Fixed Income

WDI Western Asset Diversified Income Fund

Overview

See the risks and other important information.

Fund Facts

Fund description

Diverse opportunity set: Invests in a wide range of fixed income securities, seeking to go beyond traditional bond benchmarks to access a broad range of opportunities for income and capital appreciation. Income-focused: Potential access to fixed income sectors and private debt not typically available through traditional mutual funds. Flexible and dynamic: Rotates sectors and securities in response to market conditions, focusing on what we believe are undervalued securities with attractive fundamentals. Limited Term: The Fund intends to liquidate on or about June 24, 2033*.

Fund Inception Date: 06/24/2021
Total Net AssetsAs of 02/28/2026 (Updated Monthly): $758.44 Million
Dividend Frequency, if any: Monthly
Morningstar Category⁵: Multisector Bond
Asset Class: Fixed Income

Expenses & Fees

⁷

As of 12/31/2025

Management Charge: 1.62%
Additional Expenses⁶: 0.13%
Sub TotalAs of 03/31/2026: 1.75%
Interest Expenses: 2.51%
Income Tax Expense: 0.00%
Pure Gross Expense Ratio: 4.25%

Identifiers

Ticker: WDI
NAV Symbol: XWDIX
CUSIP Code: 95790K109

Average Annual Total Returns As of 02/28/2026

View performance section for additional info As of 02/28/2026

Market Price

NAV

5.37%1 Year
12.80%3 Years
—5 Years
—10 Years
3.27%Since Inception
06/25/2021

Performance data quoted represents past performance, which does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the figures shown.

Top Sectors

View portfolio section for additional info

As of 02/28/2026 % of Total (Updated Monthly)

Top Sectors
High-Yield Credit45.90%
Collateralized Loan Obligation12.74%
Bank Loans10.59%
Commercial Mortgage Backed Securities10.06%
Non-Agency Retail Mortgage Backed Security6.88%

Additional Fund Info

Listing Exchange: NYSE - XNYS
Fiscal Year End: December 31
Benchmark: Bloomberg U.S. Corporate High Yield - 2% Issuer Cap Index
Lipper Classification: General Bond Funds
Investment Style: Multi-Sector

Trading Characteristics

As of 03/31/2026 (Updated Daily)

Shares Outstanding: 51,912,116
Daily Volume: 216,406

Manager

About the Team

Western Asset

Western Asset Management is one of the world's leading global fixed income managers. Founded in 1971, the firm is known for team management and proprietary research, supported by robust risk management and a long-term fundamental value approach.

Latest Insights

March 19, 2026

Muni Monthly: February 2026

March 9, 2026

Iran crisis update

February 22, 2026

The “missing middle”—bringing EM official investors into focus

January 28, 2026

January FOMC recap—A pause, but for how long?

Performance

Calendar Year Returns

As of 02/28/2026

Month End

Quarter End

Western Asset Diversified Income Fund - Market Price (%)

Western Asset Diversified Income Fund - NAV (%)

Bloomberg U.S. Corporate High Yield - 2% Issuer Cap Index (%)

Performance data quoted represents past performance, which does not guarantee future results. Current performance may be lower or higher than the figures shown. Principal value and investment returns will fluctuate, and investors' shares, when redeemed, may be worth more or less than the original cost. Returns based on Market Price or NAV, and assume the reinvestment of all distributions at the Dividend Reinvestment Plan Price or NAV, respectively. Returns include the deduction of management fees, operating expenses and all other fund expenses, and do not reflect the deduction of brokerage commissions or taxes that investors may pay on distributions or the sale of shares. Returns for periods of less than one year are not annualized.

Overall Morningstar Rating: Overall Morningstar Rating: 3 out of 5 stars
As of 02/28/2026

3 Years: 3 Years: 3 out of 5 stars
25 Funds in category

5 Years: —

10 Years: —

Rating Category: Multisector Bond

The fund's overall Morningstar Rating measures risk-adjusted returns and is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics.

Morningstar Style Box

As of 02/28/2026

Current Historical
			Large
			Medium
			Small
Value	Blend	Growth
Style

Size

Source: Morningstar®. The style box reveals a fund's investment style. For equity funds, the vertical axis shows the market capitalization of the long stocks owned, and the horizontal axis shows the investment style (value, blend, or growth). For fixed income funds, the vertical axis shows the credit quality based on credit ratings and the horizontal axis shows interest-rate sensitivity as measured by effective duration. Placement is determined by fund portfolio holding figures most recently entered into Morningstar's database and corresponding market conditions. Shaded areas show the past 3 years of quarterly data. Past performance does not guarantee future results.

©2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Portfolio

Assets

As of02/28/2026 (Updated Monthly)

Total Assets ⁸: $1.13 Billion
Loans: 32.24%
Reverse Repurchase Agreements: 0.59%
Total Net Assets ⁸: $758.44 Million

Positions

As of 02/28/2026 (Updated Monthly)

Number of Holdings

Fund: 420
Benchmark: 1,930

Portfolio Statistics

As of 02/28/2026 (Updated Monthly)

Effective Duration

Fund: 3.91 Years
Benchmark: —

Cash Flow

Fund: 11.48%
Benchmark: —

Weighted Average Life

Fund: 8.47 Years
Benchmark: 3.60 Years

Sector Allocation

As of 02/28/2026 % of Total (Updated Monthly)

Sector Allocation
Sector	Fund
High-Yield Credit	45.90%
Collateralized Loan Obligation	12.74%
Bank Loans	10.59%
Commercial Mortgage Backed Securities	10.06%
Non-Agency Retail Mortgage Backed Security	6.88%
EM USD Sovereigns	3.29%
Investment-Grade Credit	3.11%
Asset-Backed Securities	2.58%
EM USD Corporate	1.83%
Other	1.26%
EM Local Debt	0.71%
Cash & Cash Equivalents	1.05%

Holdings
As of 02/28/2026 (Updated Monthly)

GS MORTGAGE SECURITIES CORP II 10.3333% Mat 03/10/2041

MIRA TRUST 2023-MILE 9.3000% Mat 06/10/2038

CHS/COMMUNITY HEALTH SYS 6.8750% Mat 04/15/2029

TUTOR PERINI CORP 11.8750% Mat 04/30/2029

PM GENERAL PURCHASER LLC 9.5000% Mat 10/01/2028

OCCIDENTAL PETROLEUM COR 7.5000% Mat 11/01/2096

NAVIENT CORP 5.5000% Mat 03/15/2029

MCCLATCHY MEDIA CO LLC 11.0000% Mat 12/01/2031

GLOBAL AUTO/AAG 11.5 8/29 11.5000%

MAGIC MERGERCO INC 5.2500% Mat 05/01/2028

Portfolio holdings are based on total portfolio, and are subject to change at any time. Holdings are provided for informational purposes only and should not be construed as a recommendation to purchase or sell any security. Any negative allocations or allocations in excess of 100% are primarily due to unsettled trade activities.

Derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses and have a potentially large impact on Fund performance.

Distributions & Tax

Federal ID Number 86-2358725

For information on tax years prior to 2008, please contact us

These amounts represent distributions paid by the fund, foreign taxes passed through (if any), and other distribution characteristics for the calendar year selected. These amounts are reported to shareholders on Form 1099-DIV.

Distributions per Share ($)

Year

Tax Information
Record Date	Ordinary Dividends Dividends paid by a fund that are derived from interest, dividends, net short-term capital gains and other types of ordinary income earned by the fund. For a fund that elects to pass through its foreign taxes paid (a non-cash item), a shareholder's allotted share of foreign taxes has been added to the “Ordinary Dividends” cash distributions received by the shareholder. If the fund passed through foreign taxes paid and later is refunded any portion of those taxes by a foreign tax authority, any interest paid to the fund on that refund is also required to be included in “Ordinary Dividends”.	Qualified Dividends The portion of a fund’s “Ordinary Dividends” that may be eligible for a reduced capital gain tax rate. To be eligible for the lower tax rates, certain holding periods apply and shareholders should consult their tax advisor to determine the amount eligible for the reduced rate. This amount represents both cash distributions and non-cash amounts, such as foreign taxes paid, that have been allocated to shareholders.	Capital Gain Distributions	Unrecaptured Section 1250 Gain	Non-Taxable Return Of Capital	Section 199a Dividends The portion of a fund’s “Ordinary Dividends” generated by a real estate investment trust or earned by a fund from its investments in real estate investment trusts, subject to limitations. Individual (non-corporate) shareholders may be entitled to a special deduction from gross income for “Section 199A Dividends” received from a fund. To qualify for this deduction certain holding periods apply and shareholders should consult their tax advisor.	Foreign Tax Paid	Exempt Interest Dividends	Interest on Tax Reclaim Refunds
Jan 24	0.1485	—	—	—	—	—	—	—	—
Feb 21	0.1485	—	—	—	—	—	—	—	—
Mar 24	0.1485	—	—	—	—	—	—	—	—
Apr 23	0.1485	—	—	—	—	—	—	—	—
May 22	0.1485	—	—	—	—	—	—	—	—
Jun 23	0.1485	—	—	—	—	—	—	—	—
Jul 24	0.1485	—	—	—	—	—	—	—	—
Aug 22	0.1485	—	—	—	—	—	—	—	—
Sep 23	0.1485	—	—	—	—	—	—	—	—
Oct 24	0.1485	—	—	—	—	—	—	—	—
Nov 20	0.1485	—	—	—	—	—	—	—	—
Dec 10	0.1485	—	—	—	—	—	—	—	—
Dec 31	0.1485	—	—	—	—	—	—	—	—
	1.9305	—	—	—	—	—	—	—	—

Jan 24

Feb 21

Mar 24

Apr 23

May 22

Jun 23

Jul 24

Aug 22

Sep 23

Oct 24

Nov 20

Dec 10

Dec 31

Supplemental Tax Information

Foreign Source Income: —
Foreign Source Qualified Dividends: —
Direct U.S. Government Obligations The portion of “Ordinary Dividends” attributable to earnings from US Treasury and certain other government securities may be categorized as a fund containing US government obligations. This income may be exempt from state personal income taxes. The percentage for direct US government obligation interests available for tax-exempt treatment may be limited in states that require the fund to meet certain minimum thresholds. Shareholders should consult their tax advisor to determine the availability of exemptions in their state.: —
Specified Private Activity Bond Interest: —
Dividends Received Deduction: —
Section 163(j): 74.97%
Indiana Resident Taxable Income: —
Utah Resident Taxable Income The portion of “Exempt-Interest Dividends” subject to Utah income tax. Subject to certain exceptions, the state of Utah provides that income earned from non-federal government entities outside of Utah (non-Utah municipal bonds) is taxable to Utah resident shareholders. Income earned from states that do not tax Utah obligations are also exempt. Shareholders should consult their tax advisor about applicability.: —

Franklin Templeton and its specialized investment managers and its employees are not in the business of providing tax or legal advice to taxpayers. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties or complying with any applicable tax laws or regulations. Tax-related statements, if any, may have been written in connection with the promotion or marketing of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Each investor’s tax situation is different, and is based on an individual’s tax bracket, type of account used for investment and other factors. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.

Pricing

Pricing History

As of 03/31/2026 (Updated Daily)

Time Period

From

From Date

To Date

Daily Fund Prices

As of 03/31/2026

Share Prices

As of 03/31/2026

NAV ¹(Net Asset Value): $14.13
NAV Change ¹: $0.07
NAV Change (%) ¹: 0.50%
Market Price ²: $13.44
Market Price Change ²: $0.38
Market Price Change (%) ²: 2.91%

52-Week Range

Highest NAV: $15.23
Lowest NAV: $14.04
Highest Market Price: $15.25
Lowest Market Price: $12.85

Documents

Fund Literature

Fund Literature
Checkbox	Name	Download
Checkbox	Factsheet - Western Asset Diversified Income Fund	Download Document
Checkbox	Product Commentary - Western Asset Diversified Income Fund	Download Document
Checkbox	Distribution Summary - Franklin Templeton Closed-End Fund	Download Document
Checkbox	Product Guide - Closed-end funds	Download Document

Regulatory Documents

Regulatory Documents
Checkbox	Name	Download
Checkbox	Annual Report - Western Asset Diversified Income Fund	Download Document
Checkbox	Semi-Annual Report - Western Asset Diversified Income Fund	Download Document
Checkbox	Policy and Procedures - Audit Committee CharterMailed hardcopies unavailable.	Download Document
Checkbox	Policy and Procedures - Compensation Committee CharterMailed hardcopies unavailable.	Download Document
Checkbox	Policy and Procedures - Nominating Committee Charter February 2024Mailed hardcopies unavailable.	Download Document
Checkbox	Fiscal Q1 Holdings - Western Asset Diversified Income FundMailed hardcopies unavailable.	Download Document
Checkbox	Fiscal Q3 Holdings - Western Asset Diversified Income FundMailed hardcopies unavailable.	Download Document

View Proxy Voting Records and Proxy Voting Policies

View Fund's SEC Filing

Risks

All investments involve risks, including possible loss of principal. 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. Low-rated, 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. 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. Derivative instruments can be illiquid, may disproportionately increase losses, and have a potentially large impact on performance. Leverage increases the volatility of investment returns and subjects investments to magnified losses and a decline in value. Diversification does not assure against market loss.

Important Information

Franklin Distributors, LLC. Member FINRA, SIPC. All entities mentioned are Franklin Templeton affiliated companies. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.
Reports and other information about the funds are available on the EDGAR Database on the SEC's Internet site at www.sec.gov.

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Important data provider notices and terms available at www.franklintempletondatasources.com.

Performance data quoted represents past performance, which does not guarantee future results.

CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Indexes are unmanaged and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.

Performance data quoted represents past performance, which does not guarantee future results. Current performance may be lower or higher than the figures shown. Principal value and investment returns will fluctuate, and investors' shares, when redeemed, may be worth more or less than the original cost. Performance would have been lower if fees had not been waived in various periods. Total returns assume the reinvestment of all distributions and the deduction of all fund expenses. Returns for periods of less than one year are not annualized. All classes of shares may not be available to all investors or through all distribution channels. For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/(800) 342-5236 or visit www.franklintempleton.com.

Investors should carefully consider the 529 plan’s investment goals, risks, charges and expenses before investing. To obtain the Program Description, which contains this and other information, talk to your financial professional or call Franklin Distributors, LLC, the manager and underwriter for the 529 plan at (800) DIAL BEN/342-5236 or visit franklintempleton.com. You should read the Program Description carefully before investing and consider whether your, or the beneficiary’s, home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in its qualified tuition program.

Franklin Templeton's 529 College Savings Plan is offered and administered by the New Jersey Higher Education Student Assistance Authority (HESAA); managed and distributed by Franklin Distributors, LLC, which is a Franklin Templeton company.

Investments in Franklin Templeton’s 529 College Savings Plan are not insured by the FDIC or any other government agency and are not deposits or other obligations of any depository institution. Investments are not guaranteed by the State of New Jersey, Franklin Templeton, or its affiliates and are subject to risks, including loss of principal amount invested. Investing in the plan does not guarantee admission to any particular primary, secondary school or college, or sufficient funds for primary, secondary school or college.

This material is being provided for general informational and should not be considered or relied upon as legal, tax or investment advice or an investment recommendation, or as a substitute for legal or tax counsel and provided for educational and informational purposes only. Franklin Templeton does not provide legal or tax advice. Federal and state laws and regulations are complex and subject to change, which can materially impact your results. Franklin Templeton cannot guarantee that such information is accurate, complete or timely; and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information.

Most 529 portfolios offer multiple share class options. Share classes are subject to different fees and expenses, which will affect their performance.

Certain share classes are only offered to eligible investors as stated in the Program Description. Different minimums may apply to clients of certain service agents. All classes of shares are not available through all distribution channels. See the Program Description for additional information.

Effective November 18, 2024, there were investment-related enhancements. Please see Program Description for detailed information.

The Bloomberg U.S. Corporate High Yield - 2% Issuer Cap Index measures the performance of U.S. dollar-denominated, non-investment-grade, fixed-rate, taxable corporate bond market. The Index limits the maximum exposure to any one issuer to 2%.
Source: Bloomberg Indices.

Footnotes

Net Asset Value (NAV) represents the value of a closed-end fund's underlying holdings per share. NAV is determined by dividing the total net assets of the fund by the number of shares outstanding. The fund calculates the NAV per share each business day normally coinciding with the close of trading on the New York Stock Exchange (NYSE).
Market Price, determined by supply and demand, is the price an investor purchases or sells the fund. The Market Price shown reflects the last trade on the listing exchange at the time that the fund's NAV is calculated.
Premium / Discount reflects the difference between the NAV and the Market Price of the fund, and represents the amount that the fund is trading above or below its NAV, expressed as a percentage of the NAV.
Distribution Rate is calculated by annualizing the most recent distribution amount paid, divided by the closing market price or NAV as of the date indicated. The Distribution Rate calculation includes income and excludes special distributions. The Distribution Rate is subject to change and is not guaranteed nor a quotation of fund performance.
©2026 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Includes operating and other expenses.
Based on the Fund’s net assets of the common shares, as of the most recent Annual Report. See the fund’s Annual Report for information on the fund’s expenses.
The difference between total assets and net assets, if any, is due primarily to the Fund’s use of borrowings and other liabilities; net assets do not include borrowings. The Fund may employ leverage in the form of loans, preferred stock, reverse repurchase agreements and/or other instruments. When the Fund engages in transactions that have a leveraging effect on the Fund’s portfolio, the value of the Fund will be more volatile and all other risks will tend to be compounded.
The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products with at least a three-year history, and subject to change monthly. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total return, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total return. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads. Morningstar Rating is for the specified share class(es) only; other classes may have different performance characteristics. ©2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Credit Quality is a measure of a bond issuer's ability to repay interest and principal in a timely manner. The credit ratings shown are based on each portfolio security's rating as provided by S&P Global Ratings, Moody's Investors Service and/or Fitch Ratings, Inc. and typically range from AAA (highest) to D (lowest), or an equivalent and/or similar rating. For this purpose, if two or more of the agencies have assigned differing ratings to a security, the highest rating is used. Securities that are unrated by all three agencies are reflected as such. The credit quality of the investments in the portfolio does not apply to the stability or safety of the portfolio. The methodology used for the calculation of credit quality ratings displayed may differ from the methodology for monitoring investment limits, if applicable. Please note, the portfolio itself has not been rated by an independent rating agency.

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