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Schedule of Investments (unaudited)
March 31, 2026
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 Western Asset Diversified Income Fund

(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
Corporate Bonds & Notes — 72.4%
Communication Services — 13.4%
Diversified Telecommunication Services — 2.2%
Altice Financing SA, Senior Secured Notes
5.000%
1/15/28
5,890,000
 $4,142,332
(a)
Altice Financing SA, Senior Secured Notes
5.750%
8/15/29
940,000
659,138
(a)(b)
Altice France Lux 3/Altice Holdings 1, Senior Notes
10.000%
1/15/33
1,200,000
1,091,985
(a)(b)
Altice France SA, Senior Secured Notes
9.500%
11/1/29
1,316,349
1,331,107
(a)(b)
Altice France SA, Senior Secured Notes
6.500%
4/15/32
762,196
722,862
(a)(b)
Altice France SA, Senior Secured Notes
6.875%
7/15/32
762,196
722,892
(a)(b)
Cogent Communications Group LLC/Cogent Finance Inc., Senior
Notes
7.000%
6/15/27
2,530,000
2,504,327
(a)(b)
Level 3 Financing Inc., Senior Notes
8.500%
1/15/36
2,840,000
2,965,987
(a)(b)
WULF Compute LLC, Senior Secured Notes
7.750%
10/15/30
1,710,000
1,808,009
(a)(b)
Total Diversified Telecommunication Services
15,948,639
Entertainment — 1.0%
Allen Media LLC/Allen Media Co-Issuer Inc., Senior Notes
10.500%
2/15/28
7,160,000
2,935,672
(a)
AMC Entertainment Holdings Inc., Senior Secured Notes
7.500%
2/15/29
4,780,000
3,405,520
(a)(b)
Discovery Global Holdings Inc., Senior Notes
5.050%
3/15/42
800,000
529,044
OAK-Eagle Acquireco Inc., Senior Notes
8.750%
7/1/34
750,000
785,660
(a)(c)
Total Entertainment
7,655,896
Media — 9.1%
AMC Networks Inc., Senior Secured Notes
10.500%
7/15/32
3,843,000
3,796,650
(a)(b)
CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes
4.750%
2/1/32
5,000,000
4,524,810
(a)(b)
CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes
7.375%
2/1/36
2,910,000
2,900,518
(a)(b)
Charter Communications Operating LLC/Charter Communications
Operating Capital Corp., Senior Secured Notes
6.834%
10/23/55
5,000,000
4,712,209
(b)
Clear Channel Outdoor Holdings Inc., Senior Notes
7.500%
6/1/29
3,590,000
3,607,214
(a)(b)
DirecTV Financing LLC/DirecTV Financing Co-Obligor Inc., Senior
Secured Notes
10.000%
2/15/31
7,230,000
7,386,307
(a)(b)
Discovery Communications LLC, Senior Notes
5.000%
9/20/37
5,000,000
3,621,325
(b)
DISH DBS Corp., Senior Secured Notes
5.250%
12/1/26
4,500,000
4,463,993
(a)(b)
DISH Network Corp., Senior Secured Notes
11.750%
11/15/27
1,000,000
1,030,790
(a)(b)
EchoStar Corp., Senior Secured Notes
10.750%
11/30/29
6,198,500
6,699,746
(b)
EchoStar Corp., Senior Secured Notes (6.750% Cash or 6.750%
PIK)
6.750%
11/30/30
3,183,257
3,218,298
(b)(d)
Getty Images Inc., Senior Secured Notes
11.250%
2/21/30
2,500,000
2,253,862
(a)(b)
Getty Images Inc., Senior Secured Notes
10.500%
11/15/30
1,820,000
1,633,959
(a)(b)
Gray Media Inc., Secured Notes
9.625%
7/15/32
2,450,000
2,452,123
(a)(b)
Grupo Televisa SAB, Senior Notes
5.000%
5/13/45
1,910,000
1,187,846
iHeartCommunications Inc., Senior Secured Notes
9.125%
5/1/29
1,900,000
1,727,300
(a)(b)
Mcclatchy Media Co. LLC, Senior Secured Notes (11.000% Cash
or 12.500% PIK)
11.000%
12/1/31
8,253,622
9,336,910
(a)(b)(d)
Versant Media Group Inc., Senior Secured Notes
7.250%
1/30/31
1,070,000
1,095,916
(a)(b)
VZ Secured Financing BV, Senior Secured Notes
7.500%
1/15/33
790,000
745,364
(a)(b)
Total Media
66,395,140
Wireless Telecommunication Services — 1.1%
CSC Holdings LLC, Senior Notes
7.500%
4/1/28
5,000,000
2,757,195
(a)(b)
See Notes to Schedule of Investments.

1
Western Asset Diversified Income Fund 2026 Quarterly Report

Schedule of Investments (unaudited) (cont’d)
March 31, 2026
 Western Asset Diversified Income Fund
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
Wireless Telecommunication Services — continued
CSC Holdings LLC, Senior Notes
11.750%
1/31/29
7,780,000
 $5,630,931
(a)(b)
Total Wireless Telecommunication Services
8,388,126
 
Total Communication Services
98,387,801
Consumer Discretionary — 11.8%
Automobile Components — 2.9%
American Axle & Manufacturing Inc., Senior Notes
7.750%
10/15/33
5,810,000
5,659,597
(a)(b)
Carbon Revolution Ltd., Senior Secured Notes
8.500%
5/15/27
3,350,252
3,320,937
(a)
JB Poindexter & Co. Inc., Senior Notes
8.750%
12/15/31
2,485,000
2,521,828
(a)(b)
ZF North America Capital Inc., Senior Notes
6.875%
4/14/28
2,000,000
2,029,816
(a)(b)
ZF North America Capital Inc., Senior Notes
6.875%
4/23/32
8,455,000
8,040,984
(a)(b)
Total Automobile Components
21,573,162
Automobiles — 1.8%
Aston Martin Capital Holdings Ltd., Senior Secured Notes
10.000%
3/31/29
2,000,000
1,506,710
(a)(b)
Ford Motor Co., Senior Notes
6.100%
8/19/32
1,000,000
1,008,812
(b)
PM General Purchaser LLC, Senior Secured Notes
9.500%
10/1/28
11,000,000
10,431,960
(a)(b)
Total Automobiles
12,947,482
Broadline Retail — 0.4%
QVC Inc., Senior Secured Notes
4.375%
9/1/28
6,670,000
2,901,450
Hotels, Restaurants & Leisure — 2.3%
Full House Resorts Inc., Senior Secured Notes
8.250%
2/15/28
7,059,000
6,441,337
(a)(b)
Kingpin Intermediate Holdings LLC, Senior Secured Notes
7.250%
10/15/32
4,000,000
3,544,300
(a)(b)
Pinnacle Bidco PLC, Senior Secured Notes
10.000%
10/11/28
2,500,000
GBP
3,435,843
(a)(b)
Six Flags Entertainment Corp./Canada’s Wonderland Co./
Millennium Operations LLC, Senior Notes
8.625%
1/15/32
830,000
831,908
(a)(b)
Wynn Macau Ltd., Senior Notes
5.500%
10/1/27
3,000,000
2,972,533
(a)
Total Hotels, Restaurants & Leisure
17,225,921
Household Durables — 0.8%
Newell Brands Inc., Senior Notes
8.500%
6/1/28
2,500,000
2,581,875
(a)(b)
Newell Brands Inc., Senior Notes
7.500%
4/1/46
4,500,000
3,616,117
(b)
Total Household Durables
6,197,992
Specialty Retail — 3.6%
Bath & Body Works Inc., Senior Notes
6.750%
7/1/36
3,250,000
3,120,264
(b)
Bath & Body Works Inc., Senior Notes
7.600%
7/15/37
4,275,000
4,166,198
(b)
Gee Automotive Holdings LLC, Senior Notes
7.250%
3/1/31
1,870,000
1,877,035
(a)(b)
Global Auto Holdings Ltd./AAG FH UK Ltd., Senior Notes
11.500%
8/15/29
8,500,000
8,464,028
(a)(b)
Michaels Cos. Inc., Secured Notes
11.000%
3/15/34
4,060,000
3,785,269
(a)(b)
Petco Health & Wellness Co. Inc., Senior Secured Notes
8.250%
2/1/31
1,930,000
1,928,677
(a)(b)
Staples Inc., Secured Notes
12.750%
1/15/30
1,315,228
890,068
(a)
Upbound Group Inc., Senior Notes
6.375%
2/15/29
2,000,000
1,939,937
(a)(b)
Total Specialty Retail
26,171,476
 
Total Consumer Discretionary
87,017,483
Consumer Staples — 0.8%
Consumer Staples Distribution & Retail — 0.1%
Boots Group Finco LP, Senior Secured Notes
7.375%
8/31/32
640,000
GBP
845,568
(a)
Food Products — 0.4%
TKC Holdings Inc., Senior Secured Notes
8.500%
8/15/30
2,900,000
2,926,231
(a)(b)
See Notes to Schedule of Investments.

2
Western Asset Diversified Income Fund 2026 Quarterly Report

 Western Asset Diversified Income Fund
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Tobacco — 0.3%
Turning Point Brands Inc., Senior Secured Notes
7.625%
3/15/32
2,000,000
 $2,051,800
(a)(b)
 
Total Consumer Staples
5,823,599
Energy — 12.2%
Energy Equipment & Services — 1.0%
Borr IHC Ltd./Borr Finance LLC, Senior Secured Notes
10.000%
11/15/28
3,329,269
3,416,849
(a)(b)
Nabors Industries Inc., Senior Notes
8.875%
8/15/31
3,770,000
3,929,893
(a)(b)
Total Energy Equipment & Services
7,346,742
Oil, Gas & Consumable Fuels — 11.2%
Blue Racer Midstream LLC/Blue Racer Finance Corp., Senior
Notes
7.250%
7/15/32
1,000,000
1,039,448
(a)(b)
Crescent Energy Finance LLC, Senior Notes
7.625%
4/1/32
3,000,000
3,046,137
(a)
Crescent Energy Finance LLC, Senior Notes
8.375%
1/15/34
3,790,000
3,965,363
(a)(b)
Energy Transfer LP, Junior Subordinated Notes (6.625% to
2/15/28 then 3 mo. Term SOFR + 4.417%)
6.625%
2/15/28
6,645,000
6,650,934
(b)(e)(f)
EQT Corp., Senior Notes
6.500%
7/15/48
3,000,000
3,015,765
Granite Ridge Resources Inc., Senior Notes
8.875%
11/5/29
6,790,000
6,531,131
(a)
New Generation Gas Gathering LLC, Senior Secured Notes (3 mo.
Term SOFR + 5.750%)
9.410%
9/30/29
4,474,324
4,653,374
(a)(f)(g)(h)
Northern Oil & Gas Inc., Senior Notes
7.875%
10/15/33
2,500,000
2,588,270
(a)(b)
Occidental Petroleum Corp., Senior Notes
7.500%
11/1/96
8,610,000
9,214,172
PBF Holding Co. LLC/PBF Finance Corp., Senior Notes
6.000%
2/15/28
2,000,000
1,992,125
(b)
Permian Resources Operating LLC, Senior Notes
9.875%
7/15/31
1,294,000
1,374,162
(a)(b)
Plains All American Pipeline LP, Junior Subordinated Notes (3 mo.
Term SOFR + 4.372%)
8.024%
4/30/26
7,000,000
6,987,189
(e)(f)
Rockies Express Pipeline LLC, Senior Notes
7.500%
7/15/38
7,500,000
7,832,797
(a)(b)
Sunoco LP, Junior Subordinated Notes (7.875% to 9/18/30 then 5
year Treasury Constant Maturity Rate + 4.230%)
7.875%
9/18/30
5,000,000
5,108,930
(a)(b)(e)(f)
Venture Global LNG Inc., Junior Subordinated Notes (9.000% to
9/30/29 then 5 year Treasury Constant Maturity Rate + 5.440%)
9.000%
9/30/29
2,000,000
1,993,662
(a)(b)(e)(f)
Venture Global LNG Inc., Senior Secured Notes
8.375%
6/1/31
5,000,000
5,202,477
(a)(b)
Venture Global LNG Inc., Senior Secured Notes
9.875%
2/1/32
4,510,000
4,845,896
(a)(b)
Venture Global Plaquemines LNG LLC, Senior Secured Notes
6.500%
6/15/34
2,450,000
2,551,876
(a)(b)
Venture Global Plaquemines LNG LLC, Senior Secured Notes
7.750%
5/1/35
2,125,000
2,382,981
(a)(b)
Venture Global Plaquemines LNG LLC, Senior Secured Notes
6.750%
1/15/36
1,180,000
1,250,566
(a)(b)
Total Oil, Gas & Consumable Fuels
82,227,255
 
Total Energy
89,573,997
Financials — 5.7%
Banks — 0.5%
Citigroup Inc., Junior Subordinated Notes (6.625% to 2/15/31
then 5 year Treasury Constant Maturity Rate + 3.001%)
6.625%
2/15/31
1,920,000
1,922,746
(b)(e)(f)
Ueno Bank SA, Senior Notes
6.700%
3/6/31
1,500,000
1,486,695
(a)
Total Banks
3,409,441
Capital Markets — 0.4%
StoneX Group Inc., Secured Notes
7.875%
3/1/31
2,620,000
2,722,866
(a)(b)
Consumer Finance — 1.3%
Midcap Financial Issuer Trust, Junior Subordinated Notes (3 mo.
Term SOFR + 3.750%)
7.422%
1/15/56
1,890,000
1,775,692
(a)(f)
See Notes to Schedule of Investments.

3
Western Asset Diversified Income Fund 2026 Quarterly Report

Schedule of Investments (unaudited) (cont’d)
March 31, 2026
 Western Asset Diversified Income Fund
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Consumer Finance — continued
Navient Corp., Senior Notes
5.500%
3/15/29
8,900,000
 $8,166,303
(b)
Total Consumer Finance
9,941,995
Financial Services — 1.5%
LD Holdings Group LLC, Senior Notes
6.125%
4/1/28
4,100,000
3,443,106
(a)(b)
Rocket Mortgage LLC/Rocket Mortgage Co-Issuer Inc., Senior
Notes
4.000%
10/15/33
1,000,000
897,127
(a)(b)
VistaJet Malta Finance PLC/Vista Management Holding Inc.,
Senior Notes
7.875%
5/1/27
6,500,000
6,421,814
(a)(b)
Total Financial Services
10,762,047
Insurance — 0.9%
APH Somerset Investor 2 LLC/APH2 Somerset Investor 2 LLC/
APH3 Somerset Investor 2 LLC, Senior Notes
7.875%
11/1/29
2,170,000
1,964,230
(a)(b)
Asurion LLC/Asurion Co-Issuer Inc., Senior Secured Notes
8.000%
12/31/32
4,790,000
4,973,399
(a)(b)
Total Insurance
6,937,629
Mortgage Real Estate Investment Trusts (REITs) — 1.1%
Arbor Realty SR Inc., Senior Notes
8.500%
12/15/28
2,970,000
2,920,038
(a)(b)
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance
Corp., Senior Notes
4.750%
6/15/29
5,000,000
4,849,161
(a)(b)
Total Mortgage Real Estate Investment Trusts (REITs)
7,769,199
 
Total Financials
41,543,177
Health Care — 7.6%
Health Care Providers & Services — 5.0%
Akumin Inc., Senior Secured Notes
9.750%
8/31/31
6,982,000
6,423,440
(a)(b)
CHS/Community Health Systems Inc., Secured Notes
6.875%
4/15/29
13,930,000
13,409,962
(a)(b)
CHS/Community Health Systems Inc., Secured Notes
6.125%
4/1/30
600,000
522,345
(a)(b)
CHS/Community Health Systems Inc., Senior Secured Notes
4.750%
2/15/31
3,000,000
2,767,421
(a)(b)
CHS/Community Health Systems Inc., Senior Secured Notes
10.875%
1/15/32
2,424,000
2,603,645
(a)(b)
CHS/Community Health Systems Inc., Senior Secured Notes
9.750%
1/15/34
1,550,000
1,610,633
(a)(b)
LifePoint Health Inc., Senior Secured Notes
9.875%
8/15/30
3,000,000
3,176,286
(a)(b)
Sotera Health Holdings LLC, Senior Secured Notes
7.375%
6/1/31
2,500,000
2,585,558
(a)(b)
TEAM Services Holding Inc., Senior Secured Notes
9.000%
2/15/33
1,760,000
1,727,079
(a)(b)
U.S. Renal Care Inc., Senior Secured Notes
10.625%
6/28/28
1,883,000
1,572,305
(a)
Total Health Care Providers & Services
36,398,674
Health Care Technology — 0.2%
Claritev Corp., Senior Secured Notes
6.750%
3/31/31
1,947,887
1,266,127
(a)
MPH Acquisition Holdings LLC, Senior Secured Notes
5.750%
12/31/30
223,925
171,550
(a)(b)
MPH Acquisition Holdings LLC, Senior Secured Notes (6.500%
Cash and 5.000% PIK)
11.500%
12/31/30
360,064
325,834
(a)(b)(d)
Total Health Care Technology
1,763,511
Pharmaceuticals — 2.4%
1261229 BC Ltd., Senior Secured Notes
10.000%
4/15/32
2,920,000
2,992,092
(a)(b)
Bausch Health Cos. Inc., Senior Notes
7.000%
1/15/28
5,000,000
4,374,750
(a)
Bausch Health Cos. Inc., Senior Notes
6.250%
2/15/29
7,616,000
5,721,520
(a)(b)
Teva Pharmaceutical Finance Co. LLC, Senior Notes
6.150%
2/1/36
2,000,000
2,063,068
(b)
See Notes to Schedule of Investments.

4
Western Asset Diversified Income Fund 2026 Quarterly Report

 Western Asset Diversified Income Fund
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Pharmaceuticals — continued
Teva Pharmaceutical Finance Netherlands III BV, Senior Notes
4.100%
10/1/46
3,000,000
 $2,227,488
Total Pharmaceuticals
17,378,918
 
Total Health Care
55,541,103
Industrials — 12.0%
Commercial Services & Supplies — 2.3%
CoreCivic Inc., Senior Notes
8.250%
4/15/29
3,359,000
3,508,956
(b)
GEO Group Inc., Senior Notes
10.250%
4/15/31
2,100,000
2,241,779
(b)
Neptune Bidco US Inc., Senior Secured Notes
10.375%
5/15/31
2,280,000
2,302,602
(a)(b)
Neptune Bidco US Inc., Senior Secured Notes
9.500%
2/15/33
1,300,000
1,262,936
(a)(b)
RR Donnelley & Sons Co., Secured Notes
10.875%
8/1/29
3,830,000
3,866,300
(a)(b)
RR Donnelley & Sons Co., Senior Secured Notes
9.500%
8/1/29
3,500,000
3,545,549
(a)(b)
Vortex Opco LLC, Senior Secured Notes
8.000%
4/30/30
4,075,500
59,767
*(a)(i)
Total Commercial Services & Supplies
16,787,889
Construction & Engineering — 2.2%
ATP Tower Holdings/Andean Telecom Partners Chile SpA/Andean
Tower Partners Colombia SAS, Senior Secured Notes
7.875%
2/3/30
1,900,000
1,927,965
(a)(b)
Empire Communities Corp., Senior Notes
9.750%
5/1/29
3,000,000
3,016,032
(a)(b)
Tutor Perini Corp., Senior Notes
11.875%
4/30/29
9,921,000
10,874,398
(a)(b)
Total Construction & Engineering
15,818,395
Electrical Equipment — 0.8%
Babcock & Wilcox Enterprises Inc., Secured Notes
8.750%
6/30/30
5,000,000
5,025,000
(a)
GrafTech Global Enterprises Inc., Secured Notes
9.875%
12/23/29
1,500,000
965,544
(a)
Total Electrical Equipment
5,990,544
Ground Transportation — 1.1%
Carriage Purchaser Inc., Senior Notes
7.875%
10/15/29
8,250,000
7,885,438
(a)(b)
Machinery — 2.2%
Chart Industries Inc., Senior Secured Notes
7.500%
1/1/30
3,000,000
3,120,471
(a)(b)
Park-Ohio Industries Inc., Senior Secured Notes
8.500%
8/1/30
7,690,000
7,888,441
(a)(b)
Titan International Inc., Senior Secured Notes
7.000%
4/30/28
5,230,000
5,222,684
(b)
Total Machinery
16,231,596
Marine Transportation — 0.5%
Stena International SA, Senior Secured Notes
7.625%
2/15/31
3,690,000
3,783,626
(a)(b)
Passenger Airlines — 1.7%
JetBlue Airways Corp./JetBlue Loyalty LP, Senior Secured Notes
9.875%
9/20/31
7,620,000
7,211,708
(a)(b)
Latam Airlines Group SA, Senior Secured Notes
7.875%
4/15/30
1,000,000
1,011,250
(a)(b)
RJET 2023-1 A
8.000%
6/15/30
4,312,500
4,506,637
Total Passenger Airlines
12,729,595
Trading Companies & Distributors — 0.1%
Herc Holdings Inc., Senior Notes
7.000%
6/15/30
420,000
430,955
(a)(b)
Herc Holdings Inc., Senior Notes
7.250%
6/15/33
420,000
430,749
(a)(b)
Total Trading Companies & Distributors
861,704
Transportation Infrastructure — 1.1%
Railworks Holdings LP/Railworks Rally Inc., Secured Notes
8.250%
11/15/28
8,000,000
8,022,406
(a)(b)
 
Total Industrials
88,111,193
See Notes to Schedule of Investments.

5
Western Asset Diversified Income Fund 2026 Quarterly Report

Schedule of Investments (unaudited) (cont’d)
March 31, 2026
 Western Asset Diversified Income Fund
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Information Technology — 4.1%
Communications Equipment — 0.6%
Connect Finco SARL/Connect US Finco LLC, Senior Secured Notes
9.000%
9/15/29
2,000,000
 $2,103,580
(a)(b)
Viasat Inc., Senior Secured Notes
5.625%
4/15/27
2,000,000
1,988,050
(a)(b)
Total Communications Equipment
4,091,630
Electronic Equipment, Instruments & Components — 0.5%
EquipmentShare.com Inc., Secured Notes
9.000%
5/15/28
3,890,000
4,022,964
(a)(b)
IT Services — 1.5%
APLD ComputeCo 2 LLC, Senior Secured Notes
6.750%
3/15/31
710,000
705,271
(a)(b)
APLD ComputeCo LLC, Senior Secured Notes
9.250%
12/15/30
2,050,000
2,113,964
(a)(b)
CoreWeave Inc., Senior Notes
9.250%
6/1/30
6,380,000
6,205,280
(a)(b)
Sabre GLBL Inc., Senior Secured Notes
11.125%
7/15/30
2,000,000
1,700,020
(a)(b)
Total IT Services
10,724,535
Software — 1.4%
Citrix Systems Inc., Senior Secured Notes
4.500%
12/1/27
8,164,000
7,744,294
NCR Voyix Corp., Senior Notes
5.125%
4/15/29
3,000,000
2,872,312
(a)(b)
Total Software
10,616,606
Technology Hardware, Storage & Peripherals — 0.1%
Vericast Corp./Harland Clarke/Checks in the Mail/Valassis
Comm/Valassis Direct, Secured Notes (13.000% Cash)
13.000%
12/15/30
676,658
833,980
(a)(b)(d)
 
Total Information Technology
30,289,715
Materials — 2.2%
Chemicals — 1.1%
ARC Falcon I Inc./Arclin USA LLC/New Arclin US Holding Corp.,
Senior Secured Notes
9.750%
3/1/33
3,990,000
3,845,043
(a)(b)
Cerdia Finanz GmbH, Senior Secured Notes
9.375%
10/3/31
3,620,000
3,603,819
(a)(b)
Orbia Advance Corp. SAB de CV, Senior Notes
2.875%
5/11/31
1,080,000
878,526
(b)(j)
Total Chemicals
8,327,388
Construction Materials — 0.3%
Smyrna Ready Mix Concrete LLC, Senior Secured Notes
8.875%
11/15/31
2,070,000
2,136,188
(a)(b)
Metals & Mining — 0.8%
First Quantum Minerals Ltd., Senior Notes
8.625%
6/1/31
2,000,000
2,076,188
(a)
First Quantum Minerals Ltd., Senior Notes
8.000%
3/1/33
2,420,000
2,525,519
(a)
First Quantum Minerals Ltd., Senior Notes
7.250%
2/15/34
1,380,000
1,406,016
(a)
Total Metals & Mining
6,007,723
 
Total Materials
16,471,299
Real Estate — 2.1%
Diversified REITs — 1.4%
MPT Operating Partnership LP/MPT Finance Corp., Senior Notes
5.000%
10/15/27
5,610,000
5,226,837
(b)
MPT Operating Partnership LP/MPT Finance Corp., Senior Notes
4.625%
8/1/29
3,890,000
3,029,337
(b)
MPT Operating Partnership LP/MPT Finance Corp., Senior
Secured Notes
8.500%
2/15/32
900,000
913,142
(a)(b)
Uniti Group LP/Uniti Group Finance Inc./CSL Capital LLC, Senior
Notes
8.625%
6/15/32
1,420,000
1,447,265
(a)(b)
Total Diversified REITs
10,616,581
Health Care REITs — 0.2%
Diversified Healthcare Trust, Senior Secured Notes
7.250%
10/15/30
1,170,000
1,181,516
(a)(b)
See Notes to Schedule of Investments.

6
Western Asset Diversified Income Fund 2026 Quarterly Report

 Western Asset Diversified Income Fund
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Real Estate Management & Development — 0.5%
Add Hero Holdings Ltd., Senior Secured Notes (7.500% Cash or
8.500% PIK)
8.500%
9/30/29
557,668
 $29,166
(d)(j)
Add Hero Holdings Ltd., Senior Secured Notes (8.000% Cash or
9.000% PIK)
9.000%
9/30/30
454,176
6,812
(d)(j)
Add Hero Holdings Ltd., Senior Secured Notes (8.800% Cash or
9.800% PIK)
9.800%
9/30/31
599,523
8,243
(d)(j)
China Aoyuan Group Ltd., Senior Notes, Step bond (0.000% to
9/30/31 then 1.000%)
0.000%
3/30/2173
786,962
5,902
(e)(j)
China Aoyuan Group Ltd., Senior Secured Notes (5.500% PIK)
5.500%
9/30/31
219,291
1,645
(d)(j)
Country Garden Holdings Co. Ltd., Senior Secured Notes (2.500%
Cash or 5.000% PIK)
5.000%
12/31/32
1,268,733
177,623
(d)(j)
Cushman & Wakefield US Borrower LLC, Senior Secured Notes
8.875%
9/1/31
1,000,000
1,059,880
(a)(b)
Five Point Operating Co. LP, Senior Notes
8.000%
10/1/30
2,170,000
2,166,261
(a)
Total Real Estate Management & Development
3,455,532
 
Total Real Estate
15,253,629
Utilities — 0.5%
Electric Utilities — 0.2%
Pampa Energia SA, Senior Notes
7.950%
9/10/31
1,210,000
1,262,817
(a)
Independent Power and Renewable Electricity Producers — 0.3%
AES Andes SA, Senior Notes
6.250%
3/14/32
300,000
308,082
(a)
Saavi Energia Sarl, Senior Notes
8.875%
2/10/35
1,800,000
1,891,170
(a)(b)
Total Independent Power and Renewable Electricity Producers
2,199,252
 
Total Utilities
3,462,069
Total Corporate Bonds & Notes (Cost — $529,045,545)
531,475,065
Collateralized Mortgage Obligations(k) — 25.9%
Atrium Hotel Portfolio Trust, 2017-ATRM E (1 mo. Term SOFR +
3.347%)
7.020%
12/15/36
2,700,000
2,556,697
(a)(b)(f)
BANK, 2021-BN35 H
1.662%
6/15/64
9,451,000
3,815,988
(a)(f)
BANK, 2021-BN35 K
1.662%
6/15/64
21,846,154
8,291,159
(a)(f)
Benchmark Mortgage Trust, 2021-B27 F
2.250%
7/15/54
5,000,000
2,969,992
(a)(f)
Benchmark Mortgage Trust, 2021-B27 G
2.250%
7/15/54
5,000,000
2,413,220
(a)(f)
BRES Commercial Mortgage Trust, 2025-ATCAP F (1 mo. Term
SOFR + 5.189%)
8.861%
11/15/42
2,000,000
1,997,159
(a)(f)
BSREP Commercial Mortgage Trust, 2021-DC HRR (1 mo. Term
SOFR + 5.614%)
9.287%
8/15/38
15,903,970
3,197,891
(a)(f)
BWAY Mortgage Trust, 2013-1515 F
3.928%
3/10/33
3,000,000
2,553,928
(a)(b)(f)
BX Commercial Mortgage Trust, 2019-IMC G (1 mo. Term SOFR +
3.646%)
7.319%
4/15/34
4,000,000
3,903,382
(a)(b)(f)
BX Commercial Mortgage Trust, 2026-VLT9 E (1 mo. Term SOFR +
4.250%)
7.923%
3/15/45
2,150,000
2,132,448
(a)(f)
CAFL Issuer LLC, 2024-RTL1 A2
8.680%
11/28/31
4,570,000
4,645,935
(a)(b)
CIM Trust, 2021-INV1 AXS, IO
0.190%
7/1/51
169,865,082
1,503,442
(a)(f)
Citigroup Commercial Mortgage Trust, 2015-P1 D
3.225%
9/15/48
15,319
15,021
(a)
CSMC Trust, 2021-ADV G (1 mo. Term SOFR + 6.364%)
10.037%
7/15/38
7,860,000
574
(a)(f)
Easy Street Mortgage Loan Trust, 2025-RTL1 A2
8.299%
5/25/40
2,990,000
3,022,070
(a)(b)
See Notes to Schedule of Investments.

7
Western Asset Diversified Income Fund 2026 Quarterly Report

Schedule of Investments (unaudited) (cont’d)
March 31, 2026
 Western Asset Diversified Income Fund
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
Collateralized Mortgage Obligations(k) — continued
Federal Home Loan Mortgage Corp. (FHLMC) Multifamily
Structured Credit Risk Trust, 2021-MN2 B1 (30 Day Average SOFR
+ 5.500%)
9.162%
7/25/41
2,500,000
 $2,520,032
(a)(f)
Federal Home Loan Mortgage Corp. (FHLMC) Multifamily
Structured Credit Risk Trust, 2023-MN7 B1 (30 Day Average SOFR
+ 8.850%)
12.512%
9/25/43
1,960,000
2,280,126
(a)(f)
Federal Home Loan Mortgage Corp. (FHLMC) REMIC, Structured
Agency Credit Risk Trust, 2020-DNA1 B2 (30 Day Average SOFR +
5.364%)
9.026%
1/25/50
2,225,000
2,474,452
(a)(f)
Federal Home Loan Mortgage Corp. (FHLMC) REMIC, Structured
Agency Credit Risk Trust, 2020-DNA2 B2 (30 Day Average SOFR +
4.914%)
8.576%
2/25/50
5,437,500
5,979,071
(a)(b)(f)
Federal Home Loan Mortgage Corp. (FHLMC) REMIC, Structured
Agency Credit Risk Trust, 2020-DNA6 B2 (30 Day Average SOFR +
5.650%)
9.312%
12/25/50
5,000,000
5,827,886
(a)(f)
Federal Home Loan Mortgage Corp. (FHLMC) REMIC, Structured
Agency Credit Risk Trust, 2021-DNA1 B2 (30 Day Average SOFR +
4.750%)
8.412%
1/25/51
6,000,000
6,712,638
(a)(f)
Federal Home Loan Mortgage Corp. (FHLMC) REMIC, Structured
Agency Credit Risk Trust, 2021-DNA2 B2 (30 Day Average SOFR +
6.000%)
9.662%
8/25/33
4,500,000
5,607,781
(a)(f)
Federal Home Loan Mortgage Corp. (FHLMC) REMIC, Structured
Agency Credit Risk Trust, 2021-DNA3 B2 (30 Day Average SOFR +
6.250%)
9.912%
10/25/33
5,000,000
6,309,421
(a)(f)
Federal Home Loan Mortgage Corp. (FHLMC) REMIC, Structured
Agency Credit Risk Trust, 2021-DNA5 B2 (30 Day Average SOFR +
5.500%)
9.162%
1/25/34
5,025,000
6,135,173
(a)(f)
Federal Home Loan Mortgage Corp. (FHLMC) Seasoned Credit
Risk Transfer Trust, 2018-3 BX
2.205%
8/25/57
9,332,186
2,730,023
(a)(f)
Federal Home Loan Mortgage Corp. (FHLMC) Seasoned Credit
Risk Transfer Trust, 2022-1 M
4.500%
11/25/61
5,000,000
4,662,750
(a)(b)(f)
Federal Home Loan Mortgage Corp. (FHLMC) Structured Agency
Credit Risk Trust, 2018-HRP1 B2 (30 Day Average SOFR +
11.864%)
15.526%
5/25/43
4,663,554
5,472,029
(a)(b)(f)
Federal Home Loan Mortgage Corp. (FHLMC) Structured Agency
Credit Risk Trust, 2019-FTR1 B2 (30 Day Average SOFR + 8.464%)
12.126%
1/25/48
3,460,000
4,087,730
(a)(b)(f)
FREMF Mortgage Trust, 2021-F117 CS (30 Day Average SOFR +
6.400%)
10.069%
7/25/31
3,293,585
3,041,048
(a)(f)
Greystone CRE Notes LLC, 2025-HC4 D (1 mo. Term SOFR +
3.940%)
7.613%
10/15/42
3,500,000
3,487,859
(a)(f)
GS Mortgage Securities Corp., 2024-70P HRR
9.333%
3/10/41
17,680,000
17,722,595
(a)(f)
GS Mortgage Securities Corp. Trust, 2018-LUAU G (1 mo. Term
SOFR + 4.747%)
8.420%
11/15/32
5,000,000
4,982,690
(a)(b)(f)
HIH Trust, 2024-61P F (1 mo. Term SOFR + 5.437%)
9.110%
10/15/41
3,611,150
3,625,200
(a)(b)(f)
JPMorgan Chase Commercial Mortgage Securities Trust, 2018-
WPT GFX
5.364%
7/5/33
4,000,000
400,386
(a)(f)
KIND Trust, 2021-KIND F (1 mo. Term SOFR + 4.064%)
7.740%
8/15/38
5,951,129
5,880,121
(a)(b)(f)
MIRA Trust, 2023-MILE HRR
9.300%
6/10/38
13,750,000
13,827,229
(a)
Morgan Stanley Capital I Trust, 2021-L6 F
2.250%
6/15/54
7,195,000
4,415,938
(a)(f)
See Notes to Schedule of Investments.

8
Western Asset Diversified Income Fund 2026 Quarterly Report

 Western Asset Diversified Income Fund
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
Collateralized Mortgage Obligations(k) — continued
Multifamily CAS Trust, 2019-1 CE (30 Day Average SOFR +
8.864%)
12.526%
10/25/49
2,000,000
 $2,043,708
(a)(f)
Multifamily CAS Trust, 2020-1 CE (30 Day Average SOFR +
7.614%)
11.276%
3/25/50
2,500,000
2,592,025
(a)(f)
Natixis Commercial Mortgage Securities Trust, 2022-JERI G (1
mo. Term SOFR + 7.608%)
11.280%
1/15/39
2,500,000
1,695,460
(a)(f)
Natixis Commercial Mortgage Securities Trust, 2022-RRI E (1 mo.
Term SOFR + 5.193%)
8.866%
3/15/35
1,240,552
1,243,205
(a)(b)(f)
New Residential Mortgage Loan Trust, 2017-2A B5
5.165%
3/25/57
2,819,937
2,543,547
(a)(f)
New Residential Mortgage Loan Trust, 2018-1A B6
5.590%
12/25/57
5,732,901
4,916,855
(a)(f)
NYC Commercial Mortgage Trust, 2025-28L F
8.130%
11/5/38
1,500,000
1,515,122
(a)(f)
NYC Commercial Mortgage Trust, 2025-28L G
9.321%
11/5/38
3,500,000
3,509,325
(a)(f)
Redwood Funding Trust, 2025-3 A
6.231%
12/27/56
3,827,337
3,863,701
(a)
SFO Commercial Mortgage Trust, 2021-555 E (1 mo. Term SOFR +
3.014%)
6.687%
5/15/38
1,650,000
1,632,421
(a)(b)(f)
Soho Trust, 2021-SOHO D
2.697%
8/10/38
4,050,000
2,967,025
(a)(f)
 
Total Collateralized Mortgage Obligations (Cost — $210,785,384)
189,723,478
 
 
 
 
Face
Amount†/
Units
 
Asset-Backed Securities — 23.4%
720 East CLO Ltd., 2025-7A E (3 mo. Term SOFR + 4.750%)
8.418%
4/20/37
2,600,000
2,529,086
(a)(b)(f)
Abry Liquid Credit CLO Ltd., 2025-2A E (3 mo. Term SOFR +
5.850%)
9.535%
1/15/39
2,810,000
2,784,580
(a)(f)
AGL CLO Ltd., 2022-17A ER (3 mo. Term SOFR + 4.650%)
8.320%
1/21/35
1,530,000
1,391,607
(a)(f)
AGL CLO Ltd., 2025-44A E (3 mo. Term SOFR + 4.750%)
8.581%
10/22/37
3,600,000
3,539,618
(a)(f)
AGL CLO Ltd., 2021-16A DR (3 mo. Term SOFR + 2.400%)
6.068%
1/20/35
380,000
367,626
(a)(f)
AMMC CLO Ltd., 2020-23A D2R3 (3 mo. Term SOFR + 4.900%)
8.568%
7/17/38
1,500,000
1,496,361
(a)(f)
AMMC CLO Ltd., 2021-24A ER (3 mo. Term SOFR + 6.500%)
10.168%
1/20/35
1,890,000
1,738,263
(a)(b)(f)
AMSR Trust, 2026-SFR1 F1
3.775%
4/17/31
5,100,000
4,374,971
AMSR Trust, 2026-SFR1 F2
3.775%
4/17/31
1,258,000
1,015,144
Apex Credit CLO LLC, 2021-2A CR (3 mo. Term SOFR + 3.750%)
7.418%
10/20/34
970,000
934,939
(a)(f)
Apidos CLO Ltd., 2023-46A SUB
10/24/36
3,500,000
2,493,786
(a)(f)(l)
Apidos Loan Fund Ltd., 2024-1A ER (3 mo. Term SOFR + 4.750%)
8.418%
10/25/38
1,750,000
1,712,759
(a)(f)
Arini US CLO Ltd., 3A E (3 mo. Term SOFR + 5.250%)
9.170%
1/15/39
1,440,000
1,433,811
(a)(f)
Avis Budget Rental Car Funding AESOP LLC, 2023-6A D
7.370%
12/20/29
1,320,000
1,341,674
(a)
Avis Budget Rental Car Funding AESOP LLC, 2024-2A D
7.430%
10/20/28
840,000
853,411
(a)
Balboa Bay Loan Funding Ltd., 2020-1A ERR (3 mo. Term SOFR +
7.150%)
10.818%
10/20/35
2,620,000
2,527,910
(a)(b)(f)
Balboa Bay Loan Funding Ltd., 2023-1A D2RR (3 mo. Term SOFR +
4.250%)
7.918%
4/20/36
2,250,000
2,216,191
(a)(f)
Balboa Bay Loan Funding Ltd., 2024-2A F (3 mo. Term SOFR +
7.800%)
11.468%
1/20/38
200,000
192,601
(a)(b)(f)
Balboa Bay Loan Funding Ltd., 2024-2A E (3 mo. Term SOFR +
5.750%)
9.418%
1/20/38
1,630,000
1,591,064
(a)(b)(f)
Bayfront Iabs Pte. Ltd., 7A C (SOFR + 2.950%)
4/11/48
3,000,000
2,990,817
*
See Notes to Schedule of Investments.

9
Western Asset Diversified Income Fund 2026 Quarterly Report

Schedule of Investments (unaudited) (cont’d)
March 31, 2026
 Western Asset Diversified Income Fund
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†/
Units
Value
Asset-Backed Securities — continued
Bayview Opportunity Master Fund LLC, 2025-EDU1 D (30 Day
Average SOFR + 2.250%)
5.912%
7/27/48
1,612,397
 $1,610,731
(a)(f)
Black Diamond CLO Ltd., 2021-1A CR (3 mo. Term SOFR +
3.900%)
7.569%
11/22/34
2,270,000
2,251,131
(a)(f)
BlueMountain CLO Ltd., 2020-29A ER (3 mo. Term SOFR +
7.122%)
10.790%
7/25/34
7,000,000
6,269,186
(a)(b)(f)
BlueMountain Fuji US CLO Ltd., 2017-2A D (3 mo. Term SOFR +
6.412%)
10.079%
10/20/30
5,350,000
4,354,786
(a)(b)(f)
Capital Four US CLO Ltd., 2025-4A E (3 mo. Term SOFR + 6.130%)
9.888%
10/18/38
2,660,000
2,646,514
(a)(f)
CarVal CLO Ltd., 2024-3A E (3 mo. Term SOFR + 6.350%)
10.018%
10/20/37
2,070,000
2,006,811
(a)(b)(f)
Davis Park CLO Ltd., 2022-1A ER (3 mo. Term SOFR + 6.000%)
9.668%
7/20/38
2,500,000
2,288,058
(a)(f)
Dryden CLO Ltd., 2021-95A SUB
8/20/34
6,870,000
1,923,812
(a)(f)(l)
Dryden CLO Ltd., 2022-113A D1R3 (3 mo. Term SOFR + 3.000%)
6.672%
10/15/37
1,970,000
1,965,075
(a)(f)
Elevation CLO Ltd., 2021-14A ER (3 mo. Term SOFR + 6.450%)
10.118%
1/20/38
4,400,000
3,848,796
(a)(f)
Elmwood CLO Ltd., 2019-2A SUB
4/20/34
4,600,000
1,544,591
(a)(f)(l)
Fortress Credit BSL Ltd., 2021-4A E (3 mo. Term SOFR + 7.392%)
11.064%
10/15/34
3,000,000
2,672,726
(a)(b)(f)
GGAM Master Trust International Ltd., 2025-1A A
5.923%
9/30/60
1,814,467
1,813,694
(a)
GoldenTree Loan Management US CLO Ltd., 2020-8A FR (3 mo.
Term SOFR + 8.312%)
11.979%
10/20/34
7,000,000
6,247,380
(a)(b)(f)
Greywolf CLO Ltd., 2015-1A DR (3 mo. Term SOFR + 6.112%)
9.780%
1/27/31
6,250,000
6,277,926
(a)(b)(f)
Greywolf CLO Ltd., 2018-1A D (3 mo. Term SOFR + 6.012%)
9.680%
4/26/31
3,000,000
3,014,962
(a)(b)(f)
HalseyPoint CLO Ltd., 2019-1A FR (3 mo. Term SOFR + 10.730%)
14.398%
10/20/37
2,930,000
2,577,612
(a)(f)
Hartwick Park CLO Ltd., 2023-1A ER (3 mo. Term SOFR + 4.850%)
8.518%
1/20/37
525,000
486,606
(a)(b)(f)
Hildene Community Funding CDO Ltd., 2015-1A ARR
2.600%
11/1/35
428,069
381,962
(a)
Huntington Bank Auto Credit-Linked Notes, 2025-1 D (30 Day
Average SOFR + 3.500%)
7.173%
3/21/33
761,335
753,774
(a)(f)
Huntington Bank Auto Credit-Linked Notes, 2025-2 D (30 Day
Average SOFR + 3.250%)
6.923%
9/20/33
679,047
664,173
(a)(f)
Lakeside Park CLO Ltd., 2025-1A E (3 mo. Term SOFR + 4.600%)
8.272%
4/15/38
2,000,000
1,902,382
(a)(f)
LCM Ltd., 33A E (3 mo. Term SOFR + 6.612%)
10.279%
7/20/34
3,000,000
1,309,251
(a)(f)
Lighthouse Park CLO Ltd., 2025-1A E (3 mo. Term SOFR + 4.650%)
8.571%
10/24/37
1,140,000
1,106,949
(a)(f)
Lunar Structured Aircraft Portfolio Notes, 2021-1 C
5.682%
10/15/46
2,742,561
2,672,470
(a)
Magnetite Ltd., 2020-26A ER2 (3 mo. Term SOFR + 4.700%)
8.368%
1/25/38
2,750,000
2,619,030
(a)(f)
Magnetite Ltd., 2022-32A ER (3 mo. Term SOFR + 4.600%)
8.272%
10/15/37
2,420,000
2,347,934
(a)(f)
MidOcean Credit CLO LLC, 2025-18A E (3 mo. Term SOFR +
5.400%)
9.070%
10/18/35
2,680,000
2,662,437
(a)(f)
National Collegiate Class A-3L Commutation Trust, 2007-4VI O (1
mo. USD LIBOR + 0.850%)
5.819%
3/29/38
27,730,208
2,062,961
(a)(f)
Navesink CLO Ltd., 2024-2A ER (3 mo. Term SOFR + 7.040%)
10.712%
1/15/36
1,750,000
1,726,881
(a)(f)
Nelnet Student Loan Trust, 2025-DA D
5.860%
8/20/54
1,500,000
1,477,631
(a)
NMEF Funding LLC, 2025-A D
8.070%
7/15/32
3,420,000
3,528,430
(a)
Obra CLO Ltd., 2025-3A E (3 mo. Term SOFR + 5.900%)
9.559%
1/20/39
2,750,000
2,708,589
(a)(f)
Ocean Trails CLO Ltd., 2020-10A ER (3 mo. Term SOFR + 7.832%)
11.504%
10/15/34
3,750,000
3,455,438
(a)(b)(f)
Ocean Trails CLO Ltd., 2024-16A E (3 mo. Term SOFR + 6.690%)
10.358%
1/20/38
1,020,000
975,261
(a)(b)(f)
OCP CLO Ltd., 2023-26A ER (3 mo. Term SOFR + 4.450%)
8.118%
4/17/37
1,780,000
1,721,804
(a)(b)(f)
Point Broadband Funding LLC, 2025-1A C
8.156%
7/20/55
2,000,000
2,041,504
(a)
See Notes to Schedule of Investments.

10
Western Asset Diversified Income Fund 2026 Quarterly Report

 Western Asset Diversified Income Fund
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†/
Units
Value
Asset-Backed Securities — continued
Renew, 2024-1A B
9.001%
11/20/59
615,640
 $619,500
(a)
Renew Financial, 2024-2A B
8.223%
11/20/60
1,756,712
1,759,892
(a)
Riserva CLO Ltd., 2016-3A FRR (3 mo. Term SOFR + 8.772%)
12.439%
1/18/34
2,500,000
1,552,038
(a)(f)
RR Ltd., 2021-18A DR (3 mo. Term SOFR + 4.900%)
8.572%
7/15/40
2,370,000
2,301,540
(a)(f)
Saratoga Investment Corp. CLO Ltd., 2013-1A (3 mo. Term SOFR +
10.262%)
4/20/33
4,000,000
672,334
(l)
SEB Funding LLC, 2024-1A A2
7.386%
4/30/54
2,030,000
2,067,927
(a)
Silver Point CLO Ltd., 2026-16A E (3 mo. Term SOFR + 4.750%)
8.405%
4/18/39
3,380,000
3,303,373
(a)(f)
Sixth Street CLO Ltd., 2021-19A FR (3 mo. Term SOFR + 7.910%)
11.578%
7/17/38
450,000
432,693
(a)(f)
SMB Private Education Loan Trust, 2015-C R
11.247%
9/18/46
7,570
2,134,262
(a)
Sound Point CLO Ltd., 2020-1A ER (3 mo. Term SOFR + 7.122%)
10.789%
7/20/34
4,200,000
3,760,236
(a)(f)
Sunnova Hellios II Issuer LLC, 2018-1A B
7.710%
7/20/48
3,252,830
2,910,933
(a)
Symphony CLO Ltd., 2021-28I SBPF
10/23/50
249,757
37
*(f)(g)(h)
Symphony CLO Ltd., 2019-21A ER (3 mo. Term SOFR + 6.862%)
10.534%
7/15/32
2,800,000
2,562,695
(a)(b)(f)
Symphony CLO Ltd., 2021-28A SUB
10/23/50
10,325,000
2,633,605
(a)(f)(l)
TCI-Symphony CLO Ltd., 2016-1A ER2 (3 mo. Term SOFR +
7.012%)
10.663%
10/13/32
3,500,000
3,005,731
(a)(f)
Venture CLO Ltd., 2021-43A D (3 mo. Term SOFR + 3.732%)
7.404%
4/15/34
1,500,000
1,429,570
(a)(f)
Voya CLO Ltd., 2018-2A E (3 mo. Term SOFR + 5.512%)
9.184%
7/15/31
6,750,000
6,112,504
(a)(b)(f)
Voya CLO Ltd., 2020-3A D1RR (3 mo. Term SOFR + 2.700%)
6.370%
1/20/38
1,250,000
1,233,225
(a)(b)(f)
Wave LLC, 2019-1 B
4.581%
9/15/44
250,266
244,843
(a)
Wellesley Park CLO Ltd., 2025-1A E (3 mo. Term SOFR + 4.600%)
8.507%
1/24/39
1,130,000
1,103,901
(a)(f)
Whitebox CLO Ltd., 2020-2A E1R2 (3 mo. Term SOFR + 5.750%)
9.418%
10/24/37
1,430,000
1,384,869
(a)(b)(f)
Wind River CLO Ltd., 2021-4A E3 (3 mo. Term SOFR + 8.512%)
12.179%
1/20/35
3,000,000
2,423,985
(a)(f)
Wind River CLO Ltd., 2021-4A F (3 mo. Term SOFR + 6.522%)
10.189%
1/20/35
2,450,000
635,383
(a)(f)
 
Total Asset-Backed Securities (Cost — $211,122,498)
171,730,553
 
 
 
 
Face
Amount†
 
Senior Loans — 14.7%
Communication Services — 2.2%
Entertainment — 0.5%
Allen Media LLC, Term Loan B (3 mo. Term SOFR + 5.650%)
9.350%
2/10/27
4,665,583
2,974,310
(f)(m)(n)
OAK-Eagle Acquireco Inc., Term Loan B
3/24/33
750,000
746,250
(o)
Total Entertainment
3,720,560
Media — 1.7%
CB Poly US Holdings Inc., Initial Term Loan (3 mo. Term SOFR +
5.500%)
9.200%
5/18/29
4,825,000
4,350,534
(f)(m)(n)
iHeartCommunications Inc., Refinanced Term Loan B (1 mo. Term
SOFR + 5.889%)
9.557%
5/1/29
5,628,750
4,950,654
(f)(m)(n)
Nexstar Media Inc., Term Loan B6
3/18/33
2,810,000
2,781,900
(o)
Total Media
12,083,088
 
Total Communication Services
15,803,648
Consumer Discretionary — 3.2%
Automobile Components — 0.9%
ABC Technologies Inc., Term Loan B
11.918-11.950%
1/2/40
4,080,370
3,927,576
(f)(h)(m)(n)
See Notes to Schedule of Investments.

11
Western Asset Diversified Income Fund 2026 Quarterly Report

Schedule of Investments (unaudited) (cont’d)
March 31, 2026
 Western Asset Diversified Income Fund
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Automobile Components — continued
Autokiniton US Holdings Inc., 2024 Replacement Term Loan B (1
mo. Term SOFR + 4.114%)
7.782%
4/6/28
2,800,425
 $2,771,721
(f)(m)(n)
First Brands Group LLC, 2021 First Lien Term Loan (1 mo. Term
SOFR + 7.114%)
10.782%
3/30/27
1,805,134
5,271
(f)(m)(n)
First Brands Group LLC, DIP Roll Up Term Loan (1 mo. Term SOFR
+ 7.000%)
10.671%
6/29/26
2,308,524
8,796
(f)(m)(n)
First Brands Group LLC, USD DIP Term Loan (1 mo. Term SOFR +
10.000%)
13.671%
6/29/26
807,808
196,903
(f)(m)(n)
Total Automobile Components
6,910,267
Diversified Consumer Services — 0.8%
WW International Inc., Take-Back Term Loan (3 mo. Term SOFR +
6.800%)
10.506%
6/24/30
8,100,710
5,978,324
(f)(m)(n)
Hotels, Restaurants & Leisure — 0.4%
Catawba Nation Gaming Authority, Initial Term Loan B (3 mo.
Term SOFR + 4.750%)
8.417%
3/29/32
3,000,000
3,054,390
(f)(m)(n)
Specialty Retail — 1.1%
Empire Today IP LLC, Second Out Term Loan (3 mo. Term SOFR +
5.262%)
8.928%
8/3/29
1,786,155
35,723
(f)(h)(m)(n)
Harbor Freight Tools USA Inc., Initial Term Loan (1 mo. Term SOFR
+ 2.250%)
5.918%
6/11/31
1,732,412
1,717,019
(f)(m)(n)
Petco Health & Wellness Co. Inc., 2026 Term Loan (3 mo. Term
SOFR + 4.250%)
7.950%
1/22/31
3,610,000
3,536,573
(f)(m)(n)
The Michaels Cos. Inc., Term Loan B (3 mo. Term SOFR + 5.000%)
8.668%
3/15/33
2,650,000
2,577,284
(f)(m)(n)
Total Specialty Retail
7,866,599
 
Total Consumer Discretionary
23,809,580
Consumer Staples — 0.2%
Beverages — 0.1%
Triton Water Holdings Inc., 2026 Refinancing Term Loan
3/19/31
1,120,000
1,123,147
(o)
Household Products — 0.1%
Knight Health Holdings LLC, Term Loan B (1 mo. Term SOFR +
5.364%)
9.032%
12/23/28
956,496
680,069
(f)(m)(n)
 
Total Consumer Staples
1,803,216
Financials — 1.4%
Financial Services — 1.0%
Greystone Select Holdings LLC, Term Loan B (3 mo. Term SOFR +
5.262%)
8.931%
6/16/28
3,294,753
3,249,450
(f)(m)(n)
Nexus Buyer LLC, Amendment No. 9 Refinancing Term Loan (1
mo. Term SOFR + 3.500%)
7.168%
7/31/31
3,889,016
3,750,470
(f)(m)(n)
Total Financial Services
6,999,920
Insurance — 0.4%
Asurion LLC, New Term Loan B14
3/11/33
970,000
939,086
(o)
Asurion LLC, New Term Loan B4 (1 mo. Term SOFR + 5.364%)
9.032%
1/20/29
1,962,617
1,952,980
(f)(m)(n)
Total Insurance
2,892,066
 
Total Financials
9,891,986
See Notes to Schedule of Investments.

12
Western Asset Diversified Income Fund 2026 Quarterly Report

 Western Asset Diversified Income Fund
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Health Care — 1.5%
Health Care Providers & Services — 0.6%
EyeCare Partners LLC, Term Loan B (4.730% Cash and 3.610%
PIK)
8.340%
11/30/28
1,101,113
 $462,468
(d)(f)(m)(n)
TEAM Services Holding Inc., Initial Term Loan
3/31/33
3,870,000
3,683,756
(o)
Total Health Care Providers & Services
4,146,224
Health Care Technology — 0.6%
MPH Acquisition Holdings LLC, First Out Term Loan (3 mo. Term
SOFR + 3.750%)
7.417%
12/31/30
528,768
528,635
(f)(m)(n)
MPH Acquisition Holdings LLC, Second Out Term Loan (3 mo.
Term SOFR + 4.862%)
8.528%
12/31/30
4,383,154
3,902,848
(f)(m)(n)
Total Health Care Technology
4,431,483
Pharmaceuticals — 0.3%
Gainwell Acquisition Corp., Term Loan B (3 mo. Term SOFR +
4.100%)
7.800%
10/1/27
2,315,561
2,252,856
(f)(m)(n)
 
Total Health Care
10,830,563
Industrials — 1.0%
Commercial Services & Supplies — 0.5%
DS Parent Inc., Term Loan B (3 mo. Term SOFR + 5.500%)
9.200%
1/31/31
4,465,909
3,970,930
(f)(m)(n)
Passenger Airlines — 0.5%
Spirit Airlines LLC, Contingent DIP Facility
7/14/26
1,215,610
151,951
*(h)(i)
Spirit Airlines LLC, New Money Term Loan (1 mo. Term SOFR +
8.000%)
11.678%
1/2/40
513,694
508,557
(f)(m)(n)
Spirit Airlines LLC, Roll Up Term Loan
10/14/26
3,190,690
2,233,483
(h)(o)
Spirit Airlines LLC, Second New Money Term Loan (1 mo. Term
SOFR + 8.000%)
11.678%
7/14/26
127,400
126,126
(f)(m)(n)
Spirit Airlines LLC, Third DIP New Money Term Loan (1 mo. Term
SOFR + 8.000%)
11.678%
7/14/26
251,619
249,103
(f)(m)(n)
Total Passenger Airlines
3,269,220
 
Total Industrials
7,240,150
Information Technology — 3.7%
Semiconductors & Semiconductor Equipment — 1.2%
VCI Asset Holdings 1 LLC, Term Loan
10.000%
11/20/30
4,060,000
4,359,445
(m)(n)
VCI Asset Holdings 2 LLC, Initial Term Loan
7.375%
2/6/31
4,220,000
4,346,600
(g)(m)(n)
Total Semiconductors & Semiconductor Equipment
8,706,045
Software — 1.6%
DCert Buyer Inc., Second Lien Initial Term Loan (1 mo. Term SOFR
+ 7.000%)
10.668%
2/19/29
5,000,000
3,862,500
(f)(m)(n)
Magenta Security Holdings LLC, First Out Term Loan (3 mo. Term
SOFR + 7.010%)
10.677%
7/27/28
377,438
271,074
(f)(m)(n)
Planview Parent Inc., 2024 Incremental Term Loan B (3 mo. Term
SOFR + 3.500%)
7.200%
12/17/27
4,080,031
3,072,794
(f)(m)(n)
Starlight Parent LLC, Term Loan (3 mo. Term SOFR + 4.000%)
7.674%
4/16/32
3,482,500
2,968,832
(f)(m)(n)
UKG Inc., Term Loan B (3 mo. Term SOFR + 2.500%)
6.167%
2/10/31
1,605,965
1,536,812
(f)(m)(n)(o)
Total Software
11,712,012
See Notes to Schedule of Investments.

13
Western Asset Diversified Income Fund 2026 Quarterly Report

Schedule of Investments (unaudited) (cont’d)
March 31, 2026
 Western Asset Diversified Income Fund
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Technology Hardware, Storage & Peripherals — 0.9%
Vericast Corp., 2024 Extended Term Loan (3 mo. Term SOFR +
7.750%)
11.500%
6/14/30
7,168,482
 $6,964,646
(f)(m)(n)
 
Total Information Technology
27,382,703
Materials — 1.5%
Chemicals — 1.5%
ARC Falcon I Inc., Term Loan B
3/4/33
1,600,000
1,471,000
(o)
Hexion Holdings Corp., 2024 Refinancing Term Loan (1 mo. Term
SOFR + 4.000%)
7.675%
3/15/29
2,689,492
2,579,115
(f)(m)(n)
Natgasoline LLC, Term Loan B (3 mo. Term SOFR + 5.500%)
9.173%
3/29/30
2,437,500
2,460,352
(f)(m)(n)
Plastics Management LLC, First Lien Initial Term Loan (3 mo. Term
SOFR + 5.000%)
8.700%
8/3/27
4,780,726
4,763,878
(f)(m)(n)
 
Total Materials
11,274,345
Total Senior Loans (Cost — $120,739,039)
108,036,191
Sovereign Bonds — 6.7%
Angola — 0.8%
Angolan Government International Bond, Senior Notes
8.000%
11/26/29
1,600,000
1,584,299
(a)
Angolan Government International Bond, Senior Notes
8.750%
4/14/32
3,500,000
3,403,113
(a)(p)
Angolan Government International Bond, Senior Notes
9.125%
11/26/49
620,000
540,690
(j)
Total Angola
5,528,102
Argentina — 0.7%
Ciudad Autonoma De Buenos Aires, Senior Notes
7.500%
6/1/27
3,400,170
3,431,230
(a)
Ciudad Autonoma De Buenos Aires, Senior Notes
7.500%
6/1/27
1,333,400
1,345,581
(j)
Total Argentina
4,776,811
Bahamas — 0.4%
 
Bahamas Government International Bond, Senior Notes
8.250%
6/24/36
3,000,000
3,210,240
(a)
Brazil — 0.5%
 
Brazil Notas do Tesouro Nacional Serie F, Notes
10.000%
1/1/31
21,052,000
BRL
3,551,358
Dominican Republic — 0.4%
Dominican Republic International Bond, Senior Notes
4.500%
1/30/30
430,000
409,704
(j)
Dominican Republic International Bond, Senior Notes
4.875%
9/23/32
2,750,000
2,540,725
(j)(p)
Total Dominican Republic
2,950,429
Ecuador — 0.5%
Ecuador Government International Bond, Senior Notes
8.750%
1/29/34
930,000
913,725
(a)
Ecuador Government International Bond, Senior Notes
6.900%
7/31/35
1,000,000
883,180
(j)
Ecuador Government International Bond, Senior Notes, Step bond
(5.000% to 7/31/26 then 5.500%)
5.000%
7/31/40
2,500,000
1,962,500
(a)
Total Ecuador
3,759,405
Egypt — 0.1%
 
Egypt Government International Bond, Senior Notes
7.053%
1/15/32
700,000
662,100
(j)
El Salvador — 0.2%
El Salvador Government International Bond, Senior Notes
9.250%
4/17/30
440,000
458,234
(a)
El Salvador Government International Bond, Senior Notes
9.650%
11/21/54
900,000
956,880
(a)
Total El Salvador
1,415,114
Ethiopia — 0.1%
 
Ethiopia International Bond, Senior Notes
6.625%
12/11/26
560,000
573,627
(j)
See Notes to Schedule of Investments.

14
Western Asset Diversified Income Fund 2026 Quarterly Report

 Western Asset Diversified Income Fund
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Ghana — 0.1%
Ghana Government International Bond, Senior Notes
0.000%
7/3/26
7,760
 $7,629
(a)
Ghana Government International Bond, Senior Notes, Step bond
(5.000% to 7/3/28 then 6.000%)
5.000%
7/3/29
205,398
196,350
(a)
Ghana Government International Bond, Senior Notes, Step bond
(5.000% to 7/3/28 then 6.000%)
5.000%
7/3/35
337,560
288,758
(a)
Total Ghana
492,737
Ivory Coast — 0.4%
Ivory Coast Government International Bond, Senior Notes
7.625%
1/30/33
2,040,000
2,078,433
(a)
Ivory Coast Government International Bond, Senior Notes
8.250%
1/30/37
1,000,000
1,028,575
(a)
Total Ivory Coast
3,107,008
Jamaica — 0.1%
 
Jamaica Government International Bond, Senior Notes
9.625%
11/3/30
82,000,000
JMD
547,155
Kenya — 0.2%
Republic of Kenya Government International Bond, Senior Notes
8.000%
5/22/32
1,006,000
970,111
(a)
Republic of Kenya Government International Bond, Senior Notes
6.300%
1/23/34
550,000
458,191
(j)
Total Kenya
1,428,302
Mexico — 0.3%
Eagle Funding Luxco Sarl, Senior Notes
5.500%
8/17/30
1,150,000
1,157,475
(a)(b)
Mexican Bonos, Senior Notes
8.500%
5/31/29
23,320,000
MXN
1,300,223
Total Mexico
2,457,698
Mozambique — 0.0%††
 
Mozambique International Bond, Senior Notes
9.000%
9/15/31
460,000
345,876
(j)
Nigeria — 0.1%
 
Nigeria Government International Bond, Senior Notes
7.143%
2/23/30
940,000
948,797
(j)
Romania — 0.1%
 
Romanian Government International Bond, Senior Notes
7.500%
2/10/37
850,000
899,652
(a)
Senegal — 0.0%††
 
Senegal Government International Bond, Senior Notes
6.250%
5/23/33
550,000
294,328
(j)
South Africa — 0.2%
 
Republic of South Africa Government International Bond, Senior
Notes
6.125%
12/11/37
1,340,000
1,244,860
(a)
Sri Lanka — 0.1%
Sri Lanka Government International Bond, Senior Notes
4.000%
4/15/28
55,179
52,753
(a)
Sri Lanka Government International Bond, Senior Notes, Step
bond (3.100% to 7/15/27 then 3.350%)
3.100%
1/15/30
59,046
54,324
(a)
Sri Lanka Government International Bond, Senior Notes, Step
bond (3.350% to 9/15/27 then 3.600%)
3.350%
3/15/33
115,818
96,949
(a)
Sri Lanka Government International Bond, Senior Notes, Step
bond (3.600% to 12/15/27 then 5.100%)
3.600%
6/15/35
78,204
59,242
(a)
Sri Lanka Government International Bond, Senior Notes, Step
bond (3.600% to 11/15/27 then 3.850%)
3.600%
5/15/36
54,275
48,523
(a)
Sri Lanka Government International Bond, Senior Notes, Step
bond (3.600% to 8/15/27 then 3.850%)
3.600%
2/15/38
108,597
96,215
(a)
Total Sri Lanka
408,006
Supranational — 0.8%
 
International Bank for Reconstruction & Development, Senior
Notes
8.050%
5/10/28
227,000,000
UYU
5,627,989
See Notes to Schedule of Investments.

15
Western Asset Diversified Income Fund 2026 Quarterly Report

Schedule of Investments (unaudited) (cont’d)
March 31, 2026
 Western Asset Diversified Income Fund
(Percentages shown based on Fund net assets)
Security
 
Rate
Maturity
Date
Face
Amount†
Value
 
Turkey — 0.4%
 
Turkiye Ihracat Kredi Bankasi AS, Senior Notes
5.750%
7/6/26
3,200,000
 $3,207,816
(a)(p)
Ukraine — 0.1%
Ukraine Government International Bond, Senior Notes, Step bond
(0.000% to 2/1/27 then 3.000%)
0.000%
2/1/30
59,069
34,740
(j)
Ukraine Government International Bond, Senior Notes, Step bond
(0.000% to 2/1/27 then 3.000%)
0.000%
2/1/34
220,732
94,908
(j)
Ukraine Government International Bond, Senior Notes, Step bond
(4.500% to 2/1/27 then 6.000%)
4.500%
2/1/34
216,271
115,801
(j)
Ukraine Government International Bond, Senior Notes, Step bond
(0.000% to 2/1/27 then 3.000%)
0.000%
2/1/35
186,534
87,067
(j)
Ukraine Government International Bond, Senior Notes, Step bond
(4.500% to 2/1/27 then 6.000%)
4.500%
2/1/35
378,474
199,378
(j)
Ukraine Government International Bond, Senior Notes, Step bond
(0.000% to 2/1/27 then 3.000%)
0.000%
2/1/36
155,445
72,569
(j)
Ukraine Government International Bond, Senior Notes, Step bond
(4.500% to 2/1/27 then 6.000%)
4.500%
2/1/36
486,610
251,559
(j)
Total Ukraine
856,022
Uzbekistan — 0.1%
Republic of Uzbekistan International Bond, Senior Notes
3.900%
10/19/31
590,000
533,960
(j)
 
Total Sovereign Bonds (Cost — $47,280,534)
48,827,392
 
 
 
Shares
 
Preferred Stocks — 0.5%
Financials — 0.5%
Mortgage Real Estate Investment Trusts (REITs) — 0.5%
Chimera Investment Corp., Non Voting Shares (3 mo. Term SOFR +
5.005%)
8.705%
77,758
1,533,388
(f)
MFA Financial Inc., Non Voting Shares (3 mo. Term SOFR +
5.607%)
9.289%
107,413
2,273,933
(f)
 
Total Preferred Stocks (Cost — $4,369,237)
3,807,321
 
 
 
Maturity
Date
Face
Amount†
 
Convertible Bonds & Notes — 0.3%
Financials — 0.3%
Mortgage Real Estate Investment Trusts (REITs) — 0.3%
Blackstone Mortgage Trust Inc., Senior Notes
5.500%
3/15/27
2,000,000
1,990,000
 
Real Estate — 0.0%††
Real Estate Management & Development — 0.0%††
China Aoyuan Group Ltd., Senior Notes
0.000%
9/30/28
70,334
1,673
(j)
Country Garden Holdings Co. Ltd., Senior Notes
0.000%
12/31/31
2,628,484
294,128
(j)
 
Total Real Estate
295,801
Total Convertible Bonds & Notes (Cost — $2,302,321)
2,285,801
See Notes to Schedule of Investments.

16
Western Asset Diversified Income Fund 2026 Quarterly Report

 Western Asset Diversified Income Fund
(Percentages shown based on Fund net assets)
Security
 
 
Shares
Value
Common Stocks — 0.3%
Communication Services — 0.2%
Diversified Telecommunication Services — 0.2%
Altice France Luxco
61,743
 $1,050,859
*
 
Industrials — 0.0%††
Passenger Airlines — 0.0%††
Spirit Airlines LLC
977
244
*(g)(q)
Spirit Aviation Holdings Inc.
168,247
42,062
*
 
Total Industrials
42,306
Information Technology — 0.1%
Semiconductors & Semiconductor Equipment — 0.1%
VCI Asset Holdings 2 LLC
785,808
785,808
*(g)(h)
 
Real Estate — 0.0%††
Real Estate Management & Development — 0.0%††
China Aoyuan Group Ltd.
196,741
1,502
*(g)
Country Garden Holdings Co. Ltd.
10,500
430
*(g)
 
Total Real Estate
1,932
Total Common Stocks (Cost — $3,153,390)
1,880,905
 
 
Rate
Maturity
Date
Face
Amount†
 
Non-U.S. Treasury Inflation Protected Securities — 0.0%††
Uruguay — 0.0%††
Uruguay Government International Bond, Senior Notes
(Cost — $103,856)
3.400%
5/16/45
4,020,055
UYU
105,878
 
 
Expiration
Date
Rights
 
Rights — 0.0%††
Communication Services — 0.0%††
Diversified Telecommunication Services — 0.0%††
Altice France Luxco (Cost — $0)
5,018
73,951
*
 
 
 
 
Warrants
 
Warrants — 0.0%††
Industrials — 0.0%††
Passenger Airlines — 0.0%††
Spirit Airlines LLC (Cost — $1,455,203)
3/12/30
119,540
29,885
*(a)(g)(q)
Total Investments — 144.2% (Cost — $1,130,357,007)
1,057,976,420
Liabilities in Excess of Other Assets — (44.2)%
(324,392,376
)
Total Net Assets — 100.0%
$733,584,044
See Notes to Schedule of Investments.

17
Western Asset Diversified Income Fund 2026 Quarterly Report

Schedule of Investments (unaudited) (cont’d)
March 31, 2026
 Western Asset Diversified Income Fund
Face amount denominated in U.S. dollars, unless otherwise noted.
††
Represents less than 0.1%.
*
Non-income producing security.
(a)
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 Trustees.
(b)
All or a portion of this security is pledged as collateral pursuant to the loan agreement.
(c)
Securities traded on a when-issued or delayed delivery basis.
(d)
Payment-in-kind security for which the issuer has the option at each interest payment date of making interest payments in cash or additional securities.
(e)
Security has no maturity date. The date shown represents the next call date.
(f)
Variable rate security. Interest rate disclosed is as of the most recent information available. Certain variable rate securities are not based on a published
reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a
reference rate and spread in their description above.
(g)
Security is fair valued in accordance with procedures approved by the Board of Trustees(Note 1).
(h)
Security is valued using significant unobservable inputs(Note 1).
(i)
The coupon payment on this security is currently in default as of March 31, 2026.
(j)
Security is exempt from registration under Regulation S of the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of
the United States and do not involve direct selling efforts in the United States. This security has been deemed liquid pursuant to guidelines approved by the
Board of Trustees.
(k)
Collateralized mortgage obligations are secured by an underlying pool of mortgages or mortgage pass-through certificates that are structured to direct
payments on underlying collateral to different series or classes of the obligations. The interest rate may change positively or inversely in relation to one or
more interest rates, financial indices or other financial indicators and may be subject to an upper and/or lower limit.
(l)
Rate shown is the current yield based on income received over the trailing twelve months.
(m)
Interest rates disclosed represent the effective rates on senior loans. Ranges in interest rates are attributable to multiple contracts under the same loan.
(n)
Senior loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval from the agent bank and/or borrower
prior to the disposition of a senior loan.
(o)
All or a portion of this loan has not settled as of March 31, 2026. Interest rates are not effective until settlement date. Interest rates shown, if any, are for
the settled portion of the loan.
(p)
All or a portion of this security is held by the counterparty as collateral for open reverse repurchase agreements.
(q)
Restricted security (Note 3).
Abbreviation(s) used in this schedule:
BRL
Brazilian Real
CAS
Connecticut Avenue Securities
CDO
Collateralized Debt Obligation
CLO
Collateralized Loan Obligation
DIP
Debtor-in-possession
GBP
British Pound
IO
Interest Only
JMD
Jamaican Dollar
LIBOR
London Interbank Offered Rate
MXN
Mexican Peso
PIK
Payment-In-Kind
REMIC
Real Estate Mortgage Investment Conduit
SOFR
Secured Overnight Financing Rate
USD
United States Dollar
UYU
Uruguayan Peso
See Notes to Schedule of Investments.

18
Western Asset Diversified Income Fund 2026 Quarterly Report

 Western Asset Diversified Income Fund
At March 31, 2026, the Fund had the following open reverse repurchase agreements:
Counterparty
Rate
Effective
Date
Maturity
Date
Face Amount
of Reverse
Repurchase
Agreements
Asset Class
of Collateral*
Collateral
Value**
Goldman Sachs Group Inc.
4.250%
12/12/2025
TBD***
 $6,612,177
Sovereign Bonds
Cash
 $9,340,143
110,000
 
$6,612,177
$9,450,143
*
Refer to the Schedule of Investments for positions held at the counterparty as collateral for reverse repurchase agreements.
**
Including accrued interest.
***
TBD — To Be Determined; These reverse repurchase agreements have no maturity dates because they are renewed daily and can be terminated by either
the Fund or the counterparty in accordance with the terms of the agreements. The rates for these agreements are variable. The rate disclosed is the rate as
of March 31, 2026.
At March 31, 2026, the Fund had the following open written options contracts:
Exchange-Traded Written Options
Security
 
Expiration
Date
Strike
Price
Contracts
Notional
Amount
Value
U.S. Treasury 5-Year Notes Futures, Call
4/24/26
 $109.000
68
 $68
 $(12,219)
U.S. Treasury 5-Year Notes Futures, Put
4/24/26
107.000
68
68
(9,562)
Total Exchange-Traded Written Options (Premiums received — $30,827)
$(21,781)
At March 31, 2026, the Fund had the following open futures contracts:
 
 
 
Number of
Contracts
 
Expiration
Date
 
Notional
Amount
 
Market
Value
 
Unrealized
Appreciation
(Depreciation)
Contracts to Buy:
Euro-Bund
34
6/26
 $5,022,354
 $4,927,689
 $(94,665)
U.S. Treasury 5-Year Notes
184
6/26
19,831,998
19,905,063
73,065
U.S. Treasury 10-Year Notes
973
6/26
109,952,096
108,048,614
(1,903,482)
U.S. Treasury Long-Term Bonds
280
6/26
32,842,513
31,885,000
(957,513)
U.S. Treasury Ultra 10-Year Notes
170
6/26
19,723,741
19,297,657
(426,084)
 
(3,308,679)
Contracts to Sell:
3-Month SOFR
17
3/27
4,116,302
4,095,513
20,789
U.S. Treasury 2-Year Notes
150
6/26
31,360,281
31,116,797
243,484
U.S. Treasury Ultra Long-Term Bonds
169
6/26
20,229,536
19,699,062
530,474
 
794,747
Net unrealized depreciation on open futures contracts
$(2,513,932)
Abbreviation(s) used in this table:
SOFR
Secured Overnight Financing Rate
At March 31, 2026, the Fund had the following open forward foreign currency contracts:
Currency
Purchased
Currency
Sold
Counterparty
Settlement
Date
Unrealized
Appreciation
(Depreciation)
AUD
440,000
USD
302,777
Bank of America N.A.
4/16/26
 $739
AUD
440,879
USD
302,940
Bank of America N.A.
4/16/26
1,182
AUD
890,000
USD
608,292
Bank of America N.A.
4/16/26
5,638
EUR
4,273,611
USD
5,068,075
Bank of America N.A.
4/16/26
(124,498)
See Notes to Schedule of Investments.

19
Western Asset Diversified Income Fund 2026 Quarterly Report

Schedule of Investments (unaudited) (cont’d)
March 31, 2026
 Western Asset Diversified Income Fund
Currency
Purchased
Currency
Sold
Counterparty
Settlement
Date
Unrealized
Appreciation
(Depreciation)
JPY
73,010,000
USD
458,010
Bank of America N.A.
4/16/26
 $2,729
MXN
62,417,000
USD
3,504,354
Bank of America N.A.
4/16/26
(26,510)
USD
5,397,249
MXN
97,912,568
Bank of America N.A.
4/16/26
(58,390)
AUD
500,000
USD
353,357
BNP Paribas SA
4/16/26
(8,453)
AUD
1,010,000
USD
715,859
BNP Paribas SA
4/16/26
(19,152)
AUD
1,510,000
USD
1,072,366
BNP Paribas SA
4/16/26
(30,754)
EUR
400,000
USD
476,090
BNP Paribas SA
4/16/26
(13,383)
EUR
660,000
USD
781,649
BNP Paribas SA
4/16/26
(18,182)
EUR
1,067,403
USD
1,253,816
BNP Paribas SA
4/16/26
(19,078)
USD
943,175
EUR
800,000
BNP Paribas SA
4/16/26
17,760
USD
943,320
EUR
800,000
BNP Paribas SA
4/16/26
17,905
USD
1,383,921
EUR
1,167,447
BNP Paribas SA
4/16/26
33,456
USD
4,733,024
GBP
3,514,416
BNP Paribas SA
4/16/26
81,463
CNH
6,622,705
USD
957,068
Citibank N.A.
4/16/26
5,692
EUR
520,000
USD
605,415
Citibank N.A.
4/16/26
(3,896)
EUR
770,000
USD
896,555
Citibank N.A.
4/16/26
(5,844)
JPY
50,310,000
USD
319,892
Citibank N.A.
4/16/26
(2,404)
JPY
50,310,000
USD
320,002
Citibank N.A.
4/16/26
(2,514)
JPY
50,310,000
USD
319,887
Citibank N.A.
4/16/26
(2,399)
JPY
60,358,000
USD
383,655
Citibank N.A.
4/16/26
(2,758)
JPY
125,770,000
USD
801,770
Citibank N.A.
4/16/26
(8,082)
JPY
125,770,000
USD
802,010
Citibank N.A.
4/16/26
(8,322)
JPY
125,770,000
USD
802,098
Citibank N.A.
4/16/26
(8,410)
USD
509,562
AUD
740,000
Citibank N.A.
4/16/26
(897)
USD
774,228
CAD
1,065,003
Citibank N.A.
4/16/26
8,103
USD
483,363
EUR
410,000
Citibank N.A.
4/16/26
9,088
USD
533,091
EUR
452,790
Citibank N.A.
4/16/26
9,318
USD
1,072,665
EUR
910,000
Citibank N.A.
4/16/26
20,006
USD
1,901,361
EUR
1,620,319
Citibank N.A.
4/16/26
27,028
AUD
220,505
USD
154,397
JPMorgan Chase & Co.
4/16/26
(2,291)
AUD
410,000
USD
289,476
JPMorgan Chase & Co.
4/16/26
(6,654)
AUD
410,000
USD
289,068
JPMorgan Chase & Co.
4/16/26
(6,246)
AUD
610,000
USD
431,398
JPMorgan Chase & Co.
4/16/26
(10,615)
AUD
620,000
USD
434,265
JPMorgan Chase & Co.
4/16/26
(6,583)
AUD
5,697,203
USD
3,839,419
JPMorgan Chase & Co.
4/16/26
90,563
CNH
6,590,000
USD
952,285
JPMorgan Chase & Co.
4/16/26
5,721
EUR
370,000
USD
429,255
JPMorgan Chase & Co.
4/16/26
(1,251)
JPY
73,460,000
USD
461,264
JPMorgan Chase & Co.
4/16/26
2,315
JPY
91,820,000
USD
578,058
JPMorgan Chase & Co.
4/16/26
1,384
USD
170,958
AUD
250,000
JPMorgan Chase & Co.
4/16/26
(1,495)
USD
181,426
AUD
265,286
JPMorgan Chase & Co.
4/16/26
(1,570)
USD
340,770
AUD
500,000
JPMorgan Chase & Co.
4/16/26
(4,135)
USD
504,167
AUD
740,000
JPMorgan Chase & Co.
4/16/26
(6,292)
USD
806,062
AUD
1,200,000
JPMorgan Chase & Co.
4/16/26
(21,709)
USD
1,428,007
AUD
2,065,410
JPMorgan Chase & Co.
4/16/26
3,269
USD
1,906,495
CNH
13,212,705
JPMorgan Chase & Co.
4/16/26
(14,270)
USD
2,569,658
BRL
13,578,845
JPMorgan Chase & Co.
6/2/26
(16,229)
Net unrealized depreciation on open forward foreign currency contracts
$(119,907)
Abbreviation(s) used in this table:
AUD
Australian Dollar
See Notes to Schedule of Investments.

20
Western Asset Diversified Income Fund 2026 Quarterly Report

 Western Asset Diversified Income Fund
BRL
Brazilian Real
CAD
Canadian Dollar
CNH
Chinese Offshore Yuan
EUR
Euro
GBP
British Pound
JPY
Japanese Yen
MXN
Mexican Peso
USD
United States Dollar
At March 31, 2026, the Fund had the following open swap contracts:
 
OTC INTEREST RATE SWAPS
Swap Counterparty
Notional
Amount*
Termination
Date
Payments
Made by
the Fund
Payments
Received by
the Fund
Market
Value
Upfront
Premiums
Paid
(Received)
Unrealized
Depreciation
JPMorgan Chase & Co.
63,990,000BRL
1/2/29
BRL-CDI**
10.230%**
 $(1,381,206)
 $
 $(1,381,206)
 
CENTRALLY CLEARED INTEREST RATE SWAPS
 
Notional
Amount*
Termination
Date
Payments
Made by
the Fund
Payments
Received by
the Fund
Market
Value
Upfront
Premiums
Paid
(Received)
Unrealized
Appreciation
 
173,910,000MXN
11/10/34
28-Day MXN TIIE - Banxico
every 28 days
8.885%
every 28 days
 $276,720
 $
 $276,720
 
CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CORPORATE ISSUES — SELL PROTECTION1
Reference Entity
Notional
Amount2
Termination
Date
Implied
Credit
Spread at
March 31,
20263
Periodic
Payments
Received by
the Fund
Market
Value
Upfront
Premiums
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
Caesars Entertainment Inc.,
4.625%, due 10/15/29
 $1,123,000
6/20/30
3.027%
5.000% quarterly
 $81,682
 $104,567
 $(22,885)
Nabors Industries Inc., 9.125%,
due 1/31/30
604,000
6/20/29
1.889%
1.000% quarterly
(15,918)
(70,934)
55,016
Total
$1,727,000
$65,764
$33,633
$32,131
 
CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CORPORATE ISSUES — BUY PROTECTION4
Reference Entity
Notional
Amount2
Termination
Date
Implied
Credit
Spread at
March 31,
20263
Periodic
Payments
Made by
the Fund
Market
Value
Upfront
Premiums
Paid
(Received)
Unrealized
Depreciation
MGM Resorts International,
4.750%, due 10/15/28
 $1,123,000
6/20/30
1.752%
5.000% quarterly
 $(138,149)
 $(127,925)
 $(10,224)
Transocean Inc., 8.000%, due
2/1/27
604,000
6/20/29
1.607%
1.000% quarterly
10,946
44,370
(33,424)
Total
$1,727,000
$(127,203)
$(83,555)
$(43,648)
See Notes to Schedule of Investments.

21
Western Asset Diversified Income Fund 2026 Quarterly Report

Schedule of Investments (unaudited) (cont’d)
March 31, 2026
 Western Asset Diversified Income Fund
 
CENTRALLY CLEARED CREDIT DEFAULT SWAPS ON CREDIT INDICES — BUY PROTECTION4
Reference Entity
Notional
Amount2
Termination
Date
Periodic
Payments
Made by
the Fund
Market
Value5
Upfront
Premiums
Paid
(Received)
Unrealized
Depreciation
Markit CDX.NA.HY.46 Index
 $3,310,100
6/20/31
5.000% quarterly
 $(158,589)
 $(130,283)
 $(28,306)
 
OTC TOTAL RETURN SWAPS
Swap
Counterparty
Notional
Amount
Termination
Date
Periodic
Payments
Made by
the Fund
Periodic
Payments
Received by
the Fund
Market
Value
Upfront
Premiums
Paid
(Received)
Unrealized
Depreciation
JPMorgan Chase & Co.
 $29,841
4/9/26
Daily SOFR
Compound +
1.100%**
JPEIFNTR^**
 $(181,827)
$(181,827)
1
If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to
the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities
comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the
recovery value of the referenced obligation or underlying securities comprising the referenced index.
2
The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event
occurs as defined under the terms of that particular swap agreement.
3
Implied credit spreads, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end, serve
as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied
credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter
into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or
other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for
the referenced entity or obligation.
4
If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive
from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or the underlying securities
comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the
recovery value of the referenced obligation or the underlying securities comprising the referenced index.
5
The quoted market prices and resulting values for credit default swap agreements on asset-backed securities and credit indices serve as an indicator of the
current status of the payment/performance risk and represent the likelihood of an expected loss (or profit) for the credit derivative had the notional amount
of the swap agreement been closed/sold as of the period end. Decreasing market values (sell protection) or increasing market values (buy protection), when
compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of
default or other credit event occurring as defined under the terms of the agreement.
Percentage shown is an annual percentage rate.
Periodic payments made/received by the Fund are based on the total return of the referenced entity.
^
Custom emerging markets debt basket is comprised of 41 bonds in the Sovereign Frontier sector.
*
Notional amount denominated in U.S. dollars, unless otherwise noted.
**
One time payment made at termination date.
Reference rate(s) and their value(s) as of period end used in this table:
Reference Index
Reference
Rate
28-Day MXN TIIE - Banxico
7.057%
BRL-CDI
14.650%
Daily SOFR Compound
3.680%
Abbreviation(s) used in this table:
BRL
Brazilian Real
BRL-CDI
Brazilian Cetip InterBank Deposit Rate
JPEIFNTR
Western Asset Management Emerging Markets Frontier Custom Basket
See Notes to Schedule of Investments.

22
Western Asset Diversified Income Fund 2026 Quarterly Report

 Western Asset Diversified Income Fund
MXN
Mexican Peso
SOFR
Secured Overnight Financing Rate
TIIE
Tasa de Intere’s Interbancaria de Equilibrio (Equilibrium Interbanking Interest Rate)
This Schedule of Investments is unaudited and is intended to provide information about the Fund’s investments 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.

23
Western Asset Diversified Income Fund 2026 Quarterly Report

Notes to Schedule of Investments (unaudited)
1. Organization and significant accounting policies
Western Asset Diversified Income Fund (the “Fund”) was organized in Maryland on July 27, 2020 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 Trustees (the Board) has authorized the issuance of an unlimited number of common shares of beneficial interest, $0.001 par value per share (the “Common Shares”). The Fund’s primary investment objective is to seek high current income. As a secondary investment objective, the Fund will seek capital appreciation. The Fund seeks to achieve its investment objectives by investing, under normal market conditions, across fixed income sectors and securities in seeking to deliver a well-diversified portfolio. The Fund expects to dissolve on or about June 24, 2033 (the “Dissolution Date”); provided that the Board may, without shareholder approval, extend the Dissolution Date for up to two years. As of a date within the 6-18 months preceding the Dissolution Date, the Board may cause the Fund to conduct a tender offer to all shareholders to purchase 100% of the then outstanding Common Shares of the Fund at a price equal to the NAV per Common Share on the expiration date of the tender offer (the “Eligible Tender Offer”). The Board has established that the Fund must have at least $200 million of aggregate net assets immediately following the completion of an Eligible Tender Offer to ensure the continued viability of the Fund (the “Dissolution Threshold”). In an Eligible Tender Offer, the Fund will offer to purchase all Common Shares held by each Common Shareholder; provided that if the payment for properly tendered Common Shares would result in the Fund having aggregate net assets below the Dissolution Threshold, the Eligible Tender Offer will be canceled, no Common Shares will be repurchased and the Fund will dissolve as scheduled. If an Eligible Tender Offer is conducted and the payment for properly tendered Common Shares would result in the Fund having aggregate net assets greater than or equal to the Dissolution Threshold, all Common Shares properly tendered and not withdrawn will be purchased by the Fund pursuant to the terms of the Eligible Tender Offer. Following the completion of an Eligible Tender Offer, the Board may eliminate the Dissolution Date without shareholder approval and provide for the Fund’s perpetual existence.  Upon its dissolution, it is anticipated that the Fund will have distributed substantially all of its net assets to shareholders, although securities for which no market exists or securities trading at depressed prices, if any, may be placed in a liquidating trust.
The Fund follows the accounting and reporting guidance in Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services Investment Companies (ASC 946). The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”), including, but not limited to, ASC 946.
(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 typically 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. 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. Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund will normally use the currency exchange rates as of 4:00 p.m. (Eastern Time). 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 Board.
Pursuant to policies adopted by the Board, the Fund’s manager has been designated as the valuation designee and is responsible for the oversight of the daily valuation process. The Fund’s manager is assisted by the Global Fund Valuation Committee (the Valuation Committee). The Valuation Committee is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Fund’s manager and the Board. 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.

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Western Asset Diversified Income Fund 2026 Quarterly Report

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, 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 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.
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 — unadjusted 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
Long-Term Investments†:
Corporate Bonds & Notes:
Energy
 $84,920,623
 $4,653,374
 $89,573,997
Other Corporate Bonds & Notes
441,901,068
441,901,068
Collateralized Mortgage Obligations
189,723,478
189,723,478
Asset-Backed Securities
171,730,516
37
171,730,553
Senior Loans:
Consumer Discretionary
19,846,281
3,963,299
23,809,580
Industrials
4,854,716
2,385,434
7,240,150
Other Senior Loans
76,986,461
76,986,461
Sovereign Bonds
48,827,392
48,827,392
Preferred Stocks
 $3,807,321
3,807,321
Convertible Bonds & Notes
2,285,801
2,285,801
Common Stocks:
Industrials
42,062
244
42,306
Information Technology
785,808
785,808
Other Common Stocks
1,052,791
1,052,791
Non-U.S. Treasury Inflation Protected Securities
105,878
105,878
Rights
73,951
73,951

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Western Asset Diversified Income Fund 2026 Quarterly Report

Notes to Schedule of Investments (unaudited) (cont’d)
ASSETS (cont’d)
Description
Quoted Prices
(Level 1)
Other Significant
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
Warrants
 $29,885
 $29,885
Total Investments
$3,849,383
$1,042,339,085
$11,787,952
$1,057,976,420
Other Financial Instruments:
Futures Contracts††
 $867,812
 $867,812
Forward Foreign Currency Contracts††
 $343,359
343,359
Centrally Cleared Interest Rate Swaps††
276,720
276,720
Centrally Cleared Credit Default Swaps on Corporate Issues —
Sell Protection††
55,016
55,016
Total Other Financial Instruments
$867,812
$675,095
$1,542,907
Total
$4,717,195
$1,043,014,180
$11,787,952
$1,059,519,327
LIABILITIES
Description
Quoted Prices
(Level 1)
Other Significant
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
Other Financial Instruments:
Written Options
 $21,781
 $21,781
Futures Contracts††
3,381,744
3,381,744
Forward Foreign Currency Contracts††
 $463,266
463,266
OTC Interest Rate Swaps
1,381,206
1,381,206
Centrally Cleared Credit Default Swaps on Corporate Issues —
Sell Protection††
22,885
22,885
Centrally Cleared Credit Default Swaps on Corporate Issues —
Buy Protection††
43,648
43,648
Centrally Cleared Credit Default Swaps on Credit Indices — Buy
Protection††
28,306
28,306
OTC Total Return Swaps
181,827
181,827
Total
$3,403,525
$2,121,138
$5,524,663
See Schedule of Investments for additional detailed categorizations.
††
Reflects the unrealized appreciation (depreciation) of the instruments.
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value: 
Investments in
Securities
Balance
as of
December 31, 2025
Accrued
premiums/
discounts
Realized
gain
(loss)
Change in
unrealized
appreciation
(depreciation)1
Purchases
Corporate Bonds &
Notes:
Energy
 $4,653,297
 $3,180
 $(3,103
)
Asset-Backed
Securities
Senior Loans:
Consumer
Discretionary
4,007,797
6,864
(208,947
)
 $4,010,294
Financials
3,280,764
(1,301
)
 $(42
)
(19,169
)
Industrials
1,796,449
890,721
(520,897
)
219,161
1,019,196
Common Stocks:
Information
Technology
785,808
Total
$13,738,307
$899,464
$(520,939
)
$(12,058
)
$5,815,298

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Western Asset Diversified Income Fund 2026 Quarterly Report


Investments in
Securities (cont’d)
Sales
Transfers
into
Level 32
Transfers
out of
Level 33
Balance
as of
March 31, 2026
Net change
in unrealized
appreciation
(depreciation) for
investments
in securities
still held at
March 31, 20261
Corporate Bonds &
Notes:
Energy
 $4,653,374
 $(3,103
)
Asset-Backed
Securities
 $37
37
Senior Loans:
Consumer
Discretionary
 $(3,852,710
)
3,963,299
(70,906
)
Financials
(10,802
)
 $(3,249,450
)
Industrials
(1,019,196
)
2,385,434
219,161
Common Stocks:
Information
Technology
785,808
Total
$(4,882,708
)
$37
$(3,249,450
)
$11,787,952
$145,152
1
Change in unrealized appreciation (depreciation) includes net unrealized appreciation (depreciation) resulting from changes in investment values during the
reporting period and the reversal of previously recorded unrealized appreciation (depreciation) when gains or losses are realized.
2
Transferred into Level 3 as a result of the unavailability of a quoted price in an active market for an identical investment or the unavailability of other
significant observable inputs in the valuation obtained from independent third party pricing services or broker/dealer quotations.
3
Transferred out of Level 3 as a result of the availability of a quoted price in an active market for an identical investment or the availability of other
significant observable inputs.
2. Transactions with affiliated company
As defined by the 1940 Act, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control with the Fund. The following company was considered an affiliated company for all or some portion of the period ended March 31, 2026. The following transactions were effected in such company for the period ended March 31, 2026.
 
Affiliate
Value at

December 31,
2025
Purchased
Sold
Cost
Shares
Proceeds
Shares
Western Asset Premier
Institutional Government
Reserves, Premium
Shares
 $70,528,045
70,528,045
 $70,528,045
70,528,045

(cont’d)
Realized
Gain (Loss)
Dividend
Income
Net Increase
(Decrease) in
Unrealized
Appreciation
(Depreciation)
Affiliate
Value at
March 31,
2026
Western Asset Premier
Institutional Government
Reserves, Premium Shares
 $60,278

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Western Asset Diversified Income Fund 2026 Quarterly Report

Notes to Schedule of Investments (unaudited) (cont’d)
3. Restricted securities
The following Fund investments are restricted as to resale and, in the absence of readily ascertainable market values, are fair valued in accordance with procedures approved by the Board. 
Security
Number of
Shares/
Warrants
Acquisition
Date
Cost
FairValue
at 3/31/2026
Value Per
Share/Warrant
Percent of
Net Assets
Spirit Airlines LLC, Common Shares
977
3/25
 $11,893
 $244
 $0.25
0.00
 %(a)
Spirit Airlines LLC, Warrants
119,540
3/25
1,455,203
29,885
(b)
0.25
0.00
(a)
Total
$1,467,096
$30,129
0.00
%(a)
(a)
Amount represents less than 0.005%.
(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.

28
Western Asset Diversified Income Fund 2026 Quarterly Report