Western Asset Municipal Defined Opportunity Trust Inc.

 

 

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 811-22265

Western Asset Municipal Defined Opportunity Trust 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: February 28, 2017

 

 

 


 

ITEM 1. SCHEDULE OF INVESTMENTS.


WESTERN ASSET MUNICIPAL DEFINED OPPORTUNITY TRUST INC.

FORM N-Q

FEBRUARY 28, 2017


WESTERN ASSET MUNICIPAL DEFINED OPPORTUNITY TRUST INC.

 

Schedule of investments (unaudited)    February 28, 2017

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  
MUNICIPAL BONDS - 98.7%           

Alabama - 2.7%

          

Jefferson County, AL, Sewer Revenue, Convertible CAB, Subordinated Lien

     0.000     10/1/50      $ 9,470,000      $ 7,107,614 (a) 
          

 

 

 

Arizona - 3.3%

          

Navajo Nation, AZ, Revenue

     5.000     12/1/25        350,000        376,663 (b) 

Salt Verde, AZ, Financial Corp. Senior Gas Revenue

     5.000     12/1/32        7,110,000        8,131,778  
          

 

 

 

Total Arizona

             8,508,441  
          

 

 

 

California - 3.8%

          

California State PCFA, Water Furnishing Revenue

     5.000     11/21/45        3,500,000        3,633,910 (b)(c) 

California Statewide CDA, Student Housing Revenue, Provident Group-Pomona Properties LLC

     5.600     1/15/36        790,000        837,668  

Lower Tule River, CA, Irrigation District Revenue, COP

     5.000     8/1/40        1,000,000        1,089,450  

M-S-R Energy Authority, CA, Gas Revenue

     6.125     11/1/29        2,000,000        2,493,560  

River Islands, CA, Public Financing Authority Special Tax, Community Facilities District No. 2003-1

     5.000     9/1/27        740,000        769,541  

University of California, CA, Revenue

     4.000     5/15/46        1,000,000        1,020,040  
          

 

 

 

Total California

             9,844,169  
          

 

 

 

Colorado - 4.3%

          

Base Village Metropolitan District #2 Co., GO

     5.750     12/1/46        500,000        506,175  

Colorado State Health Facilities Authority Revenue, Adventist Health System/Sunbelt Obligated Group

     5.000     11/15/23        3,000,000        3,494,130 (a)(d) 

Public Authority for Colorado Energy, Natural Gas Purchase Revenue

     6.125     11/15/23        6,000,000        7,146,120  
          

 

 

 

Total Colorado

             11,146,425  
          

 

 

 

Florida - 3.6%

          

Citizens Property Insurance Corp., FL, Revenue, Senior Secured, High Act

     6.000     6/1/17        6,900,000        6,990,252  

Florida State Development Finance Corp., Senior Living Revenue:

          

Tuscan Isle Champions Gate Project

     5.625     6/1/26        275,000        269,450 (b) 

Tuscan Isle Champions Gate Project

     6.000     6/1/30        150,000        145,850 (b) 

Tuscan Isle Obligated Group

     7.000     6/1/35        250,000        250,272 (b) 

Florida State Municipal Power Agency Revenue, All Requirements Power

     6.250     10/1/31        1,000,000        1,129,980 (e) 

Orange County, FL, Health Facilities Authority Revenue, Presbyterian Retirement Communities

     5.000     8/1/47        250,000        263,815  

Orange County, FL, IDA Revenue, Vitag Florida LLC Project

     8.000     7/1/36        250,000        231,310 (b)(c) 
          

 

 

 

Total Florida

             9,280,929  
          

 

 

 

Georgia - 7.4%

          

Atlanta, GA, Water & Wastewater Revenue

     6.000     11/1/23        5,000,000        5,635,050 (e) 

Atlanta, GA, Water & Wastewater Revenue

     6.250     11/1/34        3,260,000        3,695,373 (e)(f) 

DeKalb, Newton & Gwinnett Counties, GA, Joint Development Authority Revenue, GGC Foundation LLC Project

     6.125     7/1/40        9,000,000        9,941,940  
          

 

 

 

Total Georgia

             19,272,363  
          

 

 

 

 

See Notes to Schedule of Investments.

 

1


WESTERN ASSET MUNICIPAL DEFINED OPPORTUNITY TRUST INC.

 

Schedule of investments (unaudited) (cont’d)    February 28, 2017

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

Illinois - 3.8%

          

Chicago, IL, GO

     5.500     1/1/30      $ 1,685,000      $ 1,696,576  

Chicago, IL, GO

     6.000     1/1/38        500,000        516,060  

Chicago, IL, Motor Fuel Tax Revenue

     5.000     1/1/26        1,000,000        1,048,820  

Chicago, IL, O’Hare International Airport Revenue

     5.000     1/1/46        2,000,000        2,183,720  

Chicago, IL, O’Hare International Airport Revenue:

          

General, Senior Lien

     5.000     1/1/35        250,000        277,655  

Senior Lien

     5.000     1/1/47        500,000        550,955  

Senior Lien

     5.000     1/1/52        500,000        547,510  

Illinois State, GO

     5.000     2/1/26        1,000,000        1,047,550  

Illinois State, GO

     5.000     2/1/27        250,000        260,912  

Illinois State, GO

     5.000     2/1/28        600,000        621,810  

Metropolitan Pier & Exposition Authority, IL, Dedicated State Tax Revenue, McCormick Project, State Appropriations

     5.250     6/15/50        1,000,000        1,014,050  

Metropolitan Pier & Exposition Authority, IL, Revenue, CAB-McCormick Place Expansion Project

     0.000     12/15/52        1,000,000        139,060  
          

 

 

 

Total Illinois

             9,904,678  
          

 

 

 

Indiana - 7.0%

          

Indiana Finance Authority, IN, Wastewater Utility Revenue, Green Bonds, CWA Authority Project, NATL

     5.000     10/1/46        675,000        747,502  

Indiana Municipal Power Agency, Power Supply System Revenue

     6.000     1/1/39        8,000,000        8,721,040 (e) 

Richmond, IN, Hospital Authority Revenue, Reid Hospital & Health Care Services Inc. Project

     6.500     1/1/29        8,000,000        8,770,240 (e) 
          

 

 

 

Total Indiana

             18,238,782  
          

 

 

 

Louisiana - 4.1%

          

Louisiana State Citizens Property Insurance Corp., Assessment Revenue, AGC

     6.125     6/1/25        10,000,000        10,645,000 (e) 
          

 

 

 

Maryland - 4.2%

          

Howard County, MD, Housing Commission Revenue, Columbia Commons Apartments

     5.000     6/1/44        1,350,000        1,442,421  

Maryland State Health & Higher EFA Revenue, Washington County Hospital Issue

     5.750     1/1/38        9,000,000        9,359,820 (e) 
          

 

 

 

Total Maryland

             10,802,241  
          

 

 

 

Massachusetts - 0.1%

          

Massachusetts State DFA Revenue, Umass Boston Student Housing Project

     5.000     10/1/41        250,000        265,428  
          

 

 

 

Michigan - 12.3%

          

Detroit, MI, Water Supply System Revenue:

          

Second Lien, AGM

     6.250     7/1/36        2,995,000        3,346,254 (e) 

Second Lien, AGM

     6.250     7/1/36        5,000        5,520  

Michigan State Finance Authority Limited Obligation Revenue, Higher Education, Thomas M Cooley Law School Project

     6.000     7/1/24        1,500,000        1,549,095 (b) 

Michigan State Finance Authority Revenue:

          

Detroit School District

     5.500     6/1/21        5,500,000        5,728,745 (e) 

Local Government Loan Program, Detroit Water & Sewer Department

     5.000     7/1/33        350,000        380,247  

Senior Lien Detroit Water & Sewer

     5.000     7/1/33        410,000        446,113  

 

See Notes to Schedule of Investments.

 

2


WESTERN ASSET MUNICIPAL DEFINED OPPORTUNITY TRUST INC.

 

Schedule of investments (unaudited) (cont’d)    February 28, 2017

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

Michigan - (continued)

          

Michigan State Hospital Finance Authority Revenue, McLaren Health Care Corp.

     5.750     5/15/38      $ 9,000,000      $ 9,520,830 (e) 

Royal Oak, MI, Hospital Finance Authority Revenue:

          

William Beaumont Hospital

     5.000     9/1/39        2,000,000        2,156,380  

William Beaumont Hospital

     8.250     9/1/39        8,000,000        8,858,160 (e) 
          

 

 

 

Total Michigan

             31,991,344  
          

 

 

 

New Jersey - 5.6%

          

Gloucester County, NJ, PCFA Revenue, Keystone Urban Renewal, Logan Generating

     5.000     12/1/24        750,000        810,367 (c) 

New Jersey State EDA Revenue, Continental Airlines Inc. Project

     4.875     9/15/19        965,000        1,001,786 (c) 

New Jersey State EFA Revenue, University of Medicine & Dentistry

     7.500     12/1/32        10,000,000        11,388,300 (e) 

New Jersey State Transportation Trust Fund Authority Revenue, Capital Appreciation Transportation System, NATL

     0.000     12/15/31        3,000,000        1,494,390  
          

 

 

 

Total New Jersey

             14,694,843  
          

 

 

 

New York - 7.6%

          

Liberty, NY, Development Corp. Revenue, Goldman Sachs Headquarters

     5.250     10/1/35        2,500,000        2,987,275  

MTA Hudson Rail Yards Trust Obligations Revenue

     5.000     11/15/51        1,250,000        1,344,575  

MTA, NY, Dedicated Tax Fund Revenue, Green Bonds

     5.000     11/15/47        500,000        570,760  

New York State Convention Center Development Corp. Revenue, CAB, Subordinated Lien, Hotel Unit Fee Secured

     0.000     11/15/32        2,000,000        1,077,260  

New York State Liberty Development Corp., Liberty Revenue, 3 World Trade Center LLC Project

     5.000     11/15/44        575,000        602,646 (b) 

New York State Thruway Authority General Revenue, Junior Indebtedness Obligations, Junior Lien

     5.000     1/1/46        1,000,000        1,106,620  

New York State Transportation Development Corp., Special Facilities Revenue, Laguardia Airport Terminal B Redevelopment Project

     5.000     7/1/46        3,000,000        3,150,840 (c) 

Port Authority of New York & New Jersey, Special Obligation Revenue, JFK International Air Terminal LLC

     5.500     12/1/31        7,925,000        8,853,731  
          

 

 

 

Total New York

             19,693,707  
          

 

 

 

North Carolina - 0.3%

          

North Carolina State Turnpike Authority Monroe Expressway Toll Revenue

     5.000     7/1/54        750,000        807,270  
          

 

 

 

Oklahoma - 0.1%

          

Payne County, OK, EDA Revenue, Epworth Living at The Ranch

     6.250     11/1/31        200,000        194,562  
          

 

 

 

Oregon - 0.3%

          

Oregon State Facilities Authority Revenue, Legacy Health Project

     5.000     6/1/46        650,000        715,611  
          

 

 

 

Pennsylvania - 5.0%

          

Cumberland County, PA, Municipal Authority Revenue, Diakon Lutheran Social Ministries Project

     5.000     1/1/27        1,000,000        1,101,880  

Pennsylvania Economic Development Financing Authority, Water Facility Revenue, American Water Co. Project

     6.200     4/1/39        10,000,000        10,953,500  

State Public School Building Authority Palease Revenue:

          

Philadelphia School District Project, AGM

     5.000     6/1/31        200,000        221,270  

Philadelphia School District Project, AGM

     5.000     6/1/33        550,000        601,425  
          

 

 

 

Total Pennsylvania

             12,878,075  
          

 

 

 

 

See Notes to Schedule of Investments.

 

3


WESTERN ASSET MUNICIPAL DEFINED OPPORTUNITY TRUST INC.

 

Schedule of investments (unaudited) (cont’d)    February 28, 2017

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

Rhode Island - 4.3%

          

Rhode Island State Health & Educational Building Corp. Revenue, Hospital Financing

     7.000     5/15/39      $ 10,000,000      $ 11,232,000 (e) 
          

 

 

 

Texas - 11.8%

          

Alamo, TX, Regional Mobility Authority Revenue, Senior Lien

     5.000     6/15/41        500,000        561,145  

Brazos River, TX, Harbor Navigation District Revenue, Brazoria County Environmental, Dow Chemical Co. Project

     5.950     5/15/33        10,000,000        10,605,200 (c) 

Clifton, TX, Higher Education Finance Corp., Education Revenue, IDEA Public Schools, PSF-GTD

     5.000     8/15/35        2,400,000        2,764,656  

Love Field Airport Modernization Corp., TX, Special Facilities Revenue, Southwest Airlines Co. Project

     5.250     11/1/40        3,000,000        3,234,420  

Love Field, TX, Airport Modernization Corp., General Airport Revenue

     5.000     11/1/31        120,000        135,903 (c) 

North Texas Tollway Authority Revenue

     5.000     1/1/33        400,000        453,984  

North Texas Tollway Authority Revenue

     5.750     1/1/33        10,200,000        10,612,080 (e) 

Texas State Municipal Gas Acquisition & Supply Corp. I, Gas Supply Revenue

     6.250     12/15/26        1,310,000        1,550,110  

Texas State Private Activity Bond Surface Transportation Corp. Revenue, Senior Lien, Blueridge Transportation Group LLC

     5.000     12/31/40        500,000        529,600 (c) 

Woodloch Health Facilities Development Corp., TX, Senior Housing Revenue:

          

Inspired Living Lewsville Project

     6.750     12/1/51        300,000        286,848 (b) 

Inspired Living Lewsville Project

     10.000     12/1/51        50,000        44,945  
          

 

 

 

Total Texas

             30,778,891  
          

 

 

 

U.S. Virgin Islands - 1.2%

          

Virgin Islands Public Finance Authority Revenue, Matching Fund Loan

     6.625     10/1/29        4,000,000        3,120,000  
          

 

 

 

Utah - 0.1%

          

Utah State Charter School Finance Authority, Charter School Revenue, Syracuse Arts Academy Project, UT CSCE

     5.000     4/15/47        250,000        270,718  
          

 

 

 

Virginia - 1.1%

          

Virginia State Port Authority Port Facility Revenue

     5.000     7/1/41        400,000        437,052 (c) 

Virginia State Port Authority Port Facility Revenue

     5.000     7/1/45        500,000        545,495 (c) 

Virginia State Small Business Financing Authority Revenue, Elizabeth River Crossings OpCo LLC Project

     5.000     7/1/23        1,775,000        1,932,105 (c) 
          

 

 

 

Total Virginia

             2,914,652  
          

 

 

 

Washington - 0.4%

          

Washington State HFC Revenue:

          

Heron’s Key

     5.500     1/1/24        500,000        499,395 (b) 

Heron’s Key

     6.000     7/1/25        675,000        671,011 (b) 
          

 

 

 

Total Washington

             1,170,406  
          

 

 

 

 

See Notes to Schedule of Investments.

 

4


WESTERN ASSET MUNICIPAL DEFINED OPPORTUNITY TRUST INC.

 

Schedule of investments (unaudited) (cont’d)    February 28, 2017

 

SECURITY

   RATE     MATURITY
DATE
     FACE
AMOUNT
     VALUE  

Wisconsin - 4.3%

          

Public Finance Authority, WI, Education Revenue, North Carolina Charter Educational Foundation Project

     5.000     6/15/46      $ 150,000      $ 134,922 (b) 

Wisconsin State HEFA Revenue, Prohealth Care Inc. Obligation Group

     6.625     2/15/39        10,000,000        11,069,100 (e) 
          

 

 

 

Total Wisconsin

             11,204,022  
          

 

 

 

TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS
(Cost - $228,979,295)

             256,682,171  
          

 

 

 
SHORT-TERM INVESTMENTS - 0.1%           
MUNICIPAL BONDS - 0.1%           

California - 0.1%

          

Central Basin Municipal Water District, CA, COP, LOC-U.S. Bank N.A.
(Cost - $100,000)

     0.610     8/1/37        100,000        100,000 (g)(h) 
          

 

 

 
                  SHARES         
MONEY MARKET FUNDS - 0.0%           

State Street Institutional U.S. Government Money Market Fund, Premier Class
(Cost - $75,564)

     0.479        75,564        75,564  
          

 

 

 

TOTAL SHORT-TERM INVESTMENTS
(Cost - $175,564)

             175,564  
          

 

 

 

TOTAL INVESTMENTS - 98.8%
(Cost - $229,154,859#)

             256,857,735  

Other Assets in Excess of Liabilities - 1.2%

             3,201,712  
          

 

 

 

TOTAL NET ASSETS - 100.0%

           $ 260,059,447  
          

 

 

 

 

(a) Variable rate security. Interest rate disclosed is as of the most recent information available.

 

(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) Maturity date shown represents the mandatory tender date.

 

(e) 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.

 

(f) All or a portion of this security is held at the broker as collateral for open futures contracts.

 

(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:

 

AGC    — Assured Guaranty Corporation - Insured Bonds
AGM    — Assured Guaranty Municipal Corporation - Insured Bonds
CAB    — Capital Appreciation Bonds
CDA    — Communities Development Authority
COP    — Certificates of Participation
CSCE    — Charter School Credit Enhancement
DFA    — Development Finance Agency
EDA    — Economic Development Authority
EFA    — Educational Facilities Authority
GO    — General Obligation
GTD    — Guaranteed
HEFA    — Health & Educational Facilities Authority
HFC    — Housing Finance Commission
IDA    — Industrial Development Authority
LOC    — Letter of Credit
MTA    — Metropolitan Transportation Authority
NATL    — National Public Finance Guarantee Corporation - Insured Bonds
PCFA    — Pollution Control Financing Authority
PSF    — Permanent School Fund

This Schedule of Investments is unaudited and is intended to provide information about the Fund’s portfolio holdings 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.

 

5


Notes to Schedule of Investments (unaudited)

 

1. Organization and significant accounting policies

Western Asset Municipal Defined Opportunity Trust Inc. (the “Fund”) was incorporated in Maryland on January 15, 2009 and is registered as a non-diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund’s primary investment objective is to provide high current income exempt from federal income tax and then to liquidate on or about April 30, 2021 and distribute all of the Fund’s net assets to shareholders. As a secondary investment objective, the Fund will seek total return. There can be no assurance the Fund’s investment objectives will be achieved.

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. 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. 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 Atlantic Fund Valuation Committee (the “Valuation Committee”). The Valuation Committee, pursuant to the policie 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.

 

6


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
(LEVEL 1)
     OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2)
     SIGNIFICANT
UNOBSERVABLE
INPUTS

(LEVEL 3)
     TOTAL  

Municipal Bonds†

     —        $ 256,682,171        —        $ 256,682,171  
  

 

 

    

 

 

    

 

 

    

 

 

 

Short-Term Investments†:

           

Municipal Bonds

     —          100,000        —          100,000  

Money Market Funds

   $ 75,564        —          —          75,564  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Short-Term Investments

     75,564        100,000        —          175,564  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Investments

   $ 75,564      $ 256,782,171        —        $ 256,857,735  
  

 

 

    

 

 

    

 

 

    

 

 

 

Other Financial Instruments:

           

Futures Contracts

     38,237        —          —          38,237  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 113,801      $ 256,782,171        —        $ 256,895,972  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

See Schedule of Investments for additional detailed categorizations.

2. Investments

At February 28, 2017, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

 

Gross unrealized appreciation

   $ 29,802,778  

Gross unrealized depreciation

     (2,099,902
  

 

 

 

Net unrealized appreciation

   $ 27,702,876  
  

 

 

 

At February 28, 2017, the Fund had the following open futures contracts:

 

     Number of
Contracts
     Expiration
Date
     Basis
Value
     Market
Value
     Unrealized
Appreciation
 
Contracts to Buy:               

U.S. Treasury Long-Term Bonds

     40        6/17      $ 6,028,013      $ 6,066,250      $ 38,237  

 

7


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 Defined Opportunity Trust Inc.

 

By   /s/    JANE TRUST        
  Jane Trust
  Chief Executive Officer

Date: April 24, 2017

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/    JANE TRUST        
  Jane Trust
  Chief Executive Officer

Date: April 24, 2017

By   /s/    RICHARD F. SENNETT        
  Richard F. Sennett
  Principal Financial Officer

Date: April 24, 2017