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
811-04254
Legg Mason Partners Income Trust
(Exact name of registrant as specified in charter)
620 Eighth Avenue, 49
th
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)
Registrants telephone number, including area code: 1-877-721-1926
Date of fiscal year end:
February 28
Date of reporting period:
May 31, 2013
ITEM 1.
|
SCHEDULE OF INVESTMENTS.
|
LEGG MASON PARTNERS INCOME TRUST
WESTERN ASSET CALIFORNIA MUNICIPALS FUND
FORM N-Q
MAY 31, 2013
WESTERN ASSET CALIFORNIA MUNICIPALS FUND
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Schedule of Investments (unaudited)
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May 31, 2013
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SECURITY
|
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RATE
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MATURITY
DATE
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FACE
AMOUNT
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VALUE
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MUNICIPAL BONDS - 99.2%
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|
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|
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Education - 3.1%
|
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|
|
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|
|
|
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|
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|
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|
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California EFA Revenue, Occidental College
|
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|
5.300
|
%
|
|
|
10/1/38
|
|
|
$
|
8,320,000
|
|
|
$
|
9,258,829
|
|
California Municipal Finance Authority Revenue, Biola University
|
|
|
5.800
|
%
|
|
|
10/1/28
|
|
|
|
2,500,000
|
|
|
|
2,804,825
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California State School Finance Authority, Educational Facilities Revenue, New Designs Charter School
|
|
|
5.250
|
%
|
|
|
6/1/32
|
|
|
|
4,000,000
|
|
|
|
4,037,080
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California State Statewide CDA, Student Housing Revenue, Provident Group-Pomona Properties LLC
|
|
|
5.750
|
%
|
|
|
1/15/45
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|
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|
1,475,000
|
|
|
|
1,460,043
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California State University Revenue, Systemwide, AGM
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|
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5.000
|
%
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|
11/1/39
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|
|
|
4,000,000
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|
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4,362,320
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Total Education
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21,923,097
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Health Care - 16.5%
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ABAG Finance Authority for Nonprofit Corp., CA, Revenue, Sharp Healthcare
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6.250
|
%
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|
8/1/39
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|
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|
7,500,000
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|
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8,691,300
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California Health Facilities Financing Authority Revenue:
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|
|
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Cedars-Sinai Medical Center
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5.000
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%
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8/15/39
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|
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3,000,000
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3,234,630
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Providence Health & Services
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6.500
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%
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10/1/38
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3,680,000
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4,360,726
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Stanford Hospital & Clinics
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5.250
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%
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11/15/40
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7,500,000
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8,382,450
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California Statewide CDA Revenue:
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Catholic Healthcare West
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5.500
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%
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7/1/30
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|
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4,940,000
|
|
|
|
5,475,941
|
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Catholic Healthcare West
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5.625
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%
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7/1/35
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6,000,000
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6,616,980
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Enloe Medical Center, CMI
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6.250
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%
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8/15/33
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|
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17,475,000
|
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20,545,357
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FHA, Methodist Hospital Project
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6.750
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%
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2/1/38
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8,930,000
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10,649,471
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Health Facility Adventist Health System
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5.000
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%
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3/1/35
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4,000,000
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4,147,480
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Health Facility Los Angeles Jewish Home for the Aging, CMI
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5.000
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%
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11/15/37
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6,035,000
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6,366,865
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John Muir Health
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5.125
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%
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7/1/39
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7,000,000
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7,374,360
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Kaiser Permanente
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5.000
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%
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4/1/42
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5,000,000
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5,406,950
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St. Joseph Health System, NATL
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|
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5.125
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%
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7/1/24
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5,695,000
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6,449,303
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Newport Beach, CA, Revenue, Hoag Memorial Hospital Presbyterian
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6.000
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%
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12/1/40
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|
5,500,000
|
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6,618,700
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Palomar, CA, Pomerado Health Care District, COP
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|
6.625
|
%
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11/1/29
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10,000,000
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11,403,300
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Total Health Care
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115,723,813
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Housing - 0.1%
|
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California Housing Finance Agency Revenue, MFH III, NATL
|
|
|
5.850
|
%
|
|
|
8/1/17
|
|
|
|
665,000
|
|
|
|
665,472
|
(a)
|
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Industrial Revenue - 14.8%
|
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California PCFA Revenue, San Diego Gas & Electric Co.
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|
|
6.800
|
%
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|
6/1/15
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|
|
|
1,500,000
|
|
|
|
1,632,015
|
(a)
|
Chula Vista, CA, IDR, San Diego Gas & Electric Co.
|
|
|
5.875
|
%
|
|
|
2/15/34
|
|
|
|
16,610,000
|
|
|
|
19,608,769
|
|
Long Beach, CA, Bond Finance Authority, Natural Gas Purchase Revenue
|
|
|
5.000
|
%
|
|
|
11/15/29
|
|
|
|
2,500,000
|
|
|
|
2,802,300
|
|
Long Beach, CA, Bond Finance Authority, Natural Gas Purchase Revenue
|
|
|
5.500
|
%
|
|
|
11/15/37
|
|
|
|
10,970,000
|
|
|
|
12,893,590
|
|
M-S-R Energy Authority, CA, Gas Revenue
|
|
|
6.500
|
%
|
|
|
11/1/39
|
|
|
|
35,000,000
|
|
|
|
46,210,150
|
|
Southern California Public Power Authority, Project No. 1
|
|
|
5.000
|
%
|
|
|
11/1/33
|
|
|
|
12,410,000
|
|
|
|
13,943,628
|
|
Virgin Islands Public Finance Authority Revenue, Matching Fund Loan
|
|
|
6.625
|
%
|
|
|
10/1/29
|
|
|
|
6,000,000
|
|
|
|
6,810,780
|
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Total Industrial Revenue
|
|
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|
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103,901,232
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See
Notes to Schedule of Investments.
1
WESTERN ASSET CALIFORNIA MUNICIPALS FUND
|
|
|
Schedule of Investments (unaudited) (contd)
|
|
May 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SECURITY
|
|
RATE
|
|
|
MATURITY
DATE
|
|
|
FACE
AMOUNT
|
|
|
VALUE
|
|
Leasing - 6.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Anaheim, CA, COP, Regular Fixed Option Bonds, NATL
|
|
|
6.200
|
%
|
|
|
7/16/23
|
|
|
$
|
2,000,000
|
|
|
$
|
2,002,620
|
|
California State Public Works Board, Lease Revenue, Department of Corrections, NATL
|
|
|
5.000
|
%
|
|
|
9/1/21
|
|
|
|
2,500,000
|
|
|
|
2,506,925
|
|
Escondido, CA, Union High School District, COP, NATL/FGIC
|
|
|
5.000
|
%
|
|
|
9/1/37
|
|
|
|
15,000
|
|
|
|
15,367
|
|
Los Angeles, CA, Convention & Exhibition Center Authority, Lease Revenue
|
|
|
5.125
|
%
|
|
|
8/15/22
|
|
|
|
4,000,000
|
|
|
|
4,518,760
|
|
Lower Tule River, CA, Irrigation District Revenue, COP
|
|
|
5.000
|
%
|
|
|
8/1/40
|
|
|
|
6,000,000
|
|
|
|
6,118,920
|
|
Modesto, CA, Irrigation District, COP, Capital Improvements
|
|
|
5.750
|
%
|
|
|
10/1/34
|
|
|
|
15,000,000
|
|
|
|
17,050,500
|
|
Palm Springs, CA, Financing Authority, Lease Revenue, Convention Center Project, NATL
|
|
|
5.500
|
%
|
|
|
11/1/29
|
|
|
|
4,500,000
|
|
|
|
4,681,980
|
|
San Mateo County, CA, Joint Powers Financing Authority, Lease Revenue, Youth Services Campus
|
|
|
5.000
|
%
|
|
|
7/15/36
|
|
|
|
2,000,000
|
|
|
|
2,196,120
|
|
Santa Ana, CA Financing Authority, Lease Revenue, Police Administration & Holding Facility, NATL
|
|
|
6.250
|
%
|
|
|
7/1/24
|
|
|
|
2,875,000
|
|
|
|
3,266,345
|
|
Southern California Water Replenishment District Revenue, COP
|
|
|
6.000
|
%
|
|
|
8/1/38
|
|
|
|
5,340,000
|
|
|
|
6,146,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Leasing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
48,504,037
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local General Obligation - 1.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corona-Norca, CA, USD, GO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AGM
|
|
|
0.000
|
%
|
|
|
8/1/39
|
|
|
|
18,000,000
|
|
|
|
4,971,780
|
|
AGM
|
|
|
5.500
|
%
|
|
|
8/1/39
|
|
|
|
5,000,000
|
|
|
|
5,637,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Local General Obligation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,609,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other - 1.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
California State MFA Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill Industries Sacramento Valley & Northern Nevada Project
|
|
|
6.625
|
%
|
|
|
1/1/32
|
|
|
|
1,000,000
|
|
|
|
1,088,130
|
|
Goodwill Industries Sacramento Valley & Northern Nevada Project
|
|
|
6.875
|
%
|
|
|
1/1/42
|
|
|
|
2,000,000
|
|
|
|
2,174,460
|
|
Pomona, CA, PFA Revenue, Merged Redevelopment Project, Tax Allocation, NATL
|
|
|
5.000
|
%
|
|
|
2/1/21
|
|
|
|
5,550,000
|
|
|
|
5,411,916
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,674,506
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Power - 3.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Imperial Irrigation District, CA, Electric Revenue
|
|
|
5.125
|
%
|
|
|
11/1/38
|
|
|
|
7,690,000
|
|
|
|
8,459,308
|
|
Imperial Irrigation District, CA, Electric Revenue
|
|
|
5.500
|
%
|
|
|
11/1/41
|
|
|
|
6,000,000
|
|
|
|
6,652,800
|
|
Puerto Rico Electric Power Authority, Power Revenue
|
|
|
5.250
|
%
|
|
|
7/1/40
|
|
|
|
2,300,000
|
|
|
|
2,286,752
|
|
Santa Clara, CA, Electric Revenue
|
|
|
5.375
|
%
|
|
|
7/1/29
|
|
|
|
1,555,000
|
|
|
|
1,792,697
|
|
Santa Clara, CA, Electric Revenue
|
|
|
5.000
|
%
|
|
|
7/1/30
|
|
|
|
3,500,000
|
|
|
|
3,923,815
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Power
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23,115,372
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-Refunded/Escrowed to Maturity - 20.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
California Health Facilities Financing Authority Revenue, Providence Health & Services
|
|
|
6.500
|
%
|
|
|
10/1/38
|
|
|
|
70,000
|
|
|
|
89,821
|
(b)
|
Contra Costa County, CA, Home Mortgage Revenue, Mortgage-Backed Securities Program, GNMA-Collateralized
|
|
|
7.750
|
%
|
|
|
5/1/22
|
|
|
|
220,000
|
|
|
|
282,234
|
(a)(c)
|
Lodi, CA, Wastewater Systems Revenue, COP, NATL
|
|
|
5.000
|
%
|
|
|
10/1/23
|
|
|
|
1,720,000
|
|
|
|
1,828,240
|
(b)
|
Martinez, CA, Home Mortgage Revenue, UGRIC
|
|
|
10.750
|
%
|
|
|
2/1/16
|
|
|
|
35,000
|
|
|
|
40,058
|
(c)
|
See
Notes to Schedule of Investments.
2
WESTERN ASSET CALIFORNIA MUNICIPALS FUND
|
|
|
Schedule of Investments (unaudited) (contd)
|
|
May 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SECURITY
|
|
RATE
|
|
|
MATURITY
DATE
|
|
|
FACE
AMOUNT
|
|
|
VALUE
|
|
Pre-Refunded/Escrowed to Maturity - continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ontario, CA, Redevelopment Financing Authority Revenue, Ontario Redevelopment Project No. 1, NATL
|
|
|
5.800
|
%
|
|
|
8/1/23
|
|
|
$
|
2,670,000
|
|
|
$
|
3,148,491
|
(c)
|
Pleasanton-Suisan City, CA, HFA Home Mortgage Revenue, Municipal Multiplier 1984, NATL
|
|
|
0.000
|
%
|
|
|
10/1/16
|
|
|
|
6,000,000
|
|
|
|
5,868,120
|
(c)
|
Redding, CA, Electric System Revenue, COP, Regular Linked SAVRS & RIBS, NATL
|
|
|
6.368
|
%
|
|
|
7/1/22
|
|
|
|
1,670,000
|
|
|
|
2,034,795
|
(c)
|
Riverside County, CA, Single-Family Revenue, Mortgage-Backed Securities Program, GNMA-Collateralized
|
|
|
7.800
|
%
|
|
|
5/1/21
|
|
|
|
1,000,000
|
|
|
|
1,425,740
|
(a)(c)
|
Sacramento County, CA, Single-Family Mortgage Revenue, Issue A, GNMA-Collateralized
|
|
|
8.000
|
%
|
|
|
7/1/16
|
|
|
|
1,500,000
|
|
|
|
1,818,405
|
(a)(c)
|
San Bernardino County, CA, COP, Capital Facilities Project
|
|
|
6.875
|
%
|
|
|
8/1/24
|
|
|
|
2,000,000
|
|
|
|
2,753,400
|
(c)
|
San Francisco, CA, Airport Improvement Corp., Lease Revenue, United Airlines Inc.
|
|
|
8.000
|
%
|
|
|
7/1/13
|
|
|
|
20,000
|
|
|
|
20,111
|
(c)
|
San Joaquin Hills, CA, Transportation Corridor Agency, Toll Road Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior Lien
|
|
|
0.000
|
%
|
|
|
1/1/16
|
|
|
|
60,000,000
|
|
|
|
59,022,000
|
(c)
|
Senior Lien
|
|
|
0.000
|
%
|
|
|
1/1/17
|
|
|
|
17,500,000
|
|
|
|
16,839,375
|
(c)
|
Senior Lien
|
|
|
0.000
|
%
|
|
|
1/1/18
|
|
|
|
25,000,000
|
|
|
|
23,669,250
|
(c)
|
Senior Lien
|
|
|
0.000
|
%
|
|
|
1/1/19
|
|
|
|
20,000,000
|
|
|
|
18,422,400
|
(c)
|
San Marcos, CA, PFA, Public Facilities Revenue
|
|
|
0.000
|
%
|
|
|
1/1/19
|
|
|
|
4,310,000
|
|
|
|
3,911,196
|
(c)
|
Sequoia, CA, Hospital District Revenue
|
|
|
5.375
|
%
|
|
|
8/15/23
|
|
|
|
1,250,000
|
|
|
|
1,423,037
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Pre-Refunded/Escrowed to Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
142,596,673
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special Tax Obligation - 10.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corona-Norco, CA, USD, Special Tax, Community Facilities District No. 98-1, NATL
|
|
|
5.500
|
%
|
|
|
9/1/33
|
|
|
|
5,000,000
|
|
|
|
5,006,850
|
|
La Quinta, CA, RDA, Tax Allocation, Redevelopment Project, Area No. 1, AMBAC
|
|
|
5.125
|
%
|
|
|
9/1/32
|
|
|
|
6,500,000
|
|
|
|
6,541,730
|
|
Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue
|
|
|
5.750
|
%
|
|
|
8/1/37
|
|
|
|
5,000,000
|
|
|
|
5,349,100
|
|
Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue
|
|
|
5.000
|
%
|
|
|
8/1/40
|
|
|
|
5,000,000
|
|
|
|
5,277,050
|
|
Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue
|
|
|
5.250
|
%
|
|
|
8/1/41
|
|
|
|
4,950,000
|
|
|
|
5,156,217
|
|
Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue
|
|
|
5.500
|
%
|
|
|
8/1/42
|
|
|
|
10,000,000
|
|
|
|
10,551,400
|
|
Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue
|
|
|
5.000
|
%
|
|
|
8/1/46
|
|
|
|
2,000,000
|
|
|
|
2,103,780
|
|
Rancho Cucamonga, CA, RDA, Tax Allocation, Rancho Development Project, AGM, Refunding
|
|
|
5.250
|
%
|
|
|
9/1/20
|
|
|
|
1,500,000
|
|
|
|
1,503,360
|
|
Riverside County, CA, Transportation Commission Sales Tax Revenue, Ltd. Tax
|
|
|
5.000
|
%
|
|
|
6/1/32
|
|
|
|
20,000,000
|
|
|
|
21,703,600
|
|
Sacramento, CA, Area Flood Control Agency, Consolidated Capital Assessment District, BHAC
|
|
|
5.625
|
%
|
|
|
10/1/37
|
|
|
|
10,000,000
|
|
|
|
11,245,300
|
|
Santa Margarita-Dana Point, CA, Authority Revenue, Water Improvement Districts 3, 3A, 4, & 4A, NATL
|
|
|
7.250
|
%
|
|
|
8/1/14
|
|
|
|
1,500,000
|
|
|
|
1,585,545
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Special Tax Obligation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
76,023,932
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation - 18.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bay Area Toll Authority, CA, Toll Bridge Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
San Francisco Bay Area
|
|
|
1.220
|
%
|
|
|
4/1/24
|
|
|
|
2,000,000
|
|
|
|
2,014,220
|
(d)(e)
|
San Francisco Bay Area
|
|
|
5.000
|
%
|
|
|
4/1/34
|
|
|
|
4,175,000
|
|
|
|
4,642,224
|
|
San Francisco Bay Area
|
|
|
5.000
|
%
|
|
|
4/1/39
|
|
|
|
15,815,000
|
|
|
|
17,396,184
|
|
Fresno, CA, Airport Revenue, AGM
|
|
|
5.500
|
%
|
|
|
7/1/30
|
|
|
|
1,250,000
|
|
|
|
1,252,325
|
|
Los Angeles, CA, Department of Airports Revenue, Los Angeles International Airport
|
|
|
5.000
|
%
|
|
|
5/15/40
|
|
|
|
17,500,000
|
|
|
|
19,187,925
|
|
See
Notes to Schedule of Investments.
3
WESTERN ASSET CALIFORNIA MUNICIPALS FUND
|
|
|
Schedule of Investments (unaudited) (contd)
|
|
May 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SECURITY
|
|
RATE
|
|
|
MATURITY
DATE
|
|
|
FACE
AMOUNT
|
|
|
VALUE
|
|
Transportation - continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Los Angeles, CA, Harbor Department Revenue
|
|
|
5.250
|
%
|
|
|
8/1/39
|
|
|
$
|
16,000,000
|
|
|
$
|
18,250,240
|
|
Sacramento County, CA, Airport System Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AGM
|
|
|
5.750
|
%
|
|
|
7/1/24
|
|
|
|
5,000,000
|
|
|
|
5,741,250
|
(a)
|
PFC, Grant
|
|
|
6.000
|
%
|
|
|
7/1/35
|
|
|
|
20,000,000
|
|
|
|
22,793,000
|
|
San Diego County, CA, Regional Airport Authority Revenue
|
|
|
5.000
|
%
|
|
|
7/1/40
|
|
|
|
10,000,000
|
|
|
|
10,782,800
|
|
San Francisco, CA, City & County Airports Commission, International Airport Revenue
|
|
|
5.250
|
%
|
|
|
5/1/32
|
|
|
|
10,000,000
|
|
|
|
11,412,400
|
|
San Jose, CA, Airport Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMBAC
|
|
|
5.000
|
%
|
|
|
3/1/33
|
|
|
|
8,635,000
|
|
|
|
9,066,232
|
|
AMBAC
|
|
|
5.000
|
%
|
|
|
3/1/37
|
|
|
|
5,000,000
|
|
|
|
5,198,150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Transportation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
127,736,950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Water & Sewer - 2.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
California State PCFA, Water Furnishing Revenue
|
|
|
5.000
|
%
|
|
|
11/21/45
|
|
|
|
11,000,000
|
|
|
|
11,039,380
|
(a)(f)
|
Clovis, CA, Sewer Revenue, NATL
|
|
|
5.200
|
%
|
|
|
8/1/28
|
|
|
|
6,000,000
|
|
|
|
6,017,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Water & Sewer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17,056,540
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL INVESTMENTS - 99.2%
(Cost - $594,295,270#)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
696,531,104
|
|
Other Assets in Excess of Liabilities - 0.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,647,331
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL NET ASSETS - 100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
702,178,435
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Income from this issue is considered a preference item for purposes of calculating the alternative minimum tax (AMT).
|
(b)
|
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.
|
(c)
|
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.
|
(d)
|
Variable rate security. Interest rate disclosed is as of the most recent information available.
|
(e)
|
Maturity date shown represents the mandatory tender date.
|
(f)
|
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, unless otherwise noted.
|
#
|
Aggregate cost for federal income tax purposes is substantially the same.
|
Abbreviations used in this schedule:
|
|
|
|
|
ABAG
|
|
Association of Bay Area Governments
|
AGM
|
|
Assured Guaranty Municipal Corporation - Insured Bonds
|
AMBAC
|
|
American Municipal Bond Assurance Corporation - Insured Bonds
|
BHAC
|
|
Berkshire Hathaway Assurance Corporation - Insured Bonds
|
CDA
|
|
Communities Development Authority
|
CMI
|
|
California Mortgage Insurance Program - Insured Bonds
|
COP
|
|
Certificates of Participation
|
EFA
|
|
Educational Facilities Authority
|
FGIC
|
|
Financial Guaranty Insurance Company - Insured Bonds
|
FHA
|
|
Federal Housing Administration
|
GNMA
|
|
Government National Mortgage Association
|
GO
|
|
General Obligation
|
HFA
|
|
Housing Finance Authority
|
IDR
|
|
Industrial Development Revenue
|
MFA
|
|
Municipal Finance Authority
|
MFH
|
|
Multi-Family Housing
|
NATL
|
|
National Public Finance Guarantee Corporation - Insured Bonds
|
PCFA
|
|
Pollution Control Financing Authority
|
PFA
|
|
Public Facilities Authority
|
PFC
|
|
Public Facilities Corporation
|
RDA
|
|
Redevelopment Agency
|
RIBS
|
|
Residual Interest Bonds
|
SAVRS
|
|
Selected Auction Variable Rate Securities
|
UGRIC
|
|
United Guaranty Residential Insurance Company - Insured Bonds
|
USD
|
|
Unified School District
|
See
Notes to Schedule of Investments.
4
WESTERN ASSET CALIFORNIA MUNICIPALS FUND
|
|
|
Schedule of Investments (unaudited) (contd)
|
|
May 31, 2013
|
|
|
|
|
|
Ratings Table*
Standard & Poors/Moodys/Fitch**
|
|
AAA/Aaa
|
|
|
17.4
|
%
|
AA/Aa
|
|
|
32.2
|
|
A
|
|
|
43.4
|
|
BBB/Baa
|
|
|
5.5
|
|
NR
|
|
|
1.5
|
|
|
|
|
|
|
100.0
|
%
|
|
|
*
|
As a percentage of total investments.
|
**
|
The ratings shown are based on each portfolio securitys rating as determined by Standard & Poors, Moodys or Fitch, each a Nationally
Recognized Statistical Rating Organization (NRSRO). These ratings are the opinions of the NRSRO and are not measures of quality or guarantees of performance. Securities may be rated by other NRSROs, and these ratings may be higher or
lower. In the event that a security is rated by multiple NRSROs and receives different ratings, the Fund will treat the security as being rated in the highest rating category received from a NRSRO.
|
See
Notes to Schedule of Investments.
5
Notes to Schedule of Investments (unaudited)
1. Organization and significant accounting policies
Western Asset California Municipals Fund (the Fund) is a separate non-diversified investment series of Legg Mason Partners Income Trust (the Trust). The Trust, a Maryland statutory
trust, is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company.
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 investments fair value.
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 Funds Board of Trustees.
The Board of Trustees is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Legg Mason North
American Fund Valuation Committee (the Valuation Committee). The Valuation Committee, pursuant to the policies adopted by the Board of Trustees, is responsible for making fair value determinations, evaluating the effectiveness of the
Funds pricing policies, and reporting to the Board of Trustees. 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 issuers 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 Trustees, 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 Trustees 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 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.)
|
6
Notes to Schedule of Investments (unaudited) (continued)
|
|
|
Level 3 significant unobservable inputs (including the Funds 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 Funds
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
|
|
|
|
|
|
$
|
696,531,104
|
|
|
|
|
|
|
$
|
696,531,104
|
|
|
See Schedule of Investments for additional detailed categorizations.
|
(b) Fund concentration.
Since the Fund invests primarily in obligations of issuers within California, it is subject to possible risks associated with economic, political, credit or legal
developments or industrial or regional matters specifically affecting California.
(c) Futures contracts.
The Fund may use futures
contracts generally to gain exposure to, or hedge against, changes in interest rates or gain exposure to, or hedge against, changes in certain asset classes. A futures contract represents a commitment for the future purchase or sale of an asset at a
specified price on a specified date.
Upon entering into a futures contract, the Fund is required to deposit cash or cash equivalents with a
broker in an amount equal to a certain percentage of the contract amount. This is known as the initial margin and subsequent payments (variation margin) are made or received by the Fund each day, depending on the daily
fluctuation in the value of the contract.
Futures contracts involve, to varying degrees, risk of loss. In addition, there is the risk that
the Fund may not be able to enter into a closing transaction because of an illiquid secondary market.
(d) Security transactions.
Security transactions are accounted for on a trade date basis.
2. Investments
At May 31, 2013, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:
|
|
|
|
|
Gross unrealized appreciation
|
|
$
|
102,437,702
|
|
Gross unrealized depreciation
|
|
|
(201,868
|
)
|
|
|
|
|
|
Net unrealized appreciation
|
|
$
|
102,235,834
|
|
|
|
|
|
|
3. Derivative instruments and hedging activities
GAAP requires enhanced disclosure about an entitys derivative and hedging activities.
At May 31, 2013, the Fund did not have any derivative instruments outstanding.
During the period ended May 31, 2013, the volume of derivative activity for the Fund was as follows:
|
|
|
|
|
|
|
Average Market Value
|
|
Futures contracts (to sell)
|
|
$
|
24,591,000
|
|
|
At May 31, 2013, there were no open positions held in this derivative.
|
7
ITEM 2.
|
CONTROLS AND PROCEDURES.
|
|
(a)
|
The registrants principal executive officer and principal financial officer have concluded that the registrants 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 registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the
registrants last fiscal quarter that have materially affected, or are likely to materially affect the registrants internal control over financial reporting.
|
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.
|
|
|
Legg Mason Partners Income Trust
|
|
|
By
|
|
/s/ K
ENNETH
D.
F
ULLER
|
|
|
Kenneth D. Fuller
|
|
|
Chief Executive Officer
|
|
Date: July 25, 2013
|
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/ K
ENNETH
D.
F
ULLER
|
|
|
Kenneth D. Fuller
|
|
|
Chief Executive Officer
|
|
Date: July 25, 2013
|
|
|
By
|
|
/s/ R
ICHARD
F.
S
ENNETT
|
|
|
Richard F. Sennett
|
|
|
Principal Financial Officer
|
|
Date: July 25, 2013
|
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