Western Asset High Income Opportunity Fund Inc

Frequently Asked Questions About HIO

What does HIO invest in?

Western Asset High Income Opportunity Fund Inc. is a closed ended fixed-income mutual fund launched and managed by Legg Mason Partners Fund Advisor, LLC. It is co-managed by Western Asset Management Company and Western Asset Management Company Limited. The fund invests in the fixed income markets of the United States. It seeks to invest in high-yielding corporate debt obligations. The fund seeks to maintain an average duration of around four years with an average credit quality of B. It benchmarks the performance of its portfolio against the Barclays Capital U.S. Corporate High Yield 2% Issuer Cap Index. The fund was formerly known as High Income Opportunity Fund. Western Asset High Income Opportunity Fund Inc. was formed on November 16, 1993 and is domiciled in the United States.

What is the expense ratio of HIO?

Western Asset High Income Opportunity Fund Inc (HIO) charges an expense ratio of 0.93%. This is the annual fee deducted from fund assets to cover management and operations.

What is HIO's dividend yield?

HIO's trailing-twelve-month yield is 12.33%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of HIO?

Effective duration measures HIO's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. HIO's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of HIO?

HIO's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of HIO?

Yield to maturity (YTM) is the total return you'd earn from HIO if every bond in the portfolio is held to maturity at the current price. HIO's YTM is published on the fund's factsheet on the issuer's website — it differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.