Schedule of Investments (unaudited)
July 31, 2026
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 Western Asset Municipal High Income Fund Inc.

(Percentages shown based on Fund net assets) 
Security
 
Rate
Maturity
Date
Face
Amount
Value
Municipal Bonds — 92.3%
Alabama — 5.1%
Black Belt Energy Gas District, AL, Gas Project Revenue, Series D-1, Refunding
5.500%
2/1/29
 $200,000
 $208,534
 (a)(b)
Jefferson County, AL, Sewer Revenue:
Warrants, Series 2024, Refunding
5.250%
10/1/45
1,500,000
1,581,894
 
Warrants, Series 2024, Refunding
5.250%
10/1/49
2,000,000
2,065,400
 
Warrants, Series 2024, Refunding
5.500%
10/1/53
1,000,000
1,039,448
 
Mobile County, AL, IDA Revenue:
Solid Waste Disposal Facility, Calvert LLC Project, Series A
5.000%
6/1/54
290,000
279,922
 (c)
Solid Waste Disposal Facility, Calvert LLC Project, Series B
4.750%
12/1/54
250,000
233,966
 (c)
Southeast Alabama Gas Supply District, Gas Supply Revenue, Project No 1,
Series A, Refunding
5.000%
4/1/32
350,000
365,073
 
Southeast Energy Authority, AL, Cooperative District, Energy Supply Revenue:
Series B
5.250%
1/1/33
525,000
535,515
 (a)(b)
Series D
5.000%
9/1/35
1,400,000
1,484,232
 
Total Alabama
7,793,984
Alaska — 0.6%
Anchorage, AK, Port Revenue, Series A
5.000%
12/1/50
250,000
251,142
 (c)
Northern Tobacco Securitization Corp., AK, Revenue, Asset Backed Senior
Bonds, Class 1, Series A, Refunding
4.000%
6/1/50
250,000
209,873
 
Northern Tobacco Securitization Corp., AK, Tobacco Settlement Revenue:
Asset Backed Senior Bonds, Class 1, Series A, Refunding
4.000%
6/1/36
400,000
404,080
 
Asset Backed Senior Bonds, Class 2, Series B-1, Refunding
4.000%
6/1/50
120,000
115,353
 
Total Alaska
980,448
Arizona — 5.0%
Arizona State, IDA Education Revenue, CHF Arizona LLC, University of Arizona
Project, Series A, BAM
5.000%
7/1/51
200,000
203,519
 
Arizona, AZ, IDA Revenue, Doral Academy of Northern Nevada Project, Series
A, Refunding
4.000%
7/15/51
500,000
381,832
 (d)
Chandler, AZ, IDA Revenue:
Intel Corp. Project
3.800%
6/15/28
800,000
807,374
 (a)(b)
Intel Corp. Project
4.100%
6/15/28
250,000
252,807
 (a)(b)(c)
Intel Corp. Project
4.000%
6/1/29
600,000
604,805
 (a)(b)(c)
La Paz County, AZ, IDA Revenue, Charter School Solutions, Harmony Public
School Project, Series A
5.000%
2/15/36
1,000,000
1,000,186
 (d)
Maricopa County, AZ, IDA Revenue, Legacy Traditional Schools Project,
Series 2019, Refunding
5.000%
7/1/49
500,000
460,958
 (d)
Navajo Nation, AZ, Revenue, Series A, Refunding
5.500%
12/1/30
190,000
190,172
 (d)
Phoenix, AZ, IDA Revenue:
Basis School Inc., Refunding
5.000%
7/1/35
950,000
950,005
 (d)
Great Hearts Academies, Refunding
5.000%
7/1/41
1,200,000
1,195,755
 
Salt Verde, AZ, Financial Corp., Natural Gas Revenue, Series 2007
5.000%
12/1/37
1,500,000
1,534,725
 
Total Arizona
7,582,138
California — 11.6%
Alameda, CA, Corridor Transportation Authority Revenue:
Convertible CAB, Series C, AG
5.000%
10/1/52
600,000
612,459
 
Second Subordinated Lien, Series B, Refunding
5.000%
10/1/34
500,000
501,086
 
See Notes to Schedule of Investments.
1
Western Asset Municipal High Income Fund Inc. 2026 Quarterly Report
Schedule of Investments (unaudited) (cont’d)
July 31, 2026
 Western Asset Municipal High Income Fund Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount
Value
California — continued
California State Community Choice Financing Authority Revenue:
Clean Energy Project, Green Bonds, Series B
5.000%
12/1/32
 $1,500,000
 $1,531,568
 (a)(b)
Clean Energy Project, Green Bonds, Series B-1
5.000%
8/1/29
500,000
518,390
 (a)(b)
Clean Energy Project, Green Bonds, Series C
5.000%
10/1/32
250,000
257,031
 (a)(b)
Clean Energy Project, Green Bonds, Series E
5.000%
9/1/32
1,300,000
1,361,514
 (a)(b)
Clean Energy Project, Green Bonds, Series G
5.000%
12/1/35
550,000
587,096
 
Clean Energy Project, Green Bonds, Series H
5.000%
8/1/33
500,000
529,170
 (a)(b)
California State Community Housing Agency, Essential Housing Revenue,
Stoneridge Apartments, Series A
4.000%
2/1/56
500,000
385,279
 (d)
California State MFA Revenue:
Senior Lien, LINXS APM Project, Series A
5.000%
12/31/43
700,000
705,992
 (c)
SFMTA Potrero Yard Modernization Project, Series A
5.000%
9/1/60
500,000
509,344
 
California State PCFA Water Furnishing Revenue, San Diego County Water
Authority Desalination Project, Refunding
5.000%
7/1/39
700,000
712,993
 (d)
California State Public Finance Authority, Senior Living Revenue, Enso Village
Project, Green Bonds, Series A
5.000%
11/15/36
250,000
250,659
 (d)
Inland Valley, CA, Development Agency, Successor Agency Tax Allocation
Revenue, Series A, Refunding
5.000%
9/1/44
500,000
504,073
 
Mountain House Public Financing Authority, CA, Utility Systems Revenue,
Green Bonds, Series A, BAM
4.000%
12/1/45
750,000
723,016
 
M-S-R Energy Authority, CA, Natural Gas Revenue:
Series B
6.500%
11/1/39
1,000,000
1,180,557
 
Series C
7.000%
11/1/34
2,000,000
2,339,443
 
Series C
6.500%
11/1/39
2,000,000
2,361,114
 
River Islands, CA, Public Financing Authority, Special Tax Revenue:
Community Facilities District No 2003-1, Series A-1, Refunding, AG
5.250%
9/1/52
300,000
313,023
 
Community Facilities District No 2023-1
5.625%
9/1/53
525,000
531,588
 
San Francisco, CA, City & County Airport Commission, International Airport
Revenue, Second Series A, Unrefunded
5.000%
5/1/47
1,000,000
1,002,318
 (c)
Tobacco Securitization Authority of Southern California Revenue, Asset Backed
Refunding, San Diego County Tobacco Asset Securitization Corp., Class 1,
Series A
5.000%
6/1/48
200,000
200,914
 
Total California
17,618,627
Colorado — 1.4%
Colorado State Health Facilities Authority Revenue:
Commonspirit Health Initiatives, Series B-2
5.000%
8/23/26
250,000
250,000
 (a)(b)
Improvement Second Tier Bonds, Bethesda Project
5.500%
9/15/54
400,000
400,783
 
Colorado State High Performance Transportation Enterprise Revenue, C-470
Express Lanes
5.000%
12/31/51
150,000
145,284
 
North Range, CO, Metropolitan District No 2, GO, Series A, Refunding
5.625%
12/1/37
500,000
500,290
 
Southern Ute Indian Tribe Reservation, CO, GO, Series A
5.000%
4/1/35
300,000
318,056
 (d)
Village Metropolitan District, CO, Limited & Special Revenue, Series 2020,
Refunding and Improvements
5.000%
12/1/40
500,000
497,379
 
Total Colorado
2,111,792
Connecticut — 1.1%
Aquarion, CT, Water System Authority Revenue:
CAB, Series C
0.000%
8/1/50
250,000
73,190
 
See Notes to Schedule of Investments.
2
Western Asset Municipal High Income Fund Inc. 2026 Quarterly Report
 Western Asset Municipal High Income Fund Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount
Value
Connecticut — continued
CAB, Series E, BAM
0.000%
8/1/45
 $250,000
 $100,302
 
Series A
5.250%
8/1/43
300,000
327,168
 
Connecticut State Special Tax Revenue, Transportation Infrastructure, Series A
5.000%
1/1/37
500,000
510,355
 
Connecticut State, GO, Series A
4.000%
4/15/37
600,000
601,726
 
Total Connecticut
1,612,741
District of Columbia — 0.4%
 
Metropolitan Washington, DC, Airports Authority Aviation Revenue, Series A,
Refunding
5.000%
10/1/30
600,000
639,392
 (c)
Florida — 5.3%
Broward County, FL, Port Facilities Revenue:
Senior Bonds, Series B
4.000%
9/1/49
2,500,000
2,140,992
 (c)
Series 2022
5.500%
9/1/52
1,000,000
1,027,107
 (c)
Florida State Development Finance Corp., Educational Facilities Revenue,
Mater Academy Projects, Series A
5.000%
6/15/40
650,000
651,354
 
Fort Pierce, FL, Utilities Authority Revenue, Series A, Refunding, AG
4.000%
10/1/52
150,000
130,731
 
Miami-Dade County, FL, EFA Revenue:
University of Miami, Series 2026
5.000%
4/1/37
100,000
110,248
 
University of Miami, Series 2026
5.000%
4/1/47
100,000
103,617
 
Miami-Dade County, FL, Seaport Revenue, Senior Bonds, Series A, Refunding
5.250%
10/1/52
750,000
756,703
 (c)
Okaloosa County, FL, IDR, Air Force Enlisted Village Inc. Project
5.500%
5/15/45
100,000
102,761
 (d)
Orange County, FL, Health Facilities Authority Revenue:
Orlando Health Inc., Series A
5.000%
10/1/53
250,000
252,233
 
Orlando Health Inc., Series A, Refunding
4.500%
10/1/56
200,000
188,826
 
Palm Beach County, FL, Health Facilities Authority Hospital Revenue:
Jupiter Medical Center Project, Series A
5.000%
11/1/39
350,000
357,936
 
Jupiter Medical Center Project, Series A
5.000%
11/1/47
1,515,000
1,491,577
 
Palm Beach County, FL, Health Facilities Authority Revenue:
Toby & Leon Cooperman Sinai Residences of Boca Raton Expansion,
Refunding
4.000%
6/1/41
100,000
88,641
 
Toby & Leon Cooperman Sinai Residences of Boca Raton Expansion, Series
A
5.000%
6/1/55
350,000
323,879
 
Reunion, FL, East Community Development District, Special Assessment Bond,
Series A-2
7.375%
5/1/33
285,000
3
 *(e)(f)(g)
Wildwood, FL, Village Community Development District No 15, Special
Assessment Revenue
5.000%
5/1/43
350,000
354,090
 (d)
Total Florida
8,080,698
Georgia — 1.0%
Georgia State Municipal Electric Authority, Power Revenue:
Plant Vogtle Units 3&4, Project M, Series A
5.250%
7/1/64
350,000
355,225
 
Plant Vogtle Units 3&4, Project P, Series A
5.500%
7/1/64
250,000
254,245
 
Plant Vogtle Units 3&4, Project P, Series A, Refunding
5.000%
1/1/56
250,000
240,520
 
Project One, Subordinated, Series A, Refunding
5.000%
1/1/45
250,000
255,361
 
Main Street Natural Gas Inc., GA, Gas Project Revenue:
Series A
5.000%
5/15/43
150,000
150,667
 
Series C
5.000%
9/1/30
250,000
262,658
 (a)(b)
Total Georgia
1,518,676
See Notes to Schedule of Investments.
3
Western Asset Municipal High Income Fund Inc. 2026 Quarterly Report
Schedule of Investments (unaudited) (cont’d)
July 31, 2026
 Western Asset Municipal High Income Fund Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount
Value
 
Hawaii — 0.2%
 
Honolulu, HI, City & County Wastewater System Revenue, First Senior Bond
Resolution, Series A
3.000%
7/1/41
 $350,000
 $297,303
 
Illinois — 12.7%
Chicago, IL, Board of Education, Dedicated Capital Improvement, Special Tax
Revenue, Series 2018
5.000%
4/1/42
1,000,000
994,911
 
Chicago, IL, Board of Education, GO:
Dedicated, Series H
5.000%
12/1/46
900,000
814,726
 
Series A
5.000%
12/1/39
1,250,000
1,199,877
 
Series C, Refunding, AG
5.000%
12/1/32
1,750,000
1,804,036
 
Chicago, IL, GO:
Chicago Works, Series A
5.500%
1/1/39
550,000
563,676
 
Series A
5.500%
1/1/49
150,000
150,158
 
Chicago, IL, O’Hare International Airport Revenue:
General Senior Lien, Series C, Refunding
5.000%
1/1/44
500,000
508,652
 (c)
Senior Lien, Series G
5.000%
1/1/42
500,000
501,338
 (c)
Chicago, IL, Transit Authority, Sales Tax Receipts Revenue:
Second Lien
5.000%
12/1/51
1,000,000
1,000,582
 
Second Lien, Series A, Refunding
5.000%
12/1/45
500,000
509,135
 
Chicago, IL, Wastewater Transmission Revenue:
Second Lien, Series A
5.000%
1/1/47
300,000
300,286
 
Second Lien, Series B, Refunding
5.000%
1/1/38
500,000
502,413
 
Illinois State Finance Authority Revenue:
Navy Pier Inc., Series B, Refunding
5.000%
10/1/34
250,000
257,733
 (d)
Navy Pier Inc., Series B, Refunding
5.000%
10/1/49
250,000
231,878
 (d)
Surface Freight Transfer Facilities, Centerpoint Joliet Terminal Railroad
Project
4.800%
7/2/35
350,000
355,568
 (a)(b)(c)(d)
Illinois State Sports Facilities Authority Revenue, Sport Facilities Project,
Series 2019, Refunding, BAM
5.000%
6/15/29
250,000
260,873
 
Illinois State, GO:
Series 2016, Refunding
5.000%
2/1/29
300,000
302,927
 
Series A
5.000%
3/1/37
1,250,000
1,307,107
 
Series A
5.000%
3/1/46
500,000
506,483
 
Series A, Refunding
5.000%
10/1/29
1,100,000
1,142,134
 
Series A, Refunding
5.000%
10/1/30
550,000
570,860
 
Series B, Refunding
5.000%
9/1/27
400,000
408,777
 
Series D
5.000%
11/1/27
1,150,000
1,179,347
 
Metropolitan Pier & Exposition Authority, IL, Revenue:
McCormick Place Expansion Project, Series A
5.000%
6/15/57
350,000
344,870
 
McCormick Place Expansion Project, Series A, Refunding
4.000%
12/15/42
500,000
464,691
 
McCormick Place Expansion Project, Series A, Refunding
4.000%
12/15/47
1,000,000
871,260
 
McCormick Place Expansion Project, Series A, Refunding
5.000%
6/15/50
250,000
248,169
 
McCormick Place Expansion Project, Series B, Refunding
5.000%
6/15/42
1,250,000
1,273,955
 
Regional Transportation Authority, IL, GO, Series A, Refunding, NATL
6.000%
7/1/29
715,000
753,891
 
Total Illinois
19,330,313
See Notes to Schedule of Investments.
4
Western Asset Municipal High Income Fund Inc. 2026 Quarterly Report
 Western Asset Municipal High Income Fund Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount
Value
 
Indiana — 2.0%
Indiana State Finance Authority Revenue:
BHI Senior Living Inc., Series A, Refunding
4.000%
11/15/41
 $500,000
 $466,645
 
Marion General Hospital, Series A
4.000%
7/1/45
200,000
174,500
 
Midwestern Disaster Relief, Ohio Valley Electric Corp. Project, Series A
4.250%
11/1/30
200,000
204,100
 
Wastewater Utility, First Lien, CWA Authority Project, Series A, Refunding
5.000%
10/1/45
1,000,000
1,056,995
 
Valparaiso, IN, Exempt Facilities Revenue, Pratt Paper LLC Project, Refunding
5.000%
1/1/54
1,100,000
1,075,340
 (c)(d)
Total Indiana
2,977,580
Iowa — 0.1%
 
Iowa State Tobacco Settlement Authority Revenue, Asset Backed Senior
Bonds, Class 1, Series A-2, Refunding
4.000%
6/1/49
150,000
127,596
 
Kentucky — 0.9%
Kentucky State Bond Development Corp., Student Housing Revenue, Collegiate
Housing Foundation-Bowling Green LLC, Series A, AG
5.000%
7/1/46
185,000
189,376
 
Kentucky State PEA, Gas Supply Revenue:
Series A, Refunding
5.250%
12/1/29
200,000
210,365
 (a)(b)
Series C, Refunding
5.000%
5/1/36
900,000
932,743
 
Total Kentucky
1,332,484
Louisiana — 1.1%
Louisiana State PFA, Lease Revenue:
Provident Group, Flagship Properties
5.000%
7/1/42
700,000
702,950
 
Provident Group, Flagship Properties, Series A
4.000%
7/1/49
500,000
434,751
 
St. John the Baptist Parish, LA, State Revenue, Marathon Oil Corp. Project,
Series C, Refunding
3.300%
7/3/28
500,000
509,582
 (a)(b)
Total Louisiana
1,647,283
Maryland — 0.7%
Maryland State EDC Revenue:
Morgan State University Project
4.250%
7/1/50
350,000
305,327
 
Seagirt Marine Terminal Project, Series A
5.000%
6/1/44
400,000
404,765
 (c)
Maryland State Health & Higher EFA Revenue, Frederick Health System,
Refunding
4.000%
7/1/40
300,000
277,578
 
Total Maryland
987,670
Massachusetts — 0.3%
 
Massachusetts State DFA Revenue, Northeastern University, Refunding
5.000%
10/1/44
500,000
520,806
 
Michigan — 1.0%
Detroit, MI, GO, Unlimited Tax, Series C
6.000%
5/1/43
700,000
764,673
 
Michigan State Finance Authority Revenue:
Henry Ford Health System, Series A
4.000%
11/15/50
400,000
336,519
 
The Henry Ford Health Detroit South Campus Central Utility Plant Project,
Green Bonds, Series 2024
4.375%
2/28/54
250,000
226,772
 
Michigan State Strategic Fund Ltd. Obligation Revenue, I-75 Improvement
Project
5.000%
12/31/43
250,000
251,427
 (c)
Total Michigan
1,579,391
Missouri — 1.8%
Missouri State HEFA Revenue, Series A, Refunding
5.250%
2/1/44
700,000
721,882
 
St. Louis County, MO, IDA, Senior Living Facilities Revenue, Friendship Village
of Sunset Hills, Series A
5.875%
9/1/43
2,000,000
2,001,657
 
Total Missouri
2,723,539
See Notes to Schedule of Investments.
5
Western Asset Municipal High Income Fund Inc. 2026 Quarterly Report
Schedule of Investments (unaudited) (cont’d)
July 31, 2026
 Western Asset Municipal High Income Fund Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount
Value
 
Nebraska — 0.3%
 
Omaha, NE, Public Power District, Electric System Revenue, Series B,
Refunding
4.000%
2/1/46
 $500,000
 $467,361
 
Nevada — 0.5%
State of Nevada Department of Business & Industry Revenue:
Charter School Lease Revenue, Somerset Academy, Series A
5.000%
12/15/35
300,000
300,006
 (d)
Charter School Lease Revenue, Somerset Academy, Series A
5.125%
12/15/45
500,000
477,679
 (d)
Total Nevada
777,685
New Hampshire — 2.0%
National Finance Authority, NH, Revenue:
PPDC Lockhart Housing Project, Series A-1
5.000%
12/1/46
825,000
815,034
 
Presbyterian Senior Living Project, Series A
5.250%
7/1/48
350,000
353,813
 
Series A
5.000%
8/1/56
250,000
248,294
 (h)
Winston-Salem Sustainable Energy Partners LLC, Series A
5.000%
12/1/35
850,000
911,927
 
Winston-Salem Sustainable Energy Partners LLC, Series A
5.000%
6/1/55
800,000
781,867
 
Total New Hampshire
3,110,935
New Jersey — 5.4%
New Jersey State EDA Revenue:
Private Activity-The Goethals Bridge Replacement Project
5.375%
1/1/43
1,500,000
1,501,239
 (c)
Special Facility, Port Newark Container Terminal LLC Project, Refunding
5.000%
10/1/37
650,000
655,735
 (c)
New Jersey State Transportation Trust Fund Authority Revenue:
Transportation Program, Series AA, Refunding
5.000%
6/15/42
4,000,000
4,233,007
 
Transportation Program, Series BB
5.000%
6/15/44
1,000,000
1,016,562
 
New Jersey State Turnpike Authority Revenue, Series C, Refunding
5.000%
1/1/44
700,000
740,643
 
Tobacco Settlement Financing Corp., NJ, Revenue, Series A, Refunding
5.250%
6/1/46
150,000
150,345
 
Total New Jersey
8,297,531
New Mexico — 0.4%
New Mexico State Municipal Energy Acquisition Authority, Gas Supply
Revenue, Refunding
5.000%
11/1/30
400,000
421,397
 (a)(b)
Santa Fe, NM, Retirement Facilities Revenue, EL Castillo Retirement
Residences Project, Series A
5.000%
5/15/49
250,000
232,050
 
Total New Mexico
653,447
New York — 10.9%
Brookhaven, NY, Local Development Corp., Long Island Community Hospital
Project, Series A, Refunding
5.000%
10/1/34
735,000
781,219
 
Build NYC Resource Corp., NY, Revenue, East Harlem Scholars Academy
Charter School Project
5.750%
6/1/62
300,000
283,332
 (d)
Long Island, NY, Power Authority Electric System Revenue, Series B, Refunding
5.250%
9/1/56
350,000
364,582
 (h)
MTA, NY, Transportation Revenue:
Green Bonds, Series E, Refunding
5.000%
11/15/30
250,000
269,967
 
Green Bonds, Series E, Refunding
4.000%
11/15/45
250,000
223,777
 
Series A-2
5.000%
5/15/30
400,000
423,491
 (a)(b)
New York City, NY, GO, Subseries A-1
4.000%
8/1/40
750,000
698,392
 
New York City, NY, Industrial Development Agency Revenue, Yankee Stadium
Project, Refunding
4.000%
3/1/45
300,000
270,422
 
New York City, NY, TFA, Future Tax Secured Revenue, Subordinated, Series F,
Subseries F-1
5.000%
2/1/47
2,250,000
2,307,066
 
See Notes to Schedule of Investments.
6
Western Asset Municipal High Income Fund Inc. 2026 Quarterly Report
 Western Asset Municipal High Income Fund Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount
Value
 
New York — continued
New York State Dormitory Authority Revenue, Non-State Supported Debt,
Memorial Sloan-Kettering Cancer Center, Series B-1
4.000%
7/1/51
 $500,000
 $443,388
 
New York State Liberty Development Corp. Revenue:
3 World Trade Center Project, Class 1, Refunding
5.000%
11/15/44
1,205,000
1,206,660
 (d)
7 World Trade Center Project, Class 3, Refunding
3.500%
9/15/52
700,000
528,320
 
New York State Thruway Authority General Revenue, Junior Indebtedness
Obligations, Junior Lien, Series B, Refunding
4.000%
1/1/45
750,000
695,161
 
New York State Transportation Development Corp., Special Facilities Revenue:
Delta Air Lines Inc., LaGuardia Airport Terminals C and D Redevelopment
Project
5.000%
1/1/33
750,000
763,786
 (c)
Delta Air Lines Inc., LaGuardia Airport Terminals C and D Redevelopment
Project
6.000%
4/1/35
400,000
441,054
 (c)
Delta Air Lines Inc., LaGuardia Airport Terminals C and D Redevelopment
Project
5.625%
4/1/40
300,000
318,106
 (c)
Delta Air Lines Inc., LaGuardia Airport Terminals C and D Redevelopment
Project
4.375%
10/1/45
250,000
236,141
 (c)
John F. Kennedy International Airport New Terminal One Project, Green
Bonds
5.375%
6/30/60
3,250,000
3,230,077
 (c)
John F. Kennedy International Airport Terminal Four Project, Series C,
Refunding
4.000%
12/1/42
500,000
469,733
 
John F. Kennedy International Airport Terminal Six Redevelopment Project,
Green Bonds, Series A, Refunding
5.500%
12/31/54
150,000
152,107
 (c)
John F. Kennedy International Airport Terminal Six Redevelopment Project,
Green Bonds, Series A, Refunding, AG
4.500%
12/31/54
350,000
330,170
 (c)
John F. Kennedy International Airport Terminal Six Redevelopment Project,
Green Bonds, Series B, Refunding, AG, Step bond (0.000% to 12/31/34 then
5.000%)
0.000%
12/31/54
150,000
98,207
 (c)
LaGuardia Airport Terminal B Redevelopment Project, Series A
5.000%
7/1/41
300,000
300,042
 (c)
LaGuardia Airport Terminal B Redevelopment Project, Series A
5.000%
7/1/46
500,000
492,039
 (c)
Port Authority of New York & New Jersey Revenue, Consolidated Series 221
4.000%
7/15/45
1,000,000
906,591
 (c)
Troy, NY, Capital Resource Corp., Revenue, Rensselaer Polytechnic Institute
Project, Series A, Refunding
4.000%
9/1/40
500,000
465,219
 
Total New York
16,699,049
North Carolina — 0.3%
 
North Carolina State Turnpike Authority, Monroe Expressway Toll Revenue,
Series A, Refunding
5.000%
7/1/47
500,000
500,442
 
North Dakota — 0.3%
 
Grand Forks, ND, Health Care System Revenue, Altru Health System,
Refunding, AG
3.000%
12/1/46
600,000
436,254
 
Ohio — 0.9%
Ohio State Air Quality Development Authority Revenue:
American Electric Co. Project, Series B
2.500%
10/1/29
350,000
336,710
 (a)(b)(c)
American Electric Co. Project, Series D, Refunding
3.700%
10/1/28
140,000
140,597
 (c)
Ohio State Private Activity Revenue, Portsmouth Bypass Project
5.000%
6/30/53
700,000
691,985
 (c)
Port of Greater Cincinnati Development Authority Revenue, OH, Tax-Exempt
Parking Revenue, 3CDC Obligated Group Parking Facilities, Series A,
Refunding, AG
5.000%
12/1/60
250,000
250,272
 
Total Ohio
1,419,564
See Notes to Schedule of Investments.
7
Western Asset Municipal High Income Fund Inc. 2026 Quarterly Report
Schedule of Investments (unaudited) (cont’d)
July 31, 2026
 Western Asset Municipal High Income Fund Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount
Value
 
Oklahoma — 0.3%
 
Tulsa County, OK, Industrial Authority, Senior Living Community Revenue,
Montereau Inc. Project, Refunding
5.250%
11/15/37
 $500,000
 $503,152
 
Oregon — 0.3%
 
Clackamas County, OR, Hospital Facility Authority Revenue, Senior Living,
Willamette View Project, Refunding
5.000%
11/15/37
500,000
502,977
 
Pennsylvania — 3.6%
Allegheny County, PA, HDA Revenue, University of Pittsburgh Medical Center,
Series A, Refunding
4.000%
7/15/39
350,000
330,120
 
Cumberland County, PA, Municipal Authority Revenue, Diakon Lutheran Social
Ministries Project, Unrefunded
5.000%
1/1/28
135,000
135,112
 
Lancaster County, PA, IDA Revenue, Willow Valley Communities Project
5.000%
12/1/49
500,000
477,488
 
Lancaster County, PA, Convention Center Authority Revenue, Hotel Room
Rental Tax, Series B, Refunding, County GTD
4.750%
5/1/57
500,000
484,690
 
Pennsylvania State Economic Development Financing Authority Revenue:
Tax-Exempt Private Activity, The Penndot Major Bridges Package One
Project
5.000%
12/31/32
565,000
603,714
 (c)
Tax-Exempt Private Activity, The Penndot Major Bridges Package One
Project
5.250%
6/30/53
2,600,000
2,622,602
 (c)
Philadelphia, PA, Authority for IDR:
Charter School Revenue, A String Theory Charter School Project, Refunding
5.000%
6/15/40
400,000
391,923
 (d)
City Service Agreement Revenue, Rebuild Project
5.000%
5/1/38
500,000
512,103
 
Total Pennsylvania
5,557,752
Puerto Rico — 4.1%
Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue:
CAB, Restructured, Series A-1
0.000%
7/1/27
92,000
89,428
 
CAB, Restructured, Series A-1
0.000%
7/1/46
1,220,000
446,137
 
Restructured, Series A-1
4.550%
7/1/40
50,000
49,547
 
Restructured, Series A-1
4.750%
7/1/53
3,020,000
2,871,406
 
Restructured, Series A-1
5.000%
7/1/58
880,000
846,818
 
Restructured, Series A-2
4.329%
7/1/40
530,000
518,077
 
Restructured, Series A-2A
4.550%
7/1/40
1,380,000
1,367,507
 
Total Puerto Rico
6,188,920
Rhode Island — 0.1%
 
Rhode Island State Health & Educational Building Corp., Student Housing
Revenue, Rhode Island Properties LLC, Subordinated Series B, AG
5.625%
7/1/65
200,000
200,276
 
South Carolina — 0.6%
South Carolina State Jobs EDA Revenue, International Paper Company Project,
Series A, Refunding
3.950%
4/1/33
600,000
604,222
 (c)
South Carolina State Jobs, EDA Hospital Facilities Revenue, Bon Secours
Mercy Health Inc., Series A, Refunding
4.000%
12/1/44
400,000
364,051
 
Total South Carolina
968,273
Tennessee — 0.5%
Clarksville, TN, Water, Sewer & Gas Revenue, Series A
4.000%
2/1/51
500,000
449,764
 
Metropolitan Government of Nashville & Davidson County, TN, Sports
Authority Revenue, Series A, AG
5.250%
7/1/53
350,000
361,286
 
Total Tennessee
811,050
See Notes to Schedule of Investments.
8
Western Asset Municipal High Income Fund Inc. 2026 Quarterly Report
 Western Asset Municipal High Income Fund Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount
Value
 
Texas — 5.3%
Arlington, TX, Higher Education Finance Corp., Education Revenue:
Basis Texas Charter Schools Inc., Refunding
5.875%
6/15/65
 $450,000
 $451,743
 (d)
Uplift Education, Series A, Refunding
5.000%
12/1/46
200,000
196,772
 
Arlington, TX, Special Tax Revenue, Subordinated Lien, Series C, BAM
5.000%
2/15/41
500,000
500,059
 
Austin, TX, Airport System Revenue:
Series B
5.000%
11/15/39
600,000
613,622
 (c)
Series B, Refunding
5.000%
11/15/42
600,000
626,314
 (c)
Central Texas Regional Mobility Authority Revenue, Senior Lien, Series B
4.000%
1/1/51
500,000
439,911
 
Galveston, TX, Wharves & Terminal Revenue, Series A
5.250%
8/1/38
750,000
795,541
 (c)
Harris County, TX, GO, Series A, Refunding
5.250%
9/15/56
250,000
260,818
 (h)
Love Field, TX, Airport Modernization Corp., General Airport Revenue:
Series 2017
5.000%
11/1/33
20,000
20,061
 (c)
Series 2017
5.000%
11/1/36
20,000
20,048
 (c)
Mission, TX, EDC, Solid Waste Disposal Revenue, Graphic Packaging
International, LLC Project, Green Bonds
5.000%
6/1/30
150,000
154,867
 (a)(b)(c)
New Hope Cultural Education Facilities Finance Corp., TX, Retirement Facility
Revenue, Westminster Manor Project, Refunding
4.000%
11/1/49
400,000
341,487
 
Newark, TX, Higher Education Finance Corp., Education Revenue, TLC
Academy, Series A
4.000%
8/15/56
350,000
249,911
 
Tarrant County, TX, Cultural Education Facilities Finance Corp., Retirement
Facility Revenue, Buckner Retirement Services Inc. Project, Refunding
5.000%
11/15/37
700,000
703,326
 
Texas State Private Activity Bond Surface Transportation Corp. Revenue, Senior
Lien, NTE Mobility Partners Segments 3 LLC, Refunding
5.500%
6/30/41
300,000
310,882
 (c)
Texas State Transportation Commission, GO, Highway Improvement,
Series 2026, Refunding
5.000%
4/1/42
2,250,000
2,427,657
 
Total Texas
8,113,019
Utah — 0.6%
Utah State Charter School Finance Authority, Charter School Revenue, Summit
Academy Inc., Series A, Refunding, UT CSCE
5.000%
4/15/39
350,000
355,463
 
Utah State Infrastructure Agency, Telecommunications Revenue, Series A
5.250%
10/15/33
550,000
552,151
 
Total Utah
907,614
Virginia — 1.2%
Virginia State Small Business Financing Authority Revenue:
National Senior Campuses Inc., Series A, Refunding
5.000%
1/1/34
200,000
208,346
 
Senior Lien, 95 Express Lanes LLC Project, Refunding
5.000%
1/1/37
1,000,000
1,033,392
 (c)
Senior Lien, I-495 High Occupancy Toll Lanes Project, Refunding
5.000%
12/31/47
500,000
502,437
 (c)
Total Virginia
1,744,175
Washington — 0.9%
Port of Seattle, WA, Intermediate Lien Revenue, Series 2022, Refunding
5.000%
8/1/41
500,000
516,887
 (c)
Washington State Health Care Facilities Authority Revenue:
Commonspirit Health, Series A-1, Refunding
4.000%
8/1/44
535,000
488,396
 
Seattle Cancer Care Alliance, Refunding
4.000%
12/1/40
370,000
351,687
 (d)
Total Washington
1,356,970
West Virginia — 0.1%
 
West Virginia State EDA Revenue, Solid Waste Disposal Facility, Commercial
Metals Co. Project
4.625%
5/15/32
150,000
153,068
 (a)(b)(c)
See Notes to Schedule of Investments.
9
Western Asset Municipal High Income Fund Inc. 2026 Quarterly Report
Schedule of Investments (unaudited) (cont’d)
July 31, 2026
 Western Asset Municipal High Income Fund Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount
Value
 
Wisconsin — 1.4%
Public Finance Authority, WI, Revenue:
Cone Health, Series A
5.000%
10/1/52
 $300,000
 $301,434
 
The Carmelite System Inc. Obligated Group, Refunding
5.000%
1/1/45
100,000
100,491
 
Public Finance Authority, WI, Student Housing Revenue:
Appalachian State University Project, Series A, AG
4.000%
7/1/45
600,000
541,581
 
CHF Wilmington LLC, University of North Carolina at Wilmington Project, AG
5.000%
7/1/53
1,000,000
967,189
 
University of Hawai’i Foundation Project, Green Bonds, Series A-1
4.000%
7/1/51
280,000
189,216
 (d)
Total Wisconsin
2,099,911
 
Total Municipal Bonds (Cost — $142,822,746)
140,931,886
Municipal Bonds Deposited in Tender Option Bond Trusts(i) — 3.3%
New York — 3.3%
New York City, NY, Municipal Water Finance Authority, Water & Sewer System
Revenue, Second General Resolution Fiscal 2023, Subseries AA-1
5.250%
6/15/52
1,440,000
1,498,149
 
New York State Dormitory Authority, State Personal Income Tax Revenue,
General Purpose Bonds, Series A
4.000%
3/15/45
1,740,000
1,608,382
 
New York State Urban Development State Sales Revenue, Series A
5.000%
3/15/47
1,800,000
1,867,923
 
 
Total Municipal Bonds Deposited in Tender Option Bond Trusts (Cost — $5,059,875)
4,974,454
Total Investments before Short-Term Investments (Cost — $147,882,621)
145,906,340
 
Short-Term Investments — 5.5%
Municipal Bonds — 5.5%
Arizona — 0.2%
 
Arizona State, IDA Hospital Revenue, Phoenix Children’s Hospital, Series A,
Refunding, LOC - TD Bank N.A.
2.950%
2/1/48
300,000
300,000
 (j)(k)
Colorado — 0.1%
 
Colorado State Health Facilities Authority Revenue, Children’s Hospital,
Refunding, LOC - TD Bank N.A.
3.050%
12/1/52
200,000
200,000
 (j)(k)
Florida — 1.5%
 
Hillsborough County, FL, IDA Revenue, Baycare Health System, Series B,
Refunding, LOC - TD Bank N.A.
2.950%
11/1/38
2,300,000
2,300,000
 (j)(k)
Georgia — 0.1%
 
Bartow County, GA, Development Authority Revenue, Solid Waste Disposal
Facility, Georgia Power Company Plant Bowen Project
3.230%
11/1/62
100,000
100,000
 (c)(j)(k)
Illinois — 0.1%
 
Illinois State Finance Authority Revenue, University of Chicago Medical Center,
Series A, LOC - TD Bank N.A.
2.950%
8/1/44
100,000
100,000
 (j)(k)
Iowa — 0.1%
 
Iowa Finance Authority, Series E, SPA - TD Bank N.A., GNMA / FNMA / FHLMC
2.160%
1/1/49
100,000
100,000
 (j)(k)
Massachusetts — 0.0%††
 
Massachusetts State HEFA Revenue, Partners Healthcare System Inc., Series
P-2, SPA - JPMorgan Chase & Co.
2.000%
7/1/27
100,000
100,000
 (j)(k)
Michigan — 0.1%
 
Grand Valley State University, MI, General Revenue, Series B, Refunding, LOC -
TD Bank N.A.
2.160%
12/1/31
100,000
100,000
 (j)(k)
Mississippi — 0.4%
Mississippi State Business Finance Corp., Gulf Opportunity Zone, IDR:
Chevron USA Inc. Project, Series A
3.050%
11/1/35
250,000
250,000
 (j)(k)
See Notes to Schedule of Investments.
10
Western Asset Municipal High Income Fund Inc. 2026 Quarterly Report
 Western Asset Municipal High Income Fund Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount
Value
 
Mississippi — continued
Chevron USA Inc. Project, Series G
3.150%
11/1/35
 $315,000
 $315,000
 (j)(k)
Total Mississippi
565,000
Missouri — 0.5%
 
Missouri State HEFA Revenue, BJC Health System, Series C, Refunding, LIQ -
BJC Health System
2.150%
5/15/38
800,000
800,000
 (j)(k)
Nevada — 0.1%
 
Nevada State Housing Division, Multi-Unit Housing Revenue, Series A, LIQ -
FNMA, LOC - FNMA
2.250%
4/15/33
100,000
100,000
 (c)(j)(k)
New Mexico — 0.3%
 
New Mexico State Hospital Equipment Loan Council, Hospital System
Revenue, Presbyterian Health Care Services, Series B, Refunding, SPA -
JPMorgan Chase & Co.
3.050%
8/1/34
500,000
500,000
 (j)(k)
New York — 1.1%
MTA, NY, Transportation Revenue, Series E-1, LOC - Barclays Bank PLC
3.050%
11/15/50
300,000
300,000
 (j)(k)
New York City, NY, Municipal Water Finance Authority, Water & Sewer System
Revenue, Second General Resolution Fiscal 2014, Series AA, Refunding, SPA -
Mizuho Bank Ltd.
2.950%
6/15/48
100,000
100,000
 (j)(k)
New York City, NY, TFA, Future Tax Secured Revenue, Subordinated, Subseries
A-4, SPA - Mizuho Bank Ltd.
3.100%
8/1/43
100,000
100,000
 (j)(k)
New York State HFA Revenue, Weyant Green Apartments, Series A, LIQ -
FNMA, LOC - FNMA
2.400%
5/15/37
1,200,000
1,200,000
 (c)(j)(k)
Total New York
1,700,000
Pennsylvania — 0.6%
Northampton County, PA, General Purpose Authority, Hospital Revenue, St.
Luke’s University Health Network Project, Series B, LOC - TD Bank N.A.
2.950%
8/15/54
100,000
100,000
 (j)(k)
Pennsylvania State HFA, Single Family Mortgage Revenue, Series B, SPA - TD
Bank N.A.
2.150%
10/1/50
200,000
200,000
 (j)(k)
Pennsylvania State Turnpike Commission Revenue, Series B, Refunding, LOC -
TD Bank N.A.
2.160%
12/1/43
300,000
300,000
 (j)(k)
Philadelphia, PA, IDA, Gift of Life Donor Program Project, LOC - TD Bank N.A.
2.170%
12/1/34
400,000
400,000
 (j)(k)
Total Pennsylvania
1,000,000
Texas — 0.2%
Harris County, TX, Cultural Education Facilities Finance Corp. Revenue, Texas
Children’s Hospital, Series 2, LOC - TD Bank N.A.
2.150%
10/1/45
155,000
155,000
 (j)(k)
Houston, TX, Combined Utility System Revenue, Series B-4, Refunding, SPA -
JPMorgan Chase & Co.
2.190%
5/15/34
100,000
100,000
 (j)(k)
Tarrant County, TX, Cultural Education Facilities Finance Corp., Hospital
Revenue, Baylor Health Care System Project, Series C, Refunding, LOC - TD
Bank N.A.
2.750%
11/15/50
100,000
100,000
 (j)(k)
Total Texas
355,000
Wisconsin — 0.1%
Wisconsin State Housing and EDA Revenue, Series E, Refunding, SPA - FHLB
2.400%
9/1/35
100,000
100,000
 (c)(j)(k)
 
Total Municipal Bonds (Cost — $8,420,000)
8,420,000
See Notes to Schedule of Investments.
11
Western Asset Municipal High Income Fund Inc. 2026 Quarterly Report
Schedule of Investments (unaudited) (cont’d)
July 31, 2026
 Western Asset Municipal High Income Fund Inc.
(Percentages shown based on Fund net assets)
Security
 
Rate
 
Shares
Value
Money Market Funds — 0.0%††
Western Asset Premier Institutional Government Reserves, Premium Shares
(Cost — $19,122)  
3.606%
19,122
 
 $19,122
 (l)(m)
 
Total Short-Term Investments (Cost — $8,439,122)
8,439,122
Total Investments — 101.1% (Cost — $156,321,743)
154,345,462
TOB Floating Rate Notes — (1.8)%
(2,730,000
)
Other Assets in Excess of Other Liabilities — 0.7%
1,024,748
Total Net Assets — 100.0%
$152,640,210
 
††
Represents less than 0.1%.
*
Non-income producing security.
(a)
Maturity date shown represents the mandatory tender date.
(b)
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.
(c)
Income from this issue is considered a preference item for purposes of calculating the alternative minimum tax (“AMT”).
(d)
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.
(e)
The coupon payment on this security is currently in default as of July 31, 2026.
(f)
Security is fair valued in accordance with procedures approved by the Board of Directors (Note 1).
(g)
Security is valued using significant unobservable inputs (Note 1).
(h)
Securities traded on a when-issued or delayed delivery basis.
(i)
Represents securities deposited into a special purpose entity, referred to as a Tender Option Bond (“TOB”) trust..
(j)
Variable rate demand obligations (“VRDOs”) have a demand feature under which the Fund can tender them back to the issuer or liquidity provider on no
more than 7 days notice. The interest rate generally resets on a daily or weekly basis and is determined on the specific interest rate reset date by the
remarketing agent, pursuant to a formula specified in official documents for the VRDO, or set at the highest rate allowable as specified in official
documents for the VRDO. VRDOs are benchmarked to the Securities Industry and Financial Markets Association (“SIFMA”) Municipal Swap Index. The
SIFMA Municipal Swap Index is compiled from weekly interest rate resets of tax-exempt VRDOs reported to the Municipal Securities Rulemaking Board’s
Short-term Obligation Rate Transparency System.
(k)
Maturity date shown is the final maturity date. The security may be sold back to the issuer before final maturity.
(l)
Rate shown is one-day yield as of the end of the reporting period.
(m)
In this instance, as defined in the Investment Company Act of 1940, as amended (the “1940 Act”), an “Affiliated Company” represents Fund ownership of at
least 5% of the outstanding voting securities of an issuer, or a company which is under common ownership or control with the Fund. At July 31, 2026, the
total market value of investments in Affiliated Companies was $19,122 and the cost was $19,122 (Note 2).
 
See Notes to Schedule of Investments.
12
Western Asset Municipal High Income Fund Inc. 2026 Quarterly Report
 Western Asset Municipal High Income Fund Inc.
Abbreviation(s) used in this schedule:
AG
—
Assured Guaranty — Insured Bonds
BAM
—
Build America Mutual — Insured Bonds
CAB
—
Capital Appreciation Bonds
CSCE
—
Charter School Credit Enhancement
CWA
—
Clean Water Act
DFA
—
Development Finance Agency
EDA
—
Economic Development Authority
EDC
—
Economic Development Corporation
EFA
—
Educational Facilities Authority
FHLB
—
Federal Home Loan Bank
FHLMC
—
Federal Home Loan Mortgage Corporation
FNMA
—
Federal National Mortgage Association
GNMA
—
Government National Mortgage Association
GO
—
General Obligation
GTD
—
Guaranteed
HDA
—
Housing Development Authority
HEFA
—
Health & Educational Facilities Authority
HFA
—
Housing Finance Agency
IDA
—
Industrial Development Authority
IDR
—
Industrial Development Revenue
LIQ
—
Liquidity Facility
LOC
—
Letter of Credit
MFA
—
Municipal Finance Authority
MTA
—
Metropolitan Transportation Authority
NATL
—
National Public Finance Guarantee Corporation — Insured Bonds
PCFA
—
Pollution Control Financing Authority
PEA
—
Public Energy Authority
PFA
—
Public Facilities Authority
SPA
—
Standby Bond Purchase Agreement — Insured Bonds
TFA
—
Transitional Finance Authority
This Schedule of Investments is unaudited and is intended to provide information about the Fund’s investments as of the date of the schedule. Other information regarding the Fund is available in the Fund’s most recent annual or semi-annual shareholder report.
See Notes to Schedule of Investments.
13
Western Asset Municipal High Income Fund Inc. 2026 Quarterly Report
Notes to Schedule of Investments (unaudited)
1. Organization and significant accounting policies
Western Asset Municipal High Income Fund Inc. (the “Fund”) was incorporated in Maryland and is registered as a diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund seeks high current income exempt from federal income taxes. The Fund seeks to achieve its investment objective by investing primarily in intermediate and long-term municipal debt securities issued by state and local governments. However, the Fund may invest in municipal obligations of any maturity. The Fund may invest in municipal obligations rated below investment grade or unrated, if determined to be of equivalent quality, without limit. Investment grade securities are those rated in the Baa/BBB categories or above by at least one National Recognized Statistical Rating Organization that provides such a rating or unrated securities that the subadviser determined to be of comparable credit quality. For credit ratings purposes, pre-refunded bonds are deemed to be unrated. The subadviser determines the credit quality of pre-refunded bonds based on the quality of the escrowed collateral and such other factors as the subadviser deems appropriate.
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.
(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. 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”).  
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
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Western Asset Municipal High Income Fund Inc. 2026 Quarterly Report
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.
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 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†:
Municipal Bonds
—
 $140,931,883
 $3
 $140,931,886
Municipal Bonds Deposited in Tender Option Bond Trusts
—
4,974,454
—
4,974,454
Total Long-Term Investments
—
145,906,337
3
145,906,340
Short-Term Investments†:
Municipal Bonds
—
8,420,000
—
8,420,000
Money Market Funds
 $19,122
—
—
19,122
Total Short-Term Investments
19,122
8,420,000
—
8,439,122
Total Investments
$19,122
$154,326,337
$3
$154,345,462
 
†
See Schedule of Investments for additional detailed categorizations.
2. 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 all or some portion of the period ended July 31, 2026. The following transactions were effected in such company for the period ended July 31, 2026.
 
 
Affiliate
Value at

October 31,
2025
Purchased
Sold
Cost
Shares
Proceeds
Shares
Western Asset Premier
Institutional Government
Reserves, Premium
Shares
 $39,764
 $2,673,248
2,673,248
 $2,693,890
2,693,890

 
(cont’d)
Realized
Gain (Loss)
Dividend
Income
Net Increase
(Decrease) in
Unrealized
Appreciation
(Depreciation)
Affiliate
Value at
July 31,
2026
Western Asset Premier
Institutional Government
Reserves, Premium Shares
—
 $1,463
—
 $19,122
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Western Asset Municipal High Income Fund Inc. 2026 Quarterly Report