GFY Western Asset Variable Rate Strategic Fund Inc

Western Asset Variable Rate Strategic Fund Inc. (NYSE:GFY) announces its portfolio composition as of June 30, 2015.

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

     

Portfolio Composition*:

 

Asset Allocation

Mortgage-Backed Securities

55.5%

Non-Agency MBS

42.7%

GNMA

6.2%

Agency Hybrids

1.7%

FNMA

2.6%

CMBS

2.3%

Investment Grade Corporate Bonds

21.1%

Asset-Backed Securities

7.4%

Emerging Market Debt

7.3%

Sovereign Debt External Currency

1.4%

Sovereign Debt Local Currency

2.5%

Corporates External Currency

3.4%

High Yield Corporate Bonds

5.3%

Bank Loans

2.3%

Government

0.8%

Cash & Other Securities

0.4%

   

Credit Quality Allocation**

  AAA 14.5% AA 9.2% A 13.1% BBB 22.9% BB 6.5% B 8.5% CCC 12.4% CC 2.8% C 0.6% D 0.2%

Not Rated

9.3%

   

Top Five Investment Grade Industries

Banking   10.4% Communications 2.0% Energy 2.0% Consumer Non Cyclical 1.9% Finance Companies 1.8%  

Top Five High Yield Industries

Communications 1.4% Energy 1.3% Banking 1.0% Finance Companies 0.6% Consumer Cyclical 0.6%  

Top Five Emerging Market Countries

Brazil 4.0% Mexico 1.8% Russia 0.8% China 0.5% Colombia 0.2%  

Currency Allocation

US Dollar 97.4% Brazilian Real 1.7% Mexican Peso 0.8%  

Average Life (years)

5.6

Effective Duration (years)

0.7

Average Coupon (%)

2.8  

Portfolio Statistics:

 

Inception Date

October 26, 2004

Inception Price

 

$20.00

Total Assets***

 

$135,092,611

Net Assets

 

$121,032,973

Loans

0.00%

Preferred Shares

0.00%

Reverse Repos

10.24%

Market Price

 

$16.50

NAV

 

$18.15

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

Distribution Rate

$0.07250 per share  

Frequency Monthly (Declared quarterly, paid monthly)

* Portfolio holdings and weightings are historical and are presented here for informational purposes only. They are subject to change at any time.

** Credit quality is a measure of a bond issuer's ability to repay interest and principal in a timely manner. The credit ratings shown are based on each portfolio security’s rating as provided by Standard and Poor’s, Moody’s Investors Service and/or Fitch Ratings, Ltd. and typically range from AAA (highest) to D (lowest), or an equivalent and/or similar rating. For this purpose, when two or more of the agencies have assigned differing ratings to a security, the highest rating is used. Securities that are unrated by all three agencies are reflected as such. The credit quality of the investments in the Fund's portfolio does not apply to the stability or safety of the Fund. These ratings are updated monthly and may change over time. Please note, the Fund itself has not been rated by an independent rating agency.

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

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 1-888-777-0102, or consult the Fund’s web site at http://www.lmcef.com. Hard copies of the Fund’s complete audited financial statements are available free of charge upon request.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150729005280/en/

Western Asset Variable Rate Strategic Fund Inc.Fund Investor Services1-888-777-0102http://www.lmcef.com