Western Asset Investment Grade Defined Opportunity Trust : Annual Report - IGI

Annual Report

N ove m b e r 3 0 2 022

WESTERN ASSET INVESTMENT GRADE DEFINED OPPORTUNITY TRUST INC. (IGI)

INVESTME NT PR O D U CTS : NOT FDIC I N S U R E D • N O BAN K G UARANTEE • MAY LO SE VALUE

Fund objectives

Th e Fund s pri ma ry investment o bj ective i s to provi d e c u rrent i ncome a n d th en to l i q u idate a n d

d i stri b ute s u bsta nti a l ly a l l of th e Fu n d s n et assets to stoc kh o l d e rs o n o r a bo ut D ece m be r 2 2024 As a secon da ry i nvestment o bj ective th e Fu n d will see k ca p ital a ppreciation Th ere ca n be no ass u ra nce th e Fu n d wi l l ac h i eve its i nvestment o bj ectives.

Th e Fund see ks to ac h i eve its i nvestment o bj ectives by i nvesti ng at l east 80 % of its net assets i n i nvestment g ra d e corporate fixed matu rities

u n d er norma l ma rket con d iti ons i ncome sec u riti es of va ryi ng

What's inside

Letter from the chairman	III
Fund overview	1
Fund at a glance	6
Fund performance	7
Schedule of investments	9
Statement of assets and liabilities	30
Statement of operations	31
Statements of changes in net assets	32
Financial highlights	33
Notes to financial statements	34
Report of independent registered public accounting firm	49
Additional information	50
Annual chief executive officer and principal financial officer certifications	56
Other shareholder communications regarding accounting matters	57
Summary of information regarding the Fund	58
Dividend reinvestment plan	74
Important tax information	76

II Western Asset Investment Grade Defined Opportunity Trust Inc

Letter from the chairman

Dear Shareholder,

We a re p lea s e d to p rov i d e t h e a n n ual re po rt of We ste rn Ass et I nve st m e n t G ra d e D efi n e d O p po rt u n i ty Tr u st I n c fo r t h e twe l ve m o n t h re po rt i n g pe r i o d e n d e d N ove m b e r 3 0 2 022.

P l ea s e rea d o n fo r a d eta i l e d l o o k a t p reva i l i n g eco n o m i c a n d m a r ket co n d i t i o n s d u r i n g t h e Fund s re port i n g per i o d a n d to l ea rn h ow t h o s e co n d i t i o n s have a ffecte d F u n d pe rfo rm a n ce

As a l ways we rem a i n co m m i tte d to p rov i d i n g yo u w i t h exce l l e n t s e rv i ce a n d a f u l l

s pect r u m of i nve st m e n t c h o i ce s We a l s o re m a i n co m m i tte d to s u p p l e m e n t i n g t h e s u p po rt you rece i ve f ro m yo u r fina n c ial adv i s o r O n e way we a cco m p l i s h t h i s i s t h ro ugh o u r we b s i te www f ra n kl i n te m p l eto n co m H e re yo u ca n g a i n i m m e d i a te a cce ss to m a r ket a n d

i nve st m e n t i n fo rm a t i o n i n c l u d i n g :

• F u n d p r ice s and pe rfo rmance

•	M a r ket i n s i g h ts a n d co m m e n tar i e s f ro m our po rtfo l i o m a n a g e rs a n d
•	A h o st of e d u ca t i o n a l re s o u rce s.

We l o o k fo rwa rd to h e l p i n g yo u m e et yo u r fi n a n c i a l g oa l s

• ince re l y

J ane Trust C FA

C h a i rm a n P re s i d e n t a n d C h i ef Exec u t i ve Offi ce r

D ece m b e r 3 0 2 022

We ste rn Ass et I nve st m e n t G ra d e D efi n e d O p po rt u n i ty Tr u st I n c

I I I

(Th i s page i n te n tional l y left blan k )

Fund overview

Q. What is the Fund's investment strategy?

A Th e F u n d s p r i m a ry i nve st m e n t o bj ect i ve i s to p rov i d e c u rre n t i n co m e a n d t h e n to

l i q u i d a te a n d d i st r i b u te s u b sta n t i a l l y a l l of t h e F u n d s n et a ss ets to stoc kh o l d e rs o n o r a b o u t

D ece m b e r 2	2 0 2 4 As a s eco n d a ry i nve st m e n t o bj ect i ve t h e F u n d w i l l s e e k ca p i ta l
a p p rec i a t i o n	Th e re ca n b e n o a ss u ra n ce t h e F u n d w i l l a c h i eve i ts i nve st m e n t o bj ect i ve s

The Fun d see ks to ach i eve i ts i nve st m e n t o bj ect i ve s by i nve st i n g u n d e r n o rm a l mar ket con d i t ion s a t lea st 80 % of i ts n et a ss ets i n i nve st m e n t g ra d e co rpo ra te fi xe d i n co m e s ec u r i t i e s of va ry i n g m a t u r i t i e s Th e F u n d m ay i nve st u p to 2 0 % of i ts n et a ss ets i n

corpora te fi xe d incom e s ec u r i t i e s of b e l ow i nve st m e n t grad e q ual i ty ( co m m o n l y kn own a s

h i g h y i e l d o r j unk b o n d s ) a t t h e t i m e of i nve st m e n t a n d ot h e r s ec u r i t i e s i n c l u d i n g
o b l i g a t i o n s of t h e U S g ove rn m e n t i ts a g e n c i e s o r i n st rum e n ta l i t i e s co m m o n stoc ks
wa rrants and d e pos i ta ry rece i pts Wh i l e t h e F u n d	m ay i nve st u p to 20 % of i ts n et a ss ets i n
b e l ow i nve st m e n t g ra d e s ec u r i t i e s t h e F u n d w i l l	u n d e r n o rm a l m a r ket co n d i t i o n s m a i n ta i n

a po rtfo l io w i t h an ove ra l l d o l lar we i g h te d ave ra g e of i nve st m e n t g ra d e c re d i t q ual i ty Th e F u n d m ay i nve st u p to 20 % of i ts net a ss ets i n s ec u r i t i e s of fo re i g n i ss u e rs l oca te d

a nywh e re in t he worl d i n c l u d i ng i ss u e rs l ocate d i n e m e rg i n g mar ket co u n t r i e s Ad d i t i o nal l y t he Fun d m ay invest u p to 2 0 % of i ts n et a ss ets i n n o n U S d o l lar d e n o m i nate d s ec u r i t i e s

Th e F u n d m ay i nve st i n d e r i va t i ve i n st rum e n ts s u c h a s o pt i o n s co n t ra cts fut u re s co n t ra cts o pt i ons on fut u res co n t ra cts i n d exe d s ecu r i t i e s c re d i t d efa u l t swa ps an d ot h e r swap

a g re e m e nts p rov i d e d t h a t t h e F u n d s ex po s u re to d e r i va t i ve i n st r u m e n ts a s m ea s u re d by t he tota l n ot ion a l amo u n t of a l l s u c h i n st r u m e n ts w i l l n ot exce e d 2 0 % of i ts n et a ss ets

I n p u rc h a s i n g s ec u r i t i e s a n d ot h e r i nve st m e n ts fo r t h e F u n d we m ay ta ke f u l l a dva n ta g e of t he ent i re rang e of matur i t i e s a n d d u ra t i o n s offe re d by co rpo ra te fi xe d i n co m e s ecur i t i e s

a n d m ay a dj u st t h e ave ra g e m a t u r i ty o r d u ra t i o n of t h e F u n d s po rtfo l i o f ro m t i m e to t i m e d e pe n d i n g o n our a ss e ss m e n t of t h e re l a t i ve y i e l d s ava i l a b l e o n s ec u r i t i e s of d i ffe re n t m a t u r i t i e s a n d d u ra t i o n s a n d o u r ex pecta t i o n s of f u t u re c han g e s i n i n te re st rate s

Th e F u n d m ay ta ke o n l eve ra g i n g r i s k by u t i l i z i n g ce rta i n m a n a g e m e n t tec h n i q u e s wh e re by i t w i l l s eg reg a te l i q u i d a ss ets e n te r i n to offs ett i n g t ra n sact i o n s o r own po s i t i o n s cove r i n g i ts o b l i g a t i o n s To t h e exte n t t h e F u n d cove rs i ts co m m i t m e n t u n d e r s u c h a po rtfo l i o

m a n a gem e n t tec h n iqu e s u c h i n st r u m e n t w i l l n ot b e co n s i d e re d a s e n i o r s ec u r i ty fo r t h e p u rpo s e s of t h e Inve st m e n t C o m pa ny Act of 1 940 H oweve r a s a f u n d a m e n ta l po l i cy t h e

Fund w i l l not leve rage i ts ca p i tal	st ructure by i ss u i n g s e n i o r s ec u r i t i e s s u c h a s p refe rre d
s h a res o r debt i n st r u m e n ts
At Weste rn Ass et M a n a g e m e n t	C o m pa ny LLC ( We ste rn Ass et ) t h e F u n d s s u badv i s e r we

u t i l i ze a fi xe d income tea m a p p roa c h w i t h d ec i s i o n s d e r i ve d f ro m i n te ra ct i o n a m o n g

va r i o u s i nve st m e n t m a n a g e m e n t s ecto r s pec i a l i sts Th e s ecto r tea m s a re co m p r i s e d of

We stern Ass et s s eni o r po rtfo l i o manage m e n t pe rs o n n e l re s earc h a n a l ysts a n d an i n h o u s e eco n o m i st U n d e r t h i s tea m a p p roa c h m a n a g e m e n t of c l i e n t fi xe d i n co m e po rtfo l i o s w i l l ref l ect a con sen sus of i n te rd i sci p l i nary v i ews w i t h i n t h e We ste rn Ass et o rgan i za t i o n Th e

We ste rn Ass et I nve st m e n t G ra d e D efi n e d O p po rt u n i ty Tr u st I n c 2 022 A n n u a l R e po rt

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