# EDGAR Filing Document

**Accession Number:** 0000874835
**File Stem:** 0001193125-23-053133
**Filing Date:** 2023-2
**Character Count:** 215933
**Document Hash:** aa3f349e960b745696b1522e14ae2c6d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-23-053133.hdr.sgml**: 20230228

**ACCESSION NUMBER**: 0001193125-23-053133

**CONFORMED SUBMISSION TYPE**: N-CSR

**PUBLIC DOCUMENT COUNT**: 10

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230228

**DATE AS OF CHANGE**: 20230228

**EFFECTIVENESS DATE**: 20230228

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** LEGG MASON PARTNERS VARIABLE INCOME TRUST
- **CENTRAL INDEX KEY:** 0000874835
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** N-CSR
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-06310
- **FILM NUMBER:** 23681427

**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 VARIABLE PORTFOLIOS II
- **DATE OF NAME CHANGE:** 20060501

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** GREENWICH STREET SERIES FUND
- **DATE OF NAME CHANGE:** 19970902

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SHEARSON SERIES FUND
- **DATE OF NAME CHANGE:** 19920929

## Series and Classes Contracts Data

### Western Asset Variable Global High Yield Bond Portfolio (Series ID: S000017004)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000047256 | Class I      | QLMYIX          |
| C000047257 | Class II     | QLMYTX          |

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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 811-06310** 

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## Legg Mason Partners Variable 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)** 

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**Marc A. De Oliveira** 

**Franklin Templeton** 

**100 First Stamford Place** 

**Stamford, CT 06902** 

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

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**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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ITEM 1. REPORT TO STOCKHOLDERS.

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

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![LOGO](g424758westassetlogo.jpg)

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

## WESTERN ASSET

## VARIABLE GLOBAL

## HIGH YIELD BOND

## PORTFOLIO

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![LOGO](g424758g57q58.jpg)

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

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---

| | |
|:---|:---|
| **What's inside** | |
| [Letter from the president](#tx424758_1) | II |
| [Portfolio overview](#tx424758_2) | 1 |
| [Portfolio at a glance](#tx424758_3) | 5 |
| [Portfolio expenses](#tx424758_4) | 6 |
| [Portfolio performance](#tx424758_5) | 8 |
| [Schedule of investments](#tx424758_6) | 10 |
| [Statement of assets and liabilities](#tx424758_7) | 26 |
| [Statement of operations](#tx424758_8) | 27 |
| [Statements of changes in net assets](#tx424758_9) | 28 |
| [Financial highlights](#tx424758_10) | 29 |
| [Notes to financial statements](#tx424758_11) | 31 |
| [Report of independent registered public accounting firm](#tx424758_12) | 46 |
| [Additional information](#tx424758_13) | 47 |
| [Important tax information](#tx424758_14) | 54 |

---

**Portfolio objective** 

The Portfolio seeks to maximize total return.

Letter from the president

![LOGO](g424758janetrust_photo.jpg)

**Dear Shareholder,** 

We are pleased to provide the annual report of Western Asset Variable Global High Yield Bond Portfolio 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 Portfolio's reporting period and to learn how those conditions have affected Portfolio 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:

• 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](g424758g12u83.jpg)

Jane Trust, CFA

President and Chief Executive Officer

January 31, 2023

II Western Asset Variable Global High Yield Bond Portfolio

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Portfolio overview

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

**A.** The Portfolio seeks to maximize total return. The Portfolio invests primarily in high yield fixed income securities issued by U.S. and foreign companies and foreign governments and their agencies and instrumentalities. Under normal market conditions, the Portfolio invests at least 80% of its assets in high yield bonds. High yield bonds are rated below investment grade (that is, securities rated below the Baa/BBB categories), or, if unrated, securities we determined to be of comparable credit quality and are commonly referred to as "high yield" or "junk bonds". Under normal circumstances, the Portfolio will be invested in at least three countries (one of which may be the United States). The Portfolio may invest without limit in foreign securities denominated either in U.S. dollars or foreign currencies and may invest up to 35% of its assets in sovereign debt issued by emerging market governmental issuers. The Portfolio's investments may be of any maturity or duration.

Instead of, and/or in addition to, investing directly in particular securities, the Portfolio may use instruments such as derivatives, including options, swaps, interest rate swaps (including buying and selling credit default swaps and options on credit default swaps), foreign currency futures, forwards and options, 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 Portfolio may use one or more types of these instruments without limit. These instruments are taken into account when determining compliance with the Portfolio's 80% policy. The Portfolio 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 Portfolio'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 Portfolio's reporting period?** 

**A.** Similar to the overall bond market, global high yield bonds posted weak results during 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.

All told, the Bloomberg Global High Yield Index (Hedged) (USD)<sup>i</sup> returned -11.05% during the twelve-month reporting period ended December 31, 2022. For comparison purposes, the overall taxable bond market, as measured by the Bloomberg U.S. Universal Index<sup>ii</sup>, returned -12.99% in 2022.

Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report 1

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Portfolio overview (cont'd)

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

**A.** A number of adjustments were made to the Portfolio during the reporting period. We reduced the Portfolio's duration overweight and ended the period with 0.05 years of duration overweight. We pared the Portfolio's allocations to emerging markets and bank loans. From a sector or industry perspective, we increased the Portfolio's exposure to financials, largely insurance and real estate investment trusts, as well as communication services. In contrast, we reduced the Portfolio's allocation to the energy sector.

During the reporting period, currency forwards and futures on foreign currencies, which were used to manage the Portfolio's currency exposure, in aggregate, contributed to performance. Interest rate futures, which were used to manage the Portfolio's duration and yield curve positioning, modestly contributed to results.

**Performance review** 

For the twelve months ended December 31, 2022, Class I shares of Western Asset Variable Global High Yield Bond Portfolio<sup>1</sup> returned -13.72%. The Portfolio's unmanaged benchmark, the Bloomberg Global High Yield Index (Hedged) (USD), returned -11.05% for the same period. The Lipper Variable High Yield Funds Category Average<sup>iii</sup> returned -9.47% over the same time frame.

---

| | | |
|:---|:---|:---|
| **Performance Snapshot as of December 31, 2022** (unaudited) | **Performance Snapshot as of December 31, 2022** (unaudited) | **Performance Snapshot as of December 31, 2022** (unaudited) |
|  | 6 months | 12 months |
| Western Asset Variable Global High Yield Bond Portfolio: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I | 4.94% | -13.72% |
| &nbsp;&nbsp;&nbsp;&nbsp; Class II | 4.69% | -13.87% |
| Bloomberg Global High Yield Index (Hedged) (USD) | 4.93% | -11.05% |
| Lipper Variable High Yield Funds Category Average | 3.27% | -9.47% |

---

**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.** 

**All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all Portfolio expenses. Performance figures for periods shorter than one year represent cumulative figures and are not annualized.** 

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

<sup>1</sup> The Portfolio is an underlying investment option of various variable annuity and variable life insurance products. The Portfolio's performance returns do not reflect the deduction of expenses imposed in connection with investing in variable annuity or variable life insurance contracts, such as administrative fees, account charges and surrender charges, which, if reflected, would reduce the performance of the Portfolio. **Past performance is no guarantee of future results.** 

2 Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report

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**The 30-Day SEC Yields for the period ended December 31, 2022 for Class I and Class II shares were 8.58% and 8.30%, respectively. The 30-Day SEC Yield, calculated pursuant to the standard SEC formula, is based on the Portfolio's investments over an annualized trailing 30-day period, and not on the distributions paid by the Portfolio, which may differ.** 

**Total Annual Operating Expenses** (unaudited)

**As of the Portfolio's current prospectus dated May 1, 2022, the gross total annual fund operating expense ratios for Class I and Class II shares were 0.82% and 1.07%, 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 Portfolio expense ratios are more likely to increase when markets are volatile.** 

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

**A.** The largest contributor to the Portfolio's relative performance during the reporting period was its underweight to securities rated CCC and below, as they lagged their higher quality counterparts. From a sector or industry allocation perspective, an underweight to consumer non-cyclicals1 and an overweight to industrials added the most value. In terms of issue selection, holdings within energy were beneficial, led by an overweight to Transportadora de Gas del Sur. In industrials, an overweight to American Airlines added the most value.

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

**A.** From a regional allocation perspective, the Portfolio's underweight in emerging markets towards the end of the year was a detractor from relative performance. From a sector or industry allocation perspective, overweights to communication services and consumer cyclicals2 were headwinds for returns. Issue selection within banking detracted from performance, driven by an overweight to Credit Suisse. Within capital goods, an overweight to Ball weighed on the Portfolio's results. Finally, positioning in certain emerging market sovereigns detracted from returns, partially due to the Portfolio's overweight to Ecuador. Thank you for your investment in Western Asset Variable Global High Yield Bond Portfolio. As always, we appreciate that you have chosen us to manage your assets and we remain focused on achieving the Portfolio's investment goals.

Sincerely,

Western Asset Management Company, LLC

January 24, 2023

<sup>1</sup> Non-cyclicals consists of the following industries: consumer products, food/beverage, health care, pharmaceuticals, supermarkets and tobacco.

<sup>2</sup> Cyclicals consists of the following industries: automotive, entertainment, gaming, home construction, lodging, retailers, restaurants, textiles and other consumer services.

Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report 3

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Portfolio overview (cont'd)

*RISKS: Investments in bonds are subject to interest rate and credit risks. As interest rates rise, bond prices fall, thereby reducing the value of the Portfolio's share price. High yield bonds, commonly known as "junk" bonds, involve greater credit and liquidity risks than investment grade bonds. Investing in foreign securities is subject to certain risks not associated with domestic investing, such as currency fluctuations and social, political and economic uncertainties, which could increase volatility. These risks are magnified in emerging or developing markets. Emerging market countries tend to have economic, political, and legal systems that are less developed and are less stable than those of more developed countries. The Portfolio may use derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses, and have a potentially large impact on Portfolio performance. The use of leverage may increase volatility and possibility of loss. Please see the Portfolio's prospectus for a more complete discussion of these and other risks and the Portfolio'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 10 through 25 for a list and percentage breakdown of the Portfolio'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 Portfolio's top five sector holdings (as a percentage of net assets) as of December 31, 2022 were: consumer discretionary (24.7%), communication services (18.0%), sovereign bonds (11.7%), industrials (8.3%) and financials (8.1%). The Portfolio's 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. Forecasts and predictions are inherently limited and should not be relied upon as an indication of actual or future performance.

<sup>i</sup> The Bloomberg Global High Yield Index (Hedged) (USD) provides a broad-based measure of the global high yield fixed income markets, representing the union of the U.S. High-Yield, Pan-European High-Yield, and Emerging Markets Hard Currency High Yield Indices.

<sup>ii</sup> The Bloomberg U.S. Universal Index represents the union of the Bloomberg U.S. Aggregate Index, the Bloomberg U.S. Corporate High Yield Index, the Eurodollar Index, the Emerging Markets Index, and the non-ERISA portion of the CMBS Index. Municipal debt, private placements, and non-dollar-denominated issues are excluded from the Universal Index. The only constituent of the index that includes floating-rate debt is the Emerging Markets Index. 

<sup>iii</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 103 funds for the six-month period and among the 102 funds for the twelve-month period in the Portfolio's Lipper category. 

4 Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report

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Portfolio at a glance<sup>†</sup> (unaudited)

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

![LOGO](g424758dsp008.jpg)

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

Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report 5

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Portfolio expenses (unaudited)

**Example** 

As a shareholder of the Portfolio, you may incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees; service and/or distribution (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other 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 Portfolio'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 Portfolio and other funds. To do so, compare the 5.00% hypothetical example relating to the Portfolio 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. 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.

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **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<br>Return<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 I | 4.94% | $1000.00 | $1049.40 | 0.77% | $3.98 | Class I | 5.00% | $1000.00 | $1021.32 | 0.77% | $3.92 |
| &nbsp;&nbsp;&nbsp;Class II | 4.69 | 1000.00 | 1046.90 | 0.99 | 5.11 | Class II | 5.00 | 1000.00 | 1020.21 | 0.99 | 5.04 |

---

6 Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report

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<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. Total return is not annualized, as it may not be representative of the total return for the year. Total returns do not reflect expenses associated with separate accounts such as administrative fees, account charges and surrender charges, which, if reflected, would reduce the total returns. 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. 

Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report 7

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Portfolio performance (unaudited)

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| | | |
|:---|:---|:---|
| **Average annual total returns<sup>1</sup>** | | |
|  | Class I | Class II |
| Twelve Months Ended 12/31/22 | -13.72% | -13.87% |
| Five Years Ended 12/31/22 | 0.61 | 0.37 |
| Ten Years Ended 12/31/22 | 2.51 | 2.26 |

---

---

| | |
|:---|:---|
| **Cumulative total returns<sup>1</sup>** | |
| Class I (12/31/12 through 12/31/22) | 28.10% |
| Class II (12/31/12 through 12/31/22) | 25.00 |

---

**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 expenses associated with separate accounts such as administrative fees, account charges and surrender charges, which, if reflected, would reduce the total returns. 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.

8 Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report

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**Historical performance** 

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

Class I Shares of Western Asset Variable Global High Yield Bond Portfolio vs. Bloomberg Global High Yield Index (Hedged) (USD)† — December 2012 - December 2022

![LOGO](g424758dsp0011.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 expenses associated with separate accounts such as administrative fees, account charges and surrender charges, which, if reflected, would reduce the total returns. 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 I shares of Western Asset Variable Global High Yield Bond Portfolio
on December 31, 2012, assuming 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 Bloomberg
Global High Yield Index (Hedged) (USD). The Bloomberg Global High Yield Index (Hedged) (USD) (the "Index") provides a broad-based measure of the global high-yield fixed income markets, representing the union of the U.S. High-Yield,
Pan-European High-Yield, and Emerging Markets Hard Currency High-Yield Indices. The Index is unmanaged and not subject to the same management and trading expenses as a fund. Please note that an investor cannot invest directly in an index. The
performance of the Portfolio's other class may be greater or less than the Class I shares' performance indicated on this chart, depending on whether greater or lesser fees were incurred by shareholders investing in the other class.

Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report 9

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Schedule of investments

December 31, 2022

**Western Asset Variable Global High Yield Bond Portfolio** 

(Percentages shown based on Portfolio net assets)

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date |  | Face<br>Amount† |  | Value |  |
| **Corporate Bonds & Notes — 77.3%** |  |  |  |  |  |  |  |
| **Communication Services — 16.3%** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Diversified Telecommunication Services — 5.2%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Altice Financing SA, Senior Secured Notes | 5.000% | 1/15/28 |  | 500000 |  | $403575 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Altice Financing SA, Senior Secured Notes | 5.750% | 8/15/29 |  | 1600000 |  | 1261501 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Altice France Holding SA, Senior Notes | 6.000% | 2/15/28 |  | 690000 |  | 408785 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Altice France Holding SA, Senior Secured Notes | 10.500% | 5/15/27 |  | 810000 |  | 619366 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Altice France SA, Senior Secured Notes | 5.125% | 7/15/29 |  | 250000 |  | 187882 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Altice France SA, Senior Secured Notes | 5.500% | 10/15/29 |  | 1580000 |  | 1207618 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Level 3 Financing Inc., Senior Notes | 3.625% | 1/15/29 |  | 1160000 |  | 851325 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Telecom Italia Capital SA, Senior Notes | 7.200% | 7/18/36 |  | 150000 |  | 122034 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Telecom Italia SpA, Senior Notes | 5.303% | 5/30/24 |  | 1180000 |  | 1120410 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Turk Telekomunikasyon AS, Senior Notes | 6.875% | 2/28/25 |  | 850000 |  | 804176 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Diversified Telecommunication Services* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Diversified Telecommunication Services* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Diversified Telecommunication Services* |  |  |  | *6986672* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Interactive Media & Services — 1.2%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Match Group Holdings II LLC, Senior Notes | 3.625% | 10/1/31 |  | 1690000 |  | 1298197 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Rackspace Technology Global Inc., Senior |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Secured Notes | 3.500% | 2/15/28 |  | 500000 |  | 291185 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Interactive Media & Services* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Interactive Media & Services* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Interactive Media & Services* |  |  |  | *1589382* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Media — 7.2%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes | 4.500% | 8/15/30 |  | 400000 |  | 331364 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes | 4.250% | 1/15/34 |  | 3920000 |  | 2900800 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; DirecTV Financing LLC/DirecTV Financing Co-Obligor Inc., Senior Secured Notes | 5.875% | 8/15/27 |  | 1010000 |  | 905526 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; DISH DBS Corp., Senior Notes | 5.875% | 11/15/24 |  | 280000 |  | 260762 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; DISH DBS Corp., Senior Notes | 7.750% | 7/1/26 |  | 440000 |  | 355718 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; DISH DBS Corp., Senior Notes | 5.125% | 6/1/29 |  | 530000 |  | 342902 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; DISH DBS Corp., Senior Secured Notes | 5.750% | 12/1/28 |  | 1040000 |  | 832000 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Sirius XM Radio Inc., Senior Notes | 4.125% | 7/1/30 |  | 700000 |  | 579226 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; United Group BV, Senior Secured Notes | 5.250% | 2/1/30 |  | 150000 | <sup>EUR</sup> | 116290 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Virgin Media Finance PLC, Senior Notes | 5.000% | 7/15/30 |  | 700000 |  | 562587 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Virgin Media Secured Finance PLC, Senior Secured Notes | 5.500% | 5/15/29 |  | 900000 |  | 808258 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; VZ Secured Financing BV, Senior Secured Notes | 5.000% | 1/15/32 |  | 1920000 |  | 1563708 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Media* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Media* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Media* |  |  |  | *9559141* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Wireless Telecommunication Services — 2.7%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; CSC Holdings LLC, Senior Notes | 6.500% | 2/1/29 |  | 570000 |  | 467181 | <sup>(a)</sup> |

---

See Notes to Financial Statements.

10 Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report

------

**Western Asset Variable Global High Yield Bond Portfolio** 

(Percentages shown based on Portfolio net assets)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date |  | Face<br>Amount† |  | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Wireless Telecommunication Services — continued* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; CSC Holdings LLC, Senior Notes | 5.750% | 1/15/30 |  | 1760000 |  | $996503 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CSC Holdings LLC, Senior Notes | 5.000% | 11/15/31 |  | 630000 |  | 352800 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Millicom International Cellular SA, Senior Notes | 4.500% | 4/27/31 |  | 750000 |  | 631010 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; T-Mobile USA Inc., Senior Notes | 2.625% | 2/15/29 |  | 500000 |  | 423941 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Vmed O2 UK Financing I PLC, Senior Secured Notes | 4.750% | 7/15/31 |  | 810000 |  | 659587 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Wireless Telecommunication Services* |  |  |  |  |  | *3531022* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Communication Services** |  |  |  |  |  | **21666217** |  |
| **Consumer Discretionary — 24.5%** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Auto Components — 2.3%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; American Axle & Manufacturing Inc., Senior Notes | 6.500% | 4/1/27 |  | 600000 |  | 542138 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; American Axle & Manufacturing Inc., Senior Notes | 5.000% | 10/1/29 |  | 1110000 |  | 896405 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; JB Poindexter & Co. Inc., Senior Notes | 7.125% | 4/15/26 |  | 1690000 |  | 1633520 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Auto Components* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Auto Components* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Auto Components* |  |  |  | *3072063* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Automobiles — 3.8%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ford Motor Co., Senior Notes | 3.250% | 2/12/32 |  | 3610000 |  | 2713715 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ford Motor Credit Co. LLC, Senior Notes | 4.125% | 8/17/27 |  | 500000 |  | 448648 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ford Motor Credit Co. LLC, Senior Notes | 3.815% | 11/2/27 |  | 400000 |  | 352208 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ford Motor Credit Co. LLC, Senior Notes | 2.900% | 2/16/28 |  | 1800000 |  | 1488859 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Automobiles* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Automobiles* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Automobiles* |  |  |  | *5003430* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Diversified Consumer Services — 2.6%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; APCOA Parking Holdings GmbH, Senior |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Secured Notes | 4.625% | 1/15/27 |  | 1390000 | <sup>EUR</sup> | 1284791 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Carriage Services Inc., Senior Notes | 4.250% | 5/15/29 |  | 1240000 |  | 986294 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; StoneMor Inc., Senior Secured Notes | 8.500% | 5/15/29 |  | 960000 |  | 769248 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; WW International Inc., Senior Secured Notes | 4.500% | 4/15/29 |  | 890000 |  | 445792 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Diversified Consumer Services* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Diversified Consumer Services* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Diversified Consumer Services* |  |  |  | *3486125* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Hotels, Restaurants & Leisure — 13.6%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 1011778 BC ULC/New Red Finance Inc., Senior Secured Notes | 3.500% | 2/15/29 |  | 460000 |  | 395169 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; 888 Acquisitions Ltd., Senior Secured Notes | 7.558% | 7/15/27 |  | 1050000 | <sup>EUR</sup> | 969431 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Carnival Corp., Senior Notes | 5.750% | 3/1/27 |  | 500000 |  | 357885 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Carnival Corp., Senior Notes | 6.000% | 5/1/29 |  | 1100000 |  | 735083 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Carnival Corp., Senior Notes | 10.500% | 6/1/30 |  | 560000 |  | 456260 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Carnival Holdings Bermuda Ltd., Senior Notes | 10.375% | 5/1/28 |  | 530000 |  | 545044 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Carnival PLC, Senior Notes | 1.000% | 10/28/29 |  | 1000000 | <sup>EUR</sup> | 446988 |  |

---

See Notes to Financial Statements.

Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report 11

------

Schedule of investments (cont'd)

December 31, 2022

**Western Asset Variable Global High Yield Bond Portfolio** 

(Percentages shown based on Portfolio net assets)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date |  | Face<br>Amount† |  | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Hotels, Restaurants & Leisure — continued* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Carrols Restaurant Group Inc., Senior Notes | 5.875% | 7/1/29 |  | 640000 |  | $449384 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Las Vegas Sands Corp., Senior Notes | 3.200% | 8/8/24 |  | 300000 |  | 283737 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Marston's Issuer PLC, Secured Notes (3 mo. GBP LIBOR + 2.669%) | 5.549% | 7/16/35 |  | 853000 | <sup>GBP</sup> | 768633 | <sup>(b)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Melco Resorts Finance Ltd., Senior Notes | 5.375% | 12/4/29 |  | 980000 |  | 788008 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; MGM China Holdings Ltd., Senior Notes | 4.750% | 2/1/27 |  | 870000 |  | 770770 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; NCL Corp. Ltd., Senior Notes | 3.625% | 12/15/24 |  | 1350000 |  | 1155516 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; NCL Corp. Ltd., Senior Notes | 5.875% | 3/15/26 |  | 1340000 |  | 1054848 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; NCL Finance Ltd., Senior Notes | 6.125% | 3/15/28 |  | 1030000 |  | 761655 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Royal Caribbean Cruises Ltd., Senior Notes | 4.250% | 7/1/26 |  | 920000 |  | 744830 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Royal Caribbean Cruises Ltd., Senior Notes | 5.500% | 8/31/26 |  | 500000 |  | 421250 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Saga PLC, Senior Notes | 3.375% | 5/12/24 |  | 2020000 | <sup>GBP</sup> | 2203671 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Sands China Ltd., Senior Notes | 5.900% | 8/8/28 |  | 500000 |  | 468832 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sands China Ltd., Senior Notes | 3.350% | 3/8/29 |  | 200000 |  | 163662 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sands China Ltd., Senior Notes | 3.750% | 8/8/31 |  | 730000 |  | 575427 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; TUI Cruises GmbH, Senior Notes | 6.500% | 5/15/26 |  | 250000 | <sup>EUR</sup> | 224460 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Viking Cruises Ltd., Senior Secured Notes | 13.000% | 5/15/25 |  | 200000 |  | 211327 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Viking Ocean Cruises Ship VII Ltd., Senior Secured Notes | 5.625% | 2/15/29 |  | 665000 |  | 536189 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; VOC Escrow Ltd., Senior Secured Notes | 5.000% | 2/15/28 |  | 100000 |  | 86168 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Wheel Bidco Ltd., Senior Secured Notes | 6.750% | 7/15/26 |  | 760000 | <sup>GBP</sup> | 742530 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Wynn Macau Ltd., Senior Notes | 4.875% | 10/1/24 |  | 500000 |  | 472859 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Wynn Macau Ltd., Senior Notes | 5.625% | 8/26/28 |  | 380000 |  | 325392 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Wynn Macau Ltd., Senior Notes | 5.125% | 12/15/29 |  | 500000 |  | 405363 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., Senior Notes | 7.750% | 4/15/25 |  | 600000 |  | 597622 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Hotels, Restaurants & Leisure* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Hotels, Restaurants & Leisure* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Hotels, Restaurants & Leisure* |  |  |  | *18117993* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Household Durables — 0.1%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Victoria PLC, Senior Secured Notes | 3.625% | 8/24/26 |  | 160000 | <sup>EUR</sup> | *141122* | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Internet & Direct Marketing Retail — 1.4%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; MercadoLibre Inc., Senior Notes | 3.125% | 1/14/31 |  | 2360000 |  | *1827584* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Multiline Retail — 0.6%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Marks & Spencer PLC, Senior Notes | 3.750% | 5/19/26 |  | 800000 | <sup>GBP</sup> | *84538*7 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Specialty Retail — 0.1%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Michaels Cos. Inc., Senior Notes | 7.875% | 5/1/29 |  | 190000 |  | *127290* | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Consumer Discretionary** |  |  |  |  |  | **32620994** |  |

---

See Notes to Financial Statements.

12 Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report

------

**Western Asset Variable Global High Yield Bond Portfolio** 

(Percentages shown based on Portfolio net assets)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date |  | Face<br>Amount† |  | Value |  |
| **Consumer Staples — 1.2%** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Beverages — 0.8%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Central American Bottling Corp./CBC Bottling Holdco SL/Beliv Holdco SL, Senior Notes | 5.250% | 4/27/29 |  | 1140000 |  | $*1065028* | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Food & Staples Retailing — 0.1%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Bellis Acquisition Co. PLC, Senior Secured Notes | 4.500% | 2/16/26 |  | 170000 | <sup>GBP</sup> | *172847* | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Food Products — 0.3%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; FAGE International SA/FAGE USA Dairy Industry Inc., Senior Notes | 5.625% | 8/15/26 |  | 420000 |  | *390273* | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Consumer Staples** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Consumer Staples** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Consumer Staples** |  |  |  | **1628148** |  |
| **Energy — 7.0%** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Energy Equipment & Services — 0.4%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sunnova Energy Corp., Senior Notes | 5.875% | 9/1/26 |  | 670000 |  | *599409* | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Oil, Gas & Consumable Fuels — 6.6%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cheniere Energy Inc., Senior Notes | 4.625% | 10/15/28 |  | 220000 |  | 199274 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Energy Transfer LP, Junior Subordinated Notes (6.625% to 2/15/28 then 3 mo. USD LIBOR + 4.155%) | 6.625% | 2/15/28 |  | 130000 |  | 97012 | <sup>(c)(d)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Energy Transfer LP, Junior Subordinated Notes (6.750% to 5/15/25 then 5 year Treasury Constant Maturity Rate + 5.134%) | 6.750% | 5/15/25 |  | 1120000 |  | 973000 | <sup>(c)(d)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Energy Transfer LP, Junior Subordinated Notes (7.125% to 5/15/30 then 5 year Treasury Constant Maturity Rate + 5.306%) | 7.125% | 5/15/30 |  | 1090000 |  | 912875 | <sup>(c)(d)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; EQM Midstream Partners LP, Senior Notes | 6.500% | 7/1/27 |  | 150000 |  | 143625 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; EQM Midstream Partners LP, Senior Notes | 7.500% | 6/1/30 |  | 240000 |  | 231576 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; MEG Energy Corp., Senior Notes | 5.875% | 2/1/29 |  | 270000 |  | 254961 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Petrobras Global Finance BV, Senior Notes | 6.900% | 3/19/49 |  | 340000 |  | 305708 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Petroleos del Peru SA, Senior Notes | 4.750% | 6/19/32 |  | 1500000 |  | 1162050 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Petroleos Mexicanos, Senior Notes | 6.625% | 6/15/35 |  | 1600000 |  | 1164452 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Petroleos Mexicanos, Senior Notes | 6.625% | 6/15/38 |  | 1350000 |  | 931174 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Range Resources Corp., Senior Notes | 8.250% | 1/15/29 |  | 560000 |  | 577802 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Southwestern Energy Co., Senior Notes | 4.750% | 2/1/32 |  | 770000 |  | 659517 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Transportadora de Gas del Sur SA, Senior Notes | 6.750% | 5/2/25 |  | 710000 |  | 659011 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; YPF SA, Senior Notes | 6.950% | 7/21/27 |  | 645000 |  | 457950 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Oil, Gas & Consumable Fuels* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Oil, Gas & Consumable Fuels* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Oil, Gas & Consumable Fuels* |  |  |  | *8729987* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Energy** |  |  |  |  |  | **9329396** |  |

---

See Notes to Financial Statements.

Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report 13

------

Schedule of investments (cont'd)

December 31, 2022

**Western Asset Variable Global High Yield Bond Portfolio** 

(Percentages shown based on Portfolio net assets)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date |  | Face<br>Amount† | Value |  |
| **Financials — 8.1%** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Banks — 3.1%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Banco Mercantil del Norte SA, Junior Subordinated Notes (6.625% to 1/24/32 then 10 year Treasury Constant Maturity Rate + 5.034%) | 6.625% | 1/24/32 |  | 780000 | $647260 | <sup>(a)(c)(d)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Banco Mercantil del Norte SA, Junior Subordinated Notes (7.625% to 1/10/28 then 10 year Treasury Constant Maturity Rate + 5.353%) | 7.625% | 1/10/28 |  | 400000 | 375347 | <sup>(a)(c)(d)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BBVA Bancomer SA, Subordinated Notes (5.125% to 1/17/28 then 5 year Treasury Constant Maturity Rate + 2.650%) | 5.125% | 1/18/33 |  | 970000 | 872254 | <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Intesa Sanpaolo SpA, Subordinated Notes (4.198% to 6/1/31 then 1 year Treasury Constant Maturity Rate + 2.600%) | 4.198% | 6/1/32 |  | 2220000 | 1635573 | <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; TC Ziraat Bankasi AS, Senior Notes | 5.125% | 9/29/23 |  | 560000 | 555899 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Banks* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Banks* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Banks* |  |  | *4086333* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Capital Markets — 3.3%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; B3 SA - Brasil Bolsa Balcao, Senior Notes | 4.125% | 9/20/31 |  | 1370000 | 1156134 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Charles Schwab Corp., Junior Subordinated Notes (4.000% to 12/1/30 then 10 year Treasury Constant Maturity Rate + 3.079%) | 4.000% | 12/1/30 |  | 330000 | 263571 | <sup>(c)(d)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Coinbase Global Inc., Senior Notes | 3.625% | 10/1/31 |  | 430000 | 207652 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit Suisse Group AG, Junior Subordinated Notes (7.250% to 9/12/25 then USD 5 year ICE Swap Rate + 4.332%) | 7.250% | 9/12/25 |  | 2200000 | 1581819 | <sup>(a)(c)(d)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit Suisse Group AG, Junior Subordinated Notes (7.500% to 7/17/23 then USD 5 year ICE Swap Rate + 4.600%) | 7.500% | 7/17/23 |  | 450000 | 360729 | <sup>(a)(c)(d)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit Suisse Group AG, Junior Subordinated Notes (9.750% to 12/23/27 then 5 year Treasury Constant Maturity Rate + 6.383%) | 9.750% | 6/23/27 |  | 570000 | 497933 | <sup>(a)(c)(d)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit Suisse Group AG, Senior Notes (6.537%to 8/12/32 then SOFR + 3.920%) | 6.537% | 8/12/33 |  | 370000 | 325561 | <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Capital Markets* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Capital Markets* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Capital Markets* |  |  | *4393399* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Diversified Financial Services — 1.7%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Global Aircraft Leasing Co. Ltd., Senior Notes (6.500% Cash or 7.250% PIK) | 6.500% | 9/15/24 |  | 2668827 | *2274241* | <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Financials** |  |  |  |  | **10753973** |  |

---

See Notes to Financial Statements.

14 Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report

------

**Western Asset Variable Global High Yield Bond Portfolio** 

(Percentages shown based on Portfolio net assets)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date |  | Face<br>Amount† |  | Value |  |
| **Health Care — 5.2%** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Health Care Providers & Services — 0.3%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tenet Healthcare Corp., Secured Notes | 6.250% | 2/1/27 |  | 480000 |  | $*462019* | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Pharmaceuticals — 4.9%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Bausch Health Cos. Inc., Senior Secured Notes | 6.125% | 2/1/27 |  | 280000 |  | 193447 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Cheplapharm Arzneimittel GmbH, Senior Secured Notes | 5.500% | 1/15/28 |  | 560000 |  | 469157 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Cidron Aida Finco Sarl, Senior Secured Notes | 6.250% | 4/1/28 |  | 360000 | <sup>GBP</sup> | 355805 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Endo Luxembourg Finance Co. I Sarl/Endo US Inc., Senior Secured Notes | 6.125% | 4/1/29 |  | 250000 |  | 190118 | \*<sup>(a)(f)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Teva Pharmaceutical Finance Netherlands III BV, Senior Notes | 3.150% | 10/1/26 |  | 5570000 |  | 4882272 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Teva Pharmaceutical Finance Netherlands III BV, Senior Notes | 4.750% | 5/9/27 |  | 470000 |  | 425420 |  |
| &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* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Pharmaceuticals* |  |  |  | *6516219* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Health Care** |  |  |  |  |  | **6978238** |  |
| **Industrials — 7.8%** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Airlines — 3.4%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; American Airlines Group Inc., Senior Notes | 3.750% | 3/1/25 |  | 700000 |  | 594004 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; American Airlines Inc./AAdvantage Loyalty IP Ltd., Senior Secured Notes | 5.500% | 4/20/26 |  | 210000 |  | 202314 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; American Airlines Inc./AAdvantage Loyalty IP Ltd., Senior Secured Notes | 5.750% | 4/20/29 |  | 490000 |  | 448723 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd., Senior Secured Notes | 8.000% | 9/20/25 |  | 1038000 |  | 1043159 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd., Senior Secured Notes | 8.000% | 9/20/25 |  | 200000 |  | 201291 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; United Airlines Inc., Senior Secured Notes | 4.625% | 4/15/29 |  | 2270000 |  | 1980463 | <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* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Airlines* |  |  |  | *4469954* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Commercial Services & Supplies — 1.6%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Allied Universal Holdco LLC/Allied Universal Finance Corp./Atlas Luxco 4 Sarl, Senior Secured Notes | 4.625% | 6/1/28 |  | 690000 |  | 560310 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CoreCivic Inc., Senior Notes | 8.250% | 4/15/26 |  | 930000 |  | 955007 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; CoreCivic Inc., Senior Notes | 4.750% | 10/15/27 |  | 740000 |  | 643444 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Commercial Services & Supplies* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Commercial Services & Supplies* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Commercial Services & Supplies* |  |  |  | *2158761* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Electrical Equipment — 0.3%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sensata Technologies Inc., Senior Notes | 4.375% | 2/15/30 |  | 410000 |  | *357635* | <sup>(a)</sup> |

---

See Notes to Financial Statements.

Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report 15

------

Schedule of investments (cont'd)

December 31, 2022

**Western Asset Variable Global High Yield Bond Portfolio** 

(Percentages shown based on Portfolio net assets)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date |  | Face<br>Amount† |  | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Machinery — 0.8%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cellnex Finance Co. SA, Senior Notes | 2.000% | 2/15/33 |  | 200000 | <sup>EUR</sup> | $158004 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; TK Elevator Midco GmbH, Senior Secured Notes | 4.375% | 7/15/27 |  | 1020000 | <sup>EUR</sup> | 974389 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Machinery* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Machinery* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Machinery* |  |  |  | *1132393* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Trading Companies & Distributors — 1.7%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Boise Cascade Co., Senior Notes | 4.875% | 7/1/30 |  | 780000 |  | 683700 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; H&E Equipment Services Inc., Senior Notes | 3.875% | 12/15/28 |  | 1920000 |  | 1638806 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Trading Companies & Distributors* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Trading Companies & Distributors* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Trading Companies & Distributors* |  |  |  | *2322506* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Industrials** |  |  |  |  |  | **10441249** |  |
| **Information Technology — 0.3%** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *IT Services — 0.3%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Acuris Finance US Inc./Acuris Finance SARL, Senior Secured Notes | 5.000% | 5/1/28 |  | 320000 |  | 256939 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; IPD 3 BV, Senior Secured Notes | 5.500% | 12/1/25 |  | 100000 | <sup>EUR</sup> | 101875 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Information Technology** |  |  |  |  |  | **358814** |  |
| **Materials — 4.0%** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Chemicals — 1.1%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; INEOS Quattro Finance 1 PLC, Senior Notes | 3.750% | 7/15/26 |  | 130000 | <sup>EUR</sup> | 115066 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; INEOS Quattro Finance 2 PLC, Senior Secured Notes | 3.375% | 1/15/26 |  | 690000 |  | 634797 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Sasol Financing USA LLC, Senior Notes | 5.500% | 3/18/31 |  | 760000 |  | 619799 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Chemicals* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Chemicals* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Chemicals* |  |  |  | *1369662* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Containers & Packaging — 2.9%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; ARD Finance SA, Senior Secured Notes (6.500% Cash or 7.250% PIK) | 6.500% | 6/30/27 |  | 600000 |  | 418268 | <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Ardagh Metal Packaging Finance USA LLC/ Ardagh Metal Packaging Finance PLC, Senior Secured Notes | 6.000% | 6/15/27 |  | 580000 |  | 568510 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Ardagh Packaging Finance PLC/Ardagh Holdings USA Inc., Senior Notes | 5.250% | 8/15/27 |  | 1000000 |  | 749322 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Ball Corp., Senior Notes | 2.875% | 8/15/30 |  | 830000 |  | 664170 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ball Corp., Senior Notes | 3.125% | 9/15/31 |  | 430000 |  | 345905 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Canpack SA/Canpack US LLC, Senior Notes | 3.875% | 11/15/29 |  | 750000 |  | 592020 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Pactiv LLC, Senior Notes | 7.950% | 12/15/25 |  | 570000 |  | 551421 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Containers & Packaging* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Containers & Packaging* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Containers & Packaging* |  |  |  | *3889616* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Materials** |  |  |  |  |  | **5259278** |  |
| **Real Estate — 2.3%** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Equity Real Estate Investment Trusts (REITs) — 1.5%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Diversified Healthcare Trust, Senior Notes | 4.375% | 3/1/31 |  | 590000 |  | 374980 |  |

---

See Notes to Financial Statements.

16 Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report

------

**Western Asset Variable Global High Yield Bond Portfolio** 

(Percentages shown based on Portfolio net assets)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date |  | Face<br>Amount† |  | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Equity Real Estate Investment Trusts (REITs) — continued* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Service Properties Trust, Senior Notes | 4.500% | 3/15/25 |  | 150000 |  | $129619 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Service Properties Trust, Senior Notes | 5.500% | 12/15/27 |  | 1120000 |  | 965902 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Service Properties Trust, Senior Notes | 4.950% | 10/1/29 |  | 780000 |  | 540332 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Equity Real Estate Investment Trusts (REITs)* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Equity Real Estate Investment Trusts (REITs)* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Equity Real Estate Investment Trusts (REITs)* |  |  |  | *2010833* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Real Estate Management & Development — 0.8%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; China Aoyuan Group Ltd., Senior Secured Notes | 8.500% | 1/23/22 |  | 400000 |  | 33000 | \*<sup>(b)(g)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; China Aoyuan Group Ltd., Senior Secured Notes | 6.350% | 2/8/24 |  | 850000 |  | 71825 | \*<sup>(b)(f)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Samhallsbyggnadsbolaget i Norden AB, Junior Subordinated Notes (2.624% to 4/30/25 then EUR 5 year Swap Rate + 2.814%) | 2.624% | 1/30/25 |  | 1000000 | <sup>EUR</sup> | 423213 | <sup>(b)(c)(d)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Samhallsbyggnadsbolaget i Norden AB, Senior Notes | 1.125% | 9/4/26 |  | 550000 | <sup>EUR</sup> | 438970 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Yuzhou Group Holdings Co. Ltd., Senior Secured Notes | 8.500% | 2/4/23 |  | 200000 |  | 23600 | \*<sup>(b)(f)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Yuzhou Group Holdings Co. Ltd., Senior Secured Notes | 6.000% | 10/25/23 |  | 900000 |  | 81405 | \*<sup>(b)(f)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Real Estate Management & Development* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Real Estate Management & Development* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Real Estate Management & Development* |  |  |  | *1072013* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Real Estate** |  |  |  |  |  | **3082846** |  |
| **Utilities — 0.6%** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Electric Utilities — 0.1%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; InterGen NV, Senior Secured Notes | 7.000% | 6/30/23 |  | 210000 |  | *204153* | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Gas Utilities — 0.5%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Suburban Propane Partners LP/Suburban Energy Finance Corp., Senior Notes | 5.000% | 6/1/31 |  | 730000 |  | *621418* | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Utilities** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Utilities** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Utilities** |  |  |  | **825571** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Corporate Bonds & Notes (Cost — $121,438,298)** |  |  |  |  |  | **102944724** |  |
| **Sovereign Bonds — 11.7%** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Angola — 0.7%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Angolan Government International Bond, Senior Notes | 8.250% | 5/9/28 |  | 400000 |  | 365840 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Angolan Government International Bond, Senior Notes | 8.750% | 4/14/32 |  | 620000 |  | 538408 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Angola* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Angola* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Angola* |  |  |  | *904248* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Argentina — 1.4%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Argentine Republic Government International Bond, Senior Notes | 1.000% | 7/9/29 |  | 193002 |  | 51716 |  |

---

See Notes to Financial Statements.

Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report 17

------

Schedule of investments (cont'd)

December 31, 2022

**Western Asset Variable Global High Yield Bond Portfolio** 

(Percentages shown based on Portfolio net assets)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date |  | Face<br>Amount† | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Argentina — continued* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Argentine Republic Government International Bond, Senior Notes, Step bond (0.500% to 7/9/23 then 0.750%) | 0.500% | 7/9/30 |  | 523917 | $142605 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Argentine Republic Government International Bond, Senior Notes, Step bond (1.500% to 7/9/23 then 3.625%) | 1.500% | 7/9/35 |  | 1349180 | 345587 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Provincia de Buenos Aires, Senior Notes, Step bond (5.250% to 9/1/23 then 6.375%) | 5.250% | 9/1/37 |  | 2708278 | 944512 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Provincia de Cordoba, Senior Notes | 6.875% | 12/10/25 |  | 200000 | 162250 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Provincia de Cordoba, Senior Notes | 6.990% | 6/1/27 |  | 390000 | 261300 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Argentina* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Argentina* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Argentina* |  |  | *1907970* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Bahamas — 0.2%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Bahamas Government International Bond, Senior Notes | 6.950% | 11/20/29 |  | 300000 | *229171* | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Bahrain — 0.3%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Bahrain Government International Bond, Senior Notes | 6.000% | 9/19/44 |  | 510000 | *399881* | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Costa Rica — 0.3%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Costa Rica Government International Bond, Senior Notes | 7.000% | 4/4/44 |  | 350000 | *330896* | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Dominican Republic — 1.4%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dominican Republic International Bond, Senior Notes | 5.500% | 2/22/29 |  | 480000 | 443453 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Dominican Republic International Bond, Senior Notes | 4.500% | 1/30/30 |  | 410000 | 350578 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Dominican Republic International Bond, Senior Notes | 4.875% | 9/23/32 |  | 150000 | 125072 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Dominican Republic International Bond, Senior Notes | 6.000% | 2/22/33 |  | 390000 | 353263 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Dominican Republic International Bond, Senior Notes | 6.850% | 1/27/45 |  | 600000 | 523187 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Dominican Republic* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Dominican Republic* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Dominican Republic* |  |  | *1795553* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Ecuador — 0.7%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ecuador Government International Bond, Senior Notes | 0.000% | 7/31/30 |  | 1270000 | 502357 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Ecuador Government International Bond, Senior Notes, Step bond (2.500% to 7/31/23 then 3.500%) | 2.500% | 7/31/35 |  | 800000 | 371791 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Ecuador* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Ecuador* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Ecuador* |  |  | *874148* | |

---

See Notes to Financial Statements.

18 Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report

------

**Western Asset Variable Global High Yield Bond Portfolio** 

(Percentages shown based on Portfolio net assets)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date |  | Face<br>Amount† |  | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Egypt — 0.7%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Egypt Government International Bond, Senior Notes | 3.875% | 2/16/26 |  | 240000 |  | $198761 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Egypt Government International Bond, Senior Notes | 6.588% | 2/21/28 |  | 300000 |  | 245479 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Egypt Government International Bond, Senior Notes | 7.600% | 3/1/29 |  | 670000 |  | 547635 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Egypt* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Egypt* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Egypt* |  |  |  | *991875* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Ghana — 0.2%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ghana Government International Bond, Senior Notes | 10.750% | 10/14/30 |  | 290000 |  | *205105* | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Ivory Coast — 0.8%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ivory Coast Government International Bond, Senior Notes | 5.750% | 12/31/32 |  | 125389 |  | 118907 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Ivory Coast Government International Bond, Senior Notes | 6.125% | 6/15/33 |  | 1050000 |  | 937125 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Ivory Coast* |  |  |  |  |  | *1056032* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Jordan — 0.6%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Jordan Government International Bond, Senior Notes | 7.750% | 1/15/28 |  | 780000 |  | *791521* | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Kenya — 0.2%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Republic of Kenya Government International Bond, Senior Notes | 7.250% | 2/28/28 |  | 300000 |  | *263913* | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Mexico — 1.0%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Mexican Bonos, Senior Notes | 7.750% | 11/23/34 |  | 22020000 | <sup>MXN</sup> | 1021769 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Mexican Bonos, Senior Notes | 7.750% | 11/13/42 |  | 8140000 | <sup>MXN</sup> | 364904 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Mexico* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Mexico* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Mexico* |  |  |  | *1386673* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Nigeria — 0.3%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Nigeria Government International Bond, Senior Notes | 6.500% | 11/28/27 |  | 260000 |  | 210592 | <sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Nigeria Government International Bond, Senior Notes | 7.875% | 2/16/32 |  | 200000 |  | 151408 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Nigeria* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Nigeria* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Nigeria* |  |  |  | *362000* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Paraguay — 0.3%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Paraguay Government International Bond, Senior Notes | 2.739% | 1/29/33 |  | 560000 |  | *451677* | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Russia — 0.6%* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Russian Federal Bond — OFZ | 8.150% | 2/3/27 |  | 34070000 | <sup>RUB</sup> | 124731 | \*<sup>(f)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Russian Federal Bond — OFZ | 7.050% | 1/19/28 |  | 88573000 | <sup>RUB</sup> | 324267 | \*<sup>(f)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Russian Federal Bond — OFZ | 6.900% | 5/23/29 |  | 98650000 | <sup>RUB</sup> | 361160 | \*<sup>(f)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Russia* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Russia* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Russia* |  |  |  | *810158* | |

---

See Notes to Financial Statements.

Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report 19

------

Schedule of investments (cont'd)

December 31, 2022

**Western Asset Variable Global High Yield Bond Portfolio** 

(Percentages shown based on Portfolio net assets)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date |  | Face<br>Amount† | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Senegal — 0.2%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Senegal Government International Bond, Senior Notes | 6.750% | 3/13/48 |  | 460000 | $*326482* | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *South Africa — 0.2%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Republic of South Africa Government International Bond, Senior Notes | 5.650% | 9/27/47 |  | 380000 | *280618* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Turkey — 1.5%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Turkey Government International Bond, Senior Notes | 4.250% | 4/14/26 |  | 1520000 | 1357931 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Turkey Government International Bond, Senior Notes | 4.875% | 10/9/26 |  | 700000 | 629051 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Turkey* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Turkey* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Turkey* |  |  | *1986982* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Ukraine — 0.1%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ukraine Government International Bond, Senior Notes | 7.750% | 9/1/28 |  | 200000 | 43250 | \*<sup>(a)(f)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Ukraine Government International Bond, Senior Notes | 7.375% | 9/25/34 |  | 600000 | 114390 | \*<sup>(a)(f)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Ukraine* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Ukraine* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Ukraine* |  |  | *157640* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Sovereign Bonds (Cost — $21,307,034)** |  |  |  |  | **15512543** |  |
| **U.S. Government & Agency Obligations — 5.2%** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *U.S. Government Obligations — 5.2%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Notes | 2.875% | 9/30/23 |  | 780000 | 770339 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Notes | 0.750% | 12/31/23 |  | 1000000 | 961311 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Notes | 1.500% | 2/29/24 |  | 1000000 | 964355 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Notes | 1.750% | 6/30/24 |  | 700000 | 670906 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Notes | 3.500% | 9/15/25 |  | 400000 | 392063 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Notes | 2.250% | 11/15/25 |  | 500000 | 473359 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Notes | 1.500% | 1/31/27 |  | 1250000 | 1128760 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Notes | 1.875% | 2/28/27 |  | 1750000 | 1603027 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total U.S. Government & Agency Obligations (Cost — $6,998,230)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total U.S. Government & Agency Obligations (Cost — $6,998,230)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total U.S. Government & Agency Obligations (Cost — $6,998,230)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total U.S. Government & Agency Obligations (Cost — $6,998,230)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total U.S. Government & Agency Obligations (Cost — $6,998,230)** | **6964120** |  |
| **Convertible Bonds & Notes — 1.7%** |  |  |  |  |  |  |
| **Communication Services — 1.2%** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Media — 1.2%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; DISH Network Corp., Senior Notes | 2.375% | 3/15/24 |  | 700000 | 633325 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; DISH Network Corp., Senior Notes | 3.375% | 8/15/26 |  | 1480000 | 930920 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Communication Services** |  |  |  |  | **1564245** |  |
| **Industrials — 0.5%** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Airlines — 0.5%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Spirit Airlines Inc., Senior Notes | 1.000% | 5/15/26 |  | 880000 | **712800** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Convertible Bonds & Notes (Cost — $2,864,344)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Convertible Bonds & Notes (Cost — $2,864,344)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Convertible Bonds & Notes (Cost — $2,864,344)** |  |  | **2277045** |  |

---

See Notes to Financial Statements.

20 Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report

------

**Western Asset Variable Global High Yield Bond Portfolio** 

(Percentages shown based on Portfolio net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount† | Value |  |
| **Senior Loans — 0.7%** |  |  |  |  |  |
| **Communication Services — 0.5%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Media — 0.5%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; DirecTV Financing LLC, Closing Date Term Loan (1 mo. USD LIBOR + 5.000%) | 9.384% | 8/2/27 | 712555 | $**695262** | <sup>(c)(h)(i)</sup> |
| **Consumer Discretionary — 0.2%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Diversified Consumer Services — 0.2%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; WW International Inc., Initial Term Loan (1 mo. USD LIBOR + 3.500%) | 7.890% | 4/13/28 | 500000 | **288750** | <sup>(c)(h)(i)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Senior Loans (Cost — $1,070,187)** |  |  |  | **984012** |  |
| **Asset-Backed Securities — 0.4%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Magnetite Ltd., 2015-12A ER (3 mo. USD LIBOR + 5.680%) (Cost — $593,031) | 9.759% | 10/15/31 | 600000 | **532930** | <sup>(a)(c)</sup> |
|  |  |  | Shares |  |  |
| **Investments in Underlying Funds — 0.1%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; SPDR Bloomberg High Yield Bond ETF<br>(Cost — $95,990) |  |  | 1000 | **90000** |  |
|  |  | Expiration<br>Date | Warrants |  |  |
| **Warrants — 0.0%††** |  |  |  |  |  |
| **Financials — 0.0%††** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Capital Markets — 0.0%††* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; EG Acquisition Corp., Class A Shares (Cost — $6,358) |  | 5/28/28 | 6640 | **1281** | \* |
|  |  |  | Shares |  |  |
| **Common Stocks — 0.0%††** |  |  |  |  |  |
| **Energy — 0.0%††** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Energy Equipment & Services — 0.0%††* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; KCAD Holdings I Ltd. (Cost — $613,437) |  |  | 75024286 | **0** | \*<sup>(j)(k)(l)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Investments before Short-Term Investments (Cost — $154,986,909)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Investments before Short-Term Investments (Cost — $154,986,909)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Investments before Short-Term Investments (Cost — $154,986,909)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Investments before Short-Term Investments (Cost — $154,986,909)** | **129306655** |  |

---

See Notes to Financial Statements.

Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report 21

------

Schedule of investments (cont'd)

December 31, 2022

**Western Asset Variable Global High Yield Bond Portfolio** 

(Percentages shown based on Portfolio net assets)

---

| | | | |
|:---|:---|:---|:---|
| Security | Rate | Shares | Value |
| **Short-Term Investments — 0.7%** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Western Asset Premier Institutional Government Reserves, Premium Shares<br>(Cost — $1,019,727) | 4.244% | 1019727 | $**1019727** <sup>(m)(n)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Investments — 97.8% (Cost — $156,006,636)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Investments — 97.8% (Cost — $156,006,636)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Investments — 97.8% (Cost — $156,006,636)** | **130326382** |
| &nbsp;&nbsp;&nbsp;&nbsp; Other Assets in Excess of Liabilities — 2.2% |  |  | 2889493 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Net Assets — 100.0%** |  |  | $**133215875** |

---

† Face amount denominated in U.S. dollars, unless otherwise noted.

---

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

---

\* Non-income producing security.

<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> Payment-in-kind security for which the issuer has the option at each interest payment date of making interest payments in cash or additional securities.

<sup>(f)</sup> The coupon payment on this security is currently in default as of December 31, 2022. <sup></sup>

<sup>(g)</sup> The maturity principal is currently in default as of December 31, 2022.

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

<sup>(j)</sup> Security is valued in good faith in accordance with procedures approved by the Board of Trustees (Note 1).

<sup>(k)</sup> Security is valued using significant unobservable inputs (Note 1).

<sup>(l)</sup> Value is less than $1. 

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

<sup>(n)</sup> In this instance, as defined in the Investment Company Act of 1940, an "Affiliated Company" represents Portfolio 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 Portfolio. At December 31, 2022, the total market value of investments in Affiliated Companies was $1,019,727 and the cost was $1,019,727 (Note 8). 

See Notes to Financial Statements.

22 Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report

------

**Western Asset Variable Global High Yield Bond Portfolio** 

---

| | |
|:---|:---|
| **Abbreviation(s) used in this schedule:** | **Abbreviation(s) used in this schedule:** |
| ETF | — Exchange-Traded Fund |
| EUR | — Euro |
| GBP | — British Pound |
| ICE | — Intercontinental Exchange |
| LIBOR | — London Interbank Offered Rate |
| MXN | — Mexican Peso |
| OFZ | — Obligatsyi Federal'novo Zaima (Russian Federal Loan Obligation) |
| PIK | — Payment-In-Kind |
| RUB | — Russian Ruble |
| SOFR | — Secured Overnight Financing Rate |
| SPDR | — Standard & Poor's Depositary Receipts |
| USD | — United States Dollar |

---

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Number of<br>Contracts | Expiration<br>Date | Notional<br>Amount | Market<br>Value | Unrealized<br>Depreciation |
| **Contracts to Sell:** |  |  |  |  |  |
| Euro | 18 | 3/23 | $2412990 | $2419650 | $(6660) |

---

At December 31, 2022, the Portfolio had the following open forward foreign currency contracts:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Currency<br>Purchased | Currency<br>Purchased | Currency<br> Sold | Currency<br> Sold | Counterparty | Settlement<br>Date | Unrealized<br> Appreciation<br> (Depreciation) |
| MXN | 495546 | USD | 24322 | Bank of America N.A. | 1/18/23 | $1015 |
| GBP | 632000 | USD | 758830 | Goldman Sachs Group Inc. | 1/18/23 | 5628 |
| USD | 201134 | EUR | 188294 | Goldman Sachs Group Inc. | 1/18/23 | (695) |
| USD | 190569 | GBP | 168000 | Goldman Sachs Group Inc. | 1/18/23 | (12641) |
| USD | 567109 | GBP | 500000 | Goldman Sachs Group Inc. | 1/18/23 | (37683) |
| USD | 5464754 | GBP | 4748553 | Goldman Sachs Group Inc. | 1/18/23 | (279022) |
| EUR | 214551 | USD | 225661 | Morgan Stanley & Co. Inc. | 1/18/23 | 4312 |
| EUR | 740000 | USD | 730116 | Morgan Stanley & Co. Inc. | 1/18/23 | 63077 |
| USD | 240965 | EUR | 225565 | Morgan Stanley & Co. Inc. | 1/18/23 | (814) |
| USD | 3327196 | EUR | 3311500 | Morgan Stanley & Co. Inc. | 1/18/23 | (222345) |
| **Total** |  |  |  |  |  | $**(479168)** |

---

---

| | |
|:---|:---|
| **Abbreviation(s) used in this table:** | **Abbreviation(s) used in this table:** |
| EUR | — Euro |
| GBP | — British Pound |
| MXN | — Mexican Peso |
| USD | — United States Dollar |

---

---

| | |
|:---|:---|
| **Summary of Investments by Country\*\*** (unaudited) | |
| United States | 47.1% |
| United Kingdom | 5.9 |

---

See Notes to Financial Statements.

Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report 23

------

Schedule of investments (cont'd)

December 31, 2022

**Western Asset Variable Global High Yield Bond Portfolio** 

---

| | |
|:---|:---|
| **Summary of Investments by Country\*\*** (unaudited) **(cont'd)** | |
| Mexico | 4.1% |
| Israel | 4.1 |
| Luxembourg | 3.0 |
| Turkey | 2.6 |
| Brazil | 2.5 |
| Macau | 2.4 |
| Argentina | 2.3 |
| Germany | 2.3 |
| Italy | 2.2 |
| Cayman Islands | 2.1 |
| Switzerland | 2.1 |
| Netherlands | 1.4 |
| Dominican Republic | 1.4 |
| France | 1.1 |
| Peru | 0.9 |
| Spain | 0.9 |
| Guatemala | 0.8 |
| Ivory Coast | 0.8 |
| Egypt | 0.8 |
| Angola | 0.7 |
| South Africa | 0.7 |
| Ecuador | 0.7 |
| Sweden | 0.7 |
| Russia | 0.6 |
| Jordan | 0.6 |
| Hong Kong | 0.6 |
| Canada | 0.5 |
| Colombia | 0.5 |
| Poland | 0.5 |
| Paraguay | 0.3 |
| Bahrain | 0.3 |
| Nigeria | 0.3 |
| Costa Rica | 0.2 |
| Senegal | 0.2 |
| Kenya | 0.2 |
| Bahamas | 0.2 |
| China | 0.2 |
| Ghana | 0.2 |
| Ukraine | 0.1 |

---

See Notes to Financial Statements.

24 Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report

------

**Western Asset Variable Global High Yield Bond Portfolio** 

---

| | |
|:---|:---|
| **Summary of Investments by Country\*\*** (unaudited) **(cont'd)** | |
| Investments in Underlying Funds | 0.1% |
| Short-Term Investments | 0.8 |
|  | **100.0%** |

---

\*\* As a percentage of total investments. Please note that the Portfolio holdings are as of December 31, 2022 and are subject to change. 

See Notes to Financial Statements.

Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report 25

------

Statement of assets and liabilities

December 31, 2022

---

| | | |
|:---|:---|:---|
| **Assets:** | | |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments in unaffiliated securities, at value (Cost — $154,986,909) | $129306655 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments in affiliated securities, at value (Cost — $1,019,727) | 1019727 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency, at value (Cost — $384,113) | 391252 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash | 1061363 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest receivable | 2038935 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Deposits with brokers for open futures contracts | 135014 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrealized appreciation on forward foreign currency contracts | 74032 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for Portfolio shares sold | 6114 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends receivable from affiliated investments | 1458 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 568 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total Assets*** | ***134035118*** | **** |
| **Liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrealized depreciation on forward foreign currency contracts | 553200 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Payable for Portfolio shares repurchased | 119718 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment management fee payable | 80385 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Service and/or distribution fees payable | 12134 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Payable to brokers — net variation margin on open futures contracts | 4838 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees payable | 724 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 48244 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total Liabilities*** | ***819243*** | **** |
| **Total Net Assets** | $**133215875** |  |
| **Net Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Par value (Note 7) | $227 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Paid-in capital in excess of par value | 180707405 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributable earnings (loss) | (47491757) |  |
| **Total Net Assets** | $**133215875** |  |
| **Net Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I | $76863293 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class II | $56352582 |  |
| **Shares Outstanding:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I | 13293251 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class II | 9389756 |  |
| **Net Asset Value:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I | $5.78 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class II | $6.00 |  |

---

See Notes to Financial Statements.

26 Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report

------

Statement of operations

For the Year Ended December 31, 2022

---

| | | |
|:---|:---|:---|
| **Investment Income:** | | |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest | $8722857 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends from unaffiliated investments | 52134 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends from affiliated investments | 13257 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Less: Foreign taxes withheld | (21409) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total Investment Income*** | ***8766839*** | **** |
| **Expenses:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment management fee (Note 2) | 994173 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Service and/or distribution fees (Notes 2 and 5) | 145297 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Fund accounting fees | 68946 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax fees | 41558 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal fees | 9741 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Custody fees | 4051 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees | 3244 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Transfer agent fees (Note 5) | 3226 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commitment fees (Note 9) | 1096 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest expense | 866 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 538 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous expenses | 48 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total Expenses*** | ***1272784*** | **** |
| &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) | (9161) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Net Expenses*** | ***1263623*** | **** |
| **Net Investment Income** | **7503216** |  |
| **Realized and Unrealized Gain (Loss) on Investments, Futures Contracts, Forward Foreign Currency Contracts and Foreign Currency Transactions (Notes 1, 3 and 4):** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Realized Gain (Loss) From: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment transactions in unaffiliated securities | (7110989) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | 380479 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forward foreign currency contracts | 1357630 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (35786) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Net Realized Loss*** | ***(5408666)*** | **** |
| &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 | (23977554) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | 23574 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forward foreign currency contracts | (555452) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currencies | 17785 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Change in Net Unrealized Appreciation (Depreciation)*** | ***(24491647)*** | **** |
| **Net Loss on Investments, Futures Contracts, Forward Foreign Currency Contracts and Foreign Currency Transactions** | **(29900313)** |  |
| **Decrease in Net Assets From Operations** | $**(22397097)** |  |

---

See Notes to Financial Statements.

Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report 27

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Statements of changes in net assets

---

| | | | | |
|:---|:---|:---|:---|:---|
| For the Years Ended December 31, | 2022 |  | 2021 |  |
| **Operations:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | $7503216 |  | $7162624 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | (5408666) |  | 4632984 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Change in net unrealized appreciation (depreciation) | (24491647) |  | (9782285) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Increase (Decrease) in Net Assets From Operations*** | ***(22397097)*** | **** | ***2013323*** | **** |
| **Distributions to Shareholders From (Notes 1 and 6):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributable earnings | (9050016) |  | (7075015) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Decrease in Net Assets From Distributions to Shareholders*** | ***(9050016)*** | **** | ***(7075015)*** | **** |
| **Portfolio Share Transactions (Note 7):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net proceeds from sale of shares | 16808951 |  | 101689793 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestment of distributions | 9050016 |  | 7075015 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cost of shares repurchased | (25540242) |  | (93470056) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Increase in Net Assets From Portfolio Share Transactions*** | ***318725*** | **** | ***15294752*** | **** |
|  ***Increase (Decrease) in Net Assets*** | ***(31128388)*** | **** | ***10233060*** | **** |
| **Net Assets:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of year | 164344263 |  | 154111203 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **End of year** | $**133215875** |  | $**164344263** |  |

---

See Notes to Financial Statements.

28 Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report

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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 I Shares<sup>1</sup> | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  |
| **Net asset value, beginning of year** | $7.19 |  | $7.43 |  | $7.19 |  | $6.65 |  | $7.30 |  |
| **Income (loss) from operations:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 0.34 |  | 0.34 |  | 0.35 |  | 0.40 |  | 0.39 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (1.32) |  | (0.24) |  | 0.18 |  | 0.53 |  | (0.66) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total income (loss) from operations*** | ***(0.98)*** | **** | ***0.10*** | **** | ***0.53*** | **** | ***0.93*** | **** | ***(0.27)*** | **** |
| **Less distributions from:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | (0.43) |  | (0.34) |  | (0.29) |  | (0.39) |  | (0.38) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Return of capital |  |  |  |  | (0.00) | <sup>2</sup> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total distributions*** | ***(0.43)*** | **** | ***(0.34)*** | **** | ***(0.29)*** | **** | ***(0.39)*** | **** | ***(0.38)*** | **** |
| **Net asset value, end of year** | $5.78 |  | $7.19 |  | $7.43 |  | $7.19 |  | $6.65 |  |
|  ***Total return<sup>3</sup>*** | ***(13.72)*** | *%*** | ***1.33*** | *%*** | ***7.32*** | *%*** | ***14.39*** | *%*** | ***(3.92)*** | *%*** |
| **Net assets, end of year (000s)** | $76863 |  | $99346 |  | $103974 |  | $109173 |  | $117707 |  |
| **Ratios to average net assets:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gross expenses | 0.79 | % | 0.82 | % | 0.84 | % | 0.83 | % | 0.85 | % |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses<sup>4</sup> | 0.79 | <sup>5</sup> | 0.82 | <sup>5</sup> | 0.84 | <sup>5</sup> | 0.83 | <sup>5</sup> | 0.85 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 5.37 |  | 4.49 |  | 4.89 |  | 5.56 |  | 5.37 |  |
| **Portfolio turnover rate** | **58** | **%** | **73** | **%** | **98** | **%** | **78** | **%** | **103** | **%** |

---

<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 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. Total returns do not reflect expenses associated with separate accounts such as administrative fees, account charges and surrender charges which, if reflected, would reduce the total return for all periods shown. 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 I shares did not exceed 0.90%. 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 Portfolio'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.

See Notes to Financial Statements.

Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report 29

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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 II Shares<sup>1</sup> | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  |
| **Net asset value, beginning of year** | $7.44 |  | $7.68 |  | $7.43 |  | $6.86 |  | $7.52 |  |
| **Income (loss) from operations:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 0.34 |  | 0.33 |  | 0.34 |  | 0.39 |  | 0.38 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (1.37) |  | (0.25) |  | 0.19 |  | 0.56 |  | (0.68) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total income (loss) from operations*** | ***(1.03)*** | **** | ***0.08*** | **** | ***0.53*** | **** | ***0.95*** | **** | ***(0.30)*** | **** |
| **Less distributions from:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | (0.41) |  | (0.32) |  | (0.28) |  | (0.38) |  | (0.36) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Return of capital |  |  |  |  | (0.00) | <sup>2</sup> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total distributions*** | ***(0.41)*** | **** | ***(0.32)*** | **** | ***(0.28)*** | **** | ***(0.38)*** | **** | ***(0.36)*** | **** |
| **Net asset value, end of year** | $6.00 |  | $7.44 |  | $7.68 |  | $7.43 |  | $6.86 |  |
|  ***Total return<sup>3</sup>*** | ***(13.87)*** | *%*** | ***1.04*** | *%*** | ***7.12*** | *%*** | ***14.01*** | *%*** | ***(4.16)*** | *%*** |
| **Net assets, end of year (000s)** | $56353 |  | $64999 |  | $50137 |  | $42186 |  | $29432 |  |
| **Ratios to average net assets:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gross expenses | 1.04 | % | 1.07 | % | 1.10 | % | 1.08 | % | 1.11 | % |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses<sup>4</sup> | 1.03 | <sup>5</sup> | 1.07 | <sup>5</sup> | 1.10 | <sup>5</sup> | 1.08 | <sup>5</sup> | 1.11 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 5.16 |  | 4.26 |  | 4.63 |  | 5.29 |  | 5.16 |  |
| **Portfolio turnover rate** | **58** | **%** | **73** | **%** | **98** | **%** | **78** | **%** | **103** | **%** |

---

<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 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. Total returns do not reflect expenses associated with separate accounts such as administrative fees, account charges and surrender charges which, if reflected, would reduce the total return for all periods shown. 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 II shares did not exceed 1.15%. 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 Portfolio'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.

See Notes to Financial Statements.

30 Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report

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Notes to financial statements

**1. Organization and significant accounting policies** 

Western Asset Variable Global High Yield Bond Portfolio (the "Portfolio") is a separate diversified investment series of Legg Mason Partners Variable 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.

Shares of the Portfolio may only be purchased or redeemed through variable annuity contracts and variable life insurance policies offered by the separate accounts of participating insurance companies or through eligible pension or other qualified plans.

The Portfolio 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 Portfolio 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, including exchange-traded funds ("ETFs"), 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 Portfolio holds securities or other assets that are denominated in a foreign currency, the Portfolio 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 Portfolio calculates its net asset value, the Portfolio values these securities as determined in accordance with procedures approved by the Portfolio's Board of Trustees.

Pursuant to policies adopted by the Board of Trustees, the Portfolio's manager has been designated as the valuation designee and is responsible for the oversight of the daily

Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report 31

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Notes to financial statements (cont'd)

valuation process. The Portfolio'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 Portfolio's pricing policies, and reporting to the Portfolio's manager and the Board of Trustees. When determining the reliability of third party pricing information for investments owned by the Portfolio, 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 Portfolio 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 Portfolio'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.

32 Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report

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The following is a summary of the inputs used in valuing the Portfolio'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 |  | $102944724 |  | $102944724 |
| &nbsp;&nbsp;&nbsp;&nbsp; Sovereign Bonds |  | 15512543 |  | 15512543 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Government & Agency Obligations |  | 6964120 |  | 6964120 |
| &nbsp;&nbsp;&nbsp;&nbsp; Convertible Bonds & Notes |  | 2277045 |  | 2277045 |
| &nbsp;&nbsp;&nbsp;&nbsp; Senior Loans |  | 984012 |  | 984012 |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset-Backed Securities |  | 532930 |  | 532930 |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments in Underlying Funds | $90000 |  |  | 90000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Warrants | 1281 |  |  | 1281 |
| &nbsp;&nbsp;&nbsp;&nbsp; Common Stocks |  |  | $0 \* | 0 \* |
| Total Long-Term Investments | 91281 | 129215374 | 0 \* | 129306655 |
| Short-Term Investments | 1019727 |  |  | 1019727 |
| **Total Investments** | $**1111008** | $**129215374** | $**0** **\*** | $**130326382** |
| Other Financial Instruments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Forward Foreign Currency Contracts†† |  | $74032 |  | $74032 |
| **Total** | $**1111008** | $**129289406** | $**0** **\*** | $**130400414** |
| **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†† | $6660 |  |  | $6660 |
| &nbsp;&nbsp;&nbsp;&nbsp; Forward Foreign Currency Contracts†† |  | $553200 |  | 553200 |
| **Total** | $**6660** | $**553200** | **—** | $**559860** |

---

† See Schedule of Investments for additional detailed categorizations.

\* Amount represents less than $1. 

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

**(b) Futures contracts.** The Portfolio 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 Portfolio is required to deposit cash or securities 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

Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report 33

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Notes to financial statements (cont'd)

received by the Portfolio 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 Portfolio recognizes a realized gain or loss when the contract is closed.

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 Portfolio may not be able to enter into a closing transaction because of an illiquid secondary market.

**(c) Forward foreign currency contracts.** The Portfolio enters into a forward foreign currency contract to hedge against foreign currency exchange rate risk on its non-U.S. dollar denominated securities or to facilitate settlement of a foreign currency denominated portfolio transaction. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price with delivery and settlement at a future date. The contract is marked-to-market daily and the change in value is recorded by the Portfolio as an unrealized gain or loss. When a forward foreign currency contract is closed, through either delivery or offset by entering into another forward foreign currency contract, the Portfolio recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value of the contract at the time it is closed.

Forward foreign currency contracts involve elements of market risk in excess of the amounts reflected on the Statement of Assets and Liabilities. The Portfolio bears the risk of an unfavorable change in the foreign exchange rate underlying the forward foreign currency contract. Risks may also arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts.

**(d) Loan participations.** The Portfolio may invest in loans arranged through private negotiation between one or more financial institutions. The Portfolio'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 Portfolio 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 Portfolio may not benefit directly from any collateral supporting the loan in which it has purchased the participation.

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

**(e) Foreign currency translation.** Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the respective dates of such transactions.

The Portfolio does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates on investments from the fluctuations arising from

34 Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report

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changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from sales of foreign currencies, including gains and losses on forward foreign currency contracts, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Portfolio's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the values of assets and liabilities, other than investments in securities, on the date of valuation, resulting from changes in exchange rates.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

**(f) Credit and market risk.** The Portfolio invests in high-yield and emerging market instruments that are subject to certain credit and market risks. The yields of high-yield and emerging market debt obligations reflect, among other things, perceived credit and market risks. The Portfolio's investments in securities rated below investment grade typically involve risks not associated with higher rated securities 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. The consequences of political, social, economic or diplomatic changes may have disruptive effects on the market prices of investments held by the Portfolio. The Portfolio's investments in non-U.S. dollar denominated securities may also result in foreign currency losses caused by devaluations and exchange rate fluctuations.

**(g) Foreign investment risks.** The Portfolio'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 Portfolio. Foreign investments may also subject the Portfolio 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.

**(h) Counterparty risk and credit-risk-related contingent features of derivative instruments.** The Portfolio may invest in certain securities or engage in other transactions where the Portfolio is exposed to counterparty credit risk in addition to broader market risks. The Portfolio 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 Portfolio'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

Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report 35

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Notes to financial statements (cont'd)

assessment of such counterparty risk by the subadviser. In addition, declines in the values of underlying collateral received may expose the Portfolio to increased risk of loss.

With exchange traded and centrally cleared derivatives, there is less counterparty risk to the Portfolio 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 Portfolio 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 Portfolio 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 limited to, a percentage decrease in the Portfolio'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 Portfolio 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 Portfolio 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 Portfolio 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 Portfolio held forward foreign currency contracts with credit related contingent features which had a liability position of $553,200. If a contingent feature in the master agreements would have been triggered, the Portfolio would have been required to pay this amount to its derivatives counterparties.

**(i) 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. 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 Portfolio determines the existence of a dividend declaration after exercising reasonable due diligence. The cost of investments sold is

36 Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report

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determined by use of the specific identification method. To the extent any issuer defaults or a credit event occurs that impacts the issuer, the Portfolio may halt any additional interest income accruals and consider the realizability of interest accrued up to the date of default or credit event.

**(j) Distributions to shareholders.** Distributions from net investment income and distributions of net realized gains, if any, are declared at least annually. Distributions to shareholders of the Portfolio are recorded on the ex-dividend date and are determined in accordance with income tax regulations, which may differ from GAAP.

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

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

**(m) Federal and other taxes.** It is the Portfolio'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 Portfolio 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 Portfolio's financial statements.

Management has analyzed the Portfolio'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 Portfolio's financial statements. The Portfolio'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.

**(n) 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) | $85806 | $(85806) |

---

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

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

Legg Mason Partners Fund Advisor, LLC ("LMPFA") is the Portfolio's investment manager. Western Asset Management Company, LLC ("Western Asset"), Western Asset Management Company Limited ("Western Asset London") and Western Asset Management Company Pte. Ltd. ("Western Asset Singapore") are the Portfolio's subadvisers. LMPFA,

Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report 37

------

Notes to financial statements (cont'd)

Western Asset, Western Asset London and Western Asset Singapore are indirect, wholly-owned subsidiaries of Franklin Resources, Inc. ("Franklin Resources").

Under the investment management agreement, the Portfolio pays an investment management fee, calculated daily and paid monthly, at an annual rate of 0.70% of the Portfolio's average daily net assets.

LMPFA provides administrative and certain oversight services to the Portfolio. LMPFA delegates to Western Asset the day-to-day portfolio management of the Portfolio. Western Asset London and Western Asset Singapore provide certain subadvisory services to the Portfolio 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 a fee monthly, at an annual rate equal to 70% of the net management fee it receives from the Portfolio. In turn, Western Asset pays Western Asset London and Western Asset Singapore 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 each such non-U.S. subadviser to manage.

As a result of expense limitation arrangements between the Portfolio 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 I and Class II shares did not exceed 0.90% and 1.15%, respectively. 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 Portfolio'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 $9,161, which included an affiliated money market fund waiver of $1,138.

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 Portfolio, 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 Portfolio had no remaining fee waivers and/or expense reimbursements subject to recapture by LMPFA. For the year ended December 31, 2022, LMPFA did not recapture any fees.

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

38 Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report

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

**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 | $67217627 | $13339559 |
| Sales | 69031814 | 10808897 |

---

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 | Gross<br>Unrealized<br>Appreciation | Gross<br> Unrealized<br>Depreciation | Net<br>Unrealized<br>Depreciation |
| Securities | $156322951 | $214956 | $(26211525) | $(25996569) |
| Futures contracts |  |  | (6660) | (6660) |
| Forward foreign currency contracts |  | 74032 | (553200) | (479168) |

---

**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>** |
|  | Foreign<br>Exchange Risk |
| Forward foreign currency contracts | $74032 |

---

---

| | |
|:---|:---|
| **LIABILITY DERIVATIVES<sup>1</sup>** | **LIABILITY DERIVATIVES<sup>1</sup>** |
|  | Foreign<br>Exchange Risk |
| Futures contracts<sup>2</sup> | $6660 |
| Forward foreign currency contracts | 553200 |
| **Total** | $**559860** |

---

<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> 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.

Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report 39

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Notes to financial statements (cont'd)

The following tables provide information about the effect of derivatives and hedging activities on the Portfolio'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 Portfolio'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 | Foreign<br>Exchange Risk | Total |
| Futures contracts | $15676 | $364803 | $380479 |
| Forward foreign currency contracts |  | 1357630 | 1357630 |
| **Total** | $**15676** | $**1722433** | $**1738109** |

---

---

| | |
|:---|:---|
| **CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED** | **CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED** |
|  | Foreign<br>Exchange Risk |
| Futures contracts | $23574 |
| Forward foreign currency contracts | (555452) |
| **Total** | $**(531878)** |

---

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

---

| | |
|:---|:---|
| | Average Market<br>Value |
| Futures contracts (to buy)† | $1372987 |
| Futures contracts (to sell) | 3316842 |
| Forward foreign currency contracts (to buy) | 542913 |
| Forward foreign currency contracts (to sell) | 8788232 |

---

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

The following table presents the Portfolio's OTC derivative assets and liabilities by counterparty net of amounts available for offset under an ISDA Master Agreement and net of the related collateral pledged (received) by the Portfolio as of December 31, 2022.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Counterparty | Gross<br> Assets<br>Subject to<br>Master<br>Agreements<sup>1</sup> | Gross<br> Liabilities<br> Subject to<br> Master<br>Agreements<sup>1</sup> | Net Assets<br>(Liabilities)<br>Subject to<br>Master<br>Agreements | Collateral<br>Pledged<br>(Received) | Net<br>Amount<sup>2</sup> |
| Bank of America N.A. | $1015 |  | $1015 |  | $1015 |
| Goldman Sachs Group Inc. | 5628 | $(330041) | (324413) |  | (324413) |
| Morgan Stanley & Co. Inc. | 67389 | (223159) | (155770) |  | (155770) |
| **Total** | $**74032** | $**(553200)** | $**(479168)** |  | $**(479168)** |

---

<sup>1</sup> Absent an event of default or early termination, derivative assets and liabilities are presented gross and not offset in the Statement of Assets and Liabilities.

<sup>2</sup> Represents the net amount receivable (payable) from (to) the counterparty in the event of default. 

40 Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report

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

The Portfolio has adopted a Rule 12b-1 shareholder services and distribution plan and under that plan the Portfolio pays service and/or distribution fees with respect to its Class II shares calculated at the annual rate of 0.25% of the average daily net assets of the class. 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 I |  |  | $2265 |
| Class II | $145297 | <sup>†</sup> | 961 |
| **Total** | $**145297** |  | $**3226** |

---

† Amount shown is exclusive of expense reimbursements. For the year ended December 31, 2022, the service and/or
distribution fees reimbursed amounted to $8,023 for Class II shares.

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

---

| | |
|:---|:---|
| | Waivers/Expense<br>Reimbursements |
| Class I | $674 |
| Class II | 8487 |
| **Total** | $**9161** |

---

**6. Distributions to shareholders by class** 

---

| | | |
|:---|:---|:---|
| | Year Ended<br>December 31, 2022 | Year Ended<br>December 31, 2021 |
| **Net Investment Income:** |  |  |
| Class I | $5382107 | $4453912 |
| Class II | 3667909 | 2621103 |
| **Total** | $**9050016** | $**7075015** |

---

**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 Portfolio 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.

Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report 41

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Notes to financial statements (cont'd)

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 I** |  |  |  |  |
| Shares sold | 855578 | $5485978 | 10431532 | $79155538 |
| Shares issued on reinvestment | 914733 | 5382107 | 622055 | 4453912 |
| Shares repurchased | (2294763) | (14618568) | (11232909) | (85246940) |
| **Net decrease** | **(524452)** | $**(3750483)** | **(179322)** | $**(1637490)** |
| **Class II** |  |  |  |  |
| Shares sold | 1705058 | $11322973 | 2912414 | $22534255 |
| Shares issued on reinvestment | 600953 | 3667909 | 353249 | 2621103 |
| Shares repurchased | (1649092) | (10921674) | (1062066) | (8223116) |
| **Net increase** | **656919** | $**4069208** | **2203597** | $**16932242** |

---

**8. Transactions with affiliated company** 

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Affiliate | | | | |
|  | Value at | | | | |
| | December 31,<br>2021 | Purchased | Purchased | Sold | Sold |
| | December 31,<br>2021 | Cost | Shares | Proceeds | Shares |
| Western Asset Premier Institutional Government Reserves, Premium Shares | $2336511 | $42036474 | 42036474 | $43353258 | 43353258 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| (cont'd) | Realized<br> Gain<br>(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 |  | $13257 |  | $1019727 |

---

**9. Redemption facility** 

The Portfolio 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

42 Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report

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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 Portfolio shall, in addition to interest charged on any borrowings made by the Portfolio and other costs incurred by the Portfolio, 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 Portfolio did not utilize the Global Credit Facility during the year ended December 31, 2022.

**10. 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 | $9050016 | $7075015 |

---

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

---

| | |
|:---|:---|
| Deferred capital losses\* | $(20835376) |
| Other book/tax temporary differences<sup>(a)</sup> | (187716) |
| Unrealized appreciation (depreciation)<sup>(b)</sup> | (26468665) |
| **Total distributable earnings (loss) — net** | $**(47491757)** |

---

\* 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 deferral of certain late year losses for tax purposes, the realization for tax purposes of unrealized gains (losses) on certain futures and foreign currency contracts 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 book/tax differences in the accrual of interest income on securities in default.

**11. 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.

Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report 43

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Notes to financial statements (cont'd)

**12. 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 Portfolio's investments, impair the Portfolio's ability to satisfy redemption requests, and negatively impact the Portfolio's performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to the Portfolio by its service providers.

\* \* \*

The Portfolio'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 Portfolio'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 Portfolio has exposure to Russian investments or investments in countries affected by the invasion, the Portfolio's ability to price, buy, sell, receive or deliver such investments was impaired. The Portfolio could determine at any time

44 Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report

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that certain of the most affected securities have little or no value. In addition, any exposure that the Portfolio may have to counterparties in Russia or in countries affected by the invasion could negatively impact the Portfolio'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 events could significantly impact the Portfolio's performance and the value of an investment in the Portfolio, even beyond any direct exposure the Portfolio may have to Russian issuers or issuers in other countries affected by the invasion. At December 31, 2022, the Portfolio had 0.61% of its net assets invested in securities with significant economic risk or exposure to Russia.

Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report 45

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Report of independent registered public accounting firm

**To the Board of Trustees of Legg Mason Partners Variable Income Trust and Shareholders of Western Asset Variable Global High Yield Bond Portfolio** 

**Opinion on the Financial Statements** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Western Asset Variable Global High Yield Bond Portfolio (one of the portfolios constituting Legg Mason Partners Variable Income Trust, referred to hereafter as the "Portfolio") 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 Portfolio 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 Portfolio's management. Our responsibility is to express an opinion on the Portfolio'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 Portfolio 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. We believe that our audits provide a reasonable basis for our opinion.

/s/PricewaterhouseCoopers LLP

Baltimore, Maryland

February 17, 2023

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

46 Western Asset Variable Global High Yield Bond Portfolio 2022 Annual Report

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Additional information (unaudited)

**Information about Trustees and Officers** 

The business and affairs of Western Asset Variable Global High Yield Bond Portfolio (the "Portfolio") 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 Portfolio is set forth below. The Statement of Additional Information includes additional information about Trustees and is available, without charge, upon request by calling the Portfolio at 877-6LM-FUND/656-3863.

---

| | |
|:---|:---|
| **Independent Trustees†** |  |
| **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** |  |
| 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** |  |
| 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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Western Asset Variable Global High Yield Bond Portfolio 47

------

Additional information (unaudited) (cont'd)

**Information about Trustees and Officers** 

---

| | |
|:---|:---|
| **Independent Trustees† (cont'd)** |  |
| **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** |  |
| 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** |  |
| 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) |

---

48 Western Asset Variable Global High Yield Bond Portfolio

------

---

| | |
|:---|:---|
| **Independent Trustees† (cont'd)** |  |
| **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** |  |
| 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** |  |
| 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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Western Asset Variable Global High Yield Bond Portfolio 49

------

Additional information (unaudited) (cont'd)

**Information about Trustees and Officers** 

---

| | |
|:---|:---|
| **Interested Trustee** |  |
| **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** |  |
| **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** |  |
| **Ted P. Becker** |  |
| Franklin Templeton |  |
| 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) |

---

50 Western Asset Variable Global High Yield Bond Portfolio

------

---

| | |
|:---|:---|
| **Additional Officers (cont'd)** |  |
| **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 |  |
| 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 |  |
| 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) |

---

Western Asset Variable Global High Yield Bond Portfolio 51

------

Additional information (unaudited) (cont'd)

**Information about Trustees and Officers** 

---

| | |
|:---|:---|
| **Additional Officers (cont'd)** |  |
| **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 |  |
| 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 Portfolio 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. 

52 Western Asset Variable Global High Yield Bond Portfolio

------

<sup>6</sup> Mr. Olson is an "interested person" of the Portfolio, 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 Portfolio, as defined in the 1940 Act, because of her position with LMPFA and/or certain of its affiliates.

Western Asset Variable Global High Yield Bond Portfolio 53

------

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.

54 Western Asset Variable Global High Yield Bond Portfolio

------

Western Asset

Variable Global High Yield Bond Portfolio

**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

Western Asset Management Company Pte. Ltd.

**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 Variable Global High Yield Bond Portfolio** 

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

Western Asset Variable Global High Yield Bond Portfolio

Legg Mason Funds

620 Eighth Avenue, 47th Floor

New York, NY 10018

The Portfolio 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 Portfolio'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 Portfolio at 877-6LM-FUND/656-3863.

Information on how the Portfolio 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 Portfolio uses to determine how to vote proxies related to portfolio transactions are available (1) without charge, upon request, by calling the Portfolio 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 Variable Global High Yield Bond Portfolio. This report is not authorized for distribution to prospective investors in the Portfolio unless preceded or accompanied by a current prospectus.

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

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

------

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**

------

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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www.franklintempleton.com© 2023 Franklin Distributors, LLC,

**FD04117 2/23 SR23-4610** 

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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 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 $91,258 in December 31, 2021 and $91,258 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 $20,000 in December 31, 2021 and $20,000 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 Variable 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 Variable 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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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 Variable Income Trust, LMPFA and any entity controlling, controlled by, or under common control with LMPFA that provides ongoing services to Legg Mason Partners Variable 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 Variable 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 Variable 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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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

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.

------

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.](d424758dex99code.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.](d424758dex99cert.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.](d424758dex99906cert.htm)

Exhibit 99.906CERT

------

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 Variable Income Trust** | **Legg Mason Partners Variable Income Trust** |
| By: | /s/ Jane Trust |
|  | Jane Trust |
|  | Chief Executive Officer |
| Date: | February 23, 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 23, 2023 |

---

---

| | |
|:---|:---|
| By: | /s/ Christopher Berarducci |
|  | Christopher Berarducci |
|  | Principal Financial Officer |
| Date: | February 23, 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

------

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 Variable 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 23, 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 Variable 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 23, 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 Variable 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 Variable Income Trust | Legg Mason Partners Variable Income Trust |
| /s/ Jane Trust | /s/ Christopher Berarducci |
| Jane Trust | Christopher Berarducci |
| Date: February 23, 2023 | Date: February 23, 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.