Western Asset Diversified Income Fund Declares Initial Distribution

SAN MATEO, Calif.--()--The Western Asset Diversified Income Fund (NYSE: WDI) has authorized the Fund’s initial monthly distribution, payable on Sept. 1, 2021. The Fund’s common shares began trading on the New York Stock Exchange on June 25, 2021.

Ex-Dividend Date

Aug. 23, 2021



Record Date

Aug. 24, 2021



Payable Date

Sept. 1, 2021








Fund Name


Monthly Distribution Amount per Share

Distribution Rate on IPO Price*


Western Asset Diversified Income Fund



*The distribution rate on the initial public offering (IPO) price is determined by dividing the monthly distribution amount by the $20.00 IPO price per share and annualizing the rate.

The distribution may be treated as dividend income, return of capital or a combination thereof for tax purposes. This press release is not for tax reporting purposes. In early 2022, after definitive information is available, the Fund will send shareholders a Form 1099-DIV, if applicable, specifying how the distributions paid by the Fund during the prior calendar year should be characterized for purposes of reporting the distributions on a shareholder’s tax return (e.g., dividend income or return of capital).

The Fund is a diversified, closed-end fund seeking high current income and, secondarily, capital appreciation.

Western Asset’s investment process utilizes cross-sector correlations designed to seek optimized return potential and diversification within the portfolio. As active managers of the portfolio, Western Asset will employ its top-down macro view to drive decisions on value, credit sectors, credit quality and duration, and its deep research experience and bottom-up analysis to make sector and security selections.

Under current market conditions, the Fund anticipates it will initially focus on shorter-duration and floating-rate securities, which have lower sensitivity to higher interest rates. Its duration and mix of fixed- and floating-rate investments are subject to change over time. As market conditions change, Western Asset will seek to dynamically rotate investments into sectors and securities that it believes to be undervalued from a fundamental perspective with an attractive return profile and away from investments that it believes to be overvalued.

The Fund may invest in both investment grade and below investment grade corporate debt securities, senior loans, agency and non-agency residential mortgage-backed securities and commercial mortgage-backed securities, government (i.e., sovereign) debt (including U.S. government obligations), floating-rate securities, bank loans, collateralized loan obligations, asset-backed securities, private debt and mortgage whole loans.

About Western Asset

Western Asset is one of the world’s leading fixed-income managers. With a focus on long-term fundamental value investing that employs a top-down and bottom-up approach, the firm has nine offices around the globe and deep experience across the range of fixed-income sectors. Founded in 1971, Western Asset has been recognized for an approach emphasizing team management and intensive proprietary research, supported by robust risk management. To learn more about Western Asset, please visit www.westernasset.com.

About Franklin Templeton

Franklin Resources, Inc. is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 165 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company brings extensive capabilities in equity, fixed income, multi-asset solutions and alternatives. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has over 70 years of investment experience and approximately $1.5 trillion in assets under management as of May 31, 2021. For more information, please visit franklintempleton.com and follow us on LinkedIn, Twitter and Facebook.


The Fund is newly organized, with a limited history of operations. Fixed-income securities involve interest rate, credit, inflation, and reinvestment risks, and possible loss of principal. As interest rates rise, the value of fixed-income securities falls. High yield bonds are subject to greater price volatility, illiquidity, and possibility of default. Asset-backed, mortgage-backed or mortgage-related securities are subject to prepayment and extension risks. The Fund may invest in securities backed by subprime mortgages which involve a higher degree of risk and chance of loss. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. Derivatives, such as options and futures, can be illiquid, may disproportionately increase losses, and have a potentially large impact on Fund performance. Leverage may increase volatility and possibility of loss. Shares of closed-end funds frequently trade at a discount to their net asset value. The Fund is primarily a long-term investment vehicle and should not be used for short-term trading. Diversification does not guarantee a profit or protect against a loss. Information regarding the distribution rate is included for informational purposes only and is not necessarily indicative of future results, the achievement of which cannot be assured. The distribution rate should not be considered the yield or total return on an investment in the Fund. Distributions are not guaranteed and are subject to change.

For more information about the Fund, please call 1-888-777-0102 or consult the Fund’s web site at www.lmcef.com.

Data and commentary provided in this press release are for informational purposes only. Franklin Resources and its affiliates do not engage in selling shares of the Fund. This press release is not intended to, and does not constitute, an offer to purchase or sell shares of the Fund.

Category: Distribution Related

Source: Franklin Resources, Inc.

Source: Legg Mason Closed End Funds


Lisa Tibbitts, +1 (917) 674-8060, Lisa.Tibbitts@franklintempleton.com

Release Summary

Category: Distribution Related.


Lisa Tibbitts, +1 (917) 674-8060, Lisa.Tibbitts@franklintempleton.com