WEA Western Asset Premier Bond Fund

Western Asset Premier Bond Fund (NYSE: WEA) announces its portfolio composition as of June 30, 2010.

Investment Objective: The Fund's investment objective is to provide current income and capital appreciation by investing primarily in a diversified portfolio of investment grade bonds.

Portfolio Composition*:

 

Asset Allocation

Mortgage-Backed Securities

   

30.8%

Investment Grade Corporate Bonds

26.0%

High Yield Corporate Bonds

19.2%

Asset-Backed Securities

12.5%

Inflation-Linked

2.1%

Government

1.3%

Cash & Other Securities

8.1%

 

Credit Quality Allocation1

AAA 30.3% AA 6.9% A 9.5% BBB 24.1% BB 11.0% B 8.3% CCC 7.0% CC 1.8% C 0.1% D 0.9% Not Rated 0.1%

The investment manager has assigned its own ratings to securities not rated by S&P, Moody's or Fitch. Of the credit quality allocation totals above, Western Asset has rated 8.0% of the portfolio as equivalent to AAA, 0.2% as BB, 0.3% as B, 0.3 as CCC, 0.1% as C and 0.9% as D.

Top Ten Investment Grade Industries

Transportation   5.7%   Consumer Cyclical 5.5% Energy 2.6% Banking 2.3% Electric 2.1% Communications 2.0% Basic Industry 1.6% Finance Companies 1.2% Natural Gas 1.0% Capital Goods 0.9%  

Top Five High Yield Industries

Consumer Cyclical 6.0% Communications 3.7% Electric 2.0% Energy 1.6% Consumer Non Cyclical 1.4%  

Average Life (years)

6.39

Effective Duration (years)

2.60

Average Coupon (%)

5.23  

Portfolio Statistics:

 

Inception Date

March 28, 2002

Inception Price

$15.00

Total Assets

$226,116,082

Net Assets**

$154,116,082

Loans***

0.00%

Preferred Shares***

31.84%

Reverse Repos***

0.00%  

Market Price

$13.93

NAV

$13.21 (Daily NAV is available on market quotation systems using the symbol XWEAX.)   Distribution Rate $0.1100 per share Frequency Monthly (declared monthly, paid monthly)

* Portfolio holdings and weightings are historical and are presented here for informational purposes only and do not include derivatives such as Futures Contracts, Options Written, and Credit Default Swaps. They are subject to change at any time.

** The difference between total assets and net assets, if any, is due primarily to the Fund’s use of borrowings and other assets and 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.

*** Percentages based on total assets.

Dividends and distributions represent past performance. Past performance is no guarantee of future results and there is no guarantee that dividends and distributions will continue.

Western Asset Premier Bond Fund, a diversified closed-end investment management company, is advised by Western Asset Management Company, a wholly owned subsidiary of Legg Mason, Inc. and is sub-advised by Western Asset Management Company Limited, Western Asset Management Company Pte. Ltd., and Western Asset Management Company Ltd, affiliates of the adviser.

An investment in the Fund involves risk, including loss of principal. Investment return and the value of shares will fluctuate. Fixed income securities are subject to credit risk, inflation risk, call risk, and interest rate risks. As interest rates rise, bond prices fall, reducing the value of the Fund's share price. The credit quality ratings shown may change over time.

For more information, please call Fund Investor Relations at 888-777-0102 or consult the Fund’s web site at www.leggmason.com/cef.

1 Credit quality is a measure of a bond issuer's ability to repay interest and a principal in a timely manner. The credit ratings shown are based on each portfolio security's rating as provided by the following Nationally Recognized Statistical Rating Organizations ("NRSRO"): Standard and Poor's ("S&P"), Moody's Investors Service ("Moody's"), Fitch Ratings, Ltd. In the case where a security is not rated by an NRSRO the rating is determined by Western Asset Management ("WAM"), the fund's investment manager (and not an NRSRO). For this purpose, if two or more of the other NRSROs have assigned a rating to a security, the highest rating is used. If a security is not rated by a NRSRO, WAM will analyze comparable securities with similar characteristics (size, capital structure, industry sector, risks, etc.) and assign its own rating using denominations similar to those of S&P. Unrated securities assigned a rating by WAM are specified separately in the credit quality breakdown being shown. A negative allocation may be apparent, which is primarily due to the Fund's unsettled trade activity. Currency forwards and futures are not rated by a NRSRO or WAM and are listed as "Non Rated". The credit quality of the investments in the Fund's portfolio does not apply to the stability or safety of the Fund. These ratings are updated by WAM monthly and may change over time. Please note, WAM is not a NRSRO nor has the Fund itself been rated by a NRSRO.

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