Legg Mason Partners Institutional Trust

10/27/2021 | Press release | Distributed by Public on 10/27/2021 07:26

Semi-Annual Report by Investment Company (Form N-CSRS)

Western Asset SMASh Series TF Fund

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-06740

Legg Mason Partners Institutional Trust

(Exact name of registrant as specified in charter)

620 Eighth Avenue, 47th Floor, New York, NY 10018

(Address of principal executive offices) (Zip code)

Marc A. De Oliveira

Franklin Templeton

100 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

Registrant's telephone number, including area code: 1-877-721-1926

Date of fiscal year end: February 28

Date of reporting period: August 31, 2021

ITEM 1.

REPORT TO STOCKHOLDERS.

The Semi-Annual Report to Stockholders is filed herewith.

Semi-Annual Report August 31, 2021

WESTERN ASSET

SMASh SERIES TF FUND

INVESTMENT PRODUCTS: NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
What's inside
Letter from the president II
Fund at a glance 1
Fund expenses 2
Schedule of investments 3
Statement of assets and liabilities 25
Statement of operations 26
Statements of changes in net assets 27
Financial highlights 28
Notes to financial statements 29

Fund objective

The Fund seeks to maximize current interest income that is excluded from gross income for regular federal income tax purposes.

Letter from the president

Dear Shareholder,

We are pleased to provide the semi-annual report of Western Asset SMASh Series TF Fund for the six-month reporting period ended August 31, 2021.

As always, thank you for your confidence in our stewardship of your assets.

Sincerely,

Jane Trust, CFA

President and Chief Executive Officer

September 30, 2021

II Western Asset SMASh Series TF Fund

Fund at a glance† (unaudited)

Investment breakdown (%) as a percent of total investments

†

The bar graph above represents the composition of the Fund's investments as of August 31, 2021 and February 28, 2021. The Fund is actively managed. As a result, the composition of the Fund's investments is subject to change at any time.

Western Asset SMASh Series TF Fund 2021 Semi-Annual Report 1

Fund expenses (unaudited)

Example

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs and (2) ongoing costs and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

This example is based on an investment of $1,000 invested on March 1, 2021 and held for the six months ended August 31, 2021.

Actual expenses

The table below titled "Based on Actual Total Return" provides information about actual account values and actual expenses. You may use the information provided in this table, together with the amount you invested, to estimate the expenses that you paid over the period. To estimate the expenses you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled "Expenses Paid During the Period".

Hypothetical example for comparison purposes

The table below titled "Based on Hypothetical Total Return" provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5.00% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use the information provided in this table to compare the ongoing costs of investing in the Fund and other funds. To do so, compare the 5.00% hypothetical example relating to the Fund with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

Based on actual total return1 Based on hypothetical total return1
Actual
Total
Return2,3

Beginning

Account

Value

Ending

Account

Value

Annualized

Expense

Ratio3

Expenses

Paid During

the Period3,4

Hypothetical

Annualized

Total Return

Beginning

Account

Value

Ending

Account

Value

Annualized

Expense

Ratio3

Expenses

Paid During

the Period3,4

3.88% $ 1,000.00 $ 1,038.80 0.00 % $ 0.00 5.00 % $1,000.00 $ 1,025.21 0.00 % $ 0.00
1

For the six months ended August 31, 2021.

2

Total return is not annualized, as it may not be representative of the total return for the year. Past performance is no guarantee of future results. Performance figures do not reflect any fees stated below in Note 3. If such fees were included, the return shown would have been lower.

3

All figures do not reflect the effect of fees and expenses associated with a separately managed account, nor a management fee or other operating expenses of the Fund. Such management fees are paid directly or indirectly by the separately managed account sponsor to the Fund's manager or subadviser. All operating expenses of the Fund were reimbursed by the manager, pursuant to an expense reimbursement arrangement between the Fund and the manager. The expense reimbursement arrangement does not cover interest, brokerage, taxes and extraordinary expenses.

4

Expenses (net of compensating balance arrangements, fee waivers and/or expense reimbursements) are equal to the Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (184), then divided by 365.

2 Western Asset SMASh Series TF Fund 2021 Semi-Annual Report

Schedule of investments (unaudited)

August 31, 2021

Western Asset SMASh Series TF Fund

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value
Municipal Bonds - 92.8%

Alabama - 3.5%

Hoover, AL, IDA Revenue, United States Steel Corp. Project, Series 2019

5.750 % 10/1/49 $ 100,000 $ 120,317 (a)

Jefferson County, AL, Sewer Revenue:

Convertible CAB, Subordinated Lien, Warrants, Step bond, Series F, Refunding, (0.000% to 10/1/23 then 7.900%)

0.000 % 10/1/50 470,000 484,643

Senior Lien, Warrants, Series A, Refunding, AGM

5.500 % 10/1/53 75,000 83,917

Subordinated Lien, Warrants, Series D, Refunding

6.000 % 10/1/42 105,000 121,291

Lower Alabama Gas District, Natural Gas Revenue:

Series 2020

4.000 % 12/1/21 200,000 201,851

Series 2020

4.000 % 12/1/23 1,000,000 1,082,148

Southeast Alabama Gas Supply District, Gas Supply Revenue, Series 2018A

4.000 % 6/1/24 645,000 705,111 (b)(c)

Total Alabama

2,799,278

Alaska - 1.1%

Alaska State Housing Finance Corp. Revenue, State Capital Project II, Series B

5.000 % 12/1/37 75,000 94,956

Anchorage, AK, Port Revenue, Series A

5.000 % 12/1/50 150,000 180,203 (a)

Northern Tobacco Securitization Corp., AK, Revenue, Asset Backed Senior Bonds, Class 1, Series A, Refunding

4.000 % 6/1/50 500,000 589,604

Total Alaska

864,763

Arizona - 3.9%

Arizona State IDA, Education Revenue:

Academies Math & Science Project, Refunding, SD Credit Program

5.000 % 7/1/37 45,000 52,696

Academies Math & Science Project, Refunding, SD Credit Program

5.000 % 7/1/38 500,000 591,990

Academies Math & Science Project, Series S, Refunding, SD Credit Program

5.000 % 7/1/47 50,000 57,598

Chandler, AZ, IDA Revenue, Intel Corp. Project

5.000 % 6/3/24 500,000 561,901 (a)(b)(c)

Maricopa County, AZ, IDA, Legacy Traditional School Projects, Series A, SD Credit Program

4.000 % 7/1/34 400,000 468,197

Phoenix, AZ, IDA, Great Hearts Academies, Refunding

5.000 % 7/1/36 75,000 84,175

See Notes to Financial Statements.

Western Asset SMASh Series TF Fund 2021 Semi-Annual Report 3

Schedule of investments (unaudited) (cont'd)

August 31, 2021

Western Asset SMASh Series TF Fund

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

Arizona - continued

Queen Creek, AZ, Excise Tax & State Shared Revenue, Series A

5.000 % 8/1/47 $ 585,000 $ 718,653

Salt Verde, AZ, Financial Corp., Natural Gas Revenue, Series 2007

5.000 % 12/1/32 495,000 663,653

Total Arizona

3,198,863

California - 10.3%

Alameda, CA, Corridor Transportation Authority Revenue:

Second Subordinated Lien, Series B, Refunding

5.000 % 10/1/34 50,000 59,452

Second Subordinated Lien, Series B, Refunding

5.000 % 10/1/36 50,000 59,316

Second Subordinated Lien, Series B, Refunding

5.000 % 10/1/37 200,000 236,718

Bay Area Toll Authority, CA, Toll Bridge Revenue, San Francisco Bay Area, Series B-1, (SIFMA Municipal Swap Index Yield + 1.100%)

1.120 % 4/1/24 160,000 162,743 (b)(c)

California State Community Housing Agency, Essential Housing Revenue, Fountains at Emerald Park, Series A

3.000 % 8/1/56 175,000 181,391

California State Health Facilities Financing Authority Revenue, Memorial Health Services, Series A, Refunding

5.000 % 10/1/33 115,000 120,850

California State MFA Revenue:

Senior Lien, LINXS APM Project, Series A

5.000 % 12/31/34 100,000 123,116 (a)

Senior Lien, LINXS APM Project, Series A

5.000 % 12/31/43 100,000 121,650 (a)

California State MFA Special Facility Revenue, United Airlines, Inc., Los Angeles International Airport Project

4.000 % 7/15/29 75,000 87,594 (a)

California State, GO:

Various Purpose, Refunding

4.000 % 11/1/36 15,000 17,735

Various Purpose, Refunding

5.000 % 9/1/41 500,000 666,250 (d)

California Statewide CDA, Student Housing Revenue, University of CA, Irvine Campus Apartments, Phase IV

5.000 % 5/15/33 50,000 60,997

Eastern Municipal Water District Financing Authority, CA, Water & Wastewater Revenue, Series D

5.000 % 7/1/47 50,000 61,594

Golden State, CA, Tobacco Securitization Corp. Revenue, Tobacco Settlement Funded, Series A-1, Refunding

5.250 % 6/1/47 275,000 284,788

Long Beach, CA, Bond Finance Authority Revenue, Natural Gas Purchase, Series A

5.500 % 11/15/37 50,000 75,106

See Notes to Financial Statements.

4 Western Asset SMASh Series TF Fund 2021 Semi-Annual Report

Western Asset SMASh Series TF Fund

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

California - continued

Los Angeles County, CA, MTA, Sales Tax Revenue, Senior Proposition C, Series B

5.000 % 7/1/32 $ 500,000 $ 641,364

Los Angeles, CA, Department of Airports Revenue:

Los Angeles International Airport, Subordinated, Series C

5.000 % 5/15/44 415,000 510,509 (a)

Los Angeles International Airport, Subordinated, Series D

5.000 % 5/15/49 400,000 495,498 (a)

Subordinated, Los Angeles International Airport, Series C

5.000 % 5/15/37 95,000 117,359 (a)

Los Angeles, CA, Department of Water & Power Waterworks Revenue, Series A

5.000 % 7/1/48 500,000 613,500

Los Angeles, CA, Wastewater System Revenue, Green Bonds, Subordinated, Series A

5.000 % 6/1/48 100,000 123,549

M-S-R Energy Authority, CA, Natural Gas Revenue:

Series A

6.125 % 11/1/29 50,000 63,381

Series B

6.125 % 11/1/29 150,000 190,123

Northern California Energy Authority, Commodity Supply Revenue, Series A

4.000 % 7/1/24 250,000 274,219 (b)(c)

Port of Oakland, CA, Intermediate Lien Revenue:

Series H, Refunding

5.000 % 5/1/29 150,000 192,712 (a)

Series H, Refunding

5.000 % 11/1/29 300,000 389,247 (a)

Riverside County, CA, Transportation Commission Sales Tax Revenue, Series B, Refunding

5.000 % 6/1/37 100,000 125,486

Riverside, CA, Electric Revenue, Series A, Refunding

5.000 % 10/1/48 100,000 125,250

Riverside, CA, Sewer Revenue, Series A, Refunding

5.000 % 8/1/34 100,000 126,717

San Bernardino, CA, USD Revenue, COP, 2019 School Financing Project, AGM

5.000 % 10/1/36 100,000 123,443

San Diego County, CA, Regional Transportation Commission, Sales Tax Revenue, Series A

5.000 % 4/1/48 300,000 355,200

San Francisco, CA, City & County Airport Commission, International Airport Revenue, SFO Fuel Company LLC, Series A, Refunding

5.000 % 1/1/33 100,000 125,557 (a)

San Mateo County, CA, Joint Powers Financing Authority Lease Revenue, Capital Project, Series A

5.000 % 7/15/43 50,000 62,621

Southern California Water Replenishment District, Financing Authority, Replenishment Revenue, Series 2018

5.000 % 8/1/48 500,000 617,920

Stockton, CA, PFA Parking Revenue, Refunding

5.000 % 3/1/35 430,000 528,174

See Notes to Financial Statements.

Western Asset SMASh Series TF Fund 2021 Semi-Annual Report 5

Schedule of investments (unaudited) (cont'd)

August 31, 2021

Western Asset SMASh Series TF Fund

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

California - continued

Stockton, CA, PFA Wastewater Revenue, BAN, Series 2019

1.400 % 6/1/22 $ 100,000 $ 100,191

Tobacco Securitization Authority of Southern California Revenue, Asset Backed Refunding, San Diego County Tobacco Asset Securitization Corporation, Class 1, Series A

5.000 % 6/1/48 100,000 125,905

Total California

8,347,225

Colorado - 1.3%

Arvada, CO, Vauxmont Metropolitan District, GO, Refunding, AGM

5.000 % 12/15/24 130,000 148,532

Colorado State Educational & Cultural Facilities Authority Revenue, University of Denver Project, Series A

5.000 % 3/1/43 50,000 60,566

Colorado State Health Facilities Authority Revenue:

Commonspirit Health Project, Series A-2

5.000 % 8/1/44 200,000 248,249

Improvement and Refunding Revenue, Bethesda Project, Series A

5.000 % 9/15/48 50,000 58,546

Colorado State High Performance Transportation Enterprise Revenue:

C-470 Express Lanes

5.000 % 12/31/47 100,000 114,262

C-470 Express Lanes

5.000 % 12/31/51 230,000 262,394

Denver, CO, City & County Special Facility Apartment Revenue, United Airlines Inc. Project, Refunding

5.000 % 10/1/32 100,000 106,479 (a)

University of Colorado Enterprise Revenue:

Series B, Refunding

5.000 % 6/1/37 15,000 15,549 (e)

Series B, Refunding

5.000 % 6/1/37 60,000 62,195 (e)

Total Colorado

1,076,772

Connecticut - 1.6%

Connecticut State HEFA Revenue, Sacred Heart University Issue, Series I-1, Refunding

5.000 % 7/1/36 50,000 60,081

Connecticut State Special Tax Revenue:

Transportation Infrastructure, Series A

5.000 % 1/1/37 500,000 619,332

Transportation Infrastructure, Series A

5.000 % 5/1/38 200,000 259,284

Connecticut State, GO:

Series A

4.000 % 4/15/37 125,000 148,726

See Notes to Financial Statements.

6 Western Asset SMASh Series TF Fund 2021 Semi-Annual Report

Western Asset SMASh Series TF Fund

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

Connecticut - continued

Series E

5.000 % 10/15/34 $ 50,000 $ 60,293

University of Connecticut, Student Fee Revenue, Series A

5.000 % 11/15/43 100,000 123,229

Total Connecticut

1,270,945

Delaware - 0.1%

Sustainable Energy Utility Inc., DE, Energy Efficiency Revenue

5.000 % 9/15/34 75,000 75,133 (e)

District of Columbia - 0.1%

District of Columbia Revenue, KIPP DC Project, Series B, Refunding

5.000 % 7/1/42 75,000 88,815

Florida - 3.2%

Broward County, FL, Airport System Revenue:

Series 2017

5.000 % 10/1/47 50,000 60,367 (a)

Series A

5.000 % 10/1/45 250,000 291,053 (a)

Broward County, FL, Port Facilities Revenue, Series B

5.000 % 9/1/31 200,000 259,374 (a)

Greater Orlando, FL, Aviation Authority, Airport Facilities Revenue, Priority Subordinated, Series A

5.000 % 10/1/47 25,000 30,183 (a)

Miami-Dade County, FL, Aviation Revenue:

Series A, Refunding

4.000 % 10/1/41 250,000 296,330

Series A, Refunding

5.000 % 10/1/49 300,000 371,598 (a)

Series B, Refunding

5.000 % 10/1/40 200,000 242,283 (a)

Orange County, FL, Health Facilities Authority Revenue, Presbyterian Retirement Communities, Refunding

5.000 % 8/1/36 5,000 5,523

Palm Beach County, FL, Health Facilities Authority Revenue:

ACTS Retirement-Life Communities, Series B

5.000 % 11/15/42 500,000 612,240

Toby & Leon Cooperman Sinai Residences of Boca Raton Expansion, Series B-1

3.000 % 6/1/27 250,000 262,394

Tampa, FL, Hospital Revenue, H. Lee Moffitt Cancer Center Project, Series B

5.000 % 7/1/50 100,000 124,791

Volusia County, FL, EFA Revenue, Educational Facilities Embry-Riddle Aeronautical University Inc. Project, Refunding

5.000 % 10/15/42 50,000 60,202

Total Florida

2,616,338

Georgia - 1.4%

Dahlonega, GA, Downtown Development Authority Revenue, North Georgia MAC LLC Project, Refunding

5.000 % 7/1/39 100,000 120,487

See Notes to Financial Statements.

Western Asset SMASh Series TF Fund 2021 Semi-Annual Report 7

Schedule of investments (unaudited) (cont'd)

August 31, 2021

Western Asset SMASh Series TF Fund

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

Georgia - continued

Fulton County, GA, Development Authority Revenue, Georgia Institute of Technology

5.000 % 6/15/44 $ 100,000 $ 125,415

Georgia State Higher Education Facilities Authority Revenue, USG Real Estate, Refunding

5.000 % 6/15/33 50,000 63,612

Georgia State Municipal Electric Authority Power Revenue:

Plant Vogtle Units 3&4, Project J, Series A

5.000 % 1/1/56 200,000 245,818

Plant Vogtle Units 3&4, Project P, Series A

4.000 % 1/1/46 80,000 91,591

Project One Subordinated, Series A

5.000 % 1/1/45 100,000 126,889

Main Street Natural Gas Inc., GA, Gas Project Revenue:

Series A

5.000 % 5/15/43 200,000 244,459

Series C

4.000 % 9/1/26 80,000 92,396 (b)(c)

Total Georgia

1,110,667

Idaho - 0.1%

Idaho State Health Facilities Authority Revenue, Trinity Health Credit Group, Series A

5.000 % 12/1/47 100,000 122,549

Illinois - 10.6%

Chicago, IL, Board of Education, Dedicated Capital Improvement, Special Tax Revenue, Series 2018

5.000 % 4/1/42 100,000 121,414

Chicago, IL, Board of Education, GO:

Dedicated, Series H

5.000 % 12/1/46 100,000 119,743

Series A

5.000 % 12/1/41 500,000 633,036

Series C, Refunding

5.000 % 12/1/25 100,000 117,850

Chicago, IL, GO:

Series A

5.000 % 1/1/44 125,000 151,396

Series A, Refunding

5.000 % 1/1/26 250,000 294,652

Series A, Refunding

5.250 % 1/1/33 30,000 32,732

Series A, Refunding

5.000 % 1/1/35 185,000 200,453

Series B

5.500 % 1/1/32 150,000 171,290

Series C, Refunding

5.000 % 1/1/25 30,000 34,292

Series D, Refunding

5.500 % 1/1/34 10,000 11,410

Chicago, IL, O'Hare International Airport Revenue:

Series D, Refunding

5.000 % 1/1/46 10,000 11,428

TrIPS Obligated Group

5.000 % 7/1/48 50,000 59,573 (a)

Chicago, IL, Transit Authority Revenue, Series A, Refunding

5.000 % 12/1/45 50,000 62,302

Chicago, IL, Transit Authority, Sales Tax Receipts Revenue, Series 2011

5.250 % 12/1/40 100,000 101,275 (e)

See Notes to Financial Statements.

8 Western Asset SMASh Series TF Fund 2021 Semi-Annual Report

Western Asset SMASh Series TF Fund

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

Illinois - continued

Chicago, IL, Wastewater Transmission Revenue, Second Lien, Series A

5.000 % 1/1/47 $ 35,000 $ 41,198

Chicago, IL, Waterworks Revenue:

Second Lien, Series 2017, Refunding

5.000 % 11/1/29 30,000 37,586

Second Lien, Series 2017-2, Refunding, AGM

5.000 % 11/1/32 60,000 74,467

Cook County, IL, Sales Tax Revenue, Series A, Refunding

4.000 % 11/15/40 250,000 296,336

Elk Grove Village, IL, GO, Cook and DuPage Counties, Refunding

5.000 % 1/1/36 35,000 42,213

Illinois State Finance Authority Revenue:

Benedictine University, Refunding

4.000 % 10/1/33 100,000 116,092

Northshore University Health System, Refunding

5.000 % 8/15/32 100,000 132,345

University of Illinois at Urbana, Academic Facilities Lease Revenue Bonds

5.000 % 10/1/49 50,000 61,385

University of Illinois, Health Services Facility Lease Revenue Bonds

5.000 % 10/1/30 250,000 326,906

Illinois State Sales Tax Revenue, Subordinated, Series D, Refunding

5.000 % 6/15/23 205,000 222,422

Illinois State Sports Facilities Authority Revenue, Sport Facilities Project, Series 2019, Refunding, BAM

5.000 % 6/15/29 50,000 63,456

Illinois State, GO:

Series 2016

5.000 % 1/1/33 25,000 28,574

Series 2016, Refunding

5.000 % 2/1/27 25,000 30,339

Series 2016, Refunding

5.000 % 2/1/29 20,000 23,890

Series A

5.000 % 5/1/36 250,000 301,670

Series A

5.000 % 3/1/46 400,000 499,133

Series A, Refunding

5.000 % 10/1/29 150,000 186,652

Series A, Refunding

5.000 % 10/1/30 350,000 434,220

Series D

5.000 % 11/1/27 225,000 277,191

Kane County, IL, School District No 131 Aurora East Side, GO, Series A, AGM

4.000 % 12/1/34 725,000 851,100

Metropolitan Pier & Exposition Authority, IL, Revenue:

McCormick Place Expansion Project, Series A, Refunding

4.000 % 12/15/42 500,000 576,744 (d)

McCormick Place Expansion Project, Series A, Refunding

5.000 % 12/15/45 500,000 616,084

See Notes to Financial Statements.

Western Asset SMASh Series TF Fund 2021 Semi-Annual Report 9

Schedule of investments (unaudited) (cont'd)

August 31, 2021

Western Asset SMASh Series TF Fund

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

Illinois - continued

McCormick Place Expansion Project, Series A, Refunding

4.000 % 6/15/50 $ 500,000 $ 569,369

McCormick Place Expansion Project, Series B, Refunding

5.000 % 6/15/42 60,000 75,806

Regional Transportation Authority, IL, GO, Series A, Refunding, NATL

6.000 % 7/1/29 415,000 533,412

Total Illinois

8,541,436

Indiana - 1.3%

Indiana State Finance Authority Revenue, Marion General Hospital, Series A

4.000 % 7/1/45 100,000 115,772

Indiana State Finance Authority Wastewater Utility Revenue, Green Bonds, CWA Authority Project, Series A

5.000 % 10/1/41 100,000 119,927

Indianapolis, IN, Local Public Improvement Bond Bank:

Courthouse and Jail Project, Series A

4.000 % 2/1/44 100,000 117,284

Courthouse and Jail Project, Series A

5.000 % 2/1/54 300,000 370,083

Indianapolis Airport Authority Project, Revenue, Series D, Refunding

5.000 % 1/1/26 300,000 357,305 (a)

Total Indiana

1,080,371

Iowa - 0.3%

Iowa State Finance Authority, Midwestern Disaster Area Revenue, Iowa Fertilizer Company Project, Refunding

3.125 % 12/1/22 25,000 25,490

Iowa State Tobacco Settlement Authority Revenue:

Asset Backed Senior Bonds, Class 1, Series A-2, Refunding

4.000 % 6/1/49 100,000 116,379

Asset Backed Senior Bonds, Class 2, Series B-1, Refunding

4.000 % 6/1/49 100,000 115,902

Total Iowa

257,771

Kansas - 0.6%

Wyandotte County, KS, USD #202 Turner, GO, Series A, AGM

4.000 % 9/1/37 400,000 451,802

Kentucky - 3.5%

Ashland, KY, Medical Center Refunding Revenue Bonds:

Ashland Hospital Corporation, King's Daughters Medical Center, Refunding

5.000 % 2/1/25 625,000 717,359

Ashland Hospital Corporation, King's Daughters Medical Center, Refunding

5.000 % 2/1/26 550,000 651,774

See Notes to Financial Statements.

10 Western Asset SMASh Series TF Fund 2021 Semi-Annual Report

Western Asset SMASh Series TF Fund

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

Kentucky - continued

Kentucky State Economic Development Finance Authority Revenue:

Catholic Health Initiatives, Series B, Refunding

2.700 % 11/10/21 $ 175,000 $ 175,782 (b)(c)

Louisville Arena, Louisville Arena Authority Inc., Refunding, AGM

5.000 % 12/1/45 100,000 123,217

Kentucky State PEA, Gas Supply Revenue:

Series A

4.000 % 6/1/26 300,000 344,699 (b)(c)

Series C

4.000 % 6/1/25 200,000 224,739 (b)(c)

Louisville/Jefferson County, KY, Metropolitan Government Health System Revenue, Norton Healthcare Inc., Series A

4.000 % 10/1/40 500,000 579,326

Total Kentucky

2,816,896

Louisiana - 0.4%

Louisiana State PFA, Lease Revenue, Provident Group, Flagship Properties

5.000 % 7/1/42 50,000 59,121

Shreveport, LA, Water & Sewer Revenue, Series A, AGM

5.000 % 12/1/41 10,000 12,233

St. John the Baptist Parish, LA, State Revenue:

Marathon Oil Corp. Project, Refunding

2.200 % 7/1/26 125,000 132,177 (b)(c)

Marathon Oil Corp. Project, Series B-2, Refunding

2.375 % 7/1/26 150,000 159,848 (b)(c)

Total Louisiana

363,379

Massachusetts - 1.4%

Massachusetts State Department of Transportation, Metropolitan Highway System Revenue, Series A, Refunding

5.000 % 1/1/34 250,000 314,967

Massachusetts State DFA Revenue:

Broad Institute Inc., Refunding

5.000 % 4/1/36 85,000 104,233

UMass Boston Student Housing Project

5.000 % 10/1/28 10,000 11,685

Wellforce Issue, Series A, Refunding

5.000 % 7/1/39 50,000 61,459

Worcester Polytechnic Institute, Series B, Refunding

5.000 % 9/1/42 75,000 91,698

Massachusetts State Port Authority Revenue:

Series A, Refunding

5.000 % 7/1/36 160,000 200,985 (a)

Series E

5.000 % 7/1/46 250,000 319,311 (a)

Massachusetts State Water Resources Authority Revenue, Series B, Refunding

5.000 % 8/1/40 50,000 60,220

Total Massachusetts

1,164,558

See Notes to Financial Statements.

Western Asset SMASh Series TF Fund 2021 Semi-Annual Report 11

Schedule of investments (unaudited) (cont'd)

August 31, 2021

Western Asset SMASh Series TF Fund

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

Michigan - 2.8%

Detroit, MI, Downtown Development Authority Revenue, Catalyst Development, Series A, Refunding, AGM

5.000 % 7/1/43 $ 100,000 $ 111,723

Great Lakes Water Authority, MI, Water Supply System Revenue:

Senior Lien, Series A

5.000 % 7/1/45 750,000 952,909

Senior Lien, Series A

5.000 % 7/1/49 650,000 822,652

Michigan State Finance Authority Revenue:

Henry Ford Health System, Series A

4.000 % 11/15/50 100,000 115,223

Tobacco Settlement Asset Backed Senior Bonds, Series A, Refunding

4.000 % 6/1/49 50,000 58,265

Tobacco Settlement Asset Backed Senior Bonds, Series B-1, Refunding

5.000 % 6/1/49 50,000 61,186

Michigan State Strategic Fund Limited Obligation Revenue, I-75 Improvement Project

5.000 % 12/31/43 100,000 121,228 (a)

Total Michigan

2,243,186

Missouri - 0.1%

Missouri State HEFA Revenue, Lutheran Senior Service Projects, Series A

5.000 % 2/1/42 50,000 55,895

Nebraska - 0.6%

Douglas County, NE, Hospital Authority No. 2 Revenue, Children's Hospital Obligated Group, Series A, Refunding

4.000 % 11/15/36 425,000 511,639

Nevada - 0.3%

Sparks, NV, Tourism Improvement, Senior Sales Tax Anticipation Revenue, Series A, Refunding

2.750 % 6/15/28 250,000 260,903 (f)

New Jersey - 7.1%

Essex County, NJ, Improvement Authority, GO:

CHF-Newark LLC, New Jersey Institute of Technology Lease Revenue Bonds, Series A, BAM

5.000 % 8/1/35 180,000 238,270

CHF-Newark LLC, New Jersey Institute of Technology Lease Revenue Bonds, Series A, BAM

5.000 % 8/1/36 215,000 283,664

New Brunswick, NJ, Guaranteed Parking Revenue, Series 2017, AGM

5.000 % 9/1/21 220,000 220,000

New Jersey State EDA Revenue:

Private Activity-The Goethals Bridge Replacement Project, AGM

5.125 % 1/1/39 85,000 94,538 (a)

Private Activity-The Goethals Bridge Replacement Project, AGM

5.125 % 7/1/42 150,000 166,647 (a)

See Notes to Financial Statements.

12 Western Asset SMASh Series TF Fund 2021 Semi-Annual Report

Western Asset SMASh Series TF Fund

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

New Jersey - continued

School Facilities Construction, Series BBB, Refunding

5.500 % 6/15/31 $ 100,000 $ 123,455

School Facilities Construction, Series DDD

5.000 % 6/15/33 50,000 60,590

School Facilities Construction, Series I, Refunding, State Appropriations, (SIFMA Municipal Swap Index Yield + 1.600%)

1.620 % 3/1/28 325,000 329,713 (c)

School Facilities Construction, Series QQQ

5.000 % 6/15/31 500,000 656,596

Transit Transportation Project, Series A

5.000 % 11/1/32 150,000 191,533

New Jersey State EDA, Lease Revenue, Health Department and Taxation Division Office Project, Series A

5.000 % 6/15/33 105,000 129,089

New Jersey State EDA, Special Facility Revenue, Port Newark Container Terminal LLC Project, Refunding

5.000 % 10/1/37 100,000 118,035 (a)

New Jersey State Health Care Facilities Financing Authority Revenue, Hackensack Meridian Health, Series A, Refunding

5.000 % 7/1/38 50,000 60,727

New Jersey State Transportation Trust Fund Authority Revenue:

Highway Reimbursement, Refunding

5.000 % 6/15/31 60,000 71,134

Transportation Program, Series AA

5.250 % 6/15/43 100,000 125,130

Transportation Program, Series AA

4.000 % 6/15/45 500,000 581,227

Transportation Program, Series AA

5.000 % 6/15/45 100,000 114,595

Transportation Program, Series AA, Refunding

5.000 % 6/15/36 300,000 381,912 (d)

Transportation Program, Series BB

4.000 % 6/15/36 500,000 579,410

Transportation System, Series A, Refunding

5.000 % 12/15/25 100,000 118,961

Transportation System, Series A, Refunding

5.000 % 12/15/28 150,000 191,510

New Jersey State Turnpike Authority Revenue:

Series A, Refunding

5.000 % 1/1/35 100,000 118,300

Series G, Refunding

5.000 % 1/1/35 60,000 74,921

New Jersey State, GO, COVID-19 Emergency, Series A

5.000 % 6/1/29 500,000 651,216

Tobacco Settlement Financing Corp., NJ, Revenue, Series A, Refunding

5.250 % 6/1/46 30,000 36,740

Total New Jersey

5,717,913

New Mexico - 0.0%††

Farmington, NM, PCR, Public Service Co. Project, Refunding

2.125 % 6/1/22 35,000 35,469 (b)(c)

See Notes to Financial Statements.

Western Asset SMASh Series TF Fund 2021 Semi-Annual Report 13

Schedule of investments (unaudited) (cont'd)

August 31, 2021

Western Asset SMASh Series TF Fund

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

New York - 13.4%

Hempstead Town, NY, Local Development Corp. Revenue, Hofstra University Project, Refunding

5.000 % 7/1/42 $ 100,000 $ 122,106

Hudson Yards Infrastructure Corp., NY, Second Indenture Revenue, Series A, Refunding

5.000 % 2/15/35 140,000 169,259

Long Island, NY, Power Authority Electric System Revenue, Series B, Refunding

1.650 % 9/1/24 250,000 257,993 (b)(c)

MTA, NY, Transportation Revenue:

Green Bonds, Series A-2

5.000 % 11/15/24 50,000 57,222

Green Bonds, Series D-1

5.000 % 11/15/43 100,000 125,205

Green Bonds, Series D-3

4.000 % 11/15/49 100,000 114,816

Green Bonds, Series E

5.000 % 11/15/33 250,000 322,116

Series A-2

5.000 % 5/15/30 335,000 437,584 (b)(c)

Series F, Refunding

5.000 % 11/15/27 500,000 589,998

New York City, NY, GO:

Subseries F-1

5.000 % 3/1/37 250,000 327,748

Subseries F-1

5.000 % 3/1/50 250,000 317,244

New York City, NY, Industrial Development Agency Revenue, Yankee Stadium Project, Refunding

4.000 % 3/1/45 100,000 114,454

New York City, NY, Municipal Water Finance Authority, Water & Sewer System Revenue:

Second General Resolution Fiscal 2022, Series AA, Subseries AA-1

4.000 % 6/15/51 500,000 587,961

Subordinated, Series BB-1

5.000 % 6/15/46 30,000 36,456

New York City, NY, TFA Future Tax Secured Revenue, Subordinated, Series B-1

5.000 % 8/1/45 700,000 855,039

New York City, NY, TFA Revenue, Future Tax Secured, Subordinate, Series C-1

4.000 % 5/1/40 700,000 835,760

New York State Dormitory Authority Revenue:

New York University, Series A, Refunding

5.000 % 7/1/43 50,000 61,314

Series B, Refunding

5.000 % 2/15/43 100,000 122,506

New York State Dormitory Authority, Sales Tax Revenue:

Bidding Group 3, Series E, Refunding

5.000 % 3/15/38 100,000 126,327

Bidding Group 4, Series E, Refunding

5.000 % 3/15/44 100,000 125,294

New York State Liberty Development Corp., Liberty Revenue, 3 World Trade Center Project, Class 1, Refunding

5.000 % 11/15/44 100,000 110,572 (f)

See Notes to Financial Statements.

14 Western Asset SMASh Series TF Fund 2021 Semi-Annual Report

Western Asset SMASh Series TF Fund

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

New York - continued

New York State Thruway Authority General Revenue:

Junior Indebtedness Obligations, Junior Lien, Series A

5.000 % 1/1/46 $ 50,000 $ 58,373

Junior Indebtedness Obligations, Subordinated, Series B, Refunding

4.000 % 1/1/50 200,000 232,845

New York State Transportation Development Corp., Special Facilities Revenue:

Delta Air Lines Inc., LaGuardia Airport Terminals C and D Redevelopment Project

5.000 % 1/1/30 75,000 92,064 (a)

Delta Air Lines Inc., LaGuardia Airport Terminals C and D Redevelopment Project

5.000 % 1/1/32 45,000 54,862 (a)

Delta Air Lines Inc., LaGuardia Airport Terminals C and D Redevelopment Project

4.375 % 10/1/45 250,000 297,039 (a)

LaGuardia Airport Terminal B Redevelopment Project

5.000 % 7/1/30 50,000 56,315 (a)

LaGuardia Airport Terminal B Redevelopment Project, Series A

5.000 % 7/1/41 25,000 28,000 (a)

LaGuardia Airport Terminal B Redevelopment Project, Series A

5.250 % 1/1/50 750,000 843,612 (a)

Terminal 4 John F. Kennedy International Airport Project, Series A

4.000 % 12/1/40 300,000 347,815 (a)

Port Authority of New York & New Jersey Revenue:

Consolidated Series 185

5.000 % 9/1/25 10,000 11,410 (a)

Consolidated Series 221

4.000 % 7/15/50 500,000 579,469 (a)

Triborough Bridge & Tunnel Authority, NY, Revenue:

General-MTA Bridges & Tunnels, Series A

5.000 % 11/15/49 500,000 643,370

General-MTA Bridges & Tunnels, Series A

5.000 % 11/15/51 265,000 341,530

General-MTA Bridges & Tunnels, Series A

5.000 % 11/15/54 325,000 416,626

General-MTA Bridges & Tunnels, Series A

5.000 % 11/15/56 500,000 644,397

Troy, NY, Capital Resource Corp., Rensselaer Polytechnic Institute Project, Series A, Refunding

5.000 % 9/1/28 325,000 410,929

Total New York

10,875,630

North Carolina - 0.6%

Charlotte, NC, Lease Revenue, COP, Convention Facility Project, Series A, Refunding

4.000 % 6/1/49 70,000 82,241

See Notes to Financial Statements.

Western Asset SMASh Series TF Fund 2021 Semi-Annual Report 15

Schedule of investments (unaudited) (cont'd)

August 31, 2021

Western Asset SMASh Series TF Fund

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

North Carolina - continued

North Carolina State Medical Care Commission, Retirement Facilities Revenue, The Forest at Duke Project

4.000 % 9/1/41 $ 330,000 $ 387,223

North Carolina State Turnpike Authority, Monroe Expressway Toll Revenue, Series A, Refunding

5.000 % 7/1/42 5,000 5,730

Total North Carolina

475,194

Ohio - 3.4%

Buckeye, OH, Tobacco Settlement Financing Authority Revenue:

Senior Bonds, Series A-2, Refunding

4.000 % 6/1/48 100,000 114,935

Senior Bonds, Series B-2, Refunding

5.000 % 6/1/55 250,000 290,923

Ohio State Air Quality Development Authority Revenue:

American Electric Company Project, Series B, Refunding

2.500 % 10/1/29 100,000 110,244 (a)(b)(c)

American Electric Company Project, Series D, Refunding

2.100 % 10/1/24 250,000 260,978 (a)(b)(c)

Ohio State Higher Educational Facility Commission College & University Revenue:

University of Dayton 2018 Project, Series B, Refunding

5.000 % 12/1/34 500,000 621,622

Xavier University 2020 Project

5.000 % 5/1/33 495,000 642,506

Warrensville Heights, OH, School District, GO:

Refunding, BAM

5.000 % 12/1/44 425,000 490,395 (e)

Refunding, BAM

5.000 % 12/1/44 175,000 198,027

Total Ohio

2,729,630

Oklahoma - 0.6%

Oklahoma State Development Finance Authority Revenue, Gilcrease Expressway West Project, Series A

1.625 % 7/6/23 500,000 504,774 (a)

Oregon - 0.4%

Gilliam County, OR, Solid Waste Disposal Revenue, Waste Management Project, Series A

2.400 % 5/2/22 125,000 125,232 (a)(b)(c)

Port of Portland, OR, Airport Revenue, Portland International Airport, Series 26C, Refunding

5.000 % 7/1/26 150,000 180,736 (a)

Total Oregon

305,968

Pennsylvania - 2.7%

Allegheny County, PA, HDA Revenue, University Pittsburgh Medical Center, Series A, Refunding

4.000 % 7/15/38 150,000 176,868

See Notes to Financial Statements.

16 Western Asset SMASh Series TF Fund 2021 Semi-Annual Report

Western Asset SMASh Series TF Fund

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

Pennsylvania - continued

Berks County, PA, IDA, Healthcare Facilities Revenue, Highlands at Wyomissing, Refunding

5.000 % 5/15/32 $ 50,000 $ 59,259

Commonwealth Financing Authority, PA, Tobacco Master Settlement Payment Revenue

5.000 % 6/1/30 50,000 62,420

Pennsylvania State Economic Development Financing Authority, Solid Waste Disposal Revenue, Waste Management Inc. Project

2.150 % 7/1/24 100,000 105,094 (a)(b)(c)

Pennsylvania State Turnpike Commission Revenue:

Series A

5.000 % 12/1/44 175,000 221,330

Series A-1

5.000 % 12/1/47 25,000 30,536

Series B, Refunding

5.000 % 12/1/46 250,000 322,635

Subordinated, Series B

5.000 % 12/1/48 100,000 123,037

Subordinated, Series B

5.000 % 12/1/50 250,000 320,995

Philadelphia, PA, Authority for IDR, Charter School Revenue, Philadelphia Performing Arts: A String Theory Charter School Project, Series 2020, Refunding

5.000 % 6/15/50 100,000 116,815

Philadelphia, PA, Authority for IDR, City Service Agreement Revenue, Rebuild Project

5.000 % 5/1/35 250,000 310,092

Philadelphia, PA, Authority for IDR, Lease Revenue, Series 2019, Refunding

5.000 % 10/1/30 100,000 130,862

Philadelphia, PA, GO, Series B

5.000 % 2/1/35 150,000 190,760

State Public School Building Authority, PA, Lease Revenue, Philadelphia SD Project, Series A, Refunding, AGM, State Aid Withholding

5.000 % 6/1/31 20,000 24,340

Total Pennsylvania

2,195,043

Puerto Rico - 4.3%

Puerto Rico Commonwealth Public Improvement, GO, Series A, Refunding

5.000 % 7/1/41 240,000 206,100 *(g)

Puerto Rico Electric Power Authority Revenue:

Series A

5.000 % 7/1/29 195,000 191,100 *(g)

Series A

5.000 % 7/1/42 270,000 264,600 *(g)

Series A

5.050 % 7/1/42 100,000 98,000 *(g)

Series XX

5.250 % 7/1/40 360,000 354,150 *(g)

Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue:

CAB, Restructured, Series A-1

0.000 % 7/1/27 60,000 55,388

CAB, Restructured, Series A-1

0.000 % 7/1/46 160,000 53,462

CAB, Restructured, Series A-1

0.000 % 7/1/51 850,000 206,563

Restructured, Series A-1

4.550 % 7/1/40 10,000 11,507

See Notes to Financial Statements.

Western Asset SMASh Series TF Fund 2021 Semi-Annual Report 17

Schedule of investments (unaudited) (cont'd)

August 31, 2021

Western Asset SMASh Series TF Fund

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

Puerto Rico - continued

Restructured, Series A-1

4.750 % 7/1/53 $ 250,000 $ 286,101

Restructured, Series A-1

5.000 % 7/1/58 1,360,000 1,574,688

Restructured, Series A-2

4.329 % 7/1/40 130,000 147,782

Total Puerto Rico

3,449,441

South Dakota - 0.0%††

South Dakota State HEFA Revenue, Regional Health

5.000 % 9/1/40 25,000 30,009

Tennessee - 1.0%

Knox County, TN, Health, Educational & Housing Facility Board Revenue, University Health System Inc., Series A

5.000 % 9/1/30 100,000 124,341

Metropolitan Government of Nashville & Davidson County, TN, Water & Sewer Revenue, Subordinated, Series B, Refunding

5.000 % 7/1/46 50,000 61,442

Tennessee State Energy Acquisition Corp., Natural Gas Revenue:

Series 2018

4.000 % 11/1/25 100,000 113,386 (b)(c)

Series A

5.250 % 9/1/26 425,000 509,840

Total Tennessee

809,009

Texas - 4.5%

Arlington, TX, Higher Education Finance Corp., Education Revenue, Uplift Education, Series A, Refunding, PSF - GTD

5.000 % 12/1/37 20,000 24,260

Arlington, TX, Special Tax Revenue, Subordinated Lien, Series C, BAM

5.000 % 2/15/41 100,000 111,972

Austin, TX, Airport System Revenue, Series 2019B

5.000 % 11/15/44 250,000 313,228 (a)

Central Texas Regional Mobility Authority Revenue:

Senior Lien, Series B

4.000 % 1/1/51 250,000 292,583

Senior Lien, Series E

4.000 % 1/1/50 250,000 290,219

Forney, TX, ISD, GO, School Building, Series 2019, PSF - GTD

5.000 % 2/15/49 100,000 120,107

Grand Parkway Transportation Corp., TX, System Toll Revenue, First Tier Toll Revenue, Series C, Refunding

4.000 % 10/1/40 500,000 592,556

Harris County, TX, Cultural Education Facilities Finance Corp., Thermal Utility Revenue, Teco Project, Refunding

5.000 % 11/15/33 200,000 247,595

See Notes to Financial Statements.

18 Western Asset SMASh Series TF Fund 2021 Semi-Annual Report

Western Asset SMASh Series TF Fund

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

Texas - continued

Houston, TX, Airport System Revenue:

Special Facilities, United Airlines Inc., Technical Operations Center Project

5.000 % 7/15/28 $ 100,000 $ 120,717 (a)

Special Facilities, United Airlines Inc., Terminal Improvement Project, Series B1

4.000 % 7/15/41 400,000 436,041 (a)

Subordinated Lien, Series A, Refunding

4.000 % 7/1/46 400,000 469,301 (a)

New Hope Cultural Education Facilities Finance Corp., TX, Senior Living Revenue, Cardinal Bay Inc., Village on the Park/Carriage Inn Project, Series A1

5.000 % 7/1/31 15,000 16,005

Southwest Texas, Higher Education Authority Inc. Revenue, Southern Methodist University Project, Refunding

5.000 % 10/1/41 50,000 60,585

Tarrant County, TX, Cultural Education Facilities Finance Corp., Retirement Facility Revenue:

Buckner Retirement Services Inc. Project, Refunding

5.000 % 11/15/37 50,000 60,202

Buckner Retirement Services Inc. Project, Refunding

5.000 % 11/15/46 50,000 59,268

Texas State, Municipal Gas Acquisition & Supply Corp. I, Gas Supply Revenue, Senior Lien, Series D

6.250 % 12/15/26 155,000 181,828

Texas State Private Activity Bond Surface Transportation Corp. Revenue:

LBJ Infrastructure Group LLC I-635 Managed Lanes Project, Series L

4.000 % 12/31/38 75,000 89,104

Senior Lien, Blueridge Transportation Group LLC

5.000 % 12/31/40 5,000 5,669 (a)

West Harris County, TX, Regional Water Authority Revenue, Series 2019

4.000 % 12/15/49 100,000 116,766

Total Texas

3,608,006

U.S. Virgin Islands - 0.4%

Virgin Islands Public Finance Authority Revenue:

Matching Fund Loan, Senior Lien, Series A

5.000 % 10/1/29 155,000 155,390

Matching Fund Loan, Subordinated Lien, Series B

5.250 % 10/1/29 175,000 172,367

Total U.S. Virgin Islands

327,757

Utah - 3.1%

Salt Lake City, UT, Airport Revenue, Salt Lake City International Airport, Series A

5.000 % 7/1/43 250,000 305,230 (a)

Utah State Charter School Finance Authority, Charter School Revenue:

Syracuse Arts Academy Project, UT CSCE

5.000 % 4/15/37 5,000 5,762

See Notes to Financial Statements.

Western Asset SMASh Series TF Fund 2021 Semi-Annual Report 19

Schedule of investments (unaudited) (cont'd)

August 31, 2021

Western Asset SMASh Series TF Fund

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

Utah - continued

Utah Charter Academies Project, Series 2018, UT CSCE

5.000 % 10/15/38 $ 220,000 $ 260,600

Utah State Infrastructure Agency, Telecommunications Revenue, Series A

5.250 % 10/15/33 200,000 242,057

Vineyard Redevelopment Agency, UT, Tax Increment Revenue:

Series 2021, Refunding, AGM

5.000 % 5/1/31 235,000 311,723

Series 2021, Refunding, AGM

4.000 % 5/1/37 275,000 329,838

Series 2021, Refunding, AGM

4.000 % 5/1/39 300,000 358,132

Series 2021, Refunding, AGM

4.000 % 5/1/41 290,000 344,076

Series 2021, Refunding, AGM

4.000 % 5/1/46 275,000 322,177

Total Utah

2,479,595

Virginia - 0.9%

Arlington County, VA, IDA Revenue:

Refunding

5.000 % 2/15/43 50,000 60,578

Virginia Hospital Center, Refunding

5.000 % 7/1/36 200,000 260,422

Virginia State Small Business Financing Authority Revenue:

Bon Secours Mercy Health, Series A, Refunding

4.000 % 12/1/49 250,000 291,868

National Senior Campuses, Inc., Series A, Refunding

5.000 % 1/1/34 85,000 104,559

Total Virginia

717,427

Washington - 0.5%

Port of Seattle, WA, Intermediate Lien Revenue, Series 2019

5.000 % 4/1/34 250,000 313,559 (a)

Washington State Health Care Facilities Authority Revenue, Seattle Cancer Care Alliance, Refunding

5.000 % 9/1/55 100,000 126,847

Total Washington

440,406

West Virginia - 1.2%

West Virginia Parkways Authority, WV, Turnpike Toll Revenue, Senior Lien

5.000 % 6/1/33 600,000 808,580

West Virginia University Revenue, West Virginia Projects, Series B, Refunding

5.000 % 10/1/29 100,000 128,474 (b)(c)

Total West Virginia

937,054

See Notes to Financial Statements.

20 Western Asset SMASh Series TF Fund 2021 Semi-Annual Report

Western Asset SMASh Series TF Fund

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

Wisconsin - 0.2%

Public Finance Authority, WI, Revenue, Carmelite System Inc., Obligated Group, Series 2020

5.000 % 1/1/40 $ 50,000 $ 60,836

Public Finance Authority, WI, Student Housing Revenue, CHF Wilmington LLC, University of North Carolina at Wilmington Project, AGM

5.000 % 7/1/53 100,000 119,553

Total Wisconsin

180,389

Total Investments before Short-Term Investments (Cost - $70,203,710)

75,137,898
Short-Term Investments - 8.2%
Municipal Bonds - 8.2%

Arizona - 0.1%

Phoenix, AZ, IDA, Health Care Facilities Revenue, Mayo Clinic, Series B, SPA - Northern Trust Co.

0.010 % 11/15/52 100,000 100,000 (h)(i)

California - 0.6%

San Francisco, CA, City & County Airport Commission, International Airport Revenue, Second Series A, Refunding, LOC - Bank of America N.A.

0.030 % 5/1/30 500,000 500,000 (a)(h)(i)

Florida - 0.4%

St. Lucie County, FL, Solid Waste Disposal Revenue, Florida Power & Light Co. Project, Refunding

0.020 % 5/1/24 300,000 300,000 (a)(h)(i)

Maryland - 0.9%

Maryland State HEFA Revenue, University of Maryland Medical System, Series D, LOC - TD Bank N.A.

0.010 % 7/1/41 700,000 700,000 (h)(i)

Massachusetts - 0.6%

Massachusetts State DFA Revenue:

Boston University, Series U-6C, Refunding, LOC - TD Bank N.A.

0.010 % 10/1/42 100,000 100,000 (h)(i)

Boston University, Series U-6E, Refunding, LOC - TD Bank N.A.

0.010 % 10/1/42 355,000 355,000 (h)(i)

Total Massachusetts

455,000

Mississippi - 2.4%

Mississippi State Business Finance Corp., Gulf Opportunity Zone, IDR:

Chevron USA Inc. Project, Series A

0.010 % 11/1/35 100,000 100,000 (h)(i)

Chevron USA Inc. Project, Series E

0.010 % 12/1/30 500,000 500,000 (h)(i)

Chevron USA Inc. Project, Series G

0.010 % 11/1/35 700,000 700,000 (h)(i)

See Notes to Financial Statements.

Western Asset SMASh Series TF Fund 2021 Semi-Annual Report 21

Schedule of investments (unaudited) (cont'd)

August 31, 2021

Western Asset SMASh Series TF Fund

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

Mississippi - continued

Chevron USA Inc. Project, Series I

0.010 % 11/1/35 $ 100,000 $ 100,000 (h)(i)

Chevron USA Inc. Project, Series K

0.010 % 11/1/35 500,000 500,000 (h)(i)

Total Mississippi

1,900,000

New Jersey - 0.1%

New Jersey State Health Care Facilities Financing Authority Revenue, Series D, LOC - TD Bank N.A.

0.010 % 7/1/43 100,000 100,000 (h)(i)

New York - 2.5%

New York City, NY, GO, Subseries G-6, LOC - Mizuho Bank Ltd.

0.010 % 4/1/42 525,000 525,000 (h)(i)

New York City, NY, Municipal Water Finance Authority, Water & Sewer System Revenue:

Second General Resolution Fiscal 2008, Series BB-5, Refunding, SPA - Bank of America N.A.

0.010 % 6/15/33 800,000 800,000 (h)(i)

Second General Resolution Fiscal 2014, Series AA-5, Refunding, SPA - Mizuho Bank Ltd.

0.010 % 6/15/48 600,000 600,000 (h)(i)

New York City, NY, TFA Revenue Future Tax Secured, Subseries A, Refunding, SPA - TD Bank N.A.

0.010 % 11/1/29 100,000 100,000 (h)(i)

Total New York

2,025,000

Oregon - 0.1%

Oregon State Facilities Authority Revenue, Peacehealth, Series A, Refunding, LOC - U.S. Bank N.A.

0.010 % 8/1/34 100,000 100,000 (h)(i)

Pennsylvania - 0.1%

Lancaster County, PA, Hospital Authority Revenue, Series D, Refunding, LOC - JPMorgan Chase & Co.

0.020 % 7/1/34 100,000 100,000 (h)(i)

Texas - 0.4%

Lower Neches Valley Authority, TX, Industrial Development Corp. Revenue, ExxonMobil Corp., Series B, Refunding

0.020 % 11/1/29 300,000 300,000 (a)(h)(i)

Total Municipal Bonds (Cost - $6,580,000)

6,580,000
Shares
Overnight Deposits - 0.0%††

BNY Mellon Cash Reserve Fund (Cost - $6,483)

0.010 % 6,483 6,483

Total Short-Term Investments (Cost - $6,586,483)

6,586,483

Total Investments - 101.0% (Cost - $76,790,193)

81,724,381

Liabilities in Excess of Other Assets - (1.0)%

(781,342 )

Total Net Assets - 100.0%

$ 80,943,039

See Notes to Financial Statements.

22 Western Asset SMASh Series TF Fund 2021 Semi-Annual Report

Western Asset SMASh Series TF Fund

††

Represents less than 0.1%.

*

Non-income producing security.

(a)

Income from this issue is considered a preference item for purposes of calculating the alternative minimum tax ("AMT").

(b)

Maturity date shown represents the mandatory tender date.

(c)

Variable rate security. Interest rate disclosed is as of the most recent information available. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above.

(d)

Securities traded on a when-issued or delayed delivery basis.

(e)

Pre-Refunded bonds are generally escrowed with U.S. government obligations and/or U.S. government agency securities.

(f)

Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid pursuant to guidelines approved by the Board of Trustees.

(g)

The coupon payment on this security is currently in default as of August 31, 2021.

(h)

Variable rate demand obligations ("VRDOs") have a demand feature under which the Fund can tender them back to the issuer or liquidity provider on no more than 7 days notice. The interest rate generally resets on a daily or weekly basis and is determined on the specific interest rate reset date by the remarketing agent, pursuant to a formula specified in official documents for the VRDO, or set at the highest rate allowable as specified in official documents for the VRDO. VRDOs are benchmarked to the Securities Industry and Financial Markets Association ("SIFMA") Municipal Swap Index. The SIFMA Municipal Swap Index is compiled from weekly interest rate resets of tax-exempt VRDOs reported to the Municipal Securities Rulemaking Board's Short-term Obligation Rate Transparency System.

(i)

Maturity date shown is the final maturity date. The security may be sold back to the issuer before final maturity.

See Notes to Financial Statements.

Western Asset SMASh Series TF Fund 2021 Semi-Annual Report 23

Schedule of investments (unaudited) (cont'd)

August 31, 2021

Western Asset SMASh Series TF Fund

Abbreviation(s) used in this schedule:

AGM - Assured Guaranty Municipal Corporation - Insured Bonds
BAM - Build America Mutual - Insured Bonds
BAN - Bond Anticipation Notes
CAB - Capital Appreciation Bonds
CDA - Communities Development Authority
COP - Certificates of Participation
CSCE - Charter School Credit Enhancement
CWA - Clean Water Act
DFA - Development Finance Agency
EDA - Economic Development Authority
EFA - Educational Facilities Authority
GO - General Obligation
GTD - Guaranteed
HDA - Housing Development Authority
HEFA - Health & Educational Facilities Authority
IDA - Industrial Development Authority
IDR - Industrial Development Revenue
ISD - Independent School District
LOC - Letter of Credit
MFA - Municipal Finance Authority
MTA - Metropolitan Transportation Authority
NATL - National Public Finance Guarantee Corporation - Insured Bonds
PCR - Pollution Control Revenue
PEA - Public Energy Authority
PFA - Public Facilities Authority
PSF - Permanent School Fund
SD - School District
SIFMA - Securities Industry and Financial Markets Association
SPA - Standby Bond Purchase Agreement - Insured Bonds
TFA - Transitional Finance Authority
USD - Unified School District

See Notes to Financial Statements.

24 Western Asset SMASh Series TF Fund 2021 Semi-Annual Report

Statement of assets and liabilities (unaudited)

August 31, 2021

Assets:

Investments, at value (Cost - $76,790,193)

$ 81,724,381

Interest receivable

703,128

Receivable for Fund shares sold

111,183

Receivable from investment manager

15,866

Prepaid expenses

17,349

Total Assets

82,571,907
Liabilities:

Payable for securities purchased

1,596,869

Trustees' fees payable

257

Accrued expenses

31,742

Total Liabilities

1,628,868
Total Net Assets $ 80,943,039
Net Assets:

Par value (Note 5)

$ 74

Paid-in capital in excess of par value

76,463,909

Total distributable earnings (loss)

4,479,056
Total Net Assets $ 80,943,039
Shares Outstanding 7,372,041
Net Asset Value $10.98

See Notes to Financial Statements.

Western Asset SMASh Series TF Fund 2021 Semi-Annual Report 25

Statement of operations (unaudited)

For the Six Months Ended August 31, 2021

Investment Income:

Interest

$ 899,710
Expenses:

Fund accounting fees

34,733

Registration fees

17,514

Audit and tax fees

15,197

Legal fees

3,763

Shareholder reports

2,132

Trustees' fees

1,086

Insurance

763

Commitment fees (Note 6)

250

Interest expense

234

Custody fees

225

Transfer agent fees

197

Miscellaneous expenses

2,973

Total Expenses

79,067

Less: Fee waivers and/or expense reimbursements (Note 2)

(79,067)

Net Expenses

-
Net Investment Income 899,710
Realized and Unrealized Gain on Investments (Notes 1 and 3):

Net Realized Gain From Investment Transactions

186,802

Change in Net Unrealized Appreciation (Depreciation) From Investments

1,774,675
Net Gain on Investments 1,961,477
Increase in Net Assets From Operations $ 2,861,187

See Notes to Financial Statements.

26 Western Asset SMASh Series TF Fund 2021 Semi-Annual Report

Statements of changes in net assets

For the Six Months Ended August 31, 2021 (unaudited)

and the Year Ended February 28, 2021

August 31 February 28
Operations:

Net investment income

$ 899,710 $ 1,615,251

Net realized gain (loss)

186,802 (244,704)

Change in net unrealized appreciation (depreciation)

1,774,675 (521,360)

Increase in Net Assets From Operations

2,861,187 849,187
Distributions to Shareholders From (Note 1):

Total distributable earnings

(879,068) (1,621,097)

Decrease in Net Assets From Distributions to Shareholders

(879,068) (1,621,097)
Fund Share Transactions (Note 5):

Net proceeds from sale of shares

18,031,519 31,900,100

Cost of shares repurchased

(7,072,440) (21,792,737)

Increase in Net Assets From Fund Share Transactions

10,959,079 10,107,363

Increase in Net Assets

12,941,198 9,335,453
Net Assets:

Beginning of period

68,001,841 58,666,388

End of period

$ 80,943,039 $ 68,001,841

See Notes to Financial Statements.

Western Asset SMASh Series TF Fund 2021 Semi-Annual Report 27

Financial highlights

For a share of beneficial interest outstanding throughout each year ended February 28, unless otherwise noted:
20211,2 20211 20201,3 20191 20181 20171
Net asset value, beginning of period $10.69 $10.86 $10.09 $10.00 $9.84 $10.05
Income (loss) from operations:

Net investment income

0.13 0.28 0.28 0.28 0.24 0.28

Net realized and unrealized gain (loss)

0.28 (0.17) 0.77 0.07 0.15 4 (0.20)

Total income from operations

0.41 0.11 1.05 0.35 0.39 0.08
Less distributions from:

Net investment income

(0.12) (0.28) (0.28) (0.26) (0.23) (0.28)

Net realized gains

- - - - - (0.01)

Total distributions

(0.12) (0.28) (0.28) (0.26) (0.23) (0.29)
Net asset value, end of period $10.98 $10.69 $10.86 $10.09 $10.00 $9.84

Total return5

3.88 % 1.09 % 10.53 % 3.53 % 3.99 % 0.83 %
Net assets, end of period (000s) $80,943 $68,002 $58,666 $32,979 $23,937 $2,264
Ratios to average net assets:

Gross expenses6

0.20 %7 0.25 % 0.34 % 0.56 % 0.91 % 7.57 %

Net expenses8,9

0.00 7 0.00 0.00 0.00 0.00 0.00

Net investment income

2.31 7 2.66 2.72 2.76 2.44 2.79
Portfolio turnover rate 5 % 35 % 9 % 22 % 16 % 14 %
1

Per share amounts have been calculated using the average shares method.

2

For the six months ended August 31, 2021 (unaudited).

3

For the year ended February 29.

4

Calculation of the net gain per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized losses presented in the Statement of Operations due to the timing of the sales and repurchases of Fund shares in relation to fluctuating market values of the investments of the Fund.

5

Performance figures do not reflect the effect of fees and expenses associated with a separately managed account, nor a management fee or other operating expenses of the Fund. Such management fees are paid directly or indirectly by the separately managed account sponsor to the Fund's manager or subadviser. All operating expenses of the Fund were reimbursed by the manager, pursuant to an expense reimbursement arrangement between the Fund and the manager. If such fees were included, the total return would have been lower. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized.

6

Gross expenses do not include management fees paid to the manager and subadviser. Management fees are paid directly or indirectly by the separately managed account sponsor.

7

Annualized.

8

The Fund's manager has entered into an expense reimbursement arrangement with the Fund, pursuant to which the Fund's manager has agreed to reimburse 100% of the Fund's ordinary operating expenses. The expense reimbursement arrangement does not cover interest, brokerage, taxes and extraordinary expenses. This arrangement cannot be terminated prior to December 31, 2022 without the Board of Trustees' consent.

9

Reflects fee waivers and/or expense reimbursements.

See Notes to Financial Statements.

28 Western Asset SMASh Series TF Fund 2021 Semi-Annual Report

Notes to financial statements (unaudited)

1. Organization and significant accounting policies

Western Asset SMASh Series TF Fund (the "Fund") is a separate non-diversified investment series of Legg Mason Partners Institutional Trust (the "Trust"). The Trust, a Maryland statutory trust, is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company.

Shares of the Fund may be purchased only by or on behalf of separately managed account clients where an affiliate of Legg Mason Partners Fund Advisor, LLC ("LMPFA") has an agreement to serve as investment adviser or subadviser (each affiliate, a "Managed Account Adviser") to the account with the managed account program sponsor (the "Program Sponsor") (typically, a registered investment adviser or broker/dealer) or directly with the client. Shareholders of the Fund pay fees to their separately managed account sponsor, some of which are paid to affiliates of LMPFA. LMPFA and the subadviser do not charge investment management fees to the Fund.

The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles ("GAAP"). Estimates and assumptions are required to be made regarding assets, liabilities and changes in net assets resulting from operations when financial statements are prepared. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ. Subsequent events have been evaluated through the date the financial statements were issued.

(a) Investment valuation. The valuations for fixed income securities (which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and certain derivative instruments are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing services typically use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Investments in open-end funds are valued at the closing net asset value per share of each fund on the day of valuation. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded. If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the manager to be unreliable, the market price may be determined by the manager using quotations from one or more broker/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved by the Fund's Board of Trustees.

Western Asset SMASh Series TF Fund 2021 Semi-Annual Report 29

Notes to financial statements (unaudited) (cont'd)

The Board of Trustees is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Global Fund Valuation Committee (the "Valuation Committee"). The Valuation Committee, pursuant to the policies adopted by the Board of Trustees, is responsible for making fair value determinations, evaluating the effectiveness of the Fund's pricing policies, and reporting to the Board of Trustees. When determining the reliability of third party pricing information for investments owned by the Fund, the Valuation Committee, among other things, conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.

The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuer's financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts' research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.

For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Trustees, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such back testing monthly and fair valuation occurrences are reported to the Board of Trustees quarterly.

The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.

30 Western Asset SMASh Series TF Fund 2021 Semi-Annual Report

GAAP establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are summarized in the three broad levels listed below:

•

Level 1 - quoted prices in active markets for identical investments

•

Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

•

Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used in valuing the Fund's assets carried at fair value:

ASSETS
Description Quoted Prices
(Level 1) 		Other Significant
Observable
Inputs (Level 2)

Significant
Unobservable
Inputs

(Level 3)

Total
Municipal Bonds† - $ 75,137,898 - $ 75,137,898
Short-Term Investments†:

Municipal Bonds

- 6,580,000 - 6,580,000

Overnight Deposits

- 6,483 - 6,483
Total Short-Term Investments - 6,586,483 - 6,586,483
Total Investments - $ 81,724,381 - $ 81,724,381
†

See Schedule of Investments for additional detailed categorizations.

(b) Securities traded on a when-issued and delayed delivery basis. The Fund may trade securities on a when-issued or delayed delivery basis. In when-issued and delayed delivery transactions, the securities are purchased or sold by the Fund with payment and delivery taking place in the future in order to secure what is considered to be an advantageous price and yield to the Fund at the time of entering into the transaction.

Purchasing such securities involves risk of loss if the value of the securities declines prior to settlement. These securities are subject to market fluctuations and their current value is determined in the same manner as for other securities.

(c) Security transactions and investment income. Security transactions are accounted for on a trade date basis. Interest income (including interest income from payment-in-kind securities), adjusted for amortization of premium and accretion of discount, is recorded on the accrual basis. The cost of investments sold is determined by use of the specific identification method. To the extent any issuer defaults or a credit event occurs that impacts

Western Asset SMASh Series TF Fund 2021 Semi-Annual Report 31

Notes to financial statements (unaudited) (cont'd)

the issuer, the Fund may halt any additional interest income accruals and consider the realizability of interest accrued up to the date of default or credit event.

(d) Distributions to shareholders. Distributions from net investment income of the Fund, if any, are declared and paid on a monthly basis. The Fund intends to satisfy conditions that will enable interest from municipal securities, which is exempt from federal and certain state income taxes, to retain such tax-exempt status when distributed to the shareholders of the Fund. Distributions of net realized gains, if any, are taxable and are declared at least annually. Distributions to shareholders of the Fund are recorded on the ex-dividend date and are determined in accordance with income tax regulations, which may differ from GAAP.

(e) Compensating balance arrangements. The Fund has an arrangement with its custodian bank whereby a portion of the custodian's fees is paid indirectly by credits earned on the Fund's cash on deposit with the bank.

(f) Federal and other taxes. It is the Fund's policy to comply with the federal income and excise tax requirements of the Internal Revenue Code of 1986 (the "Code"), as amended, applicable to regulated investment companies. Accordingly, the Fund intends to distribute its taxable income and net realized gains, if any, to shareholders in accordance with timing requirements imposed by the Code. Therefore, no federal or state income tax provision is required in the Fund's financial statements.

Management has analyzed the Fund's tax positions taken on income tax returns for all open tax years and has concluded that as of February 28, 2021, no provision for income tax is required in the Fund's financial statements. The Fund's federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.

(g) Reclassification. GAAP requires that certain components of net assets be reclassified to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share.

2. Investment management agreement and other transactions with affiliates

LMPFA is the Fund's investment manager. Western Asset Management Company, LLC ("Western Asset") is the Fund's subadviser. LMPFA and Western Asset are indirect, wholly-owned subsidiaries of Franklin Resources, Inc. ("Franklin Resources").

LMPFA and the subadviser do not charge investment management fees to the Fund. However, the Fund is an integral part of the separately managed account program, and LMPFA and the subadviser will be compensated directly or indirectly by separately managed account program sponsors. LMPFA provides administrative and certain oversight services to the Fund. LMPFA delegates to the subadviser the day-to-day portfolio management of the Fund.

32 Western Asset SMASh Series TF Fund 2021 Semi-Annual Report

LMPFA has entered into an expense reimbursement arrangement with the Fund, pursuant to which LMPFA has agreed to reimburse 100% of the Fund's ordinary operating expenses. The expense reimbursement arrangement does not cover interest, brokerage, taxes and extraordinary expenses. This expense reimbursement arrangement cannot be terminated prior to December 31, 2022 without the Board of Trustees' consent.

During the six months ended August 31, 2021, fees waived and/or expenses reimbursed amounted to $79,067.

Franklin Distributors, LLC (formerly known as Legg Mason Investor Services, LLC prior to July 7, 2021) ("Franklin Distributors") serves as the Fund's sole and exclusive distributor. Franklin Distributors is an indirect, wholly-owned broker-dealer subsidiary of Franklin Resources.

All officers and one Trustee of the Trust are employees of Franklin Resources or its affiliates and do not receive compensation from the Trust.

The Fund is permitted to purchase or sell securities, typically short-term variable rate demand obligations, from or to certain other affiliated funds or portfolios under specified conditions outlined in procedures adopted by the Board of Trustees. The procedures have been designed to provide assurance that any purchase or sale of securities by the Fund from or to another fund or portfolio that is, or could be considered, an affiliate by virtue of having a common investment manager or subadviser (or affiliated investment manager or subadviser), common Trustees and/or common officers complies with Rule 17a-7 under the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. For the six months ended August 31, 2021, such purchase and sale transactions (excluding accrued interest) were $12,258,500 and $13,900,000, respectively.

3. Investments

During the six months ended August 31, 2021, the aggregate cost of purchases and proceeds from sales of investments (excluding short-term investments) were as follows:

Purchases $ 16,345,601
Sales 3,578,244

At August 31, 2021, the aggregate cost of investments and the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

Cost Gross
Unrealized
Appreciation 		Gross
Unrealized
Depreciation 		Net
Unrealized
Appreciation
Securities $ 76,790,193 $ 4,979,610 $ (45,422) $ 4,934,188
Western Asset SMASh Series TF Fund 2021 Semi-Annual Report 33

Notes to financial statements (unaudited) (cont'd)

4. Derivative instruments and hedging activities

During the six months ended August 31, 2021, the Fund did not invest in derivative instruments.

5. Shares of beneficial interest

At August 31, 2021, the Trust had an unlimited number of shares of beneficial interest authorized with a par value of $0.00001 per share. Each share represents an identical interest and has the same rights.

Transactions in shares of the Fund were as follows:

Six Months Ended
August 31, 2021 		Year Ended
February 28, 2021
Shares sold 1,655,911 3,055,100
Shares repurchased (645,313) (2,095,843)
Net increase 1,010,598 959,257

6. Redemption facility

The Fund and certain other participating funds within the Trust, together with other U.S. registered and foreign investment funds (collectively, the "Borrowers") managed by LMPFA or Franklin Resources, are borrowers in a joint syndicated senior unsecured credit facility totaling $2.675 billion (the "Global Credit Facility"). The Global Credit Facility provides a source of funds to the Borrowers for temporary and emergency purposes, including the ability to meet future unanticipated or unusually large redemption requests. Unless renewed, the Global Credit Facility will terminate on February 4, 2022.

Under the terms of the Global Credit Facility, the Fund shall, in addition to interest charged on any borrowings made by the Fund and other costs incurred by the Fund, pay its share of fees and expenses incurred in connection with the implementation and maintenance of the Global Credit Facility, based upon its relative share of the aggregate net assets of all the Borrowers, including an annual commitment fee of 0.15% based upon the unused portion of the Global Credit Facility. These fees are reflected in the Statement of Operations. The Fund did not utilize the Global Credit Facility during the six months ended August 31, 2021.

7. Deferred capital losses

As of February 28, 2021, the Fund had deferred capital losses of $755,181, which have no expiration date, that will be available to offset future taxable capital gains.

8. Recent accounting pronouncement

In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04,Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In January 2021, the FASB issued ASU No. 2021-01, with further amendments to Topic 848. The amendments in the ASUs provide optional temporary accounting recognition and financial reporting relief from

34 Western Asset SMASh Series TF Fund 2021 Semi-Annual Report

the effect of certain types of contract modifications due to the planned discontinuation of the LIBOR and other interbank-offered based reference rates as of the end of 2021 and 2023. The ASUs are effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management has reviewed the requirements and believes the adoption of these ASUs will not have a material impact on the financial statements.

9. Other matters

The outbreak of the respiratory illness COVID-19 (commonly referred to as "coronavirus") has continued to rapidly spread around the world, causing considerable uncertainty for the global economy and financial markets. The ultimate economic fallout from the pandemic, and the long-term impact on economies, markets, industries and individual issuers, are not known. The COVID-19 pandemic could adversely affect the value and liquidity of the Fund's investments, impair the Fund's ability to satisfy redemption requests, and negatively impact the Fund's performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to the Fund by its service providers.

* * *

The Fund's investments, payment obligations, and financing terms may be based on floating rates, such as the London Interbank Offered Rate, or "LIBOR," which is the offered rate for short-term Eurodollar deposits between major international banks. On March 5, 2021, the ICE Benchmark Administration, the administrator of LIBOR, stated that it will cease the publication of (i) the overnight and one-, three-, six- and twelve-month USD LIBOR settings immediately following the LIBOR publication on Friday, June 30, 2023 and (ii) all other LIBOR settings, including the one-week and two-month USD LIBOR settings, immediately following the LIBOR publication on Friday, December 31, 2021. There remains uncertainty regarding the nature of any replacement rate and the impact of the transition from LIBOR on the Fund's transactions and the financial markets generally. As such, the potential effect of a transition away from LIBOR on the Fund or the Fund's investments cannot yet be determined.

Western Asset SMASh Series TF Fund 2021 Semi-Annual Report 35

Western Asset

SMASh Series TF Fund

Trustees

Robert Abeles, Jr.

Jane F. Dasher

Anita L. DeFrantz

Susan B. Kerley

Michael Larson

Ronald L. Olson

Avedick B. Poladian

William E.B. Siart

Chairman

Jaynie M. Studenmund

Peter J. Taylor

Jane Trust

Investment manager

Legg Mason Partners Fund Advisor, LLC

Subadviser

Western Asset Management Company, LLC

Distributor

Franklin Distributors, LLC†

Custodian

The Bank of New York Mellon

†

Effective July 7, 2021, Legg Mason Investor Services, LLC was renamed Franklin Distributors, LLC.

Transfer agent

BNY Mellon Investment

Servicing (US) Inc.

4400 Computer Drive

Westborough, MA 01581

Independent registered public accounting firm

PricewaterhouseCoopers LLP

Baltimore, MD

Western Asset SMASh Series TF Fund

The Fund is a separate investment series of Legg Mason Partners Institutional Trust, a Maryland statutory trust.

Western Asset SMASh Series TF Fund

Legg Mason Funds

620 Eighth Avenue, 47th Floor

New York, NY 10018

The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund's Forms N-PORT are available on the SEC's website at www.sec.gov. To obtain information on Form N-PORT, shareholders can call the Fund at 1-877-721-1926.

Information on how the Fund voted proxies relating to portfolio securities during the prior 12-month period ended June 30th of each year and a description of the policies and procedures that the Fund uses to determine how to vote proxies related to portfolio transactions are available (1) without charge, upon request, by calling the Fund at 1-877-721-1926, (2) at www.franklintempleton.com and (3) on the SEC's website at www.sec.gov.

This report is submitted for the general information of the shareholders of Western Asset SMASh Series TF Fund and is not intended for distribution to prospective investors.

This report must be preceded or accompanied by a free prospectus. Investors should consider the Fund's investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other important information about the Fund. Please read the prospectus carefully before investing. www.franklintempleton.com

© 2021 Franklin Distributors, LLC,

Member FINRA/SIPC. All rights reserved.

Legg Mason Funds Privacy and Security Notice

Your Privacy and the Security of Your Personal Information is Very Important to the Legg Mason Funds

This Privacy and Security Notice (the "Privacy Notice") addresses the Legg Mason Funds' privacy and data protection practices with respect to nonpublic personal information the Funds receive. The Legg Mason Funds include any funds sold by the Funds' distributor, Franklin Distributors, LLC, as well as Legg Mason-sponsored closed-end funds. The provisions of this Privacy Notice apply to your information both while you are a shareholder and after you are no longer invested with the Funds.

The Type of Nonpublic Personal Information the Funds Collect About You

The Funds collect and maintain nonpublic personal information about you in connection with your shareholder account. Such information may include, but is not limited to:

•

Personal information included on applications or other forms;

•

Account balances, transactions, and mutual fund holdings and positions;

•

Bank account information, legal documents, and identity verification documentation;

•

Online account access user IDs, passwords, security challenge question responses; and

•

Information received from consumer reporting agencies regarding credit history and creditworthiness (such as the amount of an individual's total debt, payment history, etc.).

How the Funds Use Nonpublic Personal Information About You

The Funds do not sell or share your nonpublic personal information with third parties or with affiliates for their marketing purposes, or with other financial institutions or affiliates for joint marketing purposes, unless you have authorized the Funds to do so. The Funds do not disclose any nonpublic personal information about you except as may be required to perform transactions or services you have authorized or as permitted or required by law.

The Funds may disclose information about you to:

•

Employees, agents, and affiliates on a "need to know" basis to enable the Funds to conduct ordinary business, or to comply with obligations to government regulators;

•

Service providers, including the Funds' affiliates, who assist the Funds as part of the ordinary course of business (such as printing, mailing services, or processing or servicing your account with us) or otherwise perform services on the Funds' behalf, including companies that may perform statistical analysis, market research and marketing services solely for the Funds;

•

Permit access to transfer, whether in the United States or countries outside of the United States to such Funds' employees, agents and affiliates and service providers as required to enable the Funds to conduct ordinary business, or to comply with obligations to government regulators;

•

The Funds' representatives such as legal counsel, accountants and auditors to enable the Funds to conduct ordinary business, or to comply with obligations to government regulators;

•

Fiduciaries or representatives acting on your behalf, such as an IRA custodian or trustee of a grantor trust.

NOT PART OF THE SEMI-ANNUAL REPORT

Legg Mason Funds Privacy and Security Notice (cont'd)

Except as otherwise permitted by applicable law, companies acting on the Funds' behalf, including those outside the United States, are contractually obligated to keep nonpublic personal information the Funds provide to them confidential and to use the information the Funds share only to provide the services the Funds ask them to perform. The Funds may disclose nonpublic personal information about you when necessary to enforce their rights or protect against fraud, or as permitted or required by applicable law, such as in connection with a law enforcement or regulatory request, subpoena, or similar legal process. In the event of a corporate action or in the event a Fund service provider changes, the Funds may be required to disclose your nonpublic personal information to third parties. While it is the Funds' practice to obtain protections for disclosed information in these types of transactions, the Funds cannot guarantee their privacy policy will remain unchanged.

Keeping You Informed of the Funds' Privacy and Security Practices

The Funds will notify you annually of their privacy policy as required by federal law. While the Funds reserve the right to modify this policy at any time they will notify you promptly if this privacy policy changes.

The Funds' Security Practices

The Funds maintain appropriate physical, electronic and procedural safeguards designed to guard your nonpublic personal information. The Funds' internal data security policies restrict access to your nonpublic personal information to authorized employees, who may use your nonpublic personal information for Fund business purposes only.

Although the Funds strive to protect your nonpublic personal information, they cannot ensure or warrant the security of any information you provide or transmit to them, and you do so at your own risk. In the event of a breach of the confidentiality or security of your nonpublic personal information, the Funds will attempt to notify you as necessary, so you can take appropriate protective steps. If you have consented to the Funds using electronic communications or electronic delivery of statements, they may notify you under such circumstances using the most current email address you have on record with them.

In order for the Funds to provide effective service to you, keeping your account information accurate is very important. If you believe that your account information is incomplete, not accurate or not current, if you have questions about the Funds' privacy practices, or our use of your nonpublic personal information, write the Funds using the contact information on your account statements, email the Funds by clicking on the Contact Us section of the Funds' website at www.franklintempleton.com, or contact the Fund at 1-877-721-1926.

Revised April 2018

Legg Mason California Consumer Privacy Act Policy

Although much of the personal information we collect is "nonpublic personal information" subject to federal law, residents of California may, in certain circumstances, have additional rights under the California Consumer Privacy Act ("CCPA"). For example, if you are a broker,

NOT PART OF THE SEMI-ANNUAL REPORT

Legg Mason Funds Privacy and Security Notice (cont'd)

dealer, agent, fiduciary, or representative acting by or on behalf of, or for, the account of any other person(s) or household, or a financial advisor, or if you have otherwise provided personal information to us separate from the relationship we have with personal investors, the provisions of this Privacy Policy apply to your personal information (as defined by the CCPA).

•

In addition to the provisions of the Legg Mason Funds Security and Privacy Notice, you may have the right to know the categories and specific pieces of personal information we have collected about you.

•

You also have the right to request the deletion of the personal information collected or maintained by the Funds.

If you wish to exercise any of the rights you have in respect of your personal information, you should advise the Funds by contacting them as set forth below. The rights noted above are subject to our other legal and regulatory obligations and any exemptions under the CCPA. You may designate an authorized agent to make a rights request on your behalf, subject to the identification process described below. We do not discriminate based on requests for information related to our use of your personal information, and you have the right not to receive discriminatory treatment related to the exercise of your privacy rights.

We may request information from you in order to verify your identity or authority in making such a request. If you have appointed an authorized agent to make a request on your behalf, or you are an authorized agent making such a request (such as a power of attorney or other written permission), this process may include providing a password/passcode, a copy of government issued identification, affidavit or other applicable documentation, i.e. written permission. We may require you to verify your identity directly even when using an authorized agent, unless a power of attorney has been provided. We reserve the right to deny a request submitted by an agent if suitable and appropriate proof is not provided.

For the 12-month period prior to the date of this Privacy Policy, the Legg Mason Funds have not sold any of your personal information; nor do we have any plans to do so in the future.

Contact Information

Address: Data Privacy Officer, 100 International Dr., Baltimore, MD 21202

Email: [email protected]

Phone: 1-800-396-4748

Revised October 2020

NOT PART OF THE SEMI-ANNUAL REPORT

www.franklintempleton.com

© 2021 Franklin Distributors, LLC,

WASX307368 10/21 SR21-4258

ITEM 2.

CODE OF ETHICS.

Not applicable.

ITEM 3.

AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable.

ITEM 4.

PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable.

ITEM 5.

AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6.

SCHEDULE OF INVESTMENTS.

Included herein under Item 1.

ITEM 7.

DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8.

PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 9.

PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

Not applicable.

ITEM 11.

CONTROLS AND PROCEDURES.

(a)

The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the "1940 Act")) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934.

(b)

There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are likely to materially affect the registrant's internal control over financial reporting.

ITEM 12.

DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 13.

EXHIBITS.

(a) (1) Not applicable.

Exhibit 99.CODE ETH

(a) (2) Certifications pursuant to section 302 of the Sarbanes-Oxley Act of 2002 attached hereto.

Exhibit 99.CERT

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto.

Exhibit 99.906CERT

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this Report to be signed on its behalf by the undersigned, there unto duly authorized.

Legg Mason Partners Institutional Trust

By:

/s/ Jane Trust

Jane Trust
Chief Executive Officer
Date: October 26, 2021

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:

/s/ Jane Trust

Jane Trust
Chief Executive Officer
Date: October 26, 2021
By:

/s/ Christopher Berarducci

Christopher Berarducci
Principal Financial Officer
Date: October 26, 2021