UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
|
Investment Company Act file number |
811-7362 | |||||||
|
| ||||||||
|
Western Asset Municipal Partners Fund Inc. | ||||||||
|
(Exact name of registrant as specified in charter) | ||||||||
|
| ||||||||
|
620 Eighth Avenue, 49th Floor, New York, NY |
|
10018 | ||||||
|
(Address of principal executive offices) |
|
(Zip code) | ||||||
|
| ||||||||
|
Robert I. Frenkel, Esq. Legg Mason & Co., LLC 100 First Stamford Place Stamford, CT 06902 | ||||||||
|
(Name and address of agent for service) | ||||||||
|
| ||||||||
|
Registrant’s telephone number, including area code: |
1-888-777-0102 |
| ||||||
|
| ||||||||
|
Date of fiscal year end: |
November 30 |
| ||||||
|
| ||||||||
|
Date of reporting period: |
August 31, 2012 |
| ||||||
ITEM 1. SCHEDULE OF INVESTMENTS
WESTERN ASSET MUNICIPAL PARTNERS FUND INC.
FORM N-Q
AUGUST 31, 2012
WESTERN ASSET MUNICIPAL PARTNERS FUND INC.
Schedule of investments (unaudited)
August 31, 2012
|
SECURITY |
|
RATE |
|
MATURITY |
|
FACE |
|
VALUE |
| ||
|
MUNICIPAL BONDS — 149.7% |
|
|
|
|
|
|
|
|
| ||
|
Alaska — 1.5% |
|
|
|
|
|
|
|
|
| ||
|
Valdez, AK, Marine Terminal Revenue, BP Pipelines Inc. Project |
|
5.000% |
|
1/1/21 |
|
$ |
2,000,000 |
|
$ |
2,389,980 |
|
|
Arizona — 2.0% |
|
|
|
|
|
|
|
|
| ||
|
Glendale, AZ, Transportation Excise Tax Revenue, NATL |
|
5.000% |
|
7/1/28 |
|
2,855,000 |
|
3,199,113 |
| ||
|
California — 21.3% |
|
|
|
|
|
|
|
|
| ||
|
California Health Facilities Financing Authority Revenue: |
|
|
|
|
|
|
|
|
| ||
|
Catholic Healthcare West |
|
5.250% |
|
3/1/24 |
|
2,500,000 |
|
2,739,550 |
| ||
|
Catholic Healthcare West |
|
5.625% |
|
7/1/32 |
|
5,000,000 |
|
5,455,450 |
| ||
|
California State, GO |
|
5.000% |
|
2/1/26 |
|
5,000,000 |
|
5,813,900 |
| ||
|
California State, GO, Unrefunded Balance |
|
5.125% |
|
6/1/24 |
|
35,000 |
|
35,070 |
| ||
|
California Statewide CDA Revenue, Insured Health Facility L.A., Jewish Home, CA, Mortgage Insurance |
|
5.000% |
|
11/15/28 |
|
1,500,000 |
|
1,574,040 |
| ||
|
Los Angeles, CA, Department of Water & Power Revenue, Power Systems, Subordinated, AGM |
|
5.000% |
|
7/1/35 |
|
2,500,000 |
|
2,758,150 |
| ||
|
Lower Tule River, CA, Irrigation District Revenue, COP |
|
5.000% |
|
8/1/40 |
|
1,000,000 |
|
1,045,760 |
| ||
|
M-S-R Energy Authority, CA, Gas Revenue |
|
7.000% |
|
11/1/34 |
|
2,490,000 |
|
3,314,564 |
| ||
|
M-S-R Energy Authority, CA, Gas Revenue |
|
6.500% |
|
11/1/39 |
|
3,000,000 |
|
3,806,910 |
| ||
|
Turlock, CA, Irrigation District Revenue |
|
5.000% |
|
1/1/35 |
|
2,500,000 |
|
2,723,325 |
| ||
|
Turlock, CA, Public Financing Authority, Tax Allocation Revenue, AGM |
|
5.000% |
|
9/1/30 |
|
2,500,000 |
|
2,577,325 |
| ||
|
University of California Revenues, AMBAC |
|
5.000% |
|
5/15/36 |
|
2,620,000 |
|
2,684,085 |
| ||
|
Total California |
|
|
|
|
|
|
|
34,528,129 |
| ||
|
Colorado — 8.8% |
|
|
|
|
|
|
|
|
| ||
|
Colorado Health Facilities Authority Revenue: |
|
|
|
|
|
|
|
|
| ||
|
Poudre Valley Health Care |
|
5.000% |
|
3/1/25 |
|
2,850,000 |
|
3,018,577 |
| ||
|
Sisters of Charity Leavenworth Health System Inc. |
|
5.250% |
|
1/1/25 |
|
3,500,000 |
|
4,071,340 |
| ||
|
Colorado State Health Facilities Authority Revenue, Covenant Retirement Communities |
|
5.000% |
|
12/1/33 |
|
1,500,000 |
|
1,554,645 |
(a) | ||
|
Public Authority for Colorado Energy, Natural Gas Purchase Revenue |
|
5.750% |
|
11/15/18 |
|
425,000 |
|
475,537 |
| ||
|
Public Authority for Colorado Energy, Natural Gas Purchase Revenue |
|
6.500% |
|
11/15/38 |
|
4,000,000 |
|
5,070,720 |
| ||
|
Total Colorado |
|
|
|
|
|
|
|
14,190,819 |
| ||
|
Florida — 3.4% |
|
|
|
|
|
|
|
|
| ||
|
Miami-Dade County, FL, GO, Seaport |
|
5.000% |
|
10/1/23 |
|
2,315,000 |
|
2,744,826 |
| ||
|
Orlando & Orange County, FL, Expressway Authority Revenue |
|
5.000% |
|
7/1/30 |
|
2,000,000 |
|
2,270,900 |
| ||
|
Seminole Tribe Florida Special Obligation Revenue |
|
5.250% |
|
10/1/27 |
|
500,000 |
|
521,415 |
(b) | ||
|
Total Florida |
|
|
|
|
|
|
|
5,537,141 |
| ||
|
Illinois — 16.3% |
|
|
|
|
|
|
|
|
| ||
|
Chicago, IL, Midway Airport Revenue: |
|
|
|
|
|
|
|
|
| ||
|
NATL |
|
5.500% |
|
1/1/29 |
|
2,000,000 |
|
2,004,520 |
| ||
|
NATL |
|
5.625% |
|
1/1/29 |
|
3,750,000 |
|
3,755,063 |
(c) | ||
|
Chicago, IL, Park District, GO, Refunding, FGIC |
|
5.000% |
|
1/1/29 |
|
5,000,000 |
|
5,418,900 |
| ||
|
Chicago, IL, Public Building Commission, Building Revenue, Chicago School Reform, FGIC |
|
5.250% |
|
12/1/18 |
|
1,000,000 |
|
1,190,270 |
| ||
|
Illinois EFA Revenue, Northwestern University |
|
5.500% |
|
12/1/13 |
|
1,070,000 |
|
1,085,397 |
| ||
|
Illinois Health Facilities Authority Revenue: |
|
|
|
|
|
|
|
|
| ||
|
Refunding, Lutheran General Health System |
|
7.000% |
|
4/1/14 |
|
980,000 |
|
1,030,715 |
| ||
See Notes to Schedule of Investments.
WESTERN ASSET MUNICIPAL PARTNERS FUND INC.
Schedule of investments (unaudited) (cont’d)
August 31, 2012
|
SECURITY |
|
RATE |
|
MATURITY |
|
FACE |
|
VALUE |
| ||
|
Illinois — continued |
|
|
|
|
|
|
|
|
| ||
|
Refunding, SSM Health Care, NATL |
|
6.550% |
|
6/1/13 |
|
$ |
1,850,000 |
|
$ |
1,933,102 |
(d) |
|
South Suburban Hospital Project |
|
7.000% |
|
2/15/18 |
|
440,000 |
|
519,653 |
(d) | ||
|
Illinois Municipal Electric Agency Power Supply, FGIC |
|
5.250% |
|
2/1/28 |
|
4,145,000 |
|
4,579,065 |
| ||
|
Illinois State, GO, First Series, AGM |
|
5.500% |
|
5/1/16 |
|
1,500,000 |
|
1,725,165 |
| ||
|
Metropolitan Pier & Exposition Authority, IL, Dedicated State Tax Revenue, McCormick Place, AGM |
|
5.000% |
|
6/15/50 |
|
3,000,000 |
|
3,231,840 |
(e) | ||
|
Total Illinois |
|
|
|
|
|
|
|
26,473,690 |
| ||
|
Indiana — 2.1% |
|
|
|
|
|
|
|
|
| ||
|
Indiana Finance Authority Midwestern Disaster Relife Revenue, Ohio Valley Electric Corp. Project |
|
5.000% |
|
6/1/39 |
|
1,000,000 |
|
1,053,510 |
| ||
|
Indianapolis, IN, Local Public Improvement Bond Bank |
|
5.000% |
|
6/1/27 |
|
2,000,000 |
|
2,290,420 |
| ||
|
Total Indiana |
|
|
|
|
|
|
|
3,343,930 |
| ||
|
Maryland — 2.4% |
|
|
|
|
|
|
|
|
| ||
|
Maryland State EDC, EDR, Transportation Facilities Project |
|
5.750% |
|
6/1/35 |
|
1,000,000 |
|
1,083,540 |
| ||
|
Maryland State Health & Higher EFA Revenue, Suburban Hospital |
|
5.500% |
|
7/1/16 |
|
2,500,000 |
|
2,718,925 |
| ||
|
Total Maryland |
|
|
|
|
|
|
|
3,802,465 |
| ||
|
Massachusetts — 0.9% |
|
|
|
|
|
|
|
|
| ||
|
Massachusetts State Water Pollution Abatement Trust Revenue, MWRA Program, Unrefunded Balance |
|
5.750% |
|
8/1/29 |
|
355,000 |
|
356,033 |
| ||
|
Massachusetts State Water Resources Authority, NATL |
|
5.000% |
|
8/1/34 |
|
1,000,000 |
|
1,127,460 |
| ||
|
Total Massachusetts |
|
|
|
|
|
|
|
1,483,493 |
| ||
|
Michigan — 6.6% |
|
|
|
|
|
|
|
|
| ||
|
Detroit, MI, GO, District State Aid |
|
5.250% |
|
11/1/24 |
|
3,500,000 |
|
4,041,030 |
| ||
|
Michigan State Hospital Finance Authority Revenue: |
|
|
|
|
|
|
|
|
| ||
|
McLaren Health Care Corp. |
|
5.750% |
|
5/15/38 |
|
2,000,000 |
|
2,252,260 |
| ||
|
Trinity Health Corp. |
|
5.375% |
|
12/1/30 |
|
3,000,000 |
|
3,036,840 |
(f) | ||
|
Wayne County, MI, Airport Authority Revenue, Detroit Metropolitan Airport |
|
5.000% |
|
12/1/18 |
|
1,170,000 |
|
1,331,366 |
(c) | ||
|
Total Michigan |
|
|
|
|
|
|
|
10,661,496 |
| ||
|
Missouri — 1.3% |
|
|
|
|
|
|
|
|
| ||
|
Boone County, MO, Hospital Revenue, Boone Hospital Center |
|
5.375% |
|
8/1/38 |
|
2,000,000 |
|
2,171,700 |
| ||
|
Nevada — 1.4% |
|
|
|
|
|
|
|
|
| ||
|
Clark County, NV, GO, AMBAC |
|
5.000% |
|
11/1/21 |
|
2,000,000 |
|
2,273,840 |
| ||
|
New Jersey — 1.6% |
|
|
|
|
|
|
|
|
| ||
|
New Jersey State EDA Revenue |
|
5.000% |
|
6/15/29 |
|
500,000 |
|
551,155 |
| ||
|
New Jersey State EDA Revenue, Continental Airlines Inc. Project |
|
5.250% |
|
9/15/29 |
|
2,000,000 |
|
2,032,100 |
(c) | ||
|
Total New Jersey |
|
|
|
|
|
|
|
2,583,255 |
| ||
|
New York — 28.8% |
|
|
|
|
|
|
|
|
| ||
|
Brooklyn Arena, NY, Local Development Corp., Barclays Center Project |
|
6.250% |
|
7/15/40 |
|
1,000,000 |
|
1,140,090 |
| ||
|
Hudson, NY, Yards Infrastructure Corp. Revenue |
|
5.750% |
|
2/15/47 |
|
2,500,000 |
|
2,898,100 |
| ||
|
Liberty, NY, Development Corporation Revenue, Goldman Sachs Headquarters |
|
5.250% |
|
10/1/35 |
|
1,500,000 |
|
1,740,960 |
| ||
See Notes to Schedule of Investments.
WESTERN ASSET MUNICIPAL PARTNERS FUND INC.
Schedule of investments (unaudited) (cont’d)
August 31, 2012
|
SECURITY |
|
RATE |
|
MATURITY |
|
FACE |
|
VALUE |
| ||
|
New York — continued |
|
|
|
|
|
|
|
|
| ||
|
MTA, NY, Revenue |
|
5.000% |
|
11/15/25 |
|
$ |
1,000,000 |
|
$ |
1,173,620 |
|
|
MTA, NY, Revenue |
|
5.250% |
|
11/15/40 |
|
1,000,000 |
|
1,128,970 |
| ||
|
Nassau County, NY, Industrial Development Agency Revenue, Continuing Care Retirement, Amsterdam at Harborside |
|
6.700% |
|
1/1/43 |
|
500,000 |
|
341,830 |
| ||
|
New York City, NY, Municipal Water Finance Authority, Water & Sewer System Revenue, Second General Resolution Fiscal 2011 |
|
5.000% |
|
6/15/31 |
|
4,850,000 |
|
5,638,465 |
| ||
|
New York City, NY, TFA Revenue: |
|
|
|
|
|
|
|
|
| ||
|
Future Tax Secured |
|
5.500% |
|
11/15/17 |
|
4,100,000 |
|
4,141,861 |
(f) | ||
|
Unrefunded Balance, Future Tax Secured |
|
5.500% |
|
11/15/17 |
|
15,000 |
|
15,151 |
| ||
|
New York Liberty Development Corp., Liberty Revenue: |
|
|
|
|
|
|
|
|
| ||
|
4 World Trade Center LLC Project |
|
5.750% |
|
11/15/51 |
|
2,000,000 |
|
2,368,240 |
| ||
|
Second Priority, Bank of America Tower |
|
5.125% |
|
1/15/44 |
|
2,500,000 |
|
2,758,025 |
| ||
|
New York State Dormitory Authority Revenue, Court Facilities Lease, NYC Issue, Non State Supported Debt, AMBAC |
|
5.500% |
|
5/15/30 |
|
3,365,000 |
|
4,425,715 |
| ||
|
New York State Dormitory Authority Revenue, Non-State Supported Debt, Columbia University |
|
5.000% |
|
7/1/38 |
|
2,000,000 |
|
2,285,460 |
| ||
|
New York State Thruway Authority, Second General Highway & Bridge Trust Fund, AMBAC |
|
5.000% |
|
4/1/26 |
|
4,700,000 |
|
5,212,911 |
| ||
|
New York State Urban Development Corp. Revenue, State Personal Income Tax |
|
5.000% |
|
3/15/26 |
|
5,000,000 |
|
5,784,150 |
| ||
|
Port Authority of New York & New Jersey |
|
5.000% |
|
1/15/41 |
|
5,000,000 |
|
5,659,200 |
| ||
|
Total New York |
|
|
|
|
|
|
|
46,712,748 |
| ||
|
North Carolina — 4.3% |
|
|
|
|
|
|
|
|
| ||
|
Charlotte-Mecklenburg Hospital Authority, NC, Health Care System Revenue, Carolinas Healthcare System |
|
5.000% |
|
1/15/31 |
|
5,000,000 |
|
5,748,850 |
| ||
|
North Carolina Medical Care Commission Health Care Facilities Revenue, Novant Health Obligation Group |
|
5.000% |
|
11/1/39 |
|
1,200,000 |
|
1,256,664 |
| ||
|
Total North Carolina |
|
|
|
|
|
|
|
7,005,514 |
| ||
|
Ohio — 0.7% |
|
|
|
|
|
|
|
|
| ||
|
Ohio State Air Quality Development Authority Revenue, FirstEnergy Generation Corp. |
|
5.700% |
|
8/1/20 |
|
1,000,000 |
|
1,161,190 |
| ||
|
Oklahoma — 1.4% |
|
|
|
|
|
|
|
|
| ||
|
Grand River Dam Authority, OK, Revenue |
|
5.250% |
|
6/1/40 |
|
2,000,000 |
|
2,301,080 |
| ||
|
Oregon — 0.8% |
|
|
|
|
|
|
|
|
| ||
|
Multnomah County, OR, Hospital Facilities Authority Revenue, Providence Health Systems |
|
5.250% |
|
10/1/18 |
|
1,250,000 |
|
1,368,538 |
| ||
|
Pennsylvania — 5.9% |
|
|
|
|
|
|
|
|
| ||
|
Central Bradford, PA, Progress Authority Revenue, Guthrie Healthcare Systems |
|
5.000% |
|
12/1/26 |
|
5,130,000 |
|
5,938,642 |
| ||
|
Pennsylvania Economic Development Financing Authority, Sewer Sludge Disposal Revenue, Philadelphia Biosolids Facility |
|
6.250% |
|
1/1/32 |
|
500,000 |
|
570,060 |
| ||
|
Philadelphia, PA, Gas Works Revenue, 7th General Ordinance, AMBAC |
|
5.000% |
|
10/1/17 |
|
2,685,000 |
|
3,098,060 |
| ||
|
Total Pennsylvania |
|
|
|
|
|
|
|
9,606,762 |
| ||
|
Puerto Rico — 4.2% |
|
|
|
|
|
|
|
|
| ||
|
Puerto Rico Commonwealth Aqueduct & Sewer Authority Revenue |
|
5.250% |
|
7/1/42 |
|
2,000,000 |
|
2,015,120 |
| ||
See Notes to Schedule of Investments.
WESTERN ASSET MUNICIPAL PARTNERS FUND INC.
Schedule of investments (unaudited) (cont’d)
August 31, 2012
|
SECURITY |
|
RATE |
|
MATURITY |
|
FACE |
|
VALUE |
| ||
|
Puerto Rico — continued |
|
|
|
|
|
|
|
|
|
|
|
|
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority Revenue, Ana G. Mendez University System Project |
|
5.375% |
|
4/1/42 |
|
$ |
500,000 |
|
$ |
504,635 |
|
|
Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue |
|
5.000% |
|
8/1/40 |
|
2,000,000 |
|
2,151,600 |
| ||
|
Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue |
|
5.500% |
|
8/1/42 |
|
2,000,000 |
|
2,157,280 |
| ||
|
Total Puerto Rico |
|
|
|
|
|
|
|
6,828,635 |
| ||
|
Rhode Island — 1.0% |
|
|
|
|
|
|
|
|
| ||
|
Rhode Island State Clean Water Finance Agency Water PCR, Revolving Fund Pooled Loan |
|
5.000% |
|
10/1/24 |
|
1,265,000 |
|
1,552,547 |
| ||
|
Tennessee — 3.7% |
|
|
|
|
|
|
|
|
| ||
|
Tennessee Energy Acquisition Corp., Gas Revenue |
|
5.000% |
|
2/1/20 |
|
3,555,000 |
|
3,870,968 |
| ||
|
Tennessee Energy Acquisition Corp., Gas Revenue |
|
5.000% |
|
2/1/21 |
|
2,000,000 |
|
2,187,740 |
| ||
|
Total Tennessee |
|
|
|
|
|
|
|
6,058,708 |
| ||
|
Texas — 19.6% |
|
|
|
|
|
|
|
|
| ||
|
Austin, TX, Water & Wastewater System Revenue |
|
5.000% |
|
11/15/26 |
|
2,500,000 |
|
2,955,875 |
| ||
|
Austin, TX, Water & Wastewater System Revenue |
|
5.125% |
|
11/15/28 |
|
2,210,000 |
|
2,610,342 |
| ||
|
Beaumont, TX, ISD, GO, School Building, PSF |
|
5.000% |
|
2/15/33 |
|
1,100,000 |
|
1,235,586 |
| ||
|
Dallas-Fort Worth, TX, International Airport Revenue: |
|
|
|
|
|
|
|
|
| ||
|
Joint Improvement |
|
5.000% |
|
11/1/38 |
|
2,000,000 |
|
2,150,340 |
(c) | ||
|
Joint Improvement |
|
5.000% |
|
11/1/42 |
|
1,000,000 |
|
1,072,790 |
(c) | ||
|
Harris County, TX, Health Facilities Development Corp., Hospital Revenue, Memorial Hermann Healthcare Systems |
|
5.250% |
|
12/1/18 |
|
2,960,000 |
|
3,234,007 |
| ||
|
Harris County, TX, Metropolitan Transit Authority Sales & Use Tax |
|
5.000% |
|
11/1/36 |
|
2,500,000 |
|
2,865,175 |
| ||
|
Kemp, TX, ISD, GO, School Building |
|
5.250% |
|
2/15/33 |
|
3,450,000 |
|
3,941,590 |
| ||
|
Mesquite, TX, ISD, GO: |
|
|
|
|
|
|
|
|
| ||
|
PSFG |
|
0.000% |
|
8/15/27 |
|
505,000 |
|
268,847 |
(f) | ||
|
PSFG |
|
0.000% |
|
8/15/27 |
|
495,000 |
|
257,722 |
| ||
|
North Texas Tollway Authority Revenue |
|
5.750% |
|
1/1/40 |
|
2,500,000 |
|
2,827,700 |
| ||
|
Texas State Turnpike Authority Revenue, First Tier, AMBAC |
|
5.500% |
|
8/15/39 |
|
5,000,000 |
|
5,015,850 |
| ||
|
Texas State, GO, Water Financial Assistance |
|
5.000% |
|
8/1/27 |
|
2,755,000 |
|
3,323,604 |
| ||
|
Total Texas |
|
|
|
|
|
|
|
31,759,428 |
| ||
|
Washington — 5.1% |
|
|
|
|
|
|
|
|
| ||
|
Port of Seattle, WA, Revenue |
|
5.000% |
|
8/1/25 |
|
2,395,000 |
|
2,896,274 |
| ||
|
Port of Seattle, WA, Revenue, Refunding, Intermediate Lien, NATL |
|
5.000% |
|
3/1/30 |
|
2,000,000 |
|
2,151,880 |
| ||
|
Washington State Health Care Facilities Authority Revenue, PeaceHealth |
|
5.000% |
|
11/1/28 |
|
3,000,000 |
|
3,256,740 |
| ||
|
Total Washington |
|
|
|
|
|
|
|
8,304,894 |
| ||
|
Wisconsin — 4.6% |
|
|
|
|
|
|
|
|
| ||
|
Public Finance Authority, WI, Airport Facilities Revenue, Transportation Infrastructure Properties LLC |
|
5.000% |
|
7/1/42 |
|
4,000,000 |
|
4,005,880 |
(a)(c) | ||
|
Wisconsin State HEFA Revenue, SSM Health Care Corp. |
|
5.000% |
|
6/1/25 |
|
3,110,000 |
|
3,502,140 |
| ||
|
Total Wisconsin |
|
|
|
|
|
|
|
7,508,020 |
| ||
See Notes to Schedule of Investments.
WESTERN ASSET MUNICIPAL PARTNERS FUND INC.
Schedule of investments (unaudited) (cont’d)
August 31, 2012
|
SECURITY |
|
RATE |
|
MATURITY |
|
FACE |
|
VALUE |
| ||
|
TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS (Cost — $221,496,923) |
|
$ |
242,807,115 |
| |||||||
|
SHORT-TERM INVESTMENTS — 4.5% |
|
|
|
|
|
|
|
|
| ||
|
Illinois — 0.3% |
|
|
|
|
|
|
|
|
| ||
|
Illinois Finance Authority Revenue, Provena Health, LOC-JPMorgan Chase |
|
0.180% |
|
8/15/44 |
|
$ |
400,000 |
|
400,000 |
(g)(h) | |
|
Missouri — 0.2% |
|
|
|
|
|
|
|
|
| ||
|
Missouri State HEFA, BJC Health Systems, SPA-U.S. Bank N.A. |
|
0.160% |
|
5/15/38 |
|
300,000 |
|
300,000 |
(g)(h) | ||
|
New York — 3.1% |
|
|
|
|
|
|
|
|
| ||
|
New York City, NY, Trust for Cultural Resources Revenue, American Museum of Natural History, SPA-Wells Fargo Bank N.A. |
|
0.150% |
|
4/1/29 |
|
600,000 |
|
600,000 |
(g)(h) | ||
|
New York State Dormitory Authority Revenue, State Supported Debt, City University of New York, LOC-TD Bank N.A. |
|
0.160% |
|
7/1/31 |
|
4,500,000 |
|
4,500,000 |
(g)(h) | ||
|
Total New York |
|
|
|
|
|
|
|
5,100,000 |
| ||
|
North Carolina — 0.7% |
|
|
|
|
|
|
|
|
| ||
|
Charlotte-Mecklenburg Hospital Authority, NC, Health Care System Revenue, AGM, SPA-Dexia Credit Local |
|
0.220% |
|
1/15/44 |
|
1,190,000 |
|
1,190,000 |
(g)(h) | ||
|
Wisconsin — 0.2% |
|
|
|
|
|
|
|
|
| ||
|
Wisconsin State HEFA Revenue, Aspirus Wausau Hospital Inc., LOC-JPMorgan Chase |
|
0.180% |
|
8/15/36 |
|
400,000 |
|
400,000 |
(g)(h) | ||
|
TOTAL SHORT-TERM INVESTMENTS (Cost — $7,390,000) |
|
|
|
7,390,000 |
| ||||||
|
TOTAL INVESTMENTS — 154.2% (Cost — $228,886,923#) |
|
|
|
250,197,115 |
| ||||||
|
Auction Rate Cumulative Preferred Stock, at Liquidation Value — (52.4)% |
|
|
|
(85,000,000 |
) | ||||||
|
Liabilities in Excess of Other Assets — (1.8)% |
|
|
|
(2,984,790 |
) | ||||||
|
TOTAL NET ASSETS — 100.0% |
|
|
|
$ |
162,212,325 |
| |||||
|
(a) |
Security is purchased on a when-issued basis. | |
|
(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 of Directors, unless otherwise noted. | |
|
(c) |
Income from this issue is considered a preference item for purposes of calculating the alternative minimum tax (“AMT”). | |
|
(d) |
Bonds are escrowed to maturity by government securities and/or U.S. government agency securities and are considered by the manager to be triple-A rated even if issuer has not applied for new ratings. | |
|
(e) |
All or a portion of this security is held at the broker as collateral for open futures contracts. | |
|
(f) |
Pre-Refunded bonds are escrowed with U.S. government obligations and/or U.S. government agency securities and are considered by the manager to be triple-A rated even if issuer has not applied for new ratings. | |
|
(g) |
Variable rate demand obligations 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. | |
|
(h) |
Maturity date shown is the final maturity date. The security may be sold back to the issuer before final maturity. | |
|
# |
Aggregate cost for federal income tax purposes is substantially the same. | |
|
|
| |
|
|
Abbreviations used in this schedule: | |
|
|
AGM |
- Assured Guaranty Municipal Corporation - Insured Bonds |
|
|
AMBAC |
- American Municipal Bond Assurance Corporation - Insured Bonds |
|
|
CDA |
- Communities Development Authority |
|
|
COP |
- Certificates of Participation |
|
|
EDA |
- Economic Development Authority |
|
|
EDC |
- Economic Development Corporation |
|
|
EDR |
- Economic Development Revenue |
|
|
EFA |
- Educational Facilities Authority |
|
|
FGIC |
- Financial Guaranty Insurance Company - Insured Bonds |
|
|
GO |
- General Obligation |
|
|
HEFA |
- Health & Educational Facilities Authority |
|
|
ISD |
- Independent School District |
See Notes to Schedule of Investments.
WESTERN ASSET MUNICIPAL PARTNERS FUND INC.
Schedule of investments (unaudited) (cont’d)
August 31, 2012
|
|
LOC |
- Letter of Credit |
|
|
MTA |
- Metropolitan Transportation Authority |
|
|
MWRA |
- Massachusetts Water Resources Authority |
|
|
NATL |
- National Public Finance Guarantee Corporation - Insured Bonds |
|
|
PCR |
- Pollution Control Revenue |
|
|
PSF |
- Permanent School Fund |
|
|
PSFG |
- Permanent School Fund Guaranty |
|
|
SPA |
- Standby Bond Purchase Agreement - Insured Bonds |
|
|
TFA |
- Transitional Finance Authority |
See Notes to Schedule of Investments.
WESTERN ASSET MUNICIPAL PARTNERS FUND INC.
Schedule of investments (unaudited) (cont’d)
August 31, 2012
Summary of Investments by Industry †
|
Health Care |
|
15.2 |
% |
|
Transportation |
|
15.0 |
|
|
Special Tax Obligation |
|
11.3 |
|
|
Local General Obligation |
|
10.3 |
|
|
Industrial Revenue |
|
9.3 |
|
|
Power |
|
7.9 |
|
|
Water & Sewer |
|
7.6 |
|
|
Leasing |
|
5.0 |
|
|
State General Obligation |
|
4.3 |
|
|
Other |
|
4.3 |
|
|
Pre-Refunded/Escrowed to Maturity |
|
4.0 |
|
|
Education |
|
2.6 |
|
|
Solid Waste/Resource Recovery |
|
0.2 |
|
|
Short-term Investments |
|
3.0 |
|
|
|
|
100.0 |
% |
† As a percentage of total investments. Please note that Fund holdings are as of August, 31, 2012 and are subject to change.
Ratings Table*
Standard & Poor’s/Moody’s/Fitch**
|
AAA/Aaa |
|
12.9 |
% |
|
AA/Aa |
|
39.4 |
|
|
A |
|
34.4 |
|
|
BBB/Baa |
|
8.9 |
|
|
B |
|
0.8 |
|
|
A-1/VMIG 1 |
|
3.0 |
|
|
NR |
|
0.6 |
|
|
|
|
100.0 |
% |
* As a percentage of total investments.
** The ratings shown are based on each portfolio security’s rating as determined by Standard & Poor’s, Moody’s or Fitch, each a Nationally Recognized Statistical Rating Organization (“NRSRO”). These ratings are the opinions of the NRSRO and are not measures of quality or guarantees of performance. Securities may be rated by other NRSROs, and these ratings may be higher or lower. In the event that a security is rated by multiple NRSROs and receives different ratings, the Fund will treat the security as being rated in the highest rating category received from a NRSRO.
See Notes to Schedule of Investments.
Notes to schedule of investments (unaudited)
1. Organization and significant accounting policies
Western Asset Municipal Partners Fund Inc. (the “Fund”) was incorporated in Maryland on November 24, 1992 and is registered as a diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Board of Directors authorized 100 million shares of $0.001 par value common stock. The Fund’s primary investment objective is to seek a high level of current income which is exempt from federal income taxes, consistent with the preservation of capital. As a secondary investment objective, the Fund intends to enhance portfolio value by purchasing tax exempt securities that, in the opinion of the investment manager, may appreciate in value relative to other similar obligations in the marketplace.
The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”).
(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 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. Short-term fixed income securities that will mature in 60 days or less are valued at amortized cost, unless it is determined that using this method would not reflect an investment’s fair value. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded. 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 of Directors is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Legg Mason North American Fund Valuation Committee (the “Valuation Committee”). The Valuation Committee, pursuant to the policies adopted by the Board of Directors, is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Board of Directors. 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 of Directors, 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 of Directors 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.
Notes to schedule of investments (unaudited) (continued)
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—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 |
|
OTHER |
|
SIGNIFICANT |
|
TOTAL |
| ||
|
Municipal bonds† |
|
— |
|
$ |
242,807,115 |
|
— |
|
$ |
242,807,115 |
|
|
Short-term investments† |
|
— |
|
7,390,000 |
|
— |
|
7,390,000 |
| ||
|
Total investments |
|
— |
|
$ |
250,197,115 |
|
— |
|
$ |
250,197,115 |
|
|
LIABILITIES | |||||||||||
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
QUOTED PRICES |
|
OTHER |
|
SIGNIFICANT |
|
|
| ||
|
DESCRIPTION |
|
(LEVEL 1) |
|
(LEVEL 2) |
|
(LEVEL 3) |
|
TOTAL |
| ||
|
Other financial instruments: |
|
|
|
|
|
|
|
|
| ||
|
Futures contracts |
|
$ |
18,692 |
|
— |
|
— |
|
$ |
18,692 |
|
†See Schedule of Investments for additional detailed categorizations.
(b) 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 cash equivalents 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.
Futures contracts involve, to varying degrees, risk of loss. 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.
(c) Securities traded on a when-issued basis. The Fund may trade securities on a when-issued basis. In a when-issued transaction, 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.
(d) Security transactions. Security transactions are accounted for on a trade date basis.
Notes to schedule of investments (unaudited) (continued)
2. Investments
At August 31, 2012, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:
|
Gross unrealized appreciation |
|
$ |
21,541,426 |
|
|
Gross unrealized depreciation |
|
(231,234 |
) | |
|
Net unrealized appreciation |
|
$ |
21,310,192 |
|
At August 31, 2012, the Fund had the following open futures contracts:
|
|
|
NUMBER OF |
|
EXPIRATION |
|
BASIS |
|
MARKET |
|
UNREALIZED |
| |||
|
Contracts to Sell: |
|
|
|
|
|
|
|
|
|
|
| |||
|
U.S. Treasury 30-Year Bonds |
|
71 |
|
9/12 |
|
$ |
10,666,808 |
|
$ |
10,685,500 |
|
$ |
(18,692 |
) |
3. Derivative instruments and hedging activities
Financial Accounting Standards Board Codification Topic 815 requires enhanced disclosure about an entity’s derivative and hedging activities.
The following is a summary of the Fund’s derivative instruments categorized by risk exposure at August 31, 2012.
|
Primary Underlying |
|
Futures Contracts |
| |
|
Interest Rate Risk |
|
$ |
(18,692 |
) |
During the period ended August 31, 2012, the volume of derivative activity for the Fund was as follows:
|
|
|
|
| |
|
|
|
Average market value |
| |
|
Futures contracts (to sell) |
|
$ |
7,167,997 |
|
4. Recent accounting pronouncement
In May 2011, the Financial Accounting Standards Board issued Accounting Standards Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs (“ASU No. 2011-04”). ASU No. 2011-04 establishes common requirements for measuring fair value and for disclosing information about fair value measurements. ASU No. 2011-04 is effective during interim and annual periods beginning after December 15, 2011. Management has evaluated ASU No. 2011-04 and concluded that it does not materially impact the financial statement amounts; however, as required, additional disclosure has been included about fair value measurement.
ITEM 2. CONTROLS AND PROCEDURES.
(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are likely to materially affect the registrant’s internal control over financial reporting.
ITEM 3. EXHIBITS.
Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached hereto.
SIGNATURES
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, thereunto duly authorized.
Western Asset Municipal Partners Fund Inc.
|
By |
/s/ R. Jay Gerken |
|
|
|
R. Jay Gerken |
|
|
|
Chief Executive Officer |
|
|
|
| |
|
Date: October 26, 2012 |
| |
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.
|
By |
/s/ R. Jay Gerken |
|
|
|
R. Jay Gerken |
|
|
|
Chief Executive Officer |
|
|
|
| |
|
Date: October 26, 2012 |
| |
|
By |
/s/ Richard F. Sennett |
|
|
|
Richard F. Sennett |
|
|
|
Principal Financial Officer |
|
|
|
| |
|
Date: October 26, 2012 |
| |