Fixed Income

SHDAX Western Asset Short Duration Municipal Income Fund

Overview

See the risks and other important information.

Fund Facts

Fund description

Strives to provide investors with high current income exempt from regular federal income tax while preserving capital. Focuses on sector rotation and issuer selection primarily within short term investment grade municipal securities. Utilizes a time-tested, value-oriented investment process led by a deep and experienced team of municipal bond specialists.

Benchmark: Bloomberg Municipal 3 Year (2-4)
Fund Inception Date: 03/17/2003
Dividend Frequency, if any: Monthly
Distribution Rate at NAV ⁴As of 10/31/2025 (Updated Daily): 2.66%

Sales Charges, Expenses & Fees

As of 07/01/2025

Gross Expense Ratio⁵: 0.60%
Net Expense Ratio^5,6: 0.55%
Maximum Initial Charge: 2.25%
CDSC⁷: 0.50%
12b-1 Fee: 0.15%

Identifiers

Ticker: SHDAX
Fund Number: 7744
CUSIP Code: 52469F192

Average Annual Total Returns As of 09/30/2025

View performance section for additional info As of 09/30/2025

Class A

With Sales Charge (POP)

Without Sales Charge (NAV)

0.90%1 Year
2.93%3 Years
0.90%5 Years
1.21%10 Years
1.77%Since Inception
03/17/2003

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 09/30/2025 % of Total (Updated Monthly)

Transportation25.14%

Industrial Revenue24.01%

State General Obligation10.49%

Power8.99%

Local General Obligation6.31%

Additional Fund Info

Share Class Inception Date: 03/17/2003
Investment Style: Municipals
Lipper Classification: Short Municipal Debt Funds
Morningstar Category: Muni National Short

Manager and Commentary

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

October 30, 2025

Key Convictions: Fourth quarter 2025

October 30, 2025

October FOMC recap—fog in the forecast

October 13, 2025

Muni Monthly: September 2025

October 7, 2025

Charting the next chapter in EM central bank reserve management

Performance

Average Annual Total Returns

As of 09/30/2025

Month End

Quarter End

As of

Class A - With Sales Charge (POP) (%)

Month End

As of 09/30/2025

Class A - Without Sales Charge (NAV) (%)

Month End

As of 09/30/2025

Bloomberg Municipal 3 Year (2-4) (%)

Month End

As of 09/30/2025

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. 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 with sales charge reflect a deduction of the stated maximum sales charge. Returns without sales charge would have been lower had sales charges been reflected. An investor cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges. Returns for periods of less than one year are not annualized.

See the risks and other important information.

Overall Morningstar Rating: Overall Morningstar Rating: 3 out of 5 stars
As of 09/30/2025

3 Years: 3 Years: 2 out of 5 stars
213 Funds in category

5 Years: 5 Years: 2 out of 5 stars
197 Funds in category

10 Years: 10 Years: 3 out of 5 stars
155 Funds in category

Rating Category: Muni National Short

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 09/30/2025

Current Historical
			High
			Medium
			Low
LTD	MOD	EXT
Duration

Quality

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 of09/30/2025 (Updated Monthly)

Total Net Assets: $300.95 Million

Positions

As of 09/30/2025 (Updated Monthly)

Number of Holdings

Fund: 151
Benchmark: 6,683

Portfolio Statistics

As of 09/30/2025 (Updated Monthly)

Effective Duration

Fund: 2.30 Years
Benchmark: —

Cash Flow

Fund: 3.01%
Benchmark: —

Weighted Average Life

Fund: 2.55 Years
Benchmark: 2.53 Years

State / U.S. Territory Allocation

As of 09/30/2025 % of Total (Updated Monthly)

State / U.S. Territory Allocation
Geography	Fund
Texas	14.72%
New York	10.39%
New Jersey	8.15%
California	7.68%
Connecticut	5.21%
Colorado	4.63%
Tennessee	4.18%
District of Columbia	3.69%
Alabama	3.65%
Louisiana	3.64%
Indiana	3.62%
Illinois	3.46%
Oregon	2.96%
Arizona	2.91%
Michigan	2.16%
Florida	2.15%
Washington	2.06%
Georgia	2.05%
North Carolina	1.86%
Ohio	1.71%
Kentucky	1.70%
Maryland	1.34%
South Carolina	1.16%
Utah	1.12%
Missouri	0.84%
Nebraska	0.69%
New Mexico	0.52%
Pennsylvania	0.43%
Massachusetts	0.42%
Mississippi	0.39%
West Virginia	0.33%
Iowa	0.17%

Holdings
As of 09/30/2025 (Updated Monthly)

TENNESSEE ST ENERGY ACQUISITIO 4.0000% Mat 11/01/2049

INDIANAPOLIS IN LOCAL PUBLIC I 5.0000% Mat 01/01/2029

TRIBOROUGH BRIDGE & TUNNEL AUT 5.0000% Mat 03/15/2029

STATE OF CONNECTICUT 4.0000% Mat 08/15/2030

CITY & COUNTY OF DENVER CO AIR 5.0000% Mat 12/01/2031

LONG ISLAND POWER AUTHORITY 5.0000% Mat 09/01/2052

LONG ISLAND NY PWR AUTH ELEC S 3.0000% Mat 09/01/2049

SAN FRANCISCO CITY & COUNTY AI 5.0000% Mat 05/01/2030

NEW JERSEY ST ECON DEV AUTH MT 5.0000% Mat 07/01/2028

CITY OF LOS ANGELES DEPARTMENT 5.0000% Mat 05/15/2029

Portfolio holdings are based on the 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.

Distributions & Tax

Federal ID Number 593766193

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 31	0.000042	—	—	—	—	—	—	0.008319	—
Feb 29	0.000012	—	—	—	—	—	—	0.008417	—
Mar 28	0.000012	—	—	—	—	—	—	0.008897	—
Apr 30	0.000012	—	—	—	—	—	—	0.008688	—
May 31	0.000013	—	—	—	—	—	—	0.009508	—
Jun 28	0.000011	—	—	—	—	—	—	0.008158	—
Jul 31	0.000013	—	—	—	—	—	—	0.009139	—
Aug 30	0.000014	—	—	—	—	—	—	0.010241	—
Sep 30	0.000013	—	—	—	—	—	—	0.008993	—
Oct 31	0.000014	—	—	—	—	—	—	0.010058	—
Nov 29	0.000014	—	—	—	—	—	—	0.009915	—
Dec 31	0.000014	—	—	—	—	—	—	0.010207	—
	0.000185	—	—	—	—	—	—	0.110539	—

Jan 31

Feb 29

Mar 28

Apr 30

May 31

Jun 28

Jul 31

Aug 30

Sep 30

Oct 31

Nov 29

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: 19.27%
Dividends Received Deduction: —
Section 163(j): 100.00%
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.: —

Tax-Exempt Income By Jurisdiction

Alabama: 2.47%

Arizona: 2.94%

California: 5.49%

Colorado: 5.31%

Connecticut: 7.47%

Delaware: 0.16%

Dist. of Columbia: 2.21%

Florida: 2.95%

Georgia: 1.99%

Illinois: 4.72%

Indiana: 4.26%

Iowa: 0.10%

Kansas: 0.05%

Kentucky: 7.51%

Louisiana: 3.22%

Maryland: 1.04%

Massachusetts: 0.12%

Michigan: 2.46%

Minnesota: 0.02%

Mississippi: 0.20%

Missouri: 0.40%

Nebraska: 1.12%

New Jersey: 5.70%

New York: 8.26%

North Carolina: 1.17%

Ohio: 4.25%

Oregon: 1.35%

Pennsylvania: 3.13%

South Carolina: 1.56%

Tennessee: 3.62%

Texas: 11.29%

Utah: 1.11%

Virginia: 0.20%

Washington: 2.15%

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 10/31/2025 (Updated Daily)

Time Period

From

From Date

To Date

Daily Fund Prices

As of 10/31/2025

Share Prices

As of 10/31/2025

NAV ¹(Net Asset Value): $5.08
NAV Change ¹: $0.00
NAV Change (%) ¹: 0.00%
POP ¹²(Public Offering Price): $5.20

52-Week Range

Highest NAV: $5.11
Lowest NAV: $4.95

Documents

Fund Literature

Fund Literature
Checkbox	Name	Download	Add to Cart
Checkbox	Factsheet - Western Asset Short Duration Municipal Income Fund	Download Document

Regulatory Documents

Regulatory Documents
Checkbox	Name	Download
Checkbox	Annual Report - Western Asset Short Duration Municipal Income Fund - Class A	Download Document
Checkbox	Annual Financial Statements and Other Information - Western Asset Short Duration Municipal Income Fund	Download Document
Checkbox	Semi-Annual Report - Western Asset Short Duration Municipal Income Fund - Class A	Download Document
Checkbox	Semi-Annual Financial Statements and Other Information - Western Asset Short Duration Municipal Income Fund	Download Document
Checkbox	Prospectus - Western Asset Short Duration Municipal Income Fund	Download Document
Checkbox	Summary Prospectus - Western Asset Short Duration Municipal Income Fund	Download Document
Checkbox	Statement of Additional Information - Legg Mason Partners Income Trust Book 2Mailed hardcopies unavailable.	Download Document
Checkbox	Fiscal Q1 Holdings - Western Asset Short Duration Municipal Income FundMailed hardcopies unavailable.	Download Document
Checkbox	Fiscal Q3 Holdings - Western Asset Short Duration Municipal Income FundMailed hardcopies unavailable.	Download Document

View Proxy Voting Records and Proxy Voting Policies

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. Derivative instruments can be illiquid, may disproportionately increase losses, and have a potentially large impact on performance. An investor may be subject to the federal Alternative Minimum Tax, and state and local taxes may apply. These and other risks are discussed in the fund’s prospectus.

Important Information

Click here for funds sales charge and breakpoint information.

Most funds offer multiple share classes. 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 prospectus. Different minimums may apply to clients of certain service agents. All classes of shares are not available through all distribution channels. See the Fund's prospectus for additional 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.

You need Adobe Acrobat Reader to view and print PDF documents. Download a free version from Adobe's website.

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.

The Bloomberg Three-Year Municipal Bond Index is a broad measure of the municipal bond market with maturities of approximately three years.
Source: Bloomberg Indices.

Investors should carefully consider a fund's investment goals, risks, sales charges and expenses before investing. The prospectus contains this and other information. Please read the prospectus carefully before investing or sending money.

Footnotes

Net Asset Value - the amount per share you would receive if you sold shares that day. NAV Change indicates a change in the Net Asset Value from the previous business day.
Figures are aggregate total return figures, have not been annualized and represent the change in value of an investment over the period indicated.
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.
Distribution Rate is calculated by annualizing the daily accrual, divided by the NAV as of the date indicated. The Distribution Rate calculation includes income and return of capital, and excludes special distributions. The Distribution Rate is not guaranteed, subject to change, and is not a quotation of fund performance.
Gross Expense Ratio reflects the total annual operating expenses for the share class shown, prior to the deduction of any waiver or reimbursement. Actual expenses may be higher and may impact portfolio returns. Net Expense Ratio reflects total expenses after any fee waivers, implemented expense caps or reimbursements. If a fund has contractual fee waivers, expense caps and/or reimbursements, the expiration date can be found by clicking on the information button next to the net expense ratio. Additional amounts may be voluntarily waived and/or reimbursed and may be modified or discontinued at any time without notice. Expense ratios are as of the most recent prospectus or annual report.
Net Expense Ratio represents the expense ratio applicable to investors.
For net asset value (NAV) purchases, a 0.50% contingent deferred sales charge (CDSC) may apply to shares redeemed within 18 months.
During periods of rising inflation, fund yields can vary significantly from month-to-month and may not be repeated.
With Waiver means the performance quote reflects any applicable expense reductions and fee waivers.
30-Day SEC Yield is calculated using the net income (interest and dividends) per share earned over a trailing 30-day period (annualized), divided by the fund’s share price at the end of that period. It may not equal the fund’s actual income distribution rate, which reflects the fund’s past dividends paid to shareholders.
The Taxable Equivalent Yield assumes the maximum regular federal income tax rate and the Medicare tax. Dividends are general subject to state and local taxes, if any. For investors subject to the alternative minimum tax, a small portion of fund dividends may be taxable. Distributions of capital gains may be taxable.
Public Offering Price – the purchase price for each share of the fund on a given day. It includes the maximum initial sales charge, if any.
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.

SHDAX Western Asset Short Duration Municipal Income Fund

Popular Documents

Overview

Fund Facts

Fund description

Sales Charges, Expenses & Fees

Identifiers

Average Annual Total Returns As of 09/30/2025

Class A

Top Sectors

Additional Fund Info

Manager and Commentary

About the Team

Latest Insights

Performance

Average Annual Total Returns

Ratings ³

Portfolio

Assets

Positions

Portfolio Statistics

State / U.S. Territory Allocation

Holdings
As of 09/30/2025 (Updated Monthly)

Distributions & Tax

Federal ID Number 593766193

Distributions per Share ($)

Supplemental Tax Information

Tax-Exempt Income By Jurisdiction

Pricing

Pricing History

November 2025

November 2025

Daily Fund Prices

Share Prices

52-Week Range

Documents

Risks

Important Information

Footnotes

Sunday	Monday	Tuesday	Wednesday	Thursday	Friday	Saturday

Sunday	Monday	Tuesday	Wednesday	Thursday	Friday	Saturday

Individual Investor

Financial Professional

Institutional Investor

SHDAX Western Asset Short Duration Municipal Income Fund

Popular Documents

Overview

Fund description

Sales Charges, Expenses & Fees

Identifiers

Class A

Top Sectors

Additional Fund Info

Manager and Commentary

About the Team

Latest Insights

Performance

Average Annual Total Returns

Ratings 3

Portfolio

State / U.S. Territory Allocation

Distributions & Tax

Federal ID Number 593766193

Pricing

Chart

Daily Fund Prices

Documents

Risks

Important Information

Footnotes

Ratings ³