WDI - Western Asset Diversified Income Fund (WDI)

What this means for you

One large investor owns more than 5% of this fund but has told the regulator it is not seeking changes. That is common for banks, brokers and index funds that hold shares for their clients.

Nothing is required of you. If an investor changes its mind, it must file a new notice within days, and it will show up here.

Email me if this changes

What happened, and when

1. April 23, 2026

   The fund said it may sell new shares.

   Original document →

2. Jan 16, 2025

   The fund said it may sell new shares.

   Original document →

3. Jan 10, 2025

   The fund said it may sell new shares.

   Original document →

4. Dec 18, 2024

   The fund said it may sell new shares.

   Original document →

5. Nov 8, 2024

   Morgan Stanley now owns 5.5%, as a passive investor.

   Original document →

About this fund

• Run by Franklin Templeton Fund Adviser, LLC. Part of the FRANKLIN TEMPLETON fund family. As of Dec 31, 2025, from the fund's yearly report. Original document →
• Size: about $737 million of holdings, as of June 30, 2026. As of June 30, 2026, from the fund's quarterly holdings report. Original document →
• Borrowing: the fund borrows about 39% on top of its own money, as of June 30, 2026. Borrowed money makes gains and losses bigger. As of June 30, 2026, from the fund's quarterly holdings report. Original document →
• Costs: 1.6% a year in management fees; 4.3% a year in total, including interest on borrowed money. Fiscal year ended Dec 31, 2025. As of Dec 31, 2025, from the fund's yearly report. Original document →
  Among the 90 funds we follow that invest in bonds, 71 charge a lower management fee and 65 charge less in total, at their last yearly reports. Both numbers are measured against the fund's own money, not the money it borrows on top, so a fund that borrows more shows higher costs on both counts.
• The fund's own cost example: $1,000 invested costs about $52 in the first year and about $447 over 10 years, assuming the holdings return 5% a year. As of Dec 31, 2025, from the fund's annual report. Original document →
• Payouts: last fiscal year (ended Dec 31, 2025) the fund paid $1.93 a share, all of it income. Most funds announce their monthly or quarterly payout on their own website, not in a filing with the regulator, so a cut or a raise there does not show up here until the next yearly report. A few funds do file a notice about a fixed payout; those appear under What happened, and when. As of Dec 31, 2025, from the fund's annual report. Original document →
• Value of holdings per share at the last fiscal year end (Dec 31, 2025): $14.59. The shares traded at $13.81, about 5.4% below that. As of Dec 31, 2025, from the fund's yearly report. Original document →
  Over the last two years the gap (a "discount" when the price is below the value) ranged from 10.1% below to 1% above. As of Dec 31, 2025, from the fund's annual report. Original document →
• How the holdings did: up 4.2% over the last three months we have (April-June 2026), before the share price is taken into account. As of June 30, 2026, from the fund's quarterly holdings report. Original document →
• First reported to the regulator in 2020.

How this has changed

• Payouts per share: $1.93 in the fiscal year ended Dec 31, 2025; $1.76 in the year ended Dec 31, 2024; $1.61 in the year ended Dec 31, 2023.As of Dec 31, 2025, from the fund's annual report. Original document →
• None of those payouts was your own money back; all of it was income or gains.As of Dec 31, 2025, from the fund's annual report. Original document →
• Costs, including interest on borrowed money: 4.25% a year in the fiscal year ended Dec 31, 2025; 4.66% a year in the year ended Dec 31, 2024; 4.79% a year in the year ended Dec 31, 2023.As of Dec 31, 2025, from the fund's annual report. Original document →
• Size of the holdings: about $757 million at Dec 31, 2025; $784 million at Dec 31, 2024; $805 million at Dec 29, 2023. From the fund's quarterly holdings reports. Original documents: Dec 31, 2025 →, Dec 31, 2024 →, Dec 29, 2023 →.
• Borrowing: about 34% on top of its own money at Dec 31, 2025; 33% at Dec 31, 2024; 32% at Dec 29, 2023. From the fund's quarterly holdings reports. Original documents: Dec 31, 2025 →, Dec 31, 2024 →, Dec 29, 2023 →.
• The fund had about 51.9 million shares at Dec 31, 2025, about the same as at Dec 31, 2023.As of Dec 31, 2025, from the fund's annual report. Original document →

What these lines mean: a payout that is your own money back, what a fund costs, borrowing.

What a holder made

• The year ended Dec 31, 2025: the shares returned +10.6%, counting payouts; the holdings +9.7%. The holdings figure is what the fund's investments earned, before the share price is taken into account. As of Dec 31, 2025, from the fund's annual report. Original document →
• The year ended Dec 31, 2024: the shares returned +13.8%, counting payouts; the holdings +9.1%. As of Dec 31, 2024, from the fund's annual report. Original document →
• The year ended Dec 31, 2023: the shares returned +25%, counting payouts; the holdings +17.3%. As of Dec 31, 2023, from the fund's annual report. Original document →
• The year ended Dec 31, 2022: the shares returned -23.4%, counting payouts; the holdings -18.1%. As of Dec 31, 2022, from the fund's annual report. Original document →
• The year ended Dec 31, 2021: the shares returned -5.6%, counting payouts; the holdings +1.2%. As of Dec 31, 2021, from the fund's annual report. Original document →
• Those five years together: the shares returned +13.6%. $10,000 of shares bought at the start (Jan 1, 2021) would have become about $11,400 by Dec 31, 2025, with every payout counted, before tax. As of Dec 31, 2025, from the fund's annual report. Original document →
• The holdings over the last twelve months we have, to June 30, 2026: +3.6%. The quarterly reports carry no share price, so this is the holdings alone. As of June 30, 2026, from the fund's quarterly holdings report. Original document →
• Of the 75 funds that invest in bonds with a fiscal year ending within six months of this one, 20 reported a higher share return for that year and 54 a lower one. As of Dec 31, 2025, from the fund's annual report. Original document →
• A past year says nothing about the next one. All figures are the fund's own, from its reports to the regulator.

Why the shares and the holdings can differ: the gap between price and value. Why payouts count: a payout that is your own money back.

What the fund holds

Mostly bonds (55%), the rest asset-backed bonds, loans and cash and short-term holdings. About 78% issued in the U.S.

The fund also sells options on its holdings to raise income.

1. Gs Mortgage Securities Corp Trust 2024-70P, Gsms 2024-70P Hrr - 2.4%
2. Mira Trust 2023-MILE, M1RA 2023-MILE Hrr - 1.9%
3. Chs/Community Health Systems, Cyh 6.875 04/15/29 144A - 1.9%
4. Pm General Purchaser LLC, Amgene 9.5 10/01/28 144A - 1.5%
5. Tutor Perini, Tpc 11.875 04/30/29 144A - 1.5%
6. Park Ohio Industries, Pkoh 8.5 08/01/30 144A - 1.4%
7. Aag Fh UK Ltd / Global Auto Holdings UK, Globau 11.5 08/15/29 144A - 1.4%
8. Mcclatchy Media Co LLC, Mcltch 11 12/01/31 144A - 1.3%
9. Occidental Petroleum, Oxy 7.5 11/01/96 - 1.3%
10. Navient, Navi 5.5 03/15/29 - 1.2%

As of June 30, 2026, from the fund's quarterly holdings report. Original document →