1/13/23 | 328 | 820000 | 43050 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; SOFR 1-Year Mid-Curve Futures, Put @ $95.88 | 1/13/23 | 337 | 842500 | 122163 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Purchased Options (Cost — $258,447)** |  |  |  | **165213** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Investments before Short-Term Investments (Cost — $766,574,129)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Investments before Short-Term Investments (Cost — $766,574,129)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Investments before Short-Term Investments (Cost — $766,574,129)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Investments before Short-Term Investments (Cost — $766,574,129)** | **728178471** |  |

---

See Notes to Financial Statements.

Western Asset Short-Term Bond Fund 2022 Annual Report 39

------

##### [**Table of Contents**](#toc)
Schedule of investments (cont'd)

December 31, 2022

**Western Asset Short-Term Bond Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br> Date | Face<br> Amount | Value |
| **Short-Term Investments — 7.1%** |  |  |  |  |
| **Commercial Paper — 3.7%** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Banco Santander SA | 4.869% | 2/16/23 | $10500000 | $10435916 <sup>(i)(j)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Svenska Handelsbanken AB | 4.600% | 2/16/23 | 6000000 | 5965352 <sup>(i)(j)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Toronto Dominion Bank | 4.600% | 2/16/23 | 12650000 | 12576951 <sup>(i)(j)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Commercial Paper (Cost — $29,017,513)** |  |  |  | **28978219** |
| **U.S. Government Agencies — 0.5%** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Bank (FHLB), Discount Notes (Cost — $3,865,545) | 4.337% | 3/24/23 | 3890000 | **3852627** <sup>(j)</sup> |
|  |  |  | Shares |  |
| **Money Market Funds — 2.9%** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Western Asset Premier Institutional Government Reserves, Premium Shares<br>(Cost — $23,437,784) | 4.244% |  | 23437784 | **23437784** <sup>(k)(l)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Short-Term Investments (Cost — $56,320,842)** |  |  |  | **56268630** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Investments — 99.6% (Cost — $822,894,971)** |  |  |  | **784447101** |
| &nbsp;&nbsp;&nbsp;&nbsp; Other Assets in Excess of Liabilities — 0.4% |  |  |  | 3111702 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Net Assets — 100.0%** |  |  |  | $**787558803** |

---

See Notes to Financial Statements.

40 Western Asset Short-Term Bond Fund 2022 Annual Report

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##### [**Table of Contents**](#toc)
**Western Asset Short-Term Bond Fund** 

---

| | |
|:---|:---|
| †† | Represents less than 0.1%.  |

---

<sup>(a)</sup> Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid pursuant to guidelines approved by the Board of Trustees. 

<sup>(b)</sup> Security is exempt from registration under Regulation S of the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States. This security has been deemed liquid pursuant to guidelines approved by the Board of Trustees. 

<sup>(c)</sup> Variable rate security. Interest rate disclosed is as of the most recent information available. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above. 

<sup>(d)</sup> Security has no maturity date. The date shown represents the next call date.

<sup>(e)</sup> Collateralized mortgage obligations are secured by an underlying pool of mortgages or mortgage pass-through certificates that are structured to direct payments on underlying collateral to different series or classes of the obligations. The interest rate may change positively or inversely in relation to one or more interest rates, financial indices or other financial indicators and may be subject to an upper and/or lower limit. 

<sup>(f)</sup> This security is traded on a to-be-announced ("TBA") basis. At December 31, 2022, the Fund held TBA securities with a total cost of $2,789,195. 

<sup>(g)</sup> Interest rates disclosed represent the effective rates on senior loans. Ranges in interest rates are attributable to multiple contracts under the same loan.

<sup>(h)</sup> Senior loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval from the agent bank and/or borrower prior to the disposition of a senior loan.

<sup>(i)</sup> Commercial paper exempt from registration under Section 4(2) of the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid pursuant to guidelines approved by the Board of Trustees. 

<sup>(j)</sup> Rate shown represents yield-to-maturity.

<sup>(k)</sup> Rate shown is one-day yield as of the end of the reporting period.

<sup>(l)</sup> In this instance, as defined in the Investment Company Act of 1940, an "Affiliated Company" represents Fund ownership of at least 5% of the outstanding voting securities of an issuer, or a company which is under common ownership or control with the Fund. At December 31, 2022, the total market value of investments in Affiliated Companies was $23,437,784 and the cost was $23,437,784 (Note 8). 

---

| | |
|:---|:---|
| **Abbreviation(s) used in this schedule:** | **Abbreviation(s) used in this schedule:** |
| ACES | — Alternative Credit Enhancement Securities |
| CAS | — Connecticut Avenue Securities |
| CDO | — Collateralized Debt Obligation |
| CLO | — Collateralized Loan Obligation |
| IO | — Interest Only |
| LIBOR | — London Interbank Offered Rate |
| PAC | — Planned Amortization Class |
| REMIC | — Real Estate Mortgage Investment Conduit |
| SOFR | — Secured Overnight Financing Rate |
| USD | — United States Dollar |

---

See Notes to Financial Statements.

Western Asset Short-Term Bond Fund 2022 Annual Report 41

------

##### [**Table of Contents**](#toc)
Schedule of investments (cont'd)

December 31, 2022

**Western Asset Short-Term Bond Fund** 

At December 31, 2022, the Fund had the following open futures contracts:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Number of<br> Contracts | Expiration<br> Date | Notional<br> Amount | Market<br> Value | Unrealized<br> Appreciation<br> (Depreciation) |
| **Contracts to Buy:** |  |  |  |  |  |
| 3-Month SOFR | 3 | 9/23 | $724131 | $712800 | $(11331) |
| 3-Month SOFR | 331 | 3/25 | 79877563 | 79986150 | 108587 |
| 3-Month SOFR | 84 | 3/26 | 20240969 | 20332200 | 91231 |
| 90-Day Eurodollar | 68 | 6/23 | 16411474 | 16121950 | (289524) |
| 90-Day Eurodollar | 51 | 3/23 | 12121477 | 12102937 | (18540) |
| 90-Day Eurodollar | 109 | 12/23 | 26444516 | 25944725 | (499791) |
| U.S. Treasury 2-Year Notes | 1148 | 3/23 | 235691935 | 235429689 | (262246) |
| U.S. Treasury 5-Year Notes | 437 | 3/23 | 47373314 | 47165275 | (208039) |
|  |  |  |  |  | (1089653) |
| **Contracts to Sell:** |  |  |  |  |  |
| 3-Month SOFR | 696 | 3/24 | 166965676 | 166117800 | 847876 |
| U.S. Treasury 10-Year Notes | 251 | 3/23 | 28324988 | 28186517 | 138471 |
| U.S. Treasury Long-Term Bonds | 22 | 3/23 | 2796190 | 2757563 | 38627 |
| U.S. Treasury Ultra Long- Term Bonds | 6 | 3/23 | 830240 | 805875 | 24365 |
|  |  |  |  |  | 1049339 |
| **Net unrealized depreciation on open futures contracts** | **Net unrealized depreciation on open futures contracts** | **Net unrealized depreciation on open futures contracts** | **Net unrealized depreciation on open futures contracts** |  | $**(40314)** |

---

---

| | |
|:---|:---|
| **Abbreviation(s) used in this table:** | **Abbreviation(s) used in this table:** |
| SOFR | — Secured Overnight Financing Rate |

---

At December 31, 2022, the Fund had the following open swap contracts:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **CENTRALLY CLEARED INTEREST RATE SWAPS** | **CENTRALLY CLEARED INTEREST RATE SWAPS** | **CENTRALLY CLEARED INTEREST RATE SWAPS** | **CENTRALLY CLEARED INTEREST RATE SWAPS** | **CENTRALLY CLEARED INTEREST RATE SWAPS** | **CENTRALLY CLEARED INTEREST RATE SWAPS** |
| Notional<br> Amount | Termination<br> Date | Payments<br> Made by<br> the Fund<sup>†</sup> | Payments<br> Received by<br> the Fund<sup>†</sup> | Upfront<br> Premiums<br> Paid<br> (Received) | Unrealized<br> Appreciation<br> (Depreciation) |
| $25291000 | 9/30/24 | Daily SOFR Compound annually | 3.500% annually | $12607 | $(460797) |
| 19216000 | 10/14/24 | Daily SOFR Compound annually | 2.770% annually | 372 | (588037) |

---

See Notes to Financial Statements.

42 Western Asset Short-Term Bond Fund 2022 Annual Report

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##### [**Table of Contents**](#toc)
**Western Asset Short-Term Bond Fund** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **CENTRALLY CLEARED INTEREST RATE SWAPS (cont'd)** | **CENTRALLY CLEARED INTEREST RATE SWAPS (cont'd)** | **CENTRALLY CLEARED INTEREST RATE SWAPS (cont'd)** | **CENTRALLY CLEARED INTEREST RATE SWAPS (cont'd)** | **CENTRALLY CLEARED INTEREST RATE SWAPS (cont'd)** | **CENTRALLY CLEARED INTEREST RATE SWAPS (cont'd)** | **CENTRALLY CLEARED INTEREST RATE SWAPS (cont'd)** |
|  | Notional<br> Amount | Termination<br> Date | Payments<br>Made by<br>the Fund† | Payments<br>Received by<br>the Fund† | Upfront<br>Premiums Paid<br>(Received) | Unrealized<br>Appreciation<br>(Depreciation) |
|  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7993000 | 10/14/27 | 2.600% annually | Daily SOFR Compound annually | $2613 | $391560 |
|  | 4288000 | 8/15/28 | 1.130% annually | Daily SOFR Compound annually | 33524 | 512903 |
|  | 122000 | 8/15/28 | 1.220% annually | Daily SOFR Compound annually | (179) | 15175 |
|  | 4801000 | 4/30/29 | 3.270% annually | Daily SOFR Compound annually | (84053) | 178008 |
| **Total** | $**61711000** |  |  |  | $**(35116)** | $**48812** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CREDIT INDICES — SELL PROTECTION<sup>1</sup>** | **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CREDIT INDICES — SELL PROTECTION<sup>1</sup>** | **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CREDIT INDICES — SELL PROTECTION<sup>1</sup>** | **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CREDIT INDICES — SELL PROTECTION<sup>1</sup>** | **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CREDIT INDICES — SELL PROTECTION<sup>1</sup>** | **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CREDIT INDICES — SELL PROTECTION<sup>1</sup>** | **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CREDIT INDICES — SELL PROTECTION<sup>1</sup>** |
| Reference Entity | Notional<br>Amount<sup>2</sup> | Termination<br>Date | Periodic<br>Payments<br>Received by<br>the Fund† | Market<br>Value<sup>3</sup> | Upfront<br>Premiums<br>Paid<br>(Received) | Unrealized<br>Appreciation |
| Markit CDX.NA.IG.39 Index | $31578000 | 12/20/27 | 1.000% quarterly | $251679 | $133855 | $117824 |

---

<sup>1</sup> If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. 

<sup>2</sup> The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. 

<sup>3</sup> The quoted market prices and resulting values for credit default swap agreements on asset-backed securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected loss (or profit) for the credit derivative had the notional amount of the swap agreement been closed/sold as of the period end. Decreasing market values (sell protection) or increasing market values (buy protection) when compared to the notional amount of the swap, represent a deterioration of the referenced entity's credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. 

† Percentage shown is an annual percentage rate.

---

| | |
|:---|:---|
| **Abbreviation(s) used in this table:** | **Abbreviation(s) used in this table:** |
| SOFR | — Secured Overnight Financing Rate |

---

See Notes to Financial Statements.

Western Asset Short-Term Bond Fund 2022 Annual Report 43

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##### [**Table of Contents**](#toc)
Statement of assets and liabilities

December 31, 2022

---

| | | |
|:---|:---|:---|
| **Assets:** | | |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments in unaffiliated securities, at value (Cost — $799,457,187) | $761009317 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments in affiliated securities, at value (Cost — $23,437,784) | 23437784 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash | 1047446 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest receivable | 4403826 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for Fund shares sold | 3406990 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for securities sold | 2836843 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Deposits with brokers for open futures contracts and exchange-traded options | 1627169 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Deposits with brokers for centrally cleared swap contracts | 864003 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable from brokers — net variation margin on centrally cleared swap contracts | 353728 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Principal paydown receivable | 59727 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends receivable from affiliated investments | 46400 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 46572 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total Assets*** | ***799139805*** | **** |
| **Liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Payable for Fund shares repurchased | 6833394 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Payable for securities purchased | 4039367 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment management fee payable | 114861 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Payable to brokers — net variation margin on open futures contracts | 81504 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions payable | 78363 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Service and/or distribution fees payable | 31000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees payable | 3834 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 398679 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total Liabilities*** | ***11581002*** | **** |
| **Total Net Assets** | $**787558803** |  |
| **Net Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Par value (Note 7) | $2184 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Paid-in capital in excess of par value | 875818694 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributable earnings (loss) | (88262075) |  |
| **Total Net Assets** | $**787558803** |  |

---

See Notes to Financial Statements.

44 Western Asset Short-Term Bond Fund 2022 Annual Report

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##### [**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **Net Assets:** | |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $127715108 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C | $5309226 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C1 | $1514702 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class R | $93140 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I | $274459771 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class IS | $378466856 |
| **Shares Outstanding:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 35434055 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C | 1474375 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C1 | 419204 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class R | 25855 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I | 76113383 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class IS | 104938395 |
| **Net Asset Value:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A (and redemption price) | $3.60 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C\* | $3.60 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C1 (and redemption price) | $3.61 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class R (and redemption price) | $3.60 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I (and redemption price) | $3.61 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class IS (and redemption price) | $3.61 |
| **Maximum Public Offering Price Per Share:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A (based on maximum initial sales charge of 2.25%) | $3.68 |

---

\* Redemption price per share is NAV of Class C shares reduced by a 1.00% CDSC if shares are redeemed within one year from purchase payment (Note 2). 

See Notes to Financial Statements.

Western Asset Short-Term Bond Fund 2022 Annual Report 45

------

##### [**Table of Contents**](#toc)
Statement of operations

For the Year Ended December 31, 2022

---

| | | |
|:---|:---|:---|
| **Investment Income:** | | |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest | $15822799 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends from affiliated investments | 342177 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Less: Foreign taxes withheld | (13812) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total Investment Income*** | ***16151164*** | **** |
| **Expenses:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment management fee (Note 2) | 2647248 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Transfer agent fees (Note 5) | 607844 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Service and/or distribution fees (Notes 2 and 5) | 297499 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Registration fees | 168109 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Fund accounting fees | 73954 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax fees | 46742 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal fees | 23007 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reports | 21074 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees | 16934 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commitment fees (Note 9) | 5679 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 4843 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Custody fees | 1267 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous expenses | 11864 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total Expenses*** | ***3926064*** | **** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Fee waivers and/or expense reimbursements (Notes 2 and 5) | (505798) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Net Expenses*** | ***3420266*** | **** |
| **Net Investment Income** | **12730898** |  |
| **Realized and Unrealized Gain (Loss) on Investments, Futures Contracts, Written Options and Swap Contracts (Notes 1, 3, 4 and 10):** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Realized Gain (Loss) From: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment transactions in unaffiliated securities | (3744705) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | (8761221) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Written options | 1872664 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swap contracts | (919062) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Net Realized Loss*** | ***(11552324)*** | **** |
| &nbsp;&nbsp;&nbsp;&nbsp; Change in Net Unrealized Appreciation (Depreciation) From: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in unaffiliated securities | (37754075) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | 1008064 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Written options | (13105) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swap contracts | 413370 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Change in Net Unrealized Appreciation (Depreciation)*** | ***(36345746)*** | **** |
| **Net Loss on Investments, Futures Contracts, Written Options and Swap Contracts** | **(47898070)** |  |
| **Decrease in Net Assets From Operations** | $**(35167172)** |  |

---

See Notes to Financial Statements.

46 Western Asset Short-Term Bond Fund 2022 Annual Report

------

##### [**Table of Contents**](#toc)
Statements of changes in net assets

---

| | | | | |
|:---|:---|:---|:---|:---|
| For the Years Ended December 31, | 2022 |  | 2021 |  |
| **Operations:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | $12730898 |  | $8250428 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | (11552324) |  | 6640271 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Change in net unrealized appreciation (depreciation) | (36345746) |  | (15432975) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Decrease in Net Assets From Operations*** | ***(35167172)*** | **** | ***(542276)*** | **** |
| **Distributions to Shareholders From (Notes 1 and 6):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributable earnings | (17885826) |  | (13993646) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Decrease in Net Assets From Distributions to Shareholders*** | ***(17885826)*** | **** | ***(13993646)*** | **** |
| **Fund Share Transactions (Note 7):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net proceeds from sale of shares | 577064411 |  | 659201020 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestment of distributions | 17317590 |  | 13368222 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cost of shares repurchased | (414250002) |  | (248134084) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Shares redeemed in-kind (Note 10) |  |  | (596951174) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Increase (Decrease) in Net Assets From Fund Share Transactions*** | ***180131999*** | **** | ***(172516016)*** | **** |
|  ***Increase (Decrease) in Net Assets*** | ***127079001*** | **** | ***(187051938)*** | **** |
| **Net Assets:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of year | 660479802 |  | 847531740 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **End of year** | $**787558803** |  | $**660479802** |  |

---

See Notes to Financial Statements.

Western Asset Short-Term Bond Fund 2022 Annual Report 47

------

##### [**Table of Contents**](#toc)
Financial highlights

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** |  |
| Class A Shares<sup>1</sup> | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  |
| **Net asset value, beginning of year** | $3.88 |  | $3.96 |  | $3.90 |  | $3.83 |  | $3.87 |  |
| **Income (loss) from operations:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 0.05 |  | 0.03 |  | 0.06 |  | 0.09 |  | 0.08 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (0.25) |  | (0.05) |  | 0.08 |  | 0.08 |  | (0.03) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total income (loss) from operations*** | ***(0.20)*** | **** | ***(0.02)*** | **** | ***0.14*** | **** | ***0.17*** | **** | ***0.05*** | **** |
| **Less distributions from:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | (0.08) |  | (0.06) |  | (0.08) |  | (0.10) |  | (0.09) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total distributions*** | ***(0.08)*** | **** | ***(0.06)*** | **** | ***(0.08)*** | **** | ***(0.10)*** | **** | ***(0.09)*** | **** |
| **Net asset value, end of year** | $3.60 |  | $3.88 |  | $3.96 |  | $3.90 |  | $3.83 |  |
|  ***Total return<sup>2</sup>*** | ***(5.01)*** | *%*** | ***(0.55)*** | *%*** | ***3.72*** | *%*** | ***4.49*** | *%*** | ***1.29*** | *%*** |
| **Net assets, end of year (000s)** | $127715 |  | $75606 |  | $58248 |  | $53294 |  | $30894 |  |
| **Ratios to average net assets:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gross expenses | 0.73 | % | 0.72 | % | 0.73 | % | 0.75 | % | 0.75 | % |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses<sup>3,4</sup> | 0.70 |  | 0.70 |  | 0.72 |  | 0.74 |  | 0.74 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 1.49 |  | 0.73 |  | 1.57 |  | 2.36 |  | 2.12 |  |
| **Portfolio turnover rate<sup>5</sup>** | **27** | **%** | **58** | **%** | **64** | **%** | **41** | **%** | **52** | **%** |

---

<sup>1</sup> Per share amounts have been calculated using the average shares method. 

<sup>2</sup> Performance figures, exclusive of sales charges, may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. 

<sup>3</sup> As a result of an expense limitation arrangement, effective May 1, 2021, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and expenses, to average net assets of Class A shares did not exceed 0.70%. This expense limitation arrangement cannot be terminated prior to December 31, 2024 without the Board of Trustees' consent. In addition, the manager has agreed to waive the Fund's management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund. Prior to May 1, 2021, the expense limitation was 0.80%. 

<sup>4</sup> Reflects fee waivers and/or expense reimbursements.

<sup>5</sup> Excluding mortgage dollar roll transactions. If mortgage dollar roll transactions had been included, the portfolio turnover rate would have been 28%, 62%, 73%, 55% and 100% for the years ended December 31, 2022, 2021, 2020, 2019 and 2018, respectively. 

See Notes to Financial Statements.

48 Western Asset Short-Term Bond Fund 2022 Annual Report

------

##### [**Table of Contents**](#toc)

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** |  |
| Class C Shares<sup>1</sup> | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  |
| **Net asset value, beginning of year** | $3.88 |  | $3.95 |  | $3.89 |  | $3.83 |  | $3.86 |  |
| **Income (loss) from operations:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 0.02 |  | (0.00) | <sup>2</sup> | 0.03 |  | 0.06 |  | 0.05 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (0.25) |  | (0.04) |  | 0.08 |  | 0.07 |  | (0.02) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total income (loss) from operations*** | ***(0.23)*** | **** | ***(0.04)*** | **** | ***0.11*** | **** | ***0.13*** | **** | ***0.03*** | **** |
| **Less distributions from:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | (0.05) |  | (0.03) |  | (0.05) |  | (0.07) |  | (0.06) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total distributions*** | ***(0.05)*** | **** | ***(0.03)*** | **** | ***(0.05)*** | **** | ***(0.07)*** | **** | ***(0.06)*** | **** |
| **Net asset value, end of year** | $3.60 |  | $3.88 |  | $3.95 |  | $3.89 |  | $3.83 |  |
|  ***Total return<sup>3</sup>*** | ***(6.02)*** | *%*** | ***(1.08)*** | *%*** | ***2.95*** | *%*** | ***3.44*** | *%*** | ***0.80*** | *%*** |
| **Net assets, end of year (000s)** | $5309 |  | $5035 |  | $6795 |  | $5073 |  | $8487 |  |
| **Ratios to average net assets:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gross expenses | 1.49 | % | 1.49 | % | 1.47 | % | 1.50 | % | 1.49 | % |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses<sup>4,5</sup> | 1.48 |  | 1.48 |  | 1.47 |  | 1.50 |  | 1.48 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | 0.60 |  | (0.04) |  | 0.81 |  | 1.67 |  | 1.41 |  |
| **Portfolio turnover rate<sup>6</sup>** | **27** | **%** | **58** | **%** | **64** | **%** | **41** | **%** | **52** | **%** |

---

<sup>1</sup> Per share amounts have been calculated using the average shares method. 

<sup>2</sup> Amount represents less than $0.005 per share. 

<sup>3</sup> Performance figures, exclusive of CDSC, may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. 

<sup>4</sup> As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and expenses, to average net assets of Class C shares did not exceed 1.55%. This expense limitation arrangement cannot be terminated prior to December 31, 2024 without the Board of Trustees' consent. In addition, the manager has agreed to waive the Fund's management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund. 

<sup>5</sup> Reflects fee waivers and/or expense reimbursements.

<sup>6</sup> Excluding mortgage dollar roll transactions. If mortgage dollar roll transactions had been included, the portfolio turnover rate would have been 28%, 62%, 73%, 55% and 100% for the years ended December 31, 2022, 2021, 2020, 2019 and 2018, respectively. 

See Notes to Financial Statements.

Western Asset Short-Term Bond Fund 2022 Annual Report 49

------

##### [**Table of Contents**](#toc)
Financial highlights (cont'd)

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** |  |
| Class C1 Shares<sup>1</sup> | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  |
| **Net asset value, beginning of year** | $3.89 |  | $3.96 |  | $3.90 |  | $3.83 |  | $3.87 |  |
| **Income (loss) from operations:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 0.04 |  | 0.02 |  | 0.05 |  | 0.09 |  | 0.07 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (0.26) |  | (0.04) |  | 0.08 |  | 0.07 |  | (0.03) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total income (loss) from operations*** | ***(0.22)*** | **** | ***(0.02)*** | **** | ***0.13*** | **** | ***0.16*** | **** | ***0.04*** | **** |
| **Less distributions from:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | (0.06) |  | (0.05) |  | (0.07) |  | (0.09) |  | (0.08) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total distributions*** | ***(0.06)*** | **** | ***(0.05)*** | **** | ***(0.07)*** | **** | ***(0.09)*** | **** | ***(0.08)*** | **** |
| **Net asset value, end of year** | $3.61 |  | $3.89 |  | $3.96 |  | $3.90 |  | $3.83 |  |
|  ***Total return<sup>2</sup>*** | ***(5.29)*** | *%*** | ***(0.61)*** | ***%<sup>3</sup>*** | ***3.41*** | *%*** | ***4.28*** | *%*** | ***1.07*** | *%*** |
| **Net assets, end of year (000s)** | $1515 |  | $1768 |  | $3929 |  | $7854 |  | $32443 |  |
| **Ratios to average net assets:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gross expenses | 1.02 | % | 1.02 | % | 1.02 | % | 0.98 | % | 0.97 | % |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses<sup>4,5</sup> | 1.01 |  | 1.01 |  | 1.01 |  | 0.97 |  | 0.96 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 1.06 |  | 0.46 |  | 1.37 |  | 2.26 |  | 1.90 |  |
| **Portfolio turnover rate<sup>6</sup>** | **27** | **%** | **58** | **%** | **64** | **%** | **41** | **%** | **52** | **%** |

---

<sup>1</sup> Per share amounts have been calculated using the average shares method. 

<sup>2</sup> Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. 

<sup>3</sup> The total return includes a payment by an affiliate to reimburse for an error. Absent this payment, total return would have been (0.86)% for the year ended December 31, 2021. 

<sup>4</sup> As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and expenses, to average net assets of Class C1 shares did not exceed 1.05%. This expense limitation arrangement cannot be terminated prior to December 31, 2024 without the Board of Trustees' consent. In addition, the manager has agreed to waive the Fund's management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund. 

<sup>5</sup> Reflects fee waivers and/or expense reimbursements.

<sup>6</sup> Excluding mortgage dollar roll transactions. If mortgage dollar roll transactions had been included, the portfolio turnover rate would have been 28%, 62%, 73%, 55% and 100% for the years ended December 31, 2022, 2021, 2020, 2019 and 2018, respectively. 

See Notes to Financial Statements.

50 Western Asset Short-Term Bond Fund 2022 Annual Report

------

##### [**Table of Contents**](#toc)

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** |  |
| Class R Shares<sup>1</sup> | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  |
| **Net asset value, beginning of year** | $3.88 |  | $3.95 |  | $3.90 |  | $3.83 |  | $3.86 |  |
| **Income (loss) from operations:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 0.04 |  | 0.01 |  | 0.05 |  | 0.08 |  | 0.07 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (0.26) |  | (0.04) |  | 0.07 |  | 0.08 |  | (0.02) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total income (loss) from operations*** | ***(0.22)*** | **** | ***(0.03)*** | **** | ***0.12*** | **** | ***0.16*** | **** | ***0.05*** | **** |
| **Less distributions from:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | (0.06) |  | (0.04) |  | (0.07) |  | (0.09) |  | (0.08) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total distributions*** | ***(0.06)*** | **** | ***(0.04)*** | **** | ***(0.07)*** | **** | ***(0.09)*** | **** | ***(0.08)*** | **** |
| **Net asset value, end of year** | $3.60 |  | $3.88 |  | $3.95 |  | $3.90 |  | $3.83 |  |
|  ***Total return<sup>2</sup>*** | ***(5.64)*** | *%*** | ***(0.95)*** | *%*** | ***3.34*** | *%*** | ***4.12*** | *%*** | ***1.19*** | *%*** |
| **Net assets, end of year (000s)** | $93 |  | $68 |  | $52 |  | $71 |  | $173 |  |
| **Ratios to average net assets:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gross expenses | 1.31 | % | 1.43 | % | 2.14 | % | 1.28 | % | 1.29 | % |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses<sup>3,4</sup> | 1.10 |  | 1.10 |  | 1.09 |  | 1.10 |  | 1.10 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 1.06 |  | 0.34 |  | 1.26 |  | 2.11 |  | 1.77 |  |
| **Portfolio turnover rate<sup>5</sup>** | **27** | **%** | **58** | **%** | **64** | **%** | **41** | **%** | **52** | **%** |

---

<sup>1</sup> Per share amounts have been calculated using the average shares method. 

<sup>2</sup> Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. 

<sup>3</sup> As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and expenses, to average net assets of Class R shares did not exceed 1.10%. This expense limitation arrangement cannot be terminated prior to December 31, 2024 without the Board of Trustees' consent. In addition, the manager has agreed to waive the Fund's management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund. 

<sup>4</sup> Reflects fee waivers and/or expense reimbursements.

<sup>5</sup> Excluding mortgage dollar roll transactions. If mortgage dollar roll transactions had been included, the portfolio turnover rate would have been 28%, 62%, 73%, 55% and 100% for the years ended December 31, 2022, 2021, 2020, 2019 and 2018, respectively. 

See Notes to Financial Statements.

Western Asset Short-Term Bond Fund 2022 Annual Report 51

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Financial highlights (cont'd)

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** |  |
| Class I Shares<sup>1</sup> | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  |
| **Net asset value, beginning of year** | $3.88 |  | $3.96 |  | $3.90 |  | $3.83 |  | $3.87 |  |
| **Income (loss) from operations:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 0.06 |  | 0.04 |  | 0.07 |  | 0.10 |  | 0.09 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (0.24) |  | (0.05) |  | 0.08 |  | 0.08 |  | (0.03) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total income (loss) from operations*** | ***(0.18)*** | **** | ***(0.01)*** | **** | ***0.15*** | **** | ***0.18*** | **** | ***0.06*** | **** |
| **Less distributions from:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | (0.09) |  | (0.07) |  | (0.09) |  | (0.11) |  | (0.10) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total distributions*** | ***(0.09)*** | **** | ***(0.07)*** | **** | ***(0.09)*** | **** | ***(0.11)*** | **** | ***(0.10)*** | **** |
| **Net asset value, end of year** | $3.61 |  | $3.88 |  | $3.96 |  | $3.90 |  | $3.83 |  |
|  ***Total return<sup>2</sup>*** | ***(4.75)*** | *%*** | ***(0.30)*** | *%*** | ***3.96*** | *%*** | ***4.74*** | *%*** | ***1.54*** | *%*** |
| **Net assets, end of year (millions)** | $274 |  | $319 |  | $137 |  | $162 |  | $142 |  |
| **Ratios to average net assets:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gross expenses | 0.54 | % | 0.51 | % | 0.51 | % | 0.54 | % | 0.53 | % |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses<sup>3,4</sup> | 0.42 |  | 0.43 |  | 0.49 |  | 0.50 |  | 0.50 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 1.67 |  | 0.98 |  | 1.82 |  | 2.64 |  | 2.44 |  |
| **Portfolio turnover rate<sup>5</sup>** | **27** | **%** | **58** | **%** | **64** | **%** | **41** | **%** | **52** | **%** |

---

<sup>1</sup> Per share amounts have been calculated using the average shares method. 

<sup>2</sup> Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. 

<sup>3</sup> As a result of an expense limitation arrangement, effective May 1, 2021, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and expenses, to average net assets of Class I shares did not exceed 0.42%. This expense limitation arrangement cannot be terminated prior to December 31, 2024 without the Board of Trustees' consent. In addition, the manager has agreed to waive the Fund's management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund. Prior to May 1, 2021, the expense limitation was 0.50%. 

<sup>4</sup> Reflects fee waivers and/or expense reimbursements.

<sup>5</sup> Excluding mortgage dollar roll transactions. If mortgage dollar roll transactions had been included, the portfolio turnover rate would have been 28%, 62%, 73%, 55% and 100% for the years ended December 31, 2022, 2021, 2020, 2019 and 2018, respectively. 

See Notes to Financial Statements.

52 Western Asset Short-Term Bond Fund 2022 Annual Report

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---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** |  |
| Class IS Shares<sup>1</sup> | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  |
| **Net asset value, beginning of year** | $3.88 |  | $3.96 |  | $3.90 |  | $3.83 |  | $3.87 |  |
| **Income (loss) from operations:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 0.07 |  | 0.04 |  | 0.07 |  | 0.11 |  | 0.10 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (0.25) |  | (0.05) |  | 0.09 |  | 0.07 |  | (0.04) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total income (loss) from operations*** | ***(0.18)*** | **** | ***(0.01)*** | **** | ***0.16*** | **** | ***0.18*** | **** | ***0.06*** | **** |
| **Less distributions from:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | (0.09) |  | (0.07) |  | (0.10) |  | (0.11) |  | (0.10) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total distributions*** | ***(0.09)*** | **** | ***(0.07)*** | **** | ***(0.10)*** | **** | ***(0.11)*** | **** | ***(0.10)*** | **** |
| **Net asset value, end of year** | $3.61 |  | $3.88 |  | $3.96 |  | $3.90 |  | $3.83 |  |
|  ***Total return<sup>2</sup>*** | ***(4.73)*** | *%*** | ***(0.25)*** | *%*** | ***4.06*** | *%*** | ***4.84*** | *%*** | ***1.63*** | *%*** |
| **Net assets, end of year (millions)** | $378 |  | $259 |  | $641 |  | $541 |  | $490 |  |
| **Ratios to average net assets:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gross expenses | 0.42 | % | 0.39 | % | 0.40 | % | 0.41 | % | 0.41 | % |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses<sup>3,4</sup> | 0.40 |  | 0.38 |  | 0.39 |  | 0.40 |  | 0.40 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 1.77 |  | 1.09 |  | 1.88 |  | 2.74 |  | 2.48 |  |
| **Portfolio turnover rate<sup>5</sup>** | **27** | **%** | **58** | **%** | **64** | **%** | **41** | **%** | **52** | **%** |

---

<sup>1</sup> Per share amounts have been calculated using the average shares method. 

<sup>2</sup> Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. 

<sup>3</sup> As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and expenses, to average net assets of Class IS shares did not exceed 0.40%. In addition, the ratio of total annual fund operating expenses for Class IS shares did not exceed the ratio of total annual fund operating expenses for Class I shares. These expense limitation arrangements cannot be terminated prior to December 31, 2024 without the Board of Trustees' consent. In addition, the manager has agreed to waive the Fund's management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund. 

<sup>4</sup> Reflects fee waivers and/or expense reimbursements.

<sup>5</sup> Excluding mortgage dollar roll transactions. If mortgage dollar roll transactions had been included, the portfolio turnover rate would have been 28%, 62%, 73%, 55% and 100% for the years ended December 31, 2022, 2021, 2020, 2019 and 2018, respectively. 

See Notes to Financial Statements.

Western Asset Short-Term Bond Fund 2022 Annual Report 53

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Notes to financial statements

**1. Organization and significant accounting policies** 

Western Asset Short-Term Bond Fund (the "Fund") is a separate diversified investment series of Legg Mason Partners Income Trust (the "Trust"). The Trust, a Maryland statutory trust, is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company.

The Fund follows the accounting and reporting guidance in Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946, *Financial Services – Investment Companies* ("ASC 946"). The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles ("GAAP"), including, but not limited to, ASC 946. Estimates and assumptions are required to be made regarding assets, liabilities and changes in net assets resulting from operations when financial statements are prepared. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ. Subsequent events have been evaluated through the date the financial statements were issued.

**(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 typically 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. Investments in open-end funds are valued at the closing net asset value per share of each fund on the day of valuation. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded. 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. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund will normally use the currency exchange rates as of 4:00 p.m. (Eastern Time). 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 Trustees.

Pursuant to policies adopted by the Board of Trustees, the Fund's manager has been designated as the valuation designee and is responsible for the oversight of the daily valuation process. The Fund's manager is assisted by the Global Fund Valuation Committee (the "Valuation Committee"). The Valuation Committee is responsible for making fair value determinations, evaluating the effectiveness of the Fund's pricing policies, and reporting to

54 Western Asset Short-Term Bond Fund 2022 Annual Report

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the Fund's manager and the Board of Trustees. 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 Trustees, 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 Trustees 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:

• Level 1 — unadjusted 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.

Western Asset Short-Term Bond Fund 2022 Annual Report 55

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Notes to financial statements (cont'd)

The following is a summary of the inputs used in valuing the Fund's assets and liabilities carried at fair value:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **ASSETS** | **ASSETS** | **ASSETS** | **ASSETS** | **ASSETS** |
| Description | Quoted Prices<br>(Level 1) | Other Significant<br>Observable Inputs<br>(Level 2) | Significant<br>Unobservable<br>Inputs<br> (Level 3) | Total |
| Long-Term Investments†: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Corporate Bonds & Notes |  | $416637414 |  | $416637414 |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset-Backed Securities |  | 103840261 |  | 103840261 |
| &nbsp;&nbsp;&nbsp;&nbsp; Collateralized Mortgage Obligations |  | 94649622 |  | 94649622 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Government & Agency Obligations |  | 68269971 |  | 68269971 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mortgage-Backed Securities |  | 33316493 |  | 33316493 |
| &nbsp;&nbsp;&nbsp;&nbsp; Senior Loans |  | 9815063 |  | 9815063 |
| &nbsp;&nbsp;&nbsp;&nbsp; Sovereign Bonds |  | 1484434 |  | 1484434 |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchased Options | $165213 |  |  | 165213 |
| Total Long-Term Investments | 165213 | 728013258 |  | 728178471 |
| Short-Term Investments†: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial Paper |  | 28978219 |  | 28978219 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Government Agencies |  | 3852627 |  | 3852627 |
| &nbsp;&nbsp;&nbsp;&nbsp; Money Market Funds | 23437784 |  |  | 23437784 |
| Total Short-Term Investments | 23437784 | 32830846 |  | 56268630 |
| **Total Investments** | $**23602997** | $**760844104** |  | $**784447101** |
| Other Financial Instruments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures Contracts†† | $1249157 |  |  | $1249157 |
| &nbsp;&nbsp;&nbsp;&nbsp; Centrally Cleared Interest Rate Swaps†† |  | $1097646 |  | 1097646 |
| &nbsp;&nbsp;&nbsp;&nbsp; Centrally Cleared Credit Default Swaps on Credit Indices — Sell Protection†† |  | 117824 |  | 117824 |
| **Total Other Financial Instruments** | $**1249157** | $**1215470** |  | $**2464627** |
| **Total** | $**24852154** | $**762059574** |  | $**786911728** |
| **LIABILITIES** | **LIABILITIES** | **LIABILITIES** | **LIABILITIES** | **LIABILITIES** |
| Description | Quoted Prices<br>(Level 1) | Other Significant<br>Observable Inputs<br>(Level 2) | Significant<br>Unobservable<br>Inputs<br> (Level 3) | Total |
| Other Financial Instruments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures Contracts†† | $1289471 |  |  | $1289471 |
| &nbsp;&nbsp;&nbsp;&nbsp; Centrally Cleared Interest Rate Swaps†† |  | $1048834 |  | 1048834 |
| **Total** | $**1289471** | $**1048834** |  | $**2338305** |

---

† See Schedule of Investments for additional detailed categorizations.

†† Reflects the unrealized appreciation (depreciation) of the instruments.

56 Western Asset Short-Term Bond Fund 2022 Annual Report

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**(b) Purchased options.** When the Fund purchases an option, an amount equal to the premium paid by the Fund is recorded as an investment on the Statement of Assets and Liabilities, the value of which is marked-to-market to reflect the current market value of the option purchased. If the purchased option expires, the Fund realizes a loss equal to the amount of premium paid. When an instrument is purchased or sold through the exercise of an option, the related premium paid is added to the basis of the instrument acquired or deducted from the proceeds of the instrument sold. The risk associated with purchasing put and call options is limited to the premium paid.

**(c) Written options.** When the Fund writes an option, an amount equal to the premium received by the Fund is recorded as a liability, the value of which is marked-to-market daily to reflect the current market value of the option written. If the option expires, the premium received is recorded as a realized gain. When a written call option is exercised, the difference between the premium received plus the option exercise price and the Fund's basis in the underlying security (in the case of a covered written call option), or the cost to purchase the underlying security (in the case of an uncovered written call option), including brokerage commission, is recognized as a realized gain or loss. When a written put option is exercised, the amount of the premium received is subtracted from the cost of the security purchased by the Fund from the exercise of the written put option to form the Fund's basis in the underlying security purchased. The writer or buyer of an option traded on an exchange can liquidate the position before the exercise of the option by entering into a closing transaction. The cost of a closing transaction is deducted from the original premium received resulting in a realized gain or loss to the Fund.

The risk in writing a covered call option is that the Fund may forego the opportunity of profit if the market price of the underlying security increases and the option is exercised. The risk in writing a put option is that the Fund may incur a loss if the market price of the underlying security decreases and the option is exercised. The risk in writing an uncovered call option is that the Fund is exposed to the risk of loss if the market price of the underlying security increases. 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.

**(d) 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. For certain futures, including foreign denominated futures, variation margin is not settled daily, but is recorded as a net variation margin payable or receivable. The daily changes in contract value are recorded as unrealized appreciation or depreciation in the Statement of Operations and the Fund recognizes a realized gain or loss when the contract is closed.

Western Asset Short-Term Bond Fund 2022 Annual Report 57

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Notes to financial statements (cont'd)

Futures contracts involve, to varying degrees, risk of loss in excess of the amounts reflected in the financial statements. 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.

**(e) Swap agreements.** The Fund invests in swaps for the purpose of managing its exposure to interest rate, credit or market risk, or for other purposes. The use of swaps involves risks that are different from those associated with other portfolio transactions. Swap agreements are privately negotiated in the over-the-counter market and may be entered into as a bilateral contract ("OTC Swaps") or centrally cleared ("Centrally Cleared Swaps"). Unlike Centrally Cleared Swaps, the Fund has credit exposure to the counterparties of OTC Swaps.

In a Centrally Cleared Swap, immediately following execution of the swap, the swap agreement is submitted to a clearinghouse or central counterparty (the "CCP") and the CCP becomes the ultimate counterparty of the swap agreement. The Fund is required to interface with the CCP through a broker, acting in an agency capacity. All payments are settled with the CCP through the broker. Upon entering into a Centrally Cleared Swap, the Fund is required to deposit initial margin with the broker in the form of cash or securities.

Swap contracts are marked-to-market daily and changes in value are recorded as unrealized appreciation (depreciation). The daily change in valuation of Centrally Cleared Swaps, if any, is recorded as a net receivable or payable for variation margin on the Statement of Assets and Liabilities. Gains or losses are realized upon termination of the swap agreement. Collateral, in the form of restricted cash or securities, may be required to be held in segregated accounts with the Fund's custodian in compliance with the terms of the swap contracts. Securities posted as collateral for swap contracts are identified in the Schedule of Investments and restricted cash, if any, is identified on the Statement of Assets and Liabilities. Risks may exceed amounts recorded in the Statement of Assets and Liabilities. These risks include changes in the returns of the underlying instruments, failure of the counterparties to perform under the contracts' terms, and the possible lack of liquidity with respect to the swap agreements.

OTC Swap payments received or made at the beginning of the measurement period are reflected as a premium or deposit, respectively, on the Statement of Assets and Liabilities. These upfront payments are amortized over the life of the swap and are recognized as realized gain or loss in the Statement of Operations. Net periodic payments received or paid by the Fund are recognized as a realized gain or loss in the Statement of Operations.

The Fund's maximum exposure in the event of a defined credit event on a credit default swap to sell protection is the notional amount. As of December 31, 2022, the total notional value of all credit default swaps to sell protection was $31,578,000. This amount would be offset by the value of the swap's reference entity, upfront premiums received on the swap and any amounts received from the settlement of a credit default swap where the Fund bought protection for the same referenced security/entity.

For average notional amounts of swaps held during the year ended December 31, 2022, see Note 4.

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***<u>Credit default swaps</u>***

The Fund enters into credit default swap ("CDS") contracts for investment purposes, to manage its credit risk or to add leverage. CDS agreements involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party, typically corporate or sovereign issuers, on a specified obligation, or in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising a credit index. The Fund may use a CDS to provide protection against defaults of the issuers (i.e., to reduce risk where the Fund has exposure to an issuer) or to take an active long or short position with respect to the likelihood of a particular issuer's default. As a seller of protection, the Fund generally receives an upfront payment or a stream of payments throughout the term of the swap provided that there is no credit event. If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the maximum potential amount of future payments (undiscounted) that the Fund could be required to make under a CDS agreement would be an amount equal to the notional amount of the agreement. These amounts of potential payments will be partially offset by any recovery of values from the respective referenced obligations. As a seller of protection, the Fund effectively adds leverage to its portfolio because, in addition to its total net assets, the Fund is subject to investment exposure on the notional amount of the swap. As a buyer of protection, the Fund generally receives an amount up to the notional value of the swap if a credit event occurs.

Implied spreads are the theoretical prices a lender receives for credit default protection. When spreads rise, market perceived credit risk rises and when spreads fall, market perceived credit risk falls. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to enter into the agreement. Wider credit spreads and decreasing market values, when compared to the notional amount of the swap, represent a deterioration of the referenced entity's credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. Credit spreads utilized in determining the period end market value of CDS agreements on corporate or sovereign issues are disclosed in the Schedule of Investments and serve as an indicator of the current status of the payment/ performance risk and represent the likelihood or risk of default for credit derivatives. For CDS agreements on asset-backed securities and credit indices, the quoted market prices and resulting values, particularly in relation to the notional amount of the contract as well as the annual payment rate, serve as an indication of the current status of the payment/ performance risk.

The Fund's maximum risk of loss from counterparty risk, as the protection buyer, is the fair value of the contract (this risk is mitigated by the posting of collateral by the counterparty to the Fund to cover the Fund's exposure to the counterparty). As the protection seller, the Fund's maximum risk is the notional amount of the contract. CDS are considered to have credit risk-related contingent features since they require payment by the protection seller to the protection buyer upon the occurrence of a defined credit event.

Entering into a CDS agreement involves, to varying degrees, elements of credit, market and documentation risk in excess of the related amounts recognized on the Statement of Assets

Western Asset Short-Term Bond Fund 2022 Annual Report 59

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Notes to financial statements (cont'd)

and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreement may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreement, and that there will be unfavorable changes in net interest rates.

***<u>Interest rate swaps</u>***

The Fund enters into interest rate swap contracts to manage its exposure to interest rate risk. Interest rate swaps are agreements between two parties to exchange cash flows based on a notional principal amount. The Fund may elect to pay a fixed rate and receive a floating rate, receive a fixed rate and pay a floating rate, or pay and receive a floating rate, on a notional principal amount. Interest rate swaps are marked-to-market daily based upon quotations from market makers and the change, if any, is recorded as an unrealized appreciation or depreciation in the Statement of Operations. When a swap contract is terminated early, the Fund records a realized gain or loss equal to the difference between the original cost and the settlement amount of the closing transaction.

The risks of interest rate swaps include changes in market conditions that will affect the value of the contract or changes in the present value of the future cash flow streams and the possible inability of the counterparty to fulfill its obligations under the agreement. The Fund's maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract's remaining life, to the extent that amount is positive. This risk is mitigated by the posting of collateral by the counterparty to the Fund to cover the Fund's exposure to the counterparty.

**(f) Loan participations.** The Fund may invest in loans arranged through private negotiation between one or more financial institutions. The Fund's investment in any such loan may be in the form of a participation in or an assignment of the loan. In connection with purchasing participations, the Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement related to the loan, or any rights of off-set against the borrower and the Fund may not benefit directly from any collateral supporting the loan in which it has purchased the participation.

The Fund assumes the credit risk of the borrower, the lender that is selling the participation and any other persons interpositioned between the Fund and the borrower. In the event of the insolvency of the lender selling the participation, the Fund may be treated as a general creditor of the lender and may not benefit from any off-set between the lender and the borrower.

**(g) Stripped securities.** The Fund may invest in ''Stripped Securities,'' a term used collectively for components, or strips, of fixed income securities. Stripped Securities can be principal only securities ("PO"), which are debt obligations that have been stripped of unmatured interest coupons, or interest only securities ("IO"), which are unmatured interest coupons that have been stripped from debt obligations. The market value of Stripped Securities will fluctuate in response to changes in economic conditions, rates of prepayment, interest rates and the market's perception of the securities. However, fluctuations in response to interest rates may be greater in Stripped Securities than for debt obligations of comparable maturities that pay interest currently. The amount of fluctuation may increase with a longer period of maturity.

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The yield to maturity on IO's is sensitive to the rate of principal repayments (including prepayments) on the related underlying debt obligation and principal payments may have a material effect on yield to maturity. If the underlying debt obligation experiences greater than anticipated prepayments of principal, the Fund may not fully recoup its initial investment in IO's.

**(h) Securities traded on a to-be-announced basis.** The Fund may trade securities on a to-be-announced ("TBA") basis. In a TBA transaction, the Fund commits to purchasing or selling securities which have not yet been issued by the issuer and for which specific information, such as the face amount, maturity date and underlying pool of investments in U.S. government agency mortgage pass-through securities, is not announced. Securities purchased on a TBA basis are not settled until they are delivered to the Fund. Beginning on the date the Fund enters into a TBA transaction, cash, U.S. government securities or other liquid high-grade debt obligations are segregated in an amount equal in value to the purchase price of the TBA security. These securities are subject to market fluctuations and their current value is determined in the same manner as for other securities.

**(i) Mortgage dollar rolls.** The Fund may enter into mortgage dollar rolls in which the Fund sells mortgage-backed securities for delivery in the current month, realizing a gain or loss, and simultaneously entering into contracts to repurchase substantially similar (same type, coupon and maturity) securities to settle on a specified future date.

The Fund executes its mortgage dollar rolls entirely in the TBA market, whereby the Fund makes a forward commitment to purchase a security and, instead of accepting delivery, the position is offset by a sale of the security with a simultaneous agreement to repurchase at a future date. The Fund accounts for mortgage dollar rolls as purchases and sales.

The risk of entering into mortgage dollar rolls is that the market value of the securities the Fund is obligated to repurchase under the agreement may decline below the repurchase price. In the event the buyer of securities under a mortgage dollar roll files for bankruptcy or becomes insolvent, the Fund's use of the proceeds of the mortgage dollar roll may be restricted pending a determination by the counterparty, or its trustee or receiver, whether to enforce the Fund's obligation to repurchase the securities.

**(j) Inflation-indexed bonds.** Inflation-indexed bonds are fixed income securities whose principal value or interest rate is periodically adjusted according to the rate of inflation. As the index measuring inflation changes, the principal value or interest rate of inflation-indexed bonds will be adjusted accordingly. Inflation adjustments to the principal amount of inflation-indexed bonds are reflected as an increase or decrease to investment income on the Statement of Operations. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury inflation-indexed bonds. For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal.

**(k) Credit and market risk.** The Fund invests in high-yield instruments that are subject to certain credit and market risks. The yields of high-yield obligations reflect, among other things, perceived credit and market risks. The Fund's investments in securities rated below investment grade typically involve risks not associated with higher rated securities

Western Asset Short-Term Bond Fund 2022 Annual Report 61

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Notes to financial statements (cont'd)

including, among others, greater risk related to timely and ultimate payment of interest and principal, greater market price volatility and less liquid secondary market trading.

Investments in securities that are collateralized by real estate mortgages are subject to certain credit and liquidity risks. When market conditions result in an increase in default rates of the underlying mortgages and the foreclosure values of underlying real estate properties are materially below the outstanding amount of these underlying mortgages, collection of the full amount of accrued interest and principal on these investments may be doubtful. Such market conditions may significantly impair the value and liquidity of these investments and may result in a lack of correlation between their credit ratings and values.

**(l) Foreign investment risks.** The Fund's investments in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies or may pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Fund. Foreign investments may also subject the Fund to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which affect the market and/or credit risk of the investments.

**(m) Counterparty risk and credit-risk-related contingent features of derivative instruments.** The Fund may invest in certain securities or engage in other transactions where the Fund is exposed to counterparty credit risk in addition to broader market risks. The Fund may invest in securities of issuers, which may also be considered counterparties as trading partners in other transactions. This may increase the risk of loss in the event of default or bankruptcy by the counterparty or if the counterparty otherwise fails to meet its contractual obligations. The Fund's subadviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. Market events and changes in overall economic conditions may impact the assessment of such counterparty risk by the subadviser. In addition, declines in the values of underlying collateral received may expose the Fund to increased risk of loss.

With exchange traded and centrally cleared derivatives, there is less counterparty risk to the Fund since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, the credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default of the clearing broker or clearinghouse.

The Fund has entered into master agreements, such as an International Swaps and Derivatives Association, Inc. Master Agreement ("ISDA Master Agreement") or similar agreement, with certain of its derivative counterparties that govern over-the-counter ("OTC") derivatives and provide for general obligations, representations, agreements, collateral posting terms, netting provisions in the event of default or termination and credit related contingent features. The credit related contingent features include, but are not

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limited to, a percentage decrease in the Fund's net assets or net asset value per share over a specified period of time. If these credit related contingent features were triggered, the derivatives counterparty could terminate the positions and demand payment or require additional collateral.

Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments' payables and/or receivables with collateral held and/or posted and create one single net payment. However, absent an event of default by the counterparty or a termination of the agreement, the terms of the ISDA Master Agreements do not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities across transactions between the Fund and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction.

Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearinghouse for exchange traded derivatives while collateral terms are contract specific for OTC traded derivatives. Cash collateral that has been pledged to cover obligations of the Fund under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

As of December 31, 2022, the Fund did not have any open OTC derivative transactions with credit related contingent features in a net liability position.

**(n) Security transactions and investment income.** Security transactions are accounted for on a trade date basis. Interest income (including interest income from payment-in-kind securities), adjusted for amortization of premium and accretion of discount, is recorded on the accrual basis. Paydown gains and losses on mortgage- and asset-backed securities are recorded as adjustments to interest income. Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities. Foreign dividend income is recorded on the ex-dividend date or as soon as practicable after the Fund determines the existence of a dividend declaration after exercising reasonable due diligence. The cost of investments sold is determined by use of the specific identification method. To the extent any issuer defaults or a credit event occurs that impacts the issuer, the Fund may halt any additional interest income accruals and consider the realizability of interest accrued up to the date of default or credit event.

**(o) Distributions to shareholders.** Distributions from net investment income of the Fund are declared each business day to shareholders of record and are paid monthly. Distributions of net realized gains, if any, are declared at least annually. Distributions to shareholders of the Fund are recorded on the ex-dividend date and are determined in accordance with income tax regulations, which may differ from GAAP.

**(p) Share class accounting.** Investment income, common expenses and realized/ unrealized gains (losses) on investments are allocated to the various classes of the Fund on the basis of daily net assets of each class. Fees relating to a specific class are charged directly to that share class.

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Notes to financial statements (cont'd)

**(q) Compensating balance arrangements.** The Fund has an arrangement with its custodian bank whereby a portion of the custodian's fees are paid indirectly by credits earned on the Fund's cash on deposit with the bank.

**(r) Federal and other taxes.** It is the Fund's policy to comply with the federal income and excise tax requirements of the Internal Revenue Code of 1986 (the "Code"), as amended, applicable to regulated investment companies. Accordingly, the Fund intends to distribute its taxable income and net realized gains, if any, to shareholders in accordance with timing requirements imposed by the Code. Therefore, no federal or state income tax provision is required in the Fund's financial statements.

Management has analyzed the Fund's tax positions taken on income tax returns for all open tax years and has concluded that as of December 31, 2022, no provision for income tax is required in the Fund's financial statements. The Fund's federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.

Under the applicable foreign tax laws, a withholding tax may be imposed on interest, dividends and capital gains at various rates.

**(s) Reclassification.** GAAP requires that certain components of net assets be reclassified to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. During the current year, the following reclassifications have been made:

---

| | | |
|:---|:---|:---|
| | Total Distributable<br>Earnings (Loss) | Paid-in<br>Capital |
| (a) | $182058 | $(182058) |

---

<sup>(a)</sup> Reclassifications are due to a taxable overdistribution.

**2. Investment management agreement and other transactions with affiliates** 

Legg Mason Partners Fund Advisor, LLC ("LMPFA") is the Fund's investment manager. Western Asset Management Company, LLC ("Western Asset") and Western Asset Management Company Limited ("Western Asset London") are the Fund's subadvisers. LMPFA, Western Asset and Western Asset London are indirect, wholly-owned subsidiaries of Franklin Resources, Inc. ("Franklin Resources").

Under the investment management agreement, the Fund pays an investment management fee, calculated daily and paid monthly, at an annual rate of 0.35% of the Fund's average daily net assets.

LMPFA provides administrative and certain oversight services to the Fund. LMPFA delegates to the subadvisers the day-to-day portfolio management of the Fund. Western Asset London provides certain subadvisory services to the Fund relating to currency transactions and investments in non-U.S. dollar denominated securities and related foreign currency instruments. For its services, LMPFA pays Western Asset monthly 70% of the net management fee it receives from the Fund. In turn, Western Asset pays Western Asset

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London a monthly subadvisory fee in an amount equal to 100% of the management fee paid to Western Asset on the assets that Western Asset allocates to Western Asset London to manage.

As a result of expense limitation arrangements between the Fund and LMPFA, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and expenses, to average net assets of Class A, Class C, Class C1, Class R, Class I and Class IS shares did not exceed 0.70%, 1.55%, 1.05%, 1.10%, 0.42% and 0.40%, respectively. In addition, the ratio of total annual fund operating expenses for Class IS shares did not exceed the ratio of total annual fund operating expenses for Class I shares. These expense limitation arrangements cannot be terminated prior to December 31, 2024 without the Board of Trustees' consent. In addition, the manager has agreed to waive the Fund's management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund (the "affiliated money market fund waiver"). The affiliated money market fund waiver is not subject to the recapture provision discussed below.

During the year ended December 31, 2022, fees waived and/or expenses reimbursed amounted to $505,798, which included an affiliated money market fund waiver of $23,113.

LMPFA is permitted to recapture amounts waived and/or reimbursed to a class within two years after the fiscal year in which LMPFA earned the fee or incurred the expense if the class' total annual fund operating expenses have fallen to a level below the expense limitation ("expense cap") in effect at the time the fees were earned or the expenses incurred. In no case will LMPFA recapture any amount that would result, on any particular business day of the Fund, in the class' total annual fund operating expenses exceeding the expense cap or any other lower limit then in effect.

Pursuant to these arrangements, at December 31, 2022, the Fund had remaining fee waivers and/or expense reimbursements subject to recapture by LMPFA and respective dates of expiration as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Class A | Class R | Class I | Class IS |
| Expires December 31, 2023 | $12683 | $197 | $170832 |  |
| Expires December 31, 2024 | 29103 | 165 | 404109 | $49308 |
| **Total fee waivers/expense reimbursements subject to recapture** | $**41786** | $**362** | $**574941** | $**49308** |

---

For the year ended December 31, 2022, LMPFA did not recapture any fees.

Franklin Templeton Investor Services, LLC ("Investor Services") serves as the Fund's shareholder servicing agent and acts as the Fund's transfer agent and dividend-paying agent. Investor Services is an indirect, wholly-owned subsidiary of Franklin Resources. Franklin Distributors, LLC ("Franklin Distributors") serves as the Fund's sole and exclusive distributor. Franklin Distributors is an indirect, wholly-owned broker-dealer subsidiary of Franklin Resources.

There is a maximum initial sales charge of 2.25% for Class A shares. There is a contingent deferred sales charge ("CDSC") of 1.00% on Class C shares, which applies if redemption occurs within 12 months from purchase payment. In certain cases, Class A shares have a

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Notes to financial statements (cont'd)

0.50% CDSC, which applies if redemption occurs within 18 months from purchase payment. This CDSC only applies to those purchases of Class A shares, which, when combined with current holdings of other shares of funds sold by Franklin Distributors, equal or exceed $500,000 in the aggregate. These purchases do not incur an initial sales charge.

For the year ended December 31, 2022, sales charges retained by and CDSCs paid to Franklin Distributors and its affiliates, if any, were as follows:

---

| | |
|:---|:---|
| | Class A |
| Sales charges | $28355 |
| CDSCs |  |

---

All officers and one Trustee of the Trust are employees of Franklin Resources or its affiliates and do not receive compensation from the Trust.

As of December 31, 2022, Franklin Resources and its affiliates owned 29% of the Fund.

**3. Investments** 

During the year ended December 31, 2022, the aggregate cost of purchases and proceeds from sales of investments (excluding short-term investments) and U.S. Government & Agency Obligations were as follows:

---

| | | |
|:---|:---|:---|
| | Investments | U.S. Government &<br>Agency Obligations |
| Purchases | $235032305 | $77186079 |
| Sales | 102317261 | 96186378 |

---

At December 31, 2022, the aggregate cost of investments and the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Cost/Premiums<br>Paid (Received) | Gross<br>Unrealized<br>Appreciation | Gross<br>Unrealized<br>Depreciation | Net<br>Unrealized<br>Appreciation<br>(Depreciation) |
| Securities | $832545331 | $436996 | $(48535226) | $(48098230) |
| Futures contracts |  | 1249157 | (1289471) | (40314) |
| Swap contracts | 98739 | 1215470 | (1048834) | 166636 |

---

66 Western Asset Short-Term Bond Fund 2022 Annual Report

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**4. Derivative instruments and hedging activities** 

Below is a table, grouped by derivative type, that provides information about the fair value and the location of derivatives within the Statement of Assets and Liabilities at December 31, 2022.

---

| | | | |
|:---|:---|:---|:---|
| **ASSET DERIVATIVES<sup>1</sup>** | **ASSET DERIVATIVES<sup>1</sup>** | **ASSET DERIVATIVES<sup>1</sup>** | **ASSET DERIVATIVES<sup>1</sup>** |
|  | Interest<br> Rate Risk | Credit<br> Risk | Total |
| Purchased options<sup>2</sup> | $165213 |  | $165213 |
| Futures contracts<sup>3</sup> | 1249157 |  | 1249157 |
| Centrally cleared swap contracts<sup>4</sup> | 1097646 | $117824 | 1215470 |
| **Total** | $**2512016** | $**117824** | $**2629840** |
| **LIABILITY DERIVATIVES<sup>1</sup>** | **LIABILITY DERIVATIVES<sup>1</sup>** | **LIABILITY DERIVATIVES<sup>1</sup>** | **LIABILITY DERIVATIVES<sup>1</sup>** |
|  |  |  | Interest<br> Rate Risk |
| Futures contracts<sup>3</sup> |  |  | $1289471 |
| Centrally cleared swap contracts<sup>4</sup> |  |  | 1048834 |
| **Total** |  |  | $**2338305** |

---

<sup>1</sup> Generally, the balance sheet location for asset derivatives is receivables/net unrealized appreciation and for liability derivatives is payables/net unrealized depreciation.

<sup>2</sup> Market value of purchased options is reported in Investments in unaffiliated securities at value in the Statement of Assets and Liabilities.

<sup>3</sup> Includes cumulative unrealized appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only net variation margin is reported within the receivables and/or payables on the Statement of Assets and Liabilities.

<sup>4</sup> Includes cumulative unrealized appreciation (depreciation) of centrally cleared swap contracts as reported in the Schedule of Investments. Only net variation margin is reported within the receivables and/or payables on the Statement of Assets and Liabilities.

The following tables provide information about the effect of derivatives and hedging activities on the Fund's Statement of Operations for the year ended December 31, 2022. The first table provides additional detail about the amounts and sources of gains (losses) realized on derivatives during the period. The second table provides additional information about the change in net unrealized appreciation (depreciation) resulting from the Fund's derivatives and hedging activities during the period.

---

| | | | |
|:---|:---|:---|:---|
| **AMOUNT OF NET REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED** | **AMOUNT OF NET REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED** | **AMOUNT OF NET REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED** | **AMOUNT OF NET REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED** |
|  | Interest<br>Rate Risk | Credit<br>Risk | Total |
| Purchased options<sup>1</sup> | $(362525) |  | $(362525) |
| Futures contracts | (8761221) |  | (8761221) |
| Written options | 1872664 |  | 1872664 |
| Swap contracts | (991596) | $72534 | (919062) |
| **Total** | $**(8242678)** | $**72534** | $**(8170144)** |

---

<sup>1</sup> Net realized gain (loss) from purchased options is reported in Net Realized Gain (Loss) From Investment transactions in unaffiliated securities in the Statement of Operations.

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Notes to financial statements (cont'd)

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| | | | |
|:---|:---|:---|:---|
| **CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED** | **CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED** | **CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED** | **CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED** |
|  | Interest<br> Rate Risk | Credit<br>Risk | Total |
| Purchased options<sup>1</sup> | $(93234) |  | $(93234) |
| Futures contracts | 1008064 |  | 1008064 |
| Written options | (13105) |  | (13105) |
| Swap contracts | 334313 | $79057 | 413370 |
| **Total** | $**1236038** | $**79057** | $**1315095** |

---

<sup>1</sup> The change in net unrealized appreciation (depreciation) from purchased options is reported in the Change in Net Unrealized Appreciation (Depreciation) From Investments in unaffiliated securities in the Statement of Operations.

During the year ended December 31, 2022, the volume of derivative activity for the Fund was as follows:

---

| | |
|:---|:---|
| | Average Market<br>Value |
| Purchased options | $44092 |
| Written options† | 162933 |
| Futures contracts (to buy) | 344461374 |
| Futures contracts (to sell) | 106636325 |
|  | Average Notional<br>Balance |
| Interest rate swap contracts | $128914846 |
| Credit default swap contracts (sell protection) | 14034846 |

---

† At December 31, 2022, there were no open positions held in this derivative.

**5. Class specific expenses, waivers and/or expense reimbursements** 

The Fund has adopted a Rule 12b-1 shareholder services and distribution plan and under that plan the Fund pays service and/or distribution fees with respect to its Class A, Class C, Class C1 and Class R shares calculated at the annual rate of 0.25%, 1.00%, 0.50% and 0.50% of the average daily net assets of each class, respectively. Service and/or distribution fees are accrued daily and paid monthly.

For the year ended December 31, 2022, class specific expenses were as follows:

---

| | | |
|:---|:---|:---|
| | Service and/or<br>Distribution Fees | Transfer Agent<br>Fees |
| Class A | $240620 | $76918 |
| Class C | 48588 | 4170 |
| Class C1 | 7889 | 1838 |
| Class R | 402 | 328 |
| Class I |  | 474449 |
| Class IS |  | 50141 |
| **Total** | $**297499** | $**607844** |

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For the year ended December 31, 2022, waivers and/or expense reimbursements by class were as follows:

---

| | |
|:---|:---|
| | Waivers/Expense<br>Reimbursements |
| Class A | $31976 |
| Class C | 147 |
| Class C1 | 48 |
| Class R | 167 |
| Class I | 414420 |
| Class IS | 59040 |
| **Total** | $**505798** |

---

**6. Distributions to shareholders by class** 

---

| | | |
|:---|:---|:---|
| | Year Ended<br>December 31, 2022 | Year Ended<br>December 31, 2021 |
| **Net Investment Income:** |  |  |
| Class A | $2097196 | $1024827 |
| Class C | 62628 | 44143 |
| Class C1 | 27595 | 31774 |
| Class R | 1420 | 655 |
| Class I | 7757565 | 3877352 |
| Class IS | 7939422 | 9014895 |
| **Total** | $**17885826** | $**13993646** |

---

**7. Shares of beneficial interest** 

At December 31, 2022, the Trust had an unlimited number of shares of beneficial interest authorized with a par value of $0.00001 per share. The Fund has the ability to issue multiple classes of shares. Each class of shares represents an identical interest and has the same rights, except that each class bears certain direct expenses, including those specifically related to the distribution of its shares.

Transactions in shares of each class were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Year Ended<br>December 31, 2022 | Year Ended<br>December 31, 2022 | Year Ended<br>December 31, 2021 | Year Ended<br>December 31, 2021 |
| | Shares | Amount | Shares | Amount |
| **Class A** |  |  |  |  |
| Shares sold | 27211245 | $99673403 | 11065456 | $43487057 |
| Shares issued on reinvestment | 565667 | 2063381 | 253414 | 993358 |
| Shares repurchased | (11831416) | (43403813) | (6554161) | (25724798) |
| **Net increase** | **15945496** | $**58332971** | **4764709** | $**18755617** |

---

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Notes to financial statements (cont'd)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Year Ended<br>December 31, 2022 | Year Ended<br>December 31, 2022 | Year Ended<br>December 31, 2021 | Year Ended<br>December 31, 2021 |
| | Shares | Amount | Shares | Amount |
| **Class C** |  |  |  |  |
| Shares sold | 1065054 | $3901644 | 1117449 | $4396020 |
| Shares issued on reinvestment | 17084 | 62210 | 11055 | 43350 |
| Shares repurchased | (906614) | (3327839) | (1548813) | (6076518) |
| **Net increase (decrease)** | **175524** | $**636015** | **(420309)** | $**(1637148)** |
| **Class C1** |  |  |  |  |
| Shares sold | 13221 | $49190 | 17266 | $71113 |
| Shares issued on reinvestment | 7388 | 27076 | 7871 | 30949 |
| Shares repurchased | (56038) | (210657) | (563232) | (2217950) |
| **Net decrease** | **(35429)** | $**(134391)** | **(538095)** | $**(2115888)** |
| **Class R** |  |  |  |  |
| Shares sold | 10090 | $37055 | 4394 | $17265 |
| Shares issued on reinvestment | 389 | 1418 | 167 | 655 |
| Shares repurchased | (2118) | (7839) | (258) | (1008) |
| **Net increase** | **8361** | $**30634** | **4303** | $**16912** |
| **Class I** |  |  |  |  |
| Shares sold | 50590798 | $187557778 | 74234862 | $291904841 |
| Shares issued on reinvestment | 1995076 | 7307799 | 973115 | 3812914 |
| Shares repurchased | (58762460) | (215470335) | (27650385) | (108478343) |
| **Net increase (decrease)** | **(6176586)** | $**(20604758)** | **47557592** | $**187239412** |
| **Class IS** |  |  |  |  |
| Shares sold | 77230828 | $285845341 | 81092847 | $319324724 |
| Shares issued on reinvestment | 2150746 | 7855706 | 2159287 | 8486996 |
| Shares repurchased | (41054657) | (151829519) | (26817616) | (105635467) |
| Shares redeemed in-kind |  |  | (151895973) | (596951174) |
| **Net increase (decrease)** | **38326917** | $**141871528** | **(95461455)** | $**(374774921)** |

---

**8. Transactions with affiliated company** 

As defined by the 1940 Act, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control with the Fund. The following company was considered an affiliated company for

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all or some portion of the year ended December 31, 2022. The following transactions were effected in such company for the year ended December 31, 2022.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | Purchased | Purchased | Sold | Sold |
| | Affiliate<br> Value at<br>December 31,<br>2021 | Cost | Shares | Proceeds | Shares |
| Western Asset<br> Premier Institutional<br> Government Reserves,<br> Premium Shares | $3720381 | $393126928 | 393126928 | $373409525 | 373409525 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| (cont'd) | Realized<br> Gain (Loss) | Dividend<br>Income | Net Increase<br>(Decrease) in<br>Unrealized<br>Appreciation<br>(Depreciation) | Affiliate<br>Value at<br>December 31,<br>2022 |
| Western Asset Premier Institutional Government Reserves, Premium Shares |  | $342177 |  | $23437784 |

---

**9. Redemption facility** 

The Fund and certain other participating funds within the Trust, together with other U.S. registered and foreign investment funds (collectively, the "Borrowers") managed by LMPFA or Franklin Resources, are borrowers in a joint syndicated senior unsecured credit facility totaling $2.675 billion (the "Global Credit Facility"). The Global Credit Facility provides a source of funds to the Borrowers for temporary and emergency purposes, including the ability to meet future unanticipated or unusually large redemption requests. Unless renewed, the Global Credit Facility will terminate on February 2, 2024.

Under the terms of the Global Credit Facility, the Fund shall, in addition to interest charged on any borrowings made by the Fund and other costs incurred by the Fund, pay its share of fees and expenses incurred in connection with the implementation and maintenance of the Global Credit Facility, based upon its relative share of the aggregate net assets of all the Borrowers, including an annual commitment fee of 0.15% based upon the unused portion of the Global Credit Facility. These fees are reflected in the Statement of Operations. The Fund did not utilize the Global Credit Facility during the year ended December 31, 2022.

**10. Redemptions in-kind** 

The Fund may make payment for Fund shares redeemed wholly or in part by distributing portfolio securities to shareholders. For the year ended December 31, 2022, the Fund had no redemptions in-kind. For the year ended December 31, 2021, the Fund had redemptions in-kind with total proceeds in the amount of $596,951,174. The net realized gain on these redemptions in-kind amounted to $7,930,835, which was not realized for tax purposes.

Western Asset Short-Term Bond Fund 2022 Annual Report 71

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Notes to financial statements (cont'd)

**11. Income tax information and distributions to shareholders** 

The tax character of distributions paid during the fiscal years ended December 31, was as follows:

---

| | | |
|:---|:---|:---|
| | 2022 | 2021 |
| **Distributions paid from:** |  |  |
| Ordinary income | $17885826 | $13993646 |

---

As of December 31, 2022, the components of distributable earnings (loss) on a tax basis were as follows:

---

| | |
|:---|:---|
| Deferred capital losses\* | $(40259357) |
| Other book/tax temporary differences<sup>(a)</sup> | (30810) |
| Unrealized appreciation (depreciation)<sup>(b)</sup> | (47971908) |
| **Total distributable earnings (loss) — net** | $**(88262075)** |

---

\* These capital losses have been deferred in the current year as either short-term or long-term losses. The losses will be deemed to occur on the first day of the next taxable year in the same character as they were originally deferred and will be available to offset future taxable capital gains. 

<sup>(a)</sup> Other book/tax temporary differences are attributable to the tax deferral of losses on straddles, the realization for tax purposes of unrealized gains (losses) on certain futures and options contracts, the difference between cash and accrual basis distributions paid and book/tax differences in the timing of the deductibility of various expenses. 

<sup>(b)</sup> The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable to the tax deferral of losses on wash sales and the difference between book and tax amortization methods for premium on fixed income securities.

**12. Recent accounting pronouncement** 

In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04, *Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting*. In January 2021, the FASB issued ASU No. 2021-01, with further amendments to Topic 848. The amendments in the ASUs provide optional temporary accounting recognition and financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the LIBOR and other interbank-offered based reference rates as of the end of 2021 and 2023. The ASUs are effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management has reviewed the requirements and believes the adoption of these ASUs will not have a material impact on the financial statements.

**13. Other matters** 

The outbreak of the respiratory illness COVID-19 (commonly referred to as "coronavirus") has continued to rapidly spread around the world, causing considerable uncertainty for the global economy and financial markets. The ultimate economic fallout from the pandemic, and the long-term impact on economies, markets, industries and individual issuers, are not known. The COVID-19 pandemic could adversely affect the value and liquidity of the Fund's investments, impair the Fund's ability to satisfy redemption requests, and negatively impact the Fund's performance. In addition, the outbreak of COVID-19, and measures taken to

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mitigate its effects, could result in disruptions to the services provided to the Fund by its service providers.

\* \* \*

The Fund's investments, payment obligations, and financing terms may be based on floating rates, such as the London Interbank Offered Rate, or "LIBOR," which is the offered rate for short-term Eurodollar deposits between major international banks. On March 5, 2021, the ICE Benchmark Administration, the administrator of LIBOR, stated that it will cease the publication of the overnight and one-, three-, six- and twelve-month USD LIBOR settings immediately following the LIBOR publication on Friday, June 30, 2023. All other LIBOR settings, including the one-week and two-month USD LIBOR settings, have ceased publication as of January 1, 2022. In March 2022, the U.S. federal government enacted legislation to establish a process for replacing LIBOR in certain existing contracts that do not already provide for the use of a clearly defined or practicable replacement benchmark rate as described in the legislation. Generally speaking, for contracts that do not contain a fallback provision as described in the legislation, a benchmark replacement recommended by the Federal Reserve Board will effectively automatically replace the USD LIBOR benchmark in the contract after June 30, 2023. The recommended benchmark replacement will be based on the Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York, including certain spread adjustments and benchmark replacement conforming changes. There remains uncertainty regarding the impact of the transition from LIBOR on the Fund's transactions and the financial markets generally.

\* \* \*

Russia's military invasion of Ukraine in February 2022, the resulting responses by the United States and other countries, and the potential for wider conflict could increase volatility and uncertainty in the financial markets and adversely affect regional and global economies. The United States and other countries have imposed broad-ranging economic sanctions on Russia and certain Russian individuals, banking entities and corporations as a response to its invasion of Ukraine. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. These sanctions, as well as any other economic consequences related to the invasion, such as additional sanctions, boycotts or changes in consumer or purchaser preferences or cyberattacks on governments, companies or individuals, may further decrease the value and liquidity of certain Russian securities and securities of issuers in other countries that are subject to economic sanctions related to the invasion. To the extent that the Fund has exposure to Russian investments or investments in countries affected by the invasion, the Fund's ability to price, buy, sell, receive or deliver such investments was impaired. The Fund could determine at any time that certain of the most affected securities have little or no value. In addition, any exposure that the Fund may have to counterparties in Russia or in countries affected by the invasion could negatively impact the Fund's portfolio. The extent and duration of Russia's military actions and the repercussions of such actions (including any retaliatory actions or countermeasures that may be taken by those subject to sanctions) are impossible to predict, but could result in significant market disruptions, including in the oil and natural gas markets, and may negatively affect global supply chains, inflation and global growth. These and any related

Western Asset Short-Term Bond Fund 2022 Annual Report 73

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Notes to financial statements (cont'd)

events could significantly impact the Fund's performance and the value of an investment in the Fund, even beyond any direct exposure the Fund may have to Russian issuers or issuers in other countries affected by the invasion. At December 31, 2022, the Fund had 0.10% of its net assets invested in securities with significant economic risk or exposure to Russia.

74 Western Asset Short-Term Bond Fund 2022 Annual Report

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Report of independent registered public accounting firm

**To the Board of Trustees of Legg Mason Partners Income Trust and Shareholders of Western Asset Short-Term Bond Fund** 

**Opinion on the Financial Statements** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Western Asset Short-Term Bond Fund (one of the funds constituting Legg Mason Partners Income Trust, referred to hereafter as the "Fund") as of December 31, 2022, the related statement of operations for the year ended December 31, 2022, the statement of changes in net assets for each of the two years in the period ended December 31, 2022, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2022 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2022 and the financial highlights for each of the five years in the period ended December 31, 2022 in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022 by correspondence with the custodian, agent banks and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/PricewaterhouseCoopers LLP

Baltimore, Maryland

February 16, 2023

We have served as the auditor of one or more investment companies in the Franklin Templeton Group of Funds since 1948.

Western Asset Short-Term Bond Fund 2022 Annual Report 75

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Additional information (unaudited)

**Information about Trustees and Officers** 

The business and affairs of Western Asset Short-Term Bond Fund (the "Fund") are conducted by management under the supervision and subject to the direction of its Board of Trustees. The business address of each Trustee is c/o Jane Trust, Franklin Templeton, 100 International Drive, 11th Floor, Baltimore, Maryland 21202.

Information pertaining to the Trustees and officers of the Fund is set forth below. The Statement of Additional Information includes additional information about Trustees and is available, without charge, upon request by calling the Fund at 877-6LM-FUND/656-3863.

---

| | |
|:---|:---|
| **Independent Trustees<sup>†</sup>** | **Independent Trustees<sup>†</sup>** |
| **Robert Abeles, Jr.** |  |
| Year of birth | 1945 |
| Position(s) with Fund | Trustee |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 2013 |
| Principal occupation(s) during the past five years | Senior Vice President Emeritus (since 2016) and formerly, Senior Vice President, Finance and Chief Financial Officer (2009 to 2016) at University of Southern California; Board Member of Excellent Education Development (since 2012); and formerly Board Member of Great Public Schools Now (2018 to 2022) |
| Number of funds in fund complex overseen by Trustee<sup>3</sup> | 51 |
| Other Trusteeships held by Trustee during the past five years |  |
| **Jane F. Dasher** | **Jane F. Dasher** |
| Year of birth | 1949 |
| Position(s) with Fund | Trustee |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 1999 |
| Principal occupation(s) during the past five years | Director (since 2022) and formerly Chief Financial Officer, Long Light Capital, LLC, formerly known as Korsant Partners, LLC (a family investment company) (since 1997) |
| Number of funds in fund complex overseen by Trustee<sup>3</sup> | 51 |
| Other Trusteeships held by Trustee during the past five years | Director, Visual Kinematics, Inc. (2018 to 2022) |
| **Anita L. DeFrantz** | **Anita L. DeFrantz** |
| Year of birth | 1952 |
| Position(s) with Fund | Trustee |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 1998 |
| Principal occupation(s) during the past five years | President of Tubman Truth Corp. (since 2015); President Emeritus (since 2015) and formerly, President (1987 to 2015) and Director (1990 to 2015) of LA84 (formerly Amateur Athletic Foundation of Los Angeles); Member (since 1986), Member of the Executive Board (since 2013) and Vice President (since 2017) of the International Olympic Committee |
| Number of funds in fund complex overseen by Trustee<sup>3</sup> | 51 |
| Other Trusteeships held by Trustee during the past five years |  |

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| | |
|:---|:---|
| **Independent Trustees<sup>†</sup> (cont'd)** | **Independent Trustees<sup>†</sup> (cont'd)** |
| **Susan B. Kerley** | **Susan B. Kerley** |
| Year of birth | 1951 |
| Position(s) with Fund | Trustee |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 1992 |
| Principal occupation(s) during the past five years | Investment Consulting Partner, Strategic Management Advisors, LLC (investment consulting) (since 1990) |
| Number of funds in fund complex overseen by Trustee<sup>3</sup> | 51 |
| Other Trusteeships held by Trustee during the past five years | Director and Trustee (since 1990) and Chairman (since 2017 and 2005 to 2012) of various series of MainStay Family of Funds (66 funds); formerly, Investment Company Institute (ICI) Board of Governors (2006 to 2014); ICI Executive Committee (2011 to 2014); and Chairman of the Independent Directors Council (2012 to 2014) |
| **Michael Larson** | **Michael Larson** |
| Year of birth | 1959 |
| Position(s) with Fund | Trustee |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 2004 |
| Principal occupation(s) during the past five years | Chief Investment Officer for William H. Gates III (since 1994)<sup>4</sup> |
| Number of funds in fund complex overseen by Trustee<sup>3</sup> | 51 |
| Other Trusteeships held by Trustee during the past five years | Republic Services, Inc. (since 2009); Fomento Economico Mexicano, SAB (since 2011); Ecolab Inc. (since 2012); and formerly, AutoNation, Inc. (2010 to 2018) |
| **Avedick B. Poladian** | **Avedick B. Poladian** |
| Year of birth | 1951 |
| Position(s) with Fund | Trustee |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 2007 |
| Principal occupation(s) during the past five years | Director and Advisor (since 2017) and former Executive Vice President and Chief Operating Officer (2002 to 2016) of Lowe Enterprises, Inc. (privately held real estate and hospitality firm); formerly, Partner, Arthur Andersen, LLP (1974 to 2002) |
| Number of funds in fund complex overseen by Trustee<sup>3</sup> | 51 |
| Other Trusteeships held by Trustee during the past five years | Occidental Petroleum Corporation (since 2008); California Resources Corporation (2014 to 2021); and Public Storage (since 2010) |

---

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Additional information (unaudited) (cont'd)

**Information about Trustees and Officers** 

---

| | |
|:---|:---|
| **Independent Trustees<sup>†</sup> (cont'd)** | **Independent Trustees<sup>†</sup> (cont'd)** |
| **William E.B. Siart** | **William E.B. Siart** |
| Year of birth | 1946 |
| Position(s) with Fund | Trustee and Chairman of the Board |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 1997 (Chairman of the Board since 2020) |
| Principal occupation(s) during the past five years | Chairman of Excellent Education Development (since 2000); formerly, Chairman of Great Public Schools Now (2015 to 2020); Trustee of The Getty Trust (since 2005 to 2017); Chairman of Walt Disney Concert Hall, Inc. (1998 to 2006) |
| Number of funds in fund complex overseen by Trustee<sup>3</sup> | 51 |
| Other Trusteeships held by Trustee during the past five years | Trustee, University of Southern California (since 1994); and formerly, Member of Board of United States Golf Association, Executive Committee Member (2017 to 2021) |
| **Jaynie Miller Studenmund** | **Jaynie Miller Studenmund** |
| Year of birth | 1954 |
| Position(s) with Fund | Trustee |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 2004 |
| Principal occupation(s) during the past five years | Corporate Board Member and Advisor (since 2004); formerly, Chief Operating Officer of Overture Services, Inc. (publicly traded internet company that created search engine marketing) (2001 to 2004); President and Chief Operating Officer, PayMyBills (internet innovator in bill presentment/payment space) (1999 to 2001); Executive vice president for consumer and business banking for three national financial institutions (1984 to 1997) |
| Number of funds in fund complex overseen by Trustee<sup>3</sup> | 51 |
| Other Trusteeships held by Trustee during the past five years | Director of Pacific Premier Bancorp Inc. and Pacific Premier Bank (since 2019); Director of EXL (operations management and analytics company) (since 2018); Director of CoreLogic, Inc. (information, analytics and business services company) (2012 to 2021); formerly, Director of Pinnacle Entertainment, Inc. (gaming and hospitality company) (2012 to 2018); and Director of LifeLock, Inc. (identity theft protection company) (2015 to 2017) |
| **Peter J. Taylor** | **Peter J. Taylor** |
| Year of birth | 1958 |
| Position(s) with Fund | Trustee |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 2019 |
| Principal occupation(s) during the past five years | Retired; formerly, President, ECMC Foundation (nonprofit organization) (2014 to 2023); and Executive Vice President and Chief Financial Officer for University of California system (2009 to 2014) |
| Number of funds in fund complex overseen by Trustee<sup>3</sup> | 51 |
| Other Trusteeships held by Trustee during the past five years | Director of 23andMe, Inc. (genetics and health care services company) (since 2021); Director of Pacific Mutual Holding Company<sup>5</sup> (since 2016); Member of the Board of Trustees of California State University system (2015 to 2022); Ralph M. Parson Foundation (since 2015); Kaiser Family Foundation (2012 to 2022); and Edison International (since 2011) |

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| | |
|:---|:---|
| **Interested Trustee** | **Interested Trustee** |
| **Ronald L. Olson<sup>6</sup>** | **Ronald L. Olson<sup>6</sup>** |
| Year of birth | 1941 |
| Position(s) with Fund | Trustee |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 2005 |
| Principal occupation(s) during the past five years | Partner of Munger, Tolles & Olson LLP (law partnership) (since 1968) |
| Number of funds in fund complex overseen by Trustee<sup>3</sup> | 51 |
| Other Trusteeships held by Trustee during the past five years | Director of Berkshire Hathaway, Inc. (since 1997); and Director of Provivi, Inc. (since 2017) |
| **Interested Trustee and Officer** | **Interested Trustee and Officer** |
| **Jane Trust, CFA<sup>7</sup>** | **Jane Trust, CFA<sup>7</sup>** |
| Year of birth | 1962 |
| Position(s) with Fund | Trustee, President and Chief Executive Officer |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 2015 |
| Principal occupation(s) during the past five years | Senior Vice President, Fund Board Management, Franklin Templeton (since 2020); Officer and/or Trustee/Director of 127 funds associated with LMPFA or its affiliates (since 2015); President and Chief Executive Officer of LMPFA (since 2015); formerly, Senior Managing Director (2018 to 2020) and Managing Director (2016 to 2018) of Legg Mason & Co., LLC ("Legg Mason & Co."); Senior Vice President of LMPFA (2015) |
| Number of funds in fund complex overseen by Trustee<sup>3</sup> | 127 |
| Other Trusteeships held by Trustee during the past five years |  |
| **Additional Officers** | **Additional Officers** |
| **Ted P. Becker**<br> Franklin Templeton<br>280 Park Avenue, 8th Floor, New York, NY 10017 | **Ted P. Becker**<br> Franklin Templeton<br>280 Park Avenue, 8th Floor, New York, NY 10017 |
| Year of birth | 1951 |
| Position(s) with Fund | Chief Compliance Officer |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 2007 |
| Principal occupation(s) during the past five years | Vice President, Global Compliance of Franklin Templeton (since 2020); Chief Compliance Officer of LMPFA (since 2006); Chief Compliance Officer of certain funds associated with Legg Mason & Co. or its affiliates (since 2006); formerly, Director of Global Compliance at Legg Mason, Inc. (2006 to 2020); Managing Director of Compliance of Legg Mason & Co. (2005 to 2020) |

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Additional information (unaudited) (cont'd)

**Information about Trustees and Officers** 

---

| | |
|:---|:---|
| **Additional Officers (cont'd)** | **Additional Officers (cont'd)** |
| **Susan Kerr**<br> Franklin Templeton****<br> 280 Park Avenue, 8th Floor, New York, NY 10017  | **Susan Kerr**<br> Franklin Templeton****<br> 280 Park Avenue, 8th Floor, New York, NY 10017  |
| Year of birth | 1949 |
| Position(s) with Fund | Chief Anti-Money Laundering Compliance Officer |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 2013 |
| Principal occupation(s) during the past five years | Senior Compliance Analyst, Franklin Templeton (since 2020); Chief Anti-Money Laundering Compliance Officer of certain funds associated with Legg Mason & Co. or its affiliates (since 2013) and Anti-Money Laundering Compliance Officer (since 2012), Senior Compliance Officer (since 2011) and Assistant Vice President (since 2010) of Franklin Distributors, LLC; formerly, Assistant Vice President of Legg Mason & Co. (2010 to 2020) |
| **Marc A. De Oliveira**<br> Franklin Templeton<br> 100 First Stamford Place, 6th Floor, Stamford, CT 06902 | **Marc A. De Oliveira**<br> Franklin Templeton<br> 100 First Stamford Place, 6th Floor, Stamford, CT 06902 |
| Year of birth | 1971 |
| Position(s) with Fund | Secretary and Chief Legal Officer |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 2020 |
| Principal occupation(s) during the past five years | Associate General Counsel of Franklin Templeton (since 2020); Assistant Secretary of certain funds associated with Legg Mason & Co. or its affiliates (since 2006); formerly, Managing Director (2016 to 2020) and Associate General Counsel of Legg Mason & Co. (2005 to 2020) |
| **Thomas C. Mandia**<br> Franklin Templeton<br> 100 First Stamford Place, 6th Floor, Stamford, CT 06902 | **Thomas C. Mandia**<br> Franklin Templeton<br> 100 First Stamford Place, 6th Floor, Stamford, CT 06902 |
| Year of birth | 1962 |
| Position(s) with Fund | Senior Vice President |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 2020 |
| Principal occupation(s) during the past five years | Senior Associate General Counsel of Franklin Templeton (since 2020); Secretary of LMPFA (since 2006); Assistant Secretary of certain funds associated with Legg Mason & Co. or its affiliates (since 2006); Secretary of LM Asset Services, LLC ("LMAS") (since 2002) and Legg Mason Fund Asset Management, Inc. ("LMFAM") (since 2013) (formerly registered investment advisers); formerly, Managing Director and Deputy General Counsel of Legg Mason & Co. (2005 to 2020) |

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| | |
|:---|:---|
| **Additional Officers (cont'd)** | **Additional Officers (cont'd)** |
| **Christopher Berarducci**<br> Franklin Templeton<br>280 Park Avenue, 8th Floor, New York, NY 10017 | **Christopher Berarducci**<br> Franklin Templeton<br>280 Park Avenue, 8th Floor, New York, NY 10017 |
| Year of birth | 1974 |
| Position(s) with Fund | Treasurer and Principal Financial Officer |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 2019 |
| Principal occupation(s) during the past five years | Vice President, Fund Administration and Reporting, Franklin Templeton (since 2020); Treasurer (since 2010) and Principal Financial Officer (since 2019) of certain funds associated with Legg Mason & Co. or its affiliates; formerly, Managing Director (2020), Director (2015 to 2020), and Vice President (2011 to 2015) of Legg Mason & Co. |
| **Jeanne M. Kelly**<br> Franklin Templeton<br> 280 Park Avenue, 8th Floor, New York, NY 10017 | **Jeanne M. Kelly**<br> Franklin Templeton<br> 280 Park Avenue, 8th Floor, New York, NY 10017 |
| Year of birth | 1951 |
| Position(s) with Fund | Senior Vice President |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 2007 |
| Principal occupation(s) during the past five years | U.S. Fund Board Team Manager, Franklin Templeton (since 2020); Senior Vice President of certain funds associated with Legg Mason & Co. or its affiliates (since 2007); Senior Vice President of LMPFA (since 2006); President and Chief Executive Officer of LMAS and LMFAM (since 2015); formerly, Managing Director of Legg Mason & Co. (2005 to 2020); Senior Vice President of LMFAM (2013 to 2015) |

---

† Trustees who are not "interested persons" of the Fund within the meaning of Section 2(a)(19) of the
Investment Company Act of 1940, as amended (the "1940 Act").

<sup>1</sup> Each Trustee and officer serves until his or her respective successor has been duly elected and qualified or until his or her earlier death, resignation, retirement or removal.

<sup>2</sup> Indicates the earliest year in which the Trustee became a board member for a fund in the Legg Mason fund complex or the officer took such office.

<sup>3</sup> Each board member also serves as a Director of Western Asset Investment Grade Income Fund Inc. and a Trustee of Western Asset Premier Bond Fund (closed-end investment companies), which are considered part of the same fund complex. Additionally, each board member serves as a Trustee of Western Asset Inflation-Linked Income Fund and Western Asset Inflation-Linked Opportunities & Income Fund, closed-end investment companies that are part of the same fund complex. 

<sup>4</sup> Mr. Larson is the chief investment officer for William H. Gates III and in that capacity oversees the investments of Mr. Gates and the investments of the Bill and Melinda Gates Foundation Trust (such combined investments are referred to as the "Accounts"). Since 1997, Western Asset has provided discretionary investment advice with respect to one or more Accounts. 

<sup>5</sup> Western Asset and its affiliates provide investment advisory services with respect to registered investment companies sponsored by an affiliate of Pacific Mutual Holding Company ("Pacific Holdings"). Affiliates of Pacific Holdings receive compensation from LMPFA or its affiliates for shareholder or distribution services provided with respect to registered investment companies for which Western Asset or its affiliates serve as investment adviser. 

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Additional information (unaudited) (cont'd)

**Information about Trustees and Officers** 

<sup>6</sup> Mr. Olson is an "interested person" of the Fund, as defined in the 1940 Act, because his law firm has provided legal services to Western Asset.

<sup>7</sup> Ms. Trust is an "interested person" of the Fund, as defined in the 1940 Act, because of her position with LMPFA and/or certain of its affiliates.

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Important tax information (unaudited)

By mid-February, tax information related to a shareholder's proportionate share of distributions paid during the preceding calendar year will be received, if applicable. Please also refer to www.franklintempleton.com for per share tax information related to any distributions paid during the preceding calendar year. Shareholders are advised to consult with their tax advisors for further information on the treatment of these amounts on their tax returns.

The following tax information for the Fund is required to be furnished to shareholders with respect to income earned and distributions paid during its fiscal year.

The Fund hereby reports the following amounts, or if subsequently determined to be different, the maximum allowable amounts, for the fiscal year ended December 31, 2022:

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| | | |
|:---|:---|:---|
| | **Pursuant to:** | **Amount Reported** |
| Qualified Net Interest Income (QII) | §871(k)(1)(C) | $9675278 |
| Section 163(j) Interest Earned | §163(j) | $15840186 |
| Interest Earned from Federal Obligations | Note (1) | $31473 |

---

Note (1) - The law varies in each state as to whether and what percentage of dividend income attributable to Federal obligations is exempt from state income tax. Shareholders are advised to consult with their tax advisors to determine if any portion of the dividends received is exempt from state income taxes.

Western Asset Short-Term Bond Fund 83

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##### [**Table of Contents**](#toc)
Western Asset

Short-Term Bond Fund

**Trustees** 

Robert Abeles, Jr.

Jane F. Dasher

Anita L. DeFrantz

Susan B. Kerley

Michael Larson

Ronald L. Olson

Avedick B. Poladian

William E.B. Siart

*Chairman* 

Jaynie M. Studenmund

Peter J. Taylor

Jane Trust

**Investment manager** 

Legg Mason Partners Fund Advisor, LLC

**Subadvisers** 

Western Asset Management Company, LLC

Western Asset Management Company Limited

**Distributor** 

Franklin Distributors, LLC

**Custodian** 

The Bank of New York Mellon

**Transfer agent** 

Franklin Templeton Investor Services, LLC

3344 Quality Drive

Rancho Cordova, CA 95670-7313

**Independent registered public accounting firm** 

PricewaterhouseCoopers LLP

Baltimore, MD

**Western Asset Short-Term Bond Fund** 

The Fund is a separate investment series of Legg Mason Partners Income Trust, a Maryland statutory trust.

Western Asset Short-Term Bond Fund

Legg Mason Funds

620 Eighth Avenue, 47th Floor

New York, NY 10018

The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund's Forms N-PORT are available on the SEC's website at www.sec.gov. To obtain information on Form N-PORT, shareholders can call the Fund at 877-6LM-FUND/656-3863.

Information on how the Fund voted proxies relating to portfolio securities during the prior 12-month period ended June 30th of each year and a description of the policies and procedures that the Fund uses to determine how to vote proxies related to portfolio transactions are available (1) without charge, upon request, by calling the Fund at 877-6LM-FUND/656-3863, (2) at www.franklintempleton.com and (3) on the SEC's website at www.sec.gov.

This report is submitted for the general information of the shareholders of Western Asset Short-Term Bond Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by a current prospectus.

**Investors should consider the Fund's investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other important information about the Fund. Please read the prospectus carefully before investing.** 

www.franklintempleton.com© 2023 Franklin Distributors, LLC, Member FINRA/SIPC. All rights reserved.

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##### [**Table of Contents**](#toc)
Legg Mason Funds Privacy and Security Notice

**Your Privacy Is Our Priority** 

Franklin Templeton\* is committed to safeguarding your personal information. This notice is designed to provide you with a summary of the non-public personal information Franklin Templeton may collect and maintain about current or former individual investors; our policy regarding the use of that information; and the measures we take to safeguard the information. We do not sell individual investors' non-public personal information to anyone and only share it as described in this notice.

**Information We Collect** 

When you invest with us, you provide us with your non-public personal information. We collect and use this information to service your accounts and respond to your requests. The non-public personal information we may collect falls into the following categories:

• Information we receive from you or your financial intermediary on applications or other forms, whether we receive the form
in writing or electronically. For example, this information may include your name, address, tax identification number, birth date, investment selection, beneficiary information, and your personal bank account information and/or email address if you
have provided that information.

• Information about your transactions and account history with us, or with other companies that are part of Franklin
Templeton, including transactions you request on our website or in our app. This category also includes your communications to us concerning your investments.

• Information we receive from third parties (for example, to update your address if you move, obtain or verify your email
address or obtain additional information to verify your identity).

• Information collected from you online, such as your IP address or device ID and data gathered from your browsing activity
and location. (For example, we may use cookies to collect device and browser information so our website recognizes your online preferences and device information.) Our website contains more information about cookies and similar technologies and ways
you may limit them.

• Other general information that we may obtain about you such as demographic information.

**Disclosure Policy** 

To better service your accounts and process transactions or services you requested, we may share non-public personal information with other Franklin Templeton companies. From time to time we may also send you information about products/services offered by other Franklin Templeton companies although we will not share your non-public personal information with these companies without first offering you the opportunity to prevent that sharing.

We will only share non-public personal information with outside parties in the limited circumstances permitted by law. For example, this includes situations where we need to share information with companies who work on our behalf to service or maintain your account or process transactions you requested, when the disclosure is to companies assisting us with our own marketing efforts, when the disclosure is to a party representing you, or when required by law (for example, in response to legal process). Additionally, we will ensure that any outside

&nbsp;&nbsp;&nbsp;**NOT PART OF THE ANNUAL REPORT**

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##### [**Table of Contents**](#toc)
Legg Mason Funds Privacy and Security Notice (cont'd)

companies working on our behalf, or with whom we have joint marketing agreements, are under contractual obligations to protect the confidentiality of your information, and to use it only to provide the services we asked them to perform.

**Confidentiality and Security** 

Our employees are required to follow procedures with respect to maintaining the confidentiality of our investors' non-public personal information. Additionally, we maintain physical, electronic and procedural safeguards to protect the information. This includes performing ongoing evaluations of our systems containing investor information and making changes when appropriate.

At all times, you may view our current privacy notice on our website at franklintempleton.com or contact us for a copy at (800) 632-2301.

\*For purposes of this privacy notice Franklin Templeton shall refer to the following entities:

Fiduciary Trust International of the South (FTIOS), as custodian for individual retirement plans Franklin Advisers, Inc.

Franklin Distributors, LLC, including as program manager of the Franklin Templeton 529 College Savings Plan and the NJBEST 529 College Savings Plan

Franklin Mutual Advisers, LLC

Franklin, Templeton and Mutual Series Funds

Franklin Templeton Institutional, LLC

Franklin Templeton Investments Corp., Canada

Franklin Templeton Investments Management, Limited UK

Franklin Templeton Portfolio Advisors, Inc.

Legg Mason Funds serviced by Franklin Templeton Investor Services, LLC

Templeton Asset Management, Limited

Templeton Global Advisors, Limited

Templeton Investment Counsel, LLC

If you are a customer of other Franklin Templeton affiliates and you receive notices from them, you will need to read those notices separately.

&nbsp;&nbsp;&nbsp;**NOT PART OF THE ANNUAL REPORT**

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##### [**Table of Contents**](#toc)
www.franklintempleton.com© 2023 Franklin Distributors, LLC, Member FINRA/SIPC. All rights reserved.

**FD0834 2/23 SR23-4591** 

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##### [**Table of Contents**](#toc)
ITEM 2. CODE OF ETHICS.

The registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The Board of Trustees of the registrant has determined that Robert Abeles, Jr., possess the technical attributes identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify an "audit committee financial experts," and has designated Mr. Abeles, Jr. as the Audit Committee's financial experts. Mr. Abeles, Jr. is an "independent" Trustees pursuant to paragraph (a) (2) of Item 3 to Form N-CSR.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Audit-Related Fees</u>. The aggregate fees billed in the last two fiscal years ending December 31, 2021 and December 31, 2022 (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $161,623 in December 31, 2021 and $124,686 in December 31, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Audit-Related Fees</u>. The aggregate fees billed in the Reporting Period for assurance and related services by the Auditor that are reasonably related to the performance of the Registrant's financial statements were $0 in December 31, 2021 and $0 in December 31, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Tax Fees</u>. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning ("Tax Services") were $40,000 in December 31, 2021 and $30,000 in December 31, 2022. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.

There were no fees billed for tax services by the Auditors to service affiliates during the Reporting Periods that required pre-approval by the Audit Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>All Other Fees</u>. The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) for the Item 4 for the Legg Mason Partners Income Trust, were $0 in December 31, 2021 and $0 in December 31, 2022.

All Other Fees. There were no other non-audit services rendered by the Auditor to Legg Mason Partners Fund Advisors, LLC ("LMPFA"), and any entity controlling, controlled by or under common control with LMPFA that provided ongoing services to Legg Mason Partners Income Trust requiring pre-approval by the Audit Committee in the Reporting Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Audit Committee's pre–approval policies and procedures described in paragraph (c) (7) of Rule 2-01 of Regulation S-X.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Charter for the Audit Committee (the "Committee") of the Board of each registered investment company (the "Fund") advised by LMPFA or one of their affiliates (each, an "Adviser") requires that the Committee shall approve (a) all audit and permissible non-audit services to be provided to the Fund and (b) all permissible non-audit services to be provided by the Fund's independent auditors to the Adviser and any Covered Service Providers if the engagement relates directly to the operations and financial reporting of the Fund. The

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##### [**Table of Contents**](#toc)
Committee may implement policies and procedures by which such services are approved other than by the full Committee.

The Committee shall not approve non-audit services that the Committee believes may impair the independence of the auditors. As of the date of the approval of this Audit Committee Charter, permissible non-audit services include any professional services (including tax services), that are not prohibited services as described below, provided to the Fund by the independent auditors, other than those provided to the Fund in connection with an audit or a review of the financial statements of the Fund. Permissible non-audit services may not include: (i) bookkeeping or other services related to the accounting records or financial statements of the Fund; (ii) financial information systems design and implementation; (iii) appraisal or valuation services, fairness opinions or contribution-in-kind reports; (iv) actuarial services; (v) internal audit outsourcing services; (vi) management functions or human resources; (vii) broker or dealer, investment adviser or investment banking services; (viii) legal services and expert services unrelated to the audit; and (ix) any other service the Public Company Accounting Oversight Board determines, by regulation, is impermissible.

Pre-approval by the Committee of any permissible non-audit services is not required so long as: (i) the aggregate amount of all such permissible non-audit services provided to the Fund, the Adviser and any service providers controlling, controlled by or under common control with the Adviser that provide ongoing services to the Fund ("Covered Service Providers") constitutes not more than 5% of the total amount of revenues paid to the independent auditors during the fiscal year in which the permissible non-audit services are provided to (a) the Fund, (b) the Adviser and (c) any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Fund during the fiscal year in which the services are provided that would have to be approved by the Committee; (ii) the permissible non-audit services were not recognized by the Fund at the time of the engagement to be non-audit services; and (iii) such services are promptly brought to the attention of the Committee and approved by the Committee (or its delegate(s)) prior to the completion of the audit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) None of the services described in paragraphs (b) through (d) of this Item were performed in reliance on paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Non-audit fees billed by the Auditor for services rendered to Legg Mason Partners Income Trust, LMPFA and any entity controlling, controlled by, or under common control with LMPFA that provides ongoing services to Legg Mason Partners Income Trust during the reporting period were $343,489 in December 31, 2021 and $350,359 in December 31, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Yes. Legg Mason Partners Income Trust's Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval), is compatible with maintaining the Accountant's independence. All services provided by the Auditor to the Legg Mason Partners Income Trust or to Service Affiliates, which were required to be pre-approved, were pre-approved as required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Not applicable.

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##### [**Table of Contents**](#toc)
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) *The independent board members are acting as the registrant's audit committee as specified in Section 3(a)(58)(B) of the Exchange Act*. The Audit Committee consists of the following Board members:

Robert Abeles, Jr.

Jane F. Dasher

Anita L. DeFrantz

Susan B. Kerley

Michael Larson

Avedick B. Poladian

William E.B. Siart

Jaynie M. Studenmund

Peter J. Taylor

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Not applicable

ITEM 6. SCHEDULE OF INVESTMENTS.

Included herein under Item 1.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

---

| | |
|:---|:---|
| ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.  |

---

Not applicable.

ITEM 11. CONTROLS AND PROCEDURES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 period covered by this report that have materially affected, or are likely to materially affect the registrant's internal control over financial reporting.

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##### [**Table of Contents**](#toc)
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 13. EXHIBITS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(a) (1) Code of Ethics attached hereto.](d425185dex99code.htm)

Exhibit 99.CODE ETH

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(a) (2) Certifications pursuant to section 302 of the Sarbanes-Oxley Act of 2002 attached hereto.](d425185dex99cert.htm)

Exhibit 99.CERT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto.](d425185dex99906cert.htm)

Exhibit 99.906CERT

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##### [**Table of Contents**](#toc)
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, there unto duly authorized.

**Legg Mason Partners Income Trust** 

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| | |
|:---|:---|
| By: | **/s/ Jane Trust**  |
|  | **Jane Trust** |
|  | Chief Executive Officer |

---

Date: February 22, 2023

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/ Jane Trust**  |
|  | **Jane Trust** |
|  | Chief Executive Officer |

---

Date: February 22, 2023

---

| | |
|:---|:---|
| By: | **/s/ Christopher Berarducci** |
|  | **Christopher Berarducci** |
|  | Principal Financial Officer |

---

Date: February 22, 2023

## Ex-99.Code

**Code of Conduct for Principal Executive and Financial Officers (SOX)** 

**Covered Officers and Purpose of the Code** 

The Funds' code of ethics (the "Code") for investment companies within the Legg Mason family of mutual funds (each a "Fund," and collectively, the "Funds") applies to each Fund's Principal Executive Officer, Principal Financial Officer, and Controller (the "Covered Officers") for the purpose of promoting:

• honest and ethical conduct, including ethical handling of actual or apparent conflicts of interest between
personal and professional relationships;

• full, fair, accurate, timely and understandable disclosure in reports and documents a registrant files with, or
submits to, the Securities and Exchange Commission ("SEC") and in other public communications made by the Funds;

• compliance with applicable laws and governmental rules and regulations;

• prompt internal reporting of Code violations to appropriate persons identified in the Code; and

• accountability for adherence to the Code.

Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.

**Covered Officers Should Ethically Handle Actual and Apparent Conflicts of Interest** 

A "conflict of interest" occurs when a Covered Officer's private interest interferes with the interests of, or his or her service to, a Fund. For example, a conflict of interest would arise if a Covered Officer, or a member of his or her family, receives improper personal benefits as a result of his or her position with a Fund.

Certain conflicts of interest arise out of the relationships between Covered Officers and a Fund and already are subject to conflict of interest provisions in the Investment Company Act of 1940 ("Investment Company Act") and the Investment Advisers Act of 1940 ("Investment Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with a Fund because of their status as "affiliated persons" of the Fund. The Funds' and the investment advisers' compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code.

Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between a Fund and an investment adviser of which Covered Officers are also officers or employees. As a result, this Code recognizes Covered Officers will, in the normal course of their duties (whether formally for a Fund or for the adviser, or for both), be involved in establishing policies and

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implementing decisions that will have different effects on the adviser and the Funds. The participation of Covered Officers in such activities is inherent in the contractual relationship between a Fund and an adviser and is consistent with the performance by Covered Officers of their duties as officers of the Funds. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the Funds' Boards of Directors/Trustees ("Boards") that Covered Officers may also be officers or employees of one or more other investment companies covered by this or other codes and that such service, by itself does not give rise to a conflict of interest.

Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of a Fund.

Each Covered Officer must:

• not use his or her personal influence or personal relationships improperly to influence investment decisions or
financial reporting by a Fund;

• not cause a Fund to take action, or fail to take action, for the individual personal benefit of the Covered
Officer rather than the benefit the Fund; and,

• not use material non-public knowledge of portfolio transactions made or
contemplated for the Trust to trade personally or cause others to trade personally in contemplation of the market effect of such transactions.

There are some actual or potential conflict of interest situations that, if material, should always be discussed with the Chief Compliance Officer ("CCO") or designate that has been appointed by the Board of the Funds. Examples of these include:

• service as a director on the board of any public company (other than the Funds or their investment advisers or
any affiliated person thereof);

• the receipt of any non-nominal gifts (i.e., in excess of $100);

• the receipt of any entertainment from any company with which a Fund has current or prospective business dealings
unless such entertainment is business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety;

• any ownership interest in, or any consulting or employment relationship with, any of the Funds' service
providers (other than their investment advisers, or principal underwriter, or any affiliated person thereof);

------

• a direct or indirect financial interest in commissions, transaction charges or spreads paid by a Fund for
effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer's employment, such as compensation or equity ownership.

**Disclosure and Compliance** 

Each Covered Officer should:

• familiarize him or herself with the disclosure requirements generally applicable to the Funds;

• not knowingly misrepresent, or cause others to misrepresent, facts about a Fund to others, whether within or
outside the Fund, including to the Fund's Directors/Trustees and auditors, and to governmental regulators and self-regulatory organizations; and

• to the extent appropriate within his or her area of responsibility, consult with other officers and employees of
the Funds and the advisers with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Funds file with, or submit to, the SEC and in other public communications made by the Funds.

It is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations.

**Reporting and Accountability** 

Each Covered Officer must:

• upon adoption of the Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing to
the Board that he or she has received, read, and understands the Code;

• annually thereafter affirm to the Board that he or she has complied with the requirements of the Code;

• not retaliate against any other Covered Officer or any employee of the Funds or their advisers or any affiliated
persons thereof or service providers of the Funds for reports of potential violations that are made in good faith;

• notify the CCO promptly if he or she knows of any violation of this Code, of which failure to do so is itself a
violation; and

------

• report at least annually, if necessary, any employment position, including officer or directorships, held by the
Covered Officer or any immediate family member of a Covered Officer with affiliated persons of or Service Providers to the Funds.

The CCO is responsible for applying this Code to specific situations in which questions are presented and has the authority to interpret this Code in any particular situation. However, approvals or waivers sought by a Covered Officer will be considered by the Compliance Committee or Audit Committee, (the "Committee") responsible for oversight of the Fund's code of ethics under Rule 17j-1 under the Investment Company Act. If a Covered Officer seeking an approval or waiver sits on the Committee, the Covered Person shall recuse him or herself from any such deliberations. Any approval or waiver granted by the Committee will be reported promptly to the Chair of the Audit Committees of the Funds.

The Funds will follow these procedures in investigating and enforcing this Code:

• the CCO will take all appropriate action to investigate any potential violations reported to him, which actions
may include the use of internal or external counsel, accountants or other personnel;

• if, after such investigation, the CCO believes that no violation has occurred, the CCO is not required to take
any further action;

• any matter that the CCO believes is a violation will be reported to the Committee;

• if the Committee concurs that a violation has occurred, it will inform the Board, which will consider appropriate
action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the investment adviser or its board; or a recommendation to dismiss the Covered Officer;

• the Committee will be responsible for granting waivers, as appropriate; and,

• any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules.

**Other Policies and Procedures** 

This Code shall be the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Funds, the Funds' advisers, principal underwriter, or other service providers govern or purport to govern the behavior or activities of Covered Officers subject to this Code, they are superseded by this Code to the extent they overlap or conflict with the provisions of this Code. The Funds' and their investment advisers' and principal underwriter's codes of

------

ethics under Rule 17j-1 under the Investment Company Act are separate requirements applying to Covered Officers and others, and are not part of this Code.

**Confidentiality** 

All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the appropriate Board and Fund counsel, and the board of Directors/Trustees and fund counsel of any other investment company for whom a Covered Officer serves in a similar capacity.

**Annual Report** 

No less than annually, the CCO shall provide the Board with a written report describing any issues having arisen since the prior year's report.

**Internal Use** 

This Code is intended solely for the internal use by the Funds and does not constitute an admission by or on behalf of any Fund, as to any fact, circumstance or legal consideration.

## Ex-99.Cert

CERTIFICATIONS PURSUANT TO SECTION 302

EX-99.CERT

**<u>CERTIFICATIONS</u>**

I, Jane Trust, certify that:

1. I have reviewed this report on Form N-CSR of **Legg Mason Partners Income Trust**;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the
periods presented in this report;

4. The registrant's other certifying officers and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is
being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this
report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that
occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officers and I have disclosed to the registrant's auditors and the
audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant role in
the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: February 22, 2023 | /s/ Jane Trust |
|  | Jane Trust |
|  | Chief Executive Officer |

---

------

**<u>CERTIFICATIONS</u>**

I, Christopher Berarducci, certify that:

1. I have reviewed this report on Form N-CSR of **Legg Mason Partners Income Trust**;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial information included in this report, and the financial statements on which
the financial information is based, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the
registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officers and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is
being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this
report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that
occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officers and I have disclosed to the registrant's auditors and the
audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant role in
the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: February 22, 2023 | /s/ Christopher Berarducci |
|  | Christopher Berarducci |
|  | Principal Financial Officer |

---

## Exhibit 99.906

CERTIFICATIONS PURSUANT TO SECTION 906

EX-99.906CERT

**CERTIFICATION** 

**Jane Trust,** Chief Executive Officer, and **Christopher Berarducci,** Principal Financial Officer of **Legg Mason Partners Income Trust** (the "Registrant"), each certify to the best of their knowledge that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Registrant's periodic report on Form N-CSR for the period ended December 31, 2022 (the "Form N-CSR") fully complies with the requirements of section 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

---

| | |
|:---|:---|
| **Chief Executive Officer** | **Principal Financial Officer** |
| Legg Mason Partners Income Trust | Legg Mason Partners Income Trust |
| /s/ Jane Trust | /s/ Christopher Berarducci |
| Jane Trust | Christopher Berarducci |
| Date: February 22, 2023 | Date: February 22, 2023 |

---

This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Form N-CSR with the Commission.