GFY Western Asset Variable Rate Strategic Fund Inc

Western Asset Variable Rate Strategic Fund Inc. (NYSE: GFY) announces its portfolio composition as of March 31, 2012.

Investment Objective: The Fund’s investment objective is to maintain a high level of current income.

Portfolio Composition*:

Asset Allocation

Mortgage-Backed Securities

41.5 %

Investment Grade Corporate Bonds

20.5 %

High Yield Corporate Bonds

10.5 %

Bank Loans

9.2 %

Asset-Backed Securities

5.8 %

Emerging Market Debt

7.2 %

Sovereign Debt External Currency

1.3 %

Sovereign Debt Local Currency

2.7 %

Corporates External Currency

3.2 %

Municipal

1.8 %

Cash & Other Securities

3.5 %  

Credit Quality Allocation**

AAA 15.0 % AA 9.0 % A 12.5 % BBB 15.2 % BB 15.8 % B 16.1 % CCC 12.0 % CC 0.4 % C 0.3 % Not Rated 3.7 %  

Top Five High Yield Industries

Energy 2.1 % Finance Companies 2.0 % Communications 1.7 % Consumer Cyclical 1.4 % Basic Industry 0.9 %  

Top Five Emerging Market Countries

Brazil 4.4 % Russia 1.0 % Mexico 0.7 % Venezuela 0.6 % India 0.5 %    

Currency Allocation

US Dollar 98.6 % Brazilian Reals 1.4 %  

Average Life (years)

6.1

Effective Duration (years)

0.6

Average Coupon (%)

3.2

 

Portfolio Statistics:

 

Inception Date

October 26, 2004

Inception Price

$ 20.00

Total Assets***

$ 123,448,235

Net Assets

$ 117,583,512

Loans

0.00 %

Preferred Shares

0.00 %

Reverse Repos

7.36 %  

Market Price

$ 16.62

NAV

$ 17.66 (Daily NAV is available on market quotation systems using the symbol XGFYX.)  

Distribution Rate

$0.0670 per share

Frequency Monthly

(Declared quarterly, paid monthly)

 

*

Portfolio holdings and weightings are historical andare presented here forinformational purposes only. They are subject to change at any time.

**

Credit quality is a measure of a bond issuer's ability to repay interest andprincipal in a timely manner. The credit ratings shown are based on eachportfolio security's rating as provided by Standard and Poor's, Moody'sInvestors Service and/or Fitch Ratings, Ltd. and typically range from AAA(highest) to D (lowest). For this purpose, if two or more of the agencies haveassigned differing ratings to a security, the highest rating is used. Securitiesthat are unrated by all three agencies are reflected as such. The creditquality of the investments in the Fund's portfolio does not apply to thestability or safety of the Fund. These ratings are updated monthly and maychange over time. Please note, the Fund itself has not been rated by anindependent rating agency.

 

***

The difference between total assets and net assets, if any, is due primarily tothe Fund’s use of borrowings; net assets do not include borrowings. TheFund may employ leverage in the form of loans, preferred stock, reverserepurchase agreements and/or other instruments. When the Fund engagesin transactions that have a leveraging effect on the Fund’s portfolio, thevalue of the Fund will be more volatile and all other risks will tend to becompounded.

Western Asset Variable Rate Strategic Fund Inc., a non-diversified closed-end investment management company traded on the New York Stock Exchange under the symbol “GFY”, is advised by Legg Mason Partners Fund Advisor, LLC, a wholly owned subsidiary of Legg Mason, Inc., and is sub-advised by Western Asset Management Company, an affiliate of the advisor.

An investment in the Fund involves risk, including loss of principal. Investment return and the value of shares will fluctuate. Fixed income securities are subject to credit risk, inflation risk, call risk, and interest rate risks. As interest rates rise, bond prices fall, reducing the value of the Fund's share price. International investing is subject to additional risks. These risks are greater in emerging markets.

Data and commentary provided in this press release are for informational purposes only. Legg Mason and its affiliates do not engage in selling shares of the Fund.

For more information, please call Fund Investor Services at 888-777-0102, or consult the Fund’s web site at www.leggmason.com/cef.

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