Western Asset Municipal High Income Fund

Frequently Asked Questions About MHF

What does MHF invest in?

Western Asset Municipal High Income 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. The fund invests in the fixed income markets of the United States. It invests primarily in intermediate and long-term municipal debt securities issued by state and local governments including U.S. territories and possessions, political subdivisions, agencies and public authorities. The fund seeks to invest in investment grade debt securities rated in one of the four highest rating categories by a nationally recognized statistical rating organization to create its portfolio. It benchmarks the performance of its portfolio against the Lehman Brothers Municipal Bond Index. The fund was formerly known as Municipal High Income Fund Inc. Western Asset Municipal High Income Fund Inc. was formed on November 28, 1988 and is domiciled in the United States.

What is the expense ratio of MHF?

Western Asset Municipal High Income Fund (MHF) charges an expense ratio of 0.84%. This is the annual fee deducted from fund assets to cover management and operations.

What is MHF's dividend yield?

MHF's trailing-twelve-month yield is 6.25%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of MHF?

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

What is the credit quality of MHF?

MHF'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 MHF?

Yield to maturity (YTM) is the total return you'd earn from MHF if every bond in the portfolio is held to maturity at the current price. MHF'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.