Western Asset Income Fund Announces Name Change and Additional Investment Policy
March 2, 2018
NEW YORK--(BUSINESS WIRE)-- Western Asset Income Fund (the “Fund”) (NYSE:PAI) announced today that the Board of Directors of the Fund has approved a change to the Fund’s name. Effective March 29, 2018, the Fund’s name will be Western Asset Investment Grade Income Fund Inc. The Fund’s shares of common stock will continue to trade under its existing New York Stock Exchange symbol “PAI”. The Fund’s CUSIP, 95766T100, will not change.
In addition, also effective March 29, 2018, the Fund will invest at least 80% of its net assets in fixed income securities that are rated in the Baa or BBB categories or above at the time of purchase by one or more Nationally Recognized Statistical Rating Organizations (“NRSROs”) or unrated securities of comparable quality at the time of purchase (as determined by the adviser). To the extent not addressed above, in the event that NRSROs assign different ratings to the same security, the adviser will determine which rating it believes best reflects the security’s quality and risk at that time. In addition, the Fund may invest up to 20% in other fixed income securities, and not more than 25% in securities restricted as to resale. The Fund’s 80% investment policy may be changed by the Board without shareholder approval upon 60 days’ prior notice to shareholders. In addition, convertible bonds and preferred securities would be treated as “fixed income” securities for purposes of policy and so, if appropriately rated, would qualify for the 80% test. The Fund’s investment objectives remain unchanged.
Currently, the Fund’s investment policies (the “current policy”) provide that its portfolio be invested as follows: at least 75% in debt securities rated within the four highest grades, and in government securities, bank debt, commercial paper, cash or cash equivalents; up to 25% in other debt securities, convertible bonds, convertible preferred and preferred stock; and not more than 25% in securities restricted as to resale. Trust preferred interests and capital securities are considered debt securities and not preferred stock for purposes of the foregoing guidelines. The Fund will continue to comply with the current policy.
Western Asset Income Fund, a diversified closed-end investment management company, is advised by Western Asset Management Company, a wholly owned subsidiary of Legg Mason, Inc. (“Legg Mason”) and is sub-advised by Western Asset Management Company Limited, an affiliate of the advisor.
An investment in the Fund involves risk, including loss of principal. Investment return and the value of shares will fluctuate. Fixed income securities are subject to risks, such as credit risk, inflation risk, call risk, and interest rate risk. As interest rates rise, bond prices fall, reducing the value of the Fund's share price. High yield bonds are subject to additional risk and volatility.
Data and commentary provided in this press release are for informational purposes only. Legg Mason and its affiliates do not engage in selling shares of the Fund.
For more information, please call Fund Investor Services at 1-888-777-0102, or consult the Fund’s web site at http://www.lmcef.com. Hard copies of the Fund’s complete audited financial statements are available free of charge upon request.