In plain terms — Western Asset Municipal High Income Fund
Shares currently cost about 1.1% less than the value of the assets behind them (a discount).
Over the past year it has averaged a 0.2% discount, so today's level is somewhat wide for this fund (Z-score -1.8). That describes the past; it does not predict where the discount goes next.
It pays regular distributions worth about 6.4% a year of the share price (6.3% of the assets). That is a payout rate, not a return: part of it may be capital being handed back.
Because the shares trade below the value of their assets, each dollar of reinvested distributions buys about $1.01 of assets — a ReinvestCapture™ rate of 6.5%, more than the payout rate itself. That is buying power, not a return.
The assets themselves fell 2.5% over the past year including distributions (NAV total return).
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Price and NAV, past year
Snapshot
Valuation vs. history
| Window | Average prem/disc | Std. dev. | Z-score | Observations |
|---|---|---|---|---|
| 3 months | -0.67% | 2.25% | -0.94 | 64 |
| 6 months | -0.06% | 1.86% | -1.47 | 126 |
| 1 year | -0.20% | 1.48% | -1.75 | 250 |
| 3 years | -2.12% | — | — | — |
| 5 years | -4.27% | — | — | — |
Current contemporaneous premium/discount -2.80% (close Oct 14, 2026 vs NAV Oct 13, 2026). 1-year range -6.38% to +3.42%. A negative Z-score means a wider discount than the window average — not that the fund is undervalued.
Performance
| Series | 1M | 3M | YTD | 1Y | 3Y (ann.) | 5Y (ann.) |
|---|---|---|---|---|---|---|
| Market price return | -4.17% | -12.04% | -9.74% | -11.54% | +0.16% | -6.04% |
| Market price total return | -3.65% | -10.68% | -5.58% | -6.10% | +5.64% | -1.60% |
| NAV return | -2.72% | -6.81% | -7.48% | -8.14% | -2.46% | -4.37% |
| NAV total return | -2.22% | -5.38% | -3.25% | -2.53% | +2.76% | -0.03% |
Through Oct 14, 2026. Total return reinvests distributions at the series value on the ex-date. Cumulative ≤ 1 year, annualised beyond.
About the fund
Western Asset Municipal High Income Fund Inc. is a closed ended fixed income mutual fund launched and managed by Legg Mason Partners Fund Advisor, LLC. It is co-managed by Western Asset Management Company. The fund invests in the fixed income markets of the United States. It invests primarily in intermediate and long-term municipal debt securities issued by state and local governments including U.S. territories and possessions, political subdivisions, agencies and public authorities. The fund seeks to invest in investment grade debt securities rated in one of the four highest rating categories by a nationally recognized statistical rating organization to create its portfolio. It benchmarks the performance of its portfolio against the Lehman Brothers Municipal Bond Index. The fund was formerly known as Municipal High Income Fund Inc. Western Asset Municipal High Income Fund Inc. was formed on November 28, 1988 and is domiciled in the United States.
CEF Explorer research page for Western Asset Municipal High Income Fund Inc.. Figures carry their own dates and sources; a discount to NAV does not guarantee convergence or any return. This is not investment advice.