https://www.sec.gov/Archives/edgar/data/764624/000119312519046170/d706429d497.htm(LGSYX, WTYIX, LGSTX affected)
497 1 d706429d497.htm WESTERN ASSET SHORT TERM YIELD FUND
LOGO
LEGG MASON PARTNERS INCOME TRUST
SUPPLEMENT DATED FEBRUARY 21, 2019
TO THE SUMMARY PROSPECTUS, PROSPECTUS
AND STATEMENT OF ADDITIONAL INFORMATION, EACH DATED
NOVEMBER 30, 2018, OF
WESTERN ASSET SHORT TERM YIELD FUND (THE “FUND”)
The following language is added to the Fund’s Summary Prospectus, Prospectus and Statement of Additional Information:
The Fund’s Board of Trustees has determined that it is in the best interests of the Fund and its shareholders to terminate and wind up the Fund. The Fund is expected to cease operations on or about March 29, 2019. In preparation for the termination of the Fund, and at the discretion of the Fund manager, the assets of the Fund will be liquidated and the Fund will cease to pursue its investment objective.
Shareholders of the Fund who elect to redeem their shares prior to the completion of the liquidation will be redeemed in the ordinary course at the Fund’s net asset value per share. Each shareholder who remains in the Fund will receive a liquidating distribution equal to the aggregate net asset value of the shares of the Fund that such shareholder then holds.
In the interim, effective February 22, 2019, the Fund will be closed to new purchases and incoming exchanges, except that dividend reinvestment will continue until the Fund is terminated.
Shareholders are encouraged to consider options that may be suitable for the reinvestment of their liquidation proceeds. Shareholders subject to federal income tax should be aware that an exchange or redemption of Fund shares or the receipt of distributions or liquidation proceeds is generally considered a taxable event.
Please retain this supplement for future reference.
WASX504764
Comments
Whitehurst is just the contact (c/o) name given for Legg Mason here.
That, plus the fact that Western Assets is a Legg Mason line of funds, suggest that Legg Mason has been using this fund internally simply as a place to hold cash (or to invest easily in ultra-short bonds, take your pick).
There are lots of fund families that do things like that, though I'm not going to go looking for them and checking on how they list their principal owners.
With an inception date of 02-07-2019 and a 29 bp ER: Was the closing fund [LGSYX, et al.] a placeholder for the ETF? Or simply a 'hedge', in case the rollout for the ETF was delayed? Hmmm....
FUND (56 bp ER)
Seeks to generate current income and a low sensitivity to interest rate volatility via an actively managed fixed income strategy focused on U.S. dollar-denominated investment grade securities...
Total portfolio effective duration is expected to be one year or less while average effective maturity is expected to be 18 months or less. In any event, average effective maturity will be three years or less.
ETF (29 bp ER)
The Western Asset Short Duration Income ETF is an actively managed, low duration (0-3 years) fixed income strategy that seeks current income via a diversified portfolio with an emphasis on lower interest rate sensitivity, higher credit quality and active credit selection.
Low Duration. An effective average duration target of 3 years or less.