Fund Description: Western Asset High Income Opportunity Fund, formerly the High Income Opportunity Fund, is a diversified, closed-end management investment fund. INVESTMENT OBJECTIVE: The fund's primary investment objective is to seek high current income. Capital appreciation is a secondary objective. FUND STRATEGY: Under normal market conditions, the fund invests at least 65% of its assets in high-yielding corporate debt obligations and preferred stock. Up to 35% of the fund's assets may be invested in common stock equivalents, including options, warrants and rights. Equity investments may be made in securities of companies of any size depending on the relative attractiveness of the company and the economic sector in which it operates. Fixed-income securities purchased by the fund generally are rated in the lower rating categories of nationally recognized security rating organizations, as low as C by Moody's or D by Standard & Poor's, or are unrated securities that are deemed to be of comparable quality. The fund will not purchase securities rated lower than B by both Moody's and S&P if more than 20% of its total assets would be invested in such securities immediately after such purchase. The fund may invest in securities rated higher than Ba by Moody's and BB by S&P without limitation when the difference in yields between quality classifications is relatively narrow. The fund may lend its portfolio securities and purchase or sell securities on a when-issued or delayed delivery basis. The fund does not intend to leverage its investments, although it reserves the right to do so. The fund may hedge against possible declines in the value of its investments by entering into interest rate futures contracts and related options, swaps and other financial instruments. FUND MANAGEMENT: Legg Mason Partners Fund Advisor, LLC, a wholly owned subsidiary of Legg Mason, Inc. (NYSE: LM), is the Fund's investment manager, and provides administrative and management services to the Fund. Western Asset Management Company, an affiliate of the adviser, is the Fund's subadviser and is responsible for the day-to-day portfolio management of the Fund.