Western Asset Intermediate Muni Fund Inc. Announces Financial Position as of February 28, 2025
MWN-AI** Summary
Western Asset Intermediate Muni Fund Inc. (NYSE: SBI) has released its financial position as of February 28, 2025, showing a slight decrease in total assets and net assets compared to previous quarters. The Fund currently holds total assets of approximately $173.96 million, down from $178.19 million in November 2024, and $175.43 million a year prior. Correspondingly, total net assets decreased to about $123.81 million from $125.87 million in the prior quarter and $127.24 million year-on-year.
The net asset value (NAV) per share has also seen a downward trend, recorded at $8.79 compared to $8.94 in the last quarter and $9.04 a year ago. The market price per share likewise fell to $7.98, reflecting a discount of 9.22%, worsening from an 8.72% discount in November 2024 and substantially more than the 12.72% discount noted a year earlier.
In terms of operational performance, the Fund reported total net investment income of around $1.32 million, consistent with the previous quarter and an increase relative to 2024. However, the total net realized and unrealized loss stood at approximately $1.27 million, contrasting sharply with a gain of $150,687 in the prior quarter, indicating a challenging investment environment.
Earnings per share for total net investment income remain steady at $0.09, while the net increase in net assets from operations showed a decline with a loss of $288,814 compared to a gain of $1.08 million in the previous quarter. The report signals the effects of market conditions on the Fund as it adapts to these changes.
Investors seeking more information can access the Fund’s reports on the SEC website or contact their investor services. The Fund is managed by Franklin Templeton, through its subsidiaries.
MWN-AI** Analysis
As of February 28, 2025, Western Asset Intermediate Muni Fund Inc. (NYSE: SBI) has displayed mixed financial indicators that warrant careful examination for potential investors. The fund reported total assets of approximately $173.96 million and total net assets of about $123.81 million, indicating slight declines from previous quarters. The fund's Net Asset Value (NAV) per share decreased to $8.79, down from $8.94 in November 2024, leading to a market share price of $7.98, representing a discount of 9.22% to the NAV. This discount may present a potential buying opportunity for investors seeking value, though it also suggests market skepticism about the fund's performance.
Income generation, a pivotal metric for income-focused investors, has remained stable with net investment income totaling $1.32 million, leading to earnings of $0.09 per share. However, a significant concern arises from the total net realized/unrealized losses of approximately $1.27 million. Such losses can erode investor confidence, especially when assessed against last year’s favorable performance.
Furthermore, the increased amount of undistributed net investment income—rising to $(1.46 million)—adds a level of uncertainty to future distributions. While the fund's ability to pay preferred dividends has improved, investors must weigh this positive against the backdrop of capital losses and declining NAV.
Investors should closely monitor the fund's management actions and market conditions affecting municipal bonds. While the current discount to NAV may seem attractive, it's essential to consider the overall economic context, potential increases in interest rates, and their anticipated impact on bond investments. For those looking for steady income and willing to accept some risk associated with municipal bonds, SBI may offer potential, but prudence is advised before making investment decisions.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Western Asset Intermediate Muni Fund Inc. (NYSE: SBI) today announced the financial position of the Fund as of February 28, 2025.
| Current Q | Previous Q | Prior Yr Q | ||||||||||
| February 28, 2025 | November 30, 2024 | February 29, 2024 | ||||||||||
| Total Assets (a) | $ | 173,956,021 | $ | 178,192,638 | $ | 175,430,065 | ||||||
| Total Net Assets (a) | $ | 123,808,223 | $ | 125,871,409 | $ | 127,241,370 | ||||||
| NAV Per Share of Common Stock (b) | $ | 8.79 | $ | 8.94 | $ | 9.04 | ||||||
| Market Price Per Share | $ | 7.98 | $ | 8.16 | $ | 7.89 | ||||||
| Premium / (Discount) | (9.22 | )% | (8.72 | )% | (12.72 | )% | ||||||
| Outstanding Shares | 14,082,315 | 14,082,315 | 14,082,315 | |||||||||
| Total Net Investment Income (c)(d) | $ | 1,315,562 | $ | 1,334,547 | $ | 1,301,630 | ||||||
| Total Net Realized/Unrealized Gain/(Loss)(c) | $ | (1,265,940 | ) | $ | 150,687 | $ | 2,996,853 | |||||
| Preferred Dividends Paid from Net Investment Income (c) | $ | (338,436 | ) | $ | (403,600 | ) | $ | (410,805 | ) | |||
| Net Increase (Decrease) in Net Assets From Operations (c) | $ | (288,814 | ) | $ | 1,081,634 | $ | 3,887,678 | |||||
| Earnings per Common Share Outstanding | ||||||||||||
| Total Net Investment Income (c)(d) | $ | 0.09 | $ | 0.09 | $ | 0.09 | ||||||
| Total Net Realized/Unrealized Gain/(Loss)(c) | $ | (0.09 | ) | $ | 0.01 | $ | 0.21 | |||||
| Preferred Dividends Paid from Net Investment Income (c) | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.03 | ) | |||
| Net Increase (Decrease) in Net Assets From Operations (c) | $ | (0.02 | ) | $ | 0.07 | $ | 0.27 | |||||
| Undistributed Net Investment Income (e) | $ | (1,464,055 | ) | $ | (666,809 | ) | $ | (805,173 | ) | |||
| Undistributed Net Investment Income | ||||||||||||
| Per Share (e) | $ | (0.10 | ) | $ | (0.05 | ) | $ | (0.06 | ) | |||
| Variable Rate Demand Preferred Stock (e) | $ | 47,400,000 | $ | 47,400,000 | $ | 47,400,000 |
Footnotes: | ||
(a) | The difference between the Fund’s total assets and total net assets is due primarily to its outstanding variable rate demand preferred stock (“VRDPS”); total net assets do not include the liquidation value of VRDPS. | |
(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) | Excludes distributions paid to preferred stockholders from net investment income. | |
(e) | 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 Intermediate Muni Fund Inc., a diversified closed-end investment management company, is advised by Franklin Templeton Fund Advisor, 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/20250416062909/en/
Investor Contact: Fund Investor Services 1-888-777-0102
FAQ**
What factors contributed to the decrease in Total Net Assets of the Western Asset Intermediate Muni Fund Inc (SBI) from November 30, 2024, to February 28, 2025?
2. How does the current Premium/Discount of -9.22% for Western Asset Intermediate Muni Fund Inc (SBI) compare to industry averages and what implications might this have for potential investors?
3. What strategies is the Western Asset Intermediate Muni Fund Inc (SBI) employing to improve its Net Investment Income and address the Undistributed Net Investment Income figure reported?
4. Given the NAV per share decline in Western Asset Intermediate Muni Fund Inc (SBI) from $9.04 to $8.79, what recommendations would you provide for current investors regarding their holdings?
**MWN-AI FAQ is based on asking OpenAI questions about Western Asset Intermediate Muni Fund Inc (NYSE: SBI).
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