Western Asset Diversified Income Fund - Market Price (%)
Month End
As of 12/31/2025
Fixed Income
WDI Western Asset Diversified Income Fund
Popular Documents
Overview
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 Assets
As of 12/31/2025 (Updated Monthly) - $757.33 Million
- Dividend Frequency, if any
- Monthly
- Morningstar Category
5 - Multisector Bond
- Asset Class
- Fixed Income
Identifiers
- Ticker
- WDI
- NAV Symbol
- XWDIX
- CUSIP Code
- 95790K109
Average Annual Total Returns As of 12/31/2025
- 10.58%1 Year
- 16.28%3 Years
- —5 Years
- —10 Years
- 2.86%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
As of 12/31/2025 % of Total (Updated Monthly)
High-Yield Credit44.95% | |
Collateralized Loan Obligation13.92% | |
Bank Loans10.32% | |
Commercial Mortgage Backed Securities9.62% | |
Non-Agency Retail Mortgage Backed Security7.52% |
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
- Shares Outstanding
- 51,912,116
- Daily Volume
- 208,462
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.
Commentary Highlights
12/31/2025- Markets: Fixed-income market volatility persisted in the fourth quarter of 2025 as investors and policymakers navigated mixed economic signals. The longest US government shutdown, which restricted data availability, ended in November after 43 days. The US Treasury (UST) yield curve steepened, with short and intermediate UST yields finishing the quarter lower, while long-term yields increased. Equities performed well, with the S&P 500 Index reaching new highs, while credit spreads were mixed.
- Contributors : The Fund’s exposure to high-yield bonds, bank loans and collateralized loan obligations (CLOs) was the most significant contributor.
- Detractors : There were no notable detractors during the quarter.
- Outlook : Western Asset’s outlook remains constructive, though we recognize that growth momentum is tempered by uncertainty in areas such as geopolitics and fiscal sustainability. U.S. financial conditions are largely supportive, which, alongside proposed fiscal loosening and solid household balance sheets, points toward a positive foundation for growth in 2026. Headwinds remain, including doubts over the state of the U.S. labor market, core inflation lingering above target and the potential lagged impact of tariffs.
Latest Insights
January 28, 2026
January 27, 2026
January 22, 2026
January 16, 2026
Performance
Average Annual Total Returns
As of 12/31/2025
Selected Month December 2025
Western Asset Diversified Income Fund - NAV (%)
Month End
As of 12/31/2025
Bloomberg U.S. Corporate High Yield - 2% Issuer Cap Index (%)
Month End
As of 12/31/2025
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.
Portfolio
Assets
As of12/31/2025 (Updated Monthly)
- Total Assets
8 - $1.13 Billion
- Loans
- 32.23%
- Reverse Repurchase Agreements
- 0.71%
- Total Net Assets
8 - $757.33 Million
Positions
As of 12/31/2025 (Updated Monthly)
Number of Holdings
- Fund
- 412
- Benchmark
- 1,968
Portfolio Statistics
As of 12/31/2025 (Updated Monthly)
Effective Duration
- Fund
- 3.84 Years
- Benchmark
- —
- Fund
- 11.22%
- Benchmark
- —
- Fund
- 8.56 Years
- Benchmark
- 3.52 Years
Sector Allocation
As of 12/31/2025 % of Total (Updated Monthly)
| Sector | Fund |
|---|---|
High-Yield Credit | 44.95% |
Collateralized Loan Obligation | 13.92% |
Bank Loans | 10.32% |
Commercial Mortgage Backed Securities | 9.62% |
Non-Agency Retail Mortgage Backed Security | 7.52% |
Investment-Grade Credit | 3.63% |
EM USD Sovereigns | 3.21% |
Asset-Backed Securities | 2.81% |
EM USD Corporate | 1.60% |
Other | 1.15% |
EM Local Debt | 0.60% |
Cash & Cash Equivalents | 0.67% |
Holdings
As of 12/31/2025 (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
NAVIENT CORP 5.5000% Mat 03/15/2029
PM GENERAL PURCHASER LLC 9.5000% Mat 10/01/2028
OCCIDENTAL PETROLEUM COR 7.5000% Mat 11/01/2096
MCCLATCHY MEDIA CO LLC 11.0000% Mat 12/01/2031
GLOBAL AUTO/AAG 11.5 8/29 11.5000%
ZF NA CAPITAL 6.8750% Mat 04/23/2032
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
- Distribution Frequency
- MonthlyThis fund is an ex-Dividend fund
Rates and Yields
Distribution Rate
At Net Asset Value (NAV) 12.07%
At Market Price 12.67%
Final composition of the current year’s distribution—income, capital gains and/or return of capital—are based on US tax rules and will be determined by February of the following year. For tax characterization of a distribution, such as return of capital and tax-exempt income, click on the “Tax Information” tab above.
Distributions Per Share
02/20/2026
Annually, a fund must distribute all realized capital gains net of realized losses, so the fund will not be subject to an entity level income tax. A fund’s capital gain distribution in a particular year may be a result of the disposition of holdings that appreciated in value during prior years. Thus, while the fund may gain or lose value over the course of a year, a capital gain distribution paid by the fund may not be indicative of current performance of the fund.
The distributable amount of net capital gains are paid on a per-share basis to all investors who hold shares of the fund on the record date of the distribution and are recognized by the shareholder for tax purposes as of the ex-date of the distribution, regardless of when the gains or losses arose in the fund. Net gains on holdings held long term by the fund would be distributed to shareholders as a long-term capital gain distribution no matter how long the shareholder has owned shares in the fund.
Refer to the fund’s annual report for specific information regarding distributions.
Pricing
Pricing History
As of 02/06/2026 (Updated Daily)
Daily Fund Prices
As of 02/06/2026
Share Prices
As of 02/06/2026
52-Week Range
- Highest NAV
- $15.32
- Lowest NAV
- $14.25
- Highest Market Price
- $15.26
- Lowest Market Price
- $12.85
Premium / Discount
As of 02/06/2026
- Avg. of Market Price vs. NAV at Close
- -4.67%
Press Releases
01/27/2026
11/24/2025
11/20/2025
08/06/2025
05/19/2025
05/15/2025
02/19/2025
12/20/2024
11/15/2024
11/10/2022
Documents
Fund Literature
| Name | Download | Add to Cart | |
|---|---|---|---|
| Factsheet - Western Asset Diversified Income Fund | |||
| Product Commentary - Western Asset Diversified Income Fund | |||
| Closed-End Funds Product Guide |
Regulatory Documents
| Name | Download | Add to Cart | |
|---|---|---|---|
| Annual Report - Western Asset Diversified Income Fund | |||
| Semi-Annual Report - Western Asset Diversified Income Fund | |||
| Policy and Procedures - Audit Committee Charter | |||
| Policy and Procedures - Compensation Committee Charter | |||
| Policy and Procedures - Nominating Committee Charter February 2024 | |||
| Fiscal Q1 Holdings - Western Asset Diversified Income Fund | |||
| Fiscal Q3 Holdings - Western Asset Diversified Income Fund |
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
The Closed-End Funds are not sold or distributed by Franklin Distributors, LLC. (FD, LLC) or any Franklin Templeton affiliated companies. Unlike open-end funds, shares are not continually offered. Like other public companies, closed-end funds have a one-time initial public offering, and once their shares are first issued, are generally bought and sold through non-affiliated broker/dealers and trade on nationally recognized stock exchanges. Share prices will fluctuate with market conditions and, at the time of sale, may be worth more or less than your original investment. Shares of exchange-traded closed-end funds may trade at a discount or premium to their original offering price, and often trade at a discount to their net asset value. Investment return, market price and net asset value will fluctuate with changes in market conditions. The Funds are subject to investment risks, including the possible loss of principal invested.
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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Indexes are unmanaged, and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.
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.
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.
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.
*Within 6-18 months of the liquidation date the Board may approve a tender offer for 100% of the shares outstanding. If, upon expiration of the tender offer, the Fund has in excess of $200 million aggregate net assets the Board may remove the Fund’s termination date.
All entities mentioned are Franklin Templeton affiliated companies. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.