# EDGAR Filing Document

**Accession Number:** 0000764624
**File Stem:** 0001193125-23-076396
**Filing Date:** 2023-3
**Character Count:** 230469
**Document Hash:** 13f1556e3692d722107431a33b1d3ed8
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-23-076396.hdr.sgml**: 20230322

**ACCESSION NUMBER**: 0001193125-23-076396

**CONFORMED SUBMISSION TYPE**: N-CSRS

**PUBLIC DOCUMENT COUNT**: 8

**CONFORMED PERIOD OF REPORT**: 20230131

**FILED AS OF DATE**: 20230322

**DATE AS OF CHANGE**: 20230322

**EFFECTIVENESS DATE**: 20230322

**FILER**: 

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

**FILING VALUES:**
- **FORM TYPE:** N-CSRS
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-04254
- **FILM NUMBER:** 23751759

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

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

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

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

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

## Series and Classes Contracts Data

### Western Asset Short Duration High Income Fund (Series ID: S000008975)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000024383 | Class A      | SHIAX           |
| C000024385 | Class C      | LWHIX           |
| C000024386 | Class I      | SHIYX           |
| C000071124 | Class R      | LWSRX           |
| C000081534 | Class C1     | SHICX           |
| C000133526 | Class IS     |  |

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

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**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

------

**FORM N-CSR** 

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**CERTIFIED SHAREHOLDER REPORT OF REGISTERED** 

**MANAGEMENT INVESTMENT COMPANIES** 

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

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

------

**620 Eighth Avenue, 47<sup>th</sup> Floor, New York, NY 10018** 

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

------

**Marc A. De Oliveira** 

**Franklin Templeton** 

**100 First Stamford Place** 

**Stamford, CT 06902** 

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

------

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

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

**Date of reporting period: January 31, 2023** 

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

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

------

##### [**Table of Contents**](#toc)
![LOGO](g422576westassetlogo.jpg)

<u>Semi-Annual Report</u>   <u>January 31, 2023</u>

## WESTERN ASSET

## SHORT DURATION

## HIGH INCOME FUND

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![LOGO](g422576g57q58.jpg)

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

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

---

| | |
|:---|:---|
| **What's inside** | |
| [Letter from the president](#tx422576_1) | II |
| [Performance review](#tx422576_2) | III |
| [Fund at a glance](#tx422576_3) | 1 |
| [Fund expenses](#tx422576_4) | 2 |
| [Schedule of investments](#tx422576_5) | 4 |
| [Statement of assets and liabilities](#tx422576_6) | 31 |
| [Statement of operations](#tx422576_7) | 33 |
| [Statements of changes in net assets](#tx422576_8) | 34 |
| [Financial highlights](#tx422576_9) | 35 |
| [Notes to financial statements](#tx422576_10) | 40 |

---

**Fund objective** 

The Fund seeks high current income.

Letter from the president

![LOGO](g422576janetrust_photo.jpg)

**Dear Shareholder,** 

We are pleased to provide the semi-annual report of Western Asset Short Duration High Income Fund for the six-month reporting period ended January 31, 2023. Please read on for Fund performance information during the Fund's reporting period.

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

• Fund prices and performance,

• Market insights and commentaries from our portfolio managers, and

• A host of educational resources.

We look forward to helping you meet your financial goals.

Sincerely,

![LOGO](g422576g12u83.jpg)

Jane Trust, CFA

President and Chief Executive Officer

February 28, 2023

II Western Asset Short Duration High Income Fund

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

For the six months ended January 31, 2023, Class A shares of Western Asset Short Duration High Income Fund, excluding sales charges, returned 3.45%. The Fund's unmanaged benchmark, the Bloomberg U.S. High Yield 1-5 Year Cash Pay 2% Constrained Index<sup>i</sup>, returned 2.75% for the same period. The Lipper Short High Yield Funds Category Average<sup>ii</sup> returned 2.45% over the same time frame.

---

| | |
|:---|:---|
| **Performance Snapshot** as of January 31, 2023<br> (unaudited) | **Performance Snapshot** as of January 31, 2023<br> (unaudited) |
| (excluding sales charges) | 6 months |
| Western Asset Short Duration High Income Fund: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 3.45% |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C | 3.07% |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C1<sup>1</sup>  | 3.20% |
| &nbsp;&nbsp;&nbsp;&nbsp; Class R | 3.26% |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I | 3.60% |
| Bloomberg U.S. High Yield 1-5 Year Cash Pay 2% Constrained Index | 2.75% |
| Lipper Short High Yield Funds Category Average | 2.45% |

---

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

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

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

**The 30-Day SEC Yields for the period ended January 31, 2023 for Class A, Class C, Class C1, Class R and Class I shares were 7.50%, 6.96%, 7.25%, 7.29% and 7.94%, respectively. The 30-Day SEC Yield, calculated pursuant to the standard SEC formula, is based on the Fund's investments over an annualized trailing 30-day period, and not on the distributions paid by the Fund, which may differ.** 

**Total Annual Operating Expenses** (unaudited)

**As of the Fund's current prospectus dated November 30, 2022, the gross total annual fund operating expense ratios for Class A, Class C, Class C1, Class R and Class I shares were 0.99%, 1.71%, 1.45%, 1.41% and 0.73%, respectively.** 

<sup>1</sup> Class C1 shares are not available for purchase by new or existing investors (except for certain retirement plan programs authorized by the Fund's distributor). Class C1 shares continue to be available for dividend reinvestment and incoming exchanges.

Western Asset Short Duration High Income Fund III

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##### [**Table of Contents**](#toc)
Performance review (cont'd)

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

**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 will not exceed 1.00% for Class A shares, 1.75% for Class C shares, 1.40% for Class R shares and 0.85% for Class I shares. These expense limitation arrangements cannot be terminated prior to December 31, 2024 without the Board of Trustees' consent. In addition, the manager has agreed to waive the Fund's management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund. This management fee waiver is not subject to the recapture provision discussed below.** 

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

As always, thank you for your confidence in our stewardship of your assets.

Sincerely,

![LOGO](g422576g12u83.jpg)

Jane Trust, CFA

President and Chief Executive Officer

February 28, 2023

*RISKS: Investments in bonds are subject to interest rate and credit risks. As interest rates rise, bond prices fall, reducing the value of the Fund's share price. The Fund invests in high yield bonds, which are rated below investment grade and carry more risk than higher rated securities. Below investment grade securities are commonly referred to as "junk bonds." Also, the Fund is subject to certain risks of overseas investing, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging 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 use of leverage may increase volatility and possibility of loss. The market values of securities or other assets will fluctuate, sometimes sharply and unpredictably, due to changes in general market conditions, overall economic trends or events, governmental actions or intervention, actions taken by the U.S. Federal Reserve or foreign central banks, market disruptions caused by trade disputes or other factors, political developments, armed conflicts, economic sanctions and* 

IV Western Asset Short Duration High Income Fund

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##### [**Table of Contents**](#toc)
*countermeasures in response to sanctions, major cybersecurity events, investor sentiment, the global and domestic effects of a pandemic, and other factors that may or may not be related to the issuer of the security or other asset. The Fund may use derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses, and have a potentially large impact on Fund performance. Asset-backed, mortgage-backed and mortgage-related securities are subject to additional risks, such as prepayment and extension risks. Please see the Fund's prospectus for a more complete discussion of these and other risks and the Fund's investment strategies.* 

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.

<sup>i</sup> The Bloomberg U.S. High Yield 1-5 Year Cash Pay 2% Constrained Index is an index that measures the market of USD-denominated, non-investment grade, fixed-rate, taxable corporate bonds. The index follows the same rules as the uncapped index but limits the exposure of each issuer to 2% of the total market value and redistributes any excess market value index-wide on a pro-rata basis. This index only allows issues with a remaining maturity of 1-5 years. Pay-in-kinds and partial pay-in-kinds are excluded. 

<sup>ii</sup> Lipper, Inc., a wholly-owned subsidiary of Refinitiv, provides independent insight on global collective investments. Returns are based on the six-month period ended January 31, 2023, including the reinvestment of all distributions, including returns of capital, if any, calculated among the 64 funds in the Fund's Lipper category, and excluding sales charges, if any. 

Western Asset Short Duration High Income Fund V

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

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

![LOGO](g422576g33w99.jpg)

† The bar graph above represents the composition of the Fund's investments as of January 31, 2023 and
July 31, 2022 and does not include derivatives, such as forward foreign currency contracts and swap contracts. The Fund is actively managed. As a result, the composition of the Fund's investments is subject to change at any time.

Western Asset Short Duration High Income Fund 2023 Semi-Annual Report 1

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

**Example** 

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

This example is based on an investment of $1,000 invested on August 1, 2022 and held for the six months ended January 31, 2023.

**Actual expenses** 

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

**Hypothetical example for comparison purposes** 

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

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

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **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 actual total return<sup>1</sup>** | **Based on hypothetical total return<sup>1</sup>** | **Based on hypothetical total return<sup>1</sup>** | **Based on hypothetical total return<sup>1</sup>** | **Based on hypothetical total return<sup>1</sup>** | **Based on hypothetical total return<sup>1</sup>** | **Based on hypothetical total return<sup>1</sup>** |
|  | Actual<br>Total Return<br>Without<br>Sales<br>Charge<sup>2</sup> | Beginning<br>Account<br>Value | Ending<br>Account<br>Value | Annualized<br>Expense<br>Ratio | Expenses<br>Paid<br> During<br> the<br>Period<sup>3</sup> |  | Hypothetical<br>Annualized<br>Total Return | Beginning<br> Account<br>Value | Ending<br>Account<br>Value | Annualized<br>Expense<br>Ratio | Expenses<br>Paid<br>During<br>the<br>Period<sup>3</sup> |
| &nbsp;&nbsp;&nbsp;Class A | 3.45% | $1000.00 | $1034.50 | 1.00% | $5.13 | Class A | 5.00% | $1000.00 | $1020.16 | 1.00% | $5.09 |
| &nbsp;&nbsp;&nbsp;Class C | 3.07 | 1000.00 | 1030.70 | 1.72 | 8.80 | Class C | 5.00 | 1000.00 | 1016.53 | 1.72 | 8.74 |
| &nbsp;&nbsp;&nbsp;Class C1 | 3.20 | 1000.00 | 1032.00 | 1.47 | 7.53 | Class C1 | 5.00 | 1000.00 | 1017.80 | 1.47 | 7.48 |
| &nbsp;&nbsp;&nbsp;Class R | 3.26 | 1000.00 | 1032.60 | 1.40 | 7.17 | Class R | 5.00 | 1000.00 | 1018.15 | 1.40 | 7.12 |
| &nbsp;&nbsp;&nbsp;Class I | 3.60 | 1000.00 | 1036.00 | 0.71 | 3.64 | Class I | 5.00 | 1000.00 | 1021.63 | 0.71 | 3.62 |

---

2 Western Asset Short Duration High Income Fund 2023 Semi-Annual Report

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

<sup>1</sup> For the six months ended January 31, 2023.

<sup>2</sup> Assumes the reinvestment of all distributions, including returns of capital, if any, at net asset value and does not reflect the deduction of the applicable sales charge with respect to Class A shares or the applicable contingent deferred sales charge ("CDSC") with respect to Class C shares and Class C1 shares. Total return is not annualized, as it may not be representative of the total return for the year. Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. 

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

Western Asset Short Duration High Income Fund 2023 Semi-Annual Report 3

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

January 31, 2023

**Western Asset Short Duration High Income Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount† | Value |  |
| **Corporate Bonds & Notes — 61.9%** |  |  |  |  |  |
| **Communication Services — 5.7%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Diversified Telecommunication Services — 0.5%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Altice France Holding SA, Senior Secured Notes | 10.500% | 5/15/27 | 2500000 | $*2151012* | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Entertainment — 1.0%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Allen Media LLC/Allen Media Co-Issuer Inc., Senior Notes | 10.500% | 2/15/28 | 1730000 | 701744 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; AMC Entertainment Holdings Inc., Secured Notes (5.000% Cash and 6.000% PIK or 10.000% Cash or 12.000% PIK) | 10.000% | 6/15/26 | 610000 | 305000 | <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; AMC Entertainment Holdings Inc., Senior Secured Notes | 7.500% | 2/15/29 | 1400000 | 815500 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Banijay Entertainment SASU, Senior Secured Notes | 5.375% | 3/1/25 | 2000000 | 1932480 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Entertainment* |  |  |  | *3754724* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Interactive Media & Services — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Match Group Holdings II LLC, Senior Notes | 5.000% | 12/15/27 | 370000 | *355200* | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Media — 2.9%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes | 5.500% | 5/1/26 | 1376000 | 1353668 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes | 4.750% | 3/1/30 | 2500000 | 2187500 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes | 4.250% | 1/15/34 | 180000 | 140584 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; DirecTV Financing LLC/DirecTV Financing Co-Obligor Inc., Senior Secured Notes | 5.875% | 8/15/27 | 1670000 | 1515158 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; DISH DBS Corp., Senior Notes | 5.875% | 11/15/24 | 2230000 | 2107350 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; DISH DBS Corp., Senior Notes | 7.750% | 7/1/26 | 2615000 | 2127237 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; DISH DBS Corp., Senior Secured Notes | 5.250% | 12/1/26 | 1340000 | 1157425 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Urban One Inc., Senior Secured Notes | 7.375% | 2/1/28 | 600000 | 546501 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Media* |  |  |  | *11135423* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Wireless Telecommunication Services — 1.2%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; CSC Holdings LLC, Senior Notes | 5.375% | 2/1/28 | 2800000 | 2366014 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CSC Holdings LLC, Senior Notes | 5.000% | 11/15/31 | 640000 | 384771 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Sprint Capital Corp., Senior Notes | 6.875% | 11/15/28 | 450000 | 482019 |  |

---

See Notes to Financial Statements.

4 Western Asset Short Duration High Income Fund 2023 Semi-Annual Report

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##### [**Table of Contents**](#toc)
**Western Asset Short Duration High Income Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount† | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Wireless Telecommunication Services — continued* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sprint LLC, Senior Notes | 7.875% | 9/15/23 | 300000 | $304792 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sprint LLC, Senior Notes | 7.125% | 6/15/24 | 1010000 | 1032737 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Wireless Telecommunication Services* |  |  |  | *4570333* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Communication Services** |  |  |  | **21966692** |  |
| **Consumer Discretionary — 15.6%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Auto Components — 0.0%††* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; American Axle & Manufacturing Inc., Senior Notes | 6.250% | 3/15/26 | 237000 | *223208* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Automobiles — 3.3%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ford Motor Credit Co. LLC, Senior Notes | 2.700% | 8/10/26 | 3300000 | 2949936 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ford Motor Credit Co. LLC, Senior Notes | 4.950% | 5/28/27 | 850000 | 812233 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ford Motor Credit Co. LLC, Senior Notes | 4.125% | 8/17/27 | 4300000 | 3972297 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ford Motor Credit Co. LLC, Senior Notes | 7.350% | 11/4/27 | 1890000 | 1986862 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ford Motor Credit Co. LLC, Senior Notes | 7.350% | 3/6/30 | 1900000 | 1996672 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; PM General Purchaser LLC, Senior Secured Notes | 9.500% | 10/1/28 | 1220000 | 935142 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Automobiles* |  |  |  | *12653142* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Distributors — 0.7%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accelerate360 Holdings LLC, Secured Notes | 8.000% | 3/1/28 | 1425000 | 1527514 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; American News Co. LLC, Secured Notes (8.500% Cash or 10.000% PIK) | 8.500% | 9/1/26 | 1151247 | 1293714 | <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Distributors* |  |  |  | *2821228* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Diversified Consumer Services — 0.8%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Adtalem Global Education Inc., Senior Secured Notes | 5.500% | 3/1/28 | 782000 | 728766 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Prime Security Services Borrower LLC/Prime Finance Inc., Senior Secured Notes | 5.750% | 4/15/26 | 2268000 | 2225553 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Diversified Consumer Services* |  |  |  | *2954319* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Hotels, Restaurants & Leisure — 9.3%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Caesars Entertainment Inc., Senior Notes | 8.125% | 7/1/27 | 2610000 | 2651982 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Carnival Corp., Secured Notes | 10.500% | 2/1/26 | 2380000 | 2492645 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Carnival Corp., Senior Notes | 7.625% | 3/1/26 | 1000000 | 911285 | <sup>(a)</sup> |

---

See Notes to Financial Statements.

Western Asset Short Duration High Income Fund 2023 Semi-Annual Report 5

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

January 31, 2023

**Western Asset Short Duration High Income Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date |  | Face<br>Amount† | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Hotels, Restaurants & Leisure — continued* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Carnival Holdings Bermuda Ltd., Senior Notes | 10.375% | 5/1/28 |  | 1130000 | $1222067 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Full House Resorts Inc., Senior Secured Notes | 8.250% | 2/15/28 |  | 2310000 | 2156847 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Las Vegas Sands Corp., Senior Notes | 3.500% | 8/18/26 |  | 2000000 | 1864522 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Melco Resorts Finance Ltd., Senior Notes | 4.875% | 6/6/25 |  | 1000000 | 945000 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Melco Resorts Finance Ltd., Senior Notes | 5.250% | 4/26/26 |  | 1565000 | 1473056 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; MGM Resorts International, Senior Notes | 5.500% | 4/15/27 |  | 1730000 | 1670698 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Mohegan Tribal Gaming Authority, Senior Notes | 13.250% | 12/15/27 |  | 1220000 | 1290065 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; NCL Corp. Ltd., Senior Notes | 3.625% | 12/15/24 |  | 520000 | 488836 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; NCL Corp. Ltd., Senior Notes | 7.750% | 2/15/29 |  | 1200000 | 1033458 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; NCL Corp. Ltd., Senior Secured Notes | 5.875% | 2/15/27 |  | 4860000 | 4525268 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; NCL Corp. Ltd., Senior Secured Notes | 8.375% | 2/1/28 |  | 470000 | 478173 | <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Royal Caribbean Cruises Ltd., Senior Notes | 5.500% | 8/31/26 |  | 1220000 | 1093427 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Royal Caribbean Cruises Ltd., Senior Notes | 11.625% | 8/15/27 |  | 2480000 | 2635000 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Sands China Ltd., Senior Notes | 4.300% | 1/8/26 |  | 400000 | 379853 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sizzling Platter LLC/Sizzling Platter Finance Corp., Senior Secured Notes | 8.500% | 11/28/25 |  | 780000 | 722396 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Sugarhouse HSP Gaming Prop Mezz LP/Sugarhouse HSP Gaming Finance Corp., Senior Secured Notes | 5.875% | 5/15/25 |  | 540000 | 506997 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Viking Cruises Ltd., Senior Notes | 6.250% | 5/15/25 |  | 1660000 | 1517674 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Viking Cruises Ltd., Senior Secured Notes | 13.000% | 5/15/25 |  | 2480000 | 2632768 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; VOC Escrow Ltd., Senior Secured Notes | 5.000% | 2/15/28 |  | 100000 | 88083 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Wynn Macau Ltd., Senior Notes | 4.875% | 10/1/24 |  | 2090000 | 2011647 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Wynn Macau Ltd., Senior Notes | 5.500% | 1/15/26 |  | 200000 | 186693 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., Senior Notes | 7.750% | 4/15/25 |  | 960000 | 965203 | <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* |  |  | *35943643* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Specialty Retail — 1.5%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Abercrombie & Fitch Management Co., Senior Secured Notes | 8.750% | 7/15/25 |  | 400000 | 404476 | <sup>(a)</sup> |

---

See Notes to Financial Statements.

6 Western Asset Short Duration High Income Fund 2023 Semi-Annual Report

------

##### [**Table of Contents**](#toc)
**Western Asset Short Duration High Income Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date |  | Face<br>Amount† | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Specialty Retail — continued* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Academy Ltd., Senior Secured Notes | 6.000% | 11/15/27 |  | 440000 | $428558 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bath & Body Works Inc., Senior Notes | 9.375% | 7/1/25 |  | 630000 | 674991 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bath & Body Works Inc., Senior Notes | 5.250% | 2/1/28 |  | 1500000 | 1417673 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gannett Holdings LLC, Senior Secured Notes | 6.000% | 11/1/26 |  | 1180000 | 914231 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Michaels Cos. Inc., Senior Notes | 7.875% | 5/1/29 |  | 380000 | 289275 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Michaels Cos. Inc., Senior Secured Notes | 5.250% | 5/1/28 |  | 530000 | 442651 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; NMG Holding Co. Inc./Neiman Marcus Group LLC, Senior Secured Notes | 7.125% | 4/1/26 |  | 540000 | 516410 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; PetSmart Inc./PetSmart Finance Corp., Senior Notes | 7.750% | 2/15/29 |  | 250000 | 246054 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Rent-A-Center Inc., Senior Notes | 6.375% | 2/15/29 |  | 390000 | 331972 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Specialty Retail* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Specialty Retail* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Specialty Retail* |  |  | *5666291* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Consumer Discretionary** |  |  |  |  | **60261831** |  |
| **Consumer Staples — 0.2%** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Beverages — 0.2%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Triton Water Holdings Inc., Senior Notes | 6.250% | 4/1/29 |  | 1130000 | **898213** | <sup>(a)</sup> |
| **Energy — 10.2%** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Energy Equipment & Services — 0.9%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Nabors Industries Ltd., Senior Notes | 7.250% | 1/15/26 |  | 1330000 | 1295593 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Sunnova Energy Corp., Senior Notes | 5.875% | 9/1/26 |  | 2550000 | 2298608 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Energy Equipment & Services* |  |  |  |  | *3594201* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Oil, Gas & Consumable Fuels — 9.3%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Berry Petroleum Co. LLC, Senior Notes | 7.000% | 2/15/26 |  | 2437000 | 2336642 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Blue Racer Midstream LLC/Blue Racer Finance Corp., Senior Notes | 7.625% | 12/15/25 |  | 1970000 | 2003421 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Blue Racer Midstream LLC/Blue Racer Finance Corp., Senior Notes | 6.625% | 7/15/26 |  | 630000 | 621558 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Chesapeake Energy Corp., Senior Notes | 5.500% | 2/1/26 |  | 300000 | 291165 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Chord Energy Corp., Senior Notes | 6.375% | 6/1/26 |  | 2720000 | 2682505 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Continental Resources Inc., Senior Notes | 4.375% | 1/15/28 |  | 1230000 | 1171323 |  |

---

See Notes to Financial Statements.

Western Asset Short Duration High Income Fund 2023 Semi-Annual Report 7

------

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

January 31, 2023

**Western Asset Short Duration High Income Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount† | Value |
| &nbsp;&nbsp;&nbsp;&nbsp; *Oil, Gas & Consumable Fuels — continued* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Crescent Energy Finance LLC, Senior Notes | 9.250% | 2/15/28 | 1260000 | $1259710 <sup>(a)(c)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Earthstone Energy Holdings LLC, Senior Notes | 8.000% | 4/15/27 | 510000 | 497954 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; EQM Midstream Partners LP, Senior Notes | 4.000% | 8/1/24 | 400000 | 387436 |
| &nbsp;&nbsp;&nbsp;&nbsp; EQM Midstream Partners LP, Senior Notes | 6.000% | 7/1/25 | 440000 | 433662 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; EQM Midstream Partners LP, Senior Notes | 4.125% | 12/1/26 | 1270000 | 1150453 |
| &nbsp;&nbsp;&nbsp;&nbsp; EQM Midstream Partners LP, Senior Notes | 7.500% | 6/1/27 | 1210000 | 1211461 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; EQM Midstream Partners LP, Senior Notes | 6.500% | 7/1/27 | 1290000 | 1268380 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; EQM Midstream Partners LP, Senior Notes | 5.500% | 7/15/28 | 240000 | 221681 |
| &nbsp;&nbsp;&nbsp;&nbsp; Holly Energy Partners LP/Holly Energy Finance Corp., Senior Notes | 6.375% | 4/15/27 | 1380000 | 1366027 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Howard Midstream Energy Partners LLC, Senior Notes | 6.750% | 1/15/27 | 1170000 | 1142131 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; MEG Energy Corp., Senior Notes | 7.125% | 2/1/27 | 2690000 | 2762724 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Neptune Energy Bondco PLC, Senior Notes | 6.625% | 5/15/25 | 720000 | 711860 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Northern Oil and Gas Inc., Senior Notes | 8.125% | 3/1/28 | 1630000 | 1625786 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Occidental Petroleum Corp., Senior Notes | 3.400% | 4/15/26 | 340000 | 322209 |
| &nbsp;&nbsp;&nbsp;&nbsp; Occidental Petroleum Corp., Senior Notes | 3.000% | 2/15/27 | 130000 | 120017 |
| &nbsp;&nbsp;&nbsp;&nbsp; Occidental Petroleum Corp., Senior Notes | 6.375% | 9/1/28 | 2500000 | 2600267 |
| &nbsp;&nbsp;&nbsp;&nbsp; Permian Resources Operating LLC, Senior Notes | 7.750% | 2/15/26 | 1200000 | 1201140 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Range Resources Corp., Senior Notes | 4.875% | 5/15/25 | 420000 | 405675 |
| &nbsp;&nbsp;&nbsp;&nbsp; Range Resources Corp., Senior Notes | 8.250% | 1/15/29 | 2000000 | 2058720 |
| &nbsp;&nbsp;&nbsp;&nbsp; ROCC Holdings LLC, Senior Notes | 9.250% | 8/15/26 | 2360000 | 2395400 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Summit Midstream Holdings LLC/Summit Midstream Finance Corp., Secured Notes | 8.500% | 10/15/26 | 840000 | 819000 <sup>(a)</sup> |

---

See Notes to Financial Statements.

8 Western Asset Short Duration High Income Fund 2023 Semi-Annual Report

------

##### [**Table of Contents**](#toc)
**Western Asset Short Duration High Income Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount† | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Oil, Gas & Consumable Fuels — continued* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Western Midstream Operating LP, Senior Notes | 3.350% | 2/1/25 | 2860000 | $2734575 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Western Midstream Operating LP, Senior Notes | 3.950% | 6/1/25 | 100000 | 95600 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Oil, Gas & Consumable Fuels* |  |  |  | *35898482* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Energy** |  |  |  | **39492683** |  |
| **Financials — 6.3%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Banks — 0.8%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank of America Corp., Junior Subordinated Notes (5.875% to 3/15/28 then 3 mo. USD LIBOR + 2.931%) | 5.875% | 3/15/28 | 690000 | 661538 | <sup>(d)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Barclays PLC, Junior Subordinated Notes (8.000% to 6/15/24 then 5 year Treasury Constant Maturity Rate + 5.672%) | 8.000% | 6/15/24 | 1850000 | 1847687 | <sup>(d)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit Agricole SA, Junior Subordinated Notes (8.125% to 12/23/25 then USD 5 year ICE Swap Rate + 6.185%) | 8.125% | 12/23/25 | 610000 | 630828 | <sup>(a)(d)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Banks* |  |  |  | *3140053* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Capital Markets — 1.0%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Coinbase Global Inc., Senior Notes | 3.375% | 10/1/28 | 2340000 | 1512927 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit Suisse Group AG, Junior Subordinated Notes (6.375% to 8/21/26 then 5 year Treasury Constant Maturity Rate + 4.822%) | 6.375% | 8/21/26 | 600000 | 487500 | <sup>(a)(d)(e)</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 | 200000 | 164030 | <sup>(a)(d)(e)</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 | 210000 | 194934 | <sup>(a)(d)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; StoneX Group Inc., Senior Secured Notes | 8.625% | 6/15/25 | 490000 | 493121 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; UBS Group AG, Junior Subordinated Notes (7.000% to 1/31/24 then USD 5 year ICE Swap Rate + 4.344%) | 7.000% | 1/31/24 | 1130000 | 1125729 | <sup>(a)(d)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Capital Markets* |  |  |  | *3978241* | |

---

See Notes to Financial Statements.

Western Asset Short Duration High Income Fund 2023 Semi-Annual Report 9

------

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

January 31, 2023

**Western Asset Short Duration High Income Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount† | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Consumer Finance — 0.3%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Midcap Financial Issuer Trust, Senior Notes | 6.500% | 5/1/28 | 1180000 | $*1039840* | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Diversified Financial Services — 1.3%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Bread Financial Holdings Inc., Senior Notes | 4.750% | 12/15/24 | 1500000 | 1363395 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Global Aircraft Leasing Co. Ltd., Senior Notes (6.500% Cash or 7.250% PIK) | 6.500% | 9/15/24 | 3814456 | 3485264 | <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Diversified Financial Services* |  |  |  | *4848659* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Insurance — 0.4%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Highlands Holdings Bond Issuer Ltd./ Highlands Holdings Bond Co-Issuer Inc., Senior Secured Notes (7.625% Cash or 8.375% PIK) | 7.625% | 10/15/25 | 1856062 | *1724272* | <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Mortgage Real Estate Investment Trusts (REITs) — 1.5%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AFC Gamma Inc., Senior Notes | 5.750% | 5/1/27 | 1010000 | 820034 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., Senior Notes | 4.250% | 2/1/27 | 870000 | 768132 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Starwood Property Trust Inc., Senior Notes | 3.750% | 12/31/24 | 2230000 | 2120590 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Starwood Property Trust Inc., Senior Notes | 3.625% | 7/15/26 | 2090000 | 1878377 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Mortgage Real Estate Investment Trusts (REITs)* |  |  |  | *5587133* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Thrifts & Mortgage Finance — 1.0%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; NMI Holdings Inc., Senior Secured Notes | 7.375% | 6/1/25 | 1190000 | 1204786 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Rocket Mortgage LLC/Rocket Mortgage Co-Issuer Inc., Senior Notes | 2.875% | 10/15/26 | 2980000 | 2660812 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Thrifts & Mortgage Finance* |  |  |  | *3865598* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Financials** |  |  |  | **24183796** |  |
| **Health Care — 4.3%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Health Care Providers & Services — 1.2%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Akumin Inc., Senior Secured Notes | 7.000% | 11/1/25 | 1310000 | 1016940 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CHS/Community Health Systems Inc., Senior Secured Notes | 8.000% | 3/15/26 | 1940000 | 1875356 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Legacy LifePoint Health LLC, Senior Secured Notes | 6.750% | 4/15/25 | 750000 | 732300 | <sup>(a)</sup> |

---

See Notes to Financial Statements.

10 Western Asset Short Duration High Income Fund 2023 Semi-Annual Report

------

##### [**Table of Contents**](#toc)
**Western Asset Short Duration High Income Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Security | Rate |  | Maturity<br>Date | Face<br>Amount† | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Health Care Providers & Services — continued* | &nbsp;&nbsp;&nbsp;&nbsp; *Health Care Providers & Services — continued* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tenet Healthcare Corp., Senior Secured Notes | 4.875 | % | 1/1/26 | 500000 | $487563 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Renal Care Inc., Senior Notes | 10.625 | % | 7/15/27 | 1980000 | 648450 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Health Care Providers & Services* |  |  |  |  | *4760609* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Pharmaceuticals — 3.1%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AdaptHealth LLC, Senior Notes | 6.125 | % | 8/1/28 | 1500000 | 1423483 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bausch Health Americas Inc., Senior Notes | 9.250 | % | 4/1/26 | 80000 | 59600 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bausch Health Cos. Inc., Senior Notes | 6.250 | % | 2/15/29 | 1820000 | 838828 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bausch Health Cos. Inc., Senior Notes | 5.250 | % | 1/30/30 | 1260000 | 554147 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bausch Health Cos. Inc., Senior Secured Notes | 5.500 | % | 11/1/25 | 1000000 | 851725 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bausch Health Cos. Inc., Senior Secured Notes | 6.125 | % | 2/1/27 | 1200000 | 820398 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Par Pharmaceutical Inc., Senior Secured Notes | 7.500 | % | 4/1/27 | 2290000 | 1794535 | \*<sup>(a)(f)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Teva Pharmaceutical Finance Netherlands III BV, Senior Notes | 7.125 | % | 1/31/25 | 860000 | 872728 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Teva Pharmaceutical Finance Netherlands III BV, Senior Notes | 4.750 | % | 5/9/27 | 4890000 | 4547700 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Pharmaceuticals* |  |  |  |  | *11763144* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Health Care** |  |  |  |  | **16523753** |  |
| **Industrials — 11.0%** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Aerospace & Defense — 1.0%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Bombardier Inc., Senior Notes | 7.875 | % | 4/15/27 | 3320000 | 3321586 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bombardier Inc., Senior Notes | 7.500 | % | 2/1/29 | 680000 | 680095 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Aerospace & Defense* |  |  |  |  | *4001681* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Airlines — 4.5%* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Air Canada, Senior Secured Notes | 3.875 | % | 8/15/26 | 1500000 | 1389536 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; American Airlines Inc., Senior Secured Notes | 11.750 | % | 7/15/25 | 3090000 | 3442739 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; American Airlines Inc./AAdvantage Loyalty IP Ltd., Senior Secured Notes | 5.750 | % | 4/20/29 | 2060000 | 1995289 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Delta Air Lines Inc., Senior Notes | 7.375 | % | 1/15/26 | 860000 | 896248 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Hawaiian Brand Intellectual Property Ltd./HawaiianMiles Loyalty Ltd., Senior Secured Notes | 5.750 | % | 1/20/26 | 3870000 | 3700668 | <sup>(a)</sup> |

---

See Notes to Financial Statements.

Western Asset Short Duration High Income Fund 2023 Semi-Annual Report 11

------

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

January 31, 2023

**Western Asset Short Duration High Income Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount† | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Airlines — continued* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd., Senior Secured Notes | 6.500% | 6/20/27 | 837000 | $846638 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd., Senior Secured Notes | 8.000% | 9/20/25 | 984000 | 1005648 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd., Senior Secured Notes | 8.000% | 9/20/25 | 1960000 | 2011538 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; United Airlines Inc., Senior Secured Notes | 4.375% | 4/15/26 | 1960000 | 1863029 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; United Airlines Pass-Through Trust | 4.875% | 1/15/26 | 376220 | 366990 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Airlines* |  |  |  | *17518323* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Commercial Services & Supplies — 2.8%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Allied Universal Holdco LLC/Allied Universal Finance Corp., Senior Secured Notes | 6.625% | 7/15/26 | 1280000 | 1233914 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Allied Universal Holdco LLC/Allied Universal Finance Corp./Atlas Luxco 4 Sarl, Senior Secured Notes | 4.625% | 6/1/28 | 1470000 | 1264310 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CoreCivic Inc., Senior Notes | 8.250% | 4/15/26 | 1940000 | 1985975 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; GEO Group Inc., Secured Notes | 10.500% | 6/30/28 | 2744000 | 2820056 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; GFL Environmental Inc., Senior Secured Notes | 5.125% | 12/15/26 | 1200000 | 1168710 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Legends Hospitality Holding Co. LLC/ Legends Hospitality Co-Issuer Inc., Senior Secured Notes | 5.000% | 2/1/26 | 2330000 | 2150427 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Commercial Services & Supplies* |  |  |  | *10623392* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Construction & Engineering — 0.6%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Brundage-Bone Concrete Pumping Holdings Inc., Secured Notes | 6.000% | 2/1/26 | 1150000 | 1097784 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Empire Communities Corp., Senior Notes | 7.000% | 12/15/25 | 1160000 | 1051534 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Construction & Engineering* |  |  |  | *2149318* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Electrical Equipment — 0.3%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Vertiv Group Corp., Senior Secured Notes | 4.125% | 11/15/28 | 1300000 | *1128979* | ** <sup>(a)</sup> |

---

See Notes to Financial Statements.

12 Western Asset Short Duration High Income Fund 2023 Semi-Annual Report

------

##### [**Table of Contents**](#toc)
**Western Asset Short Duration High Income Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount† | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Machinery — 0.6%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Granite US Holdings Corp., Senior Notes | 11.000% | 10/1/27 | 1500000 | $1586820 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; TK Elevator US Newco Inc., Senior Secured Notes | 5.250% | 7/15/27 | 830000 | 769385 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Machinery* |  |  |  | *2356205* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Road & Rail — 0.7%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; XPO Escrow Sub LLC, Senior Notes | 7.500% | 11/15/27 | 1480000 | 1522705 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; XPO Inc., Senior Notes | 6.250% | 5/1/25 | 1266000 | 1278947 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Road & Rail* |  |  |  | *2801652* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Trading Companies & Distributors — 0.5%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Alta Equipment Group Inc., Secured Notes | 5.625% | 4/15/26 | 1680000 | 1577041 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Doman Building Materials Group Ltd., Senior Notes | 5.250% | 5/15/26 | 570000 <sup>CAD</sup> | 391446 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Trading Companies & Distributors* |  |  |  | *1968487* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Industrials** |  |  |  | **42548037** |  |
| **Information Technology — 2.8%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Communications Equipment — 0.6%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; CommScope Inc., Senior Notes | 8.250% | 3/1/27 | 1030000 | 877545 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CommScope Inc., Senior Secured Notes | 4.750% | 9/1/29 | 1110000 | 925340 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CommScope Technologies LLC, Senior Notes | 6.000% | 6/15/25 | 356000 | 337549 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CommScope Technologies LLC, Senior Notes | 5.000% | 3/15/27 | 300000 | 229457 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Communications Equipment* |  |  |  | *2369891* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *IT Services — 0.7%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; CDW LLC/CDW Finance Corp., Senior Notes | 4.125% | 5/1/25 | 400000 | 387582 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sabre GLBL Inc., Senior Secured Notes | 11.250% | 12/15/27 | 1030000 | 1092444 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Shift4 Payments LLC/Shift4 Payments Finance Sub Inc., Senior Notes | 4.625% | 11/1/26 | 1180000 | 1118982 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total IT Services* |  |  |  | *2599008* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Software — 1.0%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Consensus Cloud Solutions Inc., Senior Notes | 6.000% | 10/15/26 | 1800000 | 1724171 | <sup>(a)</sup> |

---

See Notes to Financial Statements.

Western Asset Short Duration High Income Fund 2023 Semi-Annual Report 13

------

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

January 31, 2023

**Western Asset Short Duration High Income Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount† | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Software — continued* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gen Digital Inc., Senior Notes | 6.750% | 9/30/27 | 1310000 | $1329716 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Open Text Corp., Senior Secured Notes | 6.900% | 12/1/27 | 800000 | 819860 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Software* |  |  |  | *3873747* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Technology Hardware, Storage & Peripherals — 0.5%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; CA Magnum Holdings, Senior Secured Notes | 5.375% | 10/31/26 | 840000 | 783300 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Vericast Corp., Senior Secured Notes | 11.000% | 9/15/26 | 1190000 | 1294125 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Technology Hardware, Storage & Peripherals* |  |  |  | *2077425* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Information Technology** |  |  |  | **10920071** |  |
| **Materials — 3.3%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Chemicals — 0.0%††* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Anagram International Inc./Anagram Holdings LLC, Secured Notes (5.000% Cash and 5.000% PIK or 10.000% Cash or 10.000% PIK) | 10.000% | 8/15/26 | 143377 | *115383* | <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Construction Materials — 0.2%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Summit Materials LLC/Summit Materials Finance Corp., Senior Notes | 5.250% | 1/15/29 | 660000 | *620532* | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Containers & Packaging — 1.4%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; ARD Finance SA, Senior Secured Notes (6.500% Cash or 7.250% PIK) | 6.500% | 6/30/27 | 1000000 | 785920 | <sup>(a)(b)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Ardagh Metal Packaging Finance USA LLC/Ardagh Metal Packaging Finance PLC, Senior Secured Notes | 6.000% | 6/15/27 | 1630000 | 1627571 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Ardagh Metal Packaging Finance USA LLC/Ardagh Metal Packaging Finance PLC, Senior Secured Notes | 3.250% | 9/1/28 | 830000 | 729362 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Ardagh Packaging Finance PLC/ Ardagh Holdings USA Inc., Senior Notes | 5.250% | 8/15/27 | 1150000 | 943437 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Canpack SA/Canpack US LLC, Senior Notes | 3.125% | 11/1/25 | 850000 | 774775 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Pactiv LLC, Senior Notes | 8.375% | 4/15/27 | 370000 | 361554 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Containers & Packaging* |  |  |  | *5222619* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Metals & Mining — 1.6%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; First Quantum Minerals Ltd., Senior Notes | 6.500% | 3/1/24 | 790000 | 789838 | <sup>(a)</sup> |

---

See Notes to Financial Statements.

14 Western Asset Short Duration High Income Fund 2023 Semi-Annual Report

------

##### [**Table of Contents**](#toc)
**Western Asset Short Duration High Income Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount† | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Metals & Mining — continued* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; First Quantum Minerals Ltd., Senior Notes | 7.500% | 4/1/25 | 500000 | $492967 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; First Quantum Minerals Ltd., Senior Notes | 6.875% | 10/15/27 | 3823000 | 3710910 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Hudbay Minerals Inc., Senior Notes | 4.500% | 4/1/26 | 1420000 | 1310120 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Metals & Mining* |  |  |  | *6303835* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Paper & Forest Products — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Mercer International Inc., Senior Notes | 5.125% | 2/1/29 | 430000 | *368422* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Materials** |  |  |  | **12630791** |  |
| **Real Estate — 2.3%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Equity Real Estate Investment Trusts (REITs) — 1.6%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Diversified Healthcare Trust, Senior Notes | 9.750% | 6/15/25 | 784000 | 766030 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Diversified Healthcare Trust, Senior Notes | 4.750% | 2/15/28 | 430000 | 262625 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; IIP Operating Partnership LP, Senior Notes | 5.500% | 5/25/26 | 1480000 | 1290584 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; MPT Operating Partnership LP/MPT Finance Corp., Senior Notes | 5.000% | 10/15/27 | 750000 | 634920 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; RLJ Lodging Trust LP, Senior Secured Notes | 3.750% | 7/1/26 | 1900000 | 1738063 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Service Properties Trust, Senior Notes | 4.650% | 3/15/24 | 852000 | 830637 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; VICI Properties LP/VICI Note Co. Inc., Senior Notes | 3.750% | 2/15/27 | 850000 | 786395 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Equity Real Estate Investment Trusts (REITs)* |  |  |  | *6309254* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Real Estate Management & Development — 0.7%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Five Point Operating Co. LP/Five Point Capital Corp., Senior Notes | 7.875% | 11/15/25 | 1800000 | 1620355 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Forestar Group Inc., Senior Notes | 3.850% | 5/15/26 | 1010000 | 901339 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Real Estate Management & Development* |  |  |  | *2521694* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Real Estate** |  |  |  | **8830948** |  |
| **Utilities — 0.2%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Electric Utilities — 0.2%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; InterGen NV, Senior Secured Notes | 7.000% | 6/30/23 | 930000 | **930551** | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Corporate Bonds & Notes (Cost — $251,984,145)** |  |  |  | **239187366** |  |

---

See Notes to Financial Statements.

Western Asset Short Duration High Income Fund 2023 Semi-Annual Report 15

------

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

January 31, 2023

**Western Asset Short Duration High Income Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount† | Value |  |
| **Senior Loans — 19.9%** |  |  |  |  |  |
| **Communication Services — 0.6%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Media — 0.6%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; CB Poly US Holdings Inc., Initial Term Loan (1 mo. Term SOFR + 5.500%) | 10.080% | 5/18/29 | 1615950 | $1555352 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Terrier Media Buyer Inc., 2021 Refinancing Term Loan B (3 mo. USD LIBOR + 3.500%) | 8.230% | 12/17/26 | 685754 | 652255 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Communication Services** |  |  |  | **2207607** |  |
| **Consumer Discretionary — 4.5%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Auto Components — 0.7%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; First Brands Group LLC, 2021 First Lien Term Loan (3 mo. Term SOFR + 5.000%) | 10.252% | 3/30/27 | 2043600 | 2009881 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Truck Hero Inc., Initial Term Loan (1 mo. USD LIBOR + 3.750%) | 8.320% | 1/31/28 | 599325 | 540960 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Auto Components* |  |  |  | *2550841* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Diversified Consumer Services — 0.0%††* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; TruGreen LP, Second Lien Term Loan (3 mo. USD LIBOR + 8.500%) | 13.176% | 11/2/28 | 210000 | *151200* | <sup>(e)(g)(h)(i)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Hotels, Restaurants & Leisure — 1.6%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Caesars Entertainment Inc., Term Loan B |  | 1/20/30 | 1500000 | 1500540 | <sup>(j)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Equinox Holdings Inc., Term Loan B2 (3 mo. USD LIBOR + 9.000%) | 13.730% | 3/8/24 | 663000 | 533715 | <sup>(e)(g)(h)(i)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Hornblower Sub LLC, PIK Term Loan (3 mo. USD LIBOR + 4.750% Cash and 0.500% PIK) | 8.920% | 4/27/25 | 2354692 | 1596787 | <sup>(b)(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; NCL Corp. Ltd., Term Loan A3 (3 mo. Term SOFR + 2.350%) | 6.930% | 1/2/25 | 880000 | 836000 | <sup>(e)(g)(h)(i)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Pacific Bells LLC, Initial Term Loan (3 mo. Term SOFR + 4.500%) | 9.342% | 11/10/28 | 1376243 | 1312021 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; PCI Gaming Authority, Term Loan Facility B (1 mo. USD LIBOR + 2.500%) | 7.070% | 5/29/26 | 500000 | 500585 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Hotels, Restaurants & Leisure* |  |  |  | *6279648* | |

---

See Notes to Financial Statements.

16 Western Asset Short Duration High Income Fund 2023 Semi-Annual Report

------

##### [**Table of Contents**](#toc)
**Western Asset Short Duration High Income Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount† | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Leisure Products — 1.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 19th Holdings Golf LLC, Initial Term Loan (1 mo. Term SOFR + 3.100%) | 7.460% | 2/7/29 | 2935250 | $2781149 | <sup>(e)(g)(h)(i)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Hayward Industries Inc., First Lien Initial Term Loan (1 mo. USD LIBOR + 2.500%) | 7.070% | 5/30/28 | 1432950 | 1417725 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Leisure Products* |  |  |  | *4198874* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Specialty Retail — 1.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Great Outdoors Group LLC, Term Loan B2 (1 mo. USD LIBOR + 3.750%) | 8.320% | 3/6/28 | 588056 | 579823 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; PECF USS Intermediate Holding III Corp., Initial Term Loan (1 mo. USD LIBOR + 4.250%) | 8.820% | 12/15/28 | 1702800 | 1463667 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Rent-A-Center Inc., Term Loan B2 (3 mo. USD LIBOR + 3.250%) | 8.125% | 2/17/28 | 1021800 | 997532 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; RVR Dealership Holdings LLC, 2022 Term Loan (3 mo. Term SOFR + 3.900%) | 8.553% | 2/8/28 | 207983 | 188571 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Spencer Spirit IH LLC, Initial Term Loan (1 mo. USD LIBOR + 6.000%) | 10.517% | 6/19/26 | 1157198 | 1144325 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Specialty Retail* |  |  |  | *4373918* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Consumer Discretionary** |  |  |  | **17554481** |  |
| **Consumer Staples — 0.1%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Household Products — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Knight Health Holdings LLC, Term Loan B (1 mo. USD LIBOR + 1.000%) | 5.570% | 12/23/28 | 950400 | **562318** | <sup>(e)(g)(h)</sup> |
| **Financials — 1.6%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Capital Markets — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cardinal Parent Inc., First Lien Initial Term Loan (3 mo. USD LIBOR + 4.500%) | 9.230% | 11/12/27 | 641818 | *571751* | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Diversified Financial Services — 0.6%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Deerfield Dakota Holding LLC, 2021 Replacement Term Loan (1 mo. USD LIBOR + 6.750%) | 11.320% | 4/7/28 | 340000 | 321725 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Deerfield Dakota Holding LLC, First Lien Initial Dollar Term Loan (1 mo. Term SOFR + 3.750%) | 8.311% | 4/9/27 | 596939 | 578923 | <sup>(e)(g)(h)</sup> |

---

See Notes to Financial Statements.

Western Asset Short Duration High Income Fund 2023 Semi-Annual Report 17

------

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

January 31, 2023

**Western Asset Short Duration High Income Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount† | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Diversified Financial Services — continued* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Jane Street Group LLC, Dollar Term Loan (1 mo. USD LIBOR + 2.750%) | 7.320% | 1/26/28 | 1078433 | $1076498 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; UFC Holdings LLC, Term Loan B3 (3 mo. USD LIBOR + 2.750%) | 7.570% | 4/29/26 | 376367 | 374956 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Diversified Financial Services* |  |  |  | *2352102* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Insurance — 0.9%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Acrisure LLC, 2020 Term Loan B (1 mo. USD LIBOR + 3.500%) | 8.070% | 2/15/27 | 797450 | 770787 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Asurion LLC, New Term Loan B10 (3 mo. Term SOFR + 4.100%) | 8.680% | 8/18/28 | 837900 | 795678 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Asurion LLC, New Term Loan B9 (1 mo. USD LIBOR + 3.250%) | 7.820% | 7/31/27 | 864600 | 819027 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Baldwin Risk Partners LLC, Term Loan B1 (1 mo. USD LIBOR + 3.500%) | 7.959% | 10/14/27 | 1078070 | 1067968 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Insurance* |  |  |  | *3453460* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Financials** |  |  |  | **6377313** |  |
| **Health Care — 3.1%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Health Care Equipment & Supplies — 0.7%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Medline Borrower LP, Initial Dollar Term Loan (1 mo. USD LIBOR + 3.250%) | 7.820% | 10/23/28 | 2927875 | *2848369* | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Health Care Providers & Services — 1.8%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; EyeCare Partners LLC, First Lien Amendment No. 2 Term Loan (3 mo. Term SOFR + 4.500%) | 9.180% | 11/15/28 | 820000 | 699050 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; EyeCare Partners LLC, First Lien Initial Term Loan (3 mo. USD LIBOR + 3.750%) | 8.480% | 2/18/27 | 1665609 | 1399636 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Global Medical Response Inc., 2020 Term Loan (1 mo. USD LIBOR + 4.250%) | 8.651% | 10/2/25 | 1193909 | 887970 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; One Call Corp., First Lien Term Loan B (3 mo. USD LIBOR + 5.500%) | 10.375% | 4/22/27 | 2167000 | 1821634 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Sotera Health Holdings LLC, Term Loan (3 mo. USD LIBOR + 2.750%) | 7.575% | 12/11/26 | 820000 | 791817 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Renal Care Inc., First Lien Term Loan B (1 mo. USD LIBOR + 5.000%) | 9.625% | 6/26/26 | 1900011 | 1145260 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Health Care Providers & Services* |  |  |  | *6745367* | |

---

See Notes to Financial Statements.

18 Western Asset Short Duration High Income Fund 2023 Semi-Annual Report

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##### [**Table of Contents**](#toc)
**Western Asset Short Duration High Income Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount† | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Life Sciences Tools & Services — 0.2%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Precision Medicine Group LLC, Initial Term Loan (3 mo. USD LIBOR + 3.000%) | 7.730% | 11/18/27 | 775539 | $*758090* | ** <sup>(e)(g)(h)(i)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Pharmaceuticals — 0.4%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gainwell Acquisition Corp., Term Loan B (3 mo. USD LIBOR + 4.000%) | 8.730% | 10/1/27 | 980000 | 958930 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Jazz Financing Lux Sarl, Initial Dollar Term Loan (1 mo. USD LIBOR + 3.500%) | 8.070% | 5/5/28 | 538319 | 538402 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Pharmaceuticals* |  |  |  | *1497332* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Health Care** |  |  |  | **11849158** |  |
| **Industrials — 5.4%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Aerospace & Defense — 0.2%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Transdigm Inc., Term Loan F (3 mo. USD LIBOR + 2.250%) | 6.980% | 12/9/25 | 497436 | *497097* | ** <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Air Freight & Logistics — 0.4%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; WWEX Uni Topco Holdings LLC, First Lien Initial Term Loan (1 mo. USD LIBOR + 4.000%) | 8.730% | 7/26/28 | 1633500 | *1552593* | ** <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Airlines — 1.6%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Air Canada, Term Loan (3 mo. USD LIBOR + 3.500%) | 8.130% | 8/11/28 | 1880550 | 1885580 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Delta Air Lines Inc., Initial Term Loan (3 mo. USD LIBOR + 3.750%) | 8.558% | 10/20/27 | 1700500 | 1761514 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Mileage Plus Holdings LLC, Initial Term Loan (3 mo. USD LIBOR + 5.250%) | 9.996% | 6/21/27 | 729000 | 761306 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; United Airlines Inc., Term Loan B (3 mo. USD LIBOR + 3.750%) | 8.568% | 4/21/28 | 1847100 | 1850545 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Airlines* |  |  |  | *6258945* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Building Products — 1.3%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; CP Atlas Buyer Inc., Term Loan B (1 mo. USD LIBOR + 3.500%) | 8.070% | 11/23/27 | 544139 | 490180 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Hunter Douglas Holding BV, Term Loan B1 (3 mo. Term SOFR + 3.500%) | 7.859% | 2/26/29 | 2905400 | 2679331 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Quikrete Holdings Inc., Fourth Amendment Term Loan B1 (1 mo. USD LIBOR + 3.000%) | 7.570% | 3/18/29 | 1915525 | 1911387 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Building Products* |  |  |  | *5080898* | |

---

See Notes to Financial Statements.

Western Asset Short Duration High Income Fund 2023 Semi-Annual Report 19

------

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

January 31, 2023

**Western Asset Short Duration High Income Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount† | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Commercial Services & Supplies — 1.6%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; DS Parent Inc., Term Loan B (3 mo. USD LIBOR + 5.750%) | 9.920% | 12/8/28 | 1622000 | $1572934 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; LRS Holdings LLC, Term Loan B (1 mo. USD LIBOR + 4.250%) | 8.820% | 8/31/28 | 1386000 | 1365210 | <sup>(e)(g)(h)(i)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Thermostat Purchaser III Inc., Delayed Draw Term Loan |  | 8/31/28 | 353081 | 333221 | <sup>(i)(j)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Thermostat Purchaser III Inc., Initial Term Loan (3 mo. USD LIBOR + 4.500%) | 9.235% | 8/31/28 | 2274158 | 2146237 | <sup>(e)(g)(h)(i)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Verscend Holding Corp., New Term Loan B (1 mo. USD LIBOR + 4.000%) | 8.570% | 8/27/25 | 696465 | 696649 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Commercial Services & Supplies* |  |  |  | *6114251* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Machinery — 0.3%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; SPX Flow Inc., Term Loan (1 mo. Term SOFR + 4.600%) | 9.161% | 4/5/29 | 1246121 | *1202282* | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Industrials** |  |  |  | **20706066** |  |
| **Information Technology — 4.4%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Communications Equipment — 0.8%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; CommScope Inc., Initial Term Loan (1 mo. USD LIBOR + 3.250%) | 7.820% | 4/6/26 | 1931527 | 1896518 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Global Tel Link Corp., First Lien Term Loan (3 mo. USD LIBOR + 4.250%) | 9.076% | 11/29/25 | 1283088 | 1128912 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Communications Equipment* |  |  |  | *3025430* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *IT Services — 1.4%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Amentum Government Services Holdings LLC, Term Loan 3 (3 mo. Term SOFR + 4.000%) | 7.558-8.764% | 2/15/29 | 1945200 | 1922101 | <sup>(e)(g)(h)(i)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Redstone Holdco 2 LP, First Lien Initial Term Loan (3 mo. USD LIBOR + 4.750%) | 9.568% | 4/27/28 | 888750 | 724775 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Redstone Holdco 2 LP, Second Lien Initial Term Loan (3 mo. USD LIBOR + 7.750%) | 12.565% | 4/27/29 | 990000 | 590639 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; UST Global Inc., Initial Term Loan (1 mo. USD LIBOR + 3.750%) | 8.137% | 11/20/28 | 2197800 | 2182009 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total IT Services* |  |  |  | *5419524* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Software — 2.2%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cloudera Inc., Term Loan (1 mo. USD LIBOR + 3.750%) | 8.320% | 10/8/28 | 2494800 | 2405074 | <sup>(e)(g)(h)</sup> |

---

See Notes to Financial Statements.

20 Western Asset Short Duration High Income Fund 2023 Semi-Annual Report

------

##### [**Table of Contents**](#toc)
**Western Asset Short Duration High Income Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount† | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Software — continued* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; DCert Buyer Inc., First Lien Initial Term Loan (3 mo. Term SOFR + 4.000%) | 8.696% | 10/16/26 | 1818575 | $1800253 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; DCert Buyer Inc., Second Lien Initial Term Loan (3 mo. USD LIBOR + 7.000%) | 11.696% | 2/19/29 | 1450000 | 1335508 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Magenta Buyer LLC, First Lien Initial Term Loan (3 mo. USD LIBOR + 4.750%) | 9.580% | 7/27/28 | 543125 | 478143 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Magenta Buyer LLC, Second Lien Initial Term Loan (3 mo. USD LIBOR + 8.250%) | 13.080% | 7/27/29 | 2090000 | 1678970 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Peraton Corp., First Lien Term Loan B (1 mo. USD LIBOR + 3.750%) | 8.320% | 2/1/28 | 733106 | 730540 | <sup>(e)(g)(h)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Software* |  |  |  | *8428488* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Information Technology** |  |  |  | **16873442** |  |
| **Materials — 0.2%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Metals & Mining — 0.2%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Arctic Canadian Diamond Co. Ltd., Second Lien Term Loan (5.000% Cash and 12.500% PIK) | 17.500% | 12/31/27 | 938553 | **819691** | **** <sup>(b)(g)(h)(i)(k)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Senior Loans (Cost — $82,412,947)** |  |  |  | **76950076** |  |
| **Asset-Backed Securities — 7.8%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AIMCO CLO, 2015-AA DR2 (3 mo. USD LIBOR + 3.050%) | 7.842% | 10/17/34 | 1000000 | 960768 | <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Alinea CLO Ltd., 2018-1A D (3 mo. USD LIBOR + 3.100%) | 7.908% | 7/20/31 | 1000000 | 967467 | <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; American Money Management Corp. CLO Ltd., 2017-20A E (3 mo. USD LIBOR + 5.810%) | 10.602% | 4/17/29 | 900000 | 854500 | <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Ameriquest Mortgage Securities Inc., 2002-C M1 (1 mo. USD LIBOR + 2.250%) | 7.881% | 11/25/32 | 968972 | 943129 | <sup>(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Apex Credit CLO Ltd., 2022-1A D (3 mo. Term SOFR + 4.400%) | 9.053% | 4/22/33 | 250000 | 232072 | <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Ares CLO Ltd., 2015-4A CR (3 mo. USD LIBOR + 2.650%) | 7.442% | 10/15/30 | 987500 | 907977 | <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Ares CLO Ltd., 2020-55A DR (3 mo. USD LIBOR + 3.150%) | 7.942% | 7/15/34 | 1250000 | 1183799 | <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Avis Budget Rental Car Funding AESOP LLC, 2019-3A B | 2.650% | 3/20/26 | 450000 | 421033 | <sup>(a)</sup> |

---

See Notes to Financial Statements.

Western Asset Short Duration High Income Fund 2023 Semi-Annual Report 21

------

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

January 31, 2023

**Western Asset Short Duration High Income Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount† | Value |
| **Asset-Backed Securities — continued** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Bain Capital Credit CLO Ltd., 2021-4A D (3 mo. USD LIBOR + 3.100%) | 7.908% | 10/20/34 | 400000 | $379513 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Balboa Bay Loan Funding Ltd., 2020-1A ER (3 mo. USD LIBOR + 6.400%) | 11.208% | 1/20/32 | 1000000 | 935446 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Ballyrock CLO Ltd., 2022-19A D (3 mo. Term SOFR + 7.110%) | 11.749% | 4/20/35 | 1350000 | 1222429 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Bavarian Sky UK PLC, 2014-1A CR2 (3 mo. USD LIBOR + 3.630%) | 8.438% | 10/20/34 | 400000 | 353228 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BlueMountain CLO Ltd., 2016-2A DR (3 mo. USD LIBOR + 7.790%) | 12.465% | 8/20/32 | 700000 | 609237 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; BlueMountain CLO Ltd., 2021-31A E (3 mo. USD LIBOR + 6.530%) | 11.328% | 4/19/34 | 160000 | 143191 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Canyon Capital CLO Ltd., 2020-1A ER (3 mo. USD LIBOR + 6.350%) | 11.142% | 7/15/34 | 530000 | 474027 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Cathedral Lake Ltd., 2021-6A E (3 mo. USD LIBOR + 7.210%) | 12.028% | 4/25/34 | 250000 | 229229 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Cook Park CLO Ltd., 2018-1A E (3 mo. USD LIBOR + 5.400%) | 10.192% | 4/17/30 | 750000 | 619213 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Dryden CLO Ltd., 2018-64A D (3 mo. USD LIBOR + 2.650%) | 7.445% | 4/18/31 | 500000 | 463750 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Gilbert Park CLO Ltd., 2017-1A D (3 mo. USD LIBOR + 2.950%) | 7.742% | 10/15/30 | 250000 | 232529 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Goldentree Loan Management US CLO Ltd., 2018-3A D (3 mo. USD LIBOR + 2.850%) | 7.658% | 4/20/30 | 250000 | 240534 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Great Lakes CLO Ltd., 2014-1A CR (3 mo. USD LIBOR + 2.700%) | 7.492% | 10/15/29 | 900000 | 889089 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Greenwood Park CLO Ltd., 2018-1A D (3 mo. USD LIBOR + 2.500%) | 7.292% | 4/15/31 | 700000 | 636125 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Greenwood Park CLO Ltd., 2018-1A E (3 mo. USD LIBOR + 4.950%) | 9.742% | 4/15/31 | 480000 | 400548 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; GSAA Home Equity Trust, 2006-5 2A3 (1 mo. USD LIBOR + 0.540%) | 5.046% | 3/25/36 | 1750670 | 937428 <sup>(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Halsey Point CLO Ltd., 2019-1A E (3 mo. USD LIBOR + 7.700%) | 12.508% | 1/20/33 | 920000 | 889978 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Harriman Park CLO Ltd., 2020-1A ER (3 mo. USD LIBOR + 6.400%) | 11.208% | 4/20/34 | 500000 | 449820 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Magnetite Ltd., 2015-12A ER (3 mo. USD LIBOR + 5.680%) | 10.472% | 10/15/31 | 290000 | 266875 <sup>(a)(e)</sup> |

---

See Notes to Financial Statements.

22 Western Asset Short Duration High Income Fund 2023 Semi-Annual Report

------

##### [**Table of Contents**](#toc)
**Western Asset Short Duration High Income Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br>Amount† | Value |
| **Asset-Backed Securities — continued** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Magnetite Ltd., 2012-7A DR2 (3 mo. USD LIBOR + 4.500%) | 9.292% | 1/15/28 | 1250000 | $1117461 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Mercury Financial Credit Card Master Trust, 2022-1A B | 3.200% | 9/21/26 | 550000 | 488461 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Midocean Credit CLO, 2017-7A D (3 mo. USD LIBOR + 3.880%) | 8.672% | 7/15/29 | 500000 | 438978 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; MKS CLO Ltd., 2017-2A D (3 mo. USD LIBOR + 2.650%) | 7.458% | 1/20/31 | 600000 | 531272 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Morgan Stanley ABS Capital Inc. Trust, 2005-NC2 M4 (1 mo. USD LIBOR + 0.915%) | 5.421% | 3/25/35 | 597716 | 587829 <sup>(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Mountain View CLO Ltd., 2015-9A CR (3 mo. USD LIBOR + 3.120%) | 7.912% | 7/15/31 | 690000 | 592266 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; MVW LLC, 2021-1WA C | 1.940% | 1/22/41 | 545768 | 494560 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Navient Private Education Loan Trust, 2020-A A2A | 2.460% | 11/15/68 | 337044 | 313467 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Ocean Trails CLO, 2014-5A DRR (3 mo. USD LIBOR + 3.450%) | 8.265% | 10/13/31 | 510000 | 467289 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Palmer Square Loan Funding Ltd., 2022-3A C (3 mo. Term SOFR + 5.400%) | 9.405% | 4/15/31 | 830000 | 826516 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Pulsar Funding LLC, 2019-1A C (3 mo. USD LIBOR + 4.800%) | 9.608% | 1/20/33 | 500000 | 454480 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Saranac CLO Ltd., 2014-3A DR (3 mo. USD LIBOR + 3.250%) | 8.003% | 6/22/30 | 1140000 | 1013176 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Sculptor CLO Ltd., 26A E (3 mo. USD LIBOR + 7.250%) | 12.058% | 7/20/34 | 520000 | 480090 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Stratus CLO Ltd., 2022-2A E (3 mo. Term SOFR + 7.650%) | 12.289% | 7/20/30 | 1500000 | 1406142 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Structured Asset Securities Corp. Trust, 2005-SC1 1A2 | 6.655% | 5/25/31 | 1291955 | 1054689 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; THL Credit Wind River CLO Ltd., 2017-3A ER (3 mo. USD LIBOR + 7.050%) | 11.842% | 4/15/35 | 900000 | 807022 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Venture CLO Ltd., 2014-17A DRR (3 mo. USD LIBOR + 2.820%) | 7.612% | 4/15/27 | 700000 | 670743 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Venture CLO Ltd., 2014-17A ERR (3 mo. USD LIBOR + 5.740%) | 10.532% | 4/15/27 | 650000 | 535244 <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Voya CLO Ltd., 2017-3A DR (3 mo. USD LIBOR + 6.950%) | 11.758% | 4/20/34 | 300000 | 286661 <sup>(a)(e)</sup> |

---

See Notes to Financial Statements.

Western Asset Short Duration High Income Fund 2023 Semi-Annual Report 23

------

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

January 31, 2023

**Western Asset Short Duration High Income Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Security | Rate |  | Maturity<br>Date | Face<br>Amount† | Value |  |
| **Asset-Backed Securities — continued** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Voya CLO Ltd., 2020-3A DR (3 mo. USD LIBOR + 3.250%) | 8.058 | % | 10/20/34 | 500000 | $478207 | <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Whitehorse Ltd., 2018-12A D (3 mo. USD LIBOR + 3.650%) | 8.442 | % | 10/15/31 | 250000 | 234052 | <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Asset-Backed Securities (Cost — $32,276,549)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Asset-Backed Securities (Cost — $32,276,549)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Asset-Backed Securities (Cost — $32,276,549)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Asset-Backed Securities (Cost — $32,276,549)** |  | **30121539** |  |
| **Collateralized Mortgage Obligations** <sup>(l)</sup> **— 1.7%** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Banc of America Funding Trust, 2015-R4 2A1 (1 mo. USD LIBOR + 0.205%) | 4.594 | % | 2/25/37 | 602038 | 586946 | <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CSMC Trust, 2015-2R 7A2 | 3.598 | % | 8/27/36 | 2260492 | 1724780 | <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; CSMC Trust, 2019-ICE4 A (1 mo. USD LIBOR + 0.980%) | 5.439 | % | 5/15/36 | 1000000 | 996013 | <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) REMIC, Structured Agency Credit Risk Debt Notes, 2020-DNA1 B1 (1 mo. USD LIBOR + 2.300%) | 6.806 | % | 1/25/50 | 290000 | 278842 | <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) REMIC, Structured Agency Credit Risk Debt Notes, 2020-DNA5 M2 (30 Day Average SOFR + 2.800%) | 7.110 | % | 10/25/50 | 310653 | 313636 | <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) REMIC, Structured Agency Credit Risk Debt Notes, 2021-DNA5 B1 (30 Day Average SOFR + 3.050%) | 7.360 | % | 1/25/34 | 790000 | 754348 | <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) REMIC, Structured Agency Credit Risk Debt Notes, 2021-DNA5 M2 (30 Day Average SOFR + 1.650%) | 5.960 | % | 1/25/34 | 121664 | 120425 | <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Mortgage Corp. (FHLMC) Seasoned Credit Risk Transfer Trust, 2020-1 M | 4.250 | % | 8/25/59 | 960000 | 824937 | <sup>(a)(e)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; LSTAR Securities Investment Ltd., 2023-1 A1 (SOFR + 3.500%) | 7.545 | % | 1/1/28 | 900000 | 900000 | <sup>(a)(e)(k)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Collateralized Mortgage Obligations (Cost — $7,007,446)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Collateralized Mortgage Obligations (Cost — $7,007,446)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Collateralized Mortgage Obligations (Cost — $7,007,446)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Collateralized Mortgage Obligations (Cost — $7,007,446)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Collateralized Mortgage Obligations (Cost — $7,007,446)** | **6499927** |  |
| **Convertible Bonds & Notes — 1.1%** |  |  |  |  |  |  |
| **Communication Services — 0.2%** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Diversified Telecommunication Services — 0.0%††* | &nbsp;&nbsp;&nbsp;&nbsp; *Diversified Telecommunication Services — 0.0%††* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Liberty Latin America Ltd., Senior Notes | 2.000 | % | 7/15/24 | 110000 | *101337* | |

---

See Notes to Financial Statements.

24 Western Asset Short Duration High Income Fund 2023 Semi-Annual Report

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##### [**Table of Contents**](#toc)
**Western Asset Short Duration High Income Fund** 

(Percentages shown based on Fund net assets)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Security | Rate | Maturity<br>Date | Face<br> Amount† | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Media — 0.2%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; DISH Network Corp., Senior Notes | 3.375% | 8/15/26 | 1070000 | $*702768* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Communication Services** |  |  |  | **804105** |  |
| **Consumer Discretionary — 0.2%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Hotels, Restaurants & Leisure — 0.2%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; DraftKings Holdings Inc., Senior Notes | 0.000% | 3/15/28 | 1020000 | **703800** |  |
| **Financials — 0.5%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Mortgage Real Estate Investment Trusts (REITs) — 0.5%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Apollo Commercial Real Estate Finance Inc., Senior Notes | 5.375% | 10/15/23 | 610000 | 606569 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Blackstone Mortgage Trust Inc., Senior Notes | 5.500% | 3/15/27 | 420000 | 383512 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Two Harbors Investment Corp., Senior Notes | 6.250% | 1/15/26 | 990000 | 889119 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Financials** |  |  |  | **1879200** |  |
| **Industrials — 0.1%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Airlines — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Spirit Airlines Inc., Senior Notes | 1.000% | 5/15/26 | 750000 | **617625** |  |
| **Utilities — 0.1%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Independent Power and Renewable Electricity Producers — 0.1%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; NextEra Energy Partners LP, Senior Notes | 2.500% | 6/15/26 | 410000 | **392165** | **** <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Convertible Bonds & Notes (Cost — $5,097,032)** |  |  |  | **4396895** |  |
|  |  |  | Shares |  |  |
| **Preferred Stocks — 0.3%** |  |  |  |  |  |
| **Financials — 0.3%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Capital Markets — 0.3%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; B Riley Financial Inc. | 5.000% |  | 26000 | 565500 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; B Riley Financial Inc. | 6.000% |  | 22225 | 492061 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Preferred Stocks (Cost — $1,205,625)** |  |  |  | **1057561** |  |
|  |  | Maturity<br>Date | Face<br> Amount† |  |  |
| **Sovereign Bonds — 0.3%** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Argentina — 0.3%* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Argentine Republic Government International Bond, Senior Notes | 1.000% | 7/9/29 | 124419 | 42698 |  |

---

See Notes to Financial Statements.

Western Asset Short Duration High Income Fund 2023 Semi-Annual Report 25

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

January 31, 2023

**Western Asset Short Duration High Income Fund** 

(Percentages shown based on Fund 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, 0.750% to 7/9/27 then 1.750%) | 0.500% | 7/9/30 | 1820408 | $653582 |  |
| &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 | 953791 | 295500 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Sovereign Bonds (Cost — $1,698,913)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Sovereign Bonds (Cost — $1,698,913)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Sovereign Bonds (Cost — $1,698,913)** |  | **991780** |  |
|  |  |  | Shares/Units |  |  |
| **Common Stocks — 0.0%††** |  |  |  |  |  |
| **Energy — 0.0%††** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Energy Equipment & Services — 0.0%††* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; KCAD Holdings I Ltd. |  |  | 282728964 | *0* | <sup>\*(i)(k)(m)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; *Oil, Gas & Consumable Fuels — 0.0%††* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Berry Corp. |  |  | 362 | 3331 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Permian Production Partners LLC |  |  | 37916 | 24645 | <sup>\*(k)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Oil, Gas & Consumable Fuels* |  |  |  | *27976* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Energy** |  |  |  | **27976** |  |
| **Materials — 0.0%††** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Metals & Mining — 0.0%††* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Arctic Canadian Diamond Co. Ltd. |  |  | 871 | **0** | **** <sup>\*(i)(k)(m)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Common Stocks (Cost — $2,316,805)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Common Stocks (Cost — $2,316,805)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Common Stocks (Cost — $2,316,805)** |  | **27976** |  |
|  |  | 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 — $14,879) |  | 5/28/28 | 15540 | **2797** | **** \* |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Investments before Short-Term Investments (Cost — $384,014,341)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Investments before Short-Term Investments (Cost — $384,014,341)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Investments before Short-Term Investments (Cost — $384,014,341)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Investments before Short-Term Investments (Cost — $384,014,341)** | **359235917** |  |

---

See Notes to Financial Statements.

26 Western Asset Short Duration High Income Fund 2023 Semi-Annual Report

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##### [**Table of Contents**](#toc)
**Western Asset Short Duration High Income Fund** 

(Percentages shown based on Fund net assets)

---

| | | | |
|:---|:---|:---|:---|
| Security | Rate | Shares | Value |
| **Short-Term Investments — 5.1%** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Western Asset Premier Institutional Government Reserves, Premium Shares<br> (Cost — $19,514,154) | 4.283% | 19514154 | $**19514154** **** <sup>(n)(o)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Investments — 98.1% (Cost — $403,528,495)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Investments — 98.1% (Cost — $403,528,495)** | &nbsp;&nbsp;&nbsp;&nbsp; **Total Investments — 98.1% (Cost — $403,528,495)** | **378750071** |
| &nbsp;&nbsp;&nbsp;&nbsp; Other Assets in Excess of Liabilities — 1.9% |  |  | 7396437 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Net Assets — 100.0%** |  |  | $**386146508** |

---

† 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> 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>(c)</sup> Securities traded on a when-issued or delayed delivery basis.

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

<sup>(e)</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>(f)</sup> The coupon payment on this security is currently in default as of January 31, 2023.

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

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

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

<sup>(j)</sup> All or a portion of this loan is unfunded as of January 31, 2023. The interest rate for fully unfunded term loans is to be determined.

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

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

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

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

<sup>(o)</sup> In this instance, as defined in the Investment Company Act of 1940, an "Affiliated Company" represents Fund ownership of at least 5% of the outstanding voting securities of an issuer, or a company which is under common ownership or control with the Fund. At January 31, 2023, the total market value of investments in Affiliated Companies was $19,514,154 and the cost was $19,514,154 (Note 8). 

See Notes to Financial Statements.

Western Asset Short Duration High Income Fund 2023 Semi-Annual Report 27

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

January 31, 2023

**Western Asset Short Duration High Income Fund** 

---

| | |
|:---|:---|
| **Abbreviation(s) used in this schedule:** | **Abbreviation(s) used in this schedule:** |
| CAD | — Canadian Dollar |
| CLO | — Collateralized Loan Obligation |
| ICE | — Intercontinental Exchange |
| LIBOR | — London Interbank Offered Rate |
| PIK | — Payment-In-Kind |
| REMIC | — Real Estate Mortgage Investment Conduit |
| SOFR | — Secured Overnight Financing Rate |
| USD | — United States Dollar |

---

At January 31, 2023, the Fund 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) |
| EUR | 63126 | USD | 68329 | BNP Paribas SA | 4/18/23 | $629 |
| USD | 109372 | CAD | 146072 | JPMorgan Chase & Co. | 4/18/23 | (481) |
| AUD | 809439 | USD | 564392 | Morgan Stanley & Co. Inc. | 4/18/23 | 8646 |
| **Total** |  |  |  |  |  | $**8794** |

---

---

| | |
|:---|:---|
| **Abbreviation(s) used in this table:** | **Abbreviation(s) used in this table:** |
| AUD | — Australian Dollar |
| CAD | — Canadian Dollar |
| EUR | — Euro |
| USD | — United States Dollar |

---

At January 31, 2023, the Fund had the following open swap contracts:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CORPORATE ISSUES — SELL PROTECTION<sup>1</sup>** | **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CORPORATE ISSUES — SELL PROTECTION<sup>1</sup>** | **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CORPORATE ISSUES — SELL PROTECTION<sup>1</sup>** | **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CORPORATE ISSUES — SELL PROTECTION<sup>1</sup>** | **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CORPORATE ISSUES — SELL PROTECTION<sup>1</sup>** | **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CORPORATE ISSUES — SELL PROTECTION<sup>1</sup>** | **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CORPORATE ISSUES — SELL PROTECTION<sup>1</sup>** | **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CORPORATE ISSUES — SELL PROTECTION<sup>1</sup>** |
| Reference Entity | Notional<br>Amount<sup>2</sup> | Termination<br>Date | Implied<br>Credit<br>Spread at<br>January 31,<br>2023<sup>3</sup> | Periodic<br>Payments<br>Received by<br>the Fund<sup>†</sup> | Market<br>Value | Upfront<br>Premiums<br>Paid<br>(Received) | Unrealized<br>Appreciation<br> (Depreciation) |
| Ford Motor Co., 4.346%, due 12/8/26 | $1400000 | 12/20/26 | 2.743% | 5.000% quarterly | $107100 | $160239 | $(53139) |
| Occidental Petroleum Corp., 5.550%, due 3/15/26 | 1360000 | 6/20/26 | 0.843% | 1.000% quarterly | 6678 | (42312) | 48990 |
| **Total** | $**2760000** |  |  |  | $**113778** | $**117927** | $**(4149)** |

---

See Notes to Financial Statements.

28 Western Asset Short Duration High Income Fund 2023 Semi-Annual Report

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##### [**Table of Contents**](#toc)
**Western Asset Short Duration High Income Fund** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CORPORATE ISSUES — BUY PROTECTION<sup>4</sup>** | **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CORPORATE ISSUES — BUY PROTECTION<sup>4</sup>** | **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CORPORATE ISSUES — BUY PROTECTION<sup>4</sup>** | **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CORPORATE ISSUES — BUY PROTECTION<sup>4</sup>** | **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CORPORATE ISSUES — BUY PROTECTION<sup>4</sup>** | **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CORPORATE ISSUES — BUY PROTECTION<sup>4</sup>** | **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CORPORATE ISSUES — BUY PROTECTION<sup>4</sup>** | **CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CORPORATE ISSUES — BUY PROTECTION<sup>4</sup>** |
| Reference Entity | Notional<br>Amount<sup>2</sup> | Termination<br>Date | Implied<br>Credit<br>Spread at<br>January 31,<br>2023<sup>3</sup> | Periodic<br>Payments<br> Made by<br> the Fund<sup>†</sup>  | Market<br>Value | Upfront<br>Premiums<br>Paid<br>(Received) | Unrealized<br> Depreciation |
| Beazer Homes USA Inc., 6.750%, due 3/15/25 | $950000 | 12/20/27 | 5.399% | 5.000% quarterly | $14535 | $110680 | $(96145) |
| Goodyear Tire & Rubber Co., 5.000%, due 5/31/26 | 950000 | 6/20/27 | 4.056% | 5.000% quarterly | (33703) | (15073) | (18630) |
| KB Home, 6.875%, due 6/15/27 | 1338000 | 12/20/27 | 2.693% | 5.000% quarterly | (128539) | (12278) | (116261) |
| NOVA Chemicals Corp., 4.875%, due 6/1/24 | 724000 | 6/20/27 | 3.512% | 5.000% quarterly | (41210) | (15880) | (25330) |
| Xerox Corp., 3.800%, due 5/15/24 | 376000 | 6/20/27 | 3.680% | 1.000% quarterly | 36742 | 46705 | (9963) |
| **Total** | $**4338000** |  |  |  | $**(152175)** | $**114154** | $**(266329)** |

---

See Notes to Financial Statements.

Western Asset Short Duration High Income Fund 2023 Semi-Annual Report 29

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

January 31, 2023

**Western Asset Short Duration High Income Fund** 

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

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

<sup>3</sup> Implied credit spreads, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end, serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity's credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as "Defaulted" indicates a credit event has occurred for the referenced entity or obligation. 

<sup>4</sup> If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or the underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or the underlying securities comprising the referenced index. 

---

| | |
|:---|:---|
| <sup>†</sup> | Percentage shown is an annual percentage rate.  |

---

See Notes to Financial Statements.

30 Western Asset Short Duration High Income Fund 2023 Semi-Annual Report

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

January 31, 2023

---

| | | |
|:---|:---|:---|
| **Assets:** | | |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments in unaffiliated securities, at value (Cost — $384,014,341) | $359235917 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments in affiliated securities, at value (Cost — $19,514,154) | 19514154 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency, at value (Cost — $99,761) | 101844 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash | 1125303 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest receivable | 5355767 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for securities sold | 4814027 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Deposits with brokers for centrally cleared swap contracts | 1390000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for Fund shares sold | 331558 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency collateral for centrally cleared swap contracts, at value (Cost — $85,612) | 84366 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Principal paydown receivable | 62500 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends receivable from affiliated investments | 34742 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrealized appreciation on forward foreign currency contracts | 9275 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 37104 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total Assets*** | ***392096557*** | **** |
| **Liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Payable for securities purchased | 4555385 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Payable for Fund shares repurchased | 887800 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment management fee payable | 176613 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions payable | 87629 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Service and/or distribution fees payable | 66013 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrealized depreciation on forward foreign currency contracts | 481 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees payable | 365 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Payable to brokers — net variation margin on centrally cleared swap contracts | 154 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 175609 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total Liabilities*** | ***5950049*** | **** |
| **Total Net Assets** | $**386146508** |  |
| **Net Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Par value (Note 7) | $807 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Paid-in capital in excess of par value | 626563376 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributable earnings (loss) | (240417675) |  |
| **Total Net Assets** | $**386146508** |  |

---

See Notes to Financial Statements.

Western Asset Short Duration High Income Fund 2023 Semi-Annual Report 31

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##### [**Table of Contents**](#toc)
Statement of assets and liabilities (unaudited) (cont'd)

January 31, 2023

---

| | |
|:---|:---|
| **Net Assets:** | |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $265001655 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C | $11955517 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C1 | $1155609 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class R | $38602 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I | $107995125 |
| **Shares Outstanding:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 55456563 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C | 2500885 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C1 | 240141 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class R | 8092 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I | 22513690 |
| **Net Asset Value:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A (and redemption price) | $4.78 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C\* | $4.78 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C1\* | $4.81 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class R (and redemption price) | $4.77 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I (and redemption price) | $4.80 |
| **Maximum Public Offering Price Per Share:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A (based on maximum initial sales charge of 2.25%) | $4.89 |

---

\* Redemption price per share is NAV of Class C and Class C1 shares reduced by a 1.00% CDSC if shares are redeemed within one year from purchase payment (Note 2). 

See Notes to Financial Statements.

32 Western Asset Short Duration High Income Fund 2023 Semi-Annual Report

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

For the Six Months Ended January 31, 2023

---

| | | |
|:---|:---|:---|
| **Investment Income:** | | |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest | $13728173 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends from unaffiliated investments | 68663 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends from affiliated investments | 94844 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Less: Foreign taxes withheld | (3386) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total Investment Income*** | ***13888294*** | **** |
| **Expenses:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment management fee (Note 2) | 1028362 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Service and/or distribution fees (Notes 2 and 5) | 393188 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Transfer agent fees (Note 5) | 207346 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Registration fees | 47590 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Fund accounting fees | 44132 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax fees | 21815 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reports | 11016 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal fees | 7835 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees | 3968 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commitment fees (Note 9) | 1376 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 1018 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Custody fees | 295 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous expenses | 4974 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total Expenses*** | ***1772915*** | **** |
| &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) | (2723) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Net Expenses*** | ***1770192*** | **** |
| **Net Investment Income** | **12118102** |  |
| **Realized and Unrealized Gain (Loss) on Investments, Swap Contracts,**<br> **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 | (4582957) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swap contracts | 68216 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forward foreign currency contracts | 17854 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (10763) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Net Realized Loss*** | ***(4507650)*** | **** |
| &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 | 5413730 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swap contracts | (326568) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forward foreign currency contracts | 23619 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currencies | (9626) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Change in Net Unrealized Appreciation (Depreciation)*** | ***5101155*** | **** |
| **Net Gain on Investments, Swap Contracts, Forward Foreign Currency Contracts and Foreign Currency Transactions** | **593505** |  |
| **Increase in Net Assets From Operations** | $**12711607** |  |

---

See Notes to Financial Statements.

Western Asset Short Duration High Income Fund 2023 Semi-Annual Report 33

------

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| For the Six Months Ended January 31, 2023 (unaudited)<br>and the Year Ended July 31, 2022 | 2023 |  | 2022 |  |
| **Operations:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | $12118102 |  | $17483393 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized loss | (4507650) |  | (18699523) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Change in net unrealized appreciation (depreciation) | 5101155 |  | (20471673) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Increase (Decrease) in Net Assets From Operations*** | ***12711607*** | **** | ***(21687803)*** | **** |
| **Distributions to Shareholders From (Notes 1 and 6):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributable earnings | (12675364) |  | (18798508) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Decrease in Net Assets From Distributions to Shareholders*** | ***(12675364)*** | **** | ***(18798508)*** | **** |
| **Fund Share Transactions (Note 7):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net proceeds from sale of shares | 76028867 |  | 125161402 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestment of distributions | 12164412 |  | 17912599 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cost of shares repurchased | (73001981) |  | (118100305) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Increase in Net Assets From Fund Share Transactions*** | ***15191298*** | **** | ***24973696*** | **** |
|  ***Increase (Decrease) in Net Assets*** | ***15227541*** | **** | ***(15512615)*** | **** |
| **Net Assets:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 370918967 |  | 386431582 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **End of period** | $**386146508** |  | $**370918967** |  |

---

See Notes to Financial Statements.

34 Western Asset Short Duration High Income Fund 2023 Semi-Annual Report

------

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

---

| | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **For a share of each class of beneficial interest outstanding throughout each year ended July 31,<br>unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,<br>unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,<br>unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,<br>unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,<br>unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,<br>unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,<br>unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,<br>unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,<br>unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,<br>unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,<br>unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,<br>unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,<br>unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,<br>unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,<br>unless otherwise noted:** |  | | |  |
| Class A Shares<sup>1</sup> | 2023<sup>2</sup> | 2023<sup>2</sup> |  | 2022 | 2022 |  | 2021 | 2021 |  | 2020 | 2020 |  | 2019 | 2019 |  | 2018 | 2018 |  |
| **Net asset value, beginning of period** |  | $4.78 |  |  | $5.32 |  |  | $4.97 |  |  | $5.27 |  |  | $5.35 |  |  | $5.42 |  |
| **Income (loss) from operations:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | 0.15 |  |  | 0.23 |  |  | 0.23 |  |  | 0.26 |  |  | 0.28 |  |  | 0.29 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) |  | 0.01 |  |  | (0.52) |  |  | 0.36 |  |  | (0.29) |  |  | (0.07) |  |  | (0.07) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total income (loss) from operations*** | **** | ***0.16*** | **** | **** | ***(0.29)*** | **** | **** | ***0.59*** | **** | **** | ***(0.03)*** | **** | **** | ***0.21*** | **** | **** | ***0.22*** | **** |
| **Less distributions from:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | (0.16) |  |  | (0.25) |  |  | (0.24) |  |  | (0.27) |  |  | (0.29) |  |  | (0.29) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total distributions*** | **** | ***(0.16)*** | **** | **** | ***(0.25)*** | **** | **** | ***(0.24)*** | **** | **** | ***(0.27)*** | **** | **** | ***(0.29)*** | **** | **** | ***(0.29)*** | **** |
| **Net asset value, end of period** |  | $4.78 |  |  | $4.78 |  |  | $5.32 |  |  | $4.97 |  |  | $5.27 |  |  | $5.35 |  |
|  ***Total return<sup>3</sup>***  | **** | ***3.45*** | *%*** | **** | ***(5.60)*** | *%*** | **** | ***12.20*** | *%*** | **** | ***(0.39)*** | ***%<sup>4</sup>*** | **** | ***4.13*** | *%*** | **** | ***4.25*** | *%*** |
| **Net assets, end of period (millions)** |  | $265 |  |  | $265 |  |  | $287 |  |  | $264 |  |  | $290 |  |  | $265 |  |
| **Ratios to average net assets:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gross expenses |  | 1.00 | %<sup>5</sup> |  | 0.99 | % |  | 1.00 | % |  | 1.02 | % |  | 1.01 | % |  | 1.00 | % |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses<sup>6,7</sup>  |  | 1.00 | <sup>5</sup> |  | 0.99 |  |  | 1.00 |  |  | 1.00 |  |  | 1.00 |  |  | 1.00 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | 6.43 | <sup>5</sup> |  | 4.57 |  |  | 4.45 |  |  | 5.09 |  |  | 5.24 |  |  | 5.33 |  |
| **Portfolio turnover rate** |  | **21** | **%** |  | **41** | **%** |  | **88** | **%** |  | **78** | **%** |  | **73** | **%** |  | **61** | **%** |

---

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

<sup>2</sup> For the six months ended January 31, 2023 (unaudited).

<sup>3</sup> Performance figures, exclusive of sales charges, may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized. 

<sup>4</sup> The total return includes gains from settlement of security litigations. Without these gains, the total return would have been unchanged for the year ended July 31, 2020. 

<sup>5</sup> Annualized.

<sup>6</sup> Reflects fee waivers and/or expense reimbursements.

<sup>7</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 A shares did not exceed 1.00%. This expense limitation arrangement cannot be terminated prior to December 31, 2024 without the Board of Trustees' consent. In addition, the manager has agreed to waive the Fund's management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund. 

See Notes to Financial Statements.

Western Asset Short Duration High Income Fund 2023 Semi-Annual Report 35

------

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

---

| | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** |  |
| Class C Shares<sup>1</sup> | 2023<sup>2</sup> | 2023<sup>2</sup> |  | 2022 | 2022 |  | 2021 | 2021 |  | 2020 | 2020 |  | 2019 | 2019 |  | 2018 | 2018 |  |
| **Net asset value, beginning of period** |  | $4.78 |  |  | $5.32 |  |  | $4.97 |  |  | $5.27 |  |  | $5.35 |  |  | $5.42 |  |
| **Income (loss) from operations:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | 0.13 |  |  | 0.20 |  |  | 0.19 |  |  | 0.22 |  |  | 0.24 |  |  | 0.25 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) |  | 0.01 |  |  | (0.52) |  |  | 0.37 |  |  | (0.28) |  |  | (0.06) |  |  | (0.06) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total income (loss) from operations*** | **** | ***0.14*** | **** | **** | ***(0.32)*** | **** | **** | ***0.56*** | **** | **** | ***(0.06)*** | **** | **** | ***0.18*** | **** | **** | ***0.19*** | **** |
| **Less distributions from:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | (0.14) |  |  | (0.22) |  |  | (0.21) |  |  | (0.24) |  |  | (0.26) |  |  | (0.26) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total distributions*** | **** | ***(0.14)*** | **** | **** | ***(0.22)*** | **** | **** | ***(0.21)*** | **** | **** | ***(0.24)*** | **** | **** | ***(0.26)*** | **** | **** | ***(0.26)*** | **** |
| **Net asset value, end of period** |  | $4.78 |  |  | $4.78 |  |  | $5.32 |  |  | $4.97 |  |  | $5.27 |  |  | $5.35 |  |
|  ***Total return<sup>3</sup>***  | **** | ***3.07*** | *%*** | **** | ***(6.27)*** | *%*** | **** | ***11.40*** | *%*** | **** | ***(1.11)*** | ***%<sup>4</sup>***  | **** | ***3.59*** | *%*** | **** | ***3.33*** | *%*** |
| **Net assets, end of period (000s)** |  | $11956 |  |  | $13447 |  |  | $21565 |  |  | $22251 |  |  | $40405 |  |  | $50107 |  |
| **Ratios to average net assets:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gross expenses |  | 1.72 | %<sup>5</sup> |  | 1.71 | % |  | 1.71 | % |  | 1.73 | % |  | 1.71 | % |  | 1.70 | % |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses<sup>6,7</sup>  |  | 1.72 | <sup>5</sup> |  | 1.71 |  |  | 1.71 |  |  | 1.72 |  |  | 1.71 |  |  | 1.70 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | 5.68 | <sup>5</sup> |  | 3.81 |  |  | 3.74 |  |  | 4.36 |  |  | 4.52 |  |  | 4.70 |  |
| **Portfolio turnover rate** |  | **21** | **%** |  | **41** | **%** |  | **88** | **%** |  | **78** | **%** |  | **73** | **%** |  | **61** | **%** |

---

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

<sup>2</sup> For the six months ended January 31, 2023 (unaudited).

<sup>3</sup> Performance figures, exclusive of CDSC, may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized. 

<sup>4</sup> The total return includes gains from settlement of security litigations. Without these gains, the total return would have been (1.31)% for the year ended July 31, 2020. 

<sup>5</sup> Annualized.

<sup>6</sup> Reflects fee waivers and/or expense reimbursements.

<sup>7</sup> As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and expenses, to average net assets of Class C shares did not exceed 1.75%. This expense limitation arrangement cannot be terminated prior to December 31, 2024 without the Board of Trustees' consent. In addition, the manager has agreed to waive the Fund's management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund. 

See Notes to Financial Statements.

36 Western Asset Short Duration High Income Fund 2023 Semi-Annual Report

------

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

---

| | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** |  |
| Class C1 Shares<sup>1</sup> | 2023<sup>2</sup> | 2023<sup>2</sup> |  | 2022 | 2022 |  | 2021 | 2021 |  | 2020 | 2020 |  | 2019 | 2019 |  | 2018 | 2018 |  |
| **Net asset value, beginning of period** |  | $4.81 |  |  | $5.35 |  |  | $4.99 |  |  | $5.30 |  |  | $5.38 |  |  | $5.45 |  |
| **Income (loss) from operations:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | 0.14 |  |  | 0.21 |  |  | 0.21 |  |  | 0.24 |  |  | 0.25 |  |  | 0.27 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) |  | 0.01 |  |  | (0.52) |  |  | 0.37 |  |  | (0.29) |  |  | (0.06) |  |  | (0.07) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total income (loss) from operations*** | **** | ***0.15*** | **** | **** | ***(0.31)*** | **** | **** | ***0.58*** | **** | **** | ***(0.05)*** | **** | **** | ***0.19*** | **** | **** | ***0.20*** | **** |
| **Less distributions from:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | (0.15) |  |  | (0.23) |  |  | (0.22) |  |  | (0.26) |  |  | (0.27) |  |  | (0.27) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total distributions*** | **** | ***(0.15)*** | **** | **** | ***(0.23)*** | **** | **** | ***(0.22)*** | **** | **** | ***(0.26)*** | **** | **** | ***(0.27)*** | **** | **** | ***(0.27)*** | **** |
| **Net asset value, end of period** |  | $4.81 |  |  | $4.81 |  |  | $5.35 |  |  | $4.99 |  |  | $5.30 |  |  | $5.38 |  |
|  ***Total return<sup>3</sup>***  | **** | ***3.20*** | *%*** | **** | ***(5.97)*** | *%*** | **** | ***11.66*** | *%*** | **** | ***(0.71)*** | ***%<sup>4</sup>*** | **** | ***3.91*** | *%*** | **** | ***3.65*** | *%*** |
| **Net assets, end of period (000s)** |  | $1156 |  |  | $1207 |  |  | $2351 |  |  | $5161 |  |  | $13289 |  |  | $53657 |  |
| **Ratios to average net assets:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gross expenses |  | 1.47 | %<sup>5</sup> |  | 1.45 | % |  | 1.44 | % |  | 1.37 | % |  | 1.41 | % |  | 1.40 | % |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses<sup>6,7</sup>  |  | 1.47 | <sup>5</sup> |  | 1.45 |  |  | 1.43 |  |  | 1.37 |  |  | 1.41 |  |  | 1.40 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | 5.94 | <sup>5</sup> |  | 4.07 |  |  | 4.05 |  |  | 4.71 |  |  | 4.79 |  |  | 5.04 |  |
| **Portfolio turnover rate** |  | **21** | **%** |  | **41** | **%** |  | **88** | **%** |  | **78** | **%** |  | **73** | **%** |  | **61** | **%** |

---

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

<sup>2</sup> For the six months ended January 31, 2023 (unaudited).

<sup>3</sup> Performance figures, exclusive of CDSC, may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized. 

<sup>4</sup> The total return includes gains from settlement of security litigations. Without these gains, the total return would have been (0.90)% for the year ended July 31, 2020. 

<sup>5</sup> Annualized.

<sup>6</sup> Reflects fee waivers and/or expense reimbursements.

<sup>7</sup> The manager has agreed to waive the Fund's management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund.

See Notes to Financial Statements.

Western Asset Short Duration High Income Fund 2023 Semi-Annual Report 37

------

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

---

| | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** |  |
| Class R Shares<sup>1</sup> | 2023<sup>2</sup> | 2023<sup>2</sup> |  | 2022 | 2022 |  | 2021 | 2021 |  | 2020 | 2020 |  | 2019 | 2019 |  | 2018 | 2018 |  |
| **Net asset value, beginning of period** |  | $4.77 |  |  | $5.32 |  |  | $4.96 |  |  | $5.26 |  |  | $5.34 |  |  | $5.41 |  |
| **Income (loss) from operations:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | 0.14 |  |  | 0.21 |  |  | 0.21 |  |  | 0.23 |  |  | 0.25 |  |  | 0.27 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) |  | 0.01 |  |  | (0.53) |  |  | 0.38 |  |  | (0.28) |  |  | (0.06) |  |  | (0.07) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total income (loss) from operations*** | **** | ***0.15*** | **** | **** | ***(0.32)*** | **** | **** | ***0.59*** | **** | **** | ***(0.05)*** | **** | **** | ***0.19*** | **** | **** | ***0.20*** | **** |
| **Less distributions from:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | (0.15) |  |  | (0.23) |  |  | (0.23) |  |  | (0.25) |  |  | (0.27) |  |  | (0.27) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total distributions*** | **** | ***(0.15)*** | **** | **** | ***(0.23)*** | **** | **** | ***(0.23)*** | **** | **** | ***(0.25)*** | **** | **** | ***(0.27)*** | **** | **** | ***(0.27)*** | **** |
| **Net asset value, end of period** |  | $4.77 |  |  | $4.77 |  |  | $5.32 |  |  | $4.96 |  |  | $5.26 |  |  | $5.34 |  |
|  ***Total return<sup>3</sup>***  | **** | ***3.26*** | *%*** | **** | ***(6.16)*** | *%*** | **** | ***11.81*** | *%*** | **** | ***(0.60)*** | ***%<sup>4</sup>*** | **** | ***3.71*** | *%*** | **** | ***3.85*** | *%*** |
| **Net assets, end of period (000s)** |  | $39 |  |  | $37 |  |  | $147 |  |  | $119 |  |  | $109 |  |  | $64 |  |
| **Ratios to average net assets:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gross expenses |  | 1.48 | %<sup>5</sup> |  | 1.41 | % |  | 1.35 | % |  | 1.66 | % |  | 1.44 | % |  | 1.40 | % |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses<sup>6,7</sup>  |  | 1.40 | <sup>5</sup> |  | 1.40 |  |  | 1.35 |  |  | 1.40 |  |  | 1.40 |  |  | 1.40 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | 6.03 | <sup>5</sup> |  | 4.01 |  |  | 4.09 |  |  | 4.69 |  |  | 4.84 |  |  | 5.01 |  |
| **Portfolio turnover rate** |  | **21** | **%** |  | **41** | **%** |  | **88** | **%** |  | **78** | **%** |  | **73** | **%** |  | **61** | **%** |

---

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

<sup>2</sup> For the six months ended January 31, 2023 (unaudited).

<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. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized. 

<sup>4</sup> The total return includes gains from settlement of security litigations. Without these gains, the total return would have been (0.80)% for the year ended July 31, 2020. 

<sup>5</sup> Annualized.

<sup>6</sup> Reflects fee waivers and/or expense reimbursements.

<sup>7</sup> As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and expenses, to average net assets of Class R shares did not exceed 1.40%. This expense limitation arrangement cannot be terminated prior to December 31, 2024 without the Board of Trustees' consent. In addition, the manager has agreed to waive the Fund's management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund. 

See Notes to Financial Statements.

38 Western Asset Short Duration High Income Fund 2023 Semi-Annual Report

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---

| | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** | **For a share of each class of beneficial interest outstanding throughout each year ended July 31,**<br> **unless otherwise noted:** |  |
| Class I Shares<sup>1</sup> | 2023<sup>2</sup> | 2023<sup>2</sup> |  | 2022 | 2022 |  | 2021 | 2021 |  | 2020 | 2020 |  | 2019 | 2019 |  | 2018 | 2018 |  |
| **Net asset value, beginning of period** |  | $4.80 |  |  | $5.34 |  |  | $4.99 |  |  | $5.29 |  |  | $5.37 |  |  | $5.44 |  |
| **Income (loss) from operations:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | 0.16 |  |  | 0.25 |  |  | 0.24 |  |  | 0.27 |  |  | 0.29 |  |  | 0.31 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) |  | 0.01 |  |  | (0.52) |  |  | 0.37 |  |  | (0.28) |  |  | (0.06) |  |  | (0.07) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total income (loss) from operations*** | **** | ***0.17*** | **** | **** | ***(0.27)*** | **** | **** | ***0.61*** | **** | **** | ***(0.01)*** | **** | **** | ***0.23*** | **** | **** | ***0.24*** | **** |
| **Less distributions from:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | (0.17) |  |  | (0.27) |  |  | (0.26) |  |  | (0.29) |  |  | (0.31) |  |  | (0.31) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total distributions*** | **** | ***(0.17)*** | **** | **** | ***(0.27)*** | **** | **** | ***(0.26)*** | **** | **** | ***(0.29)*** | **** | **** | ***(0.31)*** | **** | **** | ***(0.31)*** | **** |
| **Net asset value, end of period** |  | $4.80 |  |  | $4.80 |  |  | $5.34 |  |  | $4.99 |  |  | $5.29 |  |  | $5.37 |  |
|  ***Total return<sup>3</sup>***  | **** | ***3.60*** | *%*** | **** | ***(5.31)*** | *%*** | **** | ***12.47*** | *%*** | **** | ***(0.11)*** | ***%<sup>4</sup>*** | **** | ***4.42*** | *%*** | **** | ***4.57*** | *%*** |
| **Net assets, end of period (000s)** |  | $107995 |  |  | $90785 |  |  | $75702 |  |  | $49856 |  |  | $64474 |  |  | $73073 |  |
| **Ratios to average net assets:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gross expenses |  | 0.71 | %<sup>5</sup> |  | 0.73 | % |  | 0.72 | % |  | 0.74 | % |  | 0.72 | % |  | 0.71 | % |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses<sup>6</sup>  |  | 0.71 | <sup>5,7</sup> |  | 0.73 | <sup>7</sup> |  | 0.72 | <sup>7</sup> |  | 0.73 | <sup>7</sup> |  | 0.72 |  |  | 0.71 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | 6.73 | <sup>5</sup> |  | 4.85 |  |  | 4.69 |  |  | 5.35 |  |  | 5.50 |  |  | 5.73 |  |
| **Portfolio turnover rate** |  | **21** | **%** |  | **41** | **%** |  | **88** | **%** |  | **78** | **%** |  | **73** | **%** |  | **61** | **%** |

---

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

<sup>2</sup> For the six months ended January 31, 2023 (unaudited).

<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. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized. 

<sup>4</sup> The total return includes gains from settlement of security litigations. Without these gains, the total return would have been unchanged for the year ended July 31, 2020. 

<sup>5</sup> Annualized.

<sup>6</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 0.85%. This expense limitation arrangement cannot be terminated prior to December 31, 2024 without the Board of Trustees' consent. In addition, the manager has agreed to waive the Fund's management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund. 

<sup>7</sup> Reflects fee waivers and/or expense reimbursements.

See Notes to Financial Statements.

Western Asset Short Duration High Income Fund 2023 Semi-Annual Report 39

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##### [**Table of Contents**](#toc)
Notes to financial statements (unaudited)

**1. Organization and significant accounting policies** 

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

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

**(a) Investment valuation.** The valuations for fixed income securities (which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and certain derivative instruments are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing services typically use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Investments in open-end funds are valued at the closing net asset value per share of each fund on the day of valuation. 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 Fund holds securities or other assets that are denominated in a foreign currency, the Fund will normally use the currency exchange rates as of 4:00 p.m. (Eastern Time). If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the manager to be unreliable, the market price may be determined by the manager using quotations from one or more broker/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved by the Fund's Board of Trustees.

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

40 Western Asset Short Duration High Income Fund 2023 Semi-Annual Report

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##### [**Table of Contents**](#toc)
among other things, conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.

The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuer's financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts' research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.

For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Trustees, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such back testing monthly and fair valuation occurrences are reported to the Board of Trustees quarterly.

The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.

GAAP establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are summarized in the three broad levels listed below:

• Level 1 — unadjusted quoted prices in active markets for identical investments

• Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates,
prepayment speeds, credit risk, etc.)

• Level 3 — significant unobservable inputs (including the Fund's own assumptions in determining the fair
value of investments)

The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

Western Asset Short Duration High Income Fund 2023 Semi-Annual Report 41

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##### [**Table of Contents**](#toc)
Notes to financial statements (unaudited) (cont'd)

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| **ASSETS** | **ASSETS** | **ASSETS** | **ASSETS** | **ASSETS** |
| Description | Quoted Prices<br>(Level 1) | Other Significant<br>Observable Inputs<br>(Level 2) | Significant<br>Unobservable<br>Inputs<br>(Level 3) | Total |
| Long-Term Investments†: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Corporate Bonds & Notes |  | $239187366 |  | $239187366 |
| &nbsp;&nbsp;&nbsp;&nbsp; Senior Loans: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consumer Discretionary |  | 13252417 | $4302064 | 17554481 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Health Care |  | 11091068 | 758090 | 11849158 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Industrials |  | 16861398 | 3844668 | 20706066 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Information Technology |  | 14951341 | 1922101 | 16873442 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Materials |  |  | 819691 | 819691 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Senior Loans |  | 9147238 |  | 9147238 |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset-Backed Securities |  | 30121539 |  | 30121539 |
| &nbsp;&nbsp;&nbsp;&nbsp; Collateralized Mortgage Obligations |  | 6499927 |  | 6499927 |
| &nbsp;&nbsp;&nbsp;&nbsp; Convertible Bonds & Notes |  | 4396895 |  | 4396895 |
| &nbsp;&nbsp;&nbsp;&nbsp; Preferred Stocks | $1057561 |  |  | 1057561 |
| &nbsp;&nbsp;&nbsp;&nbsp; Sovereign Bonds |  | 991780 |  | 991780 |
| &nbsp;&nbsp;&nbsp;&nbsp; Common Stocks: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Energy | 3331 | 24645 | 0 \* | 27976 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Materials |  |  | 0 \* | 0 \* |
| &nbsp;&nbsp;&nbsp;&nbsp; Warrants | 2797 |  |  | 2797 |
| Total Long-Term Investments | 1063689 | 346525614 | 11646614 | 359235917 |
| Short-Term Investments† | 19514154 |  |  | 19514154 |
| **Total Investments** | $**20577843** | $**346525614** | $**11646614** | $**378750071** |
| Other Financial Instruments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Forward Foreign Currency Contracts†† |  | $9275 |  | $9275 |
| &nbsp;&nbsp;&nbsp;&nbsp; Centrally Cleared Credit Default Swaps on Corporate Issues — Sell Protection†† |  | 48990 |  | 48990 |
| **Total Other Financial Instruments** | **—** | $**58265** | **—** | $**58265** |
| **Total** | $**20577843** | $**346583879** | $**11646614** | $**378808336** |

---

42 Western Asset Short Duration High Income Fund 2023 Semi-Annual Report

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---

| | | | | |
|:---|:---|:---|:---|:---|
| **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; Forward Foreign Currency Contracts†† |  | $481 |  | $481 |
| &nbsp;&nbsp;&nbsp;&nbsp; Centrally Cleared Credit Default Swaps on Corporate Issues — Sell Protection†† |  | 53139 |  | 53139 |
| &nbsp;&nbsp;&nbsp;&nbsp; Centrally Cleared Credit Default Swaps on Corporate Issues — Buy Protection†† |  | 266329 |  | 266329 |
| **Total** |  | $**319949** |  | $**319949** |

---

† See Schedule of Investments for additional detailed categorizations.

\* Amount represents less than $1. 

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

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Investments in Securities | Balance as<br>of July 31,<br>2022 | Accrued<br>premiums/<br>discounts | Realized<br>gain (loss)<sup>1</sup> | Change in<br>unrealized<br>appreciation<br>(depreciation)<sup>2</sup> | Purchases |
| **Senior Loans:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Consumer Discretionary | $3859401 | $1543 | $(2388) | $19575 | $834900 |
| &nbsp;&nbsp;&nbsp;&nbsp; Financials | 2777724 | 1205 | (6638) | 68578 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Health Care | 741551 | 766 | 31 | 18733 | 34394 |
| &nbsp;&nbsp;&nbsp;&nbsp; Industrials | 3804671 | 1039 | 86 | 57564 | 41447 |
| &nbsp;&nbsp;&nbsp;&nbsp; Information Technology | 2646864 | 7968 | 11993 | 57121 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Materials | 760869 |  |  | 1911 | 56911 |
| **Common Stocks:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Energy | 24645 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Materials | 0 \* |  |  |  |  |
| **Total** | $**14615725** | $**12521** | $**3084** | $**223482** | $**967652** |

---

Western Asset Short Duration High Income Fund 2023 Semi-Annual Report 43

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Notes to financial statements (unaudited) (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Investments in Securities (cont'd) | Sales | Transfers<br>into<br> Level 3<sup>3</sup>  | Transfers<br>out of<br> Level 3<sup>4</sup>  | Balance<br> as of<br>January 31, 2023 | Net change in<br>unrealized<br>appreciation<br>(depreciation)<br>for investments<br>in securities<br>still held at<br> January 31, 2023<sup>2</sup> |
| **Senior Loans:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Consumer Discretionary | $(944682) | $533715 |  | $4302064 | $(7191) |
| &nbsp;&nbsp;&nbsp;&nbsp; Financials | (2840869) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Health Care | (37385) |  |  | 758090 | 17626 |
| &nbsp;&nbsp;&nbsp;&nbsp; Industrials | (60139) |  |  | 3844668 | 57564 |
| &nbsp;&nbsp;&nbsp;&nbsp; Information Technology | (827428) | 1922101 | $(1896518) | 1922101 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Materials |  |  |  | 819691 | 1911 |
| **Common Stocks:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Energy |  |  | (24645) | 0 \* |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Materials |  |  |  | 0 \* |  |
| **Total** | $**(4710503)** | $**2455816** | $**(1921163)** | $**11646614** | $**69910** |

---

<sup>\*</sup> Amount represents less than $1. 

<sup>1</sup> This amount is included in net realized gain (loss) from investment transactions in the accompanying Statement of Operations. 

<sup>2</sup> This amount is included in the change in net unrealized appreciation (depreciation) in the accompanying Statement of Operations. Change in unrealized appreciation (depreciation) includes net unrealized appreciation (depreciation) resulting from changes in investment values during the reporting period and the reversal of previously recorded unrealized appreciation (depreciation) when gains or losses are realized. 

<sup>3</sup> Transferred into Level 3 as a result of the unavailability of a quoted price in an active market for an identical investment or the unavailability of other significant observable inputs in the valuation obtained from independent third party pricing services or broker/dealer quotations. 

<sup>4</sup> Transferred out of Level 3 as a result of the availability of a quoted price in an active market for an identical investment or the availability of other significant observable inputs.

**(b) Forward foreign currency contracts.** The Fund 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 Fund 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 Fund 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.

44 Western Asset Short Duration High Income Fund 2023 Semi-Annual Report

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Forward foreign currency contracts involve elements of market risk in excess of the amounts reflected on the Statement of Assets and Liabilities. The Fund 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.

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

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

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

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

The Fund's maximum exposure in the event of a defined credit event on a credit default swap to sell protection is the notional amount. As of January 31, 2023, the total notional value of all credit default swaps to sell protection was $2,760,000. This amount would be offset by the value of the swap's reference entity, upfront premiums received on the swap and any amounts received from the settlement of a credit default swap where the Fund bought protection for the same referenced security/entity.

For average notional amounts of swaps held during the six months ended January 31, 2023, see Note 4.

Western Asset Short Duration High Income Fund 2023 Semi-Annual Report 45

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Notes to financial statements (unaudited) (cont'd)

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

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

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

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

Entering into a CDS agreement involves, to varying degrees, elements of credit, market and documentation risk in excess of the related amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these

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agreements, that the counterparty to the agreement may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreement, and that there will be unfavorable changes in net interest rates.

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

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

**(e) Unfunded loan commitments.** The Fund may enter into certain credit agreements where all or a portion of the total amount committed may be unfunded. The Fund is obligated to fund these commitments at the borrower's discretion. The commitments are disclosed in the accompanying Schedule of Investments. At January 31, 2023, the Fund had sufficient cash and/or securities to cover these commitments.

**(f) Securities traded on a when-issued and delayed delivery basis.** The Fund may trade securities on a when-issued or delayed delivery basis. In when-issued and delayed delivery transactions, the securities are purchased or sold by the Fund with payment and delivery taking place in the future in order to secure what is considered to be an advantageous price and yield to the Fund at the time of entering into the transaction.

Purchasing such securities involves risk of loss if the value of the securities declines prior to settlement. These securities are subject to market fluctuations and their current value is determined in the same manner as for other securities.

**(g) 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 Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates on investments from the fluctuations arising from 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

Western Asset Short Duration High Income Fund 2023 Semi-Annual Report 47

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Notes to financial statements (unaudited) (cont'd)

recorded on the Fund'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.

**(h) Credit and market risk.** The Fund 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 Fund'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 Fund. The Fund's investments in non-U.S. dollar denominated securities may also result in foreign currency losses caused by devaluations and exchange rate fluctuations.

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

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

**(j) Counterparty risk and credit-risk-related contingent features of derivative instruments.** The Fund may invest in certain securities or engage in other transactions where the Fund is exposed to counterparty credit risk in addition to broader market risks. The Fund may invest in securities of issuers, which may also be considered counterparties as trading partners in other transactions. This may increase the risk of loss in the event of default or bankruptcy by the counterparty or if the counterparty otherwise fails to meet its contractual obligations. The Fund's subadviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its

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assessment and (iii) requiring collateral from the counterparty for certain transactions. Market events and changes in overall economic conditions may impact the assessment of such counterparty risk by the subadviser. In addition, declines in the values of underlying collateral received may expose the Fund to increased risk of loss.

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

The Fund has entered into master agreements, such as an International Swaps and Derivatives Association, Inc. Master Agreement ("ISDA Master Agreement") or similar agreement, with certain of its derivative counterparties that govern over-the-counter ("OTC") derivatives and provide for general obligations, representations, agreements, collateral posting terms, netting provisions in the event of default or termination and credit related contingent features. The credit related contingent features include, but are not limited to, a percentage decrease in the Fund's net assets or net asset value per share over a specified period of time. If these credit related contingent features were triggered, the derivatives counterparty could terminate the positions and demand payment or require additional collateral.

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

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

As of January 31, 2023, the Fund held forward foreign currency contracts with credit related contingent features which had a liability position of $481. If a contingent feature in the master agreements would have been triggered, the Fund would have been required to pay this amount to its derivatives counterparties.

**(k) Security transactions and investment income.** Security transactions are accounted for on a trade date basis. Interest income (including interest income from payment-in-kind securities), adjusted for amortization of premium and accretion of discount, is recorded on the accrual basis. Paydown gains and losses on mortgage- and asset-backed securities are

Western Asset Short Duration High Income Fund 2023 Semi-Annual Report 49

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Notes to financial statements (unaudited) (cont'd)

recorded as adjustments to interest income. Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities. Foreign dividend income is recorded on the ex-dividend date or as soon as practicable after the Fund determines the existence of a dividend declaration after exercising reasonable due diligence. The cost of investments sold is determined by use of the specific identification method. To the extent any issuer defaults or a credit event occurs that impacts the issuer, the Fund may halt any additional interest income accruals and consider the realizability of interest accrued up to the date of default or credit event.

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

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

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

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

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

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

**(p) 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.

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

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

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

Under the investment management agreement, the Fund pays an investment management fee, calculated daily and paid monthly, at an annual rate of 0.55% of the Fund's average daily net assets.

LMPFA provides administrative and certain oversight services to the Fund. LMPFA delegates to the subadviser the day-to-day portfolio management of the Fund. 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 Fund. In turn, Western Asset pays Western Asset London a monthly subadvisory fee in an amount equal to 100% of the management fee paid to Western Asset on the assets that Western Asset allocates to Western Asset London to manage.

As a result of expense limitation arrangements between the Fund and LMPFA, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and expenses, to average net assets of Class A, Class C, Class R and Class I shares did not exceed 1.00%, 1.75%, 1.40% and 0.85%, 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 Fund's management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund (the "affiliated money market fund waiver"). The affiliated money market fund waiver is not subject to the recapture provision discussed below.

During the six months ended January 31, 2023, fees waived and/or expenses reimbursed amounted to $2,723, which included an affiliated money market fund waiver of $2,703.

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

Pursuant to these arrangements, at January 31, 2023, the Fund had remaining fee waivers and/or expense reimbursements subject to recapture by LMPFA and respective dates of expiration as follows:

---

| | |
|:---|:---|
| | Class R |
| Expires July 31, 2024 | $8 |
| Expires July 31, 2025 | 16 |
| **Total fee waivers/expense reimbursements subject to recapture** | $**24** |

---

For the six months ended January 31, 2023, LMPFA did not recapture any fees.

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

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Notes to financial statements (unaudited) (cont'd)

Franklin Distributors, LLC ("Franklin Distributors") serves as the Fund's sole and exclusive distributor. Franklin Distributors is an indirect, wholly-owned broker-dealer subsidiary of Franklin Resources.

There is a maximum initial sales charge of 2.25% for Class A shares. Class C shares and Class C1 shares have a 1.00% CDSC, which applies if redemption occurs within 12 months from purchase payment. In certain cases, Class A shares have a 0.50% CDSC, which applies if redemption occurs within 18 months from purchase payment. This CDSC only applies to those purchases of Class A shares, which, when combined with current holdings of other shares of funds sold by Franklin Distributors, equal or exceed $500,000 in the aggregate. These purchases do not incur an initial sales charge.

For the six months ended January 31, 2023, sales charges retained by and CDSCs paid to Franklin Distributors and its affiliates, if any, were as follows:

---

| | |
|:---|:---|
| | Class A |
| Sales charges | $13930 |
| CDSCs | 732 |

---

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 six months ended January 31, 2023, 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 | $77703696 |  |
| Sales | 75641630 | $85966 |

---

At January 31, 2023, the aggregate cost of investments and the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Cost/Premiums<br>Paid (Received) | Gross<br>Unrealized<br>Appreciation | Gross<br>Unrealized<br>Depreciation | Net<br>Unrealized<br>Appreciation<br>(Depreciation) |
| Securities | $403528495 | $3721227 | $(28499651) | $(24778424) |
| Forward foreign currency contracts |  | 9275 | (481) | 8794 |
| Swap contracts | 232081 | 48990 | (319468) | (270478) |

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**4. Derivative instruments and hedging activities** 

Below is a table, grouped by derivative type, that provides information about the fair value and the location of derivatives within the Statement of Assets and Liabilities at January 31, 2023.

---

| | | | |
|:---|:---|:---|:---|
| **ASSET DERIVATIVES<sup>1</sup>** | **ASSET DERIVATIVES<sup>1</sup>** | **ASSET DERIVATIVES<sup>1</sup>** | **ASSET DERIVATIVES<sup>1</sup>** |
|  | Foreign<br>Exchange Risk | Credit<br>Risk | Total |
| Forward foreign currency contracts | $9275 |  | $9275 |
| Centrally cleared swap contracts<sup>2</sup> |  | $48990 | 48990 |
| **Total** | $**9275** | $**48990** | $**58265** |
| **LIABILITY DERIVATIVES<sup>1</sup>** | **LIABILITY DERIVATIVES<sup>1</sup>** | **LIABILITY DERIVATIVES<sup>1</sup>** | **LIABILITY DERIVATIVES<sup>1</sup>** |
|  | Foreign<br>Exchange Risk | Credit<br>Risk | Total |
| Forward foreign currency contracts | $481 |  | $481 |
| Centrally cleared swap contracts<sup>2</sup> |  | $319468 | 319468 |
| **Total** | $**481** | $**319468** | $**319949** |

---

<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 centrally cleared swap contracts as reported in the Schedule of Investments. Only net variation margin is reported within the receivables and/or payables on the Statement of Assets and Liabilities.

The following tables provide information about the effect of derivatives and hedging activities on the Fund's Statement of Operations for the six months ended January 31, 2023. The first table provides additional detail about the amounts and sources of gains (losses) realized on derivatives during the period. The second table provides additional information about the change in net unrealized appreciation (depreciation) resulting from the Fund's derivatives and hedging activities during the period.

---

| | | | |
|:---|:---|:---|:---|
| **AMOUNT OF NET REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED** | **AMOUNT OF NET REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED** | **AMOUNT OF NET REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED** | **AMOUNT OF NET REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED** |
|  | Foreign<br>Exchange Risk | Credit<br>Risk | Total |
| Swap contracts |  | $68216 | $68216 |
| Forward foreign currency contracts | $17854 |  | 17854 |
| **Total** | $**17854** | $**68216** | $**86070** |
| **CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED** | **CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED** | **CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED** | **CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED** |
|  | Foreign<br>Exchange Risk | Credit<br>Risk | Total |
| Swap contracts |  | $(326568) | $(326568) |
| Forward foreign currency contracts | $23619 |  | 23619 |
| **Total** | $**23619** | $**(326568)** | $**(302949)** |

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Notes to financial statements (unaudited) (cont'd)

During the six months ended January 31, 2023, the volume of derivative activity for the Fund was as follows:

---

| | |
|:---|:---|
| | Average Market<br> Value |
| Forward foreign currency contracts (to buy) | $926470 |
| Forward foreign currency contracts (to sell) | 1091514 |
|  | Average Notional<br>Balance |
| Credit default swap contracts (buy protection) | $5118714 |
| Credit default swap contracts (sell protection) | 2760000 |

---

The following table presents the Fund'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 Fund as of January 31, 2023.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| 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> |
| BNP Paribas SA | $629 |  | $629 |  | $629 |
| JPMorgan Chase & Co. |  | $(481) | (481) |  | (481) |
| Morgan Stanley & Co. Inc. | 8646 |  | 8646 |  | 8646 |
| **Total** | $**9275** | $**(481)** | $**8794** |  | $**8794** |

---

<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. 

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

The Fund has adopted a Rule 12b-1 shareholder services and distribution plan and under that plan the Fund pays service and/or distribution fees with respect to its Class A, Class C, Class C1 and Class R shares calculated at the annual rate of 0.25%, 1.00%, 0.70% and 0.50% of the average daily net assets of each class, respectively. Service and/or distribution fees are accrued daily and paid monthly.

For the six months ended January 31, 2023, class specific expenses were as follows:

---

| | | | |
|:---|:---|:---|:---|
| | Service and/or<br>Distribution Fees | | Transfer Agent<br>Fees |
| Class A | $326557 | <sup>†</sup> | $158278 |
| Class C | 62440 |  | 6028 |
| Class C1 | 4097 |  | 857 |
| Class R | 94 |  | 68 |
| Class I |  |  | 42115 |
| **Total** | $**393188** |  | $**207346** |

---

† Amount shown is exclusive of expense reimbursements. For the six months ended January 31, 2023, the service and/or
distribution fees reimbursed amounted to $4 for Class A shares.

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For the six months ended January 31, 2023, waivers and/or expense reimbursements by class were as follows:

---

| | |
|:---|:---|
| | Waivers/Expense<br>Reimbursements |
| Class A | $1881 |
| Class C | 89 |
| Class C1 | 8 |
| Class R | 16 |
| Class I | 729 |
| **Total** | $**2723** |

---

**6. Distributions to shareholders by class** 

---

| | | |
|:---|:---|:---|
| | Six Months Ended<br>January 31, 2023 | Year Ended<br>July 31, 2022 |
| **Net Investment Income:** |  |  |
| Class A | $8784883 | $13876846 |
| Class C | 372895 | 724255 |
| Class C1 | 36511 | 63911 |
| Class R | 1192 | 2676 |
| Class I | 3479883 | 4130820 |
| **Total** | $**12675364** | $**18798508** |

---

**7. Shares of beneficial interest** 

At January 31, 2023, the Trust had an unlimited number of shares of beneficial interest authorized with a par value of $0.00001 per share. The Fund has the ability to issue multiple classes of shares. Each class of shares represents an identical interest and has the same rights, except that each class bears certain direct expenses, including those specifically related to the distribution of its shares.

Transactions in shares of each class were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Six Months Ended<br>January 31, 2023 | Six Months Ended<br>January 31, 2023 | Year Ended<br>July 31, 2022 | Year Ended<br>July 31, 2022 |
| | Shares | Amount | Shares | Amount |
| **Class A** |  |  |  |  |
| Shares sold | 5592482 | $26356695 | 12566115 | $64862392 |
| Shares issued on reinvestment | 1826613 | 8549884 | 2637178 | 13415726 |
| Shares repurchased | (7528451) | (35359324) | (13528356) | (69464745) |
| **Net increase (decrease)** | **(109356)** | $**(452745)** | **1674937** | $**8813373** |
| **Class C** |  |  |  |  |
| Shares sold | 272112 | $1283507 | 540913 | $2806009 |
| Shares issued on reinvestment | 72954 | 341682 | 131117 | 669735 |
| Shares repurchased | (658007) | (3098087) | (1911397) | (9810661) |
| **Net decrease** | **(312941)** | $**(1472898)** | **(1239367)** | $**(6334917)** |

---

Western Asset Short Duration High Income Fund 2023 Semi-Annual Report 55

------

##### [**Table of Contents**](#toc)
Notes to financial statements (unaudited) (cont'd)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Six Months Ended<br>January 31, 2023 | Six Months Ended<br>January 31, 2023 | Year Ended<br>July 31, 2022 | Year Ended<br>July 31, 2022 |
| | Shares | Amount | Shares | Amount |
| **Class C1** |  |  |  |  |
| Shares sold | 673 | $3177 | 11054 | $58369 |
| Shares issued on reinvestment | 7717 | 36392 | 12355 | 63478 |
| Shares repurchased | (19150) | (91392) | (212086) | (1124545) |
| **Net decrease** | **(10760)** | $**(51823)** | **(188677)** | $**(1002698)** |
| **Class R** |  |  |  |  |
| Shares sold | 94 | $437 | 2014 | $10629 |
| Shares issued on reinvestment | 190 | 891 | 411 | 2121 |
| Shares repurchased | (2) | (7) | (22337) | (118449) |
| **Net increase (decrease)** | **282** | $**1321** | **(19912)** | $**(105699)** |
| **Class I** |  |  |  |  |
| Shares sold | 10197388 | $48385051 | 11379326 | $57424003 |
| Shares issued on reinvestment | 687979 | 3235563 | 736911 | 3761539 |
| Shares repurchased | (7303551) | (34453171) | (7358613) | (37581905) |
| **Net increase** | **3581816** | $**17167443** | **4757624** | $**23603637** |

---

**8. Transactions with affiliated company** 

As defined by the 1940 Act, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control with the Fund. The following company was considered an affiliated company for all or some portion of the six months ended January 31, 2023. The following transactions were effected in such company for the six months ended January 31, 2023.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | Purchased | Purchased | Sold | Sold |
| | Affiliate<br>Value at<br>July 31,<br>2022 | Cost | Shares | Proceeds | Shares |
| Western Asset Premier Institutional Government Reserves, Premium Shares | $11474018 | $74097789 | 74097789 | $66057653 | 66057653 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| (cont'd) | Realized<br>Gain (Loss) | Dividend<br>Income | Net Increase<br>(Decrease) in<br>Unrealized<br>Appreciation<br>(Depreciation) | Affiliate<br>Value at<br>January 31,<br>2023 |
| Western Asset Premier Institutional Government Reserves, Premium<br> Shares |  | $94844 |  | $19514154 |

---

56 Western Asset Short Duration High Income Fund 2023 Semi-Annual Report

------

##### [**Table of Contents**](#toc)
**9. Redemption facility** 

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

Under the terms of the Global Credit Facility, the Fund shall, in addition to interest charged on any borrowings made by the Fund and other costs incurred by the Fund, pay its share of fees and expenses incurred in connection with the implementation and maintenance of the Global Credit Facility, based upon its relative share of the aggregate net assets of all the Borrowers, including an annual commitment fee of 0.15% based upon the unused portion of the Global Credit Facility. These fees are reflected in the Statement of Operations. The Fund did not utilize the Global Credit Facility during the six months ended January 31, 2023.

**10. Deferred capital losses** 

As of July 31, 2022, the Fund had deferred capital losses of $208,750,046, which have no expiration date, that will be available to offset future taxable capital gains.

**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.

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

\* \* \*

The Fund's investments, payment obligations, and financing terms may be based on floating rates, such as the London Interbank Offered Rate, or "LIBOR," which is the offered rate for

Western Asset Short Duration High Income Fund 2023 Semi-Annual Report 57

------

##### [**Table of Contents**](#toc)
Notes to financial statements (unaudited) (cont'd)

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

\* \* \*

On February 24, 2022, Russia engaged in military actions in the sovereign territory of Ukraine. The current political and financial uncertainty surrounding Russia and Ukraine may increase market volatility and the economic risk of investing in securities in these countries and may also cause uncertainty for the global economy and broader financial markets. The ultimate fallout and long-term impact from these events are not known. The Fund will continue to assess the impact on valuations and liquidity and will take any potential actions needed in accordance with procedures approved by the Board of Trustees.

58 Western Asset Short Duration High Income Fund 2023 Semi-Annual Report

------

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

Short Duration High Income Fund

**Trustees** 

Robert Abeles, Jr.

Jane F. Dasher

Anita L. DeFrantz

Susan B. Kerley

Michael Larson

Ronald L. Olson

Avedick B. Poladian

William E.B. Siart

*Chairman* 

Jaynie M. Studenmund

Peter J. Taylor

Jane Trust

**Investment manager** 

Legg Mason Partners Fund Advisor, LLC

**Subadvisers** 

Western Asset Management Company, LLC

Western Asset Management Company Limited

**Distributor** 

Franklin Distributors, LLC

**Custodian** 

The Bank of New York Mellon

**Transfer agent** 

Franklin Templeton Investor Services, LLC

3344 Quality Drive

Rancho Cordova, CA 95670-7313

**Independent registered public accounting firm** 

PricewaterhouseCoopers LLP Baltimore, MD

**Western Asset Short Duration High Income Fund** 

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

Western Asset Short Duration High Income Fund

Legg Mason Funds

620 Eighth Avenue, 47th Floor

New York, NY 10018

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

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

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

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

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

------

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

**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 SEMI-ANNUAL REPORT**

------

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

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

**Confidentiality and Security** 

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

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

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

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

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

Franklin Mutual Advisers, LLC

Franklin, Templeton and Mutual Series Funds

Franklin Templeton Institutional, LLC

Franklin Templeton Investments Corp., Canada

Franklin Templeton Investments Management, Limited UK

Franklin Templeton Portfolio Advisors, Inc.

Legg Mason Funds serviced by Franklin Templeton Investor Services, LLC

Templeton Asset Management, Limited

Templeton Global Advisors, Limited

Templeton Investment Counsel, LLC

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

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

------

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

**FD2172 3/23 SR23-4616** 

------

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

Not applicable.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6. SCHEDULE OF INVESTMENTS.

Included herein under Item 1.

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

Not applicable.

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

Not applicable.

ITEM 9. PURCHASES OF 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;&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;&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.

------

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

Not applicable.

ITEM 13. EXHIBITS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (1) Not applicable.

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.

[Exhibit 99.CERT](d422576dex99cert.htm)

&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.

[Exhibit 99.906CERT](d422576dex99906ct.htm)

------

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

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this Report to be signed on its behalf by the undersigned, there unto duly authorized.

**Legg Mason Partners Income Trust** 

---

| | |
|:---|:---|
| By: | /s/ Jane Trust |
|  | Jane Trust |
|  | Chief Executive Officer |
| Date: | March 21, 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: | March 21, 2023 |
| By: | /s/ Christopher Berarducci |
|  | Christopher Berarducci |
|  | Principal Financial Officer |
| Date: | March 21, 2023 |

---

## Ex-99.Cert

CERTIFICATIONS PURSUANT TO SECTION 302

EX-99.CERT

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

I, Jane Trust, certify that:

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

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

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

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

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

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

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

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

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

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

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

---

| | |
|:---|:---|
| Date: March 21, 2023 | /s/ Jane Trust |
|  | JaneTrust |
|  | Chief Executive Officer |

---

------

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

I, Christopher Berarducci, certify that:

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

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

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

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

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

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

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

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

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

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

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

---

| | |
|:---|:---|
| Date: March 21, 2023 | /s/ Christopher Berarducci |
|  | Christopher Berarducci |
|  | Principal Financial Officer |

---

## Exhibit 99.906

CERTIFICATIONS PURSUANT TO SECTION 906

EX-99.906CERT

**CERTIFICATION** 

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Registrant's periodic report on Form N-CSR for the period ended January 31, 2023 (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**<br> Legg Mason Partners Income Trust | **Principal Financial Officer**<br> Legg Mason Partners Income Trust |
| /s/ Jane Trust | /s/ Christopher Berarducci |
| Jane Trust | Christopher Berarducci |
| Date: March 21, 2023 | Date: March 21, 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.