Western Asset Mortgage Defined Opportunity Fund Inc. Announces Results of Special Meeting of Stockholders and Other Fund Changes

Western Asset Mortgage Defined Opportunity Fund Inc. (the “Fund”), which is traded on the New York Stock Exchange under the symbol “DMO,” announced today the results of the votes cast at the Fund’s special meeting of stockholders held on December 13, 2019.

Stockholders approved the proposal to convert the Fund to a perpetual fund by eliminating the Fund’s term, which was scheduled to end at the close on business on March 1, 2022.

As a result of the proposal’s approval, the following changes will take effect January 2, 2020:

• The Fund’s name will be changed to Western Asset Mortgage Opportunity Fund Inc. The Fund’s ticker symbol will remain “DMO”. The Fund’s CUSIP, 95790B109, will not change.
• Investments in mortgage whole loans will be included within the Fund’s 80% Policy as follows: “Under normal circumstances, the Fund will invest at least 80% of its Managed Assets (as defined in the Fund’s prospectus) in mortgage-backed securities and mortgage whole loans”. Investments in mortgage whole loans will be subject to a cap of 20% of the Fund’s Managed Assets.
• The Fund’s investment manager has agreed to waive 20 basis points of its annual management fee (the “Fee Waiver”) for a period of two years. The Fee Waiver will terminate on January 2, 2022.

Western Asset Mortgage Defined Opportunity Fund Inc. is a non-diversified, closed-end management investment company managed by Legg Mason Partners Fund Advisor, LLC, a wholly owned subsidiary of Legg Mason, Inc., and is sub-advised by Western Asset Management Company, LLC, an affiliate of the adviser.

All investments are subject to risks, including the possible loss of principal. The Fund’s investments are subject to liquidity risk, credit risk, inflation risk, and interest rate risk. Mortgage-backed securities are subject to additional risks, including prepayment risk, which can limit the potential gains in a declining interest rate environment and risks of delinquency and foreclosure. These risks are heighted to the extent that the Fund invests in mortgage whole loans. The Fund may invest in securities backed by subprime or distressed mortgages which involve a higher degree of risk and chance of loss. Leverage may result in greater volatility of NAV and the market price of common shares and increases a shareholder’s risk of loss. The Fund is not guaranteed by the U.S. Government, the U.S. Treasury, or any government agency.

Contact the Fund at 1-888-777-0102 for additional information, or consult the Fund’s web site at www.leggmason.com/cef. Hard copies of the Fund’s complete audited financial statements are available free of charge upon request.

Data and commentary provided in this press release are for informational purposes only. Legg Mason and its affiliates do not engage in selling shares of the Fund.

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