Edgar Filing: WESTERN ASSET GLOBAL HIGH INCOME FUND INC.

Western Asset Global High Income Fund Inc. (EHI)

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 811-21337

Western Asset Global High Income Fund Inc.

Exact name of registrant as specified in charter)

620 Eighth Avenue, 49th Floor, New York, NY 10018

(Address of principal executive offices) (Zip code)

Robert I. Frenkel, Esq.

Legg Mason & Co., LLC

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: May 31, 2017

ITEM 1.

REPORT TO STOCKHOLDERS.

The Annual Report to Stockholders is filed herewith.

LOGO


Annual Report		May 31, 2017

WESTERN ASSET

GLOBAL HIGH INCOME

FUND INC. (EHI)

LOGO

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


What’s inside
Letter from the chairman			II
Investment commentary			III
Fund overview			1
Fund at a glance			8
Spread duration			9
Effective duration			10
Schedule of investments			11
Statement of assets and liabilities			37
Statement of operations			38
Statements of changes in net assets			39
Statement of cash flows			40
Financial highlights			41
Notes to financial statements			42
Report of independent registered public accounting firm			60
Additional information			61
Annual chief executive officer and principal financial officer certifications			67
Other shareholder communications regarding accounting matters			68
Dividend reinvestment plan			69
Important tax information			73

Fund objectives

The Fund’s primary investment objective is high current income. The Fund’s secondary investment objective is total return.

Under normal market conditions, the Fund invests in a global portfolio of securities consisting of below investment grade fixed-income securities, emerging market fixed-income securities and investment grade fixed-income securities.

Letter from the chairman

LOGO

Dear Shareholder,

We are pleased to provide the annual report of Western Asset Global High Income Fund Inc. for the twelve-month reporting period ended May 31, 2017. Please read on for a detailed look at prevailing economic and market conditions during the Fund’s reporting period and to learn how those conditions have affected Fund performance.

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.lmcef.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,

LOGO

Jane Trust, CFA

Chairman, President and Chief Executive Officer

June 30, 2017


II		Western Asset Global High Income Fund Inc.

Investment commentary

Economic review

The pace of U.S. economic activity fluctuated during the twelve months ended May 31, 2017 (the “reporting period”). Looking back, the U.S. Department of Commerce reported that second quarter 2016 U.S. gross domestic product (“GDP”)ⁱ growth was 1.4%. GDP growth for the third quarter of 2016 was 3.5%, the strongest reading in two years. However, fourth quarter 2016 GDP growth then moderated to 2.1%. Finally, the U.S. Department of Commerce’s final reading for first quarter 2017 GDP growth — released after the reporting period ended was 1.4%. The deceleration in growth reflected downturns in private inventory investment and personal consumption expenditures, along with more modest state and local government spending.

Job growth in the U.S. was solid overall and a tailwind for the economy during the reporting period. When the reporting period ended on May 31, 2017, the unemployment rate was 4.3%, as reported by the U.S. Department of Labor. This was the lowest unemployment rate since May 2001. The percentage of longer-term unemployed also declined over the period. In May 2017, 24.0% of Americans looking for a job had been out of work for more than six months, versus 25.8% when the period began.

Turning to the global economy, in its April 2017 World Economic Outlook Update, the International Monetary Fund (“IMF”)ⁱⁱ said, “Global economic activity is picking up with a long-awaited cyclical recovery in investment, manufacturing, and trade….Stronger activity and expectations of more robust global demand, coupled with agreed restrictions on oil supply, have helped commodity prices recover from their troughs in early 2016….If confidence and market sentiment remain strong, short-term growth could indeed surprise on the upside. But these positive developments should not distract from binding structural impediments to a stronger recovery and a balance of risks that remains tilted to the downside, especially over the medium term.” From a regional perspective, the IMF estimates 2017 growth in the Eurozone will be 1.7%, the same as in 2016. Japan’s economy is expected to expand 1.2% in 2017, compared to 1.0% in 2016. Elsewhere, the IMF projects that overall growth in emerging market countries will accelerate to 4.5% in 2017, versus 4.1% in 2016.

Looking back, after an extended period of maintaining the federal funds rateⁱⁱⁱ at a historically low range between zero and 0.25%, the Federal Reserve Board (the “Fed”)^iv increased the rate at its meeting on December 16, 2015. This marked the first rate hike since 2006. In particular, the U.S. central bank raised the federal funds rate to a range between 0.25% and 0.50%. The Fed then kept rates on hold at each meeting prior to its meeting in mid-December 2016. On December 14, 2016, the Fed raised rates to a range between 0.50% and 0.75%.

After holding rates steady at its meeting that concluded on February 1, 2017, the Fed raised rates to a range between 0.75% and 1.00% at its meeting that ended on March 15, 2017. Finally, at its meeting that concluded on June 14, 2017 — after the reporting period ended — the Fed raised rates to a range between 1.00% and 1.25%. The Fed also said that it planned to reduce its balance sheet, saying, “The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed


Western Asset Global High Income Fund Inc.		III

Investment commentary (cont’d)

securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. The Committee currently expects to begin implementing a balance sheet normalization program this year, provided that the economy evolves broadly as anticipated.”

Given the economic challenges in the Eurozone, the European Central Bank (“ECB”)^v took a number of actions to stimulate growth and ward off deflation. In December 2015, before the reporting period began, the ECB extended its €60 billion-per-month bond buying program until at least March 2017. In March 2016, the ECB announced that it would increase its bond purchasing program to €80 billion-per-month. It also lowered its deposit rate to -0.4% and its main interest rate to 0%. Finally, in December 2016 — the ECB again extended its bond buying program until December 2017. From April 2017 through December 2017, the ECB will purchase €60 billion-per-month of bonds. Looking at other developed countries, in the aftermath of the June 2016 U.K. referendum to leave the European Union (“Brexit”), the Bank of England^vi lowered rates in October 2016 from 0.50% to 0.25% — an all-time low. After holding rates steady at 0.10% for more than five years, in January 2016, the Bank of Japan^vii announced that it lowered the rate on current accounts that commercial banks hold with it to -0.10% and kept rates on hold during the reporting period. Elsewhere, the People’s Bank of China^viii kept rates steady at 4.35%.

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

Sincerely,

LOGO

Jane Trust, CFA

Chairman, President and Chief Executive Officer

June 30, 2017

All investments are subject to risk including the possible loss of principal. Past performance is no guarantee of future results. Forecasts and predictions are inherently limited and should not be relied upon as an indication of actual or future performance.


IV		Western Asset Global High Income Fund Inc.

ⁱ	Gross domestic product (“GDP”) is the market value of all final goods and services produced within a country in a given period of time.

ⁱⁱ	The International Monetary Fund (“IMF”) is an organization of 189 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

ⁱⁱⁱ	The federal funds rate is the rate charged by one depository institution on an overnight sale of immediately available funds (balances at the Federal Reserve) to another depository institution; the rate may vary from depository institution to depository institution and from day to day.

^iv	The Federal Reserve Board (the “Fed”) is responsible for the formulation of U.S. policies designed to promote economic growth, full employment, stable prices and a sustainable pattern of international trade and payments.

^v	The European Central Bank (“ECB”) is responsible for the monetary system of the European Union and the euro currency.

^vi	The Bank of England (“BoE”), formally the Governor and Company of the BoE, is the central bank of the United Kingdom. The BoE’s purpose is to maintain monetary and financial stability.

^vii	The Bank of Japan is the central bank of Japan. The bank is responsible for issuing and handling currency and treasury securities, implementing monetary policy, maintaining the stability of the Japanese financial system and the yen currency.

^viii

The People’s Bank of China is the central bank of the People’s Republic of China with the power to carry out monetary policy and regulate financial institutions in mainland China.


Western Asset Global High Income Fund Inc.		V

Fund overview

Q. What is the Fund’s investment strategy?

A. The Fund’s primary investment objective is high current income and its secondary objective is total return. Under normal market conditions, the Fund invests in a global portfolio of securities consisting of below investment grade fixed-income securities, emerging market fixed-income securities and investment grade fixed-income securities. We have broad discretion to allocate the Fund’s assets among the following segments of the global market for below investment and investment grade fixed income securities: corporate bonds, loans, preferred stock, mortgage- and asset-backed securities and sovereign debt, and derivative instruments of the foregoing securities. The Fund may use a variety of derivative instruments, such as options, futures contracts, swap agreements and credit default swaps, as part of its investment strategies or for hedging or risk management purposes.

At Western Asset Management Company (“Western Asset”), the Fund’s subadviser, we utilize a fixed-income team approach, with decisions derived from interaction among various investment management sector specialists. The sector teams are comprised of Western Asset’s senior portfolio management personnel, research analysts and an in-house economist. Under this team approach, management of client fixed-income portfolios will reflect a consensus of interdisciplinary views within the Western Asset organization. The individuals responsible for development of investment strategy, day-to-day portfolio management, oversight and coordination of the Fund are S. Kenneth Leech, Michael C. Buchanan, Chia-Liang (CL) Lian, Ryan K. Brist and Christopher F. Kilpatrick.

Q. What were the overall market conditions during the Fund’s reporting period?

A. The overall fixed income market experienced periods of volatility and generated a modest gain over the twelve-month reporting period ended May 31, 2017. The spread sectors (non-Treasuries) generally rallied from June 2016 through September 2016, as concerns over global growth moderated, energy prices stabilized and the Federal Reserve Board’s (the “Fed”)ⁱ monetary policy remained accommodative. This rally occurred even as the market overcame several headwinds, including questions related to global monetary policy, implications of the U.K.’s referendum to leave the European Union (“Brexit”) and a number of geopolitical issues. U.S. Treasury yields then moved sharply higher and most segments of the fixed income market posted weak total returns from October 2016 through the end of December 2016 (yields and prices move in the opposite direction). This turnaround was triggered by expectations for improving economic growth and higher inflation due to potential fiscal stimulus from President Donald Trump’s administration. In addition, for the first time in a year the Fed raised rates in December 2016. The U.S. central bank also indicated that it may institute more rate hikes in 2017 than it had previously projected. However, spread sectors then regained their footing over the last five months of the period, as Treasury yields generally edged lower, even though the Fed again raised rates in March 2017.

Both short- and long-term Treasury yields moved higher during the reporting period as a whole. The yields for the two-year Treasury began the reporting period at 0.87% and ended the period at 1.28%. Their peak of


Western Asset Global High Income Fund Inc. 2017 Annual Report		1

Fund overview (cont’d)

1.40% occurred on both March 13 and March 14, 2017, and they were as low as 0.56% on July 5, 2016. The yields for the ten-year Treasury were 1.84% at the beginning of the period and ended the period at 2.21%. Their peak of 2.62% was on March 13, 2017, and their low of 1.37% occurred on both July 5 and July 8, 2016.

Regarding the global credit markets for the twelve months ended May 31, 2017, the period began with generally robust investor risk appetite as economic data improved, central banks remained highly accommodative and commodity prices stabilized. While there were occasional periods of weakness, such as after Brexit, immediately following the results of the U.S. elections in November 2016 and following the Fed’s December 2016 meeting, these proved to be only temporary setbacks. In addition, investor sentiment was buoyed by expectations for improving growth, rising corporate profits and less regulations under the Trump administration. The market stumbled in March 2017 after the failure to “repeal and replace” the Affordable Care Act. This triggered skepticism regarding the timing and magnitude of President Trump’s pro-growth agenda. However, the market again rallied in April and May 2017 amid generally supportive economic data.

The emerging market debt asset class rallied during the first four months of the reporting period amid signs of improving global growth, rising commodity prices and strong investor demand. The asset class then fell sharply in October and November 2016. Weakening demand was triggered by a number of factors, including uncertainties surrounding the U.S. elections and expectations for a rate hike by the Fed. The sell-off intensified in November 2016 following the unexpected victory of Donald Trump amid expectations for stronger domestic economic growth and a potentially accelerated normalization schedule from the Fed. This, in turn, resulted in sharply rising yields in the U.S. and a strengthening U.S. dollar. Investor sentiment for the asset class was also negatively impacted by the potential deterioration in the relationship between the U.S. and China, concerns over President-elect Trump’s anti-globalization rhetoric and uncertainty around future U.S. policies that may impact Mexico and other emerging market countries. However, the asset class regained its footing and rallied sharply over the last six months of the period. This turnaround was triggered by improving investor demand, less concern over a significant shift in U.S. trade policy and a weakening U.S. dollar.

The Bloomberg Barclays U.S. Aggregate Indexⁱⁱ returned 1.58% for the twelve months ended May 31, 2017. Investment grade corporate bonds posted a positive return, with the Bloomberg Barclay U.S. Credit Indexⁱⁱⁱ gaining 3.89%. Comparatively, riskier fixed-income securities, including high-yield bonds and emerging market debt, produced superior results. Over the fiscal year, the Bloomberg Barclays U.S. Corporate High Yield — 2% Issuer Cap Index^iv returned 13.57%. During this period, as measured by the high yield index, lower-quality CCC-rated bonds outperformed higher-quality BB-rated securities, returning 23.13% and 10.08%, respectively. Elsewhere, emerging market debt, as measured by the JPMorgan Emerging Markets Bond Index Global (“EMBI Global”),^v returned 9.74% for the twelve months ended May 31, 2017.


2		Western Asset Global High Income Fund Inc. 2017 Annual Report

Q. How did you respond to these changing market conditions?

A. A number of adjustments were made to the Fund’s portfolio during the reporting period. We increased the Fund’s allocation to high-yield corporate bonds and pared its allocation to investment-grade corporate bonds, specifically in the Financials sector, as we felt the former was more attractively valued. This reduced the Fund’s significant overweight in the Financials sector to a more normal overweight. Within the high-yield market, we reduced our overweight to securities rated CCC. We also reduced the Fund’s underweight to BB-rated bonds. We added attractively valued bonds in the primary market, as well as “rising star” issuers that our credit team believed have a chance of being upgraded to investment grade. We continued to have a diversified allocation in both investment grade and high yield bonds in the Energy sector. We maintained our relative overweight to this sector due to improving pricing and fundamentals. We also increased the Fund’s allocations to Basic Industry¹ and Consumer Non-Cyclicals² (largely food & beverage names) given solid fundamentals.

In terms of the Fund’s emerging market debt allocation, we added exposure to Argentina, Brazil and Ecuador as we found these countries to be more attractive based on underlying political stability, improving fundamentals, and/or rising commodity prices.

The Fund employed U.S. Treasury futures to manage its yield curve^vi positioning and duration^vii. U.S. Treasury futures had a positive impact to performance during the reporting period. A high yield index swap (CDX), which was used to manage the Fund’s high-yield corporate bond exposure, detracted from performance. Finally, currency forwards and options, which were utilized to manage the Fund’s currency exposure, were positive, overall, for performance. All told, derivatives had a positive impact to performance during the reporting period.

During the reporting period, we tactically utilized leverage in the Fund. We ended the period with liabilities as a percentage of gross assets of approximately 24%, which was roughly 2% lower than at the beginning of the period. The use of leverage was positive for performance during the reporting period.

Performance review

For the twelve months ended May 31, 2017, Western Asset Global High Income Fund Inc. returned 17.82% based on its net asset value (“NAV”)^viii and 19.21% based on its New York Stock Exchange (“NYSE”) market price per share. The Fund’s unmanaged benchmarks, the Bloomberg Barclays U.S. Aggregate Index, the Bloomberg Barclays U.S. Corporate High Yield — 2% Issuer Cap Index and the EMBI Global, returned 1.58%, 13.57% and 9.74%, respectively, for the same period. The Lipper High Yield (Leveraged) Closed-End Funds Category Average^ix returned 17.20% over the same time frame. Please note that Lipper performance returns are based on each fund’s NAV.

¹	Basic Industry consists of the following industries: Chemicals, Metals & Mining and Paper.

²	Consumer Non-Cyclicals consists of the following industries: Consumer Products, Food/Beverage, Health Care, Pharmaceuticals, Supermarkets and Tobacco.


Western Asset Global High Income Fund Inc. 2017 Annual Report		3

Fund overview (cont’d)

During the twelve-month period, the Fund made distributions to shareholders totaling $1.04 per share*. The performance table shows the Fund’s twelve-month total return based on its NAV and market price as of May 31, 2017. Past performance is no guarantee of future results.


Performance Snapshot as of May 31, 2017
Price Per Share	12-Month Total Return**
$11.31 (NAV)		17.82	%†
$10.23 (Market Price)		19.21	%‡

All figures represent past performance and are not a guarantee of future results.

** 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 at NAV.

‡ Total return assumes the reinvestment of all distributions in additional shares in accordance with the Fund’s Dividend Reinvestment Plan.

Q. What were the leading contributors to performance?

A. The largest contributor to the Fund’s relative performance during the reporting period was its quality biases. In particular, an overweight to securities rated CCC and an underweight to securities rated BB were rewarded, as lower quality bonds significantly outperformed their higher quality counterparts.

Another significant driver of performance was our positioning in a number of sectors. An overweight to the Energy sector was additive for results, as it was one of the top performing sector during the reporting period. Individual holdings that were positive for returns included overweight positions in Petrobras Global Finance and Chesapeake Energy Corp. Prior to the reporting period, we had a backdrop of weakening oil prices and all of these companies were downgraded by Moody Investor Service’s. However, they subsequently improved their balance sheets and benefited from recovering oil prices. As a result, several of these companies were recently upgraded. An overweight to the metals & mining industry was rewarded given its strong results over the reporting period. Examples of holdings that added value were overweights in Murray Energy Corp. and Vale Overseas Limited. Murray Energy performed well amid stabilizing commodity prices. Brazilian metals and mining company Vale Overseas Limited was also supported by a better backdrop for commodity prices, a strengthening balance sheet and an improving trajectory for Brazil’s economy. Elsewhere, within the Communications¹ sector an overweight to Sprint (Sprint Communications, Inc. and Sprint Corp.) was the largest contributor to results. Sprint’s management team made improvement both from an operational and financial standpoint and its debt was upgraded by Moody’s in January 2017.

Finally, in terms of the Fund’s emerging market debt exposure, overweights to Argentina, Brazil and Ecuador were also positive for results.

*	For the tax character of distributions paid during the fiscal year ended May 31, 2017, please refer to page 58 of this report.

¹	Communications consists of the following industries: Media – Cable, Media – Non-Cable and Telecommunications.


4		Western Asset Global High Income Fund Inc. 2017 Annual Report

Q. What were the leading detractors from performance?

A. While the Fund significantly outperformed its benchmark during the reporting period, a number of our individual issuers underperformed the benchmark. In particular, the Fund’s overweight positions in Sierra Hamilton LLC/Sierra Hamilton Finance, Inc., Berry Petroleum Co, LLC., and Neiman Marcus Group, Inc. were negative for results. While we felt the team successfully navigated the energy market as a whole, a small overweight to secured bonds of Sierra Hamilton LLC/Sierra Hamilton Finance, Inc., an energy consulting company, was negative for performance as it defaulted on its debt obligation during the reporting period. In addition, our reorganized equity position in Berry Petroleum underperformed performing energy companies during the reporting period. Neiman Marcus posted poor fundamental performance and secular challenges were headwinds for the retail space. While we believe our team navigated this extremely challenging sector well, retail exposure was not rewarded. We exited our Neiman Marcus position during the reporting period.

Certain of the Fund’s emerging market debt positions also detracted from results. Within the asset class, an allocation to Pacific Exploration and Production, and Oi Brasil Holdings Cooperatief UA / Oi SA detracted from performance. Our reorganized equity exposure to Columbian energy company Pacific Rubiales underperformed the broader rally in energy issuers during the period. Brazilian wireless and wireline operator Oi was in restructuring negotiations with bondholders for most of the period. In addition, the company continued to post uninspiring fundamental results. Oi bonds underperformed in a rallying market.

Finally, the Fund’s allocations to investment grade corporate bonds and emerging market debt helped to diversify its portfolio. While these holdings were additive to the Fund’s absolute performance, they lagged high-yield corporate bonds during the reporting period.

Looking for additional information?

The Fund is traded under the symbol “EHI” and its closing market price is available in most newspapers under the NYSE listings. The daily NAV is available on-line under the symbol “XEHIX” 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.lmcef.com. (click on the name of the Fund).

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 Global High Income 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,

Western Asset Management Company

June 20, 2017

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


Western Asset Global High Income Fund Inc. 2017 Annual Report		5

Fund overview (cont’d)

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 such as credit risk, inflation risk, call risk and interest rate risk. An investment in the Fund is subject to investment risk, including the possible loss of the entire principal amount that you invest. As interest rates rise, bond prices fall, reducing the value of the Fund’s holdings. The Fund may use derivatives, such as options, futures contracts, swap agreements and credit default swaps, which can be illiquid, may disproportionately increase losses and have a potentially large impact on Fund performance. Investing in foreign securities is subject to certain risks not associated with domestic investing, such as currency fluctuations, and changes in political, regulatory and economic conditions. These risks are magnified in emerging or developing markets. High yield bonds, also known as “junk bonds”, involve greater credit risk (risk of default) and liquidity risk than investment grade bonds. Leverage may result in greater volatility of NAV and the market price of common shares and increases a shareholder’s risk of loss.

Portfolio holdings and breakdowns are as of May 31, 2017 and are subject to change and may not be representative of the portfolio managers’ current or future investments. Please refer to pages 11 through 36 for a list and percentage breakdown of the Fund’s holdings.

The mention of sector breakdowns is for informational purposes only and should not be construed as a recommendation to purchase or sell any securities. The information provided regarding such sectors is not a sufficient basis upon which to make an investment decision. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies discussed should consult their financial professional. The Fund’s top five sector holdings (as a percentage of net assets) as of May 31, 2017 were: Energy (22.7%), Sovereign Bonds (20.7%), Consumer Discretionary (19.2%), Financials (14.8%) and Materials (12.6%). The Fund’s portfolio composition is subject to change at any time.

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.

The information provided is not intended to be a forecast of future events, a guarantee of future results or investment advice. Views expressed may differ from those of the firm as a whole.


6		Western Asset Global High Income Fund Inc. 2017 Annual Report

ⁱ	The Federal Reserve Board (the “Fed”) is responsible for the formulation of U.S. policies designed to promote economic growth, full employment, stable prices, and a sustainable pattern of international trade and payments.

ⁱⁱ	The Bloomberg Barclays U.S. Aggregate Index is a broad-based bond index comprised of government, corporate, mortgage- and asset-backed issues, rated investment grade or higher, and having at least one year to maturity.

ⁱⁱⁱ	The Bloomberg Barclays U.S. Credit Index is an index composed of corporate and non-corporate debt issues that are investment grade (rated Baa3/BBB- or higher).

^iv	The Bloomberg Barclays U.S. Corporate High Yield — 2% Issuer Cap Index is an index of the 2% Issuer Cap component of the Bloomberg Barclays U.S. Corporate High Yield Index, which covers the U.S. dollar-denominated, non-investment grade, fixed-rate, taxable corporate bond market.

^v	The JPMorgan Emerging Markets Bond Index Global (“EMBI Global”) tracks total returns for U.S. dollar-denominated debt instruments issued by emerging market sovereign and quasi-sovereign entities: Brady bonds, loans, Eurobonds and local market instruments.

^vi	The yield curve is the graphical depiction of the relationship between the yield on bonds of the same credit quality but different maturities.

^vii	Duration is the measure of the price sensitivity of a fixed-income security to an interest rate change of 100 basis points. Calculation is based on the weighted average of the present values for all cash flows.

^viii

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.

^ix

Lipper, Inc., a wholly-owned subsidiary of Reuters, provides independent insight on global collective investments. Returns are based on the twelve-month period ended May 31, 2017, including the reinvestment of all distributions, including returns of capital, if any, calculated among the 34 funds in the Fund’s Lipper category.


Western Asset Global High Income Fund Inc. 2017 Annual Report		7

Fund at a glance^† (unaudited)

Investment breakdown (%) as a percent of total investments

LOGO

†

The bar graph above represents the composition of the Fund’s investments as of May 31, 2017 and May 31, 2016 and does not include derivatives such as futures contracts and forward foreign currency contracts. The Fund is actively managed. As a result, the composition of the Fund’s investments is subject to change at any time.

‡	Represents less than 0.1%.

*	Effective August 31, 2016, the Financials sector was redefined to exclude real estate and a Real Estate sector was created.


8		Western Asset Global High Income Fund Inc. 2017 Annual Report

Spread duration (unaudited)

Economic exposure — May 31, 2017

LOGO


Total Spread Duration
EHI		— 4.75 years
Benchmark		— 5.53 years

Spread duration measures the sensitivity to changes in spreads. The spread over Treasuries is the annual risk-premium demanded by investors to hold non-Treasury securities. Spread duration is quantified as the % change in price resulting from a 100 basis points change in spreads. For a security with positive spread duration, an increase in spreads would result in a price decline and a decline in spreads would result in a price increase. This chart highlights the market sector exposure of the Fund’s sectors relative to the selected benchmark sectors as of the end of the reporting period.


ABS		— Asset-Backed Securities
Benchmark		— 1/3 Bloomberg Barclays U.S. Aggregate Index, 1/3 JP Morgan Emerging Markets Bond Index Global and 1/3 Bloomberg Barclays U.S. Corporate High Yield — 2% Issuer Cap Index
EHI		— Western Asset Global High Income Fund Inc.
EM		— Emerging Markets
HY		— High Yield
IG Credit		— Investment Grade Credit
MBS		— Mortgage-Backed Securities


Western Asset Global High Income Fund Inc. 2017 Annual Report		9

Effective duration (unaudited)

Interest rate exposure — May 31, 2017

LOGO


Total Effective Duration
EHI		— 4.99 years
Benchmark		— 5.54 years

Effective duration measures the sensitivity to changes in relevant interest rates. Effective duration is quantified as the % change in price resulting from a 100 basis points change in interest rates. For a security with positive effective duration, an increase in interest rates would result in a price decline and a decline in interest rates would result in a price increase. This chart highlights the interest rate exposure of the Fund’s sectors relative to the selected benchmark sectors as of the end of the reporting period.


ABS		— Asset-Backed Securities
Benchmark		— 1/3 Bloomberg Barclays U.S. Aggregate Index, 1/3 JP Morgan Emerging Markets Bond Index Global and 1/3 Bloomberg Barclays U.S. Corporate High Yield — 2% Issuer Cap Index
EHI		— Western Asset Global High Income Fund Inc.
EM		— Emerging Markets
HY		— High Yield
IG Credit		— Investment Grade Credit
MBS		— Mortgage-Backed Securities


10		Western Asset Global High Income Fund Inc. 2017 Annual Report

Schedule of investments

May 31, 2017

Western Asset Global High Income Fund Inc.


Security‡	Rate			Maturity Date		Face Amount†			Value
Corporate Bonds & Notes — 103.1%
Consumer Discretionary — 17.9%
Auto Components — 1.4%
Adient Global Holdings Ltd., Senior Notes		4.875	%		8/15/26		3,670,000		$	3,700,967	^(a)
IHO Verwaltungs GmbH, Senior Secured Bonds (4.750% Cash or 5.500% PIK)		4.750	%		9/15/26		1,240,000			1,255,500	^(a)(b)
ZF North America Capital Inc., Senior Notes		4.750	%		4/29/25		1,930,000			2,038,563	^(a)
Total Auto Components										6,995,030
Diversified Consumer Services — 1.0%
Co-operative Group Holdings 2011 Ltd., Senior Notes		6.875	%		7/8/20		100,000	^GBP		147,541	^(c)
Prime Security Services Borrower LLC/Prime Finance Inc., Secured Notes		9.250	%		5/15/23		3,510,000			3,846,398	^(a)
Service Corp. International, Senior Notes		7.625	%		10/1/18		185,000			199,106
Service Corp. International, Senior Notes		7.500	%		4/1/27		770,000			906,675
Total Diversified Consumer Services										5,099,720
Hotels, Restaurants & Leisure — 5.1%
Aramark Services Inc., Senior Notes		5.000	%		4/1/25		1,100,000			1,157,750	^(a)
Bossier Casino Venture Holdco Inc., Senior Secured Bonds (14.000% PIK)		14.000	%		2/9/18		1,153,174			1,153,174	^(a)(b)(d)(e)
Brinker International Inc., Senior Notes		5.000	%		10/1/24		2,270,000			2,295,537	^(a)
Carrols Restaurant Group Inc., Secured Notes		8.000	%		5/1/22		730,000			783,838
CCM Merger Inc., Senior Notes		6.000	%		3/15/22		1,272,000			1,316,520	^(a)
CEC Entertainment Inc., Senior Notes		8.000	%		2/15/22		570,000			601,350
EI Group PLC, Senior Secured Bonds		6.500	%		12/6/18		1,589,000	^GBP		2,207,637
GLP Capital LP/GLP Financing II Inc., Senior Notes		5.375	%		4/15/26		850,000			922,250
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp., Senior Notes		4.625	%		4/1/25		2,060,000			2,137,250	^(a)
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp., Senior Notes		4.875	%		4/1/27		1,420,000			1,473,250	^(a)
Jack Ohio Finance LLC/Jack Ohio Finance 1 Corp., Senior Secured Notes		6.750	%		11/15/21		1,610,000			1,672,387	^(a)
Mohegan Tribal Gaming Authority, Senior Notes		7.875	%		10/15/24		1,130,000			1,170,963	^(a)
Scientific Games International Inc., Senior Notes		10.000	%		12/1/22		670,000			731,975
Scientific Games International Inc., Senior Secured Notes		7.000	%		1/1/22		1,440,000			1,540,800	^(a)
Silversea Cruise Finance Ltd., Senior Secured Notes		7.250	%		2/1/25		1,485,000			1,593,628	^(a)
Sugarhouse HSP Gaming Prop Mezz LP/Sugarhouse HSP Gaming Finance Corp., Senior Secured Notes		5.875	%		5/15/25		1,760,000			1,740,200	^(a)
Viking Cruises Ltd., Senior Notes		8.500	%		10/15/22		3,670,000			3,858,087	^(a)
Total Hotels, Restaurants & Leisure										26,356,596
Household Durables — 0.5%
Century Communities Inc., Senior Notes		5.875	%		7/15/25		1,700,000			1,704,250	^(a)

See Notes to Financial Statements.


Western Asset Global High Income Fund Inc. 2017 Annual Report		11

Schedule of investments (cont’d)

May 31, 2017

Western Asset Global High Income Fund Inc.


Security‡	Rate			Maturity Date		Face Amount†			Value
Household Durables — continued
Lennar Corp., Senior Notes		4.500	%		4/30/24		810,000		$	821,138
William Lyon Homes Inc., Senior Notes		7.000	%		8/15/22		220,000			229,350
Total Household Durables										2,754,738
Leisure Products — 0.2%
Gibson Brands Inc., Senior Secured Notes		8.875	%		8/1/18		940,000			848,350	^(a)
Media — 6.9%
AMC Entertainment Holdings Inc., Senior Notes		6.125	%		5/15/27		1,330,000			1,378,213	^(a)
Carmike Cinemas Inc., Secured Notes		6.000	%		6/15/23		780,000			832,650	^(a)
CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes		5.875	%		4/1/24		1,150,000			1,238,263	^(a)
CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes		5.750	%		2/15/26		710,000			760,588	^(a)
CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes		5.125	%		5/1/27		910,000			934,456	^(a)
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., Senior Secured Notes		4.908	%		7/23/25		3,360,000			3,652,858
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., Senior Secured Notes		6.484	%		10/23/45		570,000			684,625
DISH DBS Corp., Senior Notes		5.875	%		7/15/22		1,090,000			1,166,300
DISH DBS Corp., Senior Notes		5.875	%		11/15/24		690,000			737,438
DISH DBS Corp., Senior Notes		7.750	%		7/1/26		560,000			659,400
EW Scripps Co., Senior Notes		5.125	%		5/15/25		1,110,000			1,139,138	^(a)
Grupo Televisa SAB, Senior Bonds		6.625	%		1/15/40		20,000			23,263
iHeartCommunications Inc., Senior Notes (12.000% Cash, 2.000% PIK)		14.000	%		2/1/21		1,011,225			249,014	^(b)
Lions Gate Entertainment Corp., Senior Notes		5.875	%		11/1/24		670,000			701,825	^(a)
MDC Partners Inc., Senior Notes		6.500	%		5/1/24		890,000			901,125	^(a)
SFR Group SA, Senior Secured Bonds		6.250	%		5/15/24		2,710,000			2,855,662	^(a)
SFR Group SA, Senior Secured Notes		7.375	%		5/1/26		2,760,000			2,996,311	^(a)
Time Warner Cable LLC, Senior Notes		8.250	%		4/1/19		491,000			544,978
Time Warner Cable LLC, Senior Notes		8.750	%		2/14/19		1,307,000			1,450,902
UBM PLC, Notes		5.750	%		11/3/20		1,500,000			1,592,410	^(a)
Univision Communications Inc., Senior Secured Notes		6.750	%		9/15/22		253,000			265,334	^(a)
UPC Holding BV, Junior Secured Subordinated Notes		6.375	%		9/15/22		100,000	^EUR		117,957	^(a)
Viacom Inc., Senior Notes		3.450	%		10/4/26		3,200,000			3,101,830
Viacom Inc., Senior Notes		4.375	%		3/15/43		840,000			742,782
Virgin Media Finance PLC, Senior Notes		6.375	%		4/15/23		2,070,000			2,181,262	^(a)
Virgin Media Finance PLC, Senior Notes		6.000	%		10/15/24		1,270,000			1,343,025	^(a)
Ziggo Secured Finance BV, Senior Secured Notes		5.500	%		1/15/27		2,970,000			3,023,549	^(a)
Total Media										35,275,158

See Notes to Financial Statements.


12		Western Asset Global High Income Fund Inc. 2017 Annual Report

Western Asset Global High Income Fund Inc.


Security‡	Rate			Maturity Date		Face Amount†		Value
Multiline Retail — 0.2%
Jo-Ann Stores Holdings Inc., Senior Notes (9.750% Cash or 10.500% PIK)		9.750	%		10/15/19		680,000	$	678,300	^(a)(b)
Neiman Marcus Group LLC, Senior Secured Notes		7.125	%		6/1/28		260,000		188,825
Total Multiline Retail									867,125
Specialty Retail — 2.4%
American Greetings Corp., Senior Notes		7.875	%		2/15/25		2,180,000		2,332,600	^(a)
GameStop Corp., Senior Notes		6.750	%		3/15/21		1,330,000		1,368,237	^(a)
Guitar Center Inc., Senior Secured Bonds		6.500	%		4/15/19		2,430,000		2,104,987	^(a)
Hertz Corp., Senior Notes		5.875	%		10/15/20		910,000		859,950
Hot Topic Inc., Senior Secured Notes		9.250	%		6/15/21		610,000		622,200	^(a)
PetSmart Inc., Senior Notes		7.125	%		3/15/23		810,000		757,350	^(a)
PetSmart Inc., Senior Notes		8.875	%		6/1/25		850,000		839,375	^(a)
PetSmart Inc., Senior Secured Notes		5.875	%		6/1/25		570,000		573,563	^(a)
Sally Holdings LLC/Sally Capital Inc., Senior Notes		5.625	%		12/1/25		1,280,000		1,318,400
ServiceMaster Co., LLC, Senior Notes		5.125	%		11/15/24		1,660,000		1,725,736	^(a)
Total Specialty Retail									12,502,398
Textiles, Apparel & Luxury Goods — 0.2%
Hanesbrands Inc., Senior Notes		4.875	%		5/15/26		1,140,000		1,148,550	^(a)
Total Consumer Discretionary									91,847,665
Consumer Staples — 4.0%
Beverages — 0.6%
Carolina Beverage Group LLC/Carolina Beverage Group Finance Inc., Secured Notes		10.625	%		8/1/18		890,000		890,000	^(a)
Cott Holdings Inc., Senior Notes		5.500	%		4/1/25		1,620,000		1,662,347	^(a)
DS Services of America Inc., Secured Notes		10.000	%		9/1/21		543,000		580,331	^(a)
Total Beverages									3,132,678
Food & Staples — 0.2%
FAGE International SA/FAGE USA Dairy Industry Inc., Senior Notes		5.625	%		8/15/26		1,000,000		1,022,500	^(a)
Food & Staples Retailing — 0.2%
Beverages & More Inc., Senior Secured Notes		10.000	%		11/15/18		1,290,000		1,230,338	^(a)
Food Products — 2.4%
AdvancePierre Foods Holdings Inc., Senior Notes		5.500	%		12/15/24		1,570,000		1,772,137	^(a)
Lamb Weston Holdings Inc., Senior Notes		4.625	%		11/1/24		2,200,000		2,266,000	^(a)
Lamb Weston Holdings Inc., Senior Notes		4.875	%		11/1/26		1,280,000		1,318,400	^(a)
Marfrig Holding Europe BV, Senior Notes		6.875	%		6/24/19		410,000		422,300	^(a)
Pilgrim’s Pride Corp., Senior Notes		5.750	%		3/15/25		90,000		92,700	^(a)
Post Holdings Inc., Senior Notes		5.500	%		3/1/25		2,090,000		2,194,500	^(a)

See Notes to Financial Statements.


Western Asset Global High Income Fund Inc. 2017 Annual Report		13

Schedule of investments (cont’d)

May 31, 2017

Western Asset Global High Income Fund Inc.


Security‡	Rate			Maturity Date		Face Amount†		Value
Food Products — continued
Post Holdings Inc., Senior Notes		5.750	%		3/1/27		2,000,000	$	2,103,100	^(a)
Simmons Foods Inc., Secured Notes		7.875	%		10/1/21		1,920,000		2,049,600	^(a)
Total Food Products									12,218,737
Household Products — 0.3%
Central Garden & Pet Co., Senior Notes		6.125	%		11/15/23		510,000		548,250
Spectrum Brands Inc., Senior Notes		6.625	%		11/15/22		350,000		370,125
Spectrum Brands Inc., Senior Notes		6.125	%		12/15/24		380,000		404,700
Total Household Products									1,323,075
Tobacco — 0.3%
Alliance One International Inc., Secured Notes		9.875	%		7/15/21		1,170,000		1,025,213
Alliance One International Inc., Senior Secured Notes		8.500	%		4/15/21		720,000		752,400	^(a)
Total Tobacco									1,777,613
Total Consumer Staples									20,704,941
Energy — 21.0%
Energy Equipment & Services — 1.4%
Ensco PLC, Senior Notes		4.700	%		3/15/21		310,000		314,650
Ensco PLC, Senior Notes		5.750	%		10/1/44		340,000		243,263
KCA Deutag UK Finance PLC, Senior Secured Notes		9.875	%		4/1/22		2,130,000		2,193,900	^(a)
Pride International Inc., Senior Notes		6.875	%		8/15/20		260,000		277,875
Pride International Inc., Senior Notes		7.875	%		8/15/40		1,610,000		1,465,100
SESI LLC, Senior Notes		6.375	%		5/1/19		1,110,000		1,098,900
Sierra Hamilton LLC/Sierra Hamilton Finance Inc., Senior Secured Notes		12.250	%		12/15/18		1,030,000		157,487	*^(a)(d)(e)(f)
Transocean Inc., Senior Notes		9.000	%		7/15/23		770,000		808,500	^(a)
Trinidad Drilling Ltd., Senior Notes		6.625	%		2/15/25		450,000		448,875	^(a)
Total Energy Equipment & Services									7,008,550
Oil, Gas & Consumable Fuels — 19.6%
Anadarko Petroleum Corp., Senior Notes		6.450	%		9/15/36		50,000		59,697
Berry Petroleum Co. Escrow		—			—		580,000		0	*^(d)(e)(g)
Berry Petroleum Co. Escrow		—			—		1,384,000		0	*^(d)(e)(g)
Blue Racer Midstream LLC/Blue Racer Finance Corp., Senior Notes		6.125	%		11/15/22		1,600,000		1,652,000	^(a)
Calumet Specialty Products Partners LP/Calumet Finance Corp., Senior Secured Notes		11.500	%		1/15/21		1,640,000		1,922,900	^(a)
Cheniere Corpus Christi Holdings LLC, Senior Secured Notes		5.875	%		3/31/25		1,960,000		2,111,900
Chesapeake Energy Corp., Senior Notes		6.875	%		11/15/20		2,720,000		2,828,800
Chesapeake Energy Corp., Senior Notes		5.375	%		6/15/21		110,000		105,841

See Notes to Financial Statements.


14		Western Asset Global High Income Fund Inc. 2017 Annual Report

Western Asset Global High Income Fund Inc.


Security‡	Rate			Maturity Date		Face Amount†		Value
Oil, Gas & Consumable Fuels — continued
Chesapeake Energy Corp., Senior Notes		4.875	%		4/15/22		2,000,000	$	1,870,000
Chesapeake Energy Corp., Senior Notes		5.750	%		3/15/23		560,000		527,800
Continental Resources Inc., Senior Notes		5.000	%		9/15/22		830,000		834,150
Continental Resources Inc., Senior Notes		4.500	%		4/15/23		1,000,000		982,500
Continental Resources Inc., Senior Notes		3.800	%		6/1/24		600,000		563,640
Continental Resources Inc., Senior Notes		4.900	%		6/1/44		610,000		524,978
Covey Park Energy LLC/Covey Park Finance Corp., Senior Notes		7.500	%		5/15/25		1,340,000		1,376,850	^(a)
Devon Energy Corp., Debentures		7.950	%		4/15/32		230,000		306,535
Ecopetrol SA, Senior Bonds		4.125	%		1/16/25		30,000		29,475
Ecopetrol SA, Senior Notes		7.625	%		7/23/19		1,260,000		1,397,340
Ecopetrol SA, Senior Notes		5.875	%		9/18/23		262,000		287,257
Ecopetrol SA, Senior Notes		5.875	%		5/28/45		1,820,000		1,689,688
El Paso Natural Gas Co., Bonds		8.375	%		6/15/32		70,000		90,865
Energy Transfer Equity LP, Senior Notes		7.500	%		10/15/20		130,000		145,925
Enterprise Products Operating LLC, Senior Bonds		6.300	%		9/15/17		550,000		557,288
Exterran Energy Solutions LP/EES Finance Corp., Senior Notes		8.125	%		5/1/25		1,300,000		1,352,000	^(a)
Gazprom OAO Via Gaz Capital SA, Loan Participation Notes, Senior Notes		6.510	%		3/7/22		1,920,000		2,150,058	^(a)
Genesis Energy LP/Genesis Energy Finance Corp., Senior Notes		6.750	%		8/1/22		610,000		632,113
Holly Energy Partners LP/Holly Energy Finance Corp., Senior Notes		6.000	%		8/1/24		550,000		583,688	^(a)
Kerr-McGee Corp., Notes		6.950	%		7/1/24		920,000		1,097,052
Kinder Morgan Inc., Medium-Term Notes		7.750	%		1/15/32		1,390,000		1,791,421
LUKOIL International Finance BV, Bonds		6.356	%		6/7/17		912,000		913,039	^(a)
LUKOIL International Finance BV, Bonds		6.656	%		6/7/22		496,000		559,994	^(c)
LUKOIL International Finance BV, Senior Notes		4.563	%		4/24/23		740,000		763,709	^(a)
Magnum Hunter Resources Corp. Escrow		—			—		3,390,000		0	*^(d)(e)(g)
MEG Energy Corp., Senior Notes		6.375	%		1/30/23		2,080,000		1,794,000	^(a)
MEG Energy Corp., Senior Notes		7.000	%		3/31/24		670,000		582,900	^(a)
Murphy Oil USA Inc., Senior Notes		5.625	%		5/1/27		1,320,000		1,384,350
NGL Energy Partners LP/NGL Energy Finance Corp., Senior Notes		7.500	%		11/1/23		1,500,000		1,526,250	^(a)
NGPL PipeCo LLC, Senior Secured Notes		7.768	%		12/15/37		1,430,000		1,705,275	^(a)
Oasis Petroleum Inc., Senior Notes		7.250	%		2/1/19		1,350,000		1,350,000
Oasis Petroleum Inc., Senior Notes		6.500	%		11/1/21		1,930,000		1,968,600
Oasis Petroleum Inc., Senior Notes		6.875	%		1/15/23		790,000		800,863
ONGC Videsh Ltd., Senior Notes		4.625	%		7/15/24		570,000		606,104	^(c)

See Notes to Financial Statements.


Western Asset Global High Income Fund Inc. 2017 Annual Report		15

Schedule of investments (cont’d)

May 31, 2017

Western Asset Global High Income Fund Inc.


Security‡	Rate			Maturity Date		Face Amount†		Value
Oil, Gas & Consumable Fuels — continued
Pacific Exploration and Production Corp., Senior Secured Notes (10.000% Cash or 14.000% PIK)		10.000	%		11/2/21		1,410,000	$	1,591,537	^(b)
Petrobras Global Finance BV, Senior Notes		3.000	%		1/15/19		970,000		971,601
Petrobras Global Finance BV, Senior Notes		4.875	%		3/17/20		1,400,000		1,429,750
Petrobras Global Finance BV, Senior Notes		4.375	%		5/20/23		1,632,000		1,562,395
Petrobras Global Finance BV, Senior Notes		7.375	%		1/17/27		1,100,000		1,181,730
Petrobras Global Finance BV, Senior Notes		6.875	%		1/20/40		2,190,000		2,101,305
Petrobras Global Finance BV, Senior Notes		6.750	%		1/27/41		4,610,000		4,358,755
Petrobras Global Finance BV, Senior Notes		6.850	%		6/5/2115		970,000		865,725
Petroleos de Venezuela SA, Senior Bonds		6.000	%		5/16/24		4,375,000		1,734,687	^(c)
Petroleos Mexicanos, Senior Notes		6.875	%		8/4/26		3,535,000		3,978,642
Petroleos Mexicanos, Senior Notes		6.500	%		6/2/41		1,097,000		1,110,493
Petronas Capital Ltd., Senior Notes		5.250	%		8/12/19		1,285,000		1,368,343	^(a)
PT Pertamina Persero, Senior Notes		5.250	%		5/23/21		1,610,000		1,734,683	^(a)
PT Pertamina Persero, Senior Notes		4.300	%		5/20/23		940,000		977,505	^(a)
Rice Energy Inc., Senior Notes		7.250	%		5/1/23		2,850,000		3,060,187
Rockies Express Pipeline LLC, Senior Notes		7.500	%		7/15/38		1,020,000		1,147,500	^(a)
Rockies Express Pipeline LLC, Senior Notes		6.875	%		4/15/40		1,070,000		1,166,300	^(a)
Rosneft Finance SA, Senior Notes		7.875	%		3/13/18		1,070,000		1,115,922	^(a)
RSP Permian Inc., Senior Notes		5.250	%		1/15/25		600,000		610,500	^(a)
Sabine Pass Liquefaction LLC, Senior Secured Notes		5.750	%		5/15/24		740,000		830,041
Sabine Pass Liquefaction LLC, Senior Secured Notes		5.000	%		3/15/27		290,000		310,465
Sanchez Energy Corp., Senior Notes		7.750	%		6/15/21		1,710,000		1,620,225
Sanchez Energy Corp., Senior Notes		6.125	%		1/15/23		3,880,000		3,433,800
Shelf Drilling Holdings Ltd., Secured Notes		9.500	%		11/2/20		922,284		924,590	^(a)
Targa Resources Partners LP/Targa Resources Partners Finance Corp., Senior Notes		5.125	%		2/1/25		1,390,000		1,443,863	^(a)
Targa Resources Partners LP/Targa Resources Partners Finance Corp., Senior Notes		5.375	%		2/1/27		1,480,000		1,550,300	^(a)
Tesoro Logistics LP/Tesoro Logistics Finance Corp., Senior Notes		6.125	%		10/15/21		220,000		230,038
Tesoro Logistics LP/Tesoro Logistics Finance Corp., Senior Notes		6.375	%		5/1/24		610,000		666,425
Tesoro Logistics LP/Tesoro Logistics Finance Corp., Senior Notes		5.250	%		1/15/25		1,400,000		1,485,750
Transcontinental Gas Pipe Line Co., LLC, Senior Notes		7.850	%		2/1/26		1,500,000		1,968,411
Transportadora de Gas del Peru SA, Senior Notes		4.250	%		4/30/28		1,500,000		1,554,375	^(a)
Ultrapar International SA, Senior Notes		5.250	%		10/6/26		500,000		502,250	^(a)
Whiting Petroleum Corp., Senior Notes		5.000	%		3/15/19		670,000		671,675
Whiting Petroleum Corp., Senior Notes		6.250	%		4/1/23		580,000		580,000
Williams Cos. Inc., Debentures		7.500	%		1/15/31		340,000		404,600
Williams Cos. Inc., Senior Notes		3.700	%		1/15/23		740,000		732,600

See Notes to Financial Statements.


16		Western Asset Global High Income Fund Inc. 2017 Annual Report

Western Asset Global High Income Fund Inc.


Security‡	Rate			Maturity Date		Face Amount†			Value
Oil, Gas & Consumable Fuels — continued
Williams Cos. Inc., Senior Notes		4.550	%		6/24/24		680,000		$	702,100
Williams Cos. Inc., Senior Notes		8.750	%		3/15/32		486,000			629,370
Williams Cos. Inc., Senior Notes		5.750	%		6/24/44		1,510,000			1,582,661
WPX Energy Inc., Senior Notes		7.500	%		8/1/20		430,000			455,800
WPX Energy Inc., Senior Notes		6.000	%		1/15/22		1,510,000			1,532,650
WPX Energy Inc., Senior Notes		8.250	%		8/1/23		230,000			253,000
YPF Sociedad Anonima, Senior Notes		8.500	%		3/23/21		820,000			924,304	^(a)
YPF Sociedad Anonima, Senior Notes		8.750	%		4/4/24		950,000			1,089,935	^(a)
YPF Sociedad Anonima, Senior Notes		8.500	%		7/28/25		920,000			1,049,076	^(a)
Total Oil, Gas & Consumable Fuels										100,622,709
Total Energy										107,631,259
Financials — 14.8%
Banks — 6.5%
Banco Bilbao Vizcaya Argentaria Colombia SA, Subordinated Notes		4.875	%		4/21/25		540,000			562,950	^(a)
Banco Nacional de Costa Rica, Senior Notes		5.875	%		4/25/21		450,000			473,175	^(a)
Bank of America Corp., Junior Subordinated Notes		6.500	%		10/23/24		1,200,000			1,329,000	^(h)(i)
Bank of America Corp., Notes		6.875	%		4/25/18		390,000			407,576
Bank of America Corp., Senior Notes		5.650	%		5/1/18		490,000			507,037
Bank of America Corp., Senior Notes		7.625	%		6/1/19		1,480,000			1,640,176
Barclays Bank PLC, Subordinated Notes		10.179	%		6/12/21		2,520,000			3,195,317	^(a)
Barclays Bank PLC, Subordinated Notes		7.625	%		11/21/22		3,430,000			3,886,619
Barclays PLC, Junior Subordinated Bonds		8.250	%		12/15/18		420,000			449,400	^(h)(i)
Barclays PLC, Subordinated Notes		4.836	%		5/9/28		350,000			359,541
BBVA Banco Continental SA, Subordinated Notes		5.250	%		9/22/29		240,000			260,400	^(a)(h)
BNP Paribas SA, Junior Subordinated Notes		7.375	%		8/19/25		1,360,000			1,496,000	^(a)(h)(i)
CIT Group Inc., Senior Notes		5.000	%		8/15/22		470,000			509,809
CIT Group Inc., Senior Notes		5.000	%		8/1/23		2,070,000			2,238,187
Citigroup Inc., Junior Subordinated Bonds		6.300	%		5/15/24		660,000			696,300	^(h)(i)
Credit Agricole SA, Junior Subordinated Notes		8.375	%		10/13/19		1,260,000			1,411,200	^(a)(h)(i)
Credit Agricole SA, Junior Subordinated Notes		8.125	%		12/23/25		2,160,000			2,503,243	^(a)(h)(i)
JPMorgan Chase & Co., Junior Subordinated Bonds		6.000	%		8/1/23		2,350,000			2,504,230	^(h)(i)
Royal Bank of Scotland Group PLC, Junior Subordinated Bonds		7.648	%		9/30/31		660,000			801,900	^(h)(i)
Royal Bank of Scotland Group PLC, Junior Subordinated Notes		8.625	%		8/15/21		760,000			834,100	^(h)(i)
Royal Bank of Scotland Group PLC, Subordinated Notes		5.125	%		5/28/24		760,000			797,886
Royal Bank of Scotland NV, Subordinated Bonds		7.750	%		5/15/23		490,000			582,835
Santander UK Group Holdings PLC, Junior Subordinated Bonds		7.375	%		6/24/22		1,240,000	^GBP		1,723,397	^(c)(h)(i)

See Notes to Financial Statements.


Western Asset Global High Income Fund Inc. 2017 Annual Report		17

Schedule of investments (cont’d)

May 31, 2017

Western Asset Global High Income Fund Inc.


Security‡	Rate			Maturity Date		Face Amount†		Value
Banks — continued
Sberbank of Russia Via SB Capital SA, Subordinated Notes		5.500	%		2/26/24		2,700,000	$	2,783,884	^(c)(h)
Shinhan Bank, Subordinated Notes		3.875	%		3/24/26		400,000		404,817	^(a)
TC Ziraat Bankasi AS, Senior Notes		5.125	%		5/3/22		1,000,000		1,003,731	^(a)
Total Banks									33,362,710
Capital Markets — 3.0%
Credit Suisse Group Funding Guernsey Ltd., Senior Notes		4.875	%		5/15/45		840,000		910,237
Donnelley Financial Solutions Inc., Senior Notes		8.250	%		10/15/24		1,580,000		1,662,950
Eagle Holding Co. II LLC, Senior Notes (7.625% Cash or 8.375% PIK)		7.625	%		5/15/22		970,000		1,003,009	^(a)(b)
Goldman Sachs Group Inc., Senior Notes		6.150	%		4/1/18		330,000		341,810
Goldman Sachs Group Inc., Senior Notes		7.500	%		2/15/19		1,430,000		1,560,007
Goldman Sachs Group Inc., Subordinated Notes		6.750	%		10/1/37		2,800,000		3,587,287
Magyar Export-Import Bank Zrt., Senior Bonds		4.000	%		1/30/20		1,830,000		1,897,622	^(a)
Morgan Stanley, Medium-Term Notes		6.625	%		4/1/18		470,000		488,757
UBS Group Funding Switzerland AG, Senior Notes		4.253	%		3/23/28		3,500,000		3,664,496	^(a)
Total Capital Markets									15,116,175
Consumer Finance — 1.3%
Ally Financial Inc., Senior Notes		8.000	%		3/15/20		129,000		147,318
American Express Co., Junior Subordinated Notes		5.200	%		11/15/19		540,000		555,525	^(h)(i)
American Express Co., Notes		7.000	%		3/19/18		260,000		270,931
FirstCash Inc., Senior Notes		5.375	%		6/1/24		1,420,000		1,457,275	^(a)
HSBC Finance Corp., Senior Notes		6.676	%		1/15/21		970,000		1,104,318
Navient Corp., Medium-Term Notes, Senior Notes		8.450	%		6/15/18		840,000		893,088
Navient Corp., Medium-Term Notes, Senior Notes		8.000	%		3/25/20		240,000		265,800
Navient Corp., Senior Notes		6.750	%		6/25/25		360,000		362,538
TMX Finance LLC/TitleMax Finance Corp., Senior Secured Notes		8.500	%		9/15/18		1,760,000		1,680,800	^(a)
Total Consumer Finance									6,737,593
Diversified Financial Services — 3.6%
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, Senior Bonds		4.250	%		7/1/20		580,000		608,943
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, Senior Bonds		4.625	%		7/1/22		640,000		686,633
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, Senior Notes		4.625	%		10/30/20		180,000		191,760
ASP AMC Merger Subordinated Inc., Senior Notes		8.000	%		5/15/25		1,510,000		1,481,688	^(a)
Banco Nacional de Comercio Exterior SNC, Senior Notes		4.375	%		10/14/25		1,340,000		1,375,242	^(a)
International Lease Finance Corp., Senior Notes		8.875	%		9/1/17		980,000		996,982
International Lease Finance Corp., Senior Notes		6.250	%		5/15/19		230,000		247,403

See Notes to Financial Statements.


18		Western Asset Global High Income Fund Inc. 2017 Annual Report

Western Asset Global High Income Fund Inc.


Security‡	Rate			Maturity Date		Face Amount†			Value
Diversified Financial Services — continued
International Lease Finance Corp., Senior Notes		8.250	%		12/15/20		2,620,000		$	3,105,069
International Lease Finance Corp., Senior Notes		5.875	%		8/15/22		580,000			659,684
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., Senior Notes		5.250	%		3/15/22		1,020,000			1,049,325	^(a)
Nationwide Building Society, Junior Subordinated Notes		6.875	%		6/20/19		1,080,000	^GBP		1,451,695	^(c)(h)(i)
Nielsen Co. (Luxembourg) Sarl, Senior Notes		5.000	%		2/1/25		1,000,000			1,022,500	^(a)
Park Aerospace Holdings Ltd., Senior Notes		5.250	%		8/15/22		1,920,000			2,022,000	^(a)
Park Aerospace Holdings Ltd., Senior Notes		5.500	%		2/15/24		3,520,000			3,715,800	^(a)
Total Diversified Financial Services										18,614,724
Insurance — 0.4%
Fidelity & Guaranty Life Holdings Inc., Senior Notes		6.375	%		4/1/21		650,000			668,688	^(a)
Galaxy Bidco Ltd., Senior Secured Notes		6.375	%		11/15/20		410,000	^GBP		545,433	^(c)
Genworth Holdings Inc., Senior Notes		4.900	%		8/15/23		680,000			559,300
Total Insurance										1,773,421
Total Financials										75,604,623
Health Care — 6.1%
Biotechnology — 0.1%
AMAG Pharmaceuticals Inc., Senior Notes		7.875	%		9/1/23		580,000			564,050	^(a)
Health Care Equipment & Supplies — 0.3%
DJO Finance LLC/DJO Finance Corp., Secured Notes		10.750	%		4/15/20		220,000			189,200
Greatbatch Ltd., Senior Notes		9.125	%		11/1/23		1,030,000			1,091,800	^(a)
Total Health Care Equipment & Supplies										1,281,000
Health Care Providers & Services— 3.5%
Centene Corp., Senior Notes		5.625	%		2/15/21		830,000			868,910
Centene Corp., Senior Notes		4.750	%		5/15/22		920,000			964,160
Centene Corp., Senior Notes		6.125	%		2/15/24		630,000			686,108
Centene Corp., Senior Notes		4.750	%		1/15/25		3,470,000			3,591,450
CHS/Community Health Systems Inc., Senior Notes		8.000	%		11/15/19		270,000			272,363
CHS/Community Health Systems Inc., Senior Secured Notes		6.250	%		3/31/23		1,420,000			1,477,510
DaVita Inc., Senior Notes		5.750	%		8/15/22		1,150,000			1,193,844
DaVita Inc., Senior Notes		5.125	%		7/15/24		1,210,000			1,233,444
DaVita Inc., Senior Notes		5.000	%		5/1/25		2,010,000			2,002,462
HCA Inc., Senior Secured Notes		5.250	%		6/15/26		820,000			892,816
Humana Inc., Senior Notes		7.200	%		6/15/18		2,000,000			2,105,784
Tenet Healthcare Corp., Secured Notes		7.500	%		1/1/22		290,000			316,426	^(a)
Tenet Healthcare Corp., Senior Notes		8.125	%		4/1/22		1,540,000			1,628,550
Universal Hospital Services Inc., Secured Notes		7.625	%		8/15/20		670,000			686,750
Total Health Care Providers & Services										17,920,577

See Notes to Financial Statements.


Western Asset Global High Income Fund Inc. 2017 Annual Report		19

Schedule of investments (cont’d)

May 31, 2017

Western Asset Global High Income Fund Inc.


Security‡	Rate			Maturity Date		Face Amount†		Value
Pharmaceuticals — 2.2%
Valeant Pharmaceuticals International Inc., Senior Notes		7.000	%		10/1/20		1,760,000	$	1,689,600	^(a)
Valeant Pharmaceuticals International Inc., Senior Notes		6.375	%		10/15/20		510,000		481,950	^(a)
Valeant Pharmaceuticals International Inc., Senior Notes		7.500	%		7/15/21		940,000		874,792	^(a)
Valeant Pharmaceuticals International Inc., Senior Notes		6.750	%		8/15/21		310,000		279,000	^(a)
Valeant Pharmaceuticals International Inc., Senior Notes		7.250	%		7/15/22		4,820,000		4,301,850	^(a)
Valeant Pharmaceuticals International Inc., Senior Notes		5.875	%		5/15/23		750,000		614,531	^(a)
Valeant Pharmaceuticals International Inc., Senior Notes		6.125	%		4/15/25		1,260,000		1,019,025	^(a)
Valeant Pharmaceuticals International Inc., Senior Secured Notes		6.500	%		3/15/22		670,000		705,041	^(a)
Valeant Pharmaceuticals International Inc., Senior Secured Notes		7.000	%		3/15/24		1,200,000		1,272,012	^(a)
Total Pharmaceuticals									11,237,801
Total Health Care									31,003,428
Industrials — 8.9%
Aerospace & Defense — 0.6%
CBC Ammo LLC/CBC FinCo Inc., Senior Notes		7.250	%		11/15/21		1,700,000		1,721,250	^(a)
LMI Aerospace Inc., Secured Notes		7.375	%		7/15/19		1,060,000		1,103,725
Total Aerospace & Defense									2,824,975
Air Freight & Logistics — 0.3%
XPO Logistics Inc., Senior Notes		6.125	%		9/1/23		1,330,000		1,408,138	^(a)
Airlines — 0.1%
American Airlines, Pass-Through Trust, Secured Notes		7.000	%		1/31/18		337,303		347,843	^(a)
Delta Air Lines Inc., Pass-Through Certificates, Secured Notes		8.021	%		8/10/22		238,047		271,671
Total Airlines									619,514
Building Products — 0.6%
GTL Trade Finance Inc., Senior Notes		7.250	%		4/16/44		1,510,000		1,481,310	^(a)
Standard Industries Inc., Senior Notes		5.125	%		2/15/21		660,000		689,700	^(a)
Standard Industries Inc., Senior Notes		5.500	%		2/15/23		980,000		1,035,125	^(a)
Total Building Products									3,206,135
Commercial Services & Supplies — 2.4%
ACCO Brands Corp., Senior Notes		5.250	%		12/15/24		1,170,000		1,210,950	^(a)
Covanta Holding Corp., Senior Notes		5.875	%		7/1/25		1,480,000		1,446,700
Garda World Security Corp., Senior Notes		7.250	%		11/15/21		590,000		598,850	^(a)
GFL Environmental Inc., Senior Notes		9.875	%		2/1/21		1,730,000		1,890,025	^(a)
Ritchie Bros. Auctioneers Inc., Senior Notes		5.375	%		1/15/25		1,530,000		1,587,375	^(a)
United Rentals North America Inc., Senior Notes		7.625	%		4/15/22		490,000		512,663
United Rentals North America Inc., Senior Notes		5.750	%		11/15/24		200,000		212,252
United Rentals North America Inc., Senior Notes		5.500	%		5/15/27		1,310,000		1,349,300
West Corp., Senior Notes		5.375	%		7/15/22		3,550,000		3,623,236	^(a)
Total Commercial Services & Supplies									12,431,351

See Notes to Financial Statements.


20		Western Asset Global High Income Fund Inc. 2017 Annual Report

Western Asset Global High Income Fund Inc.


Security‡	Rate			Maturity Date		Face Amount†			Value
Construction & Engineering — 0.4%
Brundage-Bone Concrete Pumping Inc., Senior Secured Notes		10.375	%		9/1/21		910,000		$	960,050	^(a)
Michael Baker Holdings LLC/Michael Baker Finance Corp., Senior Notes (8.875% Cash or 9.625% PIK)		8.875	%		4/15/19		305,320			303,412	^(a)(b)
Michael Baker International LLC/CDL Acquisition Co. Inc., Senior Secured Notes		8.250	%		10/15/18		950,000			957,125	^(a)
Total Construction & Engineering										2,220,587
Electrical Equipment — 0.1%
Trionista TopCo GmbH, Senior Subordinated Notes		6.875	%		4/30/21		200,000	^EUR		234,490	^(a)
Industrial Conglomerates — 0.1%
Alfa SAB de CV, Senior Notes		6.875	%		3/25/44		400,000			428,000	^(a)
Machinery — 2.2%
Allison Transmission Inc., Senior Bonds		5.000	%		10/1/24		3,420,000			3,496,950	^(a)
BlueLine Rental Finance Corp/BlueLine Rental LLC, Senior Secured Notes		9.250	%		3/15/24		2,180,000			2,283,550	^(a)
CTP Transportation Products LLC/CTP Finance Inc., Senior Secured Notes		8.250	%		12/15/19		880,000			820,600	^(a)
Park-Ohio Industries Inc., Senior Notes		6.625	%		4/15/27		1,130,000			1,181,556	^(a)
Tennant Co., Senior Notes		5.625	%		5/1/25		1,590,000			1,661,550	^(a)
Terex Corp., Senior Notes		5.625	%		2/1/25		1,840,000			1,888,300	^(a)
Total Machinery										11,332,506
Marine — 0.3%
Navios Maritime Acquisition Corp./Navios Acquisition Finance U.S. Inc., Senior Secured Notes		8.125	%		11/15/21		1,430,000			1,265,550	^(a)
Road & Rail — 0.5%
Flexi-Van Leasing Inc., Senior Notes		7.875	%		8/15/18		2,627,000			2,600,730	^(a)
Trading Companies & Distributors — 0.4%
H&E Equipment Services Inc., Senior Notes		7.000	%		9/1/22		2,020,000			2,122,414
Transportation — 0.6%
Mexico City Airport Trust, Senior Secured Bonds		5.500	%		10/31/46		1,690,000			1,712,815	^(a)
Mexico City Airport Trust, Senior Secured Notes		4.250	%		10/31/26		750,000			771,563	^(a)
Neovia Logistics Services LLC/Logistics Intermediate Finance Corp., Senior Notes (10.000% PIK)		10.000	%		4/1/20		997,091			573,327	^(a)(b)
Total Transportation										3,057,705
Transportation Infrastructure — 0.3%
Mersin Uluslararasi Liman Isletmeciligi AS, Notes		5.875	%		8/12/20		480,000			507,017	^(a)
PT Pelabuhan Indonesia II, Senior Bonds		4.250	%		5/5/25		1,240,000			1,259,542	^(a)
Total Transportation Infrastructure										1,766,559
Total Industrials										45,518,654

See Notes to Financial Statements.


Western Asset Global High Income Fund Inc. 2017 Annual Report		21

Schedule of investments (cont’d)

May 31, 2017

Western Asset Global High Income Fund Inc.


Security‡	Rate			Maturity Date		Face Amount†		Value
Information Technology — 2.5%
Communications Equipment — 0.2%
CommScope Technologies LLC, Senior Notes		5.000	%		3/15/27		1,110,000	$	1,112,775	^(a)
Electronic Equipment, Instruments & Components — 0.4%
CDW LLC/CDW Finance Corp., Senior Notes		5.000	%		9/1/25		1,280,000		1,324,800
Interface Security Systems Holdings Inc./Interface Security Systems LLC, Senior Secured Notes		9.250	%		1/15/18		440,000		433,290
Total Electronic Equipment, Instruments & Components									1,758,090
Internet Software & Services — 0.2%
Match Group Inc., Senior Notes		6.375	%		6/1/24		880,000		962,500
IT Services — 0.6%
Alliance Data Systems Corp., Senior Notes		5.375	%		8/1/22		1,920,000		1,953,600	^(a)
Compiler Finance Subordinated Inc., Senior Notes		7.000	%		5/1/21		300,000		151,500	^(a)
First Data Corp., Senior Secured Notes		5.000	%		1/15/24		1,000,000		1,039,240	^(a)
Total IT Services									3,144,340
Software — 0.1%
CDK Global Inc., Senior Notes		4.875	%		6/1/27		670,000		678,797	^(a)
Technology Hardware, Storage & Peripherals — 1.0%
Dell International LLC/EMC Corp., Senior Notes		5.875	%		6/15/21		1,620,000		1,716,188	^(a)
Dell International LLC/EMC Corp., Senior Notes		7.125	%		6/15/24		940,000		1,048,083	^(a)
Seagate HDD Cayman, Senior Bonds		4.750	%		6/1/23		410,000		421,326
Seagate HDD Cayman, Senior Bonds		4.750	%		1/1/25		1,330,000		1,329,315
Seagate HDD Cayman, Senior Bonds		4.875	%		6/1/27		630,000		617,782
Total Technology Hardware, Storage & Peripherals									5,132,694
Total Information Technology									12,789,196
Materials — 12.6%
Chemicals — 1.6%
Alpek SAB de CV, Senior Notes		4.500	%		11/20/22		617,000		637,052	^(a)
Braskem America Finance Co., Senior Notes		7.125	%		7/22/41		1,060,000		1,131,232	^(c)
Eco Services Operations LLC/Eco Finance Corp., Senior Notes		8.500	%		11/1/22		820,000		869,200	^(a)
Mexichem SAB de CV, Senior Notes		4.875	%		9/19/22		549,000		581,940	^(c)
Mexichem SAB de CV, Senior Notes		4.875	%		9/19/22		510,000		540,600	^(a)
OCP SA, Senior Notes		5.625	%		4/25/24		1,250,000		1,357,031	^(a)
OCP SA, Senior Notes		4.500	%		10/22/25		1,070,000		1,083,172	^(a)
Valvoline Inc., Senior Notes		5.500	%		7/15/24		1,650,000		1,740,750	^(a)
Total Chemicals									7,940,977
Construction Materials — 0.5%
Cementos Pacasmayo SAA, Senior Notes		4.500	%		2/8/23		580,000		593,050	^(a)
Cementos Pacasmayo SAA, Senior Notes		4.500	%		2/8/23		240,000		245,400	^(c)

See Notes to Financial Statements.


22		Western Asset Global High Income Fund Inc. 2017 Annual Report

Western Asset Global High Income Fund Inc.


Security‡	Rate			Maturity Date		Face Amount†		Value
Construction Materials — continued
Cemex Finance LLC, Senior Secured Notes		9.375	%		10/12/22		870,000	$	931,335	^(a)
Summit Materials LLC/Summit Materials Finance Corp., Senior Notes		5.125	%		6/1/25		700,000		710,500	^(a)
Total Construction Materials									2,480,285
Containers & Packaging — 2.0%
Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc., Senior Notes		7.250	%		5/15/24		800,000		876,000	^(a)
Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc., Senior Notes		6.000	%		2/15/25		2,950,000		3,082,750	^(a)
Flex Acquisition Co. Inc., Senior Notes		6.875	%		1/15/25		980,000		1,028,388	^(a)
Pactiv LLC, Senior Bonds		8.375	%		4/15/27		510,000		571,200
Pactiv LLC, Senior Notes		7.950	%		12/15/25		2,220,000		2,450,325
PaperWorks Industries Inc., Senior Secured Notes		9.500	%		8/15/19		760,000		590,900	^(a)
Reynolds Group Issuer Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) SA, Senior Secured Notes		5.125	%		7/15/23		140,000		145,775	^(a)
Suzano Austria GmbH, Senior Notes		5.750	%		7/14/26		1,515,000		1,571,055	^(a)
Suzano Trading Ltd., Senior Notes		5.875	%		1/23/21		160,000		171,600	^(c)
Total Containers & Packaging									10,487,993
Metals & Mining — 7.6%
Alcoa Nederland Holding BV, Senior Notes		6.750	%		9/30/24		890,000		965,650	^(a)
Alcoa Nederland Holding BV, Senior Notes		7.000	%		9/30/26		1,870,000		2,057,000	^(a)
Anglo American Capital PLC, Senior Notes		3.625	%		5/14/20		1,240,000		1,262,370	^(a)
Anglo American Capital PLC, Senior Notes		4.125	%		4/15/21		520,000		537,628	^(a)
Anglo American Capital PLC, Senior Notes		4.875	%		5/14/25		1,470,000		1,531,637	^(a)
Anglo American Capital PLC, Senior Notes		4.750	%		4/10/27		200,000		207,000	^(a)
ArcelorMittal SA, Senior Notes		7.500	%		10/15/39		1,140,000		1,282,272
Coeur Mining Inc., Senior Notes		5.875	%		6/1/24		1,920,000		1,912,800	^(a)
First Quantum Minerals Ltd., Senior Notes		7.250	%		4/1/23		1,350,000		1,366,875	^(a)
First Quantum Minerals Ltd., Senior Notes		7.500	%		4/1/25		2,220,000		2,240,812	^(a)
Freeport-McMoRan Inc., Senior Notes		6.125	%		6/15/19		490,000		498,575	^(a)
Freeport-McMoRan Inc., Senior Notes		4.000	%		11/14/21		830,000		814,396
Freeport-McMoRan Inc., Senior Notes		6.875	%		2/15/23		2,380,000		2,504,950	^(a)
Freeport-McMoRan Inc., Senior Notes		3.875	%		3/15/23		680,000		635,392
Freeport-McMoRan Inc., Senior Notes		5.450	%		3/15/43		960,000		816,595
HudBay Minerals Inc., Senior Notes		7.250	%		1/15/23		880,000		924,000	^(a)
HudBay Minerals Inc., Senior Notes		7.625	%		1/15/25		2,070,000		2,234,317	^(a)
Midwest Vanadium Pty Ltd., Senior Secured Notes		11.500	%		2/15/18		1,086,308		20,368	*^(a)(f)
Mirabela Nickel Ltd., Subordinated Notes (1.000% PIK)		1.000	%		9/10/44		13,946		0	^{(a)(b)(d)(e)(g)}

See Notes to Financial Statements.


Western Asset Global High Income Fund Inc. 2017 Annual Report		23

Schedule of investments (cont’d)

May 31, 2017

Western Asset Global High Income Fund Inc.


Security‡	Rate			Maturity Date		Face Amount†		Value
Metals & Mining — continued
Novelis Corp., Senior Notes		5.875	%		9/30/26		1,180,000	$	1,224,250	^(a)
Rio Tinto Finance USA Ltd., Senior Notes		9.000	%		5/1/19		260,000		295,080
Southern Copper Corp., Senior Notes		6.750	%		4/16/40		730,000		831,813
Southern Copper Corp., Senior Notes		5.250	%		11/8/42		2,380,000		2,338,287
Steel Dynamics Inc., Senior Notes		5.000	%		12/15/26		513,000		523,260
Teck Resources Ltd., Senior Notes		3.000	%		3/1/19		420,000		426,300
Teck Resources Ltd., Senior Notes		8.000	%		6/1/21		1,160,000		1,261,500	^(a)
Teck Resources Ltd., Senior Notes		8.500	%		6/1/24		1,520,000		1,759,400	^(a)
Teck Resources Ltd., Senior Notes		6.250	%		7/15/41		460,000		483,000
Vale Overseas Ltd., Senior Notes		4.375	%		1/11/22		4,660,000		4,751,802
Vale SA, Senior Notes		5.625	%		9/11/42		3,280,000		3,107,472
Total Metals & Mining									38,814,801
Paper & Forest Products — 0.9%
Celulosa Arauco y Constitucion SA, Senior Notes		7.250	%		7/29/19		264,000		291,397
Celulosa Arauco y Constitucion SA, Senior Notes		4.750	%		1/11/22		405,000		426,603
Fibria Overseas Finance Ltd., Senior Notes		5.250	%		5/12/24		200,000		211,100
Inversiones CMPC SA, Notes		4.375	%		5/15/23		460,000		476,654	^(a)
Inversiones CMPC SA, Senior Notes		4.750	%		1/19/18		710,000		720,468	^(a)
Inversiones CMPC SA, Senior Notes		4.500	%		4/25/22		500,000		521,897	^(a)
Mercer International Inc., Senior Notes		6.500	%		2/1/24		1,860,000		1,939,050	^(a)
Total Paper & Forest Products									4,587,169
Total Materials									64,311,225
Real Estate — 1.6%
Equity Real Estate Investment Trusts (REITs) — 1.0%
CoreCivic Inc., Senior Notes		4.125	%		4/1/20		110,000		113,575
CoreCivic Inc., Senior Notes		5.000	%		10/15/22		570,000		589,950
CoreCivic Inc., Senior Notes		4.625	%		5/1/23		600,000		607,500
CTR Partnership LP/CareTrust Capital Corp., Senior Notes		5.250	%		6/1/25		1,100,000		1,116,500
GEO Group Inc., Senior Notes		6.000	%		4/15/26		710,000		738,400
MGM Growth Properties Operating Partnership LP/MGP Finance Co.-Issuer Inc., Senior Notes		4.500	%		9/1/26		930,000		934,650
MPT Operating Partnership LP/MPT Finance Corp., Senior Notes		6.375	%		3/1/24		780,000		854,100
Total Equity Real Estate Investment Trusts (REITs)									4,954,675
Real Estate Management & Development — 0.6%
Caesars Entertainment Resort Properties LLC, Senior Secured Notes		8.000	%		10/1/20		1,820,000		1,889,387
Greystar Real Estate Partners LLC, Senior Secured Notes		8.250	%		12/1/22		1,190,000		1,288,175	^(a)
Total Real Estate Management & Development									3,177,562
Total Real Estate									8,132,237

See Notes to Financial Statements.


24		Western Asset Global High Income Fund Inc. 2017 Annual Report

Western Asset Global High Income Fund Inc.


Security‡	Rate			Maturity Date		Face Amount†		Value
Telecommunication Services — 11.1%
Diversified Telecommunication Services — 5.2%
British Telecommunications PLC, Bonds		9.125	%		12/15/30		240,000	$	367,660
CenturyLink Inc., Senior Notes		7.650	%		3/15/42		3,255,000		3,088,181
Cogent Communications Group Inc., Senior Secured Notes		5.375	%		3/1/22		1,410,000		1,491,075	^(a)
Frontier Communications Corp., Senior Notes		11.000	%		9/15/25		920,000		864,800
Intelsat Jackson Holdings SA, Senior Notes		7.250	%		4/1/19		500,000		481,250
Intelsat Jackson Holdings SA, Senior Secured Notes		8.000	%		2/15/24		2,740,000		2,964,337	^(a)
Koninklijke KPN NV, Senior Notes		8.375	%		10/1/30		190,000		263,823
Level 3 Financing Inc., Senior Notes		6.125	%		1/15/21		90,000		92,138
Oi Brasil Holdings Cooperatief U.A., Senior Notes		5.750	%		2/10/22		3,700,000		1,128,500	*^(a)(f)
Oi Brasil Holdings Cooperatief U.A., Senior Notes		5.750	%		2/10/22		1,000,000		305,000	*^(c)(f)
Ooredoo International Finance Ltd., Senior Notes		4.750	%		2/16/21		620,000		665,076	^(a)
Telecom Italia Capital SA, Senior Notes		7.200	%		7/18/36		780,000		900,900
Telecom Italia SpA, Senior Notes		5.303	%		5/30/24		5,740,000		6,145,359	^(a)
Telefonica Emisiones SAU, Senior Notes		5.134	%		4/27/20		3,000,000		3,246,360
Windstream Services LLC, Senior Notes		7.750	%		10/15/20		3,930,000		3,977,907
Windstream Services LLC, Senior Notes		6.375	%		8/1/23		670,000		571,617
Total Diversified Telecommunication Services									26,553,983
Wireless Telecommunication Services — 5.9%
Altice Financing SA, Senior Secured Bonds		7.500	%		5/15/26		3,010,000		3,322,287	^(a)
America Movil SAB de CV, Senior Notes		5.625	%		11/15/17		844,000		858,787
CSC Holdings LLC, Senior Notes		10.125	%		1/15/23		380,000		443,411	^(a)
CSC Holdings LLC, Senior Notes		6.625	%		10/15/25		1,210,000		1,336,022	^(a)
CSC Holdings LLC, Senior Notes		10.875	%		10/15/25		2,400,000		2,928,000	^(a)
Sprint Capital Corp., Senior Notes		6.875	%		11/15/28		560,000		622,300
Sprint Capital Corp., Senior Notes		8.750	%		3/15/32		1,160,000		1,465,225
Sprint Communications Inc., Senior Notes		9.000	%		11/15/18		2,410,000		2,647,988	^(a)
Sprint Communications Inc., Senior Notes		7.000	%		8/15/20		1,650,000		1,827,375
Sprint Communications Inc., Senior Notes		11.500	%		11/15/21		3,455,000		4,456,950
Sprint Corp., Senior Notes		7.250	%		9/15/21		1,440,000		1,638,446
Sprint Corp., Senior Notes		7.875	%		9/15/23		2,960,000		3,426,200
Sprint Spectrum Co., LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC, Senior Secured Notes		3.360	%		9/20/21		1,940,000		1,970,904	^(a)
T-Mobile USA Inc., Senior Notes		6.000	%		3/1/23		750,000		799,650
Vimpel Communications Via VIP Finance Ireland Ltd. OJSC, Senior Notes		7.748	%		2/2/21		820,000		943,747	^(a)
VimpelCom Holdings BV, Senior Notes		7.504	%		3/1/22		450,000		520,173	^(a)

See Notes to Financial Statements.


Western Asset Global High Income Fund Inc. 2017 Annual Report		25

Schedule of investments (cont’d)

May 31, 2017

Western Asset Global High Income Fund Inc.


Security‡	Rate			Maturity Date		Face Amount†		Value
Wireless Telecommunication Services — continued
VimpelCom Holdings BV, Senior Notes		7.504	%		3/1/22		1,050,000	$	1,213,737	^(c)
Total Wireless Telecommunication Services									30,421,202
Total Telecommunication Services									56,975,185
Utilities — 2.6%
Electric Utilities — 1.4%
Comision Federal de Electricidad, Senior Notes		6.125	%		6/16/45		600,000		629,250	^(a)
FirstEnergy Corp., Notes		7.375	%		11/15/31		330,000		441,610
Majapahit Holding BV, Senior Notes		7.750	%		1/20/20		650,000		730,470	^(c)
NRG REMA LLC, Pass-Through Certificates, Senior Secured Bonds		9.681	%		7/2/26		1,410,000		1,082,175
Pampa Energia SA, Senior Notes		7.500	%		1/24/27		2,000,000		2,115,000	^(a)
Red Oak Power LLC, Secured Notes		9.200	%		11/30/29		1,840,000		1,964,200
Total Electric Utilities									6,962,705
Gas Utilities — 0.6%
Suburban Propane Partners LP/Suburban Energy Finance Corp., Senior Notes		5.875	%		3/1/27		2,190,000		2,184,525
Transportadora de Gas Internacional SA ESP, Senior Notes		5.700	%		3/20/22		950,000		979,450	^(a)
Total Gas Utilities									3,163,975
Independent Power and Renewable Electricity Producers — 0.6%
Mirant Mid Atlantic LLC, Pass-Through Certificates, Secured Bonds		10.060	%		12/30/28		3,312,601		3,055,875
Total Utilities									13,182,555
Total Corporate Bonds & Notes (Cost — $487,153,365)									527,700,968
Asset-Backed Securities — 0.0%
Finance America Net Interest Margin Trust, 2004-1 A (Cost — $110,171)		5.250	%		6/27/34		110,125		1	*^(a)(f)
Collateralized Mortgage Obligations — 0.1%
Commercial Mortgage Trust, 2015-LC21 E		3.250	%		7/10/48		500,000		281,928	^(a)
JPMBB Commercial Mortgage Securities Trust, 2015-C31 E		4.618	%		8/15/48		400,000		267,307	^(a)(h)
Wells Fargo Commercial Mortgage Trust, 2015-C28 E		3.000	%		5/15/48		400,000		231,986	^(a)
Total Collateralized Mortgage Obligations (Cost — $870,079)									781,221
Convertible Bonds & Notes — 1.0%
Energy — 0.3%
Energy Equipment & Services — 0.0%
Nabors Industries Inc., Senior Notes		0.750	%		1/15/24		130,000		107,250	^(a)
Oil, Gas & Consumable Fuels — 0.3%
Oasis Petroleum Inc., Senior Notes		2.625	%		9/15/23		1,600,000		1,751,000
Total Energy									1,858,250

See Notes to Financial Statements.


26		Western Asset Global High Income Fund Inc. 2017 Annual Report

Western Asset Global High Income Fund Inc.

Security‡

Rate

Maturity
Date

Face
Amount†

Value

Information Technology — 0.7%

Finisar Corp., Senior Notes

0.500

12/15/36

550,000

525,594

^(a)

HubSpot Inc., Senior Notes

0.250

6/1/22

80,000

80,650

^(a)

Microchip Technology Inc., Senior Subordinated Notes

1.625

2/15/27

980,000

1,085,962

^(a)

ON Semiconductor Corp., Senior Notes

1.625

10/15/23

990,000

1,029,600

^(a)

WebMD Health Corp., Notes

2.625

6/15/23

720,000

698,850

^(a)

Total Information Technology

3,420,656

Total Convertible Bonds & Notes (Cost — $5,260,880)

5,278,906

Senior Loans — 2.9%

Consumer Discretionary — 1.2%

Hotels, Restaurants & Leisure — 0.3%

Landry’s Inc., 2016 Term Loan B

—

10/4/23

1,500,000

1,502,031

^(l)

Specialty Retail — 0.8%

PetSmart Inc., Term Loan B2

4.010

3/11/22

3,914,148

3,771,446

^(j)(k)(l)

Spencer Gifts LLC, Second Lien Term Loan

9.280

6/29/22

790,000

592,500

^(e)(j)(k)

Total Specialty Retail

4,363,946

Textiles, Apparel & Luxury Goods — 0.1%

TOMS Shoes LLC, Term Loan B

6.700

10/28/20

597,800

325,801

^(e)(j)(k)

Total Consumer Discretionary

6,191,778

Energy — 0.3%

Energy Equipment & Services — 0.1%

Hercules Offshore Inc., (wind-down lender claim)

—

5/6/20

494,945

402,143

Oil, Gas & Consumable Fuels— 0.2%

Blue Ridge Mountain Resources Inc., Exit Term Loan (8.000% Cash, 8.000% PIK)

16.000

5/6/19

336,066

334,385

^{(b)(d)(e)(j)(k)}

Chesapeake Energy Corp., Term Loan

8.686

8/23/21

530,000

573,946

^(j)(k)

Total Oil, Gas & Consumable Fuels

908,331

Total Energy

1,310,474

Health Care — 0.2%

Health Care Providers & Services — 0.2%

Radnet Management Inc., Second Lien Term Loan

8.151

3/25/21

924,000

933,240

^(e)(j)(k)

Information Technology— 0.4%

IT Services — 0.4%

First Data Corp., 2017 Term Loan

—

4/26/24

2,000,000

2,013,376

^(l)

Telecommunication Services — 0.7%

Diversified Telecommunication Services — 0.7%

CenturyLink Inc., 2017 Term Loan B

—

1/31/25

3,730,000

3,725,006

^(l)

See Notes to Financial Statements.


Western Asset Global High Income Fund Inc. 2017 Annual Report		27

Schedule of investments (cont’d)

May 31, 2017

Western Asset Global High Income Fund Inc.


Security‡	Rate			Maturity Date		Face Amount†			Value
Utilities — 0.1%
Electric Utilities — 0.1%
Panda Temple Power LLC, 2015 Term Loan B		7.397	%		3/4/22		883,169		$	629,258	*^(f)(j)(k)
Total Senior Loans (Cost — $15,478,945)										14,803,132
Sovereign Bonds — 20.7%
Argentina — 5.3%
City of Buenos Aires Argentina, Senior Notes		7.500	%		6/1/27		3,280,000			3,532,002	^(a)
Provincia de Buenos Aires, Senior Notes		9.950	%		6/9/21		960,000			1,106,362	^(c)
Provincia de Buenos Aires, Senior Notes		9.125	%		3/16/24		3,600,000			4,113,000	^(a)
Provincia de Cordoba, Senior Notes		7.125	%		6/10/21		730,000			774,946	^(a)
Republic of Argentina, Bonds		22.750	%		3/5/18		21,300,000	^ARS		1,336,362
Republic of Argentina, Bonds		18.200	%		10/3/21		19,425,000	^ARS		1,301,843
Republic of Argentina, Senior Bonds		21.994	%		3/11/19		7,120,000	^ARS		445,369	^(h)
Republic of Argentina, Senior Bonds		6.875	%		4/22/21		1,450,000			1,587,025
Republic of Argentina, Senior Bonds		5.625	%		1/26/22		620,000			647,590
Republic of Argentina, Senior Bonds		7.500	%		4/22/26		4,760,000			5,262,180
Republic of Argentina, Senior Bonds		7.125	%		7/6/36		760,000			772,920
Republic of Argentina, Senior Bonds		7.625	%		4/22/46		620,000			660,610
Republic of Argentina, Senior Notes		6.875	%		1/26/27		870,000			926,550
Republic of Argentina, Senior Notes		8.280	%		12/31/33		4,192,094			4,724,489
Total Argentina										27,191,248
Armenia — 0.2%
Republic of Armenia, Senior Notes		6.000	%		9/30/20		820,000			860,910	^(c)
Brazil — 0.6%
Federative Republic of Brazil, Notes		10.000	%		1/1/23		9,277,000	^BRL		2,792,749
Federative Republic of Brazil, Senior Notes		8.000	%		1/15/18		403,111			417,503
Total Brazil										3,210,252
Colombia — 1.4%
Republic of Colombia, Senior Bonds		11.750	%		2/25/20		544,000			681,360
Republic of Colombia, Senior Bonds		7.375	%		9/18/37		4,542,000			5,854,638
Republic of Colombia, Senior Notes		7.375	%		3/18/19		753,000			828,300
Total Colombia										7,364,298
Costa Rica — 0.3%
Republic of Costa Rica, Notes		7.000	%		4/4/44		1,480,000			1,541,050	^(a)
Croatia — 0.3%
Republic of Croatia, Senior Notes		6.625	%		7/14/20		630,000			697,235	^(a)
Republic of Croatia, Senior Notes		5.500	%		4/4/23		450,000			491,401	^(c)
Republic of Croatia, Senior Notes		5.500	%		4/4/23		410,000			447,720	^(a)
Total Croatia										1,636,356

See Notes to Financial Statements.


28		Western Asset Global High Income Fund Inc. 2017 Annual Report

Western Asset Global High Income Fund Inc.


Security‡	Rate			Maturity Date		Face Amount†			Value
Dominican Republic — 0.8%
Dominican Republic, Senior Notes		5.500	%		1/27/25		120,000		$	124,500	^(a)
Dominican Republic, Senior Notes		6.850	%		1/27/45		3,630,000			3,862,284	^(a)
Total Dominican Republic										3,986,784
Ecuador — 0.7%
Republic of Ecuador, Senior Bonds		10.500	%		3/24/20		1,650,000			1,742,812	^(a)
Republic of Ecuador, Senior Bonds		10.750	%		3/28/22		890,000			957,863	^(a)
Republic of Ecuador, Senior Bonds		7.950	%		6/20/24		630,000			598,500	^(c)
Republic of Ecuador, Senior Bonds		9.650	%		12/13/26		400,000			406,000	^(a)
Total Ecuador										3,705,175
Egypt — 0.1%
Arab Republic of Egypt, Senior Notes		5.875	%		6/11/25		570,000			564,605	^(a)
Gabon — 0.0%
Gabonese Republic, Bonds		6.375	%		12/12/24		250,000			249,063	^(a)
Ghana — 0.3%
Republic of Ghana, Bonds		8.125	%		1/18/26		270,000			275,823	^(a)
Republic of Ghana, Bonds		10.750	%		10/14/30		920,000			1,149,439	^(a)
Republic of Ghana, Senior Notes		9.250	%		9/15/22		230,000			250,297	^(a)
Total Ghana										1,675,559
Guatemala — 0.2%
Republic of Guatemala, Senior Notes		4.375	%		6/5/27		1,220,000			1,207,824	^(a)
Honduras — 0.4%
Republic of Honduras, Senior Notes		7.500	%		3/15/24		400,000			447,340	^(c)
Republic of Honduras, Senior Notes		6.250	%		1/19/27		1,700,000			1,773,695	^(a)
Total Honduras										2,221,035
Hungary — 0.3%
Republic of Hungary, Senior Notes		5.750	%		11/22/23		942,000			1,076,946
Republic of Hungary, Senior Notes		5.375	%		3/25/24		300,000			338,071
Total Hungary										1,415,017
Indonesia — 1.9%
Republic of Indonesia, Senior Bonds		6.875	%		1/17/18		265,000			273,578	^(c)
Republic of Indonesia, Senior Bonds		8.375	%		3/15/34		209,000,000	^IDR		16,836
Republic of Indonesia, Senior Bonds		6.625	%		2/17/37		4,635,000			5,770,223	^(c)
Republic of Indonesia, Senior Notes		5.875	%		1/15/24		3,369,000			3,846,094	^(a)
Total Indonesia										9,906,731
Ivory Coast — 0.3%
Republic of Cote D’Ivoire, Senior Bonds		5.750	%		12/31/32		1,342,600			1,302,658	^(c)
Jamaica — 0.2%
Government of Jamaica, Senior Notes		8.000	%		3/15/39		750,000			895,868

See Notes to Financial Statements.


Western Asset Global High Income Fund Inc. 2017 Annual Report		29

Schedule of investments (cont’d)

May 31, 2017

Western Asset Global High Income Fund Inc.


Security‡	Rate			Maturity Date		Face Amount†			Value
Jordan — 0.2%
Kingdom of Jordan, Senior Notes		5.750	%		1/31/27		850,000		$	851,856	^(a)
Kenya — 0.1%
Republic of Kenya, Senior Notes		6.875	%		6/24/24		530,000			547,278	^(a)
Lithuania — 0.5%
Republic of Lithuania, Senior Notes		6.125	%		3/9/21		2,160,000			2,446,252	^(a)
Mexico — 0.0%
United Mexican States, Medium-Term Notes		6.050	%		1/11/40		124,000			144,999
Nigeria — 0.4%
Republic of Nigeria, Notes		7.875	%		2/16/32		1,800,000			1,997,847	^(a)
Pakistan — 0.1%
Republic of Pakistan, Senior Bonds		7.250	%		4/15/19		260,000			275,040	^(a)
Panama — 0.1%
Republic of Panama, Senior Bonds		6.700	%		1/26/36		460,000			596,850
Paraguay — 0.2%
Republic of Paraguay, Senior Bonds		5.000	%		4/15/26		730,000			775,625	^(a)
Peru — 1.1%
Republic of Peru, Senior Bonds		7.350	%		7/21/25		1,250,000			1,643,750
Republic of Peru, Senior Bonds		8.750	%		11/21/33		2,604,000			4,027,867
Total Peru										5,671,617
Poland — 0.4%
Republic of Poland, Senior Notes		6.375	%		7/15/19		400,000			439,019
Republic of Poland, Senior Notes		5.125	%		4/21/21		1,390,000			1,537,329
Total Poland										1,976,348
Russia — 2.0%
Russian Federal Bond, Bonds		7.050	%		1/19/28		71,630,000	^RUB		1,215,159
Russian Foreign Bond — Eurobond, Senior Bonds		12.750	%		6/24/28		42,000			74,538	^(c)
Russian Foreign Bond — Eurobond, Senior Bonds		7.500	%		3/31/30		3,076,460			3,712,118	^(c)
Russian Foreign Bond — Eurobond, Senior Bonds		5.875	%		9/16/43		4,400,000			5,148,660	^(a)
Total Russia										10,150,475
Senegal — 0.1%
Republic of Senegal, Bonds		6.250	%		7/30/24		450,000			476,656	^(c)
Sri Lanka — 0.6%
Republic of Sri Lanka, Senior Bonds		6.825	%		7/18/26		1,940,000			2,069,547	^(a)
Republic of Sri Lanka, Senior Notes		6.250	%		7/27/21		760,000			813,324	^(c)
Republic of Sri Lanka, Senior Notes		5.875	%		7/25/22		200,000			208,530	^(c)
Total Sri Lanka										3,091,401

See Notes to Financial Statements.


30		Western Asset Global High Income Fund Inc. 2017 Annual Report

Western Asset Global High Income Fund Inc.


Security‡	Rate			Maturity Date		Face Amount†		Value
Turkey — 0.9%
Republic of Turkey, Senior Bonds		5.750	%		3/22/24		260,000	$	277,910
Republic of Turkey, Senior Bonds		4.250	%		4/14/26		2,000,000		1,926,016
Republic of Turkey, Senior Bonds		11.875	%		1/15/30		575,000		925,727
Republic of Turkey, Senior Notes		4.875	%		10/9/26		1,250,000		1,247,463
Total Turkey									4,377,116
Ukraine — 0.1%
Republic of Ukraine, Senior Notes		7.750	%		9/1/20		550,000		559,999	^(a)
Venezuela — 0.6%
Bolivarian Republic of Venezuela, Senior Bonds		8.250	%		10/13/24		6,000,000		2,842,800	^(c)
Vietnam — 0.0%
Republic of Vietnam, Senior Bonds		6.750	%		1/29/20		200,000		218,347	^(c)
Total Sovereign Bonds (Cost — $96,228,870)									105,934,939
U.S. Government & Agency Obligations — 3.6%
U.S. Government Obligations — 3.6%
U.S. Treasury Notes		1.375	%		9/30/20		1,850,000		1,841,509
U.S. Treasury Notes		1.375	%		10/31/20		2,500,000		2,486,377
U.S. Treasury Notes		1.375	%		4/30/21		3,000,000		2,972,403
U.S. Treasury Notes		1.125	%		8/31/21		3,060,000		2,991,331
U.S. Treasury Notes		1.125	%		9/30/21		3,000,000		2,929,572
U.S. Treasury Notes		1.875	%		1/31/22		1,000,000		1,006,348
U.S. Treasury Notes		2.125	%		6/30/22		3,000,000		3,049,806
U.S. Treasury Notes		2.000	%		11/30/22		900,000		907,629
Total U.S. Government & Agency Obligations (Cost — $17,986,736)									18,184,975

						Shares
Common Stocks — 1.1%
Consumer Discretionary — 0.1%
Hotels, Restaurants & Leisure — 0.1%
Bossier Casino Venture Holdco Inc.							65,403		481,366	*^(d)(e)
Energy — 0.9%
Energy Equipment & Services — 0.1%
Hercules Offshore Inc. (Escrow)							37,071		10,454	*^(d)(e)
KCAD Holdings I Ltd.							77,972,021		428,846	*^(d)(e)
Total Energy Equipment & Services									439,300
Oil, Gas & Consumable Fuels— 0.8%
Berry Petroleum Co.							77,509		813,845	*^(d)(e)
Blue Ridge Mountain Resources Inc.							175,718		1,581,462	*
MWO Holdings LLC							417		69,806	*^(d)(e)

See Notes to Financial Statements.


Western Asset Global High Income Fund Inc. 2017 Annual Report		31

Schedule of investments (cont’d)

May 31, 2017

Western Asset Global High Income Fund Inc.

Security‡

Value

Oil, Gas & Consumable Fuels— continued

Pacific Exploration and Production Corp.

35,250

1,017,278

*^(d)

Pacific Exploration and Production Corp.

25,653

720,970

Total Oil, Gas & Consumable Fuels

4,203,361

Total Energy

4,642,661

Health Care — 0.1%

Health Care Providers & Services — 0.1%

Physiotherapy Associates Holdings Inc. (Escrow)

12,000

153,000

*^(d)(e)

Industrials— 0.0%

Marine — 0.0%

Tricer HoldCo, S.C.A.

43,516

128,807

*^(d)(e)

Road & Rail — 0.0%

Jack Cooper Enterprises Inc.

724

*^(a)(d)(e)(g)

Total Industrials

128,807

Materials — 0.0%

Metals & Mining — 0.0%

Mirabela Nickel Ltd.

2,829,266

*^(d)(e)(g)

Total Common Stocks (Cost — $11,502,835)

5,405,834

Rate

Convertible Preferred Stocks — 0.9%

Energy — 0.2%

Oil, Gas & Consumable Fuels — 0.2%

Berry Petroleum Co. (6.000% Cash or 6.000% PIK)

6.000

84,362

1,117,796

^(b)(e)

Berry Petroleum Co. (6.000% Cash or 6.000% PIK)

6.000

1,264

16,748

^(b)(e)(m)

Total Energy

1,134,544

Health Care — 0.7%

Pharmaceuticals — 0.7%

Allergan PLC

5.500

4,188

3,353,625

Total Convertible Preferred Stocks (Cost — $4,155,719)

4,488,169

Face
Amount†

Preferred Stocks — 0.1%

Financials — 0.0%

Diversified Financial Services — 0.0%

Citigroup Capital XIII

7.542

5,950

155,295

^(h)

Industrials — 0.1%

Marine — 0.1%

Tricer Tracking Preferred Equity Certificates

8.000

19,340,900

193,409

^(d)(e)

Total Preferred Stocks (Cost — $1,729,422)

348,704

See Notes to Financial Statements.


32		Western Asset Global High Income Fund Inc. 2017 Annual Report

Western Asset Global High Income Fund Inc.

Security‡

Expiration
Date

Warrants

Value

Warrants — 0.0%

Bolivarian Republic of Venezuela, Oil-linked payment obligations (Cost — $0)

4/15/20

9,125

55,891

Total Investments before Short-Term Investments (Cost — $640,477,022)

682,982,740

Security

Rate

Short-Term Investments — 0.0%

State Street Institutional U.S. Government Money Market Fund, Premier Class (Cost — $74,618)

0.723

74,618

74,618

Total Investments — 133.5% (Cost — $640,551,640#)

683,057,358

Liabilities in Excess of Other Assets — (33.5)%

(171,355,837

)

Total Net Assets — 100.0%

511,701,521

†	Face amount denominated in U.S. dollars, unless otherwise noted.

‡	Securities held by the Fund are subject to a lien, granted to the lenders, to the extent of the borrowing outstanding and any additional expenses.

*	Non-income producing security.

^(a)

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, unless otherwise noted.

^(b)	Payment-in-kind security for which the issuer has the option at each interest payment date of making interest payments in cash or additional debt securities.

^(c)

Security is exempt from registration under Regulation S of the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States. This security has been deemed liquid pursuant to guidelines approved by the Board of Directors, unless otherwise noted.

^(d)	Security is valued in good faith in accordance with procedures approved by the Board of Directors (See Note 1).

^(e)	Security is valued using significant unobservable inputs (See Note 1).

^(f)	The coupon payment on these securities is currently in default as of May 31, 2017.

^(g)	Value is less than $1.

^(h)	Variable rate security. Interest rate disclosed is as of the most recent information available.

⁽ⁱ⁾	Security has no maturity date. The date shown represents the next call date.

^(j)	Senior loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval from the agent bank and/or borrower prior to the disposition of a senior loan.

^(k)	Interest rates disclosed represent the effective rates on senior loans. Ranges in interest rates are attributable to multiple contracts under the same loan.

^(l)	All or a portion of this loan is unfunded as of May 31, 2017. The interest rate for fully unfunded term loans is to be determined.

^(m)	Restricted security (See Note 5).

#	Aggregate cost for federal income tax purposes is $643,630,593.

See Notes to Financial Statements.


Western Asset Global High Income Fund Inc. 2017 Annual Report		33

Schedule of investments (cont’d)

May 31, 2017

Western Asset Global High Income Fund Inc.


Abbreviations used in this schedule:
ARS		— Argentine Peso
BRL		— Brazilian Real
EUR		— Euro
GBP		— British Pound
IDR		— Indonesian Rupiah
OJSC		— Open Joint Stock Company
RUB		— Russian Ruble


Summary of Investments by Country** (unaudited)
United States	55.8	%
Argentina	4.7
Brazil	4.7
United Kingdom	4.1
Canada	3.2
Russia	2.8
Colombia	2.3
Indonesia	2.1
Mexico	2.0
Peru	1.7
France	1.6
Ireland	1.4
Luxembourg	1.4
Netherlands	1.1
Italy	1.0
Turkey	0.9
Venezuela	0.7
Switzerland	0.7
Dominican Republic	0.6
Ecuador	0.5
Hungary	0.5
Germany	0.5
Spain	0.5
Sri Lanka	0.5
Lithuania	0.4
Morocco	0.4
Chile	0.4
Honduras	0.3
Costa Rica	0.3
Nigeria	0.3
Poland	0.3

See Notes to Financial Statements.


34		Western Asset Global High Income Fund Inc. 2017 Annual Report

Western Asset Global High Income Fund Inc.


Summary of Investments by Country** (unaudited) (cont’d)
Ghana	0.2	%
Croatia	0.2
Malaysia	0.2
Ivory Coast	0.2
Guatemala	0.2
United Arab Emirates	0.1
Jamaica	0.1
Armenia	0.1
Jordan	0.1
Paraguay	0.1
Qatar	0.1
India	0.1
Panama	0.1
Egypt	0.1
Ukraine	0.1
Kenya	0.1
Senegal	0.1
South Korea	0.1
Pakistan	0.0	‡
Gabon	0.0	‡
Vietnam	0.0	‡
New Zealand	0.0	‡
Australia	0.0	‡
Cayman Islands	0.0	‡
Short-Term Investments	0.0	‡
	100.0	%

**	As a percentage of total investments. Please note that the Fund holdings are as of May 31, 2017 and are subject to change.

‡	Represents less than 0.1%.

At May 31, 2017, the Fund had the following open forward foreign currency contracts:

Currency
Purchased

Currency
Sold

Counterparty

Settlement
Date

Unrealized
Appreciation
(Depreciation)

INR

109,700,000

USD

1,625,667

JPMorgan Chase & Co.

6/15/17

71,720

SAR

14,163,000

USD

3,775,491

Bank of America N.A.

7/17/17

634

USD

3,765,754

SAR

14,163,000

Bank of America N.A.

7/17/17

(10,372)

AUD

1,999,275

USD

1,509,117

Barclays Bank PLC

7/20/17

(24,646)

EUR

8,760,000

USD

9,828,886

Barclays Bank PLC

7/20/17

36,754

USD

1,496,237

AUD

1,999,275

Barclays Bank PLC

7/20/17

11,767

USD

5,265,269

GBP

4,203,882

Barclays Bank PLC

7/20/17

(159,409)

Total

(73,552)

See Notes to Financial Statements.


Western Asset Global High Income Fund Inc. 2017 Annual Report		35

Schedule of investments (cont’d)

May 31, 2017

Western Asset Global High Income Fund Inc.


Abbreviations used in this table:
AUD		— Australian Dollar
EUR		— Euro
GBP		— British Pound
INR		— Indian Rupee
SAR		— Saudi Arabian Riyal
USD		— United States Dollar

See Notes to Financial Statements.


36		Western Asset Global High Income Fund Inc. 2017 Annual Report

Statement of assets and liabilities

May 31, 2017



Assets:
Investments, at value (Cost — $640,551,640)	$	683,057,358
Foreign currency, at value (Cost — $253,998)		253,695
Cash		186,203
Interest and dividends receivable		10,284,034
Receivable for securities sold		4,881,567
Unrealized appreciation on forward foreign currency contracts		120,875
Deposits with brokers for centrally cleared swap contracts		170
Prepaid expenses		19,576
Other receivables		31,667
*Total Assets*		*698,835,145*

Liabilities:
Loan payable (Note 6)		171,000,000
Payable for securities purchased		11,794,656
Distributions payable		3,393,162
Investment management fee payable		463,021
Unrealized depreciation on forward foreign currency contracts		194,427
Interest payable		126,291
Directors’ fees payable		9,227
Accrued expenses		152,840
*Total Liabilities*		*187,133,624*
Total Net Assets	$	511,701,521

Net Assets:
Par value ($0.001 par value; 45,242,170 shares issued and outstanding; 100,000,000 shares authorized)	$	45,242
Paid-in capital in excess of par value		635,253,881
Overdistributed net investment income		(3,560,707)
Accumulated net realized loss on investments, futures contracts, swap contracts, forward foreign currency contracts and foreign currency transactions		(162,471,419)
Net unrealized appreciation on investments, forward foreign currency contracts and foreign currencies		42,434,524
Total Net Assets	$	511,701,521

Shares Outstanding		45,242,170

Net Asset Value		$11.31

See Notes to Financial Statements.


Western Asset Global High Income Fund Inc. 2017 Annual Report		37

Statement of operations

For the Year Ended May 31, 2017



Investment Income:
Interest	$	42,473,338
Dividends		218,533
*Total Investment Income*		*42,691,871*

Expenses:
Investment management fee (Note 2)		5,262,686
Interest expense (Note 6)		2,692,435
Transfer agent fees		181,899
Legal fees		166,972
Directors’ fees		111,437
Reorganization fees (Note 8)		84,379
Audit and tax fees		77,550
Shareholder reports		44,251
Custody fees		27,799
Stock exchange listing fees		26,079
Commitment fees (Note 6)		25,028
Insurance		8,262
Fund accounting fees		16
Miscellaneous expenses		22,394
*Total Expenses*		*8,731,187*
Less: Fee waivers and/or expense reimbursements (Note 2)		(309,570)
*Net Expenses*		*8,421,617*
Net Investment Income		34,270,254

Realized and Unrealized Gain (Loss) on Investments, Futures Contracts, Swap Contracts, Forward Foreign Currency Contracts and Foreign Currency Transactions (Notes 1, 3 and 4):
Net Realized Gain (Loss) From:
Investment transactions		(1,440,153)
Futures contracts		496,555
Swap contracts		(94,245)
Forward foreign currency contracts		1,620,461
Foreign currency transactions		(83,119)
*Net Realized Gain*		*499,499*
Change in Net Unrealized Appreciation (Depreciation) From:
Investments		34,338,807
Futures contracts		(17,651)
Forward foreign currency contracts		(335,666)
Foreign currencies		837
*Change in Net Unrealized Appreciation (Depreciation)*		*33,986,327*
Net Gain on Investments, Futures Contracts, Swap Contracts, Forward Foreign Currency Contracts and Foreign Currency Transactions		34,485,826
Increase in Net Assets From Operations	$	68,756,080

See Notes to Financial Statements.


38		Western Asset Global High Income Fund Inc. 2017 Annual Report

Statements of changes in net assets


For the Years Ended May 31,	2017		2016

Operations:
Net investment income	$	34,270,254	$	30,057,931
Net realized gain (loss)		499,499		(42,597,137)
Change in net unrealized appreciation (depreciation)		33,986,327		(6,858,684)
*Increase (Decrease) in Net Assets From Operations*		*68,756,080*		*(19,397,890)*

Distributions to Shareholders From (Note 1):
Net investment income		(38,298,779)		(35,866,503)
Return of capital		(4,769,132)		—
*Decrease in Net Assets From Distributions to Shareholders*		*(43,067,911)*		*(35,866,503)*

Fund Share Transactions:
Net assets of shares issued in connection with merger (14,188,991 shares issued) (Note 8)		158,537,307		—
Cost of aggregate fractional shares repurchased (71 aggregate fractional shares repurchased) (Note 8)		(787)		—
*Increase in Net Assets From Fund Share Transactions*		*158,536,520*		—
*Increase (Decrease) in Net Assets*		*184,224,689*		*(55,264,393)*

Net Assets:
Beginning of year		327,476,832		382,741,225
End of year*	$	511,701,521	$	327,476,832
*Includes overdistributed net investment income of:		$(3,560,707)		$(177,649)

See Notes to Financial Statements.


Western Asset Global High Income Fund Inc. 2017 Annual Report		39

Statement of cash flows

For the Year Ended May 31, 2017



Increase (Decrease) in Cash:
Cash Provided (Used) by Operating Activities:
Net increase in net assets resulting from operations	$	68,756,080
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided (used) by operating activities:
Purchases of portfolio securities		(479,053,117)
Sales of portfolio securities		480,879,641
Net purchases, sales and maturities of short-term investments		1,344,415
Payment-in-kind		(984,970)
Net amortization of premium (accretion of discount)		(2,538,069)
Increase in receivable for securities sold		(2,149,725)
Decrease in interest and dividends receivable†		772,573
Decrease in prepaid expenses		2,297
Decrease in other receivables†		5,532
Decrease in deposits with brokers for open futures contracts†		131,074
Increase in deposits with brokers for centrally cleared swap contracts		(170)
Increase in payable for securities purchased†		761,946
Increase in investment management fee payable†		35,168
Increase in Directors’ fees payable		2,654
Increase in interest payable		38,869
Decrease in accrued expenses†		(197,928)
Decrease in payable to broker — variation margin on open futures contracts		(7,625)
Net realized loss on investments		1,440,153
Change in net unrealized appreciation (depreciation) of investments and forward foreign currency transactions		(34,003,141)
Net Cash Provided in Operating Activities*		*35,235,657*

Cash Flows From Financing Activities:
Distributions paid on common stock		(39,674,749)
Increase in loan payable†		5,000,000
Payment for fractional shares repurchased		(787)
Decrease in due to custodian		(1,100,225)
*Net Cash Used by Financing Activities*		*(35,775,761)*
Net Decrease in Cash		(540,104)
Cash at Beginning of Year		404,491
Cash Acquired in Connection with the Reorganization		575,511
Cash at End of Year	$	439,898

*	Included in operating expenses is cash of $2,675,768 paid for interest and commitment fees on borrowings.

†	Excludes assets and liabilities acquired in reorganization.

See Notes to Financial Statements, Note 8 for more information on the non-cash activities related to the reorganization.

See Notes to Financial Statements.


40		Western Asset Global High Income Fund Inc. 2017 Annual Report

Financial highlights


For a share of capital stock outstanding throughout each year ended May 31:
	2017¹			2016¹			2015¹			2014¹			2013¹

Net asset value, beginning of year		$10.55			$12.33			$13.59			$13.71			$12.80

Income (loss) from operations:
Net investment income		0.82			0.97			0.99			1.06			1.11
Net realized and unrealized gain (loss)		0.98			(1.59)			(1.09)			(0.02)			0.96
*Total income (loss) from operations*		*1.80*			*(0.62)*			*(0.10)*			*1.04*			*2.07*

Less distributions from:
Net investment income		(0.93)			(1.16)			(1.16)			(1.16)			(1.16)
Return of capital		(0.11)			—			—			—			—
*Total distributions*		*(1.04)*			*(1.16)*			*(1.16)*			*(1.16)*			*(1.16)*

Net asset value, end of year		$11.31			$10.55			$12.33			$13.59			$13.71

Market price, end of year		$10.23			$9.52			$10.91			$12.91			$13.30
*Total return, based on NAV^2,3*		*17.82*	%		*(4.66)*	%		*(0.66)*	%		*8.12*	%		*16.51*	%
*Total return, based on Market Price⁴*		*19.21*	%		*(1.08)*	%		*(6.76)*	%		*6.59*	%		*12.77*	%

Net assets, end of year (000s)		$511,702			$327,477			$382,741			$422,015			$425,790

Ratios to average net assets:
Gross expenses		1.89	%⁵		1.79	%⁵		1.55	%		1.53	%		1.53	%
Net expenses⁶		1.82	⁵		1.72	⁵		1.48			1.46			1.47
Net investment income		7.41			8.99			7.74			7.98			8.08

Portfolio turnover rate		78	%		71	%		40	%		40	%		40	%

Supplemental data:
Loan Outstanding, End of Year (000s)		$171,000			$120,000			$125,000			$90,000			$100,000
Asset Coverage, per $1,000 Principal Amount of Loan Outstanding⁷		$3,992			$3,729			$4,062			$5,689	⁸		$5,258	⁸
Asset Coverage Ratio for Loan Outstanding⁷		399	%		373	%		406	%		569	%		526	%
Weighted Average Loan (000s)		$156,400			$120,027			$102,205			$99,863			$100,000
Weighted Average Interest Rate on Loan		1.72	%		1.18	%		0.97	%		0.96	%		1.08	%

¹	Per share amounts have been calculated using the average shares method.

²	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.

³	The total return calculation assumes that distributions are reinvested at NAV. Past performance is no guarantee of future results.

⁴	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.

⁵

Included in the expense ratios are certain non-recurring reorganization fees that were incurred by the Fund during the period. Without these fees, the gross and net expense ratios would have been 1.87% and 1.80%, respectively, for the year ended May 31, 2017 and 1.76% and 1.69%, respectively, for the year ended May 31, 2016.

⁶	Reflects fee waivers and/or expense reimbursements.

⁷	Represents value of net assets plus the loan outstanding at the end of the period divided by the loan outstanding at the end of the period.

⁸	Added to conform to current period presentation.

See Notes to Financial Statements.


Western Asset Global High Income Fund Inc. 2017 Annual Report		41

Notes to financial statements

1. Organization and significant accounting policies

Western Asset Global High Income 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 Board of Directors authorized 100 million shares of $0.001 par value common stock. The Fund’s primary investment objective is high current income. The Fund’s secondary objective is total return. Under normal market conditions, the Fund invests in a global portfolio of securities consisting of below investment grade fixed income securities, emerging market fixed income securities and investment grade fixed income securities.

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 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. Short-term fixed income securities that will mature in 60 days or less are valued at amortized cost, unless it is determined that using this method would not reflect an investment’s fair value. Investments in open-end funds are valued at the closing net asset value per share of each fund on the day of valuation. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded. Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund will normally use the currency exchange rates as of 4:00 p.m. (Eastern Time). 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.


42		Western Asset Global High Income Fund Inc. 2017 Annual Report

The Board of Directors is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Legg Mason North Atlantic 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 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)


Western Asset Global High Income Fund Inc. 2017 Annual Report		43

Notes to financial statements (cont’d)

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

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities 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†:
Corporate bonds & notes:
Consumer discretionary		—	$	90,694,491	$	1,153,174		$	91,847,665
Energy		—		107,473,772		157,487			107,631,259
Materials		—		64,311,225		0	*		64,311,225
Other corporate bonds & notes		—		263,910,819		—			263,910,819
Asset-backed securities		—		1		—			1
Collateralized mortgage obligations		—		781,221		—			781,221
Convertible bonds & notes		—		5,278,906		—			5,278,906
Senior loans:
Consumer discretionary		—		5,273,477		918,301			6,191,778
Energy		—		976,089		334,385			1,310,474
Health care		—		—		933,240			933,240
Other senior loans		—		6,367,640		—			6,367,640
Sovereign bonds		—		105,934,939		—			105,934,939
U.S. government & agency obligations		—		18,184,975		—			18,184,975
Common stocks:
Consumer discretionary		—		—		481,366			481,366
Energy	$	2,302,432		1,017,278		1,322,951			4,642,661
Health care		—		—		153,000			153,000
Industrials		—		—		128,807			128,807
Materials		—		—		0	*		0	*
Convertible preferred stocks
Energy		—				1,134,544			1,134,544
Health care		3,353,625		—		—			3,353,625
Preferred stocks:
Financials		155,295		—		—			155,295
Industrials		—		—		193,409			193,409
Warrants		—		55,891		—			55,891
Total long-term investments		5,811,352		670,260,724		6,910,664			682,982,740
Short-term investments†		74,618		—		—			74,618
Total investments	$	5,885,970	$	670,260,724	$	6,910,664		$	683,057,358
Other financial instruments:
Forward foreign currency contracts		—		120,875		—			120,875
Total	$	5,885,970	$	670,381,599	$	6,910,664		$	683,178,233


44		Western Asset Global High Income Fund Inc. 2017 Annual Report


LIABILITIES
Description	Quoted Prices (Level 1)		Other Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Other financial instruments:
Forward foreign currency contracts		—	$	194,427		—	$	194,427

†	See Schedule of Investments for additional detailed categorizations.

*	Amount represents less than $1.

The Fund’s policy is to recognize transfers between levels as of the end of the reporting period. At May 31, 2017, securities valued at $1,581,462 were transferred from Level 2 to Level 1 within the fair value hierarchy because of the availability of a quoted price in an active market for an identical investment.

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:


	Corporate Bonds & Notes
Investments in Securities	Consumer Discretionary		Energy			Materials
Balance as of May 31, 2016	$	708,670	$	0	*	$	0	*
Accrued premiums/discounts		26,643		—			—
Realized gain (loss)¹		—		—			—
Change in unrealized appreciation (depreciation)²		(26,642)		—			(90)
Purchases		139,716		—			90
Sales		—		—			—
Acquired in connection with merger		304,787		0	*		0	*
Transfers into Level 3³		—		157,487			—
Transfers out of Level 3⁴		—		—			—
Balance as of May 31, 2017	$	1,153,174	$	157,487		$	0	*
Net change in unrealized appreciation (depreciation) for investments in securities still held at May 31, 2017²	$	(26,642)		—		$	(90)


	Senior Loans
Investments in Securities (cont’d)	Consumer Discretionary		Energy		Health Care		Utilities
Balance as of May 31, 2016	$	719,549	$	1,238,910		—	$	1,016,361
Accrued premiums/discounts		9,029		6,275		—		10,261
Realized gain (loss)¹		403		(134,509)		—		(59,583)
Change in unrealized appreciation (depreciation)²		(159,176)		312,517		—		(148,444)
Purchases		164,396		1,844,997		—		8,744
Sales		(5,650)		(3,084,381)		—		(633,057)
Acquired in connection with merger		189,750		552,719		—		434,976
Transfers into Level 3³		—		—	$	933,240		—
Transfers out of Level 3⁴		—		(402,143)		—		(629,258)
Balance as of May 31, 2017	$	918,301	$	334,385	$	933,240		—
Net change in unrealized appreciation (depreciation) for investments in securities still held at May 31, 2017²	$	(159,176)	$	(2,753)		—		—


Western Asset Global High Income Fund Inc. 2017 Annual Report		45

Notes to financial statements (cont’d)


	Common Stocks											Convertible Preferred Stocks		Preferred Stocks
Investments in Securities (cont’d)	Consumer Discretionary		Energy		Health Care		Industrials		Materials			Energy		Industrials		Total
Balance as of May 31, 2016	$	426,047		—	$	99,535	$	315,507	$	1			—		—	$	4,524,580
Accrued premiums/discounts		—		—		—		—		—			—		—		52,208
Realized gain (loss)¹		—		—		—		—		—			—		—		(193,689)
Change in unrealized appreciation (depreciation)²		(118,387)	$	(1,984,764)		10,590		1,192,976		(1)		$	348,385	$	(1,380,726)		(1,953,762)
Purchases		—		2,867,701		—		354,243		—			786,159		1,574,135		7,740,181
Sales		—		(27,818)		—		(1,928,378)		—			—		—		(5,679,284)
Acquired in connection with merger		173,706		467,832		42,875		194,459		0	*		—		—		2,361,104
Transfers into Level 3³		—		—		—		—		—			—		—		1,090,727
Transfers out of Level 3⁴		—		—		—		—		—			—		—		(1,031,401)
Balance as of May 31, 2017	$	481,366	$	1,322,951	$	153,000	$	128,807	$	0	*	$	1,134,544	$	193,409	$	6,910,664
Net change in unrealized appreciation (depreciation) for investments in securities still held at May 31, 2017²	$	(118,387)	$	(1,984,764)	$	10,590	$	(225,436)	$	(1)		$	348,385	$	(1,380,726)	$	(3,539,000)

The Fund’s policy is to recognize transfers between levels as of the end of the reporting period.

*	Amount represents less than $1.

¹	This amount is included in net realized gain (loss) from investment transactions in the accompanying Statement of Operations.

This amount is included in the change in net unrealized appreciation (depreciation) in the accompanying Statement of Operations. Change in unrealized appreciation (depreciation) includes net unrealized appreciation (depreciation) resulting from changes in investment values during the reporting period and the reversal of previously recorded unrealized appreciation (depreciation) when gains or losses are realized.

³	Transferred into Level 3 as a result of the unavailability of a quoted price in an active market for an identical investment or the unavailability of other significant observable inputs.

⁴	Transferred out of Level 3 as a result of the availability of a quoted price in an active market for an identical investment or the availability of other significant observable inputs.

(b) Repurchase agreements. The Fund may enter into repurchase agreements with institutions that its subadviser has determined are creditworthy. Each repurchase agreement is recorded at cost. Under the terms of a typical repurchase agreement, the Fund acquires a debt security subject to an obligation of the seller to repurchase, and of the Fund to resell, the security at an agreed-upon price and time, thereby determining the yield during the Fund’s holding period. When entering into repurchase agreements, it is the Fund’s policy that its custodian or a third party custodian, acting on the Fund’s behalf, take possession of the underlying collateral securities, the market value of which, at all times, at least equals the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase transaction maturity exceeds one business day, the value


46		Western Asset Global High Income Fund Inc. 2017 Annual Report

of the collateral is marked-to-market and measured against the value of the agreement in an effort to ensure the adequacy of the collateral. If the counterparty defaults, the Fund generally has the right to use the collateral to satisfy the terms of the repurchase transaction. However, if the market value of the collateral declines during the period in which the Fund seeks to assert its rights or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited.

(c) Futures contracts. The Fund uses futures contracts generally to gain exposure to, or hedge against, changes in interest rates or gain exposure to, or hedge against, changes in certain asset classes. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.

Upon entering into a futures contract, the Fund is required to deposit cash or cash equivalents with a broker in an amount equal to a certain percentage of the contract amount. This is known as the ‘‘initial margin’’ and subsequent payments (‘‘variation margin’’) are made or received by the Fund each day, depending on the daily fluctuation in the value of the contract. For certain futures, including foreign denominated futures, variation margin is not settled daily, but is recorded as a net variation margin payable or receivable. The daily changes in contract value are recorded as unrealized gains or losses in the Statement of Operations and the Fund recognizes a realized gain or loss when the contract is closed.

Futures contracts involve, to varying degrees, risk of loss in excess of the amounts reflected in the financial statements. In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid secondary market.

(d) Forward foreign currency contracts. The Fund enters into a forward foreign currency contract to hedge against foreign currency exchange rate risk on its non-U.S. dollar denominated securities or to facilitate settlement of a foreign currency denominated portfolio transaction. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price with delivery and settlement at a future date. The contract is marked-to-market daily and the change in value is recorded by the Fund as an unrealized gain or loss. When a forward foreign currency contract is closed, through either delivery or offset by entering into another forward foreign currency contract, the Fund recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value of the contract at the time it is closed.

Forward foreign currency contracts involve elements of market risk in excess of the amounts reflected on the Statement of Assets and Liabilities. The Fund bears the risk of an unfavorable change in the foreign exchange rate underlying the forward foreign currency contract. Risks may also arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts.

(e) Foreign currency translation. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the date of valuation. Purchases and sales of investment


Western Asset Global High Income Fund Inc. 2017 Annual Report		47

Notes to financial statements (cont’d)

securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the respective dates of such transactions.

The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from sales of foreign currencies, including gains and losses on forward foreign currency contracts, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the values of assets and liabilities, other than investments in securities, on the date of valuation, resulting from changes in exchange rates.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

(f) Purchased options. When the Fund purchases an option, an amount equal to the premium paid by the Fund is recorded as an investment on the Statement of Assets and Liabilities, the value of which is marked-to-market to reflect the current market value of the option purchased. If the purchased option expires, the Fund realizes a loss equal to the amount of premium paid. When an instrument is purchased or sold through the exercise of an option, the related premium paid is added to the basis of the instrument acquired or deducted from the proceeds of the instrument sold. The risk associated with purchasing put and call options is limited to the premium paid.

(g) Loan participations. The Fund may invest in loans arranged through private negotiation between one or more financial institutions. The Fund’s investment in any such loan may be in the form of a participation in or an assignment of the loan. In connection with purchasing participations, the Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement related to the loan, or any rights of off-set against the borrower and the Fund may not benefit directly from any collateral supporting the loan in which it has purchased the participation.

The Fund assumes the credit risk of the borrower, the lender that is selling the participation and any other persons interpositioned between the Fund and the borrower. In the event of the insolvency of the lender selling the participation, the Fund may be treated as a general creditor of the lender and may not benefit from any off-set between the lender and the borrower.


48		Western Asset Global High Income Fund Inc. 2017 Annual Report

(h) Unfunded loan commitments. The Fund may enter into certain credit agreements all or a portion of which may be unfunded. The Fund is obligated to fund these commitments at the borrower’s discretion. The commitments are disclosed in the accompanying Schedule of Investments. At May 31, 2017, the Fund had sufficient cash and/or securities to cover these commitments.

(i) 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 Statement of Changes in Net Assets and additional information on cash receipts and cash payments are presented in the Statement of Cash Flows.

(j) Foreign investment risks. The Fund’s investments in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies or pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Fund. Foreign investments may also subject the Fund to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which affect the market and/or credit risk of the investments.

(k) Credit and market risk. Investments in securities that are collateralized by real estate mortgages are subject to certain credit and liquidity risks. When market conditions result in an increase in default rates of the underlying mortgages and the foreclosure values of underlying real estate properties are materially below the outstanding amount of these underlying mortgages, collection of the full amount of accrued interest and principal on these investments may be doubtful. Such market conditions may significantly impair the value and liquidity of these investments and may result in a lack of correlation between their credit ratings and values.

The Fund invests in high-yield and emerging market instruments that are subject to certain credit and market risks. The yields of high-yield and emerging market debt obligations reflect, among other things, perceived credit and market risks. The Fund’s investments in securities rated below investment grade typically involve risks not associated with higher rated securities including, among others, greater risk related to timely and ultimate payment of interest and principal, greater market price volatility and less liquid secondary market trading. The consequences of political, social, economic or diplomatic changes may have disruptive effects on the market prices of investments held by the Fund. The Fund’s investments in non-U.S. dollar denominated securities may also result in foreign currency losses caused by devaluations and exchange rate fluctuations.

(l) Swap agreements. The Fund invests in swaps for the purpose of managing its exposure to interest rate, credit or market risk, or for other purposes. The use of swaps involves risks that are different from those associated with other portfolio transactions. Swap agreements are privately negotiated in the over-the-counter market and may be


Western Asset Global High Income Fund Inc. 2017 Annual Report		49

Notes to financial statements (cont’d)

entered into as a bilateral contract (“OTC Swaps”) or centrally cleared (“Centrally Cleared Swaps”). Unlike Centrally Cleared Swaps, the Fund has credit exposure to the counterparties of OTC Swaps.

In a Centrally Cleared Swap, immediately following execution of the swap, the swap agreement is submitted to a clearinghouse or central counterparty (the “CCP”) and the CCP becomes the ultimate counterparty of the swap agreement. The Fund is required to interface with the CCP through a broker, acting in an agency capacity. All payments are settled with the CCP through the broker. Upon entering into a Centrally Cleared Swap, the Fund is required to deposit initial margin with the broker in the form of cash or securities.

Swap contracts are marked-to-market daily and changes in value are recorded as unrealized appreciation (depreciation). The daily change in valuation of Centrally Cleared Swaps, if any, is recorded as a receivable or payable for variation margin on the Statement of Assets and Liabilities. Gains or losses are realized upon termination of the swap agreement. Collateral, in the form of restricted cash or securities, may be required to be held in segregated accounts with the Fund’s custodian in compliance with the terms of the swap contracts. Securities posted as collateral for swap contracts are identified in the Schedule of Investments and restricted cash, if any, is identified on the Statement of Assets and Liabilities. Risks may exceed amounts recorded in the Statement of Assets and Liabilities. These risks include changes in the returns of the underlying instruments, failure of the counterparties to perform under the contracts’ terms, and the possible lack of liquidity with respect to the swap agreements.

OTC swap payments received or made at the beginning of the measurement period are reflected as a premium or deposit, respectively, on the Statement of Assets and Liabilities. These upfront payments are amortized over the life of the swap and are recognized as realized gain or loss in the Statement of Operations. Net periodic payments received or paid by the Fund are recognized as a realized gain or loss in the Statement of Operations.

The Fund’s maximum exposure in the event of a defined credit event on a credit default swap to sell protection is the notional amount. As of May 31, 2017, the Fund did not hold any credit default swaps to sell protection.

For average notional amounts of swaps held during the period ended May 31, 2017, see Note 4

Credit default swaps

The Fund enters into credit default swap (“CDS”) contracts for investment purposes, to manage its credit risk or to add leverage. CDS agreements involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party, typically corporate or sovereign issuers, on a specified obligation, or in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising a credit index. The Fund may use a CDS to provide protection against defaults of the issuers (i.e., to reduce risk where the Fund has exposure to an issuer) or to take an active long or short position with respect to


50		Western Asset Global High Income Fund Inc. 2017 Annual Report

the likelihood of a particular issuer’s default. As a seller of protection, the Fund generally receives an upfront payment or a stream of payments throughout the term of the swap provided that there is no credit event. If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the maximum potential amount of future payments (undiscounted) that the Fund could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. These amounts of potential payments will be partially offset by any recovery of values from the respective referenced obligations. As a seller of protection, the Fund effectively adds leverage to its portfolio because, in addition to its total net assets, the Fund is subject to investment exposure on the notional amount of the swap. As a buyer of protection, the Fund generally receives an amount up to the notional value of the swap if a credit event occurs.

Implied spreads are the theoretical prices a lender receives for credit default protection. When spreads rise, market perceived credit risk rises and when spreads fall, market perceived credit risk falls. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to enter into the agreement. Wider credit spreads and decreasing market values, when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. Credit spreads utilized in determining the period end market value of credit default swap agreements on corporate or sovereign issues are disclosed in the Schedule of Investments and serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for credit derivatives. For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values, particularly in relation to the notional amount of the contract as well as the annual payment rate, serve as an indication of the current status of the payment/performance risk.

The Fund’s maximum risk of loss from counterparty risk, as the protection buyer, is the fair value of the contract (this risk is mitigated by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty). As the protection seller, the Fund’s maximum risk is the notional amount of the contract. Credit default swaps are considered to have credit risk-related contingent features since they require payment by the protection seller to the protection buyer upon the occurrence of a defined credit event.

Entering into a CDS agreement involves, to varying degrees, elements of credit, market and documentation risk in excess of the related amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreement may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreement, and that there will be unfavorable changes in net interest rates.

(m) Counterparty risk and credit-risk-related contingent features of derivative instruments. The Fund may invest in certain securities or engage in other transactions,


Western Asset Global High Income Fund Inc. 2017 Annual Report		51

Notes to financial statements (cont’d)

where the Fund is exposed to counterparty credit risk in addition to broader market risks. The Fund may invest in securities of issuers, which may also be considered counterparties as trading partners in other transactions. This may increase the risk of loss in the event of default or bankruptcy by the counterparty or if the counterparty otherwise fails to meet its contractual obligations. The Fund’s subadviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. Market events and changes in overall economic conditions may impact the assessment of such counterparty risk by the subadviser. In addition, declines in the values of underlying collateral received may expose the Fund to increased risk of loss.

The Fund has entered into master agreements with certain of its derivative counterparties that provide for general obligations, representations, agreements, collateral, events of default or termination and credit related contingent features. The credit related contingent features include, but are not limited to, a percentage decrease in the Fund’s net assets or NAV over a specified period of time. If these credit related contingent features were triggered, the derivatives counterparty could terminate the positions and demand payment or require additional collateral.

Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded derivatives. Cash collateral that has been pledged to cover obligations of the Fund under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

Absent an event of default by the counterparty or a termination of the agreement, the terms of the master agreements do not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities across transactions between the Fund and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction.

As of May 31, 2017, the Fund held forward foreign currency contracts with credit related contingent features which had a liability position of $194,427. If a contingent feature in the master agreements would have been triggered, the Fund would have been required to pay this amount to its derivatives counterparties.

(n) Security transactions and investment income. Security transactions are accounted for on a trade date basis. Interest income, adjusted for amortization of premium and accretion of discount, is recorded on the accrual basis. Paydown gains and losses on mortgage- and asset-backed securities are recorded as adjustments to interest income. Dividend income is recorded on the ex-dividend date. Foreign dividend income is recorded on the ex-dividend date or as soon as practicable after the Fund determines the existence of a dividend declaration after exercising reasonable due diligence. The cost of investments


52		Western Asset Global High Income Fund Inc. 2017 Annual Report

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.

(o) 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.

(p) Distributions to shareholders. Distributions from net investment income of the Fund, if any, are declared quarterly and paid on a monthly basis. Distributions of net realized gains, if any, are declared at least annually. Distributions to shareholders of the Fund are recorded on the ex-dividend date and are determined in accordance with income tax regulations, which may differ from GAAP.

(q) 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, 2017, 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.

Under the applicable foreign tax laws, a withholding tax may be imposed on interest, dividends and capital gains at various rates.

(r) 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. During the current year, the following reclassifications have been made:


	Overdistributed Net Investment Income		Accumulated Net Realized Loss		Paid-in Capital
(a)	$	84,379	$	4,307,290	$	(4,391,669)
(b)		726,781		(726,781)		—

^(a)	Reclassifications are due to the expiration of a capital loss carryfoward and non-deductible reorganization costs.

^(b)	Reclassifications are due to foreign currency transactions treated as ordinary income for tax purposes, differences between book and tax amortization of premium on fixed income securities and book/tax differences in the treatment of swap contracts.


Western Asset Global High Income Fund Inc. 2017 Annual Report		53

Notes to financial statements (cont’d)

2. Investment management agreement and other transactions with affiliates

Legg Mason Partners Fund Advisor, LLC (“LMPFA”) is the Fund’s investment manager. Western Asset Management Company (“Western Asset”), Western Asset Management Company Limited (“Western Asset Limited”) and Western Asset Management Company Pte. Ltd. (“Western Singapore”) are the Fund’s subadvisers. LMPFA, Western Asset, Western Asset Limited and Western Singapore are wholly-owned subsidiaries of Legg Mason, Inc. (“Legg Mason”).

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 0.85% of the Fund’s average daily net assets plus the proceeds of any outstanding borrowings. LMPFA implemented a voluntary investment management fee waiver of 0.05% beginning on March 1, 2010 and then continuing through December 31, 2017, which reduced the annual rate of that fee to 0.80%.

LMPFA delegates to Western Asset the day-to-day portfolio management of the Fund. Western Asset Limited and Western Singapore provide certain subadvisory services to the Fund relating to currency transactions and investment in non-U.S. dollar denominated securities. Western Asset Limited and Western Singapore do not receive any compensation from the Fund and are compensated by Western Asset for its services to the Fund. For its services, LMPFA pays Western Asset monthly 70% of the net management fee it receives from the Fund. In turn, Western Asset pays Western Asset Limited and Western Singapore a monthly subadvisory fee of 0.30% on assets managed by each subadviser.

During the periods in which the Fund utilizes financial leverage, the fee paid to LMPFA will be higher than if the Fund did not utilize leverage because the fees are calculated as a percentage of the Fund’s assets, including those investments purchased with leverage.

During the year ended May 31, 2017, fees waived and/or expenses reimbursed amounted to $309,570.

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

3. Investments

During the year ended May 31, 2017, the aggregate cost of purchases and proceeds from sales of investments (excluding short-term investments) and U.S. Government & Agency Obligations were as follows:


	Investments		U.S. Government & Agency Obligations
Purchases	$	348,713,191	$	130,339,926
Sales		354,622,165		126,257,476

At May 31, 2017, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were as follows:


Gross unrealized appreciation	$	58,406,699
Gross unrealized depreciation		(18,979,934)
Net unrealized appreciation	$	39,426,765


54		Western Asset Global High Income Fund Inc. 2017 Annual Report

4. Derivative instruments and hedging activities

Below is a table, grouped by derivative type, that provides information about the fair value and the location of derivatives within the Statement of Assets and Liabilities at May 31, 2017.


ASSET DERIVATIVES¹
	Foreign Exchange Risk
Forward foreign currency contracts	$	120,875


LIABILITY DERIVATIVES¹
	Foreign Exchange Risk
Forward foreign currency contracts	$	194,427

¹	Generally, the balance sheet location for asset derivatives is receivables/net unrealized appreciation (depreciation) and for liability derivatives is payables/net unrealized appreciation (depreciation).

The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the year ended May 31, 2017. The first table provides additional detail about the amounts and sources of gains (losses) realized on derivatives during the period. The second table provides additional information about the change in unrealized appreciation (depreciation) resulting from the Fund’s derivatives and hedging activities during the period.


AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED
	Interest Rate Risk		Foreign Exchange Risk		Credit Risk		Total
Purchased options¹		—	$	(201,738)		—	$	(201,738)
Futures contracts	$	496,555		—		—		496,555
Swap contracts		—		—	$	(94,245)		(94,245)
Forward foreign currency contracts		—		1,620,461		—		1,620,461
Total	$	496,555	$	1,418,723	$	(94,245)	$	1,821,033

¹	Net realized gain (loss) from purchased options is reported in net realized gain (loss) from investment transactions in the Statement of Operations.


CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED
	Interest Rate Risk		Foreign Exchange Risk		Total
Purchased options¹		—	$	152,652	$	152,652
Futures contracts	$	(17,651)		—		(17,651)
Forward foreign currency contracts		—		(335,666)		(335,666)
Total	$	(17,651)	$	(183,014)	$	(200,665)

¹	The change in unrealized appreciation (depreciation) from purchased options is reported in the change in net unrealized appreciation (depreciation) from investments in the Statement of Operations.


Western Asset Global High Income Fund Inc. 2017 Annual Report		55

Notes to financial statements (cont’d)

During the year ended May 31, 2017, the volume of derivative activity for the Fund was as follows:


	Average Market Value
Purchased options†	$	13,832
Futures contracts (to sell)†		4,743,382
Forward foreign currency contracts (to buy)		29,407,323
Forward foreign currency contracts (to sell)		39,675,995

	Average Notional Balance
Credit default swap contracts (to buy protection)†	$	173,589

†	At May 31, 2017, there were no open positions held in this derivative.

The following table presents by financial instrument, the Fund’s derivative assets net of the related collateral received by the Fund at May 31, 2017:


	Gross Amount of Derivative Assets in the Statement of Assets and Liabilities¹		Collateral Received		Net Amount
Forward foreign currency contracts	$	120,875		—	$	120,875

The following table presents by financial instrument, the Fund’s derivative liabilities net of the related collateral pledged by the Fund at May 31, 2017:


	Gross Amount of Derivative Liabilities in the Statement of Assets and Liabilities¹		Collateral Pledged		Net Amount
Forward foreign currency contracts	$	194,427		—	$	194,427

¹	Absent an event of default or early termination, derivative assets and liabilities are presented gross and not offset in the Statement of Assets and Liabilities.

5. Restricted securities

The following Fund investment is restricted as to resale.


Security	Number of Shares		Acquisition Date		Cost		Value at 5/31/2017		Value Per Share		Percent of Net Assets
Berry Petroleum Co.		1,264		2/17	$	12,640	$	16,748	$	13.25		0.00	%

6. Loan

Effective August 26, 2016, the Fund commenced a revolving credit agreement with State Street Bank and Trust Co. that allows the Fund to borrow up to an aggregate amount of $180,000,000 ($125,000,000 prior to August 26, 2016) and renews daily for a 270-day term unless notice to the contrary is given to the Fund. The Fund pays a commitment fee on the unutilized portion of the loan commitment amount at an annual rate of 0.25%. Prior to August 26, 2016, the Fund paid a commitment fee on the unutilized portion of the loan commitment amount at an annual rate of 0.25% except that the commitment fee was 0.15% in the event that the aggregate outstanding principal balance of the loan was equal to or greater than 75% of $125,000,000. The interest on the loan is calculated at a variable rate based on the LIBOR, plus any applicable margin. Securities held by the Fund are subject


56		Western Asset Global High Income Fund Inc. 2017 Annual Report

to a lien, granted to the lender, to the extent of the borrowing outstanding and any additional expenses. Prior to August 26, 2016, to the extent of the borrowing outstanding, the Fund was required to maintain collateral in a special custody account at the Fund’s custodian on behalf of State Street Bank and Trust Co. The Fund’s credit agreement contains customary covenants that, among other things, may limit the Fund’s ability to pay distributions in certain circumstances, incur additional debt, change its fundamental investment policies and engage in certain transactions, including mergers and consolidations, and require asset coverage ratios in addition to those required by the 1940 Act. In addition, the credit agreement may be subject to early termination under certain conditions and may contain other provisions that could limit the Fund’s ability to utilize borrowing under the agreement. Interest expense related to the loan for the year ended May 31, 2017 was $2,692,435. For the year ended May 31, 2017, the Fund incurred commitment fees of $25,028. At May 31, 2017, the Fund had $171,000,000 of borrowings outstanding per this credit agreement. For the year ended May 31, 2017, based on the number of days during the reporting period that the Fund had a loan balance outstanding, the average daily loan balance was $156,400,000 and the weighted average interest rate was 1.72%.

7. Distributions subsequent to May 31, 2017

The following distributions 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
5/19/2017		6/1/2017	$	0.075000
6/23/2017		7/3/2017	$	0.067500
7/21/2017		8/1/2017	$	0.067500
8/25/2017		9/1/2017	$	0.067500

8. Transfer of net assets

On August 26, 2016, the Fund acquired the assets and certain liabilities of the Western Asset Global Partners Income Fund Inc. (the “Acquired Fund”), pursuant to a plan of reorganization approved by shareholders of both the Acquired Fund and the Fund. Total shares issued by the Fund and the total net assets of the Acquired Fund and the Fund on the date of the transfer were as follows:


Acquired Fund	Shares Issued by the Fund		Total Net Assets of the Acquired Fund		Total Net Assets of the Fund
Western Asset Global Partners Income Fund Inc.		14,188,991	$	158,537,307	$	346,966,649

As part of the reorganization, for each share they held, shareholders of the Acquired Fund received 0.910322 shares of the Fund. The Fund did not issue any fractional shares to shareholders of the Acquired Fund. In lieu thereof, the Fund purchased all fractional shares at the current net asset value of the shares and remitted the cash proceeds to former shareholders of the Acquired Fund in proportion to their fractional shares


Western Asset Global High Income Fund Inc. 2017 Annual Report		57

Notes to financial statements (cont’d)

The total net assets of the Acquired Fund before acquisition included unrealized appreciation of $8,206,372, accumulated net realized loss of $53,157,460 and overdistributed net investment income of $165,693. Total net assets of the Fund immediately after the transfer were $505,503,956. The transaction was structured to qualify as a tax-free reorganization under the Internal Revenue Code of 1986, as amended.

Proforma results of operations of the combined entity for the year ended May 31, 2017, as though the acquisition had occurred as of the beginning of the year (rather than on the actual acquisition date), are as follows:


	unaudited
Net investment income	$	37,454,201
Net realized gain		305,006
Change in net unrealized appreciation/depreciation		43,380,204
Increase in net assets from operations	$	81,139,411

Because the combined investment portfolios have been managed as a single portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the Acquired Fund that have been included in the Fund’s accompanying Statement of Operations since the close of business on August 26, 2016.

9. 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 year ended May 31, 2017, the Fund did not repurchase any shares.

10. Income tax information and distributions to shareholders

The tax character of distributions paid during the fiscal years ended May 31, was as follows:


	2017		2016
Distributions paid from:
Ordinary income	$	38,298,779	$	35,866,503
Tax return of capital		4,769,132		—
Total distributions paid	$	43,067,911	$	35,866,503


58		Western Asset Global High Income Fund Inc. 2017 Annual Report

As of May 31, 2017, the components of accumulated earnings (losses) on a tax basis were as follows:


Deferred capital losses*	$	(76,192,850)
Capital loss carryforward**		(83,001,377)
Other book/tax temporary differences^(a)		(3,758,946)
Unrealized appreciation (depreciation)^(b)		39,355,571
Total accumulated earnings (losses) — net	$	(123,597,602)

These capital losses have been deferred in the current year as either short-term or long-term losses. The losses will be deemed to occur on the first day of the next taxable year in the same character as they were originally deferred and will be available to offset future taxable capital gains. These losses must be utilized before any of the Fund’s capital loss carryforward may be utilized.

**	As of May 31, 2017, the Fund had the following net capital loss carryforward remaining:


Year of Expiration	Amount
5/31/2018	$	(83,001,377	)

This amount will be available to offset any future taxable capital gains.

^(a)

Other book/tax temporary differences are attributable to the tax deferral of losses on straddles, the realization for tax purposes of unrealized gains (losses) on certain foreign currency contracts, deferral of certain late year losses for tax purposes, book/tax differences in the accrual of interest income on securities in default and book/tax differences in the timing of the deductibility of various expenses.

^(b)	The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable to the tax deferral of losses on wash sales and the difference between book and tax amortization methods for premiums on fixed income securities.

11. Recent accounting pronouncement

In October 2016, the U.S. Securities and Exchange Commission adopted new rules and amended existing rules (together, the “final rules”) intended to modernize the reporting and disclosure of information by registered investment companies. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017. Management is currently evaluating the impact that the adoption of the amendments to Regulation S-X will have on the Fund’s financial statements and related disclosures.


Western Asset Global High Income Fund Inc. 2017 Annual Report		59

Report of independent registered public accounting firm

The Board of Directors and Shareholders

Western Asset Global High Income Fund Inc.:

We have audited the accompanying statement of assets and liabilities of Western Asset Global High Income Fund Inc. (the “Fund”), including the schedule of investments, as of May 31, 2017, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of May 31, 2017, by correspondence with the custodian and brokers or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Western Asset Global High Income Fund Inc. as of May 31, 2017, the results of its operations and cash flows for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

LOGO

New York, New York

July 20, 2017


60		Western Asset Global High Income Fund Inc. 2017 Annual Report

Additional information (unaudited)

Information about Directors and Officers

The business and affairs of Western Asset Global High Income Fund Inc. (the “Fund”) are conducted by management under the supervision and subject to the direction of its Board of Directors. The business address of each Director is c/o Jane Trust, Legg Mason, 100 International Drive, 11th Floor, Baltimore, Maryland 21202. Information pertaining to the Directors and officers of the Fund is set forth below.

The Fund’s annual proxy statement includes additional information about Directors and is available, without charge, upon request by calling the Fund at 1-888-777-0102.


Independent Directors^†:

Robert D. Agdern
Year of birth		1950
Position(s) held with Fund¹		Director and Member of Nominating and Audit Committees, Class III
Term of office¹ and length of time served		Since 2015
Principal occupation(s) during past five years		Member of the Advisory Committee of the Dispute Resolution Research Center at the Kellogg Graduate School of Business, Northwestern University (2002 to 2016); formerly, Deputy General Counsel responsible for western hemisphere matters for BP PLC (1999 to 2001); formerly, Associate General Counsel at Amoco Corporation responsible for corporate, chemical, and refining and marketing matters and special assignments (1993 to 1998) (Amoco merged with British Petroleum in 1998 forming BP PLC).
Number of portfolios in fund complex overseen by Director (including the Fund)		27
Other board memberships held by Director during past five years		None

Carol L. Colman
Year of birth		1946
Position(s) held with Fund¹		Director and Member of Nominating and Audit Committees, Class I
Term of office¹ and length of time served		Since 2003
Principal occupation(s) during past five years		President, Colman Consulting Company (consulting)
Number of portfolios in fund complex overseen by Director (including the Fund)		27
Other board memberships held by Director during past five years		None

Daniel P. Cronin
Year of birth		1946
Position(s) held with Fund¹		Director and Member of Nominating and Audit Committees, Class I
Term of office¹ and length of time served		Since 2003
Principal occupation(s) during past five years		Retired; formerly, Associate General Counsel, Pfizer Inc. (prior to and including 2004)
Number of portfolios in fund complex overseen by Director (including the Fund)		27
Other board memberships held by Director during past five years		None


Western Asset Global High Income Fund Inc.		61

Additional information (unaudited) (cont’d)

Information about Directors and Officers


Independent Directors cont’d

Paolo M. Cucchi
Year of birth		1941
Position(s) held with Fund¹		Director and Member of Nominating and Audit Committees, Class I
Term of office¹ and length of time served		Since 2007
Principal occupation(s) during past five years		Emeritus Professor of French and Italian (since 2014) and formerly, Vice President and Dean of The College of Liberal Arts (1984 to 2009) and Professor of French and Italian (2009 to 2014) at Drew University
Number of portfolios in fund complex overseen by Director (including the Fund)		27
Other board memberships held by Director during past five years		None

Leslie H. Gelb
Year of birth		1937
Position(s) held with Fund¹		Director and Member of Nominating and Audit Committees, Class II
Term of office¹ and length of time served		Since 2003
Principal occupation(s) during past five years		Consultant and Lecturer; President Emeritus (since 2003); formerly, Senior Board Fellow (2003 to 2015) and President, (prior to 2003), the Council on Foreign Relations; formerly, Columnist, Deputy Editorial Page Editor and Editor, Op-Ed Page, The New York Times
Number of portfolios in fund complex overseen by Director (including the Fund)		27
Other board memberships held by Director during past five years		Director of two registered investment companies advised by Aberdeen Asset Management Asia Limited (since 1994); Trustee, Encyclopedia Brittanica; Director, Centre Partners IV and V, LP and Affiliates

William R. Hutchinson
Year of birth		1942
Position(s) held with Fund¹		Director and Member of Nominating and Audit Committees, Class II
Term of office¹ and length of time served		Since 2003
Principal occupation(s) during past five years		President, W.R. Hutchinson & Associates Inc. (Consulting) (since 2001)
Number of portfolios in fund complex overseen by Director (including the Fund)		27
Other board memberships held by Director during past five years		Director (Non-Executive Chairman of the Board (since December 1, 2009)), Associated Banc Corp. (banking) (since 1994)


62		Western Asset Global High Income Fund Inc.


Independent Directors cont’d

Eileen A. Kamerick
Year of birth		1958
Position(s) held with Fund¹		Director and Member of Nominating and Audit Committees, Class III
Term of office¹ and length of time served		Since 2013
Principal occupation(s) during past five years		National Association of Corporate Directors Board Leadership Fellow and financial expert; Adjunct Professor, Washington University in St. Louis and University of Iowa law schools (since 2007); formerly, Senior Advisor to the Chief Executive Officer and Executive Vice President and Chief Financial Officer of ConnectWise, Inc. (software and services company) (2015 to 2016); Chief Financial Officer, Press Ganey Associates (health care informatics company) (2012 to 2014); Managing Director and Chief Financial Officer, Houlihan Lokey (international investment bank) and President, Houlihan Lokey Foundation (2010 to 2012)
Number of portfolios in fund complex overseen by Director (including the Fund)		27
Other board memberships held by Director during past five years		Hochschild Mining plc (precious metals company) (since 2016); Director of Associated Banc-Corp (financial services company) (since 2007); Westell Technologies, Inc. (technology company) (2003 to 2016)

Riordan Roett
Year of birth		1938
Position(s) held with Fund¹		Director and Member of Nominating and Audit Committees, Class III
Term of office¹ and length of time served		Since 2003
Principal occupation(s) during past five years		The Sarita and Don Johnston Professor of Political Science and Director of Latin American Studies, Paul H. Nitze School of Advanced International Studies, The Johns Hopkins University (since 1973)
Number of portfolios in fund complex overseen by Director (including the Fund)		27
Other board memberships held by Director during past five years		None


Western Asset Global High Income Fund Inc.		63

Additional information (unaudited) (cont’d)

Information about Directors and Officers


Interested Director and Officer:

Jane Trust, CFA²
Year of birth		1962
Position(s) held with Fund¹		Director, Chairman, President and Chief Executive Officer, Class II
Term of office¹ and length of time served		Since 2015
Principal occupation(s) during past five years		Managing Director of Legg Mason & Co., LLC (“Legg Mason & Co.”) (since 2016); Officer and/or Trustee/Director of 154 funds associated with Legg Mason Partners Fund Advisor, LLC (“LMPFA”) or its affiliates (since 2015); President and Chief Executive Officer of LMPFA (since 2015); formerly, Senior Vice President of LMPFA (2015); Director of ClearBridge, LLC (formerly, Legg Mason Capital Management, LLC) (2007 to 2014); Managing Director of Legg Mason Investment Counsel & Trust Co. (2000 to 2007)
Number of portfolios in fund complex overseen by Director (including the Fund)		147
Other board memberships held by Director during past five years		None

Additional Officers:

Todd F. Kuehl³ Legg Mason 100 International Drive, 9th Floor, Baltimore, MD 21202
Year of birth		1969
Position(s) held with Fund¹		Chief Compliance Officer
Term of office¹ and length of time served		Since 2017
Principal occupation(s) during past five years		Managing Director of Legg Mason & Co. (since 2011); Chief Compliance Officer of certain mutual funds associated with Legg Mason & Co. or its affiliates (since 2006); formerly, Chief Compliance Officer of Legg Mason Private Portfolio Group (prior to 2010); formerly, Branch Chief, Division of Investment Management, U.S. Securities and Exchange Commission (2002 to 2006)

Jenna Bailey Legg Mason 100 First Stamford Place, 6th Floor, Stamford, CT 06902
Year of birth		1978
Position(s) held with Fund¹		Identity Theft Prevention Officer
Term of office¹ and length of time served		Since 2015
Principal occupation(s) during past five years		Identity Theft Prevention Officer of certain mutual funds associated with Legg Mason & Co. or its affiliates (since 2015); Compliance Officer of Legg Mason & Co. (since 2013); Assistant Vice President of Legg Mason & Co. (since 2011); formerly, Associate Compliance Officer of Legg Mason & Co. (2011 to 2013)


64		Western Asset Global High Income Fund Inc.


Additional Officers cont’d

Robert I. Frenkel Legg Mason 100 First Stamford Place, 6th Floor, Stamford, CT 06902
Year of birth		1954
Position(s) held with Fund¹		Secretary and Chief Legal Officer
Term of office¹ and length of time served		Since 2003
Principal occupation(s) during past five years		Vice President and Deputy General Counsel of Legg Mason (since 2006); Managing Director and General Counsel — U.S. Mutual Funds for Legg Mason & Co. (since 2006) and Legg Mason & Co. predecessors (since 1994); Secretary and Chief Legal Officer of certain mutual funds associated with Legg Mason & Co. or its affiliates (since 2006) and Legg Mason & Co. predecessors (prior to 2006)

Thomas C. Mandia Legg Mason 100 First Stamford Place, 6th Floor, Stamford, CT 06902
Year of birth		1962
Position(s) held with Fund¹		Assistant Secretary
Term of office¹ and length of time served		Since 2006
Principal occupation(s) during past five years		Managing Director and Deputy General Counsel of Legg Mason & Co. (since 2005) and Legg Mason & Co. predecessors (prior to 2005); Secretary of LMPFA (since 2006); Assistant Secretary of certain mutual funds associated with Legg Mason & Co. or its affiliates (since 2006) and Legg Mason & Co. predecessors (prior to 2006); Secretary of LM Asset Services, LLC (“LMAS”) (since 2002) and Legg Mason Fund Asset Management, Inc. (“LMFAM”) (since 2013) (formerly registered investment advisers)

Richard F. Sennett Legg Mason 100 International Drive, 7th Floor, Baltimore, MD 21202
Year of birth		1970
Position(s) held with Fund¹		Principal Financial Officer
Term of office¹ and length of time served		Since 2011
Principal occupation(s) during past five years		Principal Financial Officer and Treasurer of certain mutual funds associated with Legg Mason & Co. or its affiliates (since 2011 and since 2013); Managing Director of Legg Mason & Co. and Senior Manager of the Treasury Policy group for Legg Mason & Co.’s Global Fiduciary Platform (since 2011); Chief Accountant within the SEC’s Division of Investment Management (2007 to 2011); formerly, Assistant Chief Accountant within the SEC’s Division of Investment Management (2002 to 2007)


Western Asset Global High Income Fund Inc.		65

Additional information (unaudited) (cont’d)

Information about Directors and Officers


Additional Officers cont’d

Steven Frank Legg Mason 620 Eighth Avenue, 49th Floor, New York, NY 10018
Year of birth		1967
Position(s) held with Fund¹		Treasurer
Term of office¹ and length of time served		Since 2010
Principal occupation(s) during past five years		Director of Legg Mason & Co. (since 2015); Treasurer of certain mutual funds associated with Legg Mason & Co. or its affiliates (since 2010); formerly, Vice President of Legg Mason & Co. and Legg Mason & Co. predecessors (2002 to 2015); Controller of certain mutual funds associated with Legg Mason & Co. or its affiliates (prior to 2010)

Jeanne M. Kelly Legg Mason 620 Eighth Avenue, 49th Floor, New York, NY 10018
Year of birth		1951
Position(s) held with Fund¹		Senior Vice President
Term of office¹ and length of time served		Since 2007
Principal occupation(s) during past five years		Senior Vice President of certain mutual funds associated with Legg Mason & Co. or its affiliates (since 2007); Senior Vice President of LMPFA (since 2006); President and Chief Executive Officer of LMAS and LMFAM (since 2015); Managing Director of Legg Mason & Co. (since 2005) and Legg Mason & Co. predecessors (prior to 2005); formerly, Senior Vice President of LMFAM (2013 to 2015)

^†	Directors who are not “interested persons” of the Fund within the meaning of Section 2(a)(19) of the Investment Company Act of 1940, as amended (the “1940 Act”).

The Fund’s Board of Directors is divided into three classes: Class I, Class II and Class III. The terms of office of the Class I, II and III Directors expire at the Annual Meetings of Stockholders in the year 2017, year 2018 and year 2019, respectively, or thereafter in each case when their respective successors are duly elected and qualified. The Fund’s executive officers are chosen each year, to hold office until their successors are duly elected and qualified.

²	Ms. Trust is an “interested person” of the Fund as defined in the 1940 Act because Ms. Trust is an officer of LMPFA and certain of its affiliates.

³	Effective May 11, 2017, Mr. Kuehl became Chief Compliance Officer.


66		Western Asset Global High Income Fund Inc.

Annual chief executive officer and principal financial officer certifications (unaudited)

The Fund’s Chief Executive Officer (“CEO”) has submitted to the NYSE the required annual certification and the Fund also has included the Certifications of the Fund’s CEO and Principal Financial Officer required by Section 302 of the Sarbanes-Oxley Act in the Fund’s Form N-CSR filed with the SEC for the period of this report.


Western Asset Global High Income Fund Inc.		67

Other shareholder communications regarding accounting matters (unaudited)

The Fund’s Audit Committee has established guidelines and procedures regarding the receipt, retention and treatment of complaints regarding accounting, internal accounting controls or auditing matters (collectively, “Accounting Matters”). Persons with complaints or concerns regarding Accounting Matters may submit their complaints to the Chief Compliance Officer (“CCO”). Persons who are uncomfortable submitting complaints to the CCO, including complaints involving the CCO, may submit complaints directly to the Fund’s Audit Committee Chair. Complaints may be submitted on an anonymous basis.

The CCO may be contacted at:

Legg Mason & Co., LLC

Compliance Department

620 Eighth Avenue, 49th Floor

New York, New York 10018

Complaints may also be submitted by telephone at 1-800-742-5274. Complaints submitted through this number will be received by the CCO.


68		Western Asset Global High Income Fund Inc.

Dividend reinvestment plan (unaudited)

Unless you elect to receive distributions in cash, all distributions, on your Common Shares will be automatically reinvested by Computershare, Inc. (“Computershare), as agent for the Common Shareholders (the “Plan Agent”), in additional Common Shares under the 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 as distribution paying agent.

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

(1) If the market price of the Common Shares on the record date (or, if the record date is not a New York Stock Exchange trading day, the immediately preceding trading day) for determining shareholders eligible to receive the relevant distribution (the “determination date”) is equal to or exceeds 98% of the net asset value per share of the Common Shares, the Fund will issue new Common Shares at a price equal to the greater of (a) 98% of the net asset value per share at the close of trading on the Exchange on the determination date or (b) 95% of the market price per share of the Common Shares on the determination date.

(2) If 98% of the net asset value per share of the Common Shares exceeds the market price of the Common Shares on the determination date, the Plan Agent will receive the distribution in cash and will buy Common Shares in the open market, on the Exchange or elsewhere, for your account as soon as practicable commencing on the trading day following the determination date and terminating no later than the earlier of (a) 30 days after the distribution payment date, or (b) the record date for the next succeeding distribution to be made to the Common Shareholders; except when necessary to comply with applicable provisions of the federal securities laws. If during this period: (i) the market price rises so that it equals or exceeds 98% of the net asset value per share of the Common Shares at the close of trading on the Exchange on the determination 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 Shares in the open market and the Fund shall issue the remaining Common Shares at a price per share equal to the greater of (a) 98% of the net asset value per share at the close of trading on the Exchange on the determination date or (b) 95% of the then current market price per share.

The Plan Agent maintains all participants’ accounts in the Plan and gives written confirmation of all transactions in the accounts, including information you may need for tax records. Common Shares in your account will be held by the Plan Agent in non-certificated form. Any proxy you receive will include all Common Shares you have received under the Plan.

You may withdraw from the Plan by notifying the Plan Agent in writing at 462 South 4th Street, Suite 1600, Louisville, KY 40202 or by telephone at 1-888-888-0151. Such


Western Asset Global High Income Fund Inc.		69

Dividend reinvestment plan (unaudited) (cont’d)

withdrawal will be effective immediately if notice is received by the Plan Agent not less than ten business days prior to any distribution record date; otherwise such withdrawal will be effective as soon as practicable after the Plan Agent’s investment of the most recently declared distribution on the Common Shares. The Plan may be terminated by the Fund upon notice in writing mailed to Common Shareholders at least 30 days prior to the record date for the payment of any distribution by the Fund for which the termination is to be effective. Upon any termination, you will be sent a certificate or certificates for the full Common Shares held for you under the Plan and cash for any fractional Common Shares. You may elect to notify the Plan Agent in advance of such termination to have the Plan Agent sell part or all of your shares on your behalf. You will be charged $5.00 plus a $0.05 per Common Share service charge and the Plan Agent is authorized to deduct brokerage charges actually incurred for this transaction from the proceeds.

There is no service charge for reinvestment of your distributions in Common Shares. 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 distributions will be automatically reinvested in additional Common Shares, this allows you to add to your investment through dollar cost averaging, which may lower the average cost of your Common Shares over time.

Automatically reinvesting distributions does not mean that you do not have to pay income taxes due upon receiving distributions.

The Fund reserves the right to amend or terminate the Plan if, in the judgment of the Board of Directors, the change is warranted. There is no direct service charge to participants in the Plan; however, the Fund reserves the right to amend the Plan to include a service charge payable by the participants. Additional information about the Plan and your account may be obtained from the Plan Agent at 1-888-888-0151.

* * *

On December 15, 2016, the Fund announced that the Board of Directors has authorized changes to the Fund’s Dividend Reinvestment Plan (the “Plan”) with respect to dividend reinvestment determinations and transaction fees for Plan participants selling their shares. A copy of the revised Plan is included below.

Effective July 1, 2017, the Fund uses the dividend payment date to determine if new shares are issued or shares are purchased in the open market for Plan participants reinvesting their distributions. If on the payment date the closing market price (plus $0.03 per share commission) is at or above the net asset value (“NAV”), the Fund will issue new shares of common stock. Newly issued shares of common stock will be issued at a price equal to the greater of (a) the NAV per share on the date prior to issuance or (b) 95% of the closing market price per share. If the closing market price (plus $0.03 per share commission) is lower than the NAV per share on the payment date, the Plan Agent will receive the distribution in cash and purchase common stock in the open market. Fees paid by Plan participants to sell Fund shares did not change, with Plan participants paying a $5.00 transaction fee plus a $0.05 per share commission upon a sale of shares held pursuant to the Plan.


70		Western Asset Global High Income Fund Inc.

Revised dividend reinvestment plan:

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 Global High Income Fund Inc.		71

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.


72		Western Asset Global High Income Fund Inc.

Important tax information (unaudited)

The following information is provided with respect to the distributions paid during the taxable year ended May 31, 2017:


Record date:	6/17/2016		Monthly		Monthly
Payable date:	6/24/2016		July 2016- December 2016		January 2017- April 2017
Ordinary income:
Qualified dividend income for individuals	1.84	%	1.54	%	3.16	%
Dividends qualifying for the dividends
received deduction for corporations	1.28	%	1.06	%	1.45	%
Interest from federal obligations	0.56	%	0.56	%	1.61	%
Tax return of capital	—		—		34.00	%

The law varies in each state as to whether and what percentage of dividend income attributable to Federal obligations is exempt from state income tax. We recommend that you consult with your tax adviser to determine if any portion of the dividends you received is exempt from state income taxes.

Please retain this information for your records.


Western Asset Global High Income Fund Inc.		73

Western Asset

Global High Income Fund Inc.

Directors

Robert D. Agdern

Carol L. Colman

Daniel P. Cronin

Paolo M. Cucchi

Leslie H. Gelb

William R. Hutchinson

Eileen A. Kamerick

Riordan Roett

Jane Trust

Chairman

Officers

Jane Trust

President and

Chief Executive Officer

Richard F. Sennett

Principal Financial Officer

Todd F. Kuehl*

Chief Compliance Officer

Jenna Bailey

Identity Theft Prevention

Officer

Robert I. Frenkel

Secretary and

Chief Legal Officer

Thomas C. Mandia

Assistant Secretary

Steven Frank

Treasurer

Jeanne M. Kelly

Senior Vice President

*	Effective May 11, 2017, Mr. Kuehl became Chief Compliance Officer.

Western Asset Global High Income Fund Inc.

620 Eighth Avenue

49th Floor

New York, NY 10018

Investment manager

Legg Mason Partners Fund

Advisor, LLC

Subadvisers

Western Asset Management Company

Western Asset Management Company Limited

Western Asset Management Company Pte. Ltd.

Custodian

State Street Bank and Trust Company

1 Lincoln Street

Boston, MA 02111

Transfer agent

Computershare Inc.

462 South 4th Street, Suite 1600

Louisville, KY 40202

Independent registered public accounting firm

KPMG LLP

345 Park Avenue

New York, NY 10154

Legal counsel

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, NY 10017

New York Stock Exchange Symbol

EHI

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, Legg Mason Investor Services, LLC, as well as Legg Mason-sponsored closed-end funds and certain closed-end funds managed or sub-advised by Legg Mason or its affiliates. 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;

•

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 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 marketing services solely for the Funds;

•

The Funds’ representatives such as legal counsel, accountants and auditors; and

•

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

NOT PART OF THE ANNUAL REPORT

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

Except as otherwise permitted by applicable law, companies acting on the Funds’ behalf 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, or if you have questions about the Funds’ privacy practices, 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.leggmason.com, or contact the Fund at 1-888-777-0102.

NOT PART OF THE ANNUAL REPORT

Western Asset Global High Income Fund Inc.

620 Eighth Avenue

49th 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 on Form N-Q. The Fund’s Forms N-Q are available on the SEC’s website at www.sec.gov. The Fund’s Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington D.C., and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. To obtain information on Form N-Q from the Fund, shareholders can call 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 relating to portfolio transactions are available (1) without charge, upon request, by calling 1-888-777-0102, (2) at www.lmcef.com and (3) on the SEC’s website at www.sec.gov.

This report is transmitted to the shareholders of Western Asset Global High Income 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

WASX010005 7/17 SR17-3118

ITEM 2.

CODE OF ETHICS.

The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller.

ITEM 3.

AUDIT COMMITTEE FINANCIAL EXPERT.

The Board of Directors of the registrant has determine that Eileen A. Kamerick, a member of the Board’s Audit Committee, possesses the technical attributes identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as an “audit committee financial expert” and that she is independent for purposes of this item.

ITEM 4.

PRINCIPAL ACCOUNTANT FEES AND SERVICES.

(a) Audit Fees. The aggregate fees billed in the previous fiscal years ending May 31, 2016 and May 31, 2017 (the “Reporting Periods”) for professional services rendered by the Registrant’s principal accountant (the “Auditor”) for the audit of the Registrant’s annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $71,450 in May 31, 2016 and $72,150 in May 31, 2017.

(b) Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the audit of the Registrant’s financial statements were $0 in May 31, 2016 and $0 in May 31, 2017.

(c) Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning (“Tax Services”) were $0 in May 31, 2016 and $12,020 in May 31, 2017. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.

There were no fees billed for tax services by the Auditors to service affiliates during the Reporting Periods that required pre-approval by the Audit Committee.

(d) All Other Fees. There were no other fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) of this Item 4 for the Western Asset Global High Income Fund Inc.

All Other Fees. There were no other non-audit services rendered by the Auditor to Legg Mason Partners Fund Advisors, LLC (“LMPFA”), and any entity controlling, controlled by or under common control with LMPFA that provided ongoing services to Western Asset Global High Income Fund Inc. requiring pre-approval by the Audit Committee in the Reporting Period.

(e) Audit Committee’s pre-approval policies and procedures described in paragraph

(1) The Charter for the Audit Committee (the “Committee”) of the Board of each registered investment company (the “Fund”) advised by LMPFA or one of their affiliates (each, an “Adviser”) requires that the Committee shall approve (a) all audit and permissible non-audit services to be provided to the Fund and (b) all permissible non-audit services to be provided by the Fund’s independent auditors to the Adviser and any Covered Service Providers if the engagement relates directly to the operations and financial reporting of the Fund. The Committee may implement policies and procedures by which such services are approved other than by the full Committee.

The Committee shall not approve non-audit services that the Committee believes may impair the independence of the auditors. As of the date of the approval of this Audit Committee Charter, permissible non-audit services include any professional services (including tax services), that are not prohibited services as described below, provided to the Fund by the independent auditors, other than those provided to the Fund in connection with an audit or a review of the financial statements of the Fund. Permissible non-audit services may not include: (i) bookkeeping or other services related to the accounting records or financial statements of the Fund; (ii) financial information systems design and implementation; (iii) appraisal or valuation services, fairness opinions or contribution-in-kind reports; (iv) actuarial services; (v) internal audit outsourcing services; (vi) management functions or human resources; (vii) broker or dealer, investment adviser or investment banking services; (viii) legal services and expert services unrelated to the audit; and (ix) any other service the Public Company Accounting Oversight Board determines, by regulation, is impermissible.

Pre-approval by the Committee of any permissible non-audit services is not required so long as: (i) the aggregate amount of all such permissible non-audit services provided to the Fund, the Adviser and any service providers controlling, controlled by or under common control with the Adviser that provide ongoing services to the Fund (“Covered Service Providers”) constitutes not more than 5% of the total amount of revenues paid to the independent auditors during the fiscal year in which the permissible non-audit services are provided to (a) the Fund, (b) the Adviser and (c) any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Fund during the fiscal year in which the services are provided that would have to be approved by the Committee; (ii) the permissible non-audit services were not recognized by the Fund at the time of the engagement to be non-audit services; and (iii) such services are promptly brought to the attention of the Committee and approved by the Committee (or its delegate(s)) prior to the completion of the audit.

(2) For the Western Asset Global High Income Fund Inc., the percentage of fees that were approved by the audit committee, with respect to: Audit-Related Fees were 100% and 100% for May 31, 2016 and May 31, 2017; Tax Fees were 100% and 100% for May 31, 2016 and May 31, 2017; and Other Fees were 100% and 100% for May 31, 2016 and May 31, 2017.

(f) N/A

(g) Non-audit fees billed by the Auditor for services rendered to Western Asset Global High Income Fund Inc., LMPFA and any entity controlling, controlled by, or under common control with LMPFA that provides ongoing services to Western Asset Global High Income Fund Inc. during the reporting period were $0 in 2017.

(h) Yes. Western Asset Global High Income Fund Inc.’s Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval), is compatible with maintaining the Accountant’s independence. All services provided by the Auditor to the Western Asset Global High Income Fund Inc. or to Service Affiliates, which were required to be pre-approved, were pre-approved as required.

ITEM 5.

AUDIT COMMITTEE OF LISTED REGISTRANTS.

a) Registrant has a separately-designated standing Audit Committee established in accordance with Section 3(a)58(A) of the Exchange Act. The Audit Committee consists of the following Board members:

Robert D. Agdern

Carol L. Colman

Daniel P. Cronin

Paolo M. Cucchi

William R. Hutchinson

Leslie H. Gelb

Eileen A. Kamerick

Dr. Riordan Roett

b) Not applicable

ITEM 6.

SCHEDULE OF INVESTMENTS.

Included herein under Item 1.

ITEM 7.

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

Legg Mason Partners Fund Advisor, LLC

Proxy Voting Policy

Legg Mason Partners Fund Advisor, LLC (“LMPFA”) delegates to each sub-adviser the responsibility for voting proxies for its funds, as applicable, to each sub-adviser through its contracts with each sub-adviser. Each sub-adviser may use its own proxy voting policies and procedures to vote proxies of the funds if the funds’ Board reviews and approves the use of those policies and procedures. Accordingly, LMPFA does not expect to have proxy-voting responsibility for any of the funds.

Should LMPFA become responsible for voting proxies for any reason, such as the inability of a sub-adviser to provide investment advisory services, LMPFA shall utilize the proxy voting guidelines established by the most recent sub-adviser to vote proxies until a new sub-adviser is retained and the use of its proxy voting policies and procedures is authorized by the Board. In the case of a material conflict between the interests of LMPFA (or its affiliates if such conflict is known to persons responsible for voting at LMPFA) and any fund, the Board of Directors of LMPFA shall consider how to address the conflict and/or how to vote the proxies. LMPFA shall maintain records of all proxy votes in accordance with applicable securities laws and regulations.

LMPFA shall be responsible for gathering relevant documents and records related to proxy voting from each sub-adviser and providing them to the funds as required for the funds to comply with applicable rules under the Investment Company Act of 1940. LMPFA shall also be responsible for coordinating the provision of information to the Board with regard to the proxy voting policies and procedures of each sub-adviser, including the actual proxy voting policies and procedures of each sub-adviser, changes to such policies and procedures, and reports on the administration of such policies and procedures.

Questions regarding this policy should be referred to the Legal and Compliance Department of Legg Mason, Inc.

Background

Western Asset Management Company (“WA”), Western Asset Management Company Limited (“WAML”) and Western Asset Management Company Pte. Ltd. (“WAMC”) (together “Western Asset” or the “subadviser”) have adopted and implemented policies and procedures that we believe are reasonably designed to ensure that proxies are voted in the best interest of clients, in accordance with our fiduciary duties and SEC Rule 206(4)-6 under the Investment Advisers Act of 1940 (“Advisers Act”). Our authority to vote the proxies of our clients is established through investment management agreements or comparable documents, and our proxy voting guidelines have been tailored to reflect these specific contractual obligations. In addition to SEC requirements governing advisers, our proxy voting policies reflect the long-standing fiduciary standards and responsibilities for ERISA accounts. Unless a manager of ERISA assets has been expressly precluded from voting proxies, the Department of Labor has determined that the responsibility for these votes lies with the Investment Manager.

In exercising its voting authority, Western Asset will not consult or enter into agreements with officers, directors or employees of Legg Mason Inc. or any of its affiliates (except that WA, WAML and WAMC may so consult and agree with each other) regarding the voting of any securities owned by its clients.

Western Asset’s proxy voting procedures are designed and implemented in a way that is reasonably expected to ensure that proxy matters are handled in the best interest of our clients. While the guidelines included in the procedures are intended to provide a benchmark for voting standards, each vote is ultimately cast on a case-by-case basis, taking into consideration Western Asset’s contractual obligations to our clients and all other relevant facts and circumstances at the time of the vote (such that these guidelines may be overridden to the extent Western Asset deems appropriate).

Procedures

Responsibility and Oversight

The Western Asset Legal and Compliance Department (“Legal and Compliance Department”) is responsible for administering and overseeing the proxy voting process. The gathering of proxies is coordinated through the Corporate Actions area of Investment Support (“Corporate Actions”). Research analysts and portfolio managers are responsible for determining appropriate voting positions on each proxy utilizing any applicable guidelines contained in these procedures.

Client Authority

The Investment Management Agreement for each client is reviewed at account start-up for proxy voting instructions. If an agreement is silent on proxy voting, but contains an overall delegation of discretionary authority or if the account represents assets of an ERISA plan, Western Asset will assume responsibility for proxy voting. The Legal and Compliance Department maintains a matrix of proxy voting authority.

Proxy Gathering

Registered owners of record, client custodians, client banks and trustees (“Proxy Recipients”) that receive proxy materials on behalf of clients should forward them to Corporate Actions. Proxy Recipients for new clients (or, if Western Asset becomes aware that the applicable Proxy Recipient for an existing client has changed, the Proxy Recipient for the existing client) are notified at start-up of appropriate routing to Corporate Actions of proxy materials received and reminded of their responsibility to forward all proxy materials on a timely basis. If Western Asset personnel other than Corporate Actions receive proxy materials, they should promptly forward the materials to Corporate Actions.

Proxy Voting

Once proxy materials are received by Corporate Actions, they are forwarded to the Legal and Compliance Department for coordination and the following actions:

Proxies are reviewed to determine accounts impacted.

Impacted accounts are checked to confirm Western Asset voting authority.

Legal and Compliance Department staff reviews proxy issues to determine any material conflicts of interest. (See conflicts of interest section of these procedures for further information on determining material conflicts of interest.)

If a material conflict of interest exists, (i) to the extent reasonably practicable and permitted by applicable law, the client is promptly notified, the conflict is disclosed and Western Asset obtains the client’s proxy voting instructions, and (ii) to the extent that it is not reasonably practicable or permitted by applicable law to notify the client and obtain such instructions (e.g., the client is a mutual fund or other commingled vehicle or is an ERISA plan client), Western Asset seeks voting instructions from an independent third party.

Legal and Compliance Department staff provides proxy material to the appropriate research analyst or portfolio manager to obtain their recommended vote. Research analysts and portfolio managers determine votes on a case-by-case basis taking into account the voting guidelines contained in these procedures. For avoidance of doubt, depending on the best interest of each individual client, Western Asset may vote the same proxy differently for different clients. The analyst’s or portfolio manager’s basis for their decision is documented and maintained by the Legal and Compliance Department.

Legal and Compliance Department staff votes the proxy pursuant to the instructions received in (d) or (e) and returns the voted proxy as indicated in the proxy materials.

Timing

Western Asset personnel act in such a manner to ensure that, absent special circumstances, the proxy gathering and proxy voting steps noted above can be completed before the applicable deadline for returning proxy votes.

Recordkeeping

Western Asset maintains records of proxies voted pursuant to Section 204-2 of the Advisers Act and ERISA DOL Bulletin 94-2. These records include:

A copy of Western Asset’s policies and procedures.

Copies of proxy statements received regarding client securities.

A copy of any document created by Western Asset that was material to making a decision how to vote proxies.

Each written client request for proxy voting records and Western Asset’s written response to both verbal and written client requests.

A proxy log including:

Issuer name;

Exchange ticker symbol of the issuer’s shares to be voted;

Committee on Uniform Securities Identification Procedures (“CUSIP”) number for the shares to be voted;

A brief identification of the matter voted on;

Whether the matter was proposed by the issuer or by a shareholder of the issuer;

Whether a vote was cast on the matter;

A record of how the vote was cast; and

Whether the vote was cast for or against the recommendation of the issuer’s management team.

Records are maintained in an easily accessible place for five years, the first two in Western Asset’s offices.

Disclosure

Part II of the WA Form ADV, the WAML Form ADV and the WAMC Form ADV, each, contain a description of Western Asset’s proxy policies. Clients will be provided a copy of these policies and procedures upon request. In addition, upon request, clients may receive reports on how their proxies have been voted.

Conflicts of Interest

All proxies are reviewed by the Legal and Compliance Department for material conflicts of interest. Issues to be reviewed include, but are not limited to:

Whether Western Asset (or, to the extent required to be considered by applicable law, its affiliates) manages assets for the company or an employee group of the company or otherwise has an interest in the company;

Whether Western Asset or an officer or director of Western Asset or the applicable portfolio manager or analyst responsible for recommending the proxy vote (together, “Voting Persons”) is a close relative of or has a personal or business relationship with an executive, director or person who is a candidate for director of the company or is a participant in a proxy contest; and

Whether there is any other business or personal relationship where a Voting Person has a personal interest in the outcome of the matter before shareholders.

Voting Guidelines

Western Asset’s substantive voting decisions turn on the particular facts and circumstances of each proxy vote and are evaluated by the designated research analyst or portfolio manager. The examples outlined below are meant as guidelines to aid in the decision making process.

Guidelines are grouped according to the types of proposals generally presented to shareholders. Part I deals with proposals which have been approved and are recommended by a company’s board of directors; Part II deals with proposals submitted by shareholders for inclusion in proxy statements; Part III addresses issues relating to voting shares of investment companies; and Part IV addresses unique considerations pertaining to foreign issuers.

I. Board Approved Proposals

The vast majority of matters presented to shareholders for a vote involve proposals made by a company itself that have been approved and recommended by its board of directors. In view of the enhanced corporate governance practices currently being implemented in public companies, Western Asset generally votes in support of decisions reached by independent boards of directors. More specific guidelines related to certain board-approved proposals are as follows:

Matters relating to the Board of Directors

Western Asset votes proxies for the election of the company’s nominees for directors and for board-approved proposals on other matters relating to the board of directors with the following exceptions:

Votes are withheld for the entire board of directors if the board does not have a majority of independent directors or the board does not have nominating, audit and compensation committees composed solely of independent directors.

Votes are withheld for any nominee for director who is considered an independent director by the company and who has received compensation from the company other than for service as a director.

Votes are withheld for any nominee for director who attends less than 75% of board and committee meetings without valid reasons for absences.

Votes are cast on a case-by-case basis in contested elections of directors.

Matters relating to Executive Compensation

Western Asset generally favors compensation programs that relate executive compensation to a company’s long-term performance. Votes are cast on a case-by-case basis on board-approved proposals relating to executive compensation, except as follows:

Except where the firm is otherwise withholding votes for the entire board of directors, Western Asset votes for stock option plans that will result in a minimal annual dilution.

Western Asset votes against stock option plans or proposals that permit replacing or repricing of underwater options.

Western Asset votes against stock option plans that permit issuance of options with an exercise price below the stock’s current market price.

Except where the firm is otherwise withholding votes for the entire board of directors, Western Asset votes for employee stock purchase plans that limit the discount for shares purchased under the plan to no more than 15% of their market value, have an offering period of 27 months or less and result in dilution of 10% or less.

3. Matters relating to Capitalization

The management of a company’s capital structure involves a number of important issues, including cash flows, financing needs and market conditions that are unique to the circumstances of each company. As a result, Western Asset votes on a case-by-case basis on board-approved proposals involving changes to a company’s capitalization except where Western Asset is otherwise withholding votes for the entire board of directors.

a. Western Asset votes for proposals relating to the authorization of additional common stock.

b. Western Asset votes for proposals to effect stock splits (excluding reverse stock splits).

c. Western Asset votes for proposals authorizing share repurchase programs.

4. Matters relating to Acquisitions, Mergers, Reorganizations and Other Transactions

Western Asset votes these issues on a case-by-case basis on board-approved transactions.

5. Matters relating to Anti-Takeover Measures

Western Asset votes against board-approved proposals to adopt anti-takeover measures except as follows:

a. Western Asset votes on a case-by-case basis on proposals to ratify or approve shareholder rights plans.

b. Western Asset votes on a case-by-case basis on proposals to adopt fair price provisions.

6. Other Business Matters

Western Asset votes for board-approved proposals approving such routine business matters such as changing the company’s name, ratifying the appointment of auditors and procedural matters relating to the shareholder meeting.

a. Western Asset votes on a case-by-case basis on proposals to amend a company’s charter or bylaws.

b. Western Asset votes against authorization to transact other unidentified, substantive business at the meeting.

II. Shareholder Proposals

SEC regulations permit shareholders to submit proposals for inclusion in a company’s proxy statement. These proposals generally seek to change some aspect of a company’s corporate governance structure or to change some aspect of its business operations. Western Asset votes in accordance with the recommendation of the company’s board of directors on all shareholder proposals, except as follows:

1. Western Asset votes for shareholder proposals to require shareholder approval of shareholder rights plans.

2. Western Asset votes for shareholder proposals that are consistent with Western Asset’s proxy voting guidelines for board-approved proposals.

3. Western Asset votes on a case-by-case basis on other shareholder proposals where the firm is otherwise withholding votes for the entire board of directors.

III. Voting Shares of Investment Companies

Western Asset may utilize shares of open or closed-end investment companies to implement its investment strategies. Shareholder votes for investment companies that fall within the categories listed in Parts I and II above are voted in accordance with those guidelines.

1. Western Asset votes on a case-by-case basis on proposals relating to changes in the investment objectives of an investment company taking into account the original intent of the fund and the role the fund plays in the clients’ portfolios.

2. Western Asset votes on a case-by-case basis all proposals that would result in increases in expenses (e.g., proposals to adopt 12b-1 plans, alter investment advisory arrangements or approve fund mergers) taking into account comparable expenses for similar funds and the services to be provided.

IV. Voting Shares of Foreign Issuers

In the event Western Asset is required to vote on securities held in non-U.S. issuers – i.e. issuers that are incorporated under the laws of a foreign jurisdiction and that are not listed on a U.S. securities exchange or the NASDAQ stock market, the following guidelines are used, which are premised on the existence of a sound corporate governance and disclosure framework. These guidelines, however, may not be appropriate under some circumstances for foreign issuers and therefore apply only where applicable.

1. Western Asset votes for shareholder proposals calling for a majority of the directors to be independent of management.

2. Western Asset votes for shareholder proposals seeking to increase the independence of board nominating, audit and compensation committees.

3. Western Asset votes for shareholder proposals that implement corporate governance standards similar to those established under U.S. federal law and the listing requirements of U.S. stock exchanges, and that do not otherwise violate the laws of the jurisdiction under which the company is incorporated.

4. Western Asset votes on a case-by-case basis on proposals relating to (1) the issuance of common stock in excess of 20% of a company’s outstanding common stock where shareholders do not have preemptive rights, or (2) the issuance of common stock in excess of 100% of a company’s outstanding common stock where shareholders have preemptive rights.

Retirement Accounts

For accounts subject to ERISA, as well as other Retirement Accounts, Western Asset is presumed to have the responsibility to vote proxies for the client. The Department of Labor (“DOL”) has issued a bulletin that states that investment managers have the responsibility to vote proxies on behalf of Retirement Accounts unless the authority to vote proxies has been specifically reserved to another named fiduciary. Furthermore, unless Western Asset is expressly precluded from voting the proxies, the DOL has determined that the responsibility remains with the investment manager.

In order to comply with the DOL’s position, Western Asset will be presumed to have the obligation to vote proxies for its Retirement Accounts unless Western Asset has obtained a specific written instruction indicating that: (a) the right to vote proxies has been reserved to a named fiduciary of the client, and (b) Western Asset is precluded from voting proxies on behalf of the client. If Western Asset does not receive such an instruction, Western Asset will be responsible for voting proxies in the best interests of the Retirement Account client and in accordance with any proxy voting guidelines provided by the client.

ITEM 8.

INVESTMENT PROFESSIONALS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

(a)(1):


NAME AND ADDRESS	LENGTH OF TIME SERVED	PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS
S. Kenneth Leech Western Asset 385 East Colorado Blvd. Pasadena, CA 91101	Since 2006	Responsible for the day-to-day management with other members of the Fund’s portfolio management team; Chief Investment Officer of Western Asset from 1998 to 2008 and since 2014; Senior Advisor/Chief Investment Officer Emeritus of Western Asset from 2008-2013; Co- Chief Investment Officer of Western Asset from 2013-2014.

Michael C. Buchanan Western Asset 385 East Colorado Blvd. Pasadena, CA 91101	Since 2006	Responsible for the day-to-day management with other members of the Fund’s portfolio management team; employed by Western Asset Management as an investment professional for at least the past five years; Managing Director and head of U.S. Credit Products from 2003-2005 at Credit Suisse Asset Management


Ryan K. Brist Western Asset 385 East Colorado Blvd. Pasadena, CA 91101	Since 2010	Responsible for the day-to-day management with other members of the Fund’s portfolio management team; Head of U.S. Investment Grade Credit of Western Asset since 2009; Chief Investment Officer and Portfolio Manager at Logan Circle Partners, L.P. from 2007-2009; Co-Chief Investment Officer and Senior Portfolio Manager at Delaware Investment Advisors from 2000-2007

Christopher F. Kilpatrick Western Asset 385 East Colorado Blvd. Pasadena, CA 91101	Since 2012	Responsible for the day-to-day management with other members of the Fund’s portfolio management team; employed by Western Asset Management as an investment professional for at least the past five years.

Chia-Liang Lian Western Asset 385 East Colorado Blvd. Pasadena, CA 91101	Since 2014	Responsible for the day-to-day management with other members of the Fund’s portfolio management team; employed by Western Asset Management as an investment professional since 2011; Prior to joining Western Asset, Mr. Lian spent approximately six years with the Pacific Investment Management Company (PIMCO), where he served as Head of Emerging Asia Portfolio Management.

(a)(2): DATA TO BE PROVIDED BY FINANCIAL CONTROL

The following tables set forth certain additional information with respect to the fund’s portfolio managers for the fund. Unless noted otherwise, all information is provided as of May 31, 2017.

Other Accounts Managed by Portfolio Managers

The table below identifies the number of accounts (other than the fund) for which the fund’s portfolio managers have day-to-day management responsibilities and the total assets in such accounts, within each of the following categories: registered investment companies, other pooled investment vehicles, and other accounts. For each category, the number of accounts and total assets in the accounts where fees are based on performance is also indicated.


Name of PM	Type of Account	Number of Accounts Managed	Total Assets Managed	Number of Accounts Managed for which Advisory Fee is Performance- Based	Assets Managed for which Advisory Fee is Performance- Based
S. Kenneth Leech‡	Other Registered Investment Companies	103	$146.8 billion	None	None
	Other Pooled Vehicles	270	$83.7 billion	6	$1.7 billion
	Other Accounts	597	$198.6 billion	29	$12.4 billion


Michael C. Buchanan ‡	Other Registered Investment Companies	44	$46.3 billion	None	None
	Other Pooled Vehicles	86	$35.5 billion	3	$1.1 billion
	Other Accounts	244	$83.2 billion	16	$9.0 billion

Chia-Liang Lian‡	Other Registered Investment Companies	26	$39.1 billion	None	None
	Other Pooled Vehicles	42	$14.9 billion	1	$120 million
	Other Accounts	152	$30.8 billion	10	$4.3 billion


Christopher Kilpatrick ‡	Other Registered Investment Companies	9	$3.6 billion	None	None
	Other Pooled Vehicles	4	$820 million	None	None
	Other Accounts	None	None	None	None

Ryan Brist ‡	Other Registered Investment Companies	6	$2.7 billion	None	None
	Other Pooled Vehicles	25	$12.0 billion	None	None
	Other Accounts	67	$27.8 billion	3	$610 million

‡

The numbers above reflect the overall number of portfolios managed by employees of Western Asset Management Company (“Western Asset”). Mr. Leech is involved in the management of all the Firm’s portfolios, but they are not solely responsible for particular portfolios. Western Asset’s investment discipline emphasizes a team approach that combines the efforts of groups of specialists working in different market sectors. They are responsible for overseeing implementation of Western Asset’s overall investment ideas and coordinating the work of the various sector teams. This structure ensures that client portfolios benefit from a consensus that draws on the expertise of all team members.

(a)(3): Investment Professional Compensation

With respect to the compensation of the investment professionals, Western Asset’s compensation system assigns each employee a total compensation range, which is derived from annual market surveys that benchmark each role with its job function and peer universe. This method is designed to reward employees with total compensation reflective of the external market value of their skills, experience, and ability to produce desired results. Standard compensation includes competitive base salaries, generous employee benefits, and a retirement plan.

In addition, the subadviser’s employees are eligible for bonuses. These are structured to closely align the interests of employees with those of the subadviser, and are determined by the professional’s job function and pre-tax performance as measured by a formal review process. All bonuses are completely discretionary. The principal factor considered is an investment professional’s investment performance versus appropriate peer groups and benchmarks (e.g., a securities index and with respect to a fund, the benchmark set forth in the fund’s Prospectus to which the fund’s average annual total returns are compared or, if none, the benchmark set forth in the fund’s annual report). Performance is reviewed on a 1, 3 and 5 year basis for compensation—with 3 years having the most emphasis. The subadviser may also measure an investment professional’s pre-tax investment performance against other benchmarks, as it determines appropriate. Because investment professionals are generally responsible for multiple accounts (including the funds) with similar investment strategies, they are generally compensated on the performance of the aggregate group of similar accounts, rather than a specific account. Other factors that may be considered when making bonus decisions include client service, business development, length of service to the subadviser, management or supervisory responsibilities, contributions to developing business strategy and overall contributions to the subadviser’s business.

Finally, in order to attract and retain top talent, all professionals are eligible for additional incentives in recognition of outstanding performance. These are determined based upon the factors described above and include Legg Mason stock options and long-term incentives that vest over a set period of time past the award date.

Potential Conflicts of Interest

The subadviser has adopted compliance policies and procedures to address a wide range of potential conflicts of interest that could directly impact client portfolios. For example, potential conflicts of interest may arise in connection with the management of multiple portfolios (including portfolios managed in a personal capacity). These could include potential conflicts of interest related to the knowledge and timing of a portfolio’s trades, investment opportunities and broker selection. Portfolio managers are privy to the size, timing, and possible market impact of a portfolio’s trades.

It is possible that an investment opportunity may be suitable for both a portfolio and other accounts managed by a portfolio manager, but may not be available in sufficient quantities for both the portfolio and the other accounts to participate fully. Similarly, there may be limited opportunity to sell an investment held by a portfolio and another account. A conflict may arise where the portfolio manager may have an incentive to treat an account preferentially as compared to a portfolio because the account pays a performance-based fee or the portfolio manager, the subadviser or an affiliate has an interest in the account. The subadviser has adopted procedures for allocation of portfolio transactions and investment opportunities across multiple client accounts on a fair and equitable basis over time. Eligible accounts that can participate in a trade generally share the same price on a pro-rata allocation basis, taking into account differences based on factors such as cash availability, investment restrictions and guidelines, and portfolio composition versus strategy.

With respect to securities transactions, the subadviser determines which broker or dealer to use to execute each order, consistent with their duty to seek best execution of the transaction. However, with respect to certain other accounts (such as pooled investment vehicles that are not registered investment companies and other accounts managed for organizations and individuals), the subadviser may be limited by the client with respect to the selection of brokers or dealers or may be instructed to direct trades through a particular broker or dealer. In these cases, trades for a portfolio in a particular security may be placed separately from, rather than aggregated with, such other accounts. Having separate transactions with respect to a security may temporarily affect the market price of the security or the execution of the transaction, or both, to the possible detriment of a portfolio or the other account(s) involved. Additionally, the management of multiple portfolios and/or other accounts may result in a portfolio manager devoting unequal time and attention to the management of each portfolio and/or other account. The subadviser’s team approach to portfolio management and block trading approach seeks to limit this potential risk.

The subadviser also maintains a gift and entertainment policy to address the potential for a business contact to give gifts or host entertainment events that may influence the business judgment of an employee. Employees are permitted to retain gifts of only a nominal value and are required to make reimbursement for entertainment events above a certain value. All gifts (except those of a de minimis value) and entertainment events that are given or sponsored by a business contact are required to be reported in a gift and entertainment log which is reviewed on a regular basis for possible issues.

Employees of the subadviser have access to transactions and holdings information regarding client accounts and the subadviser’s overall trading activities. This information represents a potential conflict of interest because employees may take advantage of this information as they trade in their personal accounts. Accordingly, the subadviser maintains a Code of Ethics that is compliant with Rule 17j-1 under the Investment Company Act of 1940, as amended, and Rule 204A-1 under the Investment Advisers Act of 1940, to address personal trading. In addition, the Code of Ethics seeks to establish broader principles of good conduct and fiduciary responsibility in all aspects of the subadviser’s business. The Code of Ethics is administered by the Legal and Compliance Department and monitored through the subadviser’s compliance monitoring program.

The subadviser may also face other potential conflicts of interest with respect to managing client assets, and the description above is not a complete description of every conflict of interest that could be deemed to exist. The subadviser also maintains a compliance monitoring program and engages independent auditors to conduct a SOC1/ISAE 3402 audit on an annual basis. These steps help to ensure that potential conflicts of interest have been addressed.

Investment Professional Securities Ownership

The table below identifies the dollar range of securities beneficially owned by the named investment professional as of May 31, 2017.


Portfolio Manager^(s)		Dollar Range of Portfolio Securities Beneficially Owned
S. Kenneth Leech		D
Michael C. Buchanan Ryan K. Brist		C A
Christopher F. Kilpatrick Chia- Liang Lian		E A

Dollar Range ownership is as follows:

A: none

B: $1 - $10,000

C: 10,001 - $50,000

D: $50,001 - $100,000

E: $100,001 - $500,000

F: $500,001 - $1 million

G: over $1 million

ITEM 9.

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

Not applicable.

ITEM 10.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

Not applicable.

ITEM 11.

CONTROLS AND PROCEDURES.

(a)

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

(b)

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

ITEM 12.

EXHIBITS.

(a) (1) Code of Ethics attached hereto.

Exhibit 99.CODE ETH

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

Exhibit 99.CERT

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

Exhibit 99.906CERT

SIGNATURES

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

Western Asset Global High Income Fund Inc.



By:		/s/ Jane Trust
		Jane Trust Chief Executive Officer

Date: July 24, 2017

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: July 24, 2017



By:		/s/ Richard F. Sennett
		Richard F. Sennett Principal Financial Officer

Date: July 24, 2017