Closed-End Funds Advised by Legg Mason Partners Fund Advisor, LLC Announce Board Approval of New Management & Subadvisory Con...
02 Aprile 2020 - 2:30PM
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Opportunity Trust Inc. (NYSE:IGI), Western Asset Managed
Municipals Fund Inc. (NYSE: MMU), Western Asset Middle
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Opportunity Trust Inc. (NYSE: MTT), Western Asset Municipal
High Income Fund Inc. (NYSE: MHF), Western Asset Municipal
Partners Fund Inc. (NYSE: MNP), and Western Asset Variable
Rate Strategic Fund Inc. (NYSE: GFY) (each, a “Fund” and,
together, the “Funds”)
As was previously announced, on February 18, 2020, Franklin
Resources, Inc. (“Franklin Resources”) and Legg Mason, Inc. (“Legg
Mason”) announced that they have entered into a definitive
agreement for Franklin Resources to acquire Legg Mason in an
all-cash transaction. The Funds’ investment manager, Legg Mason
Partners Fund Advisor, LLC, is a wholly-owned subsidiary of Legg
Mason and would become a wholly-owned subsidiary of Franklin
Resources as a result of the transaction. The Funds are sub-advised
by other affiliates of Legg Mason that also would be acquired by
Franklin Resources as a result of the transaction. The transaction
is subject to approval by Legg Mason’s shareholders and customary
closing conditions, including receipt of applicable regulatory
approvals. Subject to such approvals and the satisfaction of the
other conditions, the transaction is expected to be consummated in
the latter part of 2020.
Under the Investment Company Act of 1940, as amended,
consummation of the transaction will result in the automatic
termination of the management and subadvisory agreement(s).
Therefore, each Fund’s Board of Directors has approved new
management and subadvisory agreement(s) that will be presented to
the stockholders of the Fund for their approval. Additional
informational materials will be mailed to stockholders. In
connection with the proposal to approve the new investment
management contract for each Fund (any new sub-advisory
contract(s), if applicable), each Fund intends to file a definitive
proxy statement with the Securities and Exchange Commission (the
“SEC”). Stockholders are advised to read their Fund’s proxy
statement when it becomes available because it will contain
important information. When filed with the SEC, the proxy statement
and other documents filed by the Funds will become available for
free on the SEC website, www.sec.gov. Copies of the proxy statement
will also be mailed to each stockholder of record as of the record
date for the special stockholder meeting.
An investment in a Fund involves risk, including loss of
principal. Investment return and the value of shares will
fluctuate. The rapid and global spread of a highly contagious novel
coronavirus respiratory disease, designated COVID-19, first
detected in China in December 2019, has resulted in extreme
volatility in the financial markets and severe losses; reduced
liquidity of many instruments; restrictions on international and,
in some cases, local travel, significant disruptions to business
operations (including business closures); strained healthcare
systems; disruptions to supply chains, consumer demand and employee
availability; and widespread uncertainty regarding the duration and
long-term effects of this pandemic. Some sectors of the economy and
individual issuers have experienced particularly large losses. In
addition, the COVID-19 pandemic may result in a sustained economic
downturn or a global recession, domestic and foreign political and
social instability, damage to diplomatic and international trade
relations and increased volatility and/or decreased liquidity in
the securities markets. The ultimate economic fallout from the
pandemic, and the long-term impact on economies, markets,
industries and individual issuers, are not known. The U.S.
government and the Federal Reserve, as well as certain foreign
governments and central banks, are taking extraordinary actions to
support local and global economies and the financial markets in
response to the COVID-19 pandemic, including by pushing interest
rates to very low levels. This and other government intervention
into the economy and financial markets to address the COVID-19
pandemic may not work as intended, particularly if the efforts are
perceived by investors as being unlikely to achieve the desired
results. The COVID-19 pandemic could adversely affect the value and
liquidity of a Fund’s investments, and negatively impact the Fund’s
performance. In addition, the outbreak of COVID-19, and measures
taken to mitigate its effects, could result in disruptions to the
services provided to a Fund by its service providers.
Any data and commentary provided in this press release are for
informational purposes only. This press release may contain
statements regarding plans and expectations for the future that
constitute forward-looking statements within the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are
based on each Fund’s current plans and expectations, and are
subject to risks and uncertainties that could cause actual results
to differ materially from those described in the forward-looking
statements. Additional information concerning such risks and
uncertainties are contained in each Fund’s filings with the
SEC.
For more information, please call Investor Relations:
1-888-777-0102, or consult the Funds’ web site at www.lmcef.com.
Hard copies of the Funds’ complete audited financial statements are
available free of charge upon request.
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Media Contact: Fund Investor Services-1-888-777-0102
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