Western Asset High Income Fund II Inc. Announces Financial Position as of July 31, 2025
MWN-AI** Summary
Western Asset High Income Fund II Inc. (NYSE: HIX) disclosed its financial position as of July 31, 2025, revealing a notable shift in its key metrics compared to previous quarters. The Fund's total assets amounted to approximately $595.2 million, marking an increase from $585.8 million recorded on April 30, 2025, although this reflects a decrease from $613.2 million a year prior. Total net assets, however, saw an increase, reaching about $392.5 million, up from $383.6 million in the previous quarter and down from $409.1 million year-over-year.
The Net Asset Value (NAV) per share increased to $4.36 from $4.26 in the prior quarter but decreased when compared to $4.54 a year earlier. The market price per share also noted an increase to $4.24, up from $4.08 in the previous quarter and reflecting a decline from $4.37 year-over-year. The Fund operated at a discount of 2.75%, less than the 4.23% discount recorded in the previous quarter.
Net investment income for the quarter was reported at approximately $8.45 million, down slightly from $8.57 million in the previous quarter and markedly lower than $9.32 million a year earlier. However, the net increase in net assets from operations showed a significant improvement, with the Fund posting a gain of approximately $22 million in the current quarter, reversing the loss reported previously.
The Fund continues to engage in its borrowing strategies, maintaining a loan outstanding of $157 million. It also reported reverse repurchase agreements totaling about $29.1 million, down from previous levels. These figures underline the Fund's ongoing strategies and their impacts on its financial health during an evolving economic environment.
MWN-AI** Analysis
As of July 31, 2025, the Western Asset High Income Fund II Inc. (NYSE: HIX) has exhibited a mixed financial performance, suggesting both challenges and potential opportunities for investors. The total assets of the fund have increased slightly to $595.2 million from $585.8 million in the previous quarter. However, total net assets have decreased to $392.5 million compared to $409.1 million in the same quarter last year, indicating a decline in the underlying profitability of the fund relative to its liabilities.
The net asset value (NAV) per share of $4.36, while up marginally from $4.26 in the previous quarter, has dropped from $4.54 a year ago. This decreasing trend in NAV alongside a market price per share of $4.24 suggests that the fund is trading at a discount of approximately 2.75%. Such a discount may attract value-focused investors, particularly those seeking high-income opportunities.
Despite some operational challenges reflected in the net investment income decrease and high levels of undistributed income, the fund reported a significant increase in net assets from operations amounting to $22 million. The reported total net realized/unrealized gain of $13.5 million is promising but is offset by the fund’s current distribution dilemma, as evidenced by the increased undistributed net investment income of $11.1 million.
Investors should carefully consider these dynamics. The increasing burden of undistributed income coupled with rising interest rates could continue to pressure the fund's returns. Nevertheless, the slight improvement in market price may present a buying opportunity, especially if you anticipate a rebound from the recent declines. Monitoring interest rate trends and the fund’s ability to manage its liabilities will be essential in making informed investment decisions moving forward.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Western Asset High Income Fund II Inc. (NYSE: HIX) today announced the financial position of the Fund as of July 31, 2025.
Current Q | Previous Q | Prior Yr Q | ||||||
July 31, 2025 | April 30, 2025 | July 31, 2024 | ||||||
| Total Assets (a) | $ | 595,187,932 | $ | 585,762,067 | $ | 613,246,452 | ||
| Total Net Assets (a) | $ | 392,485,020 | $ | 383,579,521 | $ | 409,059,676 | ||
| NAV Per Share of Common Stock (b) | $ | 4.36 | $ | 4.26 | $ | 4.54 | ||
| Market Price Per Share | $ | 4.24 | $ | 4.08 | $ | 4.37 | ||
| Premium / (Discount) | (2.75)% | (4.23)% | (3.74)% | |||||
| Outstanding Shares | 90,069,708 | 90,034,960 | 90,034,960 | |||||
| Total Net Investment Income (c) | $ | 8,451,084 | $ | 8,573,963 | $ | 9,322,620 | ||
| Total Net Realized/Unrealized Gain/(Loss) (c) | $ | 13,539,408 | $ | (13,572,146) | $ | 8,627,021 | ||
| Net Increase (Decrease) in Net Assets From Operations (c) | $ | 21,990,492 | $ | (4,998,183) | $ | 17,949,641 | ||
| Earnings per Common Share Outstanding | ||||||||
| Total Net Investment Income (c) | $ | 0.09 | $ | 0.10 | $ | 0.10 | ||
| Total Net Realized/Unrealized Gain/(Loss) (c) | $ | 0.15 | $ | (0.15) | $ | 0.10 | ||
| Net Increase (Decrease) in Net Assets From Operations (c) | $ | 0.24 | $ | (0.05) | $ | 0.20 | ||
| Undistributed/(Overdistributed) Net Investment Income (d) | $ | (11,127,380) | $ | (6,341,622) | $ | (8,664,225) | ||
| Undistributed/(Overdistributed) Net Investment Income | ||||||||
| Per Share (d) | $ | (0.12) | $ | (0.07) | $ | (0.10) | ||
| Loan Outstanding (d) | $ | 157,000,000 | $ | 157,000,000 | $ | 157,000,000 | ||
| Reverse Repurchase Agreements (d) | $ | 29,146,202 | $ | 36,097,631 | $ | 35,825,929 |
| Footnotes: | |
| (a) | The difference between total assets and total net assets is due primarily to the Fund’s use of borrowings; total net assets do not include borrowings. |
| (b) | NAVs are calculated as of the close of business on the last business day in the periods indicated above. |
| (c) | For the quarter indicated. |
| (d) | As of the date indicated above. |
This financial data is unaudited.
The Fund files its semi-annual and annual reports with the Securities and Exchange Commission (“SEC”), as well as its complete schedule of portfolio holdings for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. These reports are available on the SEC’s website at www.sec.gov . To obtain information on Forms N-PORT or a semi-annual or annual report from the Fund, shareholders can call 1-888-777-0102 .
Western Asset High Income Fund II Inc., a diversified, closed-end management investment company, is advised by Franklin Templeton Fund Adviser, LLC (“FTFA”) and is sub-advised by Western Asset Management Company (“Western Asset”). FTFA and Western Asset are indirect, wholly-owned subsidiaries of Franklin Resources, Inc. (“Franklin Resources”).
For more information about the Fund, please call 1-888-777-0102 or consult the Fund’s web site at www.franklintempleton.com/investments/options/closed-end-funds . Hard copies of the Fund’s complete audited financial statements are available free of charge upon request.
Data and commentary provided in this press release are for informational purposes only. Franklin Resources and its affiliates do not engage in selling shares of the Fund.
Category: Financials
Source: Franklin Resources, Inc.
Source: Legg Mason Closed End Funds
View source version on businesswire.com: https://www.businesswire.com/news/home/20250922070514/en/
Media Contact: Fund Investor Services 1-888-777-0102
FAQ**
How has the performance of Western Asset High Income Fund II Inc. HIX changed over the past year in terms of total net assets and NAV per share?
What factors contributed to the decline in total net investment income for Western Asset High Income Fund II Inc. HIX compared to the previous quarter?
What strategies is Western Asset High Income Fund II Inc. HIX considering to address its undistributed net investment income, which has shown an increasing trend?
How does the current market price per share of Western Asset High Income Fund II Inc. HIX reflect its premium/discount status compared to its NAV?
**MWN-AI FAQ is based on asking OpenAI questions about Western Asset High Income Fund II Inc. (NYSE: HIX).
NASDAQ: HIX
HIX Trading
-0.97% G/L:
$4.07 Last:
297,772 Volume:
$4.10 Open:
