2025-06-11LMF3300_WesternAssetHighYieldFund_ClassA


Western Asset High Yield Fund
Class A [WAYAX]
Annual Shareholder Report \| May 31, 2025

This annual shareholder report contains important information about Western Asset High Yield Fund for the period June 1, 2024, to May 31, 2025.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at 877-6LM-FUND/656-3863.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class A	$101	0.97%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended May 31, 2025, Class A shares of Western Asset High Yield Fund returned 9.23%. The Fund compares its performance to the Bloomberg U.S. Corporate High Yield - 2% Issuer Cap Index, which returned 9.32% for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Opportunistic allocation to collateralized loan obligations
↑	Underweight the capital goods sector
↑	Issue selection within the information technology and consumer non-cyclical sectors


Top detractors from performance:
↓	Overweight the banking sector
↓	Issue selection within the consumer cyclical sector

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

The Fund’s past performance is not necessarily an indication of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

VALUE OF A $10,000 INVESTMENT ($9,575 AFTER MAXIMUM APPLICABLE SALES CHARGE) –
Class A 5/31/2015 — 5/31/2025

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended May 31, 2025


	1 Year	5 Year	10 Year
Class A	9.23	5.10	3.90
Class A (with sales charge)	5.06	4.19	3.45
Bloomberg U.S. Aggregate Index	5.46	-0.90	1.49
Bloomberg U.S. Corporate High Yield - 2% Issuer Cap Index	9.32	5.77	5.02

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

Performance for periods beginning prior to August 15, 2022, reflects a higher maximum sales charge in effect at that time. Performance for periods beginning after August 15, 2022, reflects the current maximum sales charge.

For current month-end performance, please call Franklin Templeton at 877-6LM-FUND/656-3863 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

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

KEY FUND STATISTICS (as of May 31, 2025)


Total Net Assets	$221,959,458
Total Number of Portfolio Holdings^*	386
Total Management Fee Paid	$1,165,019
Portfolio Turnover Rate	41%

*	Does not include derivatives, except purchased options, if any.


	WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
	Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
	• prospectus • proxy voting information • financial information • holdings • tax information

HOUSEHOLDING

You will receive the Fund’s shareholder reports every six months. In addition, you will receive an annual updated summary prospectus (detail prospectus available upon request). To reduce Fund expenses, we try to identify related shareholders in a household and send only one copy of the shareholder reports and summary prospectus. This process, called “householding,” will continue indefinitely unless you instruct us otherwise. If you prefer not to have these documents householded, please call us at 877-6LM-FUND/656-3863. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.


Western Asset High Yield Fund
Class C [WAYCX]
Annual Shareholder Report \| May 31, 2025

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class C	$179	1.72%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended May 31, 2025, Class C shares of Western Asset High Yield Fund returned 8.58%. The Fund compares its performance to the Bloomberg U.S. Corporate High Yield - 2% Issuer Cap Index, which returned 9.32% for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Opportunistic allocation to collateralized loan obligations
↑	Underweight the capital goods sector
↑	Issue selection within the information technology and consumer non-cyclical sectors


Top detractors from performance:
↓	Overweight the banking sector
↓	Issue selection within the consumer cyclical sector

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Class C 5/31/2015 — 5/31/2025

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended May 31, 2025


	1 Year	5 Year	10 Year
Class C	8.58	4.34	3.11
Class C (with sales charge)	7.58	4.34	3.11
Bloomberg U.S. Aggregate Index	5.46	-0.90	1.49
Bloomberg U.S. Corporate High Yield - 2% Issuer Cap Index	9.32	5.77	5.02

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at 877-6LM-FUND/656-3863 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

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

KEY FUND STATISTICS (as of May 31, 2025)


Total Net Assets	$221,959,458
Total Number of Portfolio Holdings^*	386
Total Management Fee Paid	$1,165,019
Portfolio Turnover Rate	41%

*	Does not include derivatives, except purchased options, if any.


	WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
	Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
	• prospectus • proxy voting information • financial information • holdings • tax information

HOUSEHOLDING


Western Asset High Yield Fund
Class R [WAYRX]
Annual Shareholder Report \| May 31, 2025

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class R	$136	1.30%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended May 31, 2025, Class R shares of Western Asset High Yield Fund returned 8.87%. The Fund compares its performance to the Bloomberg U.S. Corporate High Yield - 2% Issuer Cap Index, which returned 9.32% for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Opportunistic allocation to collateralized loan obligations
↑	Underweight the capital goods sector
↑	Issue selection within the information technology and consumer non-cyclical sectors


Top detractors from performance:
↓	Overweight the banking sector
↓	Issue selection within the consumer cyclical sector

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Class R 5/31/2015 — 5/31/2025

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended May 31, 2025


	1 Year	5 Year	10 Year
Class R	8.87	4.77	3.55
Bloomberg U.S. Aggregate Index	5.46	-0.90	1.49
Bloomberg U.S. Corporate High Yield - 2% Issuer Cap Index	9.32	5.77	5.02

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at 877-6LM-FUND/656-3863 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

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

KEY FUND STATISTICS (as of May 31, 2025)


Total Net Assets	$221,959,458
Total Number of Portfolio Holdings^*	386
Total Management Fee Paid	$1,165,019
Portfolio Turnover Rate	41%

*	Does not include derivatives, except purchased options, if any.


	WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
	Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
	• prospectus • proxy voting information • financial information • holdings • tax information

HOUSEHOLDING


Western Asset High Yield Fund
Class I [WAHYX]
Annual Shareholder Report \| May 31, 2025

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class I	$79	0.75%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended May 31, 2025, Class I shares of Western Asset High Yield Fund returned 9.47%. The Fund compares its performance to the Bloomberg U.S. Corporate High Yield - 2% Issuer Cap Index, which returned 9.32% for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Opportunistic allocation to collateralized loan obligations
↑	Underweight the capital goods sector
↑	Issue selection within the information technology and consumer non-cyclical sectors


Top detractors from performance:
↓	Overweight the banking sector
↓	Issue selection within the consumer cyclical sector

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $1,000,000 INVESTMENT – Class I 5/31/2015 — 5/31/2025

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended May 31, 2025


	1 Year	5 Year	10 Year
Class I	9.47	5.33	4.15
Bloomberg U.S. Aggregate Index	5.46	-0.90	1.49
Bloomberg U.S. Corporate High Yield - 2% Issuer Cap Index	9.32	5.77	5.02

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at 877-6LM-FUND/656-3863 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

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

KEY FUND STATISTICS (as of May 31, 2025)


Total Net Assets	$221,959,458
Total Number of Portfolio Holdings^*	386
Total Management Fee Paid	$1,165,019
Portfolio Turnover Rate	41%

*	Does not include derivatives, except purchased options, if any.


	WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
	Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
	• prospectus • proxy voting information • financial information • holdings • tax information

HOUSEHOLDING


Western Asset High Yield Fund
Class IS [WAHSX]
Annual Shareholder Report \| May 31, 2025

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class IS	$68	0.65%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended May 31, 2025, Class IS shares of Western Asset High Yield Fund returned 9.71%. The Fund compares its performance to the Bloomberg U.S. Corporate High Yield - 2% Issuer Cap Index, which returned 9.32% for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Opportunistic allocation to collateralized loan obligations
↑	Underweight the capital goods sector
↑	Issue selection within the information technology and consumer non-cyclical sectors


Top detractors from performance:
↓	Overweight the banking sector
↓	Issue selection within the consumer cyclical sector

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $1,000,000 INVESTMENT – Class IS 5/31/2015 — 5/31/2025

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended May 31, 2025


	1 Year	5 Year	10 Year
Class IS	9.71	5.47	4.23
Bloomberg U.S. Aggregate Index	5.46	-0.90	1.49
Bloomberg U.S. Corporate High Yield - 2% Issuer Cap Index	9.32	5.77	5.02

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at 877-6LM-FUND/656-3863 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

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

KEY FUND STATISTICS (as of May 31, 2025)


Total Net Assets	$221,959,458
Total Number of Portfolio Holdings^*	386
Total Management Fee Paid	$1,165,019
Portfolio Turnover Rate	41%

*	Does not include derivatives, except purchased options, if any.


	WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
	Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
	• prospectus • proxy voting information • financial information • holdings • tax information

HOUSEHOLDING

(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.

(f) Pursuant to Item 19(a) (1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

The Board of Trustees of the Registrant has determined that Robert Abeles, Jr., possesses the technical attributes identified in Item 3 to Form N-CSR to qualify as an “audit committee financial expert,” and has designated Mr. Abeles, Jr. as the Audit Committee’s financial expert. Mr. Abeles, Jr. is an “independent” Trustee pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.

Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.

a) Audit Fees. The aggregate fees billed in the last two fiscal years ending May 31, 2024 and May 31, 2025 (the “Reporting Periods”) for professional services rendered by the Registrant’s principal accountant (the “Auditor”) for the audit of the Registrant’s annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $169,204 in May 31, 2024 and $180,857 in May 31, 2025.

b) Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the Registrant’s financial statements were $0 in May 31, 2024 and $0 in May 31, 2025.

(c) Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning (“Tax Services”) were $30,000 in May 31, 2024 and $30,000 in May 31, 2025. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.

There were no fees billed for tax services by the Auditors to the Registrant’s investment manager and any entity controlling, controlled by, or under common control with the investment manager that provides ongoing services to the Registrant (“Service Affiliates”) during the Reporting Periods that required pre-approval by the Audit Committee.

d) All Other Fees. The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor to the Registrant, other than the services reported in paragraphs (a) through (c) of this item, were $0 in May 31, 2024 and $0 in May 31, 2025.

There were no other non-audit services rendered by the Auditor to the Service Affiliates requiring pre-approval by the Audit Committee in the Reporting Periods.

(e) Audit Committee’s pre–approval policies and procedures described in paragraph (c) (7) of Rule 2-01 of Regulation S-X.

(1) The Charter for the Audit Committee (the “Committee”) of the Board of each registered investment company (the “Fund”) advised by the Registrant’s investment manager or one of their affiliates (each, an “Adviser”) requires that the Committee shall approve (a) all audit and permissible non-audit services to be provided to the Fund and (b) all permissible non-audit services to be provided by the Fund’s independent auditors to the Adviser and any service providers controlling, controlled by or under common control with the Adviser that provide ongoing services to the Fund (“Covered Service Providers”) if the engagement relates directly to the operations and financial reporting of the Fund. The Committee may implement policies and procedures by which such services are approved other than by the full Committee.

The Committee shall not approve non-audit services that the Committee believes may impair the independence of the auditors. As of the date of the approval of this Audit Committee Charter, permissible non-audit services include any professional services (including tax services), that are not prohibited services as described below, provided to the Fund by the independent auditors, other than those provided to the Fund in connection with an audit or a review of the financial statements of the Fund. Permissible non-audit services may not include: (i) bookkeeping or other services related to the accounting records or financial statements of the Fund; (ii) financial information systems design and implementation; (iii) appraisal or valuation services, fairness opinions or contribution-in-kind reports; (iv) actuarial services; (v) internal audit outsourcing services; (vi) management functions or human resources; (vii) broker or dealer, investment adviser or investment banking services; (viii) legal services and expert services unrelated to the audit; and (ix) any other service the Public Company Accounting Oversight Board determines, by regulation, is impermissible.

Pre-approval by the Committee of any permissible non-audit services is not required so long as: (i) the aggregate amount of all such permissible non-audit services provided to the Fund, the Adviser and the Covered Service Providers constitutes not more than 5% of the total amount of revenues paid to the independent auditors during the fiscal year in which the permissible non-audit services are provided to (a) the Fund, (b) the Adviser and (c) any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Fund during the fiscal year in which the services are provided that would have to be approved by the Committee; (ii) the permissible non-audit services were not recognized by the Fund at the time of the engagement to be non-audit services; and (iii) such services are promptly brought to the attention of the Committee and approved by the Committee (or its delegate(s)) prior to the completion of the audit.

(2) None of the services described in paragraphs (b) through (d) of this Item were performed in reliance on paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(g) Non-audit fees billed by the Auditor for services rendered to the Registrant and the Service Affiliates during the reporting period were $342,635 in May 31, 2024 and $334,889 in May 31, 2025.

(h) Yes. The Registrant’s Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval), is compatible with maintaining the Auditor’s independence. All services provided by the Auditor to the Registrant or to the Service Affiliates, which were required to be pre-approved, were pre-approved as required.

Schedule of Investments

May 31, 2025

Western Asset High Yield Fund

(Percentages shown based on Fund net assets)

Security	Rate	Maturity Date	Face Amount†	Value
Corporate Bonds & Notes — 83.7%
Communication Services — 11.3%
Diversified Telecommunication Services — 2.2%
Altice Financing SA, Senior Secured Notes	5.000%	1/15/28	340,000	$266,530 (a)
Altice Financing SA, Senior Secured Notes	5.750%	8/15/29	1,400,000	1,071,235 (a)
Altice France Holding SA, Senior Secured Notes	10.500%	5/15/27	1,030,000	369,106 (a)
Altice France Holding SA, Senior Secured Notes	6.000%	2/15/28	880,000	321,271 (a)
Altice France SA, Senior Secured Notes	5.125%	7/15/29	820,000	692,685 (a)
Altice France SA, Senior Secured Notes	5.500%	10/15/29	760,000	646,305 (a)
Fibercop SpA, Senior Secured Notes	6.000%	9/30/34	319,000	300,303 (a)
Level 3 Financing Inc., Senior Secured Notes	11.000%	11/15/29	960,000	1,090,239 (a)
Total Diversified Telecommunication Services				4,757,674
Entertainment — 0.9%
Allen Media LLC/Allen Media Co-Issuer Inc., Senior Notes	10.500%	2/15/28	1,300,000	474,500 (a)
AMC Entertainment Holdings Inc., Senior Secured Notes	7.500%	2/15/29	840,000	657,229 (a)
Banijay Entertainment SAS, Senior Secured Notes	8.125%	5/1/29	440,000	457,007 (a)
Flutter Treasury DAC, Senior Secured Notes	5.875%	6/4/31	500,000	502,812 (a)(b)
Total Entertainment				2,091,548
Interactive Media & Services — 0.3%
Snap Inc., Senior Notes	6.875%	3/1/33	500,000	506,968 (a)
ZipRecruiter Inc., Senior Notes	5.000%	1/15/30	250,000	215,858 (a)
Total Interactive Media & Services				722,826
Media — 6.1%
AMC Networks Inc., Senior Secured Notes	10.250%	1/15/29	400,000	424,402 (a)
CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes	4.750%	2/1/32	490,000	453,924 (a)
CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes	4.500%	5/1/32	240,000	218,608
CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes	4.250%	1/15/34	4,140,000	3,576,683 (a)
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., Senior Secured Notes	3.700%	4/1/51	660,000	425,246
DirecTV Financing LLC/DirecTV Financing Co-Obligor Inc., Senior Secured Notes	5.875%	8/15/27	130,000	128,054 (a)

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Schedule of Investments (cont’d)

May 31, 2025

Western Asset High Yield Fund

(Percentages shown based on Fund net assets)

Security	Rate	Maturity Date	Face Amount†	Value
Media — continued
DirecTV Financing LLC/DirecTV Financing Co-Obligor Inc., Senior Secured Notes	10.000%	2/15/31	440,000	$428,570 (a)
DISH DBS Corp., Senior Notes	7.750%	7/1/26	1,707,000	1,469,060
DISH DBS Corp., Senior Notes	5.125%	6/1/29	180,000	118,499
DISH DBS Corp., Senior Secured Notes	5.750%	12/1/28	1,080,000	916,004 (a)
EchoStar Corp., Senior Secured Notes	10.750%	11/30/29	1,325,000	1,332,387
EchoStar Corp., Senior Secured Notes (6.750% Cash or 6.750% PIK)	6.750%	11/30/30	459,037	395,058 (c)
Getty Images Inc., Senior Secured Notes	11.250%	2/21/30	70,000	69,540 (a)
Gray Media Inc., Senior Notes	5.375%	11/15/31	1,130,000	807,803 (a)
iHeartCommunications Inc., Senior Secured Notes	9.125%	5/1/29	60,000	49,874 (a)
iHeartCommunications Inc., Senior Secured Notes	7.000%	1/15/31	192,000	143,091 (a)
McClatchy Media Co. LLC, Senior Secured Notes (11.000% Cash or 12.500% PIK)	11.000%	12/1/31	1,737,373	1,856,817 (a)(c)
Univision Communications Inc., Senior Secured Notes	8.000%	8/15/28	530,000	530,816 (a)
Virgin Media Finance PLC, Senior Notes	5.000%	7/15/30	200,000	181,460 (a)
Total Media				13,525,896
Wireless Telecommunication Services — 1.8%
CSC Holdings LLC, Senior Notes	11.250%	5/15/28	550,000	544,688 (a)
CSC Holdings LLC, Senior Notes	11.750%	1/31/29	1,220,000	1,144,447 (a)
CSC Holdings LLC, Senior Notes	6.500%	2/1/29	490,000	391,397 (a)
CSC Holdings LLC, Senior Notes	4.500%	11/15/31	1,270,000	859,697 (a)
CSC Holdings LLC, Senior Notes	5.000%	11/15/31	970,000	442,039 (a)
Vmed O2 UK Financing I PLC, Senior Secured Notes	4.750%	7/15/31	630,000	579,042 (a)
Total Wireless Telecommunication Services				3,961,310

Total Communication Services				25,059,254
Consumer Discretionary — 17.0%
Automobile Components — 1.9%
Adient Global Holdings Ltd., Senior Notes	7.500%	2/15/33	280,000	277,980 (a)
American Axle & Manufacturing Inc., Senior Notes	5.000%	10/1/29	1,150,000	1,046,548
Clarios Global LP/Clarios US Finance Co., Senior Secured Notes	6.750%	2/15/30	340,000	346,547 (a)
Dornoch Debt Merger Sub Inc., Senior Notes	6.625%	10/15/29	250,000	192,456 (a)
Garrett Motion Holdings Inc./Garrett LX I Sarl, Senior Notes	7.750%	5/31/32	590,000	602,590 (a)

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Western Asset High Yield Fund

(Percentages shown based on Fund net assets)

Security	Rate	Maturity Date	Face Amount†	Value

Automobile Components — continued
JB Poindexter & Co. Inc., Senior Notes	8.750%	12/15/31	540,000	$535,996 (a)
ZF North America Capital Inc., Senior Notes	7.125%	4/14/30	330,000	318,459 (a)
ZF North America Capital Inc., Senior Notes	6.875%	4/23/32	890,000	817,131 (a)
Total Automobile Components				4,137,707
Automobiles — 1.6%
Ford Motor Co., Senior Notes	3.250%	2/12/32	1,500,000	1,238,450
Nissan Motor Co. Ltd., Senior Notes	4.810%	9/17/30	870,000	801,731 (a)
PM General Purchaser LLC, Senior Secured Notes	9.500%	10/1/28	2,270,000	1,470,393 (a)
Total Automobiles				3,510,574
Diversified Consumer Services — 0.7%
Adtalem Global Education Inc., Senior Secured Notes	5.500%	3/1/28	568,000	563,939 (a)
Carriage Services Inc., Senior Notes	4.250%	5/15/29	550,000	515,093 (a)
WW International Inc., Senior Secured Notes	4.500%	4/15/29	1,614,000	516,480 *(a)(d)
Total Diversified Consumer Services				1,595,512
Hotels, Restaurants & Leisure — 10.1%
888 Acquisitions Ltd., Senior Secured Notes	7.558%	7/15/27	470,000 EUR	536,690 (a)
Boyne USA Inc., Senior Notes	4.750%	5/15/29	330,000	317,339 (a)
Caesars Entertainment Inc., Senior Notes	6.000%	10/15/32	510,000	489,556 (a)
Caesars Entertainment Inc., Senior Secured Notes	7.000%	2/15/30	260,000	266,956 (a)
Caesars Entertainment Inc., Senior Secured Notes	6.500%	2/15/32	900,000	907,803 (a)
Carnival Corp., Senior Notes	6.000%	5/1/29	460,000	461,500 (a)
Carnival Corp., Senior Notes	5.875%	6/15/31	870,000	871,066 (a)
Carnival Corp., Senior Notes	6.125%	2/15/33	1,750,000	1,755,415 (a)
Fertitta Entertainment LLC/Fertitta Entertainment Finance Co. Inc., Senior Secured Notes	4.625%	1/15/29	230,000	215,868 (a)
Full House Resorts Inc., Senior Secured Notes	8.250%	2/15/28	1,200,000	1,148,934 (a)
Las Vegas Sands Corp., Senior Notes	5.625%	6/15/28	70,000	70,178
Las Vegas Sands Corp., Senior Notes	3.900%	8/8/29	1,400,000	1,314,039
Las Vegas Sands Corp., Senior Notes	6.000%	6/14/30	480,000	485,461
Life Time Inc., Senior Secured Notes	6.000%	11/15/31	320,000	320,928 (a)
Marston’s Issuer PLC, Secured Notes (SONIA + 2.669%)	6.984%	7/16/35	1,232,000 GBP	1,447,567 (e)(f)
Melco Resorts Finance Ltd., Senior Notes	4.875%	6/6/25	200,000	199,827 (a)
Melco Resorts Finance Ltd., Senior Notes	5.375%	12/4/29	640,000	589,368 (a)
Melco Resorts Finance Ltd., Senior Notes	7.625%	4/17/32	550,000	546,331 (a)

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Schedule of Investments (cont’d)

May 31, 2025

Western Asset High Yield Fund

(Percentages shown based on Fund net assets)

Security	Rate	Maturity Date	Face Amount†	Value

Hotels, Restaurants & Leisure — continued
NCL Corp. Ltd., Senior Secured Notes	8.125%	1/15/29	460,000	$484,622 (a)
NCL Finance Ltd., Senior Notes	6.125%	3/15/28	1,710,000	1,721,946 (a)
Royal Caribbean Cruises Ltd., Senior Notes	3.700%	3/15/28	400,000	386,222
Royal Caribbean Cruises Ltd., Senior Notes	5.625%	9/30/31	410,000	405,495 (a)
Royal Caribbean Cruises Ltd., Senior Notes	6.250%	3/15/32	440,000	446,215 (a)
Royal Caribbean Cruises Ltd., Senior Notes	6.000%	2/1/33	840,000	843,540 (a)
Sands China Ltd., Senior Notes	2.850%	3/8/29	200,000	181,499
Viking Cruises Ltd., Senior Notes	5.875%	9/15/27	500,000	500,063 (a)
Viking Cruises Ltd., Senior Notes	7.000%	2/15/29	790,000	796,074 (a)
Viking Cruises Ltd., Senior Notes	9.125%	7/15/31	1,420,000	1,525,505 (a)
Viking Ocean Cruises Ship VII Ltd., Senior Secured Notes	5.625%	2/15/29	391,000	386,688 (a)
VOC Escrow Ltd., Senior Secured Notes	5.000%	2/15/28	709,000	699,788 (a)
Wynn Macau Ltd., Senior Notes	5.500%	1/15/26	200,000	199,402 (a)
Wynn Macau Ltd., Senior Notes	5.500%	10/1/27	570,000	561,011 (a)
Wynn Macau Ltd., Senior Notes	5.625%	8/26/28	270,000	260,472 (a)
Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., Senior Notes	5.125%	10/1/29	220,000	214,686 (a)
Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., Senior Notes	7.125%	2/15/31	870,000	913,049 (a)
Total Hotels, Restaurants & Leisure				22,471,103
Household Durables — 0.3%
Newell Brands Inc., Senior Notes	8.500%	6/1/28	310,000	321,485 (a)
TopBuild Corp., Senior Notes	3.625%	3/15/29	350,000	327,933 (a)
Total Household Durables				649,418
Specialty Retail — 2.2%
Foot Locker Inc., Senior Notes	4.000%	10/1/29	920,000	875,159 (a)
Global Auto Holdings Ltd./AAG FH UK Ltd., Senior Notes	11.500%	8/15/29	200,000	185,694 (a)
Global Auto Holdings Ltd./AAG FH UK Ltd., Senior Notes	8.750%	1/15/32	780,000	606,025 (a)
Michaels Cos. Inc., Senior Secured Notes	5.250%	5/1/28	1,360,000	933,902 (a)
PetSmart Inc./PetSmart Finance Corp., Senior Notes	7.750%	2/15/29	590,000	575,054 (a)
Sally Holdings LLC/Sally Capital Inc., Senior Notes	6.750%	3/1/32	550,000	559,356
Upbound Group Inc., Senior Notes	6.375%	2/15/29	1,110,000	1,063,462 (a)
Total Specialty Retail				4,798,652

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Western Asset High Yield Fund

(Percentages shown based on Fund net assets)

Security	Rate	Maturity Date	Face Amount†	Value

Textiles, Apparel & Luxury Goods — 0.2%
Saks Global Enterprises LLC, Senior Secured Notes	11.000%	12/15/29	1,200,000	$543,000 (a)

Total Consumer Discretionary				37,705,966
Consumer Staples — 0.4%
Beverages — 0.2%
Primo Water Holdings Inc./Triton Water Holdings Inc., Senior Notes	6.250%	4/1/29	380,000	380,905 (a)
Food Products — 0.2%
Simmons Foods Inc./Simmons Prepared Foods Inc./Simmons Pet Food Inc./Simmons Feed Ingredients Inc., Secured Notes	4.625%	3/1/29	480,000	447,829 (a)

Total Consumer Staples				828,734
Energy — 10.3%
Energy Equipment & Services — 0.6%
Noble Finance II LLC, Senior Notes	8.000%	4/15/30	550,000	548,471 (a)
Shelf Drilling Holdings Ltd., Senior Secured Notes	9.625%	4/15/29	850,000	635,858 (a)
Sunnova Energy Corp., Senior Notes	5.875%	9/1/26	640,000	190,800 (a)
Total Energy Equipment & Services				1,375,129
Oil, Gas & Consumable Fuels — 9.7%
Blue Racer Midstream LLC/Blue Racer Finance Corp., Senior Notes	6.625%	7/15/26	270,000	270,900 (a)
Blue Racer Midstream LLC/Blue Racer Finance Corp., Senior Notes	7.250%	7/15/32	1,340,000	1,390,403 (a)
Chord Energy Corp., Senior Notes	6.750%	3/15/33	880,000	874,632 (a)
CNX Midstream Partners LP, Senior Notes	4.750%	4/15/30	610,000	566,027 (a)
Crescent Energy Finance LLC, Senior Notes	9.250%	2/15/28	590,000	609,700 (a)
Crescent Energy Finance LLC, Senior Notes	7.625%	4/1/32	20,000	18,872 (a)
DCP Midstream Operating LP, Senior Notes	6.450%	11/3/36	50,000	50,610 (a)
DCP Midstream Operating LP, Senior Notes	6.750%	9/15/37	420,000	431,618 (a)
Energy Transfer LP, Junior Subordinated Notes (6.625% to 2/15/28 then 3 mo. USD LIBOR + 4.155%)	6.625%	2/15/28	170,000	168,069 (f)(g)
EQT Corp., Senior Notes	7.500%	6/1/30	1,080,000	1,172,936 (a)
EQT Corp., Senior Notes	6.500%	7/15/48	1,250,000	1,189,653 (a)
Expand Energy Corp., Senior Notes	4.750%	2/1/32	1,800,000	1,698,271
Howard Midstream Energy Partners LLC, Senior Notes	8.875%	7/15/28	530,000	554,709 (a)
Howard Midstream Energy Partners LLC, Senior Notes	7.375%	7/15/32	440,000	455,690 (a)

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Schedule of Investments (cont’d)

May 31, 2025

Western Asset High Yield Fund

(Percentages shown based on Fund net assets)

Security	Rate	Maturity Date	Face Amount†	Value

Oil, Gas & Consumable Fuels — continued
New Generation Gas Gathering LLC, Senior Secured Notes (3 mo. Term SOFR + 5.750%)	10.016%	9/30/29	1,124,324	$1,107,459 (a)(f)(h)(i)
Northern Oil & Gas Inc., Senior Notes	8.125%	3/1/28	750,000	753,677 (a)
Permian Resources Operating LLC, Senior Notes	8.000%	4/15/27	190,000	193,557 (a)
Permian Resources Operating LLC, Senior Notes	5.875%	7/1/29	500,000	494,168 (a)
Permian Resources Operating LLC, Senior Notes	9.875%	7/15/31	272,000	297,235 (a)
Permian Resources Operating LLC, Senior Notes	7.000%	1/15/32	970,000	995,642 (a)
Permian Resources Operating LLC, Senior Notes	6.250%	2/1/33	40,000	39,500 (a)
Petrobras Global Finance BV, Senior Notes	5.750%	2/1/29	150,000	152,150
Range Resources Corp., Senior Notes	8.250%	1/15/29	820,000	842,883
Range Resources Corp., Senior Notes	4.750%	2/15/30	230,000	221,221 (a)
Rockies Express Pipeline LLC, Senior Notes	6.750%	3/15/33	170,000	175,303 (a)
Summit Midstream Holdings LLC, Senior Secured Notes	8.625%	10/31/29	230,000	230,689 (a)
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp., Senior Notes	7.375%	2/15/29	270,000	274,863 (a)
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp., Senior Notes	6.000%	12/31/30	460,000	441,180 (a)
Venture Global Calcasieu Pass LLC, Senior Secured Notes	6.250%	1/15/30	800,000	811,518 (a)
Venture Global Calcasieu Pass LLC, Senior Secured Notes	4.125%	8/15/31	610,000	552,318 (a)
Venture Global Calcasieu Pass LLC, Senior Secured Notes	3.875%	11/1/33	170,000	145,361 (a)
Venture Global LNG Inc., Junior Subordinated Notes (9.000% to 9/30/29 then 5 year Treasury Constant Maturity Rate + 5.440%)	9.000%	9/30/29	1,630,000	1,538,949 (a)(f)(g)
Venture Global LNG Inc., Senior Secured Notes	7.000%	1/15/30	780,000	777,180 (a)
Venture Global LNG Inc., Senior Secured Notes	9.875%	2/1/32	1,210,000	1,288,010 (a)
Venture Global Plaquemines LNG LLC, Senior Secured Notes	7.500%	5/1/33	280,000	292,695 (a)
Venture Global Plaquemines LNG LLC, Senior Secured Notes	7.750%	5/1/35	90,000	94,854 (a)

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Western Asset High Yield Fund

(Percentages shown based on Fund net assets)

Security	Rate	Maturity Date	Face Amount†	Value

Oil, Gas & Consumable Fuels — continued
Vermilion Energy Inc., Senior Notes	7.250%	2/15/33	450,000	$394,279 (a)
Total Oil, Gas & Consumable Fuels				21,566,781

Total Energy				22,941,910
Financials — 11.4%
Banks — 3.3%
Banco Santander SA, Junior Subordinated Notes (9.625% to 11/21/33 then 5 year Treasury Constant Maturity Rate + 5.298%)	9.625%	5/21/33	800,000	921,832 (f)(g)
Bank of Nova Scotia, Junior Subordinated Notes (8.000% to 1/27/29 then 5 year Treasury Constant Maturity Rate + 4.017%)	8.000%	1/27/84	440,000	464,668 (f)
BNP Paribas SA, Junior Subordinated Notes (7.375% to 8/19/25 then USD 5 year ICE Swap Rate + 5.150%)	7.375%	8/19/25	600,000	603,475 (a)(f)(g)
BNP Paribas SA, Junior Subordinated Notes (7.750% to 8/16/29 then 5 year Treasury Constant Maturity Rate + 4.899%)	7.750%	8/16/29	700,000	729,920 (a)(f)(g)
BNP Paribas SA, Junior Subordinated Notes (8.000% to 8/22/31 then 5 year Treasury Constant Maturity Rate + 3.727%)	8.000%	8/22/31	240,000	251,561 (a)(f)(g)
Citigroup Inc., Junior Subordinated Notes (7.200% to 5/15/29 then 5 year Treasury Constant Maturity Rate + 2.905%)	7.200%	5/15/29	660,000	681,054 (f)(g)
Credit Agricole SA, Junior Subordinated Notes (8.125% to 12/23/25 then USD 5 year ICE Swap Rate + 6.185%)	8.125%	12/23/25	710,000	720,416 (a)(f)(g)
JPMorgan Chase & Co., Junior Subordinated Notes (6.500% to 4/1/30 then 5 year Treasury Constant Maturity Rate + 2.152%)	6.500%	4/1/30	320,000	325,132 (f)(g)
Lloyds Banking Group PLC, Junior Subordinated Notes (6.750% to 6/27/26 then 5 year Treasury Constant Maturity Rate + 4.815%)	6.750%	6/27/26	290,000	290,923 (f)(g)
Lloyds Banking Group PLC, Junior Subordinated Notes (8.000% to 3/27/30 then 5 year Treasury Constant Maturity Rate + 3.913%)	8.000%	9/27/29	970,000	1,022,012 (f)(g)
Toronto-Dominion Bank, Junior Subordinated Notes (7.250% to 7/31/29 then 5 year Treasury Constant Maturity Rate + 2.977%)	7.250%	7/31/84	470,000	481,337 (f)

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Schedule of Investments (cont’d)

May 31, 2025

Western Asset High Yield Fund

(Percentages shown based on Fund net assets)

Security	Rate	Maturity Date	Face Amount†	Value

Banks — continued
Toronto-Dominion Bank, Junior Subordinated Notes (8.125% to 10/31/27 then 5 year Treasury Constant Maturity Rate + 4.075%)	8.125%	10/31/82	720,000	$755,878 (f)
Total Banks				7,248,208
Capital Markets — 1.5%
Charles Schwab Corp., Junior Subordinated Notes (4.000% to 12/1/30 then 10 year Treasury Constant Maturity Rate + 3.079%)	4.000%	12/1/30	450,000	406,718 (f)(g)
Coinbase Global Inc., Senior Notes	3.625%	10/1/31	700,000	609,799 (a)
Credit Suisse AG AT1 Claim	—	—	4,040,000	0 *(h)(i)(j)
StoneX Group Inc., Senior Secured Notes	7.875%	3/1/31	480,000	505,908 (a)
UBS Group AG, Junior Subordinated Notes (7.000% to 8/10/30 then USD 5 year SOFR ICE Swap Rate + 3.077%)	7.000%	2/10/30	420,000	416,864 (a)(f)(g)
UBS Group AG, Junior Subordinated Notes (7.125% to 2/10/35 then USD 5 year SOFR ICE Swap Rate + 3.179%)	7.125%	8/10/34	220,000	216,420 (a)(f)(g)
UBS Group AG, Junior Subordinated Notes (7.750% to 4/12/31 then USD 5 year SOFR ICE Swap Rate + 4.160%)	7.750%	4/12/31	220,000	231,751 (a)(f)(g)
UBS Group AG, Junior Subordinated Notes (9.250% to 11/13/28 then 5 year Treasury Constant Maturity Rate + 4.745%)	9.250%	11/13/28	520,000	567,166 (a)(f)(g)
UBS Group AG, Senior Notes (9.016% to 11/15/32 then SOFR + 5.020%)	9.016%	11/15/33	410,000	500,991 (a)(f)
Total Capital Markets				3,455,617
Consumer Finance — 0.8%
FirstCash Inc., Senior Notes	4.625%	9/1/28	130,000	126,749 (a)
FirstCash Inc., Senior Notes	5.625%	1/1/30	530,000	526,722 (a)
FirstCash Inc., Senior Notes	6.875%	3/1/32	470,000	482,341 (a)
Midcap Financial Issuer Trust, Senior Notes	6.500%	5/1/28	350,000	340,585 (a)
Midcap Financial Issuer Trust, Senior Notes	5.625%	1/15/30	390,000	352,847 (a)
Total Consumer Finance				1,829,244
Financial Services — 3.9%
Boost Newco Borrower LLC, Senior Secured Notes	7.500%	1/15/31	1,090,000	1,153,966 (a)
Burford Capital Global Finance LLC, Senior Notes	6.250%	4/15/28	300,000	298,807 (a)
Burford Capital Global Finance LLC, Senior Notes	6.875%	4/15/30	470,000	471,607 (a)

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Western Asset High Yield Fund

(Percentages shown based on Fund net assets)

Security	Rate	Maturity Date	Face Amount†	Value

Financial Services — continued
Burford Capital Global Finance LLC, Senior Notes	9.250%	7/1/31	740,000	$789,328 (a)
Jane Street Group/JSG Finance Inc., Senior Secured Notes	4.500%	11/15/29	411,000	396,200 (a)
Jane Street Group/JSG Finance Inc., Senior Secured Notes	7.125%	4/30/31	1,350,000	1,411,139 (a)
Jane Street Group/JSG Finance Inc., Senior Secured Notes	6.125%	11/1/32	320,000	320,755 (a)
Jane Street Group/JSG Finance Inc., Senior Secured Notes	6.750%	5/1/33	30,000	30,786 (a)
NCR Atleos Corp., Senior Secured Notes	9.500%	4/1/29	680,000	743,203 (a)
Rocket Mortgage LLC/Rocket Mortgage Co-Issuer Inc., Senior Notes	3.875%	3/1/31	370,000	335,030 (a)
Rocket Mortgage LLC/Rocket Mortgage Co-Issuer Inc., Senior Notes	4.000%	10/15/33	1,450,000	1,253,763 (a)
VFH Parent LLC/Valor Co-Issuer Inc., Senior Secured Notes	7.500%	6/15/31	360,000	375,623 (a)
VistaJet Malta Finance PLC/Vista Management Holding Inc., Senior Notes	7.875%	5/1/27	220,000	215,573 (a)
VistaJet Malta Finance PLC/Vista Management Holding Inc., Senior Notes	9.500%	6/1/28	110,000	108,468 (a)
VistaJet Malta Finance PLC/Vista Management Holding Inc., Senior Notes	6.375%	2/1/30	890,000	800,057 (a)
Total Financial Services				8,704,305
Insurance — 0.6%
APH Somerset Investor 2 LLC/APH2 Somerset Investor 2 LLC/APH3 Somerset Investor 2 LLC, Senior Notes	7.875%	11/1/29	700,000	693,147 (a)
Ryan Specialty LLC, Senior Secured Notes	4.375%	2/1/30	330,000	314,259 (a)
Ryan Specialty LLC, Senior Secured Notes	5.875%	8/1/32	340,000	338,140 (a)
Total Insurance				1,345,546
Mortgage Real Estate Investment Trusts (REITs) — 1.3%
Apollo Commercial Real Estate Finance Inc., Senior Secured Notes	4.625%	6/15/29	650,000	607,434 (a)
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., Senior Notes	4.250%	2/1/27	90,000	88,107 (a)
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., Senior Notes	7.000%	7/15/31	970,000	1,006,545 (a)
Starwood Property Trust Inc., Senior Notes	7.250%	4/1/29	210,000	218,573 (a)

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Schedule of Investments (cont’d)

May 31, 2025

Western Asset High Yield Fund

(Percentages shown based on Fund net assets)

Security	Rate	Maturity Date	Face Amount†	Value

Mortgage Real Estate Investment Trusts (REITs) — continued
Starwood Property Trust Inc., Senior Notes	6.000%	4/15/30	910,000	$908,014 (a)
Total Mortgage Real Estate Investment Trusts (REITs)				2,828,673

Total Financials				25,411,593
Health Care — 7.2%
Health Care Equipment & Supplies — 0.9%
Insulet Corp., Senior Notes	6.500%	4/1/33	370,000	380,757 (a)
Medline Borrower LP, Senior Notes	5.250%	10/1/29	420,000	410,770 (a)
Medline Borrower LP, Senior Secured Notes	3.875%	4/1/29	630,000	594,236 (a)
Medline Borrower LP/Medline Co-Issuer Inc., Senior Secured Notes	6.250%	4/1/29	590,000	601,100 (a)
Total Health Care Equipment & Supplies				1,986,863
Health Care Providers & Services — 3.4%
Akumin Inc., Senior Secured Notes (8.000% Cash or 9.000% PIK)	9.000%	8/1/27	300,000	282,263 (a)(c)
CHS/Community Health Systems Inc., Secured Notes	6.875%	4/15/29	1,290,000	1,079,285 (a)
CHS/Community Health Systems Inc., Secured Notes	6.125%	4/1/30	60,000	46,408 (a)
CHS/Community Health Systems Inc., Senior Secured Notes	5.250%	5/15/30	810,000	730,135 (a)
CHS/Community Health Systems Inc., Senior Secured Notes	10.875%	1/15/32	1,330,000	1,419,268 (a)
HCA Inc., Senior Notes	7.500%	11/15/95	680,000	715,849
LifePoint Health Inc., Senior Secured Notes	9.875%	8/15/30	1,390,000	1,490,965 (a)
LifePoint Health Inc., Senior Secured Notes	11.000%	10/15/30	390,000	429,230 (a)
Sotera Health Holdings LLC, Senior Secured Notes	7.375%	6/1/31	1,100,000	1,143,969 (a)
U.S. Renal Care Inc., Senior Secured Notes	10.625%	6/28/28	343,000	293,265 (a)
Total Health Care Providers & Services				7,630,637
Health Care Technology — 0.2%
AthenaHealth Group Inc., Senior Notes	6.500%	2/15/30	320,000	308,599 (a)
Pharmaceuticals — 2.7%
1261229 BC Ltd., Senior Secured Notes	10.000%	4/15/32	1,150,000	1,139,238 (a)
Bausch Health Cos. Inc., Senior Notes	6.250%	2/15/29	960,000	627,645 (a)
Bausch Health Cos. Inc., Senior Notes	5.250%	1/30/30	440,000	250,112 (a)
Endo Luxembourg Finance Co. I Sarl/Endo US Inc., Escrow	—	—	300,000	0 *(a)(h)(i)(j)
Par Pharmaceutical Inc., Escrow	—	—	800,000	0 *(a)(h)(i)(j)
Teva Pharmaceutical Finance Co. LLC, Senior Notes	6.150%	2/1/36	390,000	395,452

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Western Asset High Yield Fund

(Percentages shown based on Fund net assets)

Security	Rate	Maturity Date	Face Amount†	Value

Pharmaceuticals — continued
Teva Pharmaceutical Finance Netherlands III BV, Senior Notes	4.750%	5/9/27	1,220,000	$1,211,506
Teva Pharmaceutical Finance Netherlands III BV, Senior Notes	7.875%	9/15/29	200,000	216,009
Teva Pharmaceutical Finance Netherlands III BV, Senior Notes	8.125%	9/15/31	650,000	723,872
Teva Pharmaceutical Finance Netherlands IV BV, Senior Notes	5.750%	12/1/30	1,490,000	1,506,743
Total Pharmaceuticals				6,070,577

Total Health Care				15,996,676
Industrials — 12.8%
Aerospace & Defense — 1.8%
AAR Escrow Issuer LLC, Senior Notes	6.750%	3/15/29	540,000	553,762 (a)
Axon Enterprise Inc., Senior Notes	6.125%	3/15/30	220,000	224,928 (a)
Axon Enterprise Inc., Senior Notes	6.250%	3/15/33	110,000	111,879 (a)
Bombardier Inc., Senior Notes	8.750%	11/15/30	450,000	483,551 (a)
Bombardier Inc., Senior Notes	7.250%	7/1/31	1,056,000	1,090,321 (a)
Bombardier Inc., Senior Notes	7.000%	6/1/32	650,000	665,577 (a)
Bombardier Inc., Senior Notes	6.750%	6/15/33	140,000	142,137 (a)
TransDigm Inc., Senior Secured Notes	7.125%	12/1/31	470,000	486,779 (a)
TransDigm Inc., Senior Secured Notes	6.625%	3/1/32	300,000	306,826 (a)
Total Aerospace & Defense				4,065,760
Building Products — 1.3%
Advanced Drainage Systems Inc., Senior Notes	6.375%	6/15/30	230,000	232,997 (a)
Masterbrand Inc., Senior Notes	7.000%	7/15/32	500,000	497,868 (a)
Miter Brands Acquisition Holdco Inc./MIWD Borrower LLC, Senior Secured Notes	6.750%	4/1/32	690,000	695,625 (a)
MIWD Holdco II LLC/MIWD Finance Corp., Senior Notes	5.500%	2/1/30	390,000	360,532 (a)
Quikrete Holdings Inc., Senior Secured Notes	6.375%	3/1/32	1,100,000	1,118,570 (a)
Total Building Products				2,905,592
Commercial Services & Supplies — 3.3%
Allied Universal Holdco LLC/Allied Universal Finance Corp./Atlas Luxco 4 Sarl, Senior Secured Notes	4.625%	6/1/28	350,000	334,571 (a)
Clean Harbors Inc., Senior Notes	6.375%	2/1/31	440,000	448,026 (a)
CoreCivic Inc., Senior Notes	4.750%	10/15/27	157,000	153,356
CoreCivic Inc., Senior Notes	8.250%	4/15/29	1,430,000	1,512,409
GEO Group Inc., Senior Notes	10.250%	4/15/31	1,220,000	1,338,409
GEO Group Inc., Senior Secured Notes	8.625%	4/15/29	300,000	316,890

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Schedule of Investments (cont’d)

May 31, 2025

Western Asset High Yield Fund

(Percentages shown based on Fund net assets)

Security	Rate	Maturity Date	Face Amount†	Value

Commercial Services & Supplies — continued
GFL Environmental Inc., Senior Secured Notes	6.750%	1/15/31	580,000	$602,358 (a)
Madison IAQ LLC, Senior Notes	5.875%	6/30/29	560,000	542,167 (a)
Madison IAQ LLC, Senior Secured Notes	4.125%	6/30/28	270,000	260,053 (a)
Reworld Holding Corp., Senior Notes	4.875%	12/1/29	340,000	322,199 (a)
RR Donnelley & Sons Co., Secured Notes	10.875%	8/1/29	1,050,000	1,021,472 (a)
RR Donnelley & Sons Co., Senior Secured Notes	9.500%	8/1/29	510,000	511,779 (a)
Total Commercial Services & Supplies				7,363,689
Construction & Engineering — 1.3%
Arcosa Inc., Senior Notes	6.875%	8/15/32	350,000	359,140 (a)
Brundage-Bone Concrete Pumping Holdings Inc., Senior Secured Notes	7.500%	2/1/32	120,000	119,875 (a)
Empire Communities Corp., Senior Notes	9.750%	5/1/29	1,070,000	1,075,350 (a)
Tutor Perini Corp., Senior Notes	11.875%	4/30/29	1,110,000	1,236,025 (a)
Total Construction & Engineering				2,790,390
Electrical Equipment — 0.2%
Gates Corp., Senior Notes	6.875%	7/1/29	410,000	420,664 (a)
Ground Transportation — 0.6%
Carriage Purchaser Inc., Senior Notes	7.875%	10/15/29	850,000	728,196 (a)
XPO CNW Inc., Senior Notes	6.700%	5/1/34	360,000	371,151
XPO Inc., Senior Notes	7.125%	2/1/32	300,000	311,571 (a)
Total Ground Transportation				1,410,918
Machinery — 1.1%
ATS Corp., Senior Notes	4.125%	12/15/28	600,000	565,449 (a)
Esab Corp., Senior Notes	6.250%	4/15/29	530,000	539,593 (a)
New Flyer Holdings Inc., Secured Notes	9.250%	7/1/30	250,000	256,875 (a)(b)
Roller Bearing Co. of America Inc., Senior Notes	4.375%	10/15/29	500,000	477,956 (a)
Titan International Inc., Senior Secured Notes	7.000%	4/30/28	560,000	550,384
Total Machinery				2,390,257
Marine Transportation — 0.2%
Stena International SA, Senior Secured Notes	7.250%	1/15/31	330,000	331,464 (a)
Passenger Airlines — 2.3%
American Airlines Inc., Senior Secured Notes	7.250%	2/15/28	620,000	626,653 (a)
American Airlines Inc., Senior Secured Notes	8.500%	5/15/29	970,000	1,005,638 (a)
American Airlines Inc./AAdvantage Loyalty IP Ltd., Senior Secured Notes	5.750%	4/20/29	1,740,000	1,709,729 (a)
JetBlue Airways Corp./JetBlue Loyalty LP, Senior Secured Notes	9.875%	9/20/31	350,000	346,451 (a)

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Western Asset High Yield Fund

(Percentages shown based on Fund net assets)

Security	Rate	Maturity Date	Face Amount†	Value

Passenger Airlines — continued
Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd., Senior Secured Notes (11.000% Cash or 4.000% PIK and 8.000% Cash)	11.000%	3/6/30	914,414	$712,100 (a)(c)
United Airlines Inc., Senior Secured Notes	4.625%	4/15/29	634,000	602,602 (a)
Total Passenger Airlines				5,003,173
Trading Companies & Distributors — 0.7%
Herc Holdings Escrow Inc., Senior Notes	7.000%	6/15/30	410,000	422,649 (a)(b)
Herc Holdings Escrow Inc., Senior Notes	7.250%	6/15/33	410,000	422,260 (a)(b)
United Rentals North America Inc., Senior Notes	6.125%	3/15/34	780,000	791,590 (a)
Total Trading Companies & Distributors				1,636,499

Total Industrials				28,318,406
Information Technology — 4.8%
Communications Equipment — 1.7%
CommScope LLC, Senior Secured Notes	4.750%	9/1/29	1,522,000	1,459,265 (a)
CommScope LLC, Senior Secured Notes	9.500%	12/15/31	1,190,000	1,237,681 (a)
Connect Finco SARL/Connect US Finco LLC, Senior Secured Notes	9.000%	9/15/29	300,000	286,308 (a)
Viasat Inc., Senior Notes	7.500%	5/30/31	820,000	655,248 (a)
Total Communications Equipment				3,638,502
Electronic Equipment, Instruments & Components — 0.6%
EquipmentShare.com Inc., Secured Notes	8.625%	5/15/32	670,000	703,434 (a)
EquipmentShare.com Inc., Senior Secured Notes	8.000%	3/15/33	630,000	647,799 (a)
Total Electronic Equipment, Instruments & Components				1,351,233
IT Services — 0.9%
Amentum Holdings Inc., Senior Notes	7.250%	8/1/32	930,000	949,478 (a)
CoreWeave Inc., Senior Notes	9.250%	6/1/30	550,000	549,867 (a)
Shift4 Payments LLC/Shift4 Payments Finance Sub Inc., Senior Notes	6.750%	8/15/32	550,000	561,507 (a)
Total IT Services				2,060,852
Software — 1.1%
Cloud Software Group Inc., Secured Notes	9.000%	9/30/29	520,000	532,651 (a)
Cloud Software Group Inc., Senior Secured Notes	8.250%	6/30/32	560,000	589,407 (a)
Elastic NV, Senior Notes	4.125%	7/15/29	380,000	356,631 (a)
Gen Digital Inc., Senior Notes	6.250%	4/1/33	320,000	324,353 (a)
Open Text Corp., Senior Secured Notes	6.900%	12/1/27	260,000	267,950 (a)

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Schedule of Investments (cont’d)

May 31, 2025

Western Asset High Yield Fund

(Percentages shown based on Fund net assets)

Security	Rate	Maturity Date	Face Amount†	Value

Software — continued
Rackspace Finance LLC, Senior Secured Notes	3.500%	5/15/28	694,200	$256,854 (a)
Total Software				2,327,846
Technology Hardware, Storage & Peripherals — 0.5%
CA Magnum Holdings, Senior Secured Notes	5.375%	10/31/26	540,000	534,605 (a)
Diebold Nixdorf Inc., Senior Secured Notes	7.750%	3/31/30	340,000	358,227 (a)
Seagate Data Storage Technology Pte Ltd., Senior Notes	5.875%	7/15/30	290,000	291,177 (a)
Total Technology Hardware, Storage & Peripherals				1,184,009

Total Information Technology				10,562,442
Materials — 3.9%
Chemicals — 0.1%
Cerdia Finanz GmbH, Senior Secured Notes	9.375%	10/3/31	190,000	195,705 (a)
Construction Materials — 0.1%
Smyrna Ready Mix Concrete LLC, Senior Secured Notes	6.000%	11/1/28	170,000	167,651 (a)
Containers & Packaging — 0.6%
ARD Finance SA, Senior Secured Notes (6.500% Cash or 7.250% PIK)	6.500%	6/30/27	1,937,788	77,511 (a)(c)
Ardagh Metal Packaging Finance USA LLC/ Ardagh Metal Packaging Finance PLC, Senior Notes	4.000%	9/1/29	200,000	177,649 (a)
Ardagh Metal Packaging Finance USA LLC/ Ardagh Metal Packaging Finance PLC, Senior Secured Notes	6.000%	6/15/27	730,000	732,294 (a)
Cascades Inc./Cascades USA Inc., Senior Notes	5.375%	1/15/28	330,000	325,283 (a)
Total Containers & Packaging				1,312,737
Metals & Mining — 3.1%
Capstone Copper Corp., Senior Notes	6.750%	3/31/33	370,000	370,247 (a)
First Quantum Minerals Ltd., Secured Notes	9.375%	3/1/29	1,040,000	1,094,819 (a)
First Quantum Minerals Ltd., Senior Notes	8.625%	6/1/31	1,080,000	1,098,887 (a)
First Quantum Minerals Ltd., Senior Notes	8.000%	3/1/33	2,220,000	2,205,780 (a)
Freeport-McMoRan Inc., Senior Notes	5.450%	3/15/43	1,500,000	1,386,189
Hudbay Minerals Inc., Senior Notes	6.125%	4/1/29	760,000	762,498 (a)
Total Metals & Mining				6,918,420

Total Materials				8,594,513
Real Estate — 2.7%
Diversified REITs — 1.0%
IIP Operating Partnership LP, Senior Notes	5.500%	5/25/26	550,000	525,707

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Western Asset High Yield Fund

(Percentages shown based on Fund net assets)

Security	Rate	Maturity Date	Face Amount†	Value

Diversified REITs — continued
Iron Mountain Information Management Services Inc., Senior Notes	5.000%	7/15/32	240,000	$227,298 (a)
MPT Operating Partnership LP/MPT Finance Corp., Senior Notes	4.625%	8/1/29	320,000	242,831
MPT Operating Partnership LP/MPT Finance Corp., Senior Secured Notes	8.500%	2/15/32	270,000	276,960 (a)
Uniti Group LP/Uniti Group Finance 2019 Inc./ CSL Capital LLC, Senior Notes	6.500%	2/15/29	1,100,000	1,038,129 (a)
Total Diversified REITs				2,310,925
Health Care REITs — 0.5%
Diversified Healthcare Trust, Senior Notes	9.750%	6/15/25	46,000	46,116
Diversified Healthcare Trust, Senior Notes	4.750%	2/15/28	400,000	368,489
Diversified Healthcare Trust, Senior Notes	4.375%	3/1/31	930,000	770,657
Total Health Care REITs				1,185,262
Hotel & Resort REITs — 0.8%
Service Properties Trust, Senior Notes	5.500%	12/15/27	990,000	956,177
Service Properties Trust, Senior Notes	8.375%	6/15/29	740,000	750,249
Total Hotel & Resort REITs				1,706,426
Real Estate Management & Development — 0.4%
Cushman & Wakefield US Borrower LLC, Senior Secured Notes	8.875%	9/1/31	330,000	353,194 (a)
Five Point Operating Co. LP/Five Point Capital Corp., Senior Notes, Step bond (10.500% to 11/15/25 then 11.000%)	10.500%	1/15/28	520,543	530,527 (a)
Total Real Estate Management & Development				883,721

Total Real Estate				6,086,334
Utilities — 1.9%
Electric Utilities — 1.2%
Alpha Generation LLC, Senior Notes	6.750%	10/15/32	330,000	336,734 (a)
NRG Energy Inc., Senior Notes	6.250%	11/1/34	590,000	590,684 (a)
Vistra Operations Co. LLC, Senior Notes	7.750%	10/15/31	710,000	753,284 (a)
Vistra Operations Co. LLC, Senior Notes	6.875%	4/15/32	870,000	905,641 (a)
Total Electric Utilities				2,586,343
Gas Utilities — 0.1%
Suburban Propane Partners LP/Suburban Energy Finance Corp., Senior Notes	5.000%	6/1/31	290,000	270,370 (a)
Independent Power and Renewable Electricity Producers — 0.6%
Lightning Power LLC, Senior Secured Notes	7.250%	8/15/32	750,000	786,811 (a)

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Schedule of Investments (cont’d)

May 31, 2025

Western Asset High Yield Fund

(Percentages shown based on Fund net assets)

Security	Rate	Maturity Date	Face Amount†	Value

Independent Power and Renewable Electricity Producers — continued
TransAlta Corp., Senior Notes	7.750%	11/15/29	560,000	$583,823
Total Independent Power and Renewable Electricity Producers				1,370,634

Total Utilities				4,227,347
Total Corporate Bonds & Notes (Cost — $190,672,334)				185,733,175
Asset-Backed Securities — 6.1%
AGL CLO Ltd., 2021-11A E (3 mo. Term SOFR + 6.622%)	10.878%	4/15/34	250,000	250,135 (a)(f)
AGL CLO Ltd., 2021-16A DR (3 mo. Term SOFR + 2.400%)	6.669%	1/20/35	410,000	408,781 (a)(f)
AMMC CLO Ltd., 2021-24A ER (3 mo. Term SOFR + 6.500%)	10.769%	1/20/35	530,000	531,490 (a)(f)
Apidos CLO Ltd., 2024-50A E (3 mo. Term SOFR + 5.100%)	9.369%	1/20/38	460,000	457,385 (a)(f)
Bain Capital Credit CLO Ltd., 2020-3A DRR (3 mo. Term SOFR + 3.100%)	7.379%	10/23/34	650,000	652,802 (a)(f)
Blueberry Park CLO Ltd., 2024-1A D1 (3 mo. Term SOFR + 2.900%)	7.169%	10/20/37	280,000	279,660 (a)(f)
BlueMountain CLO Ltd., 2020-30A DR (3 mo. Term SOFR + 3.300%)	7.556%	4/15/35	400,000	399,640 (a)(f)
Bridge Street CLO Ltd., 2025-1A D1A (3 mo. Term SOFR + 2.850%)	7.109%	4/20/38	250,000	246,520 (a)(f)
CarVal CLO Ltd., 2024-3A D1 (3 mo. Term SOFR + 3.000%)	7.269%	10/20/37	370,000	371,939 (a)(f)
Clover CLO LLC, 2021-3A DR (3 mo. Term SOFR + 2.550%)	6.832%	1/25/35	280,000	275,496 (a)(f)
Goldentree Loan Management US CLO Ltd., 2020-8A DRR (3 mo. Term SOFR + 2.900%)	7.169%	10/20/34	290,000	289,639 (a)(f)
Greenwood Park CLO Ltd., 2018-1A D (3 mo. Term SOFR + 2.762%)	7.018%	4/15/31	350,000	347,171 (a)(f)
Greenwood Park CLO Ltd., 2018-1A E (3 mo. Term SOFR + 5.212%)	9.468%	4/15/31	250,000	247,515 (a)(f)
Magnetite Ltd., 2015-12A ER (3 mo. Term SOFR + 5.942%)	10.198%	10/15/31	750,000	748,110 (a)(f)
Magnetite Ltd., 2020-26A ER2 (3 mo. Term SOFR + 4.700%)	8.966%	1/25/38	570,000	557,691 (a)(f)
Marble Point CLO Ltd., 2018-2A D (3 mo. Term SOFR + 3.792%)	8.061%	1/20/32	500,000	495,754 (a)(f)
Mountain View CLO Ltd., 2015-9A CR (3 mo. Term SOFR + 3.382%)	7.638%	7/15/31	250,000	249,360 (a)(f)

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Western Asset High Yield Fund

(Percentages shown based on Fund net assets)

Security	Rate	Maturity Date	Face Amount†	Value
Asset-Backed Securities — continued
Oaktree CLO Ltd., 2022-2A D1R2 (3 mo. Term SOFR + 3.250%)	7.506%	10/15/37	570,000	$574,342 (a)(f)
Obra CLO Ltd., 2024-1A D1 (3 mo. Term SOFR + 3.400%)	7.823%	1/20/38	800,000	805,014 (a)(f)
Ocean Trails CLO Ltd., 2014-5A DRR (3 mo. Term SOFR + 3.712%)	7.953%	10/13/31	300,000	299,259 (a)(f)
Ocean Trails CLO Ltd., 2024-16A D1 (3 mo. Term SOFR + 3.300%)	7.569%	1/20/38	700,000	706,086 (a)(f)
OHA Credit Funding Ltd., 2022-11A D1R (3 mo. Term SOFR + 2.850%)	7.119%	7/19/37	330,000	331,820 (a)(f)
Palmer Square CLO Ltd., 2022-3A D1R (3 mo. Term SOFR + 2.950%)	7.219%	7/20/37	460,000	460,878 (a)(f)
Palmer Square Loan Funding Ltd., 2022-3A CR (3 mo. Term SOFR + 3.000%)	7.256%	4/15/31	380,000	379,646 (a)(f)
Palmer Square Loan Funding Ltd., 2024-3A C (3 mo. Term SOFR + 2.950%)	7.257%	8/8/32	440,000	438,406 (a)(f)
PPM CLO Ltd., 2025-8A D1 (3 mo. Term SOFR + 3.000%)	7.311%	4/20/38	540,000	542,507 (a)(f)
RAD CLO Ltd., 2023-21A D1R (3 mo. Term SOFR + 2.600%)	6.882%	1/25/37	660,000	660,482 (a)(f)
Symphony CLO Ltd., 2020-22A DR (3 mo. Term SOFR + 3.300%)	7.569%	4/18/33	250,000	246,656 (a)(f)
Symphony CLO Ltd., 2021-25A D (3 mo. Term SOFR + 3.862%)	8.131%	4/19/34	250,000	249,101 (a)(f)
Trestles CLO Ltd., 2025-8A D1 (3 mo. Term SOFR + 3.000%)	7.324%	6/11/35	330,000	331,699 (a)(b)(f)
Trinitas CLO Ltd., 2023-26A D (3 mo. Term SOFR + 4.500%)	8.769%	1/20/35	250,000	250,000 (a)(f)
Voya CLO Ltd., 2018-2A D (3 mo. Term SOFR + 3.012%)	7.268%	7/15/31	430,000	426,416 (a)(f)

Total Asset-Backed Securities (Cost — $13,372,814)				13,511,400
Senior Loans — 6.1%
Communication Services — 1.5%
Entertainment — 0.2%
Voyager Parent LLC, Term Loan B	—	5/9/32	550,000	540,933 (k)
Interactive Media & Services — 0.7%
X Corp., Term Loan B1 (3 mo. Term SOFR + 6.650%)	10.949%	10/26/29	578,521	573,658 (f)(l)(m)
X Corp., Term Loan B3	9.500%	10/26/29	860,000	857,110 (l)(m)
Total Interactive Media & Services				1,430,768

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Schedule of Investments (cont’d)

May 31, 2025

Western Asset High Yield Fund

(Percentages shown based on Fund net assets)

Security	Rate	Maturity Date	Face Amount†	Value

Media — 0.6%
Diamond Sports Net LLC, First Lien Exit Term Loan	15.000%	1/2/28	891,533	$807,676 (l)(m)
Gray Television Inc., Term Loan F (1 mo. Term SOFR + 5.250%)	9.574%	6/4/29	526,025	525,436 (f)(l)(m)
Total Media				1,333,112

Total Communication Services				3,304,813
Consumer Discretionary — 1.0%
Automobile Components — 0.4%
Clarios Global LP, 2024 Term Loan B (1 mo. Term SOFR + 2.500%)	6.827%	5/6/30	497,503	495,637 (f)(l)(m)
First Brands Group LLC, 2021 First Lien Term Loan (3 mo. Term SOFR + 5.262%)	9.541%	3/30/27	326,400	316,352 (f)(l)(m)
Total Automobile Components				811,989
Diversified Consumer Services — 0.1%
Adtalem Global Education Inc., 2024 Second Repricing Term Loan (1 mo. Term SOFR + 2.750%)	7.077%	8/12/28	139,223	139,571 (f)(l)(m)
WW International Inc., Initial Term Loan (3 mo. Term SOFR + 3.762%)	8.041%	4/13/28	256,000	81,984 (f)(l)(m)
Total Diversified Consumer Services				221,555
Hotels, Restaurants & Leisure — 0.5%
Scientific Games International Inc., Term Loan B2 (1 mo. Term SOFR + 2.250%)	6.573%	4/14/29	244,406	244,468 (f)(l)(m)
Station Casinos LLC, Term Loan Facility B (1 mo. Term SOFR + 2.000%)	6.327%	3/14/31	861,300	862,329 (f)(l)(m)
Total Hotels, Restaurants & Leisure				1,106,797

Total Consumer Discretionary				2,140,341
Financials — 0.7%
Financial Services — 0.2%
Citadel Securities LP, 2024 Term Loan Facility (1 mo. Term SOFR + 2.000%)	6.327%	10/31/31	244,435	245,566 (f)(l)(m)
Deerfield Dakota Holding LLC, 2021 Replacement Term Loan (3 mo. Term SOFR + 7.012%)	11.311%	4/7/28	200,000	192,001 (f)(l)(m)
Total Financial Services				437,567
Insurance — 0.5%
Asurion LLC, New Term Loan B10 (1 mo. Term SOFR + 4.100%)	8.427%	8/19/28	1,155,685	1,151,594 (f)(l)(m)

Total Financials				1,589,161

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Western Asset High Yield Fund

(Percentages shown based on Fund net assets)

Security	Rate	Maturity Date	Face Amount†	Value

Health Care — 0.5%
Health Care Providers & Services — 0.3%
EyeCare Partners LLC, Term Loan B (3 mo. Term SOFR + 1.100%)	5.227%	11/30/28	605,943	$509,102 (f)(l)(m)
LifePoint Health Inc., Term Loan B (3 mo. Term SOFR + 3.750%)	8.006%	5/16/31	223,384	220,836 (f)(l)(m)
Total Health Care Providers & Services				729,938
Health Care Technology — 0.2%
Cotiviti Inc., Initial Term Loan (1 mo. Term SOFR + 2.750%)	7.074%	5/1/31	465,312	463,860 (f)(l)(m)

Total Health Care				1,193,798
Industrials — 0.7%
Building Products — 0.3%
Quikrete Holdings Inc., Term Loan B3 (1 mo. Term SOFR + 2.250%)	6.577%	2/10/32	530,000	528,410 (f)(l)(m)
Commercial Services & Supplies — 0.1%
Neptune Bidco US Inc., Term Loan B (3 mo. Term SOFR + 5.100%)	9.330%	4/11/29	303,800	285,241 (f)(l)(m)
Ground Transportation — 0.2%
Genesee & Wyoming Inc., Initial Term Loan B (3 mo. Term SOFR + 1.750%)	6.049%	4/10/31	507,450	505,669 (f)(l)(m)
Passenger Airlines — 0.1%
United Airlines Inc., Term Loan B (3 mo. Term SOFR + 2.000%)	6.275%	2/22/31	232,625	233,584 (f)(l)(m)

Total Industrials				1,552,904
Information Technology — 1.4%
Communications Equipment — 0.5%
Global Tel Link Corp., Initial Term Loan (1 mo. Term SOFR + 7.500%)	11.827%	7/31/29	1,144,250	1,117,789 (f)(l)(m)
Software — 0.6%
DCert Buyer Inc., First Lien Initial Term Loan (1 mo. Term SOFR + 4.000%)	8.327%	10/16/26	407,802	403,470 (f)(l)(m)
DCert Buyer Inc., Second Lien Initial Term Loan (1 mo. Term SOFR + 7.000%)	11.327%	2/19/29	790,000	684,337 (f)(l)(m)
MRI Software LLC, Second Amendment Term Loan (3 mo. Term SOFR + 4.750%)	9.049%	2/10/27	89,182	88,848 (f)(l)(m)
MRI Software LLC, Term Loan B (3 mo. Term SOFR + 4.750%)	9.049%	2/10/27	155,050	154,469 (f)(l)(m)
Total Software				1,331,124

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Schedule of Investments (cont’d)

May 31, 2025

Western Asset High Yield Fund

(Percentages shown based on Fund net assets)

Security	Rate	Maturity Date	Face Amount†	Value

Technology Hardware, Storage & Peripherals — 0.3%
Vericast Corp., 2024 Extended Term Loan (6 mo. Term SOFR + 7.750%)	12.035%	6/16/26	757,909	$727,403 (f)(l)(m)

Total Information Technology				3,176,316
Materials — 0.3%
Metals & Mining — 0.3%
Arctic Canadian Diamond Co. Ltd., Second Lien Term Loan	10.000%	12/31/27	535,240	534,536 (h)(i)(l)(m)

Total Senior Loans (Cost — $13,811,380)				13,491,869
			Shares
Investments in Underlying Funds — 1.0%
iShares 0-5 Year High Yield Corporate Bond ETF (Cost — $2,190,699)			51,900	2,216,130
	Rate	Maturity Date	Face Amount†
Convertible Bonds & Notes — 0.6%
Communication Services — 0.2%
Media — 0.2%
EchoStar Corp., Senior Secured Notes (3.875% Cash or 3.875% PIK)	3.875%	11/30/30	388,778	374,110 (c)

Consumer Discretionary — 0.1%
Hotels, Restaurants & Leisure — 0.1%
DraftKings Holdings Inc., Senior Notes	0.000%	3/15/28	390,000	346,710

Financials — 0.3%
Mortgage Real Estate Investment Trusts (REITs) — 0.3%
Two Harbors Investment Corp., Senior Notes	6.250%	1/15/26	660,000	648,780

Industrials — 0.0%††
Electrical Equipment — 0.0%††
Bloom Energy Corp., Senior Notes	3.000%	6/1/29	70,000	85,260 (a)

Total Convertible Bonds & Notes (Cost — $1,479,266)				1,454,860
Sovereign Bonds — 0.6%
Argentina — 0.6%
Provincia de Buenos Aires, Senior Notes	6.625%	9/1/37	1,881,934	1,366,754 (a)
Provincia de Buenos Aires, Senior Notes	6.625%	9/1/37	47,045	34,167 (e)

Total Sovereign Bonds (Cost — $869,044)				1,400,921

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Western Asset High Yield Fund

(Percentages shown based on Fund net assets)

Security			Shares/Units	Value
Common Stocks — 0.2%
Energy — 0.1%
Oil, Gas & Consumable Fuels — 0.1%
Chord Energy Corp.			1,925	$173,250
Permian Production Partners LLC			21,667	0 *(h)(i)(j)

Total Energy				173,250
Industrials — 0.1%
Passenger Airlines — 0.1%
Spirit Airlines LLC			209	1,252 *(h)(n)
Spirit Aviation Holdings Inc.			35,875	214,891 *

Total Industrials				216,143
Materials — 0.0%††
Metals & Mining — 0.0%††
Arctic Canadian Diamond Co. Ltd.			541	11,289 *(h)(i)

Total Common Stocks (Cost — $656,465)				400,682
	Rate	Maturity Date	Face Amount†
Collateralized Mortgage Obligations(o) — 0.1%
LHOME Mortgage Trust, 2025-RTL1 M1 (Cost — $309,998)	7.023%	1/25/40	310,000	309,512 (a)(f)
		Expiration Date	Warrants
Warrants — 0.1%
Industrials — 0.1%
Passenger Airlines — 0.1%
Spirit Airlines LLC (Cost — $310,299)		3/12/30	25,490	152,685 *(a)(h)(n)
Total Investments — 98.5% (Cost — $223,672,299)				218,671,234
Other Assets in Excess of Liabilities — 1.5%				3,288,224
Total Net Assets — 100.0%				$221,959,458

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Schedule of Investments (cont’d)

May 31, 2025

Western Asset High Yield Fund

†	Face amount denominated in U.S. dollars, unless otherwise noted.
††	Represents less than 0.1%.
*	Non-income producing security.
(a)	Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid pursuant to guidelines approved by the Board of Directors.
(b)	Securities traded on a when-issued or delayed delivery basis.
(c)	Payment-in-kind security for which the issuer has the option at each interest payment date of making interest payments in cash or additional securities.
(d)	The coupon payment on this security is currently in default as of May 31, 2025.
(e)	Security is exempt from registration under Regulation S of the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States. This security has been deemed liquid pursuant to guidelines approved by the Board of Directors.
(f)	Variable rate security. Interest rate disclosed is as of the most recent information available. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above.
(g)	Security has no maturity date. The date shown represents the next call date.
(h)	Security is fair valued in accordance with procedures approved by the Board of Directors (Note 1).
(i)	Security is valued using significant unobservable inputs (Note 1).
(j)	Value is less than $1.
(k)	All or a portion of this loan has not settled as of May 31, 2025. Interest rates are not effective until settlement date. Interest rates shown, if any, are for the settled portion of the loan.
(l)	Interest rates disclosed represent the effective rates on senior loans. Ranges in interest rates are attributable to multiple contracts under the same loan.
(m)	Senior loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval from the agent bank and/or borrower prior to the disposition of a senior loan.
(n)	Restricted security (Note 9).
(o)	Collateralized mortgage obligations are secured by an underlying pool of mortgages or mortgage pass-through certificates that are structured to direct payments on underlying collateral to different series or classes of the obligations. The interest rate may change positively or inversely in relation to one or more interest rates, financial indices or other financial indicators and may be subject to an upper and/or lower limit.

Abbreviation(s) used in this schedule:
CLO	—	Collateralized Loan Obligation
ETF	—	Exchange-Traded Fund
EUR	—	Euro
GBP	—	British Pound
ICE	—	Intercontinental Exchange
LIBOR	—	London Interbank Offered Rate
PIK	—	Payment-In-Kind
SOFR	—	Secured Overnight Financing Rate
SONIA	—	Sterling Overnight Index Average
USD	—	United States Dollar

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Western Asset High Yield Fund

At May 31, 2025, the Fund had the following open futures contracts:

	Number of Contracts	Expiration Date	Notional Amount	Market Value	Unrealized Appreciation
Contracts to Buy:
U.S. Treasury 5-Year Notes	76	9/25	$8,194,250	$8,222,250	$28,000

At May 31, 2025, the Fund had the following open forward foreign currency contracts:

Currency Purchased		Currency Sold		Counterparty	Settlement Date	Unrealized Appreciation
GBP	2,895,292	USD	3,697,317	Bank of America N.A.	7/16/25	$204,461
EUR	2,134,546	USD	2,348,076	Citibank N.A.	7/16/25	83,038
Net unrealized appreciation on open forward foreign currency contracts						$287,499

Abbreviation(s) used in this table:
EUR	—	Euro
GBP	—	British Pound
USD	—	United States Dollar

At May 31, 2025, the Fund had the following open swap contracts:

CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CORPORATE ISSUES — SELL PROTECTION1
Reference Entity	Notional Amount2	Termination Date	Implied Credit Spread at May 31, 20253	Periodic Payments Received by the Fund†	Market Value	Upfront Premiums Paid (Received)	Unrealized Appreciation (Depreciation)
American Airlines Group Inc., 6.500%, due 7/1/25	$849,000	12/20/29	5.809%	5.000% quarterly	$(24,524)	$(25,442)	$918
American Airlines Group Inc., 6.500%, due 7/1/25	57,000	6/20/30	6.058%	5.000% quarterly	(2,307)	(2,558)	251
Carvinal Corp., 6.650%, due 1/15/28	430,000	6/20/30	1.566%	1.000% quarterly	(10,822)	(31,318)	20,496
Nabors Industries Inc., 9.125%, due 1/31/30	267,000	6/20/29	13.883%	1.000% quarterly	(90,001)	(39,462)	(50,539)

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Schedule of Investments (cont’d)

May 31, 2025

Western Asset High Yield Fund

CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CORPORATE ISSUES — SELL PROTECTION1 (cont’d)
Reference Entity	Notional Amount2	Termination Date	Implied Credit Spread at May 31, 20253	Periodic Payments Received by the Fund†	Market Value	Upfront Premiums Paid (Received)	Unrealized Appreciation (Depreciation)
Nabors Industries Inc., 9.125%, due 1/31/30	$559,000	6/20/30	14.479%	1.000% quarterly	(216,148)	$(140,786)	$(75,362)
Total	$2,162,000				$(343,802)	$(239,566)	$(104,236)

CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CORPORATE ISSUES — BUY PROTECTION4
Reference Entity	Notional Amount2	Termination Date	Implied Credit Spread at May 31, 20253	Periodic Payments Made by the Fund†	Market Value	Upfront Premiums Paid (Received)	Unrealized Appreciation
Transocean Inc., 8.000%, due 2/1/27	$267,000	6/20/29	7.897%	1.000% quarterly	$56,261	$27,650	$28,611
Transocean Inc., 8.000%, due 2/1/27	559,000	6/20/30	8.330%	1.000% quarterly	143,284	100,561	42,723
Total	$826,000				$199,545	$128,211	$71,334

CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CREDIT INDICES — SELL PROTECTION1
Reference Entity	Notional Amount2	Termination Date	Periodic Payments Received by the Fund†	Market Value5	Upfront Premiums Paid (Received)	Unrealized Appreciation
Markit CDX.NA.HY.44 Index	$2,300,000	6/20/30	5.000% quarterly	$141,906	$69,546	$72,360

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Western Asset High Yield Fund

1	If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.
2	The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.
3	Implied credit spreads, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end, serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced entity or obligation.
4	If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or the underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or the underlying securities comprising the referenced index.
5	The quoted market prices and resulting values for credit default swap agreements on asset-backed securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected loss (or profit) for the credit derivative had the notional amount of the swap agreement been closed/sold as of the period end. Decreasing market values (sell protection) or increasing market values (buy protection), when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.
†	Percentage shown is an annual percentage rate.

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Statement of Assets and Liabilities

May 31, 2025

Assets:
Investments, at value (Cost — $223,672,299)	$218,671,234
Foreign currency, at value (Cost — $293,033)	255,588
Cash	712,904
Interest receivable	3,752,173
Receivable from brokers — net variation margin on centrally cleared swap contracts	1,077,963
Receivable for securities sold	356,890
Unrealized appreciation on forward foreign currency contracts	287,499
Deposits with brokers for open futures contracts	131,714
Receivable for Fund shares sold	11,740
Dividends receivable from affiliated investments	9,421
Receivable from brokers — net variation margin on open futures contracts	6,531
Prepaid expenses	43,996
Total Assets	225,317,653
Liabilities:
Payable for securities purchased	2,446,555
Payable for Fund shares repurchased	573,561
Investment management fee payable	95,457
Service and/or distribution fees payable	41,063
Distributions payable	19,483
Directors’ fees payable	920
Accrued expenses	181,156
Total Liabilities	3,358,195
Total Net Assets	$221,959,458
Net Assets:
Par value (Note 7)	$32,092
Paid-in capital in excess of par value	382,884,920
Total distributable earnings (loss)	(160,957,554 )
Total Net Assets	$221,959,458

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Net Assets:
Class A	$189,255,439
Class C	$1,364,602
Class R	$134,875
Class I	$25,048,756
Class IS	$6,155,786
Shares Outstanding:
Class A	27,345,049
Class C	198,999
Class R	19,626
Class I	3,645,847
Class IS	882,663
Net Asset Value:
Class A (and redemption price)	$6.92
Class C*	$6.86
Class R (and redemption price)	$6.87
Class I (and redemption price)	$6.87
Class IS (and redemption price)	$6.97
Maximum Public Offering Price Per Share:
Class A (based on maximum initial sales charge of 3.75%)	$7.19

*	Redemption price per share is NAV of Class C shares reduced by a 1.00% CDSC if shares are redeemed within one year from purchase payment (Note 2).

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Statement of Operations

For the Year Ended May 31, 2025

Investment Income:
Interest	$18,751,388
Dividends from affiliated investments	89,943
Dividends from unaffiliated investments	12,628
Less: Foreign taxes withheld	(7,848 )
Total Investment Income	18,846,111
Expenses:
Investment management fee (Note 2)	1,233,524
Service and/or distribution fees (Notes 2 and 5)	482,495
Transfer agent fees (Notes 2 and 5)	161,590
Registration fees	92,359
Fund accounting fees	71,826
Audit and tax fees	63,912
Shareholder reports	15,928
Legal fees	13,972
Directors’ fees	7,183
Commitment fees (Note 10)	2,022
Insurance	1,430
Custody fees	368
Miscellaneous expenses	14,260
Total Expenses	2,160,869
Less: Fee waivers and/or expense reimbursements (Notes 2 and 5)	(68,505 )
Net Expenses	2,092,364
Net Investment Income	16,753,747
Realized and Unrealized Gain (Loss) on Investments, Futures Contracts, Written Options, Swap Contracts, Forward Foreign Currency Contracts and Foreign Currency Transactions (Notes 1, 3 and 4):
Net Realized Gain From:
Investment transactions in unaffiliated securities	1,262,837
Futures contracts	58,857
Written options	51,750
Swap contracts	288,830
Forward foreign currency contracts	82,624
Foreign currency transactions	10,416
Net Realized Gain	1,755,314
Change in Net Unrealized Appreciation (Depreciation) From:
Investments in unaffiliated securities	1,423,861
Futures contracts	45,195
Swap contracts	(25,554 )
Forward foreign currency contracts	197,138
Foreign currencies	18,687
Change in Net Unrealized Appreciation (Depreciation)	1,659,327
Net Gain on Investments, Futures Contracts, Written Options, Swap Contracts, Forward Foreign Currency Contracts and Foreign Currency Transactions	3,414,641
Increase in Net Assets From Operations	$20,168,388

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Statements of Changes in Net Assets

For the Years Ended May 31,	2025	2024
Operations:
Net investment income	$16,753,747	$17,756,746
Net realized gain (loss)	1,755,314	(19,756,237 )
Change in net unrealized appreciation (depreciation)	1,659,327	26,806,466
Increase in Net Assets From Operations	20,168,388	24,806,975
Distributions to Shareholders From (Notes 1 and 6):
Total distributable earnings	(16,627,451 )	(17,870,115 )
Decrease in Net Assets From Distributions to Shareholders	(16,627,451 )	(17,870,115 )
Fund Share Transactions (Note 7):
Net proceeds from sale of shares	40,179,480	32,024,792
Reinvestment of distributions	16,084,484	17,074,084
Cost of shares repurchased	(63,186,094 )	(69,538,338 )
Decrease in Net Assets From Fund Share Transactions	(6,922,130 )	(20,439,462 )
Decrease in Net Assets	(3,381,193 )	(13,502,602 )
Net Assets:
Beginning of year	225,340,651	238,843,253
End of year	$221,959,458	$225,340,651

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Financial Highlights

For a share of each class of capital stock outstanding throughout each year ended May 31:
Class A Shares1	2025	2024	2023	2022	2021
Net asset value, beginning of year	$6.81	$6.62	$7.29	$8.21	$7.40
Income (loss) from operations:
Net investment income	0.52	0.50	0.48	0.39	0.38
Net realized and unrealized gain (loss)	0.10	0.19	(0.67 )	(0.92 )	0.81
Total income (loss) from operations	0.62	0.69	(0.19)	(0.53)	1.19
Less distributions from:
Net investment income	(0.51 )	(0.50 )	(0.46 )	(0.39 )	(0.38 )
Return of capital	—	—	(0.02 )	—	(0.00 )2
Total distributions	(0.51 )	(0.50 )	(0.48 )	(0.39 )	(0.38 )
Net asset value, end of year	$6.92	$6.81	$6.62	$7.29	$8.21
Total return3	9.23 %	10.97 %	(2.52 )%	(6.77 )%	16.41 %
Net assets, end of year (000s)	$189,255	$179,880	$169,943	$67,464	$3,953
Ratios to average net assets:
Gross expenses	0.99 %	0.99 %	1.02 %	0.97 %	1.06 %
Net expenses4,5	0.97	0.97	0.97	0.94	1.00
Net investment income	7.44	7.46	7.14	4.93	4.80
Portfolio turnover rate	41 %	45 %	38 %	79 %	101 %

1	Per share amounts have been calculated using the average shares method.
2	Amount represents less than $0.005 or greater than $(0.005) per share.
3	Performance figures, exclusive of sales charges, may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results.
4	As a result of an expense limitation arrangement, effective May 21, 2021, the ratio of total annual fund operating expenses, other than interest, brokerage commissions, taxes, extraordinary expenses, deferred organizational expenses and acquired fund fees and expenses, to average net assets of Class A shares did not exceed 1.01%. This expense limitation arrangement cannot be terminated prior to December 31, 2026 without the Board of Directors’ consent. In addition, the manager has agreed to waive the Fund’s management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund. Prior to May 21, 2021, the expense limitation was 1.05%.
5	Reflects fee waivers and/or expense reimbursements.

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

For a share of each class of capital stock outstanding throughout each year ended May 31:
Class C Shares1	2025	2024	2023	2022	2021
Net asset value, beginning of year	$6.75	$6.56	$7.23	$8.13	$7.33
Income (loss) from operations:
Net investment income	0.46	0.45	0.42	0.33	0.32
Net realized and unrealized gain (loss)	0.11	0.19	(0.67 )	(0.91 )	0.80
Total income (loss) from operations	0.57	0.64	(0.25)	(0.58)	1.12
Less distributions from:
Net investment income	(0.46 )	(0.45 )	(0.41 )	(0.32 )	(0.32 )
Return of capital	—	—	(0.01 )	—	(0.00 )2
Total distributions	(0.46 )	(0.45 )	(0.42 )	(0.32 )	(0.32 )
Net asset value, end of year	$6.86	$6.75	$6.56	$7.23	$8.13
Total return3	8.58 %	10.02 %	(3.40 )%	(7.35 )%	15.66 %
Net assets, end of year (000s)	$1,365	$1,742	$1,221	$1,430	$1,960
Ratios to average net assets:
Gross expenses	1.75 %	1.73 %	1.85 %	1.76 %	1.82 %
Net expenses4,5	1.72	1.71	1.80	1.73	1.76
Net investment income	6.68	6.73	6.20	4.09	4.08
Portfolio turnover rate	41 %	45 %	38 %	79 %	101 %

1	Per share amounts have been calculated using the average shares method.
2	Amount represents less than $0.005 or greater than $(0.005) per share.
3	Performance figures, exclusive of CDSC, may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results.
4	As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage commissions, taxes, extraordinary expenses, deferred organizational expenses and acquired fund fees and expenses, to average net assets of Class C shares did not exceed 1.80%. This expense limitation arrangement cannot be terminated prior to December 31, 2026 without the Board of Directors’ consent. In addition, the manager has agreed to waive the Fund’s management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund.
5	Reflects fee waivers and/or expense reimbursements.

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Financial Highlights (cont’d)

For a share of each class of capital stock outstanding throughout each year ended May 31:
Class R Shares1	2025	2024	2023	2022	2021
Net asset value, beginning of year	$6.77	$6.57	$7.24	$8.15	$7.35
Income (loss) from operations:
Net investment income	0.49	0.48	0.45	0.36	0.36
Net realized and unrealized gain (loss)	0.10	0.20	(0.67 )	(0.91 )	0.80
Total income (loss) from operations	0.59	0.68	(0.22)	(0.55)	1.16
Less distributions from:
Net investment income	(0.49 )	(0.48 )	(0.44 )	(0.36 )	(0.36 )
Return of capital	—	—	(0.01 )	—	(0.00 )2
Total distributions	(0.49 )	(0.48 )	(0.45 )	(0.36 )	(0.36 )
Net asset value, end of year	$6.87	$6.77	$6.57	$7.24	$8.15
Total return3	8.87 %	10.63 %	(2.92 )%	(7.05 )%	16.16 %
Net assets, end of year (000s)	$135	$107	$118	$176	$129
Ratios to average net assets:
Gross expenses	1.51 %	1.37 %	1.55 %	1.58 %	1.64 %
Net expenses4,5	1.30	1.30	1.30	1.30	1.30
Net investment income	7.11	7.12	6.67	4.51	4.53
Portfolio turnover rate	41 %	45 %	38 %	79 %	101 %

1	Per share amounts have been calculated using the average shares method.
2	Amount represents less than $0.005 or greater than $(0.005) per share.
3	Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results.
4	As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage commissions, taxes, extraordinary expenses, deferred organizational expenses and acquired fund fees and expenses, to average net assets of Class R shares did not exceed 1.30%. This expense limitation arrangement cannot be terminated prior to December 31, 2026 without the Board of Directors’ consent. In addition, the manager has agreed to waive the Fund’s management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund.
5	Reflects fee waivers and/or expense reimbursements.

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

For a share of each class of capital stock outstanding throughout each year ended May 31:
Class I Shares1	2025	2024	2023	2022	2021
Net asset value, beginning of year	$6.76	$6.57	$7.24	$8.14	$7.34
Income (loss) from operations:
Net investment income	0.53	0.52	0.49	0.40	0.40
Net realized and unrealized gain (loss)	0.10	0.19	(0.67 )	(0.90 )	0.80
Total income (loss) from operations	0.63	0.71	(0.18)	(0.50)	1.20
Less distributions from:
Net investment income	(0.52 )	(0.52 )	(0.47 )	(0.40 )	(0.40 )
Return of capital	—	—	(0.02 )	—	(0.00 )2
Total distributions	(0.52 )	(0.52 )	(0.49 )	(0.40 )	(0.40 )
Net asset value, end of year	$6.87	$6.76	$6.57	$7.24	$8.14
Total return3	9.47 %	11.24 %	(2.41 )%	(6.47 )%	16.65 %
Net assets, end of year (000s)	$25,049	$30,498	$35,063	$23,201	$97,099
Ratios to average net assets:
Gross expenses	0.80 %	0.77 %	0.83 %	0.81 %	0.81 %
Net expenses4,5	0.75	0.75	0.77	0.77	0.75
Net investment income	7.64	7.67	7.29	4.89	5.06
Portfolio turnover rate	41 %	45 %	38 %	79 %	101 %

1	Per share amounts have been calculated using the average shares method.
2	Amount represents less than $0.005 or greater than $(0.005) per share.
3	Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results.
4	As a result of an expense limitation arrangement, effective November 21, 2022, the ratio of total annual fund operating expenses, other than interest, brokerage commissions, taxes, extraordinary expenses, deferred organizational expenses and acquired fund fees and expenses, to average net assets of Class I shares did not exceed 0.75%. This expense limitation arrangement cannot be terminated prior to December 31, 2026 without the Board of Directors’ consent. In addition, the manager has agreed to waive the Fund’s management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund.
5	Reflects fee waivers and/or expense reimbursements.

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Financial Highlights (cont’d)

For a share of each class of capital stock outstanding throughout each year ended May 31:
Class IS Shares1	2025	2024	2023	2022	2021
Net asset value, beginning of year	$6.87	$6.67	$7.35	$8.27	$7.45
Income (loss) from operations:
Net investment income	0.54	0.53	0.50	0.42	0.42
Net realized and unrealized gain (loss)	0.10	0.20	(0.68 )	(0.92 )	0.81
Total income (loss) from operations	0.64	0.73	(0.18)	(0.50)	1.23
Less distributions from:
Net investment income	(0.54 )	(0.53 )	(0.48 )	(0.42 )	(0.41 )
Return of capital	—	—	(0.02 )	—	(0.00 )2
Total distributions	(0.54 )	(0.53 )	(0.50 )	(0.42 )	(0.41 )
Net asset value, end of year	$6.97	$6.87	$6.67	$7.35	$8.27
Total return3	9.71 %	11.29 %	(2.29 )%	(6.40 )%	16.88 %
Net assets, end of year (000s)	$6,156	$13,113	$32,498	$99,232	$58,186
Ratios to average net assets:
Gross expenses	0.73 %	0.68 %	0.73 %	0.68 %	0.71 %
Net expenses4,5	0.65	0.65	0.65	0.65	0.65
Net investment income	7.75	7.73	7.20	5.22	5.20
Portfolio turnover rate	41 %	45 %	38 %	79 %	101 %

1	Per share amounts have been calculated using the average shares method.
2	Amount represents less than $0.005 or greater than $(0.005) per share.
3	Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results.
4	As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage commissions, taxes, extraordinary expenses, deferred organizational expenses and acquired fund fees and expenses, to average net assets of Class IS shares did not exceed 0.65%. In addition, the ratio of total annual fund operating expenses for Class IS shares did not exceed the ratio of total annual fund operating expenses for Class I shares. These expense limitation arrangements cannot be terminated prior to December 31, 2026 without the Board of Directors’ consent. In addition, the manager has agreed to waive the Fund’s management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund.
5	Reflects fee waivers and/or expense reimbursements.

See Notes to Financial Statements.

Western Asset High Yield Fund 2025 Annual Report

Notes to Financial Statements

1. Organization and significant accounting policies

Western Asset High Yield Fund (the “Fund”) is a separate diversified investment series of Western Asset Funds, Inc. (the “Corporation”). The Corporation, a Maryland corporation, is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company.

The Fund follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies (“ASC 946”). The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”), including, but not limited to, ASC 946. Estimates and assumptions are required to be made regarding assets, liabilities and changes in net assets resulting from operations when financial statements are prepared. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ. Subsequent events have been evaluated through the date the financial statements were issued.

(a) Investment valuation. The valuations for fixed income securities (which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and certain derivative instruments are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing services typically use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Investments in open-end funds are valued at the closing net asset value per share of each fund on the day of valuation. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded. Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund will normally use the currency exchange rates as of 4:00 p.m. (Eastern Time). If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the manager to be unreliable, the market price may be determined by the manager using quotations from one or more broker/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved by the Fund’s Board of Directors (the “Board”).

Western Asset High Yield Fund 2025 Annual Report

Notes to Financial Statements (cont’d)

Pursuant to policies adopted by the Board, the Fund’s manager has been designated as the valuation designee and is responsible for the oversight of the daily valuation process. The Fund’s manager is assisted by the Global Fund Valuation Committee (the “Valuation Committee”). The Valuation Committee is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Fund’s manager and the Board. When determining the reliability of third party pricing information for investments owned by the Fund, the Valuation Committee, among other things, conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.

The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuer’s financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts’ research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.

For each portfolio security that has been fair valued pursuant to the policies adopted by the Board, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such back testing monthly and fair valuation occurrences are reported to the Board quarterly.

The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.

Western Asset High Yield Fund 2025 Annual Report

GAAP establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are summarized in the three broad levels listed below:

•

Level 1 — unadjusted quoted prices in active markets for identical investments

•

Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

•

Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities carried at fair value:

ASSETS
Description	Quoted Prices (Level 1)	Other Significant Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Long-Term Investments†:
Corporate Bonds & Notes:
Energy	—	$21,834,451	$1,107,459	$22,941,910
Financials	—	25,411,593	0 *	25,411,593
Health Care	—	15,996,676	0 *	15,996,676
Other Corporate Bonds & Notes	—	121,382,996	—	121,382,996
Asset-Backed Securities	—	13,511,400	—	13,511,400
Senior Loans:
Materials	—	—	534,536	534,536
Other Senior Loans	—	12,957,333	—	12,957,333
Investments in Underlying Funds	$2,216,130	—	—	2,216,130
Convertible Bonds & Notes	—	1,454,860	—	1,454,860
Sovereign Bonds	—	1,400,921	—	1,400,921
Common Stocks:
Energy	173,250	—	0 *	173,250
Industrials	214,891	1,252	—	216,143
Materials	—	—	11,289	11,289
Collateralized Mortgage Obligations	—	309,512	—	309,512
Warrants	—	152,685	—	152,685
Total Investments	$2,604,271	$214,413,679	$1,653,284	$218,671,234

Western Asset High Yield Fund 2025 Annual Report

Notes to Financial Statements (cont’d)

ASSETS (cont’d)
Description	Quoted Prices (Level 1)	Other Significant Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Other Financial Instruments:
Futures Contracts††	$28,000	—	—	$28,000
Forward Foreign Currency Contracts††	—	$287,499	—	287,499
Centrally Cleared Credit Default Swaps on Corporate Issues — Sell Protection††	—	21,665	—	21,665
Centrally Cleared Credit Default Swaps on Corporate Issues — Buy Protection††	—	71,334	—	71,334
Centrally Cleared Credit Default Swaps on Credit Indices — Sell Protection††	—	72,360	—	72,360
Total Other Financial Instruments	$28,000	$452,858	—	$480,858
Total	$2,632,271	$214,866,537	$1,653,284	$219,152,092
LIABILITIES
Description	Quoted Prices (Level 1)	Other Significant Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Other Financial Instruments:
Centrally Cleared Credit Default Swaps on Corporate Issues — Sell Protection††	—	$125,901	—	$125,901

†	See Schedule of Investments for additional detailed categorizations.
*	Amount represents less than $1.
††	Reflects the unrealized appreciation (depreciation) of the instruments.

(b) Purchased options. The Fund may purchase option contracts generally to gain or reduce exposure to certain types of investments or market factors or as a means of attempting to enhance returns. When the Fund purchases an option, an amount equal to the premium paid by the Fund is recorded as an investment on the Statement of Assets and Liabilities, the value of which is marked-to-market to reflect the current market value of the option purchased. If the purchased option expires, the Fund realizes a loss equal to the amount of premium paid. When an instrument is purchased or sold through the exercise of an option, the related premium paid is added to the basis of the instrument acquired or deducted from the proceeds of the instrument sold. The risk associated with purchasing put and call options is limited to the premium paid.

(c) Written options. The Fund may write option contracts generally to gain or reduce exposure to certain types of investments or market factors or as a means of attempting to

Western Asset High Yield Fund 2025 Annual Report

enhance returns. When the Fund writes an option, an amount equal to the premium received by the Fund is recorded as a liability, the value of which is marked-to-market daily to reflect the current market value of the option written. If the option expires, the premium received is recorded as a realized gain. When a written call option is exercised, the difference between the premium received plus the option exercise price and the Fund’s basis in the underlying security (in the case of a covered written call option), or the cost to purchase the underlying security (in the case of an uncovered written call option), including brokerage commission, is recognized as a realized gain or loss. When a written put option is exercised, the amount of the premium received is subtracted from the cost of the security purchased by the Fund from the exercise of the written put option to form the Fund’s basis in the underlying security purchased. The writer or buyer of an option traded on an exchange can liquidate the position before the exercise of the option by entering into a closing transaction. The cost of a closing transaction is deducted from the original premium received resulting in a realized gain or loss to the Fund.

The risk in writing a covered call option is that the Fund may forego the opportunity of profit if the market price of the underlying security increases and the option is exercised. The risk in writing a put option is that the Fund may incur a loss if the market price of the underlying security decreases and the option is exercised. The risk in writing an uncovered call option is that the Fund is exposed to the risk of loss if the market price of the underlying security increases. In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid secondary market.

(d) Futures contracts. The Fund uses futures contracts generally to gain exposure to, or hedge against, changes in interest rates or gain exposure to, or hedge against, changes in certain asset classes. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.

Upon entering into a futures contract, the Fund is required to deposit cash or securities with a broker in an amount equal to a certain percentage of the contract amount. This is known as the ‘‘initial margin’’ and subsequent payments (‘‘variation margin’’) are made or received by the Fund each day, depending on the daily fluctuation in the value of the contract. For certain futures, including foreign denominated futures, variation margin is not settled daily, but is recorded as a net variation margin payable or receivable. The daily changes in contract value are recorded as unrealized appreciation or depreciation in the Statement of Operations and the Fund recognizes a realized gain or loss when the contract is closed.

Futures contracts involve, to varying degrees, risk of loss in excess of the amounts reflected in the financial statements. In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid secondary market.

(e) Forward foreign currency contracts. The Fund enters into a forward foreign currency contract to hedge against foreign currency exchange rate risk on its non-U.S. dollar denominated securities or to facilitate settlement of a foreign currency denominated

Western Asset High Yield Fund 2025 Annual Report

Notes to Financial Statements (cont’d)

portfolio transaction. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price with delivery and settlement at a future date. The contract is marked-to-market daily and the change in value is recorded by the Fund as an unrealized gain or loss. When a forward foreign currency contract is closed, through either delivery or offset by entering into another forward foreign currency contract, the Fund recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value of the contract at the time it is closed.

Forward foreign currency contracts involve elements of market risk in excess of the amounts reflected on the Statement of Assets and Liabilities. The Fund bears the risk of an unfavorable change in the foreign exchange rate underlying the forward foreign currency contract. Risks may also arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts.

(f) Swap agreements. The Fund invests in swaps for the purpose of managing its exposure to interest rate, credit or market risk, or for other purposes. The use of swaps involves risks that are different from those associated with other portfolio transactions. Swap agreements are privately negotiated in the over-the-counter market and may be entered into as a bilateral contract (“OTC Swaps”) or centrally cleared (“Centrally Cleared Swaps”). Unlike Centrally Cleared Swaps, the Fund has credit exposure to the counterparties of OTC Swaps.

In a Centrally Cleared Swap, immediately following execution of the swap, the swap agreement is submitted to a clearinghouse or central counterparty (the “CCP”) and the CCP becomes the ultimate counterparty of the swap agreement. The Fund is required to interface with the CCP through a broker, acting in an agency capacity. All payments are settled with the CCP through the broker. Upon entering into a Centrally Cleared Swap, the Fund is required to deposit initial margin with the broker in the form of cash or securities.

Swap contracts are marked-to-market daily and changes in value are recorded as unrealized appreciation (depreciation). The daily change in valuation of Centrally Cleared Swaps, if any, is recorded as a net receivable or payable for variation margin on the Statement of Assets and Liabilities. Gains or losses are realized upon termination of the swap agreement. Collateral, in the form of restricted cash or securities, may be required to be held in segregated accounts with the Fund’s custodian in compliance with the terms of the swap contracts. Securities posted as collateral for swap contracts are identified in the Schedule of Investments and restricted cash, if any, is identified on the Statement of Assets and Liabilities. Risks may exceed amounts recorded in the Statement of Assets and Liabilities. These risks include changes in the returns of the underlying instruments, failure of the counterparties to perform under the contracts’ terms, and the possible lack of liquidity with respect to the swap agreements.

OTC Swap payments received or made at the beginning of the measurement period are reflected as a premium or deposit, respectively, on the Statement of Assets and Liabilities.

Western Asset High Yield Fund 2025 Annual Report

These upfront payments are amortized over the life of the swap and are recognized as realized gain or loss in the Statement of Operations. Net periodic payments received or paid by the Fund are recognized as a realized gain or loss in the Statement of Operations.

The Fund’s maximum exposure in the event of a defined credit event on a credit default swap to sell protection is the notional amount. As of May 31, 2025, the total notional value of all credit default swaps to sell protection was $4,462,000. This amount would be offset by the value of the swap’s reference entity, upfront premiums received on the swap and any amounts received from the settlement of a credit default swap where the Fund bought protection for the same referenced security/entity.

For average notional amounts of swaps held during the year ended May 31, 2025, see Note 4.

Credit default swaps

The Fund enters into credit default swap (“CDS”) contracts for investment purposes, to manage its credit risk or to add leverage. CDS agreements involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party, typically corporate or sovereign issuers, on a specified obligation, or in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising a credit index. The Fund may use a CDS to provide protection against defaults of the issuers (i.e., to reduce risk where the Fund has exposure to an issuer) or to take an active long or short position with respect to the likelihood of a particular issuer’s default. As a seller of protection, the Fund generally receives an upfront payment or a stream of payments throughout the term of the swap, provided that there is no credit event. If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the maximum potential amount of future payments (undiscounted) that the Fund could be required to make under a CDS agreement would be an amount equal to the notional amount of the agreement. These amounts of potential payments will be partially offset by any recovery of values from the respective referenced obligations. As a seller of protection, the Fund effectively adds leverage to its portfolio because, in addition to its total net assets, the Fund is subject to investment exposure on the notional amount of the swap. As a buyer of protection, the Fund generally receives an amount up to the notional value of the swap if a credit event occurs.

Implied spreads are the theoretical prices a lender receives for credit default protection. When spreads rise, market perceived credit risk rises and when spreads fall, market perceived credit risk falls. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to enter into the agreement. Wider credit spreads and decreasing market values, when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. Credit spreads utilized in determining the period

Western Asset High Yield Fund 2025 Annual Report

Notes to Financial Statements (cont’d)

end market value of CDS agreements on corporate or sovereign issues are disclosed in the Schedule of Investments and serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for credit derivatives. For CDS agreements on asset-backed securities and credit indices, the quoted market prices and resulting values, particularly in relation to the notional amount of the contract as well as the annual payment rate, serve as an indication of the current status of the payment/performance risk.

The Fund’s maximum risk of loss from counterparty risk, as the protection buyer, is the fair value of the contract (this risk is mitigated by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty). As the protection seller, the Fund’s maximum risk is the notional amount of the contract. CDS are considered to have credit risk-related contingent features since they require payment by the protection seller to the protection buyer upon the occurrence of a defined credit event.

Entering into a CDS agreement involves, to varying degrees, elements of credit, market and documentation risk in excess of the related amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreement may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreement, and that there will be unfavorable changes in net interest rates.

(g) Loan participations. The Fund may invest in loans arranged through private negotiation between one or more financial institutions. The Fund’s investment in any such loan may be in the form of a participation in or an assignment of the loan. In connection with purchasing participations, the Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement related to the loan, or any rights of offset against the borrower and the Fund may not benefit directly from any collateral supporting the loan in which it has purchased the participation.

The Fund assumes the credit risk of the borrower, the lender that is selling the participation and any other persons interpositioned between the Fund and the borrower. In the event of the insolvency of the lender selling the participation, the Fund may be treated as a general creditor of the lender and may not benefit from any offset between the lender and the borrower.

(h) Securities traded on a when-issued and delayed delivery basis. The Fund may trade securities on a when-issued or delayed delivery basis. In when-issued and delayed delivery transactions, the securities are purchased or sold by the Fund with payment and delivery taking place in the future in order to secure what is considered to be an advantageous price and yield to the Fund at the time of entering into the transaction.

Purchasing such securities involves risk of loss if the value of the securities declines prior to settlement. These securities are subject to market fluctuations and their current value is determined in the same manner as for other securities.

Western Asset High Yield Fund 2025 Annual Report

(i) Foreign currency translation. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the respective dates of such transactions.

The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from sales of foreign currencies, including gains and losses on forward foreign currency contracts, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the values of assets and liabilities, other than investments in securities, on the date of valuation, resulting from changes in exchange rates.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

(j) Credit and market risk. The Fund invests in high-yield and emerging market instruments that are subject to certain credit and market risks. The yields of high-yield and emerging market debt obligations reflect, among other things, perceived credit and market risks. The Fund’s investments in securities rated below investment grade typically involve risks not associated with higher rated securities including, among others, greater risk related to timely and ultimate payment of interest and principal, greater market price volatility and less liquid secondary market trading. The consequences of political, social, economic or diplomatic changes may have disruptive effects on the market prices of investments held by the Fund. The Fund’s investments in non-U.S. dollar denominated securities may also result in foreign currency losses caused by devaluations and exchange rate fluctuations.

Investments in securities that are collateralized by real estate mortgages are subject to certain credit and liquidity risks. When market conditions result in an increase in default rates of the underlying mortgages and the foreclosure values of underlying real estate properties are materially below the outstanding amount of these underlying mortgages, collection of the full amount of accrued interest and principal on these investments may be

Western Asset High Yield Fund 2025 Annual Report

Notes to Financial Statements (cont’d)

doubtful. Such market conditions may significantly impair the value and liquidity of these investments and may result in a lack of correlation between their credit ratings and values.

(k) Foreign investment risks. The Fund’s investments in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies or may pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Fund. Foreign investments may also subject the Fund to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which affect the market and/or credit risk of the investments.

(l) Counterparty risk and credit-risk-related contingent features of derivative instruments. The Fund may invest in certain securities or engage in other transactions where the Fund is exposed to counterparty credit risk in addition to broader market risks. The Fund may invest in securities of issuers, which may also be considered counterparties as trading partners in other transactions. This may increase the risk of loss in the event of default or bankruptcy by the counterparty or if the counterparty otherwise fails to meet its contractual obligations. The Fund’s subadviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. Market events and changes in overall economic conditions may impact the assessment of such counterparty risk by the subadviser. In addition, declines in the values of underlying collateral received may expose the Fund to increased risk of loss.

With exchange traded and centrally cleared derivatives, there is less counterparty risk to the Fund since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, the credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default of the clearing broker or clearinghouse.

The Fund has entered into master agreements, such as an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement, with certain of its derivative counterparties that govern over-the-counter (“OTC”) derivatives and provide for general obligations, representations, agreements, collateral posting terms, netting provisions in the event of default or termination and credit related contingent features. The credit related contingent features include, but are not limited to, a percentage decrease in the Fund’s net assets or net asset value per share over a specified period of time. If these credit related contingent features were triggered, the derivatives counterparty could terminate the positions and demand payment or require additional collateral.

Western Asset High Yield Fund 2025 Annual Report

Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. However, absent an event of default by the counterparty or a termination of the agreement, the terms of the ISDA Master Agreements do not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities across transactions between the Fund and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction.

Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearinghouse for exchange traded derivatives while collateral terms are contract specific for OTC traded derivatives. Cash collateral that has been pledged to cover obligations of the Fund under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

As of May 31, 2025, the Fund did not have any open OTC derivative transactions with credit related contingent features in a net liability position.

(m) Security transactions and investment income. Security transactions are accounted for on a trade date basis. Interest income (including interest income from payment-in-kind securities) is recorded on the accrual basis. Amortization of premiums and accretion of discounts on debt securities are recorded to interest income over the lives of the respective securities, except for premiums on certain callable debt securities, which are amortized to the earliest call date. Paydown gains and losses on mortgage- and asset-backed securities are recorded as adjustments to interest income. Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities. Foreign dividend income is recorded on the ex-dividend date or as soon as practicable after the Fund determines the existence of a dividend declaration after exercising reasonable due diligence. The cost of investments sold is determined by use of the specific identification method. To the extent any issuer defaults or a credit event occurs that impacts the issuer, the Fund may halt any additional interest income accruals and consider the realizability of interest accrued up to the date of default or credit event.

(n) Distributions to shareholders. Distributions from net investment income of the Fund are declared each business day to shareholders of record and are paid monthly. Distributions of net realized gains, if any, are declared at least annually. Distributions to shareholders of the Fund are recorded on the ex-dividend date and are determined in accordance with income tax regulations, which may differ from GAAP.

(o) Share class accounting. Investment income, common expenses and realized/unrealized gains (losses) on investments are allocated to the various classes of the Fund on the basis of daily net assets of each class. Fees relating to a specific class are charged directly to that share class.

Western Asset High Yield Fund 2025 Annual Report

Notes to Financial Statements (cont’d)

(p) Compensating balance arrangements. The Fund has an arrangement with its custodian bank whereby a portion of the custodian’s fees is paid indirectly by credits earned on the Fund’s cash on deposit with the bank.

(q) Federal and other taxes. It is the Fund’s policy to comply with the federal income and excise tax requirements of the Internal Revenue Code of 1986 (the “Code”), as amended, applicable to regulated investment companies. Accordingly, the Fund intends to distribute its taxable income and net realized gains, if any, to shareholders in accordance with timing requirements imposed by the Code. Therefore, no federal or state income tax provision is required in the Fund’s financial statements.

Management has analyzed the Fund’s tax positions taken on income tax returns for all open tax years and has concluded that as of May 31, 2025, no provision for income tax is required in the Fund’s financial statements. The Fund’s federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.

Under the applicable foreign tax laws, a withholding tax may be imposed on interest, dividends and capital gains at various rates.

(r) Reclassification. GAAP requires that certain components of net assets be reclassified to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. During the current year, the following reclassifications have been made:

	Total Distributable Earnings (Loss)	Paid-in Capital
(a)	$115	$(115)

(a)

Reclassifications are due to non-deductible offering costs and book/tax differences in the treatment of various items.

2. Investment management agreement and other transactions with affiliates

Franklin Templeton Fund Adviser, LLC (“FTFA”) is the Fund’s investment manager. Western Asset Management Company, LLC (“Western Asset”) and Western Asset Management Company Limited (“Western Asset London”) are the Fund’s subadvisers. FTFA, Western Asset and Western Asset London are indirect, wholly-owned subsidiaries of Franklin Resources, Inc. (“Franklin Resources”).

FTFA provides administrative and certain oversight services to the Fund. The Fund pays FTFA an investment management fee, calculated daily and paid monthly, at an annual rate of 0.55% of the Fund’s average daily net assets. For their services, FTFA pays Western Asset and Western Asset London monthly all of the management fee that it receives from the Fund.

Western Asset High Yield Fund 2025 Annual Report

As a result of expense limitation arrangements between the Fund and FTFA, the ratio of total annual fund operating expenses, other than interest, brokerage commissions, taxes, extraordinary expenses, deferred organizational expenses and acquired fund fees and expenses, to average net assets of Class A, Class C, Class R, Class I and Class IS shares did not exceed 1.01%, 1.80%, 1.30%, 0.75% and 0.65%, respectively. In addition, the ratio of total annual fund operating expenses for Class IS shares did not exceed the ratio of total annual fund operating expenses for Class I shares. These expense limitation arrangements cannot be terminated prior to December 31, 2026 without the Board’s consent. In addition, the manager has agreed to waive the Fund’s management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund (the “affiliated money market fund waiver”). The affiliated money market fund waiver is not subject to the recapture provision discussed below.
During the year ended May 31, 2025, fees waived and/or expenses reimbursed amounted to $68,505, which included an affiliated money market fund waiver of $2,194.

FTFA is permitted to recapture amounts waived and/or reimbursed to a class within two years after the fiscal year in which FTFA earned the fee or incurred the expense if the class’ total annual fund operating expenses have fallen to a level below the expense limitation (“expense cap”) in effect at the time the fees were earned or the expenses incurred. In no case will FTFA recapture any amount that would result, on any particular business day of the Fund, in the class’ total annual fund operating expenses exceeding the expense cap or any other lower limit then in effect.

Pursuant to these arrangements, at May 31, 2025, the Fund had remaining fee waivers and/or expense reimbursements subject to recapture by FTFA and respective dates of expiration as follows:

	Class A	Class C	Class R	Class I	Class IS
Expires May 31, 2026	$29,443	$235	$62	$7,641	$9,494
Expires May 31, 2027	44,511	394	249	14,225	6,932
Total fee waivers/expense reimbursements subject to recapture	$73,954	$629	$311	$21,866	$16,426

For the year ended May 31, 2025, FTFA did not recapture any fees.

Franklin Distributors, LLC (“Franklin Distributors”) serves as the Fund’s sole and exclusive distributor. Franklin Distributors is an indirect, wholly-owned broker-dealer subsidiary of Franklin Resources. Franklin Templeton Investor Services, LLC (“Investor Services”) serves as the Fund’s shareholder servicing agent and acts as the Fund’s transfer agent and dividend-paying agent. Investor Services is an indirect, wholly-owned subsidiary of Franklin Resources. Each class of shares of the Fund pays transfer agent fees to Investor Services for its performance of shareholder servicing obligations. Investor Services charges account-based fees based on the number of individual shareholder accounts, as well as a fixed percentage fee based on the total account-based fees charged. In addition, each class reimburses Investor Services for out of pocket expenses incurred. For the year ended

Western Asset High Yield Fund 2025 Annual Report

Notes to Financial Statements (cont’d)

May 31, 2025, the Fund incurred transfer agent fees as reported on the Statement of Operations, of which $8,874 was earned by Investor Services.

There is a maximum initial sales charge of 3.75% for Class A shares. There is a contingent deferred sales charge (“CDSC”) of 1.00% on Class C shares, which applies if redemption occurs within 12 months from purchase payment. In certain cases, Class A shares have a 1.00% CDSC, which applies if redemption occurs within 18 months from purchase payment. This CDSC only applies to those purchases of Class A shares, which, when combined with current holdings of other shares of funds sold by Franklin Distributors, equal or exceed $500,000 in the aggregate. These purchases do not incur an initial sales charge.

For the year ended May 31, 2025, sales charges retained by and CDSCs paid to Franklin Distributors and its affiliates, if any, were as follows:

	Class A
Sales charges	$6,829
CDSCs	6,170

All officers and one Director of the Corporation are employees of Franklin Resources or its affiliates and do not receive compensation from the Corporation.

3. Investments

During the year ended May 31, 2025, the aggregate cost of purchases and proceeds from sales of investments (excluding short-term investments) were as follows:

Purchases	$90,914,402
Sales	96,572,526

At May 31, 2025, the aggregate cost of investments and the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were as follows:

	Cost/Premiums Paid (Received)	Gross Unrealized Appreciation	Gross Unrealized Depreciation	Net Unrealized Appreciation (Depreciation)
Securities	$224,143,533	$6,231,822	$(11,704,121)	$(5,472,299)
Futures contracts	—	28,000	—	28,000
Forward foreign currency contracts	—	287,499	—	287,499
Swap contracts	(41,809)	165,359	(125,901)	39,458

Western Asset High Yield Fund 2025 Annual Report

4. Derivative instruments and hedging activities

Below is a table, grouped by derivative type, that provides information about the fair value and the location of derivatives within the Statement of Assets and Liabilities at May 31, 2025.

ASSET DERIVATIVES1
	Interest Rate Risk	Foreign Exchange Risk	Credit Risk	Total
Futures contracts2	$28,000	—	—	$28,000
Forward foreign currency contracts	—	$287,499	—	287,499
Centrally cleared swap contracts3	—	—	$165,359	165,359
Total	$28,000	$287,499	$165,359	$480,858

LIABILITY DERIVATIVES1
	Credit Risk
Centrally cleared swap contracts3	$125,901

1	Generally, the balance sheet location for asset derivatives is receivables/net unrealized appreciation and for liability derivatives is payables/net unrealized depreciation.
2	Includes cumulative unrealized appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only net variation margin is reported within the receivables and/or payables on the Statement of Assets and Liabilities.
3	Includes cumulative unrealized appreciation (depreciation) of centrally cleared swap contracts as reported in the Schedule of Investments. Only net variation margin is reported within the receivables and/or payables on the Statement of Assets and Liabilities.

The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the year ended May 31, 2025. The first table provides additional detail about the amounts and sources of gains (losses) realized on derivatives during the period. The second table provides additional information about the change in net unrealized appreciation (depreciation) resulting from the Fund’s derivatives and hedging activities during the period.

AMOUNT OF NET REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED
	Interest Rate Risk	Foreign Exchange Risk	Credit Risk	Total
Purchased options1	$(26,220 )	—	—	$(26,220 )
Futures contracts	58,857	—	—	58,857
Written options	51,750	—	—	51,750
Swap contracts	—	—	$288,830	288,830
Forward foreign currency contracts	—	$82,624	—	82,624
Total	$84,387	$82,624	$288,830	$455,841

1	Net realized gain (loss) from purchased options is reported in Net Realized Gain (Loss) From Investment transactions in unaffiliated securities in the Statement of Operations.

Western Asset High Yield Fund 2025 Annual Report

Notes to Financial Statements (cont’d)

CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED
	Interest Rate Risk	Foreign Exchange Risk	Credit Risk	Total
Futures contracts	$45,195	—	—	$45,195
Swap contracts	—	—	$(25,554 )	(25,554 )
Forward foreign currency contracts	—	$197,138	—	197,138
Total	$45,195	$197,138	$(25,554 )	$216,779

During the year ended May 31, 2025, the volume of derivative activity for the Fund was as follows:

	Average Market Value*
Purchased options†	$1,297
Written options†	10,417
Futures contracts (to buy)	8,187,858
Forward foreign currency contracts (to buy)	5,958,728
	Average Notional Balance**
Credit default swap contracts (buy protection)	$1,317,846
Credit default swap contracts (sell protection)	5,123,000

*	Based on the average of the market values at each month-end during the period.
†	At May 31, 2025, there were no open positions held in this derivative.
**	Based on the average of the notional amounts at each month-end during the period.

The following table presents the Fund’s OTC derivative assets and liabilities by counterparty net of amounts available for offset under an ISDA Master Agreement and net of the related collateral pledged (received) by the Fund as of May 31, 2025.

Counterparty	Gross Assets Subject to Master Agreements1	Gross Liabilities Subject to Master Agreements	Net Assets (Liabilities) Subject to Master Agreements	Collateral Pledged (Received)	Net Amount2,3
Bank of America N.A.	$204,461	—	$204,461	—	$204,461
Citibank N.A.	83,038	—	83,038	—	83,038
Total	$287,499	—	$287,499	—	$287,499

1	Absent an event of default or early termination, derivative assets and liabilities are presented gross and not offset in the Statement of Assets and Liabilities.
2	Net amount may also include forward foreign currency exchange contracts that are not required to be collateralized.
3	Represents the net amount receivable (payable) from (to) the counterparty in the event of default.

5. Class specific expenses, waivers and/or expense reimbursements

The Fund has adopted a Rule 12b-1 shareholder services and distribution plan and under that plan the Fund pays service and/or distribution fees with respect to its Class A, Class C and Class R shares calculated at the annual rate of 0.25%, 1.00% and 0.50% of the average

Western Asset High Yield Fund 2025 Annual Report

daily net assets of each class, respectively. Service and/or distribution fees are accrued daily and paid monthly.

For the year ended May 31, 2025, class specific expenses were as follows:

	Service and/or Distribution Fees	Transfer Agent Fees
Class A	$465,449	$120,353
Class C	16,448	1,147
Class R	598	397
Class I	—	34,798
Class IS	—	4,895
Total	$482,495	$161,590

For the year ended May 31, 2025, waivers and/or expense reimbursements by class were as follows:

	Waivers/Expense Reimbursements
Class A	$46,331
Class C	410
Class R	250
Class I	14,495
Class IS	7,019
Total	$68,505

6. Distributions to shareholders by class

	Year Ended May 31, 2025	Year Ended May 31, 2024
Net Investment Income:
Class A	$13,748,562	$13,077,193
Class C	108,902	94,221
Class R	8,432	6,169
Class I	2,098,790	2,517,595
Class IS	662,765	2,174,937
Total	$16,627,451	$17,870,115

Western Asset High Yield Fund 2025 Annual Report

Notes to Financial Statements (cont’d)

7. Capital shares

At May 31, 2025, the Corporation had 42.7 billion shares of capital stock authorized with a par value of $0.001 per share. Transactions in shares of each class were as follows:

	Year Ended May 31, 2025		Year Ended May 31, 2024
	Shares	Amount	Shares	Amount
Class A
Shares sold	3,166,563	$22,019,507	2,905,970	$19,722,276
Shares issued on reinvestment	1,952,782	13,575,931	1,901,719	12,886,897
Shares repurchased	(4,171,669 )	(28,944,168 )	(4,076,347 )	(27,575,074 )
Net increase	947,676	$6,651,270	731,342	$5,034,099
Class C
Shares sold	18,836	$128,628	122,453	$821,948
Shares issued on reinvestment	14,875	102,493	12,654	85,008
Shares repurchased	(92,653 )	(637,270 )	(63,333 )	(425,055 )
Net increase (decrease)	(58,942 )	$(406,149 )	71,774	$481,901
Class R
Shares sold	3,045	$21,012	8,314	$56,300
Shares issued on reinvestment	1,222	8,432	909	6,115
Shares repurchased	(431 )	(2,988 )	(11,405 )	(77,036 )
Net increase (decrease)	3,836	$26,456	(2,182 )	$(14,621 )
Class I
Shares sold	1,740,728	$11,996,902	1,328,626	$8,893,297
Shares issued on reinvestment	251,477	1,735,069	293,159	1,971,446
Shares repurchased	(2,855,693 )	(19,713,507 )	(2,447,180 )	(16,389,149 )
Net decrease	(863,488 )	$(5,981,536 )	(825,395 )	$(5,524,406 )
Class IS
Shares sold	866,352	$6,013,431	372,017	$2,530,971
Shares issued on reinvestment	94,667	662,559	311,540	2,124,618
Shares repurchased	(1,987,447 )	(13,888,161 )	(3,644,973 )	(25,072,024 )
Net decrease	(1,026,428 )	$(7,212,171 )	(2,961,416 )	$(20,416,435 )

8. Transactions with affiliated company

As defined by the 1940 Act, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control with the Fund. The following company was considered an affiliated company for

Western Asset High Yield Fund 2025 Annual Report

all or some portion of the year ended May 31, 2025. The following transactions were effected in such company for the year ended May 31, 2025.

	Affiliate Value at May 31, 2024	Purchased		Sold
	Affiliate Value at May 31, 2024	Cost	Shares	Proceeds	Shares
Western Asset Premier Institutional Government Reserves, Premium Shares	$2,248,421	$68,370,111	68,370,111	$70,618,532	70,618,532

(cont’d)	Realized Gain (Loss)	Dividend Income	Net Increase (Decrease) in Unrealized Appreciation (Depreciation)	Affiliate Value at May 31, 2025
Western Asset Premier Institutional Government Reserves, Premium Shares	—	$89,943	—	—

9. Restricted securities

The following Fund investments are restricted as to resale and, in the absence of readily ascertainable market values, are fair valued in accordance with procedures approved by the Board.

Security	Number of Shares/ Warrants	Acquisition Date	Cost	Fair Value at 5/31/2025	Value Per Share/Warrant	Percent of Net Assets
Spirit Airlines LLC, Common Shares	209	3/25	$2,544	$1,252	$5.99	0.00 %(a)
Spirit Airlines LLC, Warrants	25,490	3/25	310,299	$152,685 (b)	$5.99	0.07
			$312,843	$153,937		0.07 %

(a)	Amount represents less than 0.005%.
(b)	Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid pursuant to guidelines approved by the Board.

10. Redemption facility

The Fund, together with other U.S. registered and foreign investment funds (collectively, the “Borrowers”) managed by Franklin Resources or its affiliates, is a borrower in a joint syndicated senior unsecured credit facility totaling $2.995 billion (the “Global Credit Facility”). The Global Credit Facility provides a source of funds to the Borrowers for temporary and emergency purposes, including the ability to meet future unanticipated or

Western Asset High Yield Fund 2025 Annual Report

Notes to Financial Statements (cont’d)

unusually large redemption requests. Unless renewed, the Global Credit Facility will terminate on January 30, 2026.

Under the terms of the Global Credit Facility, the Fund shall, in addition to interest charged on any borrowings made by the Fund and other costs incurred by the Fund, pay its share of fees and expenses incurred in connection with the implementation and maintenance of the Global Credit Facility, based upon its relative share of the aggregate net assets of all the Borrowers, including an annual commitment fee of 0.15% based upon the unused portion of the Global Credit Facility. These fees are reflected in the Statement of Operations. The Fund did not utilize the Global Credit Facility during the year ended May 31, 2025.

11. Income tax information and distributions to shareholders

The tax character of distributions paid during the fiscal years ended May 31, was as follows:

	2025	2024
Distributions paid from:
Ordinary income	$16,627,451	$17,870,115

As of May 31, 2025, the components of distributable earnings (loss) on a tax basis were as follows:

Undistributed ordinary income — net	$785,063
Deferred capital losses*	(156,253,744)
Other book/tax temporary differences(a)	(335,097)
Unrealized appreciation (depreciation)(b)	(5,153,776)
Total distributable earnings (loss) — net	$(160,957,554)

*	These capital losses have been deferred in the current year as either short-term or long-term losses. The losses will be deemed to occur on the first day of the next taxable year in the same character as they were originally deferred and will be available to offset future taxable capital gains.
(a)	Other book/tax temporary differences are attributable to the realization for tax purposes of unrealized gains (losses) on futures and foreign currency contracts, the difference between cash and accrual basis distributions paid.
(b)	The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable to the tax deferral of losses on wash sales, book/tax differences in the accrual of interest income on securities in default and other book/tax basis adjustments.

12. Recent accounting pronouncement

In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-09, Income Taxes (Topic 740) – Improvements to Income Tax Disclosures. The amendments enhance income tax disclosures by requiring greater disaggregation in the rate reconciliation and income taxes paid by jurisdiction, while removing certain disclosure requirements. The ASU is effective for annual periods beginning after December 15, 2024, with early adoption permitted. Management is currently evaluating the impact and believes that the adoption of the ASU will not have a material impact on the financial statements.

Western Asset High Yield Fund 2025 Annual Report

13. Operating segments

The Fund has adopted the Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures. The update is limited to disclosure requirements and does not impact the Fund’s financial position or results of operations.

The Fund operates as a single operating segment, which is an investment portfolio. The Fund’s Investment Manager serves as the Chief Operating Decision Maker (CODM), evaluating fund-wide results and performance under a unified investment strategy. The CODM uses these measures to assess fund performance and allocate resources effectively. Internal reporting provided to the CODM aligns with the accounting policies and measurement principles used in the financial statements.

For information regarding segment assets, segment profit or loss, and significant expenses, refer to the Statement of Assets and Liabilities and the Statement of Operations, along with the related Notes to Financial Statements. The Fund’s Schedule of Investments provides details of the Fund’s investments that generate returns such as interest, dividends, and realized and unrealized gains or losses. Performance metrics, including portfolio turnover and expense ratios, are disclosed in the Financial Highlights.

Western Asset High Yield Fund 2025 Annual Report

Report of Independent Registered Public Accounting Firm

To the Board of Directors of Western Asset Funds, Inc. and Shareholders of Western Asset High Yield Fund

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Western Asset High Yield Fund (one of the funds constituting Western Asset Funds, Inc., referred to hereafter as the “Fund”) as of May 31, 2025, the related statement of operations for the year ended May 31, 2025, the statement of changes in net assets for each of the two years in the period ended May 31, 2025, including the related notes, and the financial highlights for each of the five years in the period ended May 31, 2025 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of May 31, 2025, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended May 31, 2025 and the financial highlights for each of the five years in the period ended May 31, 2025 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of May 31, 2025 by correspondence with the custodian, transfer agent, agent banks and brokers; when replies were not received, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/PricewaterhouseCoopers LLP

Baltimore, Maryland
July 23, 2025

We have served as the auditor of one or more investment companies in the Franklin Templeton Group of Funds since 1948.

Western Asset High Yield Fund 2025 Annual Report

Important Tax Information (unaudited)

By mid-February, tax information related to a shareholder’s proportionate share of distributions paid during the preceding calendar year will be received, if applicable. Please also refer to www.franklintempleton.com for per share tax information related to any distributions paid during the preceding calendar year. Shareholders are advised to consult with their tax advisors for further information on the treatment of these amounts on their tax returns.

The following tax information for the Fund is required to be furnished to shareholders with respect to income earned and distributions paid during its fiscal year.

The Fund hereby reports the following amounts, or if subsequently determined to be different, the maximum allowable amounts, for the fiscal year ended May 31, 2025:

	Pursuant to:	Amount Reported
Income Eligible for Dividends Received Deduction (DRD)	§854(b)(1)(A)	$12,628
Qualified Dividend Income Earned (QDI)	§854(b)(1)(B)	$12,628
Qualified Net Interest Income (QII)	§871(k)(1)(C)	$9,724,529
Section 163(j) Interest Earned	§163(j)	$17,343,206
Interest Earned from Federal Obligations	Note (1)	$90,087

Note (1) - The law varies in each state as to whether and what percentage of dividend income attributable to Federal obligations is exempt from state income tax. Shareholders are advised to consult with their tax advisors to determine if any portion of the dividends received is exempt from state income taxes.

Western Asset High Yield Fund

Board Approval of Management and

Subadvisory Agreements (unaudited)

The Executive and Contracts Committee of the Board of Directors (the “Executive and Contracts Committee”) considered the Investment Management Agreement between the Corporation and Franklin Templeton Fund Adviser, LLC (“FTFA”) with respect to the Fund and the following subadvisory agreements with respect to the Fund (collectively, the “Agreements”) (i) a subadvisory agreement between FTFA and Western Asset Management Company, LLC (“Western Asset”) with respect to the Fund, and (ii) a subadvisory agreement between FTFA and Western Asset Management Company Limited (“WAML” or the “Non-U.S. Subadviser,” and together with Western Asset, the “Subadvisers,” and together with FTFA, the “Advisers”) with respect to the Fund at a meeting held on April 29, 2025. At an in-person meeting held on May 13, 2025, the Executive and Contracts Committee reported to the full Board of Directors their considerations and recommendation with respect to the Agreements, and the Board of Directors, including a majority of the Independent Directors, considered and approved renewal of the Agreements.

The Directors noted that although Western Asset’s business is operated through separate legal entities, such as the Non-U.S. Subadviser, senior investment personnel at Western Asset have supervisory oversight responsibility over the investment decisions made by the Non-U.S. Subadviser. Therefore, in connection with their deliberations noted below, the Directors primarily focused on the information provided by Western Asset when considering the approval of the Agreement between FTFA and the Non-U.S. Subadviser.

In arriving at their decision to approve the renewal of the Agreements, the Directors met with representatives of the Advisers, including relevant investment advisory personnel; considered a variety of information prepared by the Advisers, materials provided by Broadridge and advice and materials provided by counsel to the Independent Directors; reviewed performance and expense information for peer groups of comparable funds selected by Broadridge (the “Performance Universe”) and certain other comparable products available from Western Asset or affiliates of Western Asset, including separate accounts managed by Western Asset; and requested and reviewed additional information as necessary. These reviews were in addition to information obtained by the Directors at their regular quarterly meetings (and various committee meetings) with respect to the Fund’s performance and other relevant matters and related discussions with the Advisers’ personnel. The information received and considered by the Board both in conjunction with the May meeting and at prior meetings was both written and oral. With respect to the Broadridge materials, the Board was provided with a description of the methodology used to determine the similarity of the Fund with the funds included in the Performance Universe. It was noted that while the Board found the Broadridge data generally useful they recognized its limitations, including that the data may vary depending on the end date selected and that the results of the performance comparisons may vary depending on the selection of the peer group and its composition over time.

Western Asset High Yield Fund

Board Approval of Management and

Subadvisory Agreements (unaudited) (cont’d)

As part of their review, the Directors examined FTFA’s ability to provide high quality oversight and administrative and shareholder support services to the Fund and the Subadvisers’ ability to provide high quality investment management services to the Fund. The Directors considered the experience of FTFA’s personnel in providing the types of services that FTFA is responsible for providing to the Fund; the ability of FTFA to attract and retain capable personnel; and the capability and integrity of FTFA’s senior management and staff. The Directors also considered the investment philosophy and research and decision-making processes of the Subadvisers; the experience of their key advisory personnel responsible for management of the Fund; the ability of the Subadvisers to attract and retain capable research and advisory personnel; the risks to the Advisers associated with sponsoring the Fund (such as entrepreneurial, operational, reputational, litigation and regulatory risk), as well as FTFA’s and each Subadviser’s risk management processes; the capability and integrity of the Advisers’ senior management and staff; and the level of skill required to manage the Fund. In addition, the Directors reviewed the quality of the Advisers’ services with respect to regulatory compliance and compliance with the investment policies of the Fund, and conditions that might affect the Advisers’ ability to provide high quality services to the Fund in the future, including their business reputations, financial conditions and operational stabilities. Based on the foregoing, the Directors concluded that the Subadvisers’ investment process, research capabilities and philosophy were well suited to the Fund given its investment objectives and policies, and that the Advisers would be able to meet any reasonably foreseeable obligations under the Agreements.

The Board reviewed the qualifications, backgrounds and responsibilities of FTFA’s and Western Asset’s senior personnel and the team of investment professionals primarily responsible for the day-to-day portfolio management of the Fund. The Board also considered, based on its knowledge of FTFA and its affiliates, the financial resources of Franklin Resources, Inc., the parent organization of the Advisers. The Board recognized the importance of having a fund manager with significant resources.

In reviewing the quality of the services provided to the Fund, the Directors also reviewed comparisons of the performance of the Fund to the performance of certain comparable funds and to its investment benchmark over the 1-, 3-, 5- and 10-year periods ended December 31, 2024. The information comparing the Fund’s performance to that of its Performance Universe, consisting of all funds (including the Fund) classified as retail and institutional high yield funds by Broadridge, showed, among other data, that the Fund’s performance for the 1-year period ended December 31, 2024 was above the median, that the Fund’s performance for the 5- and 10-year periods ended December 31, 2024 was slightly below the median, and that the Fund’s performance for the 3-year period ended December 31, 2024 was below the median. The Board noted that the Fund’s performance trailed that of its benchmark index for the 3-, 5- and 10-year periods ended December 31, 2024 and exceeded that of its benchmark index for the 1-year period ended December 31,

Western Asset High Yield Fund

2024. The Board considered the factors involved in the Fund’s performance relative to the performance of its investment benchmark and Performance Universe.

The Directors also considered the management fee payable by the Fund to FTFA, total expenses payable by the Fund and the fee that FTFA pays to the Subadvisers. They reviewed information concerning management fees paid to investment advisers of similarly managed funds as well as fees paid by Western Asset’s other clients, including separate accounts managed by Western Asset. The Directors also noted that the Fund does not pay any management fees directly to any of the Subadvisers because FTFA pays the Subadvisers for services provided to the Fund out of the management fee FTFA receives from the Fund. The information comparing the Fund’s Contractual and Actual Management Fees as well as its actual total expense ratio to its peer group, consisting of a group of institutional high yield funds (including the Fund) chosen by Broadridge to be comparable to the Fund, showed that the Fund’s Contractual Management Fee was below the median and the Actual Management Fee was above the median. The Board noted that the Fund’s actual total expense ratio was above the median. The Board also considered that the current limitation on the Fund’s expenses is expected to continue through December 2026.

The Directors further evaluated the benefits of the advisory relationship to the Advisers, including, among others, the profitability of the relationship to the Advisers; the direct and indirect benefits that the Advisers may receive from their relationships with the Fund, including the “fallout benefits,” such as reputational value derived from serving as investment adviser to the Fund; and the affiliation between the Advisers and certain other service providers for the Fund. In that connection, the Board considered that the ancillary benefits that the Advisers receive were reasonable. The Directors noted that Western Asset does not have soft dollar arrangements.

Finally, the Directors considered, in light of the profitability information provided by the Advisers, the extent to which economies of scale would be realized by the Advisers as the assets of the Fund grow. The Board noted that the Fund’s Contractual Management Fee was below the median of the peer group and the Actual Management Fee was above the median of the peer group. The Board also noted the size of the Fund.

In their deliberations with respect to these matters, the Independent Directors were advised by their independent counsel, who is independent, within the meaning of the Securities and Exchange Commission rules regarding the independence of counsel, of the Advisers. The Independent Directors weighed the foregoing matters in light of the advice given to them by their independent counsel as to the law applicable to the review of investment advisory contracts. In arriving at a decision, the Directors, including the Independent Directors, did not identify any single matter as all-important or controlling, and each Director may have attributed different weight to the various factors in evaluating the Agreements. The foregoing summary does not detail all the matters considered. The Directors judged the

Western Asset High Yield Fund

Board Approval of Management and

Subadvisory Agreements (unaudited) (cont’d)

terms and conditions of the Agreements, including the investment advisory fees, in light of all of the surrounding circumstances.

Based upon their review, the Directors, including all of the Independent Directors, determined, in the exercise of their business judgment, that they were satisfied with the quality of investment advisory services being provided by the Advisers; that the fees to be paid to the Advisers under the Agreements were fair and reasonable given the scope and quality of the services rendered by the Advisers; and that approval of the Agreements was in the best interest of the Fund and its shareholders.

Western Asset High Yield Fund

Western Asset

High Yield Fund

Directors

Robert Abeles, Jr.

Jane F. Dasher

Anita L. DeFrantz

Susan B. Kerley

Michael Larson

Ronald L. Olson

Avedick B. Poladian

William E.B. Siart
Chair

Jaynie M. Studenmund

Peter J. Taylor

Jane Trust

Investment manager

Franklin Templeton Fund Adviser, LLC

Subadvisers

Western Asset Management Company, LLC

Western Asset Management Company Limited

Distributor

Franklin Distributors, LLC

Custodian

The Bank of New York Mellon

Transfer agent

Franklin Templeton Investor
Services, LLC
3344 Quality Drive
Rancho Cordova, CA 95670-7313

Independent registered
public accounting firm

PricewaterhouseCoopers LLP
Baltimore, MD

Western Asset High Yield Fund

The Fund is a separate investment series of Western Asset Funds, Inc.

Western Asset High Yield Fund
Legg Mason Funds
100 International Drive
Baltimore, MD 21202

The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Forms N-PORT are available on the SEC’s website at www.sec.gov. To obtain information on Form N-PORT, shareholders can call the Fund at 877-6LM-FUND/656-3863.

Information on how the Fund voted proxies relating to portfolio securities during the prior 12-month period ended June 30th of each year and a description of the policies and procedures that the Fund uses to determine how to vote proxies related to portfolio transactions are available (1) without charge, upon request, by calling the Fund at 877-6LM-FUND/656-3863, (2) at www.franklintempleton.com and (3) on the SEC’s website at www.sec.gov.

This report is submitted for the general information of the shareholders of Western Asset High Yield Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by a current prospectus.

Investors should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other important information about the Fund. Please read the prospectus carefully before investing.

www.franklintempleton.com

Franklin Templeton Funds Privacy and Security Notice

Your Privacy Is Our Priority

Franklin Templeton* is committed to safeguarding your personal information. This notice is designed to provide you with a summary of the non-public personal information Franklin Templeton may collect and maintain about current or former individual investors; our policy regarding the use of that information; and the measures we take to safeguard the information. We do not sell individual investors’ non-public personal information to anyone and only share it as described in this notice.

Information We Collect

When you invest with us, you provide us with your non-public personal information. We collect and use this information to service your accounts and respond to your requests. The non-public personal information we may collect falls into the following categories:

• Information we receive from you or your financial intermediary on applications or other forms, whether we receive the form in writing or electronically. For example, this information may include your name, address, tax identification number, birth date, investment selection, beneficiary information, and your personal bank account information and/or email address if you have provided that information.

• Information about your transactions and account history with us, or with other companies that are part of Franklin Templeton, including transactions you request on our website or in our app. This category also includes your communications to us concerning your investments.

• Information we receive from third parties (for example, to update your address if you move, obtain or verify your email address or obtain additional information to verify your identity).

• Information collected from you online, such as your IP address or device ID and data gathered from your browsing activity and location. (For example, we may use cookies to collect device and browser information so our website recognizes your online preferences and device information.) Our website contains more information about cookies and similar technologies and ways you may limit them.

• Other general information that we may obtain about you such as demographic information.

Disclosure Policy

To better service your accounts and process transactions or services you requested, we may share non-public personal information with other Franklin Templeton companies. From time to time we may also send you information about products/services offered by other Franklin Templeton companies although we will not share your non-public personal information with these companies without first offering you the opportunity to prevent that sharing.

NOT PART OF THE ANNUAL REPORT

Franklin Templeton Funds Privacy and Security Notice

(cont’d)

We will only share non-public personal information with outside parties in the limited circumstances permitted by law. For example, this includes situations where we need to share information with companies who work on our behalf to service or maintain your account or process transactions you requested, when the disclosure is to companies assisting us with our own marketing efforts, when the disclosure is to a party representing you, or when required by law (for example, in response to legal process). Additionally, we will ensure that any outside companies working on our behalf, or with whom we have joint marketing agreements, are under contractual obligations to protect the confidentiality of your information, and to use it only to provide the services we asked them to perform.

Confidentiality and Security

Our employees are required to follow procedures with respect to maintaining the confidentiality of our investors’ non-public personal information. Additionally, we maintain physical, electronic and procedural safeguards to protect the information. This includes performing ongoing evaluations of our systems containing investor information and making changes when appropriate.

At all times, you may view our current privacy notice on our website at
https://www.franklintempleton.com/help/privacy-policy or contact us for a copy at (800) 632-2301.

*For purposes of this privacy notice Franklin Templeton shall refer to the following entities:

Fiduciary Trust International of the South (FTIOS), as custodian for individual retirement plans

Franklin Advisers, Inc.

Franklin Distributors, LLC, including as program manager of the Franklin Templeton 529 College Savings Plan and the NJBEST 529 College Savings Plan

Franklin Mutual Advisers, LLC

Franklin, Templeton and Mutual Series Funds

Franklin Templeton Institutional, LLC

Franklin Templeton Investments Corp., Canada

Franklin Templeton Investments Management, Limited UK

Legg Mason Funds

Templeton Asset Management, Limited

Templeton Global Advisors, Limited

Templeton Investment Counsel, LLC

If you are a customer of other Franklin Templeton affiliates and you receive notices from them, you will need to read those notices separately.

NOT PART OF THE ANNUAL REPORT

The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.

The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR, as applicable.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees that would require disclosure herein.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this Report to be signed on its behalf by the undersigned, there unto duly authorized.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Changes in and Disagreements with Accountants	For the period covered by this report
Not applicable.
Results of Meeting(s) of Shareholders	For the period covered by this report
Not applicable.
Remuneration Paid to Directors, Officers and Others	For the period covered by this report
Refer to the financial statements included herein.

Western Asset Funds, Inc.

By:	/s/ Jane Trust
	Jane Trust
	Chief Executive Officer

By:	/s/ Christopher Berarducci
	Christopher Berarducci
	Principal Financial Officer