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 811-07362
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: (888)777-0102
Date of fiscal year end: November 30
Date of reporting period: February 29, 2016
| ITEM 1. | SCHEDULE OF INVESTMENTS. |
WESTERN ASSET MUNICIPAL PARTNERS FUND INC.
FORM N-Q
FEBRUARY 29, 2016
WESTERN ASSET MUNICIPAL PARTNERS FUND INC.
| Schedule of investments (unaudited) | February 29, 2016 |
| SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT |
VALUE | ||||||||||||
| MUNICIPAL BONDS - 149.2% | ||||||||||||||||
| Alabama - 1.5% |
||||||||||||||||
| Jefferson County, AL, Sewer Revenue: |
||||||||||||||||
| Subordinated Lien Warrants |
6.000 | % | 10/1/42 | $ | 740,000 | $ | 860,635 | |||||||||
| Subordinated Lien Warrants |
6.500 | % | 10/1/53 | 1,300,000 | 1,558,752 | |||||||||||
|
|
|
|||||||||||||||
| Total Alabama |
2,419,387 | |||||||||||||||
|
|
|
|||||||||||||||
| Alaska - 1.5% |
||||||||||||||||
| Valdez, AK, Marine Terminal Revenue, BP Pipelines Inc. Project |
5.000 | % | 1/1/21 | 2,150,000 | 2,428,963 | |||||||||||
|
|
|
|||||||||||||||
| Arizona - 3.5% |
||||||||||||||||
| Glendale, AZ, Transportation Excise Tax Revenue, NATL |
5.000 | % | 7/1/28 | 2,855,000 | 3,019,676 | (a) | ||||||||||
| Navajo Nation, AZ, Revenue |
5.500 | % | 12/1/30 | 275,000 | 308,473 | (b) | ||||||||||
| Salt Verde, AZ, Financial Corp. Senior Gas Revenue |
5.000 | % | 12/1/32 | 2,000,000 | 2,391,680 | |||||||||||
|
|
|
|||||||||||||||
| Total Arizona |
5,719,829 | |||||||||||||||
|
|
|
|||||||||||||||
| California - 21.4% |
||||||||||||||||
| Bay Area Toll Authority, CA, Toll Bridge Revenue, |
1.110 | % | 4/1/24 | 2,500,000 | 2,479,575 | (c)(d) | ||||||||||
| California Health Facilities Financing Authority Revenue, Catholic Healthcare West |
5.250 | % | 3/1/24 | 2,500,000 | 2,506,125 | |||||||||||
| California State PCFA, Water Furnishing Revenue |
5.000 | % | 11/21/45 | 2,500,000 | 2,572,425 | (b) | ||||||||||
| California State PCFA, Water Furnishing Revenue |
5.000 | % | 11/21/45 | 1,000,000 | 1,093,930 | (b)(e) | ||||||||||
| California State, GO, Various Purpose |
5.000 | % | 4/1/43 | 4,000,000 | 4,608,520 | (f) | ||||||||||
| California Statewide CDA Revenue, Insured Health Facility L.A., Jewish Home, CA, Mortgage Insurance, CMI |
5.000 | % | 11/15/28 | 1,500,000 | 1,632,615 | |||||||||||
| Los Angeles County, CA, Public Works Financing Authority, Lease Revenue, Multiple Capital Project II |
5.000 | % | 8/1/30 | 2,500,000 | 2,970,650 | |||||||||||
| Lower Tule River, CA, Irrigation District Revenue, COP |
5.000 | % | 8/1/40 | 1,000,000 | 1,091,540 | |||||||||||
| M-S-R Energy Authority, CA, Gas Revenue |
7.000 | % | 11/1/34 | 2,490,000 | 3,581,691 | |||||||||||
| M-S-R Energy Authority, CA, Gas Revenue |
6.500 | % | 11/1/39 | 3,000,000 | 4,134,540 | |||||||||||
| Rancho Cucamonga, CA, RDA, Successor Agency Tax Allocation, Rancho Redevelopment Project Area, AGM |
5.000 | % | 9/1/30 | 750,000 | 884,520 | |||||||||||
| River Islands, CA, Public Financing Authority Special Tax, Community Facilities District No. 2003-1 |
5.500 | % | 9/1/45 | 500,000 | 541,865 | |||||||||||
| Riverside County, CA, Transportation Commission Sales Tax Revenue, Limited Tax |
5.250 | % | 6/1/39 | 250,000 | 297,477 | |||||||||||
| Riverside County, CA, Transportation Commission Toll Revenue: |
||||||||||||||||
| Senior Lien |
5.750 | % | 6/1/44 | 100,000 | 114,903 | |||||||||||
| Senior Lien |
5.750 | % | 6/1/48 | 200,000 | 229,114 | |||||||||||
| Tulare, CA, Sewer Revenue, AGM |
5.000 | % | 11/15/41 | 2,000,000 | 2,303,480 | |||||||||||
| Turlock, CA, Irrigation District Revenue |
5.000 | % | 1/1/35 | 2,500,000 | 2,796,525 | |||||||||||
| Turlock, CA, Public Financing Authority, Tax Allocation Revenue, AGM |
5.000 | % | 9/1/30 | 1,500,000 | 1,532,535 | |||||||||||
|
|
|
|||||||||||||||
| Total California |
35,372,030 | |||||||||||||||
|
|
|
|||||||||||||||
See Notes to Schedule of Investments.
1
WESTERN ASSET MUNICIPAL PARTNERS FUND INC.
| Schedule of investments (unaudited) (cont’d) | February 29, 2016 |
| SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT |
VALUE | ||||||||||||
| Colorado - 5.8% |
||||||||||||||||
| Colorado Health Facilities Authority Revenue, Sisters of Charity Leavenworth Health System Inc. |
5.250 | % | 1/1/25 | $ | 3,500,000 | $ | 3,972,535 | |||||||||
| Public Authority for Colorado Energy, Natural Gas Purchase Revenue |
5.750 | % | 11/15/18 | 225,000 | 242,851 | |||||||||||
| Public Authority for Colorado Energy, Natural Gas Purchase Revenue |
6.500 | % | 11/15/38 | 4,000,000 | 5,462,440 | |||||||||||
|
|
|
|||||||||||||||
| Total Colorado |
9,677,826 | |||||||||||||||
|
|
|
|||||||||||||||
| Florida - 4.9% |
||||||||||||||||
| Florida State Development Finance Corp., Educational Facilities Revenue, Renaissance Charter School Inc. Project |
6.125 | % | 6/15/46 | 160,000 | 163,560 | (b) | ||||||||||
| Florida State Mid-Bay Bridge Authority Revenue |
5.000 | % | 10/1/40 | 740,000 | 810,715 | |||||||||||
| Miami-Dade County, FL, Expressway Authority Toll System Revenue |
5.000 | % | 7/1/24 | 1,250,000 | 1,534,175 | |||||||||||
| Miami-Dade County, FL, GO, Seaport |
5.000 | % | 10/1/23 | 2,315,000 | 2,785,454 | |||||||||||
| Orlando & Orange County, FL, Expressway Authority Revenue |
5.000 | % | 7/1/30 | 2,000,000 | 2,283,200 | |||||||||||
| Seminole Tribe Florida Special Obligation Revenue |
5.250 | % | 10/1/27 | 500,000 | 521,925 | (b) | ||||||||||
|
|
|
|||||||||||||||
| Total Florida |
8,099,029 | |||||||||||||||
|
|
|
|||||||||||||||
| Illinois - 9.8% |
||||||||||||||||
| Chicago, IL, Metropolitan Water Reclamation District Greater Chicago, GO, Green Bond |
5.000 | % | 12/1/44 | 1,000,000 | 1,138,760 | |||||||||||
| Chicago, IL, O’Hare International Airport Revenue |
5.000 | % | 1/1/35 | 2,200,000 | 2,457,510 | (e) | ||||||||||
| Chicago, IL, Public Building Commission, Building Revenue, Chicago School Reform, NATL |
5.250 | % | 12/1/18 | 1,000,000 | 1,050,440 | |||||||||||
| Chicago, IL, Waterworks Revenue: |
||||||||||||||||
| Second Lien Project |
5.000 | % | 11/1/34 | 800,000 | 872,096 | |||||||||||
| Second Lien Project |
5.000 | % | 11/1/39 | 500,000 | 542,750 | |||||||||||
| Illinois Municipal Electric Agency Power Supply Revenue, NATL |
5.250 | % | 2/1/28 | 4,145,000 | 4,324,893 | (a) | ||||||||||
| Illinois State Health Facilities Authority Revenue, South Suburban Hospital Project |
7.000 | % | 2/15/18 | 170,000 | 184,421 | (g) | ||||||||||
| Illinois State Toll Highway Authority Revenue |
5.000 | % | 12/1/31 | 1,500,000 | 1,788,855 | |||||||||||
| Illinois State, GO |
5.000 | % | 5/1/39 | 1,000,000 | 1,051,210 | |||||||||||
| Illinois State, GO, AGM |
5.500 | % | 5/1/16 | 1,500,000 | 1,511,685 | |||||||||||
| Metropolitan Pier & Exposition Authority, IL, Revenue, CAB-McCormick Place Expansion Project |
0.000 | % | 12/15/52 | 900,000 | 139,662 | |||||||||||
| University of Illinois, COP |
5.000 | % | 3/15/24 | 1,000,000 | 1,212,520 | |||||||||||
|
|
|
|||||||||||||||
| Total Illinois |
16,274,802 | |||||||||||||||
|
|
|
|||||||||||||||
| Indiana - 2.0% |
||||||||||||||||
| Indiana Finance Authority Midwestern Disaster Relief Revenue, Ohio Valley Electric Corp. Project |
5.000 | % | 6/1/39 | 1,000,000 | 1,045,710 | |||||||||||
| Indianapolis, IN, Local Public Improvement Bond Bank Revenue |
5.000 | % | 6/1/27 | 2,000,000 | 2,329,760 | |||||||||||
|
|
|
|||||||||||||||
| Total Indiana |
3,375,470 | |||||||||||||||
|
|
|
|||||||||||||||
| Iowa - 1.9% |
||||||||||||||||
| Iowa State Finance Authority Midwestern Disaster Area Revenue: |
||||||||||||||||
| Iowa Fertilizer Co. Project |
5.000 | % | 12/1/19 | 1,110,000 | 1,155,621 | |||||||||||
| Iowa Fertilizer Co. Project |
5.250 | % | 12/1/25 | 1,790,000 | 1,940,127 | |||||||||||
|
|
|
|||||||||||||||
| Total Iowa |
3,095,748 | |||||||||||||||
|
|
|
|||||||||||||||
| Louisiana - 1.5% |
||||||||||||||||
| Shreveport, LA, Water & Sewer Revenue, AGM |
5.000 | % | 12/1/34 | 2,080,000 | 2,411,989 | |||||||||||
|
|
|
|||||||||||||||
See Notes to Schedule of Investments.
2
WESTERN ASSET MUNICIPAL PARTNERS FUND INC.
| Schedule of investments (unaudited) (cont’d) | February 29, 2016 |
| SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT |
VALUE | ||||||||||||
| Maryland - 1.3% |
||||||||||||||||
| Maryland State EDC, EDR, Transportation Facilities Project |
5.750 | % | 6/1/35 | $ | 1,000,000 | $ | 1,097,070 | |||||||||
| Maryland State Health & Higher EFA Revenue, Suburban Hospital |
5.500 | % | 7/1/16 | 1,015,000 | 1,019,182 | |||||||||||
|
|
|
|||||||||||||||
| Total Maryland |
2,116,252 | |||||||||||||||
|
|
|
|||||||||||||||
| Massachusetts - 2.8% |
||||||||||||||||
| Massachusetts State DFA Revenue: |
||||||||||||||||
| International Charter School |
5.000 | % | 4/15/40 | 1,875,000 | 2,052,975 | |||||||||||
| Partners Healthcare System |
5.000 | % | 7/1/47 | 1,000,000 | 1,149,600 | |||||||||||
| Massachusetts State Water Pollution Abatement Trust Revenue, MWRA Program, Unrefunded Balance |
5.750 | % | 8/1/29 | 355,000 | 356,459 | |||||||||||
| Massachusetts State Water Resources Authority Revenue: |
||||||||||||||||
| General, NATL |
5.000 | % | 8/1/34 | 940,000 | 992,273 | |||||||||||
| General, NATL |
5.000 | % | 8/1/34 | 60,000 | 63,757 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Total Massachusetts |
4,615,064 | |||||||||||||||
|
|
|
|||||||||||||||
| Michigan - 6.0% |
||||||||||||||||
| Detroit, MI, GO, District State Aid |
5.250 | % | 11/1/24 | 3,500,000 | 3,883,460 | |||||||||||
| Detroit, MI, Water & Sewerage Department, Disposal System Revenue, Senior Lien |
5.250 | % | 7/1/39 | 405,000 | 447,557 | |||||||||||
| Michigan State Building Authority Revenue, Facilities Program |
5.250 | % | 10/15/47 | 250,000 | 284,030 | |||||||||||
| Michigan State Finance Authority Limited Obligation Revenue, Higher Education, Thomas M Cooley Law School Project |
6.750 | % | 7/1/44 | 610,000 | 650,272 | (b) | ||||||||||
| Michigan State Finance Authority Revenue: |
||||||||||||||||
| Local Government Loan Program, Detroit Water & Sewer Department |
5.000 | % | 7/1/35 | 340,000 | 384,027 | |||||||||||
| Senior Lien Detroit Water & Sewer |
5.000 | % | 7/1/33 | 370,000 | 420,942 | |||||||||||
| Senior Lien Detroit Water & Sewer |
5.000 | % | 7/1/44 | 380,000 | 410,294 | |||||||||||
| Michigan State Hospital Finance Authority Revenue, McLaren Health Care Corp. |
5.750 | % | 5/15/38 | 2,000,000 | 2,215,440 | (a) | ||||||||||
| Wayne County, MI, Airport Authority Revenue, Detroit Metropolitan Airport |
5.000 | % | 12/1/18 | 1,170,000 | 1,278,681 | (e) | ||||||||||
|
|
|
|||||||||||||||
| Total Michigan |
9,974,703 | |||||||||||||||
|
|
|
|||||||||||||||
| Missouri - 1.5% |
||||||||||||||||
| Boone County, MO, Hospital Revenue, Boone Hospital Center |
5.375 | % | 8/1/38 | 2,000,000 | 2,148,760 | |||||||||||
| Kansas City, MO, IDA, Senior Living Facilities Revenue, Kansas City United Methodist Retirement Home Inc. |
6.000 | % | 11/15/51 | 300,000 | 303,486 | (b) | ||||||||||
|
|
|
|||||||||||||||
| Total Missouri |
2,452,246 | |||||||||||||||
|
|
|
|||||||||||||||
| Nevada - 1.2% |
||||||||||||||||
| Clark County, NV, GO, AMBAC |
5.000 | % | 11/1/21 | 2,000,000 | 2,058,240 | |||||||||||
|
|
|
|||||||||||||||
| New Jersey - 9.4% |
||||||||||||||||
| Casino Reinvestment Development Authority, NJ, Luxury Tax Revenue, AGM |
5.000 | % | 11/1/27 | 240,000 | 267,257 | |||||||||||
| New Jersey State EDA Revenue |
5.000 | % | 6/15/29 | 500,000 | 530,075 | |||||||||||
| New Jersey State EDA Revenue: |
||||||||||||||||
| Continental Airlines Inc. Project |
5.250 | % | 9/15/29 | 2,000,000 | 2,192,520 | (e) | ||||||||||
| Private Activity-The Goethals Bridge Replacement Project |
5.375 | % | 1/1/43 | 1,000,000 | 1,112,160 | (e) | ||||||||||
See Notes to Schedule of Investments.
3
WESTERN ASSET MUNICIPAL PARTNERS FUND INC.
| Schedule of investments (unaudited) (cont’d) | February 29, 2016 |
| SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT |
VALUE | ||||||||||||
| New Jersey - (continued) |
||||||||||||||||
| Provident Group - Rowan Properties LLC, Rowan University Housing Project |
5.000 | % | 1/1/48 | $ | 500,000 | $ | 538,010 | |||||||||
| School Facilities Construction, SIFMA |
1.610 | % | 3/1/28 | 2,500,000 | 2,220,025 | (c) | ||||||||||
| New Jersey State Transportation Trust Fund Authority Revenue, Transportation Program, State Appropriations |
5.000 | % | 6/15/38 | 6,000,000 | 6,272,400 | |||||||||||
| New Jersey State Turnpike Authority Revenue |
0.690 | % | 1/1/18 | 2,500,000 | 2,496,350 | (c)(d) | ||||||||||
|
|
|
|||||||||||||||
| Total New Jersey |
15,628,797 | |||||||||||||||
|
|
|
|||||||||||||||
| New York - 26.3% |
||||||||||||||||
| Brooklyn Arena, NY, Local Development Corp. Revenue, Barclays Center Project |
6.250 | % | 7/15/40 | 1,000,000 | 1,154,530 | |||||||||||
| Liberty, NY, Development Corp. Revenue, Goldman Sachs Headquarters |
5.250 | % | 10/1/35 | 3,045,000 | 3,712,616 | |||||||||||
| MTA, NY, Revenue |
5.000 | % | 11/15/25 | 1,000,000 | 1,189,300 | |||||||||||
| MTA, NY, Revenue |
5.250 | % | 11/15/40 | 1,000,000 | 1,145,550 | |||||||||||
| Nassau County, NY, Industrial Development Agency, Continuing Care Retirement Community Revenue: |
||||||||||||||||
| Amsterdam At Harborside |
2.000 | % | 1/1/49 | 97,436 | 14,615 | |||||||||||
| Amsterdam At Harborside |
6.700 | % | 1/1/49 | 270,000 | 270,081 | |||||||||||
| 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 | 5,601,750 | |||||||||||
| New York State Dormitory Authority Revenue: |
||||||||||||||||
| Court Facilities Lease, NYC Issue, Non-State Supported Debt, AMBAC |
5.500 | % | 5/15/30 | 3,365,000 | 4,428,004 | |||||||||||
| Non State Supported Debt, New School |
5.000 | % | 7/1/35 | 2,000,000 | 2,328,580 | |||||||||||
| Non-State Supported Debt, Columbia University |
5.000 | % | 7/1/38 | 2,000,000 | 2,182,140 | |||||||||||
| New York State Liberty Development Corp., Liberty Revenue: |
||||||||||||||||
| 3 World Trade Center LLC Project |
5.000 | % | 11/15/44 | 490,000 | 520,493 | (b) | ||||||||||
| 4 World Trade Center LLC Project |
5.750 | % | 11/15/51 | 2,000,000 | 2,363,040 | |||||||||||
| Second Priority, Bank of America Tower |
5.125 | % | 1/15/44 | 2,500,000 | 2,803,125 | |||||||||||
| New York State Thruway Authority, Second General Highway & Bridge Trust Fund Revenue, AMBAC |
5.000 | % | 4/1/26 | 4,700,000 | 4,928,608 | (a) | ||||||||||
| New York State Urban Development Corp. Revenue, State Personal Income Tax |
5.000 | % | 3/15/26 | 5,000,000 | 5,225,750 | |||||||||||
| Port Authority of New York & New Jersey Revenue |
5.000 | % | 1/15/41 | 5,000,000 | 5,704,650 | |||||||||||
|
|
|
|||||||||||||||
| Total New York |
43,572,832 | |||||||||||||||
|
|
|
|||||||||||||||
| North Carolina - 4.6% |
||||||||||||||||
| Charlotte-Mecklenburg Hospital Authority, NC, Health Care System Revenue, Carolinas Healthcare System |
5.000 | % | 1/15/31 | 5,000,000 | 5,784,350 | |||||||||||
| North Carolina Department of Transportation Private Activity Revenue, I-77 Hot Lanes Project |
5.000 | % | 6/30/54 | 500,000 | 531,765 | (e) | ||||||||||
| North Carolina Medical Care Commission Health Care Facilities Revenue, Novant Health Obligation Group |
5.000 | % | 11/1/39 | 1,200,000 | 1,223,172 | |||||||||||
|
|
|
|||||||||||||||
| Total North Carolina |
7,539,287 | |||||||||||||||
|
|
|
|||||||||||||||
| Ohio - 3.5% |
||||||||||||||||
| Northeast, OH, Regional Sewer District Revenue, Waste Water Revenue Improvement |
5.000 | % | 11/15/43 | 4,040,000 | 4,627,093 | |||||||||||
| Ohio State Air Quality Development Authority Revenue, FirstEnergy Generation Corp. |
5.700 | % | 8/1/20 | 1,000,000 | 1,119,970 | |||||||||||
|
|
|
|||||||||||||||
| Total Ohio |
5,747,063 | |||||||||||||||
|
|
|
|||||||||||||||
See Notes to Schedule of Investments.
4
WESTERN ASSET MUNICIPAL PARTNERS FUND INC.
| Schedule of investments (unaudited) (cont’d) | February 29, 2016 |
| SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT |
VALUE | ||||||||||||
| Oklahoma - 1.4% |
||||||||||||||||
| Grand River Dam Authority, OK, Revenue |
5.250 | % | 6/1/40 | $ | 2,000,000 | $ | 2,277,180 | |||||||||
|
|
|
|||||||||||||||
| Oregon - 0.3% |
||||||||||||||||
| Multnomah County, OR, School District # 7 Reynolds, GO, Deferred Interest, School Board Guaranty |
0.000 | % | 6/15/31 | 1,000,000 | 576,740 | |||||||||||
|
|
|
|||||||||||||||
| Pennsylvania - 8.3% |
||||||||||||||||
| Central Bradford, PA, Progress Authority Revenue, Guthrie Healthcare Systems |
5.000 | % | 12/1/26 | 5,130,000 | 5,979,271 | |||||||||||
| Cumberland County, PA, Municipal Authority Revenue, Diakon Lutheran Social Ministries Project |
5.000 | % | 1/1/29 | 750,000 | 852,458 | |||||||||||
| East Hempfield Township, PA, IDA Revenue, Student Services Inc.-Student Housing Project-Millersville University |
5.000 | % | 7/1/47 | 250,000 | 264,695 | |||||||||||
| Pennsylvania Economic Development Financing Authority, Sewer Sludge Disposal Revenue, Philadelphia Biosolids Facility |
6.250 | % | 1/1/32 | 500,000 | 550,525 | |||||||||||
| Philadelphia, PA, Airport Revenue |
5.000 | % | 6/15/35 | 2,000,000 | 2,224,200 | (e) | ||||||||||
| Philadelphia, PA, Gas Works Revenue, 7th General Ordinance, AMBAC |
5.000 | % | 10/1/17 | 2,685,000 | 2,850,503 | |||||||||||
| Philadelphia, PA, School District, GO |
5.000 | % | 9/1/32 | 1,000,000 | 1,068,570 | |||||||||||
|
|
|
|||||||||||||||
| Total Pennsylvania |
13,790,222 | |||||||||||||||
|
|
|
|||||||||||||||
| Tennessee - 5.2% |
||||||||||||||||
| Clarksville, TN, Natural Gas Acquisition Corp., Gas Revenue |
5.000 | % | 12/15/20 | 2,030,000 | 2,319,377 | |||||||||||
| Tennessee Energy Acquisition Corp., Gas Revenue |
5.000 | % | 2/1/20 | 3,555,000 | 4,010,004 | |||||||||||
| Tennessee Energy Acquisition Corp., Gas Revenue |
5.000 | % | 2/1/21 | 2,000,000 | 2,302,540 | |||||||||||
|
|
|
|||||||||||||||
| Total Tennessee |
8,631,921 | |||||||||||||||
|
|
|
|||||||||||||||
| Texas - 15.0% |
||||||||||||||||
| Austin, TX, Water & Wastewater System Revenue |
5.000 | % | 11/15/26 | 2,500,000 | 2,873,125 | |||||||||||
| Austin, TX, Water & Wastewater System Revenue |
5.125 | % | 11/15/28 | 2,210,000 | 2,541,168 | |||||||||||
| Beaumont, TX, ISD, GO, School Building, PSF-GTD |
5.000 | % | 2/15/33 | 1,100,000 | 1,141,811 | |||||||||||
| Corpus Christi, TX, Utility System Revenue, Junior Lien |
5.000 | % | 7/15/31 | 2,905,000 | 3,412,562 | |||||||||||
| Grand Parkway Transportation Corp., TX, System Toll Revenue, Convertible CAB, Step Bond |
0.000 | % | 10/1/36 | 2,000,000 | 1,667,640 | (c) | ||||||||||
| Harris County, TX, Metropolitan Transit Authority Sales & Use Tax Revenue |
5.000 | % | 11/1/36 | 3,125,000 | 3,649,875 | |||||||||||
| Houston, TX, Airport Systems Revenue, United Airlines Inc. |
5.000 | % | 7/15/30 | 1,000,000 | 1,079,060 | (e) | ||||||||||
| Kemp, TX, ISD, GO, School Building, PSF-GTD |
5.250 | % | 2/15/33 | 2,575,000 | 2,690,257 | (a) | ||||||||||
| Kemp, TX, ISD, GO, School Building, PSF-GTD |
5.250 | % | 2/15/33 | 875,000 | 915,023 | (a) | ||||||||||
| New Hope Cultural Education Facilities Finance Corp., TX, Student Housing Revenue, Collegiate Housing-Tarleton State University Project |
5.000 | % | 4/1/35 | 800,000 | 881,496 | |||||||||||
| North Texas Tollway Authority Revenue |
5.000 | % | 1/1/40 | 600,000 | 679,104 | |||||||||||
| North Texas Tollway Authority Revenue |
5.000 | % | 1/1/45 | 600,000 | 674,604 | |||||||||||
| North Texas Tollway Authority Revenue: |
||||||||||||||||
| System-First Tier |
5.750 | % | 1/1/40 | 1,250,000 | 1,365,387 | (a) | ||||||||||
| System-First Tier |
5.750 | % | 1/1/40 | 1,250,000 | 1,348,700 | |||||||||||
|
|
|
|||||||||||||||
| Total Texas |
24,919,812 | |||||||||||||||
|
|
|
|||||||||||||||
See Notes to Schedule of Investments.
5
WESTERN ASSET MUNICIPAL PARTNERS FUND INC.
| Schedule of investments (unaudited) (cont’d) | February 29, 2016 |
| SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT |
VALUE | ||||||||||||
| Washington - 3.9% |
||||||||||||||||
| Port of Seattle, WA, Revenue |
5.000 | % | 8/1/25 | $ | 2,395,000 | $ | 2,852,253 | |||||||||
| Washington State Health Care Facilities Authority Revenue, PeaceHealth |
5.000 | % | 11/1/28 | 3,000,000 | 3,360,090 | |||||||||||
| Washington State HFC Revenue: |
||||||||||||||||
| Heron’s Key |
6.500 | % | 7/1/30 | 100,000 | 103,018 | (b) | ||||||||||
| Heron’s Key |
6.750 | % | 7/1/35 | 100,000 | 103,197 | (b) | ||||||||||
|
|
|
|||||||||||||||
| Total Washington |
6,418,558 | |||||||||||||||
|
|
|
|||||||||||||||
| Wisconsin - 4.7% |
||||||||||||||||
| Public Finance Authority, WI, Airport Facilities Revenue, Transportation Infrastructure Properties LLC |
5.000 | % | 7/1/42 | 4,000,000 | 4,200,920 | (e) | ||||||||||
| Wisconsin State HEFA Revenue, SSM Health Care Corp. |
5.000 | % | 6/1/25 | 3,110,000 | 3,528,482 | |||||||||||
|
|
|
|||||||||||||||
| Total Wisconsin |
7,729,402 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS |
246,923,392 | |||||||||||||||
|
|
|
|||||||||||||||
| SHORT-TERM INVESTMENTS - 0.1% | ||||||||||||||||
| MUNICIPAL BONDS - 0.1% |
||||||||||||||||
| New York - 0.1% |
||||||||||||||||
| New York City, NY, TFA Revenue, New York City Recovery Project Revenue, Subordinated, LIQ-Dexia Credit Local (Cost - $200,000) |
0.210 | % | 11/1/22 | 200,000 | 200,000 | (h)(i) | ||||||||||
|
|
|
|||||||||||||||
| SHARES | ||||||||||||||||
| MONEY MARKET FUNDS - 0.0% |
||||||||||||||||
| State Street Institutional U.S. Government Money Market Fund, |
0.276 | % | 34,645 | 34,645 | ||||||||||||
|
|
|
|||||||||||||||
| TOTAL SHORT-TERM INVESTMENTS |
234,645 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL INVESTMENTS - 149.3% |
247,158,037 | |||||||||||||||
|
|
|
|||||||||||||||
| Auction Rate Cumulative Preferred Stock, at Liquidation Value - (11.2)% |
(18,500,000 | ) | ||||||||||||||
| Variable Rate Demand Preferred Stock, at Liquidation Value - (40.2)% |
(66,500,000 | ) | ||||||||||||||
| Other Assets in Excess of Liabilities - 2.1% |
3,393,847 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL NET ASSETS - 100.0% |
$ | 165,551,884 | ||||||||||||||
|
|
|
|||||||||||||||
| (a) | 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. |
| (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) | Variable rate security. Interest rate disclosed is as of the most recent information available. |
| (d) | Maturity date shown represents the mandatory tender date. |
| (e) | Income from this issue is considered a preference item for purposes of calculating the alternative minimum tax (“AMT”). |
| (f) | All or a portion of this security is held at the broker as collateral for open futures contracts. |
| (g) | 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. |
| (h) | 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. |
| (i) | 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. |
See Notes to Schedule of Investments.
6
WESTERN ASSET MUNICIPAL PARTNERS FUND INC.
| Schedule of investments (unaudited) (cont’d) | February 29, 2016 |
Abbreviations used in this schedule:
| AGM | — Assured Guaranty Municipal Corporation - Insured Bonds | |
| AMBAC | — American Municipal Bond Assurance Corporation - Insured Bonds | |
| CAB | — Capital Appreciation Bonds | |
| CDA | — Communities Development Authority | |
| CMI | — California Mortgage Insurance Program - Insured Bonds | |
| COP | — Certificates of Participation | |
| DFA | — Development Finance Agency | |
| EDA | — Economic Development Authority | |
| EDC | — Economic Development Corporation | |
| EDR | — Economic Development Revenue | |
| EFA | — Educational Facilities Authority | |
| GO | — General Obligation | |
| GTD | — Guaranteed | |
| HEFA | — Health & Educational Facilities Authority | |
| HFC | — Housing Finance Commission | |
| IDA | — Industrial Development Authority | |
| ISD | — Independent School District | |
| LIQ | — Liquidity Facility | |
| MTA | — Metropolitan Transportation Authority | |
| MWRA | — Massachusetts Water Resources Authority | |
| NATL | — National Public Finance Guarantee Corporation - Insured Bonds | |
| PCFA | — Pollution Control Financing Authority | |
| PSF | — Permanent School Fund | |
| RDA | — Redevelopment Agency | |
| SIFMA | — Securities Industry and Financial Markets Association | |
| TFA | — Transitional Finance Authority |
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.
7
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. 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 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.
8
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 carried at fair value:
| ASSETS |
||||||||||||||||
| DESCRIPTION |
QUOTED PRICES (LEVEL 1) |
OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) |
TOTAL | ||||||||||||
| Municipal Bonds† |
— | $ | 246,923,392 | — | $ | 246,923,392 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Short-Term Investments†: |
||||||||||||||||
| Municipal Bonds |
— | $ | 200,000 | — | $ | 200,000 | ||||||||||
| Money Market Funds |
$ | 34,645 | — | — | 34,645 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Short-Term Investments |
$ | 34,645 | $ | 200,000 | $ | 234,645 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total investments |
$ | 34,645 | $ | 247,123,392 | — | $ | 247,158,037 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Other Financial Instruments: |
||||||||||||||||
| Futures Contracts |
$ | 5,257 | — | — | $ | 5,257 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
$ | 39,902 | $ | 247,123,392 | — | $ | 247,163,294 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| † | See Schedule of Investments for additional detailed categorizations. |
2. Investments
At February 29, 2016, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:
| Gross unrealized appreciation |
$ | 22,350,101 | ||
| Gross unrealized depreciation |
(562,945 | ) | ||
|
|
|
|||
| Net unrealized appreciation |
$ | 21,787,156 | ||
|
|
|
At February 29, 2016, the Fund had the following open futures contracts:
| Number of Contracts |
Expiration Date |
Basis Value |
Market Value |
Unrealized Appreciation |
||||||||||||||||
| Contracts to Sell: | ||||||||||||||||||||
| U.S. Treasury Long-Term Bonds |
17 | 6/16 | $ | 2,802,288 | $ | 2,797,031 | $ | 5,257 | ||||||||||||
9
| 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/ JANE TRUST | |
| Jane Trust | ||
| Chief Executive Officer | ||
| Date: |
April 20, 2016 | |
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 20, 2016 | |
| By | /s/ RICHARD F. SENNETT | |
| Richard F. Sennett | ||
| Principal Financial Officer | ||
| Date: |
April 20, 2016 | |