Western Asset Managed Municipals Fund Inc.

01/25/2022 | Press release | Distributed by Public on 01/25/2022 13:51

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

Western Asset Managed Municipals Funds Inc. (MMU)

Table of Contents

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 811-06629

Western Asset Managed Municipals Fund Inc.

(Exact name of registrant as specified in charter)

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

(Address of principal executive offices) (Zip code)

George P Hoyt

Franklin Templeton

100 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

Registrant's telephone number, including area code: (888) 777-0102

Date of fiscal year end: May 31

Date of reporting period: November 30, 2021

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ITEM 1.

REPORT TO STOCKHOLDERS.

The Semi-Annual Report to Stockholders is filed herewith.

Table of Contents

Semi-Annual Report November 30, 2021

WESTERN ASSET

MANAGED MUNICIPALS FUND INC. (MMU)

INVESTMENT PRODUCTS: NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

Table of Contents

What's inside
Letter from the chairman III
Performance review IV
Fund at a glance 1
Schedule of investments 2
Statement of assets and liabilities 26
Statement of operations 27
Statements of changes in net assets 28
Statement of cash flows 29
Financial highlights 30
Notes to financial statements 32
Additional shareholder information 44
Dividend reinvestment plan 45

Fund objective

The Fund's investment objective is to seek as high a level of current income exempt from federal income tax* as is consistent with preservation of capital.

When pursuing its investment objective, the Fund seeks to maximize current income exempt from federal income tax as is consistent with preservation of principal.

The Fund seeks to achieve its objective by investing primarily in long-term investment grade municipal debt securities issued by state and local governments, political subdivisions, agencies and public authorities (municipal obligations). Under normal market conditions, the Fund will invest at least 80% of its total assets in municipal obligations rated investment grade at the time of investment.

*

Certain investors may be subject to the federal alternative minimum tax ("AMT"), and state and local taxes will apply. Capital gains, if any, are fully taxable. Please consult your personal tax or legal adviser.

II Western Asset Managed Municipals Fund Inc.

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Letter from the chairman

Dear Shareholder,

We are pleased to provide the semi-annual report of Western Asset Managed Municipals Fund Inc. for the six-month reporting period ended November 30, 2021. Please read on for Fund performance information during the Fund's reporting period.

As always, we remain committed to providing you with excellent service and a full spectrum of investment choices. We also remain committed to supplementing the support you receive from your financial advisor. One way we accomplish this is through our website, www.franklintempleton.com. Here you can gain immediate access to market and investment information, including:

•

Fund prices and performance,

•

Market insights and commentaries from our portfolio managers, and

•

A host of educational resources.

We look forward to helping you meet your financial goals.

Sincerely,

Jane Trust, CFA

Chairman, President and Chief Executive Officer

December 31, 2021

Western Asset Managed Municipals Fund Inc. III

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Performance review

For the six months ended November 30, 2021, Western Asset Managed Municipals Fund Inc. returned 0.70% based on its net asset value ("NAV")i and -0.62% based on its New York Stock Exchange ("NYSE") market price per share. The Fund's unmanaged benchmark, the Bloomberg Municipal Bond Indexii, returned 0.56% for the same period. The Lipper General & Insured Municipal Debt (Leveraged) Closed-End Funds Category Averageiii returned 1.26% over the same time frame. Please note that Lipper performance returns are based on each fund's NAV.

Certain investors may be subject to the federal alternative minimum tax, and state and local taxes will apply. Capital gains, if any, are fully taxable. Please consult your personal tax or legal adviser.

During this six-month period, the Fund made distributions to shareholders totaling $0.25 per share. As of November 30, 2021, the Fund estimates that 97% of the distributions were sourced from net investment income and 3% constituted a return of capital.* The performance table shows the Fund's six-month total return based on its NAV and market price as of November 30, 2021. Past performance is no guarantee of future results.

Performance Snapshot asof November 30, 2021
(unaudited)
Price Per Share 6-Month
Total Return†
$14.04 (NAV) 0.70 %‡
$13.13 (Market Price) -0.62 %‡‡

All figures represent past performance and are not a guarantee of future results. Performance figures for periods shorter than one year represent cumulative figures and are not annualized.

† Total returns are based on changes in NAV or market price, respectively. Returns reflect the deduction of all Fund expenses, including management fees, operating expenses, and other Fund expenses. Returns do not reflect the deduction of brokerage commissions or taxes that investors may pay on distributions or the sale of shares.

‡ Total return assumes the reinvestment of all distributions, including returns of capital, if any, at NAV.

‡‡ Total return assumes the reinvestment of all distributions, including returns of capital, if any, in additional shares in accordance with the Fund's Dividend Reinvestment Plan.

*

These estimates are not for tax purposes. The Fund will issue a Form 1099 with final composition of the distributions for tax purposes after year-end. A return of capital is not taxable and results in a reduction in the tax basis of a shareholder's investment. For more information about a distribution's composition, please refer to the Fund's distribution press release or, if applicable, the Section 19 notice located in the press release section of our website, www.franklintempleton.com.

IV Western Asset Managed Municipals Fund Inc.

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Performance review (cont'd)

Looking for additional information?

The Fund is traded under the symbol "MMU" and its closing market price is available in most newspapers under the NYSE listings. The daily NAV is available online under the symbol "XMMUX" on most financial websites. Barron's and The Wall Street Journal's Monday edition both carry closed-end fund tables that provide additional information. In addition, the Fund issues a quarterly press release that can be found on most major financial websites as well as www.franklintempleton.com.

In a continuing effort to provide information concerning the Fund, shareholders may call 1-888-777-0102 (toll free), Monday through Friday from 8:00 a.m. to 5:30 p.m. Eastern Time, for the Fund's current NAV, market price and other information.

Thank you for your investment in Western Asset Managed Municipals Fund Inc. As always, we appreciate that you have chosen us to manage your assets and we remain focused on achieving the Fund's investment goals.

Sincerely,

Jane Trust, CFA

Chairman, President and Chief Executive Officer

December 31, 2021

RISKS: The Fund is a non-diversified,closed-end management investment company designed primarily as a long-term investment and not as a trading vehicle. The Fund is not intended to be a complete investment program and, due to the uncertainty inherent in all investments, there can be no assurance that the Fund will achieve its investment objective. The Fund's common stock is traded on the New York Stock Exchange. Similar to stocks, the Fund's share price will fluctuate with market conditions and, at the time of sale, may be worth more or less than the original investment. Shares of closed-end funds often trade at a discount to their net asset value. Because the Fund is non-diversified, it may be more susceptible to economic, political or regulatory events than a diversified fund. The Fund's investments are subject to a number of risks, including interest rate risk, credit risk, leveraging risk and management risk. As interest rates rise, the price of fixed-income investments declines. Lower rated, higher- yielding bonds, known as "high yield" or "junk" bonds, are subject to greater liquidity and credit risk than higher-rated investment grade securities. Municipal securities purchased by the Fund may be adversely affected by changes in the financial condition of municipal issuers and insurers, regulatory and political developments, uncertainties and public perceptions, and other factors. The Fund may make significant investments in derivative instruments. Derivative instruments can be illiquid, may disproportionately increase losses and could have a potentially large impact on Fund performance. To the extent the Fund enters into tender option bond ("TOB") transactions, such

Western Asset Managed Municipals Fund Inc. V

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TOB transactions expose the Fund to leverage and credit risk, and generally involve greater risk than investments in fixed rate municipal bonds, including the risk of loss of principal. The Fund may invest in securities of other investment companies. To the extent it does, Fund stockholders will indirectly pay a portion of the operating costs of such companies, in addition to the expenses that the Fund bears directly in connection with its own operations. Investing in securities issued by other investment companies, including exchange-traded funds ("ETFs") that invest primarily in municipal securities, involves risks similar to those of investing directly in the securities in which those investment companies invest. To the extent the Fund invests in securities of other investment companies, Fund stockholders will indirectly pay a portion of the operating costs of such companies, in addition to the expenses that the Fund bears directly in connection with its own operation. Leverage may result in greater volatility of NAV and market price of common shares and increases a shareholder's risk of loss. The Fund may also invest in money market funds, including funds affiliated with the Fund's manager and subadviser.

All investments are subject to risk including the possible loss of principal. Past performance is no guarantee of future results. All index performance reflects no deduction for fees, expenses or taxes. Please note that an investor cannot invest directly in an index.

i

Net asset value ("NAV") is calculated by subtracting total liabilities, including liabilities associated with financial leverage (if any), from the closing value of all securities held by the Fund (plus all other assets) and dividing the result (total net assets) by the total number of the common shares outstanding. The NAV fluctuates with changes in the market prices of securities in which the Fund has invested. However, the price at which an investor may buy or sell shares of the Fund is the Fund's market price as determined by supply of and demand for the Fund's shares.

ii

The Bloomberg Municipal Bond Index is a market value weighted index of investment grade municipal bonds with maturities of one year or more.

iii

Lipper, Inc., a wholly-owned subsidiary of Refinitiv, provides independent insight on global collective investments. Returns are based on the six-month period ended November 30, 2021, including the reinvestment of all distributions, including returns of capital, if any, calculated among the 59 funds in the Fund's Lipper category.

VI Western Asset Managed Municipals Fund Inc.

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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 November 30, 2021 and May 31, 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 Managed Municipals Fund Inc. 2021 Semi-Annual Report 1

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Schedule of investments (unaudited)

November 30, 2021

Western Asset Managed Municipals Fund Inc.

(Percentages shown based on Fund net assets)

Security Rate

Maturity

Date

Face

Amount

Value
Municipal Bonds - 133.6%

Alabama - 6.4%

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

5.750 % 10/1/49 $ 700,000 $ 833,422 (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 11,580,000 11,969,492

Senior Lien, Warrants, Series A, Refunding, AGM

5.500 % 10/1/53 1,400,000 1,549,838

Subordinated Lien, Warrants, Series D, Refunding

6.000 % 10/1/42 9,230,000 10,549,335

Subordinated Lien, Warrants, Series D, Refunding

6.500 % 10/1/53 6,900,000 7,944,399

Southeast Alabama Gas Supply District, Gas Supply Revenue, Project #2, Series A

4.000 % 6/1/24 5,690,000 6,132,246 (b)(c)

Total Alabama

38,978,732

Alaska - 0.7%

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

5.000 % 12/1/38 750,000 940,503

Anchorage, AK, Port Revenue, Series A

5.000 % 12/1/50 1,000,000 1,196,754 (a)

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

4.000 % 6/1/41 1,690,000 1,993,207

Total Alaska

4,130,464

Arizona - 5.1%

Arizona State IDA, Education Revenue, Basis School Project, Credit Enhanced, Series F, Refunding, SD Credit Program

5.000 % 7/1/52 725,000 844,588

Chandler, AZ, IDA Revenue, Intel Corp. Project

5.000 % 6/3/24 4,120,000 4,554,763 (a)(b)(c)

Navajo Nation, AZ, Revenue, Series A, Refunding

5.500 % 12/1/30 950,000 1,063,981 (d)

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

5.000 % 8/1/42 750,000 922,206

Salt Verde, AZ, Financial Corp., Natural Gas Revenue:

Series 2007

5.250 % 12/1/28 2,000,000 2,511,872

Series 2007

5.000 % 12/1/32 10,000,000 13,222,396

Series 2007

5.000 % 12/1/37 5,500,000 7,719,345

Total Arizona

30,839,151

See Notes to Financial Statements.

2 Western Asset Managed Municipals Fund Inc. 2021 Semi-Annual Report

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Western Asset Managed Municipals Fund Inc.

(Percentages shown based on Fund net assets)

Security Rate

Maturity

Date

Face

Amount

Value

California - 17.0%

Alameda, CA, Corridor Transportation Authority Revenue, Second Subordinated Lien, Series B, Refunding

5.000 % 10/1/34 $ 1,750,000 $ 2,061,161

Anaheim, CA, Public Financing Authority Lease Revenue, Series A, Refunding

5.000 % 5/1/46 2,000,000 2,182,949

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

1.150 % 4/1/24 5,500,000 5,592,443 (b)(c)

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

3.000 % 8/1/56 875,000 801,454

California State Health Facilities Financing Authority Revenue, Lucile Salter Packard Children's Hospital at Stanford

5.000 % 11/15/56 500,000 605,545

California State MFA Revenue:

Senior Lien, LINXS APM Project, Series A

5.000 % 12/31/43 1,500,000 1,790,680 (a)

Senior Lien, LINXS APM Project, Series A

5.000 % 12/31/47 1,900,000 2,263,652 (a)

California State PCFA Water Furnishing Revenue, Poseidon Resources Desalination Project

5.000 % 11/21/45 12,500,000 12,964,192 (a)(d)

California State, GO:

Various Purpose, Refunding

4.000 % 11/1/36 1,000,000 1,172,335

Various Purpose, Refunding

5.000 % 9/1/41 3,250,000 4,323,764

California Statewide CDA Revenue, Provident Group-Pomona Properties LLC, Series A

5.750 % 1/15/45 1,770,000 1,837,253 (d)

Chino Valley, CA, USD, GO, Series B

5.000 % 8/1/55 1,250,000 1,592,187

Golden State, CA, Tobacco Securitization Corp. Revenue:

Tobacco Settlement Funded, Series A-1, Refunding

5.250 % 6/1/47 2,855,000 2,921,222

Tobacco Settlement Funded, Series A-2, Refunding

5.000 % 6/1/47 550,000 561,930

Inland Valley, CA, Development Agency, Successor Agency Tax Allocation Revenue, Series A, Refunding

5.000 % 9/1/44 2,405,000 2,613,978

Los Angeles County, CA, Public Works Financing Authority Revenue, Multiple Capital Project II

5.000 % 8/1/37 1,000,000 1,032,263

See Notes to Financial Statements.

Western Asset Managed Municipals Fund Inc. 2021 Semi-Annual Report 3

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Schedule of investments (unaudited) (cont'd)

November 30, 2021

Western Asset Managed Municipals Fund Inc.

(Percentages shown based on Fund net assets)

Security Rate

Maturity

Date

Face

Amount

Value

California - continued

Los Angeles, CA, Department of Airports Revenue:

Los Angeles International Airport, Subordinated, Series D

5.000 % 5/15/39 $ 500,000 $ 620,952 (a)

Los Angeles International Airport, Subordinated, Series D

5.000 % 5/15/49 2,500,000 3,061,448 (a)

Los Angeles International Airport, Subordinated, Series F

5.000 % 5/15/27 5,565,000 6,761,311 (a)

Los Angeles International Airport, Subordinated, Series F

4.000 % 5/15/49 2,000,000 2,288,053 (a)

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

5.000 % 7/1/48 2,500,000 3,050,048

Los Angeles, CA, Department of Water & Power, Power System Revenue:

Series A

5.000 % 7/1/47 4,000,000 4,782,328

Series C

5.000 % 7/1/37 1,000,000 1,226,822

Series C

5.000 % 7/1/42 2,000,000 2,436,565

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

5.000 % 6/1/48 1,500,000 1,841,258

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

Series A

7.000 % 11/1/34 3,430,000 5,245,787

Series B

6.500 % 11/1/39 8,000,000 12,825,023

Regents of the University of California Medical Center Pooled Revenue, Series L, Refunding

5.000 % 5/15/32 1,750,000 2,070,136

River Islands, CA, Public Financing Authority, Special Tax Revenue, Community Facilities District No. 2003-1, Refunding

5.500 % 9/1/45 2,000,000 2,092,098

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

5.000 % 6/1/37 1,900,000 2,358,180

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

5.000 % 10/1/36 1,000,000 1,230,618

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

5.000 % 4/1/48 2,500,000 2,923,710

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

5.000 % 1/1/47 1,500,000 1,827,592 (a)

See Notes to Financial Statements.

4 Western Asset Managed Municipals Fund Inc. 2021 Semi-Annual Report

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Western Asset Managed Municipals Fund Inc.

(Percentages shown based on Fund net assets)

Security Rate

Maturity

Date

Face

Amount

Value

California - continued

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

5.000 % 7/15/43 $ 1,000,000 $ 1,244,232

Tobacco Securitization Authority of Southern California Revenue:

Asset Backed Refunding, San Diego County Tobacco Asset Securitization Corporation, Class 1, Series A

5.000 % 6/1/39 500,000 628,527

Asset Backed Refunding, San Diego County Tobacco Asset Securitization Corporation, Class 1, Series A

5.000 % 6/1/48 500,000 617,419

Total California

103,449,115

Colorado - 6.0%

Base Village Metropolitan District #2, CO, GO, Series A, Refunding

5.750 % 12/1/46 500,000 516,044

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

5.000 % 3/1/47 1,600,000 1,920,763

Colorado State Health Facilities Authority Revenue, Commonspirit Health Project, Series A-1

4.000 % 8/1/44 1,900,000 2,183,973

Colorado State High Performance Transportation Enterprise Revenue, C-470 Express Lanes

5.000 % 12/31/51 600,000 677,252

Denver, CO, Airport System Revenue, Series C

6.125 % 11/15/25 10,945,000 12,300,477 (a)(e)

Public Authority for Colorado Energy, Natural Gas Purchase Revenue

6.500 % 11/15/38 12,200,000 18,960,803

Total Colorado

36,559,312

Connecticut - 1.6%

Connecticut State Special Tax Revenue:

Transportation Infrastructure, Series A

5.000 % 1/1/37 1,500,000 1,839,923

Transportation Infrastructure, Series A

5.000 % 5/1/38 2,750,000 3,528,922

Connecticut State, GO:

Series A

5.000 % 4/15/35 1,650,000 2,080,145

Series E

5.000 % 10/15/34 930,000 1,115,617

Harbor Point, CT, Infrastructure Improvement District, Special Obligation Revenue, Harbor Point Project Ltd., Refunding

5.000 % 4/1/39 900,000 1,031,567 (d)

Total Connecticut

9,596,174

See Notes to Financial Statements.

Western Asset Managed Municipals Fund Inc. 2021 Semi-Annual Report 5

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Schedule of investments (unaudited) (cont'd)

November 30, 2021

Western Asset Managed Municipals Fund Inc.

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

District of Columbia - 0.5%

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

5.000 % 7/1/48 $ 2,800,000 $ 3,262,428

Florida - 4.0%

Broward County, FL, Airport System Revenue, Series 2017

5.000 % 10/1/47 1,250,000 1,502,519 (a)

Florida State Development Finance Corp., Educational Facilities Revenue, Renaissance Charter School Inc. Projects, Series A

6.125 % 6/15/46 555,000 628,107 (d)

Florida State Mid-Bay Bridge Authority, Series A, Refunding

5.000 % 10/1/30 2,410,000 2,740,144

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

5.000 % 10/1/47 1,500,000 1,803,022 (a)

Miami-Dade County, FL, Aviation Revenue, Series A, Refunding

5.000 % 10/1/49 3,000,000 3,650,031 (a)

Miami-Dade County, FL, Expressway Authority, Series A

5.000 % 7/1/40 9,000,000 9,030,407

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

5.000 % 8/1/47 750,000 818,308

Palm Beach County, FL, Health Facilities Authority Revenue:

Acts Retirement-Life Communities

5.000 % 11/15/45 750,000 861,816

Toby & Leon Cooperman Sinai Residences of Boca Raton Expansion, Refunding

4.000 % 6/1/41 500,000 521,757 (f)

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

3.000 % 6/1/27 1,500,000 1,551,574

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

5.000 % 7/1/50 1,000,000 1,241,682

Total Florida

24,349,367

Georgia - 1.5%

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

5.000 % 6/15/44 1,000,000 1,247,285

Georgia State Municipal Electric Authority Power Revenue:

Plant Vogtle Units 3 & 4 Project, Series A

5.000 % 1/1/56 1,000,000 1,211,756

Project One, Series A

5.000 % 1/1/50 1,000,000 1,252,684

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

Series A

5.000 % 5/15/43 800,000 964,386

See Notes to Financial Statements.

6 Western Asset Managed Municipals Fund Inc. 2021 Semi-Annual Report

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Western Asset Managed Municipals Fund Inc.

(Percentages shown based on Fund net assets)

Security Rate

Maturity

Date

Face

Amount

Value

Georgia - continued

Series B

5.000 % 3/15/22 $ 4,000,000 $ 4,054,224

Series C

4.000 % 9/1/26 560,000 637,157 (b)(c)

Total Georgia

9,367,492

Guam - 0.2%

Government of Guam, Business Privilege Tax Revenue, Series F, Refunding

4.000 % 1/1/42 1,000,000 1,131,469

Idaho - 0.2%

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

5.000 % 12/1/47 1,100,000 1,338,227

Illinois - 17.1%

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

5.000 % 4/1/42 1,500,000 1,787,645

Chicago, IL, Board of Education, GO:

Dedicated, Series G, Refunding

5.000 % 12/1/34 100,000 119,188

Dedicated, Series G, Refunding

5.000 % 12/1/44 420,000 494,128

Dedicated, Series H

5.000 % 12/1/36 500,000 594,134

Dedicated, Series H

5.000 % 12/1/46 150,000 175,999

Series D

5.000 % 12/1/46 6,435,000 7,696,234

Chicago, IL, GO:

Series 2002B

5.500 % 1/1/37 220,000 252,751

Series A

5.000 % 1/1/44 1,000,000 1,214,534

Series A, Refunding

5.000 % 1/1/26 2,250,000 2,612,731

Series A, Refunding

6.000 % 1/1/38 1,500,000 1,860,496

Series B

5.500 % 1/1/32 3,300,000 3,801,151

Series C, Refunding

5.000 % 1/1/25 3,000,000 3,387,722

Series D, Refunding

5.500 % 1/1/34 10,000 11,509

Chicago, IL, O'Hare International Airport Revenue:

General Senior Lien, Series B, Refunding

5.000 % 1/1/41 1,000,000 1,165,312

Series A, Refunding

5.000 % 1/1/31 1,000,000 1,120,755 (a)

Series A, Refunding

5.000 % 1/1/35 7,000,000 7,840,753 (a)

TrIPS Obligated Group

5.000 % 7/1/48 700,000 827,311 (a)

Chicago, IL, Transit Authority, Sales Tax Receipts Revenue:

Second Lien

5.000 % 12/1/51 1,000,000 1,175,652

Second Lien, Series A, Refunding

4.000 % 12/1/55 1,300,000 1,474,517

Second Lien, Series A, Refunding

5.000 % 12/1/55 500,000 611,053

See Notes to Financial Statements.

Western Asset Managed Municipals Fund Inc. 2021 Semi-Annual Report 7

Table of Contents

Schedule of investments (unaudited) (cont'd)

November 30, 2021

Western Asset Managed Municipals Fund Inc.

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

Illinois - continued

Chicago, IL, Wastewater Transmission Revenue:

Second Lien

5.000 % 1/1/44 $ 1,000,000 $ 1,085,586

Second Lien, Series A

5.000 % 1/1/47 1,000,000 1,173,178

Second Lien, Series B, Refunding

5.000 % 1/1/38 750,000 889,368

Chicago, IL, Waterworks Revenue:

Second Lien, Series 2017, Refunding

5.000 % 11/1/29 1,800,000 2,220,713

Second Lien, Series 2017-2, Refunding, AGM

5.000 % 11/1/33 1,290,000 1,580,270

Second Lien, Series 2017-2, Refunding, AGM

5.000 % 11/1/36 1,110,000 1,354,901

Second Lien, Series 2017-2, Refunding, AGM

5.000 % 11/1/37 2,500,000 3,046,723

Second Lien, Series 2017-2, Refunding, AGM

5.000 % 11/1/38 2,000,000 2,435,553

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

4.000 % 11/15/40 1,750,000 2,073,869

Illinois State Finance Authority Revenue, Northshore University Health System, Refunding

4.000 % 8/15/40 1,900,000 2,266,174

Illinois State Finance Authority, Student Housing & Academic Facilities Revenue, CHF Chicago LLC, University of Illinois Chicago Project

5.000 % 2/15/50 500,000 569,742

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

5.000 % 6/15/28 750,000 930,202

Illinois State Toll Highway Authority Revenue, Series A

4.000 % 1/1/39 4,000,000 4,697,098

Illinois State, GO:

Series 2016

5.000 % 1/1/33 1,500,000 1,736,088

Series 2016

5.000 % 11/1/33 2,350,000 2,760,740

Series 2016, Refunding

5.000 % 2/1/29 1,660,000 1,970,906

Series A

5.000 % 3/1/36 1,500,000 1,903,860

Series A

5.000 % 5/1/36 690,000 825,825

Series A

5.000 % 5/1/39 2,000,000 2,381,976

Series A

5.000 % 3/1/46 1,750,000 2,173,350

Series A, Refunding

5.000 % 10/1/29 3,795,000 4,662,417

Series A, Refunding

5.000 % 10/1/30 500,000 611,208

Series B, Refunding

5.000 % 10/1/29 750,000 921,426

See Notes to Financial Statements.

8 Western Asset Managed Municipals Fund Inc. 2021 Semi-Annual Report

Table of Contents

Western Asset Managed Municipals Fund Inc.

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

Illinois - continued

Series D

5.000 % 11/1/27 $ 2,000,000 $ 2,420,273

Metropolitan Pier & Exposition Authority, IL, Revenue:

McCormick Place Expansion Project, Series A, Refunding

4.000 % 12/15/42 2,750,000 3,147,880 (f)

McCormick Place Expansion Project, Series A, Refunding

4.000 % 6/15/50 1,500,000 1,683,773

McCormick Place Expansion Project, Series A, Refunding

5.000 % 6/15/50 7,150,000 8,606,499

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

6.000 % 7/1/29 4,450,000 5,659,968

Total Illinois

104,013,141

Indiana - 2.0%

Indiana State Finance Authority Revenue:

BHI Senior Living Inc., Series A, Refunding

4.000 % 11/15/41 2,250,000 2,610,938

Marion General Hospital, Series A

4.000 % 7/1/45 900,000 1,039,052

Private Activity-Ohio River Bridges East End Crossing Project

5.000 % 7/1/44 5,000,000 5,355,123 (a)(g)

Indianapolis, IN, Local Public Improvement Bond Bank, Courthouse and Jail Project, Series A

4.000 % 2/1/44 2,000,000 2,336,129

Valparaiso, IN, Exempt Facilities Revenue, Pratt Paper LLC Project

7.000 % 1/1/44 1,000,000 1,117,492 (a)

Total Indiana

12,458,734

Iowa - 0.3%

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

3.125 % 12/1/22 325,000 329,592

Iowa State Tobacco Settlement Authority Revenue:

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

4.000 % 6/1/49 500,000 579,544

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

4.000 % 6/1/49 750,000 866,505

Total Iowa

1,775,641

Kentucky - 2.2%

Kentucky State Economic Development Finance Authority Revenue, Louisville Arena, Louisville Arena Authority Inc., Refunding, AGM

5.000 % 12/1/45 1,000,000 1,225,168

See Notes to Financial Statements.

Western Asset Managed Municipals Fund Inc. 2021 Semi-Annual Report 9

Table of Contents

Schedule of investments (unaudited) (cont'd)

November 30, 2021

Western Asset Managed Municipals Fund Inc.

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

Kentucky - continued

Kentucky State PEA, Gas Supply Revenue:

Series A

4.000 % 6/1/26 $ 5,000,000 $ 5,665,970 (b)(c)

Series C

4.000 % 6/1/25 5,800,000 6,400,839 (b)(c)

Total Kentucky

13,291,977

Louisiana - 1.8%

Port New Orleans, LA, Board of Commissioners Revenue, Series B, Refunding, AGM

5.000 % 4/1/43 2,000,000 2,360,723 (a)

St. Charles Parish, LA, Gulf Opportunity Zone Revenue, Valero Energy Corp., Convertible

4.000 % 6/1/22 5,000,000 5,089,889 (b)(c)

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

Marathon Oil Corp. Project, Refunding

2.200 % 7/1/26 1,300,000 1,361,919 (b)(c)

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

2.375 % 7/1/26 1,750,000 1,846,985 (b)(c)

Total Louisiana

10,659,516

Maryland - 0.2%

Maryland EDC, Senior Student Housing Revenue, Morgan State University Project

5.000 % 7/1/50 1,150,000 1,387,530

Massachusetts - 1.9%

Massachusetts State DFA Revenue:

Broad Institute Inc., Refunding

5.000 % 4/1/36 1,000,000 1,215,099

Milford Regional Medical Center, Series F

5.750 % 7/15/43 500,000 528,924

UMass Boston Student Housing Project

5.000 % 10/1/48 750,000 835,878

Wellforce Issue, Series A, Refunding

5.000 % 7/1/44 500,000 604,241

Massachusetts State Port Authority Revenue:

Bosfuel Project, Series A, Refunding

4.000 % 7/1/44 1,100,000 1,256,907 (a)

Series A, Refunding

5.000 % 7/1/36 1,700,000 2,114,869 (a)

Series E

5.000 % 7/1/46 1,500,000 1,904,542 (a)

Massachusetts State School Building Authority, Sales Tax Revenue, Senior, Series A

5.000 % 5/15/43 3,000,000 3,208,010 (g)

Total Massachusetts

11,668,470

Michigan - 3.8%

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

5.000 % 7/1/48 1,000,000 1,099,402

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

Senior Lien, Series A

5.000 % 7/1/46 5,500,000 6,404,704

Senior Lien, Series C, Refunding

5.000 % 7/1/35 500,000 593,767

See Notes to Financial Statements.

10 Western Asset Managed Municipals Fund Inc. 2021 Semi-Annual Report

Table of Contents

Western Asset Managed Municipals Fund Inc.

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

Michigan - continued

Kent County, MI, Gerald R. Ford International Airport, GO, Authority Revenue, County Guaranty

5.000 % 1/1/51 $ 1,000,000 $ 1,289,207 (a)

Michigan State Finance Authority Revenue:

Facilities Program, Series 1-A, Refunding

5.250 % 10/15/47 650,000 705,947

Local Government Loan Program, Detroit, MI, Water & Sewer Department, Second Lien Local Project, Series C, Refunding

5.000 % 7/1/33 625,000 716,955

Local Government Loan Program, Detroit, MI, Water & Sewer Department, Series C-1, Refunding

5.000 % 7/1/44 1,320,000 1,357,114 (g)

Local Government Loan Program, Detroit, MI, Water & Sewer Department, Series C-6, Refunding

5.000 % 7/1/33 1,160,000 1,290,079

Local Government Loan Program, Detroit, MI, Water & Sewer Department, Series D-2, Refunding

5.000 % 7/1/34 250,000 286,400

Tobacco Settlement Asset Backed Senior Bonds, Series A, Refunding

4.000 % 6/1/49 500,000 572,004

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

5.000 % 6/1/49 400,000 482,810

Michigan State Hospital Finance Authority Revenue, Ascension Health Senior Credit Group, Series 2010F-4, Refunding

5.000 % 11/15/47 3,000,000 3,784,056

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

5.000 % 12/31/43 1,400,000 1,681,456 (a)

Royal Oak, MI, Hospital Finance Authority Revenue, Beaumont Health Credit Group, Series D, Refunding

5.000 % 9/1/39 2,500,000 2,740,112

Total Michigan

23,004,013

Minnesota - 0.3%

Western Minnesota Municipal Power Agency Revenue, Series A

5.000 % 1/1/46 1,530,000 1,679,660 (g)

Missouri - 0.7%

Missouri State HEFA Revenue, Senior Living Facilities, Lutheran Senior Services, Refunding

5.000 % 2/1/44 2,710,000 2,889,591

St. Louis County, MO, IDA, Senior Living Facilities Revenue, Friendship Village, St. Louis Obligated Group, Series A

5.000 % 9/1/38 1,250,000 1,405,370

Total Missouri

4,294,961

See Notes to Financial Statements.

Western Asset Managed Municipals Fund Inc. 2021 Semi-Annual Report 11

Table of Contents

Schedule of investments (unaudited) (cont'd)

November 30, 2021

Western Asset Managed Municipals Fund Inc.

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

New Jersey - 10.7%

New Jersey Institute of Technology, GO, Series A

5.000 % 7/1/45 $ 750,000 $ 855,569

New Jersey State EDA Revenue:

Cigarette Tax, Refunding

5.000 % 6/15/26 2,500,000 2,559,806

Private Activity-The Goethals Bridge Replacement Project, AGM

5.125 % 7/1/42 2,500,000 2,745,043 (a)

School Facilities Construction, Series BBB, Refunding

5.500 % 6/15/31 750,000 914,193

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

1.650 % 3/1/28 15,000,000 15,181,824 (c)

Transit Transportation Project, Series A

5.000 % 11/1/32 1,000,000 1,256,237

New Jersey State EDA, Lease Revenue, State House Project, Series B

5.000 % 6/15/43 4,000,000 4,835,693

New Jersey State EDA, Special Facility Revenue:

Continental Airlines Inc. Project

5.250 % 9/15/29 3,000,000 3,112,593 (a)

Port Newark Container Terminal LLC Project, Refunding

5.000 % 10/1/37 650,000 759,127 (a)

New Jersey State Health Care Facilities Financing Authority Revenue:

Hackensack Meridian Health, Series A, Refunding

5.000 % 7/1/38 400,000 484,044

RWJ Barnabas Health Obligation Group, Series A, Refunding

5.000 % 7/1/43 1,200,000 1,414,376

New Jersey State Transportation Trust Fund Authority Revenue:

Transportation Program, Series AA

5.250 % 6/15/43 1,500,000 1,838,043

Transportation Program, Series AA

5.000 % 6/15/45 7,500,000 9,302,431

Transportation Program, Series BB

4.000 % 6/15/36 2,250,000 2,560,763

Transportation System, Series A, Refunding

5.000 % 12/15/25 1,885,000 2,199,428

Transportation System, Series A, Refunding

5.000 % 12/15/28 2,615,000 3,282,215

New Jersey State Turnpike Authority Revenue, Series G, Refunding

5.000 % 1/1/35 2,675,000 3,303,567

New Jersey State, GO:

COVID-19 Emergency, Series A

5.000 % 6/1/28 3,500,000 4,349,580

COVID-19 Emergency, Series A

5.000 % 6/1/29 2,500,000 3,174,483

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

5.250 % 6/1/46 600,000 718,660

Total New Jersey

64,847,675

See Notes to Financial Statements.

12 Western Asset Managed Municipals Fund Inc. 2021 Semi-Annual Report

Table of Contents

Western Asset Managed Municipals Fund Inc.

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

New York - 19.0%

Brookhaven, NY, Local Development Corp. Revenue:

Long Island Community Hospital Project, Series A

5.000 % 10/1/31 $ 1,280,000 $ 1,644,428

Long Island Community Hospital Project, Series A

4.000 % 10/1/45 1,250,000 1,441,705

MTA, NY, Dedicated Tax Fund Revenue, Green Bonds, Subseries A-2

5.000 % 11/15/47 1,500,000 1,780,924

MTA, NY, Transportation Revenue:

Green Bonds, Series A-2

5.000 % 11/15/24 500,000 563,811

Green Bonds, Series C-1, Refunding

4.000 % 11/15/37 500,000 563,638

Green Bonds, Series D-1

5.000 % 11/15/43 500,000 617,509

Green Bonds, Series D-3

4.000 % 11/15/49 1,000,000 1,135,101

Green Bonds, Series E, Refunding

5.000 % 11/15/30 1,500,000 1,928,097

Green Bonds, Series E, Refunding

4.000 % 11/15/45 1,250,000 1,424,407

Series A-2

5.000 % 5/15/30 1,800,000 2,293,110 (b)(c)

Series C-1

5.000 % 11/15/33 350,000 408,934

New York City, NY, GO:

Subseries D-1

5.000 % 3/1/43 2,000,000 2,527,525

Subseries F-1

5.000 % 3/1/50 2,000,000 2,544,851

New York City, NY, Industrial Development Agency Revenue:

Yankee Stadium Project, Refunding

4.000 % 3/1/45 500,000 568,310

Yankee Stadium Project, Refunding, AGM

4.000 % 3/1/45 750,000 867,276

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

Second General Resolution Fiscal 2013, Unrefunded

5.000 % 6/15/47 2,650,000 2,825,084

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

4.000 % 6/15/51 4,500,000 5,345,278

Subordinated, Series BB-1

5.000 % 6/15/46 1,500,000 1,810,085

New York City, NY, TFA Future Tax Secured Revenue:

Subordinated, Series B-1

5.000 % 8/1/45 3,000,000 3,640,915

Subordinated, Series C-1

4.000 % 5/1/46 7,000,000 8,246,217

New York State Dormitory Authority Revenue:

Bidding Group 3, Series A

5.000 % 3/15/42 1,000,000 1,231,362

Series B, Refunding

5.000 % 2/15/43 5,000 6,186 (g)

Series B, Refunding

5.000 % 2/15/43 2,995,000 3,639,534

See Notes to Financial Statements.

Western Asset Managed Municipals Fund Inc. 2021 Semi-Annual Report 13

Table of Contents

Schedule of investments (unaudited) (cont'd)

November 30, 2021

Western Asset Managed Municipals Fund Inc.

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

New York - continued

New York State Dormitory Authority, Sales Tax Revenue, Bidding Group 4, Series E, Refunding

5.000 % 3/15/44 $ 2,000,000 $ 2,496,024

New York State Dormitory Authority, School Districts Revenue Financing Program, Series A, AGM

5.000 % 10/1/29 3,250,000 4,113,637

New York State Dormitory Authority, State Personal Income Tax Revenue:

Bidding Group 4, Series A, Refunding

4.000 % 3/15/46 2,500,000 2,928,103

Bidding Group 4, Series A, Refunding

5.000 % 3/15/46 3,250,000 4,035,678

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

5.000 % 11/15/44 1,750,000 1,912,435 (d)

New York State Liberty Development Corp., Revenue, Goldman Sachs Headquarters

5.500 % 10/1/37 1,485,000 2,209,627

New York State Thruway Authority General Revenue, Junior Indebtedness Obligations, Subordinated, Series B, Refunding

4.000 % 1/1/50 3,000,000 3,445,600

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

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

5.000 % 1/1/33 1,750,000 2,102,232 (a)

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

4.375 % 10/1/45 1,500,000 1,736,657 (a)

LaGuardia Airport Terminal B Redevelopment Project, Series A

5.000 % 7/1/41 9,250,000 10,265,969 (a)

LaGuardia Airport Terminal B Redevelopment Project, Series A

5.000 % 7/1/46 250,000 276,380 (a)

LaGuardia Airport Terminal B Redevelopment Project, Series A

5.250 % 1/1/50 1,000,000 1,110,979 (a)

Terminal 4 John F. Kennedy International Airport Project, Series C, Refunding

4.000 % 12/1/39 1,800,000 2,086,424

Port Authority of New York & New Jersey Revenue:

Consolidated Series 194, Refunding

5.000 % 10/15/41 6,400,000 7,396,104

Series 221

4.000 % 7/15/55 3,600,000 4,114,395 (a)

Triborough Bridge & Tunnel Authority, NY, Revenue:

General-MTA Bridges & Tunnels, Series A

5.000 % 11/15/49 2,250,000 2,869,168

General-MTA Bridges & Tunnels, Series A

5.000 % 11/15/51 1,000,000 1,277,706

General-MTA Bridges & Tunnels, Series A

4.000 % 11/15/54 1,250,000 1,463,709

See Notes to Financial Statements.

14 Western Asset Managed Municipals Fund Inc. 2021 Semi-Annual Report

Table of Contents

Western Asset Managed Municipals Fund Inc.

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

New York - continued

General-MTA Bridges & Tunnels, Series A

5.000 % 11/15/54 $ 7,350,000 $ 9,319,394

General-MTA Bridges & Tunnels, Series A

5.000 % 11/15/56 2,500,000 3,184,290

Total New York

115,398,798

North Carolina - 1.3%

Charlotte, NC, Airport Revenue, Charlotte Douglas International Airport, Series A, Refunding

5.000 % 7/1/49 1,750,000 2,179,254

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

4.000 % 6/1/49 750,000 878,611

North Carolina State Medical Care Commission, Retirement Facilities Revenue:

The Forest at Duke Project

4.000 % 9/1/41 500,000 575,583

The Forest at Duke Project

4.000 % 9/1/46 715,000 816,703

The Forest at Duke Project

4.000 % 9/1/51 1,000,000 1,138,830

North Carolina State Turnpike Authority, Monroe Expressway Toll Revenue:

Series A, Refunding

5.000 % 7/1/47 750,000 850,411

Series A, Refunding

5.000 % 7/1/51 1,500,000 1,697,202

Total North Carolina

8,136,594

Ohio - 2.6%

Buckeye, OH, Tobacco Settlement Financing Authority Revenue, Senior Bonds, Series B-2, Refunding

5.000 % 6/1/55 2,400,000 2,755,719

JobsOhio Beverage System, Senior Lien, Series A

5.000 % 1/1/38 8,000,000 8,411,182 (g)

Ohio State Air Quality Development Authority Revenue, American Electric Company Project, Series B, Refunding

2.500 % 10/1/29 1,500,000 1,648,701 (a)(b)(c)

Ohio State Water Development Authority, U.S. Steel Corp. Project, Refunding

6.600 % 5/1/29 3,000,000 3,011,400

Total Ohio

15,827,002

Oklahoma - 0.4%

Oklahoma State Municipal Power Authority Revenue, Series A, Refunding, AGM

4.000 % 1/1/47 2,000,000 2,352,124

Payne County, OK, EDA Revenue, Epworth Living at The Ranch, Series A

6.875 % 11/1/46 332,734 1,663 *(h)

Total Oklahoma

2,353,787

See Notes to Financial Statements.

Western Asset Managed Municipals Fund Inc. 2021 Semi-Annual Report 15

Table of Contents

Schedule of investments (unaudited) (cont'd)

November 30, 2021

Western Asset Managed Municipals Fund Inc.

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

Oregon - 0.6%

Oregon State Facilities Authority Revenue, Legacy Health Project, Series A, Refunding

5.000 % 6/1/46 $ 2,000,000 $ 2,328,848

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

5.000 % 7/1/24 1,000,000 1,112,138 (a)

Total Oregon

3,440,986

Pennsylvania - 5.2%

Commonwealth Financing Authority, PA, Tobacco Master Settlement Payment Revenue Bonds:

Series 2018

5.000 % 6/1/32 250,000 306,230

Series 2018

5.000 % 6/1/33 500,000 610,906

Cumberland County, PA, Municipal Authority Revenue:

Diakon Lutheran Social Ministries, Refunding

5.000 % 1/1/30 375,000 425,993 (g)

Diakon Lutheran Social Ministries, Refunding

5.000 % 1/1/30 2,000,000 2,235,753

East Hempfield Township, PA, IDA Revenue, Student Services Inc. Student Housing Project - Millersville University

5.000 % 7/1/47 550,000 636,835 (g)

Lancaster County, PA, Hospital Authority Revenue, Penn State Health, Series 2021

5.000 % 11/1/51 2,750,000 3,391,108

Pennsylvania State Higher EFA Revenue, Trustees of University of Pennsylvania, Series A

5.000 % 2/15/48 1,250,000 1,526,157

Pennsylvania State Turnpike Commission Revenue:

Series B, Refunding

5.000 % 12/1/46 1,500,000 1,916,328

Series C, Refunding

4.000 % 12/1/51 2,000,000 2,360,231

Subordinated, Series B

5.250 % 12/1/41 2,275,000 2,275,000 (g)

Subordinated, Series B

5.250 % 12/1/41 3,725,000 3,725,000 (g)

Subordinated, Series B

5.000 % 12/1/48 2,900,000 3,547,468

Subordinated, Series B

5.000 % 12/1/50 1,000,000 1,276,157

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

5.000 % 10/1/30 1,200,000 1,547,245

Philadelphia, PA, SD, GO, Series A, State Aid Withholding

5.000 % 9/1/33 1,755,000 2,025,670

Philadelphia, PA, Water & Wastewater Revenue, Series A

5.000 % 7/1/45 1,000,000 1,118,711 (g)

See Notes to Financial Statements.

16 Western Asset Managed Municipals Fund Inc. 2021 Semi-Annual Report

Table of Contents

Western Asset Managed Municipals Fund Inc.

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

Pennsylvania - continued

State Public School Building Authority, PA, Lease Revenue:

Philadelphia SD Project, Series A, Refunding, AGM, State Aid Withholding

5.000 % 6/1/31 $ 600,000 $ 718,088

Philadelphia SD Project, Series A, Refunding, AGM, State Aid Withholding

5.000 % 6/1/33 1,780,000 2,126,486

Total Pennsylvania

31,769,366

Puerto Rico - 5.0%

Puerto Rico Commonwealth Aqueduct & Sewer Authority Revenue:

Senior Lien, Series A, Refunding

5.000 % 7/1/47 2,500,000 2,975,655 (d)

Series B, Refunding

5.000 % 7/1/33 1,340,000 1,684,571 (d)

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

5.000 % 7/1/41 1,250,000 1,125,000 *(h)

Puerto Rico Electric Power Authority Revenue:

Series A

5.000 % 7/1/42 2,200,000 2,167,000 *(h)

Series A

5.050 % 7/1/42 350,000 344,750 *(h)

Series XX

5.250 % 7/1/40 3,495,000 3,451,312 *(h)

Series ZZ, Refunding

5.250 % 7/1/18 1,250,000 1,207,813 *(i)

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

CAB, Restructured, Series A-1

0.000 % 7/1/27 960,000 878,532

CAB, Restructured, Series A-1

0.000 % 7/1/46 1,040,000 347,780

CAB, Restructured, Series A-1

0.000 % 7/1/51 6,700,000 1,621,686

Restructured, Series A-1

4.550 % 7/1/40 230,000 261,266

Restructured, Series A-1

5.000 % 7/1/58 4,000,000 4,592,229

Restructured, Series A-2

4.329 % 7/1/40 5,380,000 6,039,091

Restructured, Series A-2A

4.550 % 7/1/40 3,550,000 4,032,582

Total Puerto Rico

30,729,267

South Carolina - 0.4%

South Carolina State Ports Authority Revenue, Series 2018

5.000 % 7/1/48 1,750,000 2,124,724 (a)

South Dakota - 0.1%

South Dakota State HEFA Revenue, Regional Health

5.000 % 9/1/40 500,000 600,680

Tennessee - 1.7%

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

5.000 % 9/1/40 1,200,000 1,448,831

See Notes to Financial Statements.

Western Asset Managed Municipals Fund Inc. 2021 Semi-Annual Report 17

Table of Contents

Schedule of investments (unaudited) (cont'd)

November 30, 2021

Western Asset Managed Municipals Fund Inc.

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

Tennessee - continued

Metropolitan Government of Nashville & Davidson County, TN, Water & Sewer Revenue:

Subordinated, Green Bonds, Series A

5.000 % 7/1/42 $ 500,000 $ 609,767

Subordinated, Series B, Refunding

5.000 % 7/1/46 1,000,000 1,219,822

Tennessee State Energy Acquisition Corp., Natural Gas Revenue, Series 2018

4.000 % 11/1/25 6,500,000 7,244,376 (b)(c)

Total Tennessee

10,522,796

Texas - 6.5%

Alamo, TX, Regional Mobility Authority, Vehicle Registration Fee Revenue, Senior Lien

5.000 % 6/15/46 1,300,000 1,468,770

Arlington, TX, Special Tax Revenue, Senior Lien, Series A, AGM

5.000 % 2/15/48 1,250,000 1,498,105

Central Texas Regional Mobility Authority Revenue:

Senior Lien, Series B

4.000 % 1/1/51 750,000 870,403

Senior Lien, Series E

4.000 % 1/1/50 2,500,000 2,865,308

City of Austin, TX, Airport System Revenue, Series B

5.000 % 11/15/37 2,050,000 2,576,786 (a)

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

5.000 % 2/15/49 500,000 596,189

Grand Parkway Transportation Corp., TX, System Toll Revenue, Convertible CAB, Step bond, Series A, B and C, (0.000% to 10/1/23 then 5.500%)

0.000 % 10/1/36 4,000,000 4,673,744

Harris County, TX, Health Facilities Development Corp. Revenue, School Health Care System, Series B

5.750 % 7/1/27 880,000 1,049,584 (e)

Houston, TX, Airport System Revenue:

Series B-1

5.000 % 7/15/30 5,500,000 6,109,601 (a)

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

4.000 % 7/15/41 1,500,000 1,601,306 (a)

Subordinated Lien, Series A, Refunding

4.000 % 7/1/41 2,000,000 2,366,721 (a)

Houston, TX, Combined Utility System Revenue, First Lien, Series D, Refunding

5.000 % 11/15/44 1,000,000 1,115,638

Love Field, TX, Airport Modernization Corp., General Airport Revenue:

Series 2017

5.000 % 11/1/33 120,000 142,238 (a)

Series 2017

5.000 % 11/1/36 120,000 142,755 (a)

See Notes to Financial Statements.

18 Western Asset Managed Municipals Fund Inc. 2021 Semi-Annual Report

Table of Contents

Western Asset Managed Municipals Fund Inc.

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

Texas - continued

New Hope Cultural Education Facilities Finance Corp., TX, Senior Living Revenue, Sanctuary LTC Project, Series A

5.500 % 1/1/57 $ 2,000,000 $ 2,006,988

New Hope Cultural Education Facilities Finance Corp., TX, Student Housing Revenue, Collegiate Housing College Station, AGM

5.000 % 4/1/46 750,000 819,355

Newark, TX, Higher Education Finance Corp., Education Revenue, TLC Academy, Series A

4.000 % 8/15/51 1,000,000 1,064,027

North Texas Tollway Authority Revenue:

Series A, Refunding

5.000 % 1/1/39 825,000 960,456

Series B, Refunding

5.000 % 1/1/40 2,000,000 2,098,323

Series B, Refunding

5.000 % 1/1/45 2,105,000 2,361,238

Port Beaumont, TX, Navigation District Dock and Wharf Facility Revenue, Jefferson Gulf Coast Energy Project, Series 2021A

3.000 % 1/1/50 400,000 393,268 (a)(d)

Tarrant County, TX, Cultural Education Facilities Finance Corp., Retirement Facility Revenue, Buckner Senior Living Ventana Project, Series A

6.625 % 11/15/37 610,000 693,492

Texas State Private Activity Bond Surface Transportation Corp. Revenue, Senior Lien, Blueridge Transportation Group LLC

5.000 % 12/31/45 1,600,000 1,792,579 (a)

Woodloch, TX, Health Facilities Development Corp., Senior Housing Revenue:

Inspired Living at Lewisville Project, Series A-1

6.750 % 12/1/51 500,000 272,750 *(d)(h)

Subordinated, Inspired Living at Lewisville Project, Series B

10.000 % 12/1/51 150,000 52,500 *(h)

Total Texas

39,592,124

U.S. Virgin Islands - 0.5%

Virgin Islands Public Finance Authority Revenue:

Matching Fund Loan, Senior Lien, Series A

5.000 % 10/1/29 710,000 711,847

Subordinated, Matching Fund Loan, Cruzan Project, Series A

6.000 % 10/1/39 1,390,000 1,393,534

Subordinated, Matching Fund Loan, Diageo Project, Series A

6.750 % 10/1/37 1,200,000 1,210,601

Total U.S. Virgin Islands

3,315,982

Utah - 1.5%

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

5.000 % 7/1/43 5,250,000 6,340,039 (a)

See Notes to Financial Statements.

Western Asset Managed Municipals Fund Inc. 2021 Semi-Annual Report 19

Table of Contents

Schedule of investments (unaudited) (cont'd)

November 30, 2021

Western Asset Managed Municipals Fund Inc.

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

Utah - continued

Utah State Charter School Finance Authority, Charter School Revenue, Syracuse Arts Academy Project, UT CSCE

5.000 % 4/15/47 $ 1,000,000 $ 1,125,953

Utah State Infrastructure Agency, Telecommunications Revenue:

Series 2019

4.000 % 10/15/42 1,200,000 1,366,314

Series 2021

4.000 % 10/15/38 500,000 581,938

Total Utah

9,414,244

Virginia - 2.0%

Arlington County, VA, IDA, Hospital Revenue, Virginia Hospital Center, Refunding

5.000 % 7/1/35 700,000 901,442

Virginia State Port Authority, Port Facilities Revenue:

Series B, Refunding

5.000 % 7/1/41 1,100,000 1,272,974 (a)

Series B, Refunding

5.000 % 7/1/45 1,500,000 1,723,656 (a)

Virginia State Small Business Financing Authority Revenue:

Bon Secours Mercy Health, Series A, Refunding

4.000 % 12/1/49 2,000,000 2,301,568

National Senior Campuses, Inc., Series A, Refunding

5.000 % 1/1/32 500,000 612,346

National Senior Campuses, Inc., Series A, Refunding

5.000 % 1/1/34 300,000 366,137

Senior Lien, Elizabeth River Crossing OpCo LLC Project

5.250 % 1/1/32 3,000,000 3,081,779 (a)

Senior Lien, Elizabeth River Crossing OpCo LLC Project

5.500 % 1/1/42 2,000,000 2,056,937 (a)

Total Virginia

12,316,839

Washington - 1.5%

Port of Seattle, WA, Intermediate Lien Revenue:

Series 2019

5.000 % 5/1/43 1,500,000 1,762,905 (a)

Series 2019

4.000 % 4/1/44 750,000 849,861 (a)

Series 2019

5.000 % 4/1/44 1,500,000 1,835,691 (a)

Washington State Health Care Facilities Authority Revenue:

Commonspirit Health, Series B, Refunding

5.000 % 8/1/26 1,000,000 1,178,098 (b)(c)

Seattle Cancer Care Alliance, Refunding

5.000 % 12/1/33 245,000 316,544

See Notes to Financial Statements.

20 Western Asset Managed Municipals Fund Inc. 2021 Semi-Annual Report

Table of Contents

Western Asset Managed Municipals Fund Inc.

(Percentages shown based on Fund net assets)

Security Rate

Maturity

Date

Face

Amount

Value

Washington - continued

Seattle Cancer Care Alliance, Refunding

4.000 % 12/1/45 $ 1,200,000 $ 1,398,996

Seattle Cancer Care Alliance, Refunding

5.000 % 9/1/55 1,500,000 1,879,531

Total Washington

9,221,626

West Virginia - 0.3%

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

5.000 % 10/1/29 1,250,000 1,580,556 (b)(c)

Wisconsin - 0.8%

Mount Pleasant, WI, Tax Increment Revenue, Series A

5.000 % 4/1/48 2,500,000 2,962,935

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

5.000 % 1/1/40 500,000 602,833

Public Finance Authority, WI, Student Housing Revenue, University of Hawai'i Foundation Project, Green Bonds, Series A-1

4.000 % 7/1/51 1,390,000 1,515,859

Total Wisconsin

5,081,627

Total Municipal Bonds (Cost - $732,231,939)

813,510,247
Municipal Bonds Deposited in Tender Option Bond Trust (j) - 1.7%

New York - 1.7%

New York State Urban Development Corp. Revenue, State Personal Income Tax Revenue Bonds, Bidding Group 3, Series E, Refunding (Cost - $9,922,802)

4.000 % 3/15/41 8,480,000 9,972,606

Total Investments before Short-Term Investments (Cost - $742,154,741)

823,482,853
Short-Term Investments - 5.6%
Municipal Bonds - 5.6%

Arizona - 0.1%

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

0.010 % 11/15/52 500,000 500,000 (k)(l)

California - 0.2%

Regents of the University of California Medical Center Pooled Revenue, Series O-2, Refunding

0.020 % 5/15/45 1,100,000 1,100,000 (k)(l)

Colorado - 1.0%

University of Colorado Hospital Authority Revenue, Series C, Refunding, SPA - TD Bank N.A.

0.050 % 11/15/39 6,350,000 6,350,000 (k)(l)

See Notes to Financial Statements.

Western Asset Managed Municipals Fund Inc. 2021 Semi-Annual Report 21

Table of Contents

Schedule of investments (unaudited) (cont'd)

November 30, 2021

Western Asset Managed Municipals Fund Inc.

(Percentages shown based on Fund net assets)

Security Rate

Maturity

Date

Face

Amount

Value

Florida - 0.4%

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

0.050 % 5/1/24 $ 2,200,000 $ 2,200,000 (a)(k)(l)

Indiana - 0.0%††

Indiana State Finance Authority Hospital Revenue, Parkview Health System Obligated Group, Series B, Refunding, LOC - Wells Fargo Bank N.A.

0.020 % 11/1/39 300,000 300,000 (k)(l)

Mississippi - 0.7%

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

Chevron USA Inc. Project, Series 2007E

0.020 % 12/1/30 200,000 200,000 (k)(l)

Chevron USA Inc. Project, Series 2009E

0.020 % 12/1/30 200,000 200,000 (k)(l)

Chevron USA Inc. Project, Series B

0.020 % 12/1/30 1,200,000 1,200,000 (k)(l)

Chevron USA Inc. Project, Series G

0.020 % 11/1/35 1,100,000 1,100,000 (k)(l)

Chevron USA Inc. Project, Series H

0.020 % 11/1/35 900,000 900,000 (k)(l)

Chevron USA Inc. Project, Series K

0.020 % 11/1/35 500,000 500,000 (k)(l)

Total Mississippi

4,100,000

New York - 1.8%

New York City, NY, GO:

Subseries G-6, LOC - Mizuho Bank Ltd.

0.040 % 4/1/42 600,000 600,000 (k)(l)

Subseries I-4, LOC - TD Bank N.A.

0.030 % 4/1/36 2,140,000 2,140,000 (k)(l)

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.

0.020 % 6/15/33 600,000 600,000 (k)(l)

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

0.030 % 6/15/48 845,000 845,000 (k)(l)

Second General Resolution Fiscal 2014, Series AA6, Refunding, SPA - Mizuho Bank Ltd.

0.040 % 6/15/48 2,200,000 2,200,000 (k)(l)

New York City, NY, TFA Revenue Future Tax Secured, Subseries D-3, SPA - Mizuho Bank Ltd.

0.030 % 2/1/44 2,300,000 2,300,000 (k)(l)

New York State HFA Revenue, 42nd & 10th Housing, Series A, LIQ - FHLMC

0.070 % 11/1/41 2,000,000 2,000,000 (a)(k)(l)

Total New York

10,685,000

See Notes to Financial Statements.

22 Western Asset Managed Municipals Fund Inc. 2021 Semi-Annual Report

Table of Contents

Western Asset Managed Municipals Fund Inc.

(Percentages shown based on Fund net assets)

Security Rate Maturity
Date 		Face
Amount 		Value

Pennsylvania - 0.9%

Pennsylvania State Turnpike Commission Revenue, Series 2020, Refunding, LOC - TD Bank N.A.

0.050 % 12/1/39 $ 5,650,000 $ 5,650,000 (k)(l)

Texas - 0.1%

Lower Neches Valley Authority, TX, Industrial Development Corp. Revenue, ExxonMobil Corp.:

Series 2012

0.030 % 5/1/46 200,000 200,000 (k)(l)

Series B, Refunding

0.040 % 11/1/29 400,000 400,000 (a)(k)(l)

Total Texas

600,000

Utah - 0.4%

City of Murray, UT, Hospital Revenue, IHC Health Services Inc., Series D

0.040 % 5/15/36 1,730,000 1,730,000 (k)(l)

Utah County, UT, Hospital Revenue, IHC Health Services Inc., Series C, SPA - TD Bank N.A.

0.020 % 5/15/58 1,000,000 1,000,000 (k)(l)

Total Utah

2,730,000

Total Municipal Bonds (Cost - $34,215,000)

34,215,000
Shares
Money Market Funds - 0.0%††

Western Asset Premier Institutional Government Reserves, Premium Shares (Cost - $65,542)

0.010 % 65,542 65,542 (m)

Total Short-Term Investments (Cost - $34,280,542)

34,280,542

Total Investments - 140.9% (Cost - $776,435,283)

857,763,395

Auction Rate Cumulative Preferred Stock, at Liquidation Value - (4.5)%

(27,625,000 )

Variable Rate Demand Preferred Stock, at Liquidation Value - (35.7)%

(217,575,000 )

TOB Floating Rate Notes - (1.1)%

(6,360,000 )

Other Assets in Excess of Other Liabilities - 0.4%

2,679,791

Total Net Assets Applicable to Common Shareholders - 100.0%

$ 608,883,186

See Notes to Financial Statements.

Western Asset Managed Municipals Fund Inc. 2021 Semi-Annual Report 23

Table of Contents

Schedule of investments (unaudited) (cont'd)

November 30, 2021

Western Asset Managed Municipals Fund Inc.

††

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)

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 Directors.

(e)

Bonds are generally escrowed to maturity by government securities and/or U.S. government agency securities.

(f)

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

(g)

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

(h)

The coupon payment on this security is currently in default as of November 30, 2021.

(i)

The maturity principal is currently in default as of November 30, 2021.

(j)

Represents securities deposited into a special purpose entity, referred to as a Tender Option Bond ("TOB") trust (Note 1).

(k)

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.

(l)

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

(m)

In this instance, as defined in the Investment Company Act of 1940, an "Affiliated Company" represents Fund ownership of at least 5% of the outstanding voting securities of an issuer, or a company which is under common ownership or control with the Fund. At November 30, 2021, the total market value of investments in Affiliated Companies was $65,542 and the cost was $65,542 (Note 9).

See Notes to Financial Statements.

24 Western Asset Managed Municipals Fund Inc. 2021 Semi-Annual Report

Table of Contents

Western Asset Managed Municipals Fund Inc.

Abbreviation(s) used in this schedule:

AGM - Assured Guaranty Municipal Corporation - Insured Bonds
BAM - Build America Mutual - Insured Bonds
CAB - Capital Appreciation Bonds
CDA - Communities Development Authority
COP - Certificates of Participation
CSCE - Charter School Credit Enhancement
DFA - Development Finance Agency
EDA - Economic Development Authority
EDC - Economic Development Corporation
EFA - Educational Facilities Authority
FHLMC - Federal Home Loan Mortgage Corporation
GO - General Obligation
GTD - Guaranteed
HEFA - Health & Educational Facilities Authority
HFA - Housing Finance Agency
IDA - Industrial Development Authority
IDR - Industrial Development Revenue
ISD - Independent School District
LIQ - Liquidity Facility
LOC - Letter of Credit
MFA - Municipal Finance Authority
MTA - Metropolitan Transportation Authority
NATL - National Public Finance Guarantee Corporation - Insured Bonds
PCFA - Pollution Control Financing Authority
PEA - Public Energy 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.

Western Asset Managed Municipals Fund Inc. 2021 Semi-Annual Report 25

Table of Contents

Statement of assets and liabilities (unaudited)

November 30, 2021

Assets:

Investments in unaffiliated securities, at value (Cost - $776,369,741)

$ 857,697,853

Investments in affiliated securities, at value (Cost - $65,542)

65,542

Interest receivable

9,808,275

Receivable for securities sold

3,071,668

Prepaid expenses

37,414

Total Assets

870,680,752
Liabilities:

Variable Rate Demand Preferred Stock ($25,000 liquidation value per share; 8,703 shares issued and outstanding) (net of deferred offering costs of $1,286,874) (Note 5)

216,288,126

Payable for securities purchased

6,779,735

TOB Floating Rate Notes (Note 1)

6,360,000

Distributions payable to Common Shareholders

1,756,398

Investment management fee payable

384,960

Directors' fees payable

19,278

Interest expense payable

7,299

Distributions payable to Auction Rate Cumulative Preferred Stockholders

432

Accrued expenses

2,576,338

Total Liabilities

234,172,566

Series M, T, W, Th and F Auction Rate Cumulative Preferred Stock (1,105 shares authorized and issued at $25,000 per share) (Note 6)

27,625,000
Total Net Assets Applicable to Common Shareholders $ 608,883,186
Net Assets Applicable to Common Shareholders:

Common stock par value ($0.001 par value; 43,367,851 shares issued and outstanding; 500,000,000 common shares authorized)

$ 43,368

Paid-in capital in excess of par value

526,810,124

Total distributable earnings (loss)

82,029,694
Total Net Assets Applicable to Common Shareholders $ 608,883,186
Common Shares Outstanding 43,367,851
Net Asset Value Per Common Share $14.04

See Notes to Financial Statements.

26 Western Asset Managed Municipals Fund Inc. 2021 Semi-Annual Report

Table of Contents

Statement of operations (unaudited)

For the Six Months Ended November 30, 2021

Investment Income:

Interest

$ 14,308,395

Dividends from affiliated investments

4

Total Investment Income

14,308,399
Expenses:

Investment management fee (Note 2)

2,369,829

Liquidity fees (Note 5)

844,851

Distributions to Variable Rate Demand Preferred Stockholders (Notes 1 and 5)

132,274

Directors' fees

100,455

Legal fees

72,925

Rating agency fees

60,309

Remarketing fees (Note 5)

55,301

Transfer agent fees

43,096

Fund accounting fees

34,415

Amortization of Variable Rate Demand Preferred Stock offering costs (Note 5)

27,721

Audit and tax fees

25,423

Auction agent fees

22,079

Interest expense (Note 1)

20,904

Stock exchange listing fees

11,143

Auction participation fees (Note 6)

7,045

Shareholder reports

6,346

Insurance

4,724

Custody fees

2,107

Miscellaneous expenses

7,588

Total Expenses

3,848,535

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

(5)

Net Expenses

3,848,530
Net Investment Income 10,459,869
Realized and Unrealized Gain (Loss) on Investments (Notes 1 and 3):

Net Realized Gain From Unaffiliated Investment Transactions

2,207,716

Change in Net Unrealized Appreciation (Depreciation) From Unaffiliated Investments

(8,461,587)
Net Loss on Investments (6,253,871)

Distributions Paid to Auction Rate Cumulative Preferred Stockholders From Net Investment Income (Notes 1 and 6)

(12,560)
Increase in Net Assets Applicable to Common Shareholders From Operations $ 4,193,438

See Notes to Financial Statements.

Western Asset Managed Municipals Fund Inc. 2021 Semi-Annual Report 27

Table of Contents

Statements of changes in net assets

For the Six Months Ended November 30, 2021 (unaudited)

and the Year Ended May 31, 2021

November 30 May 31
Operations:

Net investment income

$ 10,459,869 $ 23,031,408

Net realized gain

2,207,716 13,841,519

Change in net unrealized appreciation (depreciation)

(8,461,587) 36,297,341

Distributions paid to Auction Rate Cumulative Preferred Stockholders from net investment income

(12,560) (46,675)

Increase in Net Assets Applicable to Common Shareholders From Operations

4,193,438 73,123,593
Distributions to Common Shareholders From (Note 1):

Total distributable earnings

(10,798,595) (23,093,381)

Decrease in Net Assets From Distributions to Common Shareholders

(10,798,595) (23,093,381)
Fund Share Transactions:

Net increase from tender and repurchase of Auction Rate Cumulative Preferred Shares (Note 6)

- 3,750

Increase in Net Assets From Fund Share Transactions

- 3,750

Increase (Decrease) in Net Assets Applicable to Common Shareholders

(6,605,157) 50,033,962
Net Assets Applicable to Common Shareholders:

Beginning of period

615,488,343 565,454,381

End of period

$ 608,883,186 $ 615,488,343

See Notes to Financial Statements.

28 Western Asset Managed Municipals Fund Inc. 2021 Semi-Annual Report

Table of Contents

Statement of cash flows (unaudited)

For the Six Months Ended November 30, 2021

Increase (Decrease) in Cash:
Cash Flows from Operating Activities:

Net increase in net assets applicable to common shareholders resulting from operations*

$ 4,205,998

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided (used) by operating activities:

Purchases of portfolio securities

(46,709,621)

Sales of portfolio securities

47,100,476

Net purchases, sales and maturities of short-term investments

1,063,426

Net amortization of premium (accretion of discount)

2,281,282

Increase in receivable for securities sold

(3,071,668)

Increase in interest receivable

(15,662)

Decrease in prepaid expenses

25,283

Decrease in payable for securities purchased

(1,092,574)

Amortization of preferred stock offering costs

27,721

Decrease in investment management fee payable

(16,088)

Decrease in Directors' fees payable

(3,036)

Decrease in interest expense payable

(1,041)

Increase in accrued expenses

849,053

Net realized gain on investments

(2,207,716)

Change in net unrealized appreciation (depreciation) of investments

8,461,587

Net Cash Provided in Operating Activities**

10,897,420
Cash Flows from Financing Activities:

Distributions paid on common stock (net of distributions payable)

(10,885,331)

Distributions paid on Auction Rate Cumulative Preferred Stock (net of distributions payable)

(12,499)

Net Cash Used by Financing Activities

(10,897,830)
Net Decrease in Cash and Restricted Cash (410)
Cash and restricted cash at beginning of period 410
Cash and restricted cash at end of period -
*

Does not include distributions paid to Auction Rate Cumulative Preferred Stockholders.

**

Included in operating expenses is cash of $21,945 paid for interest on borrowings and $132,274 paid for distributions to Variable Rate Demand Preferred Stockholders.

The following table provides a reconciliation of cash and restricted cash reported within the Statement of Assets and Liabilities that sums to the total of such amounts shown on the Statement of Cash Flows.

November 30, 2021
Cash -
Restricted cash -
Total cash and restricted cash shown in the Statement of Cash Flows -

See Notes to Financial Statements.

Western Asset Managed Municipals Fund Inc. 2021 Semi-Annual Report 29

Table of Contents

Financial highlights

For a common share of capital stock outstanding throughout each year ended May 31, unless otherwise
noted:
20211,2 20211 20201 20191 20181 20171
Net asset value, beginning of period $14.19 $13.04 $13.75 $13.51 $13.99 $14.60
Income (loss) from operations:

Net investment income

0.24 0.53 0.51 0.63 0.66 0.71

Net realized and unrealized gain (loss)

(0.14) 1.15 (0.61) 0.32 (0.37) (0.54)

Distributions paid to Auction Rate Cumulative Preferred Stockholders from net investment income

(0.00) 3 (0.00) 3 (0.01) (0.02) (0.01) (0.01)

Total income (loss) from operations

0.10 1.68 (0.11) 0.93 0.28 0.16
Less distributions to common shareholders from:

Net investment income

(0.25) 4 (0.53) (0.60) (0.70) (0.76) (0.77)

Total distributions to common shareholders

(0.25) (0.53) (0.60) (0.70) (0.76) (0.77)
Net increase from tender and repurchase of Auction Rate Cumulative Preferred Shares - 0.00 3 0.00 3 0.01 - -
Net asset value, end of period $14.04 $14.19 $13.04 $13.75 $13.51 $13.99
Market price, end of period $13.13 $13.46 $12.03 $13.73 $12.71 $13.84

Total return, based on NAV5,6

0.70 % 13.09 %7 (0.89) %7 7.23 %8 2.01 % 1.16 %

Total return, based on Market Price9

(0.62) % 16.67 % (8.35) % 14.03 % (2.89) % (1.31) %
Net assets applicable to common shareholders, end of period (millions) $609 $615 $565 $595 $585 $604
Ratios to average net assets:10

Gross expenses

1.25 %11 1.31 % 1.76 % 1.85 % 1.68 % 1.48 %

Net expenses12

1.25 11,13 1.31 13 1.76 13 1.85 1.68 1.48

Net investment income

3.40 11 3.85 3.76 4.74 4.80 5.04
Portfolio turnover rate 6 % 16 % 32 % 21 % 19 % 12 %

See Notes to Financial Statements.

30 Western Asset Managed Municipals Fund Inc. 2021 Semi-Annual Report

Table of Contents

For a common share of capital stock outstanding throughout each year ended May 31, unless otherwise noted:
20211,2 20211 20201 20191 20181 20171
Supplemental data:

Auction Rate Cumulative Preferred Stock at Liquidation Value, End of Period (000s)

$27,625 $27,625 $27,650 $28,050 $32,075 $32,075

Variable Rate Demand Preferred Stock at Liquidation Value, End of Period (000s)

$217,575 $217,575 $217,575 $217,575 $217,575 $217,575

Asset Coverage Ratio for Auction Rate Cumulative Preferred Stock and Variable Rate Demand Preferred Stock14

348 % 351 % 331 % 342 % 334 % 342 %

Asset Coverage, per $25,000 Liquidation Value per Share of Auction Rate Cumulative Preferred Stock and Variable Rate Demand Preferred Stock14

$87,080 $87,754 $82,646 $85,598 $83,585 $85,485
1

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

2

For the six months ended November 30, 2021 (unaudited).

3

Amount represents less than $0.005 per share.

4

The actual source of the Fund's current fiscal year distributions may be from net investment income, return of capital or a combination of both. Shareholders will be informed of the tax characteristics of the distributions after the close of the fiscal year.

5

Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, 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

The total return calculation assumes that distributions are reinvested at NAV. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized.

7

The total return based on NAV reflects the impact of the tender and repurchase by the Fund of a portion of its Auction Rate Cumulative Preferred Shares at 85% of the per share liquidation preference. Absent this transaction, the total return based on NAV would have been the same.

8

The total return based on NAV reflects the impact of the tender and repurchase by the Fund of a portion of its Auction Rate Cumulative Preferred Shares at 85% of the per share liquidation preference. Absent this transaction, the total return based on NAV would have been 7.15%.

9

The total return calculation assumes that distributions are reinvested in accordance with the Fund's dividend reinvestment plan. Past performance is no guarantee of future results.

10

Calculated on the basis of average net assets of common stock shareholders. Ratios do not reflect the effect of dividend payments to auction rate cumulative preferred stockholders.

11

Annualized.

12

The manager has agreed to waive the Fund's management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund.

13

Reflects fee waivers and/or expense reimbursements.

14

Represents value of net assets plus the liquidation value of the auction rate cumulative preferred stock and variable rate demand preferred stock, if any, at the end of the period divided by the liquidation value of the auction rate cumulative preferred stock and variable rate demand preferred stock, if any, outstanding at the end of the period.

See Notes to Financial Statements.

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Notes to financial statements (unaudited)

1. Organization and significant accounting policies

Western Asset Managed Municipals Fund Inc. (the "Fund") was incorporated in Maryland and is registered as a non-diversified,closed-end management investment company under the Investment Company Act of 1940, as amended (the "1940 Act"). The Fund's investment objective is to seek as high a level of current income exempt from federal income tax as is consistent with preservation of capital. When pursuing its investment objective, the Fund seeks to maximize current income exempt from federal income tax as is consistent with preservation of principal. Under the 1940 Act, the Fund may use leverage through the issuance of preferred stock in an aggregate amount of liquidation preference attributable to the preferred stock of up to approximately 50% of the Fund's total assets less all liabilities and indebtedness not represented by senior securities immediately after such issuance.

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. 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 Directors.

The Board of Directors 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 Directors, is responsible for making fair value determinations, evaluating the effectiveness of the Fund's pricing policies, and reporting to the Board of Directors. When determining the reliability of third party pricing information for investments owned by the

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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 Directors, 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 Directors 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.

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.

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

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
Long-Term Investments†:

Municipal Bonds

- $ 813,510,247 - $ 813,510,247

Municipal Bonds Deposited in Tender Option Bond Trust

- 9,972,606 - 9,972,606
Total Long-Term Investments - 823,482,853 - 823,482,853
Short-Term Investments†:

Municipal Bonds

- 34,215,000 - 34,215,000

Money Market Funds

$ 65,542 - - 65,542
Total Short-Term Investments 65,542 34,215,000 - 34,280,542
Total Investments $ 65,542 $ 857,697,853 - $ 857,763,395
†

See Schedule of Investments for additional detailed categorizations.

(b) Tender option bonds. The Fund may enter into tender option bond ("TOB") transactions and may invest in inverse floating rate instruments ("Inverse Floaters") issued in TOB transactions. The Fund may participate either in structuring an Inverse Floater or purchasing an Inverse Floater in the secondary market. When structuring an Inverse Floater, the Fund deposits securities (typically municipal bonds or other municipal securities) (the "Underlying Bonds") into a special purpose entity, referred to as a TOB trust. The TOB trust generally issues floating rate notes ("Floaters") to third parties and residual interest, Inverse Floaters, to the Fund. The Floaters issued by the TOB trust have interest rates which reset weekly and provide the holders of the Floaters the option to tender their notes back to the TOB trust for redemption at par at each reset date. The net proceeds of the sale of the Floaters, after expenses, are received by the Fund and may be invested in additional securities. The Inverse Floaters are inverse floating rate debt instruments, as the return on those bonds is inversely related to changes in a specified interest rate. Distributions on any Inverse Floaters paid to the Fund will be reduced or, in the extreme, eliminated as short-term interest rates rise and will increase when such interest rates fall. Floaters issued by a TOB trust may be senior to the Inverse Floaters held by the Fund. The value and market for Inverse Floaters can be volatile, and Inverse Floaters can have limited liquidity.

An investment in an Inverse Floater structured by the Fund is accounted for as a secured borrowing. The Underlying Bonds deposited into the TOB trust are included in the Fund's Schedule of Investments and a liability for Floaters (TOB floating rate notes) issued by the TOB trust is recognized in the Fund's Statement of Assets and Liabilities. The carrying amount of the TOB trust's floating rate note obligations as reported on the Statement of Assets and Liabilities approximates its fair value. Interest income, including amortization, on the Underlying Bonds is recognized in the Fund's Statements of Operations. Interest paid to holders of the Floaters, as well as other expenses related to administration, liquidity,

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remarketing and trustee services of the TOB trust, are recognized in Interest expense in the Fund's Statement of Operations.

(c) Net asset value.The net asset value ("NAV") of the Fund's common stock is determined no less frequently than the close of business on the Fund's last business day of each week (generally Friday) and on the last business day of the month. It is determined by dividing the value of the net assets available to common stock by the total number of shares of common stock outstanding. For the purpose of determining the NAV per share of the common stock, the value of the Fund's net assets shall be deemed to equal the value of the Fund's assets less (1) the Fund's liabilities including the aggregate liquidation value (i.e., $25,000 per outstanding share) of the Variable Rate Demand Preferred Stock ("VRDPS"), net of deferred offering costs, and (2) the aggregate liquidation value (i.e., $25,000 per outstanding share) of the Auction Rate Cumulative Preferred Stock ("ARCPS").

(d) 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.

(e) Cash flow information.The Fund invests in securities and distributes dividends from net investment income and net realized gains, which are paid in cash and may be reinvested at the discretion of shareholders. These activities are reported in the Statements of Changes in Net Assets and additional information on cash receipts and cash payments is presented in the Statement of Cash Flows.

(f) 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 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.

(g) Distributions to shareholders.Distributions to common shareholders from net investment income of the Fund, if any, are declared quarterly and paid on a monthly basis. The actual source of the Fund's monthly distribution may be from net investment income, return of capital or a combination of both. Shareholders will be informed of the tax characteristics of the distributions after the close of the fiscal year. 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 common shareholders of the Fund. Distributions to common shareholders of net realized gains, if any, are taxable and are declared at least annually. Distributions to common

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

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.

Distributions to holders of ARCPS are accrued daily and paid on a weekly basis and are determined as described in Note 6. Distributions to holders of VRDPS are accrued on a daily basis and paid monthly as described in Note 5 and are treated as an operating expense as required by GAAP. For tax purposes, the payments made to the holders of the Fund's VRDPS are treated as dividends or distributions.

(h) 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.

(i) 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 May 31, 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.

(j) 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

Legg Mason Partners Fund Advisor, LLC ("LMPFA") is the Fund's investment manager and 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 provides administrative and certain oversight services to the Fund. The Fund pays LMPFA an investment management fee, calculated daily and paid monthly, at an annual rate of 0.55% of the Fund's average daily net assets. For the purposes of calculating the investment management fee, the aggregate liquidation value of the Preferred Stock is not deducted in determining the Fund's average daily net assets.

LMPFA delegates to Western Asset the day-to-day portfolio management of the Fund. For its services, LMPFA pays Western Asset monthly 70% of the net management fee it receives from the Fund.

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The manager has agreed to waive the Fund's management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund (the "affiliated money market fund waiver").

During the six months ended November 30, 2021, fees waived and/or expenses reimbursed amounted to $5, all of which was an affiliated money market fund waiver.

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

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 Directors. 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 Directors 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 November 30, 2021, such purchase and sale transactions (excluding accrued interest) were $9,400,000 and $34,800,000, respectively.

3. Investments

During the six months ended November 30, 2021, the aggregate cost of purchases and proceeds from sales of investments (excluding short-term investments) were as follows:

Purchases $ 46,709,621
Sales 47,100,476

At November 30, 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 $ 770,075,283 $ 82,227,095 $ (898,983) $ 81,328,112
*

Cost of investments for federal income tax purposes includes the value of Inverse Floaters issued in TOB transactions (Note 1).

4. Derivative instruments and hedging activities

During the six months ended November 30, 2021, the Fund did not invest in derivative instruments.

5. Variable rate demand preferred stock

On March 4, 2015, the Fund completed a private offering of 8,703 shares of Series 1 VRDPS. Net proceeds from the offering were used by the Fund to repurchase outstanding shares of Series M, Series T, Series W, Series TH and Series F ARCPS that had been accepted for

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

payment pursuant to the tender offer (see Note 6). Offering costs incurred by the Fund in connection with the VRDPS issuance are being amortized to expense over the life of the VRDPS.

The table below summarizes the key terms of Series 1 of the VRDPS at November 30, 2021.

Series

Mandatory

Redemption

Date

Shares

Liquidation

Preference

Per Share

Aggregate

Liquidation
Value

Series 1 3/4/2045 8,703 $ 25,000 $ 217,575,000

The VRDPS shares are not listed on any securities exchange or automated quotation system. For financial reporting purposes, the VRDPS shares are considered debt of the Fund; therefore, the liquidation value, which approximates fair value of the VRDPS shares, is recorded as a liability on the Statement of Assets and Liabilities.

Holders of VRDPS have the right to tender their VRDPS shares for remarketing at a price equal to the liquidation preference amount plus all accumulated but unpaid dividends and at a date which is no earlier than the seventh day following delivery of the notice to the tender and paying agent. The VRDPS shares include a liquidity feature that allows VRDPS holders to have their shares purchased by the liquidity provider with whom the Fund has contracted in the event of a failed remarketing where purchase orders are not sufficient in number to be matched with the sale orders. The Fund is required to redeem the VRDPS shares owned by the liquidity provider after six months of continuous, unsuccessful remarketing. The Fund pays a monthly remarketing fee at the annual rate of 0.05% of the liquidation value of each VRDPS share outstanding on the first calendar day of the preceding calendar month. These fees are shown as remarketing fees on the Statement of Operations.

Holders of VRDPS are entitled to receive monthly cumulative cash dividends, payable on the first business day of each calendar month, at a variable rate set weekly by the remarketing agent. The dividend rate is generally based upon a spread over a base rate and cannot exceed a maximum rate. In the event of a failed remarketing, the dividend rate will reset to the maximum rate. The maximum rate is determined, in part, based upon the long-term rating assigned to the VRDPS. In the event the Fund fails to make a scheduled dividend payment, all outstanding shares of the VRDPS are subject to mandatory tender.

Subject to certain conditions, the VRDPS shares may be redeemed, in whole or in part, at any time at the option of the Fund. The redemption price per share is equal to the liquidation value per share plus any accumulated but unpaid dividends. The Fund is required to redeem its VRDPS on the mandatory redemption date, March 4, 2045. In addition, the Fund is required to redeem certain of the VRDPS shares if the Fund fails to maintain certain asset coverage and rating agency guidelines.

The Fund is a party to a fee agreement with the liquidity provider that requires monthly payment of an annual liquidity fee. These fees are shown as liquidity fees on the Statement of Operations. The fee agreement between the Fund and the liquidity provider is scheduled to terminate on June 24, 2022. The Fund has the right, which is exercisable 120 to 90 days

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prior to the scheduled termination date, to request that the liquidity provider extend the term of the agreement for an additional period. The Fund may also terminate the agreement early. In the event the fee agreement is not renewed or is terminated in advance, and the Fund does not enter into a fee agreement with an alternate liquidity provider, the VRDPS will be subject to mandatory purchase by the liquidity provider prior to the termination of the fee agreement. The Fund is required to redeem any VRDPS purchased by the liquidity provider six months after the purchase date.

The VRDPS ranks senior to the Fund's outstanding common stock and on parity with any other preferred stock. The Fund may not declare dividends or make other distributions on shares of its common stock unless the Fund has declared and paid full cumulative dividends on the VRDPS, due on or prior to the date of the common stock dividend or distribution, and meets the VRDPS asset coverage and rating agency requirements.

The holders of the VRDPS have one vote per share and vote together with the holders of common stock of the Fund as a single class except on matters affecting only the holders of VRDPS or the holders of common stock. Pursuant to the 1940 Act, holders of the VRDPS have the right to elect two Directors of the Fund, voting separately as a class.

The annualized dividend rate for the VRDPS shares for the six months ended November 30, 2021 was 0.121%. VRDPS shares issued and outstanding remained constant during the six months ended November 30, 2021.

6. Auction rate cumulative preferred stock

As of November 30, 2021, the Fund had 47 shares outstanding of Series M, 283 shares outstanding of Series T, 276 shares outstanding of Series W, 438 shares outstanding of Series Th and 61 shares outstanding of Series F, each of Auction Rate Cumulative Preferred Stock ("ARCPS").

On January 22, 2015, the Fund announced that it had commenced an issuer tender offer for up to 100% of its outstanding ARCPS at a price equal to 90% of the liquidation preference of $25,000 per share (or $22,500 per share), plus any unpaid dividends accrued through February 27, 2015, the expiration date of the tender offer.

The Fund's tender offers were conditioned upon the Fund closing on the private offering of VRDPS with an aggregate liquidation preference at least equal to the aggregate liquidation preference of ARCPS accepted for tender.

On March 4, 2015, the Fund announced the final results for its issuer tender offer and all shares that were validly tendered and not withdrawn during the offering period were accepted for payment. The Fund accepted for payment 1,871 Series M ARCPS, 1,717 Series T ARCPS, 1,710 Series W ARCPS, 1,466 Series Th ARCPS and 1,939 Series F ARCPS, which represented 93.55% of outstanding Series M ARCPS, 85.85% of outstanding Series T ARCPS, 85.50% of outstanding Series W ARCPS, 73.30% of outstanding Series Th ARCPS, and 96.95% of outstanding Series F ARCPS. In aggregate, the Fund accepted for payment 8,703 ARCPS, which represented 87.03% of the outstanding ARCPS. The ARCPS that were not tendered will remain outstanding. The difference between the liquidation preference of the ARCPS and the actual purchase price of the tendered ARCPS was recognized by the

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

Fund in the Statement of Changes in Net Assets as an increase in net assets applicable to common shares resulting from the tender and repurchase of the ARCPS by the Fund.

In September 2015, the Fund repurchased 14 Series W ARCPS in a private transaction at a price equal to 90% of the liquidation preference of $25,000 per share (or $22,500 per share), plus any unpaid dividends. The difference between the liquidation preference of the ARCPS and the actual purchase price of the tendered ARCPS was recognized by the Fund in the Statement of Changes in Net Assets as an increase in the assets applicable to common shares resulting from the tender and repurchase of the ARCPS by the Fund.

On November 27, 2018, the Fund repurchased 80 Series M and 80 Series Th ARCPS in a private transaction at a price equal to 85% of the liquidation preference of $25,000 per share (or $21,250 per share), plus any unpaid dividends. The difference between the liquidation preference of the ARCPS and the actual purchase price of the tendered ARCPS was recognized by the Fund in the Statement of Changes in Net Assets as an increase in the assets applicable to common shares resulting from the tender and repurchase of the ARCPS by the Fund.

On January 23, 2019, the Fund repurchased 1 Series M ARCPS in a private transaction at a price equal to 85% of the liquidation preference of $25,000 per share (or $21,250 per share), plus any unpaid dividends. The difference between the liquidation preference of the ARCPS and the actual purchase price of the tendered ARCPS was recognized by the Fund in the Statement of Changes in Net Assets as an increase in the assets applicable to common shares resulting from the tender and repurchase of the ARCPS by the Fund.

On November 20, 2019, the Fund repurchased 16 Series Th ARCPS in a private transaction at a price equal to 85% of the liquidation preference of $25,000 per share (or $21,250 per share), plus any unpaid dividends. The difference between the liquidation preference of the ARCPS and the actual purchase price of the tendered ARCPS was recognized by the Fund in the Statement of Changes in Net Assets as an increase in the assets applicable to common shares resulting from the tender and repurchase of the ARCPS by the Fund.

On November 17, 2020, the Fund repurchased 1 Series M ARCPS in a private transaction at a price equal to 85% of the liquidation preference of $25,000 per share (or $21,250 per share), plus any unpaid dividends. The difference between the liquidation preference of the ARCPS and the actual purchase price of the tendered ARCPS was recognized by the Fund in the Statement of Changes in Net Assets as an increase in the assets applicable to common shares resulting from the tender and repurchase of the ARCPS by the Fund.

The ARCPS' dividends are cumulative at a rate determined at an auction and the dividend period is typically seven days. The dividend rate cannot exceed a certain maximum rate, including in the event of a failed auction, unless the Board of Directors of the Fund authorizes an increased maximum rate. To the extent capital gains and other taxable income are allocated to holders of ARCPS for tax purposes, the Fund will likely have to pay higher dividends to holders of ARCPS to compensate them for the increased tax liability to them resulting from such allocation. Due to failed auctions experienced by the Fund's ARCPS starting February 14, 2008, the Fund paid the applicable maximum rate, which is calculated

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using the higher of 110% of the taxable equivalent of the short-term municipal bond rate and 110% of the prevailing 30-days "AA" Financial Composite Commercial Paper Rate. The Fund may pay higher maximum rates if the rating of the Fund's ARCPS were to be lowered by the rating agencies.

The dividend rates ranged from 0.066% to 0.110% during the six months ended November 30, 2021. At November 30, 2021, the dividend rates in effect were as follows:

Series M Series T Series W Series Th Series F
Dividend Rate 0.110 % 0.110 % 0.110 % 0.110 % 0.110 %

The ARCPS are redeemable under certain conditions by the Fund, or subject to mandatory redemption (if the Fund is in default of certain coverage requirements) at a redemption price equal to the liquidation preference, which is the sum of $25,000 per share plus accumulated and unpaid dividends.

The Fund is required to maintain certain asset coverages with respect to the ARCPS. If the Fund fails to maintain these coverages and does not cure any such failure within the required time period, the Fund is required to redeem a requisite number of the ARCPS in order to meet the applicable requirement. Additionally, failure to meet the foregoing asset requirements would restrict the Fund's ability to pay dividends to common stock shareholders.

The holders of the ARCPS have one vote per share and vote together with the holders of common stock of the Fund as a single class except on matters affecting only the holders of preferred stock or the holders of common stock. Pursuant to the 1940 Act, holders of the preferred stock have the right to elect two Directors of the Fund, voting separately as a class.

Citigroup Global Markets Inc. ("CGM"), an indirect wholly-owned subsidiary of Citigroup, Inc., acts as a broker/dealer in connection with the auction of ARCPS. For all previous periods since the ARCPS have been outstanding, the participation fee has been paid at the annual rate of 0.25% of the purchase price of the ARCPS that the broker/dealer places at the auction. However, on August 3, 2009, CGM reduced its participation fee to an annual rate of 0.05% of the purchase price of the ARCPS, in the case of a failed auction. For the six months ended November 30, 2021, CGM earned $7,045 as a participating broker/dealer.

7. Distributions to common shareholders subsequent to November 30, 2021

The following distributions to common shareholders have been declared by the Fund's Board of Directors and are payable subsequent to the period end of this report:

Record Date Payable Date Amount
11/22/2021 12/1/2021 $ 0.0405
12/23/2021 12/31/2021 $ 0.0405
1/24/2022 2/1/2022 $ 0.0405
2/18/2022 3/1/2022 $ 0.0405
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Notes to financial statements (unaudited) (cont'd)

8. Stock repurchase program

On November 16, 2015, the Fund announced that the Fund's Board of Directors (the "Board") had authorized the Fund to repurchase in the open market up to approximately 10% of the Fund's outstanding common stock when the Fund's shares are trading at a discount to net asset value. The Board has directed management of the Fund to repurchase shares of common stock at such times and in such amounts as management reasonably believes may enhance stockholder value. The Fund is under no obligation to purchase shares at any specific discount levels or in any specific amounts. During the six months ended November 30, 2021, the Fund did not repurchase any shares.

9. Transactions with affiliated company

As defined by the 1940 Act, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control with the Fund. The following company was considered an affiliated company for all or some portion of the six months ended November 30, 2021. The following transactions were effected in such company for the six months ended November 30, 2021.

Affiliate

Value at

May 31,

Purchased Sold
2021 Cost Shares Cost Shares
Western Asset Premier Institutional Government Reserves, Premium Shares $ 58,968 $ 5,873,779 5,873,779 $ 5,867,205 5,867,205
(cont'd)

Realized

Gain (Loss)

Dividend

Income

Net Increase

(Decrease) in

Unrealized

Appreciation

(Depreciation)

Affiliate

Value at

November 30,

2021

Western Asset Premier Institutional Government Reserves, Premium Shares - $ 4 - $ 65,542

10. Deferred capital losses

As of May 31, 2021, the Fund had deferred capital losses of $1,946,531, which have no expiration date, that will be available to offset future taxable capital gains.

11. 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 the effect of certain types of contract modifications due to the planned discontinuation of

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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.

12. 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 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 Managed Municipals Fund Inc. 2021 Semi-Annual Report 43

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Additional shareholder information (unaudited)

Results of annual meeting of shareholders

The Annual Meeting of Shareholders of Western Asset Managed Municipals Fund Inc. was held on October 22, 2021 for the purpose of considering and voting upon the proposals presented at the Meeting. The following table provides information concerning the matters voted upon at the Meeting:

Election of directors

Nominees

Common

Shares and

Preferred

Shares, voting

together,

Voted FOR

Election

Common

Shares and

Preferred

Shares,

voting

together,

WITHHELD

Common

Shares

and

Preferred

Shares, voting

together,

ABSTAIN

Preferred

Shares,

Voted FOR

Election

Preferred

Shares,

WITHHELD

Preferred

Shares,

ABSTAIN

Carol L. Colman 25,882,472 11,948,968 548,517 N/A N/A N/A
Paolo M. Cucchi N/A N/A N/A 8,630 80 169
Jane Trust 37,152,894 610,340 616,723 N/A N/A N/A

At November 30, 2021, in addition to Carol L. Colman, Paolo M. Cucchi and Jane Trust, the other Directors of the Fund were as follows:

Robert D. Agdern

Daniel P. Cronin

William R. Hutchinson

Nisha Kumar

Eileen A. Kamerick

Ratification of Selection of Independent Registered Public Accountants

To ratify the selection of PricewaterhouseCoopers LLP ("PwC") as independent registered public accountants of the Fund for the fiscal year ended May 31, 2022.

FOR AGAINST ABSTAIN

BROKER NON-

VOTES

37,538,322 335,597 506,038 0
44 Western Asset Managed Municipals Fund Inc.

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Dividend reinvestment plan (unaudited)

Unless you elect to receive distributions in cash (i.e., opt-out), all dividends, including any capital gain dividends and return of capital distributions, on your Common Stock will be automatically reinvested by Computershare Trust Company, N.A., as agent for the stockholders (the "Plan Agent"), in additional shares of Common Stock under the Fund's Dividend Reinvestment Plan (the "Plan"). You may elect not to participate in the Plan by contacting the Plan Agent. If you do not participate, you will receive all cash distributions paid by check mailed directly to you by Computershare Trust Company, N.A., as dividend paying agent.

If you participate in the Plan, the number of shares of Common Stock you will receive will be determined as follows:

(1) If the market price of the Common Stock (plus $0.03 per share commission) on the payment date (or, if the payment date is not a NYSE trading day, the immediately preceding trading day) is equal to or exceeds the net asset value per share of the Common Stock at the close of trading on the NYSE on the payment date, the Fund will issue new Common Stock at a price equal to the greater of (a) the net asset value per share at the close of trading on the NYSE on the payment date or (b) 95% of the market price per share of the Common Stock on the payment date.

(2) If the net asset value per share of the Common Stock exceeds the market price of the Common Stock (plus $0.03 per share commission) at the close of trading on the NYSE on the payment date, the Plan Agent will receive the dividend or distribution in cash and will buy Common Stock in the open market, on the NYSE or elsewhere, for your account as soon as practicable commencing on the trading day following the payment date and terminating no later than the earlier of (a) 30 days after the dividend or distribution payment date, or (b) the payment date for the next succeeding dividend or distribution to be made to the stockholders; except when necessary to comply with applicable provisions of the federal securities laws. If during this period: (i) the market price (plus $0.03 per share commission) rises so that it equals or exceeds the net asset value per share of the Common Stock at the close of trading on the NYSE on the payment date before the Plan Agent has completed the open market purchases or (ii) if the Plan Agent is unable to invest the full amount eligible to be reinvested in open market purchases, the Plan Agent will cease purchasing Common Stock in the open market and the Fund shall issue the remaining Common Stock at a price per share equal to the greater of (a) the net asset value per share at the close of trading on the NYSE on the day prior to the issuance of shares for reinvestment or (b) 95% of the then current market price per share.

Common Stock in your account will be held by the Plan Agent in non-certificated form. Any proxy you receive will include all shares of Common Stock you have received under the Plan. You may withdraw from the Plan (i.e., opt-out) by notifying the Plan Agent in writing at 462 South 4th Street, Suite 1600, Louisville, KY 40202 or by calling the Plan Agent at 1-888-888-0151. Such withdrawal will be effective immediately if notice is received by the Plan Agent not less than ten business days prior to any dividend or distribution record date;

Western Asset Managed Municipals Fund Inc. 45

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Dividend reinvestment plan (unaudited) (cont'd)

otherwise such withdrawal will be effective as soon as practicable after the Plan Agent's investment of the most recently declared dividend or distribution on the Common Stock.

Plan participants who sell their shares will be charged a service charge (currently $5.00 per transaction) and the Plan Agent is authorized to deduct brokerage charges actually incurred from the proceeds (currently $0.05 per share commission). There is no service charge for reinvestment of your dividends or distributions in Common Stock. However, all participants will pay a pro rata share of brokerage commissions incurred by the Plan Agent when it makes open market purchases. Because all dividends and distributions will be automatically reinvested in additional shares of Common Stock, this allows you to add to your investment through dollar cost averaging, which may lower the average cost of your Common Stock over time. Dollar cost averaging is a technique for lowering the average cost per share over time if the Fund's net asset value declines. While dollar cost averaging has definite advantages, it cannot assure profit or protect against loss in declining markets.

Automatically reinvesting dividends and distributions does not mean that you do not have to pay income taxes due upon receiving dividends and distributions. Investors will be subject to income tax on amounts reinvested under the Plan.

The Fund reserves the right to amend or terminate the Plan if, in the judgment of the Board of Directors, the change is warranted. The Plan may be terminated, amended or supplemented by the Fund upon notice in writing mailed to stockholders at least 30 days prior to the record date for the payment of any dividend or distribution by the Fund for which the termination or amendment is to be effective. Upon any termination, you will be sent cash for any fractional share of Common Stock in your account. You may elect to notify the Plan Agent in advance of such termination to have the Plan Agent sell part or all of your Common Stock on your behalf. Additional information about the Plan and your account may be obtained from the Plan Agent at 462 South 4th Street, Suite 1600, Louisville, KY 40202 or by calling the Plan Agent at 1-888-888-0151.

46 Western Asset Managed Municipals Fund Inc.

Table of Contents

Western Asset

Managed Municipals Fund Inc.

Directors

Robert D. Agdern

Carol L. Colman

Daniel P. Cronin

Paolo M. Cucchi

William R. Hutchinson

Eileen A. Kamerick

Nisha Kumar

Jane Trust

Chairman

Officers

Jane Trust

President and Chief Executive Officer

Christopher Berarducci

Treasurer and Principal Financial Officer

Fred Jensen

Chief Compliance Officer

Jenna Bailey

Identity Theft Prevention Officer

George P. Hoyt

Secretary and Chief Legal Officer

Thomas C. Mandia

Assistant Secretary

Jeanne M. Kelly

Senior Vice President

Western Asset Managed Municipals Fund Inc.

620 Eighth Avenue

47th Floor

New York, NY 10018

Investment manager

Legg Mason Partners Fund Advisor, LLC

Subadviser

Western Asset Management Company, LLC

Custodian

The Bank of New York Mellon

Transfer agent

Computershare Inc.

462 South 4th Street, Suite 1600

Louisville, KY 40202

Auction agent

Deutsche Bank

60 Wall Street

New York, NY 10005

Independent registered public accounting firm

PricewaterhouseCoopers LLP

Baltimore, MD

Legal counsel

Simpson Thacher & Bartlett LLP

900 G Street NW

Washington, DC 20001

New York Stock Exchange Symbol

MMU

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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

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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 1-888-777-0102.

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

Table of Contents

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

Table of Contents

Western Asset Managed Municipals Fund Inc.

Western Asset Managed Municipals Fund Inc.

620 Eighth Avenue

47th Floor

New York, NY 10018

Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940, as amended, that from time to time the Fund may purchase, at market prices, shares of its stock.

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 1-888-777-0102.

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 1-888-777-0102, (2) at www.franklintempleton.com and (3) on the SEC's website at www.sec.gov.

This report is transmitted to the shareholders of Western Asset Managed Municipals Fund Inc. for their information. This is not a prospectus, circular or representation intended for use in the purchase of shares of the Fund or any securities mentioned in this report.

Computershare Inc.

462 South 4th Street, Suite 1600

Louisville, KY 40202

WASX010152 1/22 SR21-4327

Table of Contents

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.

INVESTMENT PROFESSIONALS 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.

Table of Contents

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

Table of Contents

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.

Western Asset Managed Municipals Fund Inc.

By:

/s/ Jane Trust

Jane Trust
Chief Executive Officer
Date: January 24, 2022

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: January 24, 2022
By:

/s/ Christopher Berarducci

Christopher Berarducci
Principal Financial Officer
Date: January 24, 2022