Edgar Filing: Western Asset Investment Grade Defined Opportunity Trust Inc.

Western Asset Investment Grade Defined Opportunity Trust Inc.

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 811-22294

Western Asset Investment Grade Defined Opportunity Trust Inc.

(Exact name of registrant as specified in charter)

620 Eighth Avenue, 49^th 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: November 30

Date of reporting period: November 30, 2015

ITEM 1. REPORT TO STOCKHOLDERS.

The Annual Report to Stockholders is filed herewith.

LOGO


Annual Report		November 30, 2015

WESTERN ASSET

INVESTMENT GRADE

DEFINED OPPORTUNITY

TRUST INC. (IGI)

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			7
Spread duration			8
Effective duration			9
Schedule of investments			10
Statement of assets and liabilities			22
Statement of operations			23
Statements of changes in net assets			24
Financial highlights			25
Notes to financial statements			26
Report of independent registered public accounting firm			42
Board approval of management and subadvisory agreements			43
Additional information			49
Annual chief executive officer and principal financial officer certifications			55
Other shareholder communications regarding accounting matters			56
Dividend reinvestment plan			57
Important tax information			59

Fund objective

The Fund’s primary investment objective is to provide current income and then to liquidate and distribute substantially all of the Fund’s net assets to stockholders on or about December 2, 2024. As a secondary investment objective, the Fund will seek capital appreciation. There can be no assurance the Fund will achieve its investment objectives.

Letter from the chairman

LOGO

Dear Shareholder,

We are pleased to provide the annual report of Western Asset Investment Grade Defined Opportunity Trust Inc. for the twelve-month reporting period ended November 30, 2015. 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.

I am pleased to introduce myself as the new Chairman, President and Chief Executive Officer of the Fund, succeeding Kenneth D. Fuller. I am honored to have been appointed to my new role. During my 27 year career with Legg Mason, I have seen the investment management industry evolve and expand. Throughout these changes, maintaining an unwavering focus on our shareholders and their needs has remained paramount.

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

December 31, 2015


II		Western Asset Investment Grade Defined Opportunity Trust Inc.

Investment commentary

Economic review

The pace of U.S. economic activity was mixed during the twelve months ended November 30, 2015 (the “reporting period”). Looking back, the U.S. Department of Commerce’s revised figures showed that fourth quarter 2014 U.S. gross domestic product (“GDP”)ⁱ growth was 2.1%. First quarter 2015 GDP growth then moderated to 0.6%. This was attributed to a number of factors, including a deceleration in personal consumption expenditures (“PCE”), along with negative contributions from exports, nonresidential fixed investment, and state and local government spending. Economic activity then accelerated, as second quarter 2015 GDP growth was 3.9%. The upturn was driven by increasing exports, accelerating PCE, declining imports, expanding state and local government spending, and rising nonresidential fixed investment. The U.S. Department of Commerce’s final reading for third quarter 2015 GDP growth — released after the reporting period ended — was 2.0%. Decelerating growth was primarily due to a downturn in private inventory investment and decelerations in exports, PCE, nonresidential fixed investment, state and local government spending, and residential fixed investment.

The labor market significantly improved and was a tailwind for the economy during the reporting period. When the period began, unemployment was 5.6%, as reported by the U.S. Department of Labor. By November 2015, unemployment was 5.0%, equaling its lowest level since April 2008.

The Federal Reserve Board (“Fed”)ⁱⁱ maintained the federal funds rateⁱⁱⁱ at a historically low range between zero and 0.25% during the twelve months ended November 30, 2015. However, at its meeting that ended on December 16, 2015, after the reporting period ended, the Fed raised the federal funds rate for the first time since 2006. In particular, the U.S. central bank raised the federal funds rate to a range between 0.25% and 0.50%. At its meeting that concluded on October 28, 2015, the Fed said, “In determining whether it will be appropriate to raise the target range at its next meeting, the Committee will assess progress — both realized and expected — toward its objectives of maximum employment and 2 percent inflation.” However, in its official statement after the December meeting, the Fed said, “The stance of monetary policy remains accommodative after this increase, thereby supporting further improvement in labor market conditions and a return to 2 percent inflation….The Committee expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run.”

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

Sincerely,

LOGO

Jane Trust, CFA

Chairman, President and

Chief Executive Officer

December 31, 2015

All investments are subject to risk including the possible loss of principal. Past performance is no guarantee of future results.


Western Asset Investment Grade Defined Opportunity Trust Inc.		III

Investment commentary (cont’d)

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 Federal Reserve Board (“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.

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		Western Asset Investment Grade Defined Opportunity Trust Inc.

Fund overview

Q. What is the Fund’s investment strategy?

A. The Fund’s primary investment objective is to provide current income and then to liquidate and distribute substantially all of the Fund’s net assets to stockholders on or about December 2, 2024. As a secondary investment objective, the Fund will seek capital appreciation. There can be no assurance the Fund will achieve its investment objectives.

The Fund seeks to achieve its investment objectives by investing, under normal market conditions, at least 80% of its net assets in investment grade corporate fixed-income securities of varying maturities. The Fund may invest up to 20% of its net assets in corporate fixed-income securities of below investment grade quality (commonly known as “high yield” or “junk” bonds) at the time of investment and other securities, including obligations of the U.S. government, its agencies or instrumentalities, common stocks, warrants and depositary receipts. While the Fund may invest up to 20% of its net assets in below investment grade securities, the Fund will, under normal market conditions, maintain a portfolio with an overall dollar-weighted average of investment grade credit quality. The Fund may invest up to 20% of its net assets in securities of foreign issuers located anywhere in the world, including issuers located in emerging market countries. Additionally, the Fund may invest up to 20% of its net assets in non-U.S. dollar denominated securities.

The Fund may invest in derivative instruments, such as options contracts, futures contracts, options on futures contracts, indexed securities, credit default swaps and other swap agreements, provided that the Fund’s exposure to derivative instruments, as measured by the total notional amount of all such instruments, will not exceed 20% of its net assets.

In purchasing securities and other investments for the Fund, we may take full advantage of the entire range of maturities and durations offered by corporate fixed-income securities and may adjust the average maturity or durationⁱ of the Fund’s portfolio from time to time, depending on our assessment of the relative yields available on securities of different maturities and durations and our expectations of future changes in interest rates.

The Fund may take on leveraging risk by utilizing certain management techniques, whereby it will segregate liquid assets, enter into offsetting transactions or own positions covering its obligations. To the extent the Fund covers its commitment under such a portfolio management technique, such instrument will not be considered a senior security for the purposes of the Investment Company Act of 1940. However, as a fundamental policy, the Fund will not leverage its capital structure by issuing senior securities such as preferred shares or debt instruments.

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


Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report		1

Fund overview (cont’d)

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 and Ryan K. Brist.

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

A. Most spread sectors (non-Treasuries) widened and posted flat to negative total returns over the twelve months ended November 30, 2015. U.S. Treasury bonds outperformed spread sectors, as the former generated small positive total returns. The fixed income market was volatile at times given mixed global economic data, uncertainties regarding future Federal Reserve Board (“Fed”)ⁱⁱ monetary policy and a number of geopolitical issues. Assuming greater risk was generally not rewarded during the reporting period.

Regarding the global credit markets for the twelve months ended November 30, 2015, we began the period with energy oversupply concerns and weak commodity prices. Against this backdrop, spread sectors were widening to better reflect slowing global growth concerns. The winds shifted during the first half of 2015 and energy prices, high-yield and investment-grade corporate bonds, and emerging markets stabilized and then rallied. During the summer of 2015, we experienced another shift to heightened volatility, falling commodity prices, fears over global growth, reduced liquidity and uncertainty surrounding Fed interest rate policy. October 2015 was met with strong demand for credit as investors seemed energized by more compelling valuations. However, the credit market experienced another setback in November as risk aversion returned.

Both short- and long-term Treasury yields moved higher during the twelve months ended November 30, 2015. Two-year Treasury yields rose from 0.47% at the beginning of the period to 0.94% at the end of the period. Their peak of 0.94% occurred on November 23 and November 30, 2015, and they were as low as 0.44% on January 15, 2015. Ten-year Treasury yields were 2.18% at the beginning of the period and ended the period at 2.21%. Their peak of 2.50% was on June 10, 2015 and their low of 1.68% occurred at the end of January and early February 2015.

All told, the Barclays U.S. Aggregate Indexⁱⁱⁱ returned 0.97% for the twelve months ended November 30, 2015. Comparatively, the Barclays U.S. Credit Index (the “Index”)^iv returned 0.00% over the same period and the Barclays U.S. Corporate High Yield — 2% Issuer Cap Index^vreturned -3.38%.

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

A. While we maintained the general theme of a higher quality unlevered credit mandate with an emphasis on the Financials sector, a number of adjustments were made to the portfolio during the reporting period. We modestly decreased the Fund’s exposure to high-yield corporate bonds, while maintaining our focus on relatively higher quality BB-rated securities. Elsewhere, we increased our allocation to investment-grade corporate bonds in an effort to improve the overall credit quality of the portfolio. From a sector perspective, we increased the Fund’s overweight to Financials and moved Energy from an underweight to an overweight versus the Index based on more compelling


2		Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report

valuations. A majority of our Energy exposure is investment-grade rated. Our Financials exposure continued to perform well due to their improved balance sheets, the outlook for stable fundamental performance and government imposed restrictions on returning capital to shareholders. While we are still favorable on the sector, valuations have become less compelling.

In terms of duration, the Fund ended the reporting period at roughly 6.6 years, which was roughly 0.4 years shorter than the Index. This positioning made the Fund less sensitive to changes in interest rates versus the overall investment-grade market. U.S. Treasury futures were used to actively manage the Fund’s duration and yield curve^vi positioning, which moderately detracted from results as the Fund favored an overweight to the longer end of the yield curve versus the Index as a hedge to the portfolio risk positions. Currency forwards, which were utilized to manage the Fund’s currency exposure, contributed to results. We increased our short on the euro and maintained a small short on the Japanese yen as we felt these trades would benefit from non-U.S. quantitative easing and that the U.S. dollar would strengthen versus the yen and the euro. Finally, credit default and interest rate swaps, which were used to actively manage credit and interest rate risks, did not have a material impact on performance. All told, derivatives had a minor positive impact on the Fund’s performance.

Performance review

For the twelve months ended November 30, 2015, Western Asset Investment Grade Defined Opportunity Trust Inc. returned -0.69% based on its net asset value (“NAV”)^vii and 5.49% based on its New York Stock Exchange (“NYSE”) market price per share. The Fund’s unmanaged benchmark, the Barclays U.S. Credit Index, returned 0.00% for the same period. The Lipper Corporate Debt BBB-Rated Closed-End Funds Category Average^viii returned -0.60% over the same time frame. Please note that Lipper performance returns are based on each fund’s NAV.

During the twelve-month period, the Fund made distributions to shareholders totaling $1.20 per share.* The performance table shows the Fund’s twelve-month total return based on its NAV and market price as of November 30, 2015. Past performance is no guarantee of future results.


Performance Snapshot as of November 30, 2015
Price Per Share	12-Month Total Return**
$20.28 (NAV)		-0.69	%†
$20.77 (Market Price)		5.49	%‡

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.

*	For the tax character of distributions paid during the fiscal year ended November 30, 2015, please refer to page 41 of this report.


Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report		3

Fund overview (cont’d)

† 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 overweight position in Financials. Examples of holdings that contributed to performance were overweight positions in Citigroup, Inc., Bank of America Corp., Royal Bank of Scotland Group PLC and Goldman Sachs Group, Inc. We favored large money center banks that we believed would continue to post consistent fundamental results, along with increased capital ratios. In addition, these banks are still constrained by regulators from returning excessive amounts of capital to shareholders — a positive for fixed income investors. Finally, we believe these issuers should continue to perform well on a relative basis as banks have historically posted improved fundamental results in rising rate environments.

From a credit quality perspective, the Fund’s overweight to BB-rated bonds was rewarded given their outperformance versus both the investment-grade and high-yield bond corporate markets. Overall, the Fund’s out-of-benchmark exposure to high-yield corporate bonds did not have a material impact on results. The outperformance of our higher quality high-yield issues roughly offset the underperformance from our B-rated exposure. Several high yield issuers were additive to performance during the reporting period, including an overweight allocation to International Lease Finance Corp (“ILFC”). Global aircraft leasing firm ILFC was purchased by a competitor, Aercap, prior to the reporting period. We felt the combined entity was well positioned and it proceeded to post strong fundamental results and de-levered faster than the market anticipated. Our position in ILFC bonds posted positive total returns during the reporting period. Finally, as previously mentioned our derivatives, specifically our currency positioning, were beneficial for performance.

Q. What were the leading detractors from performance?

A. A number of individual holdings detracted from results during the reporting period. In the investment-grade bond market, falling oil and commodity prices, due to an increase in supply and elevated mergers and acquisitions (“M&A”) activity, coupled with fears of lower global demand and slowing global growth, sent several of our positions lower. In particular, overweight positions in specific energy issuers, including Williams Cos., Inc. (and their subsidiary Transcontinental Gas Pipe Line Co., LLC.), Kinder Morgan Energy Partners (and their subsidiary Southern Natural Gas Co., LLC.) and Freeport-McMoRan, Inc. were negative for results. Lower oil prices sent the price of their bonds lower. The largest detractor from a high-yield corporate bond perspective was an overweight position in coal firm, Murray Energy Corp. The company recently posted underwhelming fundamental results despite being the industry’s low-cost producer, sending our bonds lower.

From a rating perspective, our bias to overweight BBB-rated investment grade issuers was not rewarded. We felt an


4		Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report

improving economy, albeit a low and slow growth environment, would result in lower quality investment grade bonds outperforming. While this bias has not been beneficial since the inception of the Fund, performance would have benefited during the reporting period had we reduced our underweights to AA-rated and A-rated issuers, as they outperformed both the investment-grade and high-yield corporate bond markets.

Looking for additional information?

The Fund is traded under the symbol “IGI” and its closing market price is available in most newspapers under the NYSE listings. The daily NAV is available on-line under the symbol “XIGIX” 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.

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 Investment Grade Defined Opportunity Trust 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

December 21, 2015

RISKS: The Fund’s investments are subject to credit risk, inflation risk and interest rate risk. As interest rates rise, bond prices fall, reducing the value of the Fund’s holdings. The Fund may invest in lower-rated high-yield bonds or “junk bonds”, which are subject to greater credit risk (risk of default) than higher-rated obligations. The Fund may use derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses and have a potentially large impact on Fund performance. The Fund may invest in securities or engage in transactions that have the economic effects of leverage which can increase the risk and volatility of the Fund.

Portfolio holdings and breakdowns are as of November 30, 2015 and are subject to change and may not be representative of the portfolio managers’ current or future investments. Please refer to pages 10 through 21 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 November 30, 2015 were: Financials (38.9%), Energy (11.0%), Consumer Discretionary (11.0%), Telecommunication Services (8.6%) and Utilities (6.5%). 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.


Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report		5

Fund overview (cont’d)

ⁱ	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.

ⁱⁱ	The Federal Reserve Board (“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.

ⁱⁱⁱ	The 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.

^iv	The 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).

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

^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

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.

^viii

Lipper, Inc., a wholly-owned subsidiary of Reuters, provides independent insight on global collective investments. Returns are based on the twelve-month period ended November 30, 2015, including the reinvestment of all distributions, including returns of capital, if any, calculated among the 9 funds in the Fund’s Lipper category.


6		Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report

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 November 30, 2015 and November 30, 2014 and does not include derivatives, such as futures contracts, swap 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.


Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report		7

Spread duration (unaudited)

Economic exposure — November 30, 2015

LOGO


Total Spread Duration
IGI		— 7.18 years
Benchmark		— 6.87 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.


Benchmark		— Barclays U.S. Credit Index
EM		— Emerging Markets
HY		— High Yield
IG Credit		— Investment Grade Credit
IGI		— Western Asset Investment Grade Defined Opportunity Trust Inc.


8		Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report

Effective duration (unaudited)

Interest rate exposure — November 30, 2015

LOGO


Total Effective Duration
IGI		— 6.60 years
Benchmark		— 6.98 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.


Benchmark		— Barclays U.S. Credit Index
EM		— Emerging Markets
HY		— High Yield
IG Credit		— Investment Grade Credit
IGI		— Western Asset Investment Grade Defined Opportunity Trust Inc.


Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report		9

Schedule of investments

November 30, 2015

Western Asset Investment Grade Defined Opportunity Trust Inc.


Security	Rate			Maturity Date		Face Amount		Value
Corporate Bonds & Notes — 94.2%
Consumer Discretionary — 11.0%
Auto Components — 0.4%
ZF North America Capital Inc., Senior Notes		4.500	%		4/29/22	$	300,000	$	295,500	^(a)
ZF North America Capital Inc., Senior Notes		4.750	%		4/29/25		590,000		572,117	^(a)
Total Auto Components									867,617
Automobiles — 1.9%
Ford Motor Co., Senior Bonds		9.215	%		9/15/21		1,140,000		1,443,880
Ford Motor Credit Co., LLC, Senior Notes		8.125	%		1/15/20		640,000		760,174
General Motors Co., Senior Notes		4.875	%		10/2/23		1,470,000		1,528,335
General Motors Co., Senior Notes		5.200	%		4/1/45		490,000		468,624
Total Automobiles									4,201,013
Hotels, Restaurants & Leisure — 0.3%
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp., Senior Notes		5.625	%		10/15/21		170,000		177,854
Wynn Macau Ltd., Senior Notes		5.250	%		10/15/21		480,000		434,400	^(a)
Total Hotels, Restaurants & Leisure									612,254
Media — 7.7%
21st Century Fox America Inc., Senior Notes		6.650	%		11/15/37		2,400,000		2,842,639
CCO Safari II LLC, Senior Secured Notes		6.384	%		10/23/35		180,000		186,759	^(a)
CCO Safari II LLC, Senior Secured Notes		6.484	%		10/23/45		1,260,000		1,313,970	^(a)
Comcast Corp., Bonds		6.400	%		5/15/38		2,500,000		3,161,527
Comcast Corp., Senior Notes		5.700	%		7/1/19		1,500,000		1,696,778
DISH DBS Corp., Senior Notes		7.875	%		9/1/19		1,250,000		1,350,000
Time Warner Cable Inc., Debentures		7.300	%		7/1/38		160,000		173,638
Time Warner Cable Inc., Senior Bonds		6.550	%		5/1/37		370,000		375,467
Time Warner Cable Inc., Senior Notes		8.750	%		2/14/19		1,390,000		1,625,758
Time Warner Cable Inc., Senior Notes		5.500	%		9/1/41		200,000		184,374
Time Warner Entertainment Co., LP, Senior Notes		8.375	%		7/15/33		370,000		446,583
Time Warner Inc., Senior Notes		4.900	%		6/15/42		250,000		245,047
UBM PLC, Notes		5.750	%		11/3/20		740,000		796,631	^(a)
Viacom Inc., Senior Debentures		5.250	%		4/1/44		120,000		102,674
Virgin Media Finance PLC, Senior Notes		6.375	%		4/15/23		2,000,000		2,052,500	^(a)
WPP Finance 2010, Senior Notes		5.625	%		11/15/43		260,000		269,722
Total Media									16,824,067
Specialty Retail — 0.7%
American Greetings Corp., Senior Notes		7.375	%		12/1/21		280,000		294,000
Gap Inc., Senior Notes		5.950	%		4/12/21		1,240,000		1,300,658
Total Specialty Retail									1,594,658
Total Consumer Discretionary									24,099,609

See Notes to Financial Statements.


10		Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report

Western Asset Investment Grade Defined Opportunity Trust Inc.


Security	Rate			Maturity Date		Face Amount		Value
Consumer Staples — 5.0%
Beverages — 1.0%
Anheuser-Busch InBev Worldwide Inc., Senior Notes		7.750	%		1/15/19	$	450,000	$	523,961
Constellation Brands Inc., Senior Notes		4.250	%		5/1/23		140,000		141,400
Pernod-Ricard SA, Senior Bonds		5.750	%		4/7/21		590,000		655,881	^(a)
Pernod-Ricard SA, Senior Notes		5.500	%		1/15/42		960,000		987,988	^(a)
Total Beverages									2,309,230
Food & Staples Retailing — 0.7%
CVS Health Corp., Senior Notes		4.875	%		7/20/35		310,000		324,910
CVS Health Corp., Senior Notes		5.125	%		7/20/45		540,000		577,615
Whole Foods Market Inc., Senior Notes		5.200	%		12/3/25		550,000		543,736	^(a)
Total Food & Staples Retailing									1,446,261
Food Products — 0.6%
Kraft Foods Group Inc., Senior Notes		5.000	%		6/4/42		280,000		285,949
Kraft Heinz Foods Co., Senior Notes		5.000	%		7/15/35		110,000		113,932	^(a)
Kraft Heinz Foods Co., Senior Notes		5.200	%		7/15/45		420,000		438,724	^(a)
Mondelez International Inc., Senior Notes		4.000	%		2/1/24		410,000		425,335
Total Food Products									1,263,940
Tobacco — 2.7%
Altria Group Inc., Senior Notes		9.250	%		8/6/19		1,000,000		1,229,530
Altria Group Inc., Senior Notes		9.950	%		11/10/38		430,000		694,052
Altria Group Inc., Senior Notes		10.200	%		2/6/39		280,000		463,281
Reynolds American Inc., Senior Notes		8.125	%		6/23/19		540,000		637,055	^(a)
Reynolds American Inc., Senior Notes		8.125	%		5/1/40		470,000		589,835	^(a)
Reynolds American Inc., Senior Notes		7.000	%		8/4/41		510,000		579,643	^(a)
Reynolds American Inc., Senior Notes		4.750	%		11/1/42		1,220,000		1,180,172
Reynolds American Inc., Senior Notes		5.850	%		8/15/45		520,000		583,557
Total Tobacco									5,957,125
Total Consumer Staples									10,976,556
Energy — 10.9%
Energy Equipment & Services — 0.5%
Ensco PLC, Senior Notes		5.200	%		3/15/25		790,000		652,037
Halliburton Co., Senior Notes		5.000	%		11/15/45		330,000		335,932
Pride International Inc., Senior Notes		7.875	%		8/15/40		150,000		136,778
Total Energy Equipment & Services									1,124,747
Oil, Gas & Consumable Fuels — 10.4%
Anadarko Petroleum Corp., Senior Notes		5.950	%		9/15/16		340,000		351,598
Apache Corp., Senior Notes		6.000	%		1/15/37		150,000		162,980
Apache Corp., Senior Notes		5.100	%		9/1/40		280,000		272,444

See Notes to Financial Statements.


Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report		11

Schedule of investments (cont’d)

November 30, 2015

Western Asset Investment Grade Defined Opportunity Trust Inc.


Security	Rate			Maturity Date		Face Amount		Value
Oil, Gas & Consumable Fuels — continued
Apache Corp., Senior Notes		5.250	%		2/1/42	$	160,000	$	160,801
Apache Corp., Senior Notes		4.750	%		4/15/43		670,000		634,526
Columbia Pipeline Group Inc., Senior Notes		5.800	%		6/1/45		340,000		320,505	^(a)
Comstock Resources Inc., Senior Secured Notes		10.000	%		3/15/20		580,000		342,200	^(a)
ConocoPhillips, Notes		6.500	%		2/1/39		1,500,000		1,793,500
Devon Energy Corp., Senior Notes		5.600	%		7/15/41		20,000		18,558
Devon Energy Corp., Senior Notes		5.000	%		6/15/45		430,000		382,471
Devon Financing Corp. LLC, Debentures		7.875	%		9/30/31		1,080,000		1,293,879
Ecopetrol SA, Senior Notes		5.375	%		6/26/26		380,000		346,275
Ecopetrol SA, Senior Notes		5.875	%		5/28/45		284,000		224,360
Energy Transfer Equity LP, Senior Notes		7.500	%		10/15/20		420,000		441,000
EOG Resources Inc., Senior Notes		6.875	%		10/1/18		800,000		908,253
Freeport-McMoran Oil & Gas LLC/FCX Oil & Gas Inc., Senior Notes		6.500	%		11/15/20		32,000		25,680
Freeport-McMoran Oil & Gas LLC/FCX Oil & Gas Inc., Senior Notes		6.875	%		2/15/23		410,000		333,125
Halcon Resources Corp., Secured Notes		8.625	%		2/1/20		290,000		229,463	^(a)
Hess Corp., Notes		8.125	%		2/15/19		1,400,000		1,615,970
Hess Corp., Notes		7.875	%		10/1/29		440,000		521,079
Hess Corp., Senior Bonds		6.000	%		1/15/40		520,000		522,452
Kerr-McGee Corp., Notes		6.950	%		7/1/24		1,320,000		1,542,574
Kerr-McGee Corp., Notes		7.875	%		9/15/31		710,000		876,097
Kinder Morgan Energy Partners LP, Senior Notes		5.950	%		2/15/18		800,000		820,353
LUKOIL International Finance BV, Senior Notes		4.563	%		4/24/23		940,000		863,684	^(a)
MEG Energy Corp., Senior Notes		6.375	%		1/30/23		110,000		91,850	^(a)
MEG Energy Corp., Senior Notes		7.000	%		3/31/24		790,000		673,475	^(a)
Murray Energy Corp., Senior Secured Notes		11.250	%		4/15/21		740,000		172,050	^(a)
Noble Energy Inc., Senior Notes		6.000	%		3/1/41		660,000		653,575
Noble Energy Inc., Senior Notes		5.250	%		11/15/43		240,000		221,172
Petroleos Mexicanos, Senior Bonds		6.625	%		6/15/35		1,000,000		980,200
Petroleos Mexicanos, Senior Notes		5.500	%		1/21/21		250,000		262,812
Petroleos Mexicanos, Senior Notes		6.375	%		1/23/45		80,000		74,600
Shell International Finance BV, Senior Notes		4.375	%		5/11/45		590,000		585,754
Transcontinental Gas Pipe Line Co., LLC, Senior Notes		5.400	%		8/15/41		10,000		7,848
Transcontinental Gas Pipe Line Co., LLC, Senior Notes		4.450	%		8/1/42		860,000		611,478
Valero Energy Corp., Senior Notes		9.375	%		3/15/19		700,000		843,452
Williams Cos. Inc., Senior Notes		7.875	%		9/1/21		952,000		966,721
Williams Cos. Inc., Senior Notes		4.550	%		6/24/24		1,130,000		928,472

See Notes to Financial Statements.


12		Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report

Western Asset Investment Grade Defined Opportunity Trust Inc.


Security	Rate			Maturity Date		Face Amount		Value
Oil, Gas & Consumable Fuels — continued
Williams Cos. Inc., Senior Notes		7.750	%		6/15/31	$	62,000	$	57,670
Williams Cos. Inc., Senior Notes		8.750	%		3/15/32		148,000		145,438
Williams Partners LP, Senior Notes		5.250	%		3/15/20		460,000		470,397
Total Oil, Gas & Consumable Fuels									22,750,791
Total Energy									23,875,538
Financials — 36.7%
Banks — 17.1%
Bank of America Corp., Junior Subordinated Bonds		6.100	%		3/17/25		650,000		654,469	^(b)(c)
Bank of America Corp., Junior Subordinated Notes		6.250	%		9/5/24		970,000		985,471	^(b)(c)
Bank of America Corp., Junior Subordinated Notes		6.500	%		10/23/24		400,000		423,000	^(b)(c)
Bank of America Corp., Notes		6.875	%		4/25/18		990,000		1,102,387
Bank of America Corp., Senior Notes		7.625	%		6/1/19		2,760,000		3,236,760
Bank of America Corp., Senior Notes		5.875	%		2/7/42		1,340,000		1,594,928
Bank of America Corp., Subordinated Notes		7.750	%		5/14/38		670,000		922,314
Barclays Bank PLC, Subordinated Notes		7.625	%		11/21/22		630,000		713,081
BNP Paribas SA, Junior Subordinated Notes		7.375	%		8/19/25		1,870,000		1,923,762	^(a)(b)(c)
CIT Group Inc., Secured Notes		6.625	%		4/1/18		480,000		513,000	^(a)
CIT Group Inc., Senior Notes		5.000	%		8/1/23		350,000		356,563
Citigroup Inc., Junior Subordinated Bonds		6.300	%		5/15/24		470,000		462,950	^(b)(c)
Citigroup Inc., Junior Subordinated Bonds		5.950	%		5/15/25		880,000		844,712	^(b)(c)
Citigroup Inc., Senior Notes		6.000	%		8/15/17		2,250,000		2,421,313
Citigroup Inc., Senior Notes		8.125	%		7/15/39		1,350,000		1,980,520
Citigroup Inc., Subordinated Notes		6.675	%		9/13/43		630,000		780,586
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA of Netherlands, Subordinated Notes		5.750	%		12/1/43		750,000		851,218
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA of Netherlands, Subordinated Notes		5.250	%		8/4/45		560,000		593,538
Credit Agricole SA, Junior Subordinated Notes		8.375	%		10/13/19		500,000		567,500	^(a)(b)(c)
HSBC Holdings PLC, Junior Subordinated Bonds		6.375	%		9/17/24		1,000,000		990,050	^(b)(c)
HSBC Holdings PLC, Junior Subordinated Bonds		6.375	%		3/30/25		200,000		200,602	^(b)(c)
HSBC Holdings PLC, Subordinated Notes		4.250	%		8/18/25		270,000		272,355
JPMorgan Chase & Co., Junior Subordinated Bonds		6.000	%		8/1/23		700,000		704,354	^(b)(c)
JPMorgan Chase & Co., Senior Notes		6.400	%		5/15/38		1,500,000		1,921,344
JPMorgan Chase & Co., Subordinated Notes		5.625	%		8/16/43		760,000		841,915
JPMorgan Chase & Co., Subordinated Notes		4.950	%		6/1/45		150,000		152,309
M&T Bank Corp., Junior Subordinated Bonds		6.875	%		6/15/16		1,060,000		1,062,650	^(c)
Royal Bank of Scotland Group PLC, Junior Subordinated Bonds		7.648	%		9/30/31		710,000		887,500	^(b)(c)
Royal Bank of Scotland Group PLC, Senior Notes		6.400	%		10/21/19		1,170,000		1,310,973

See Notes to Financial Statements.


Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report		13

Schedule of investments (cont’d)

November 30, 2015

Western Asset Investment Grade Defined Opportunity Trust Inc.


Security	Rate			Maturity Date		Face Amount		Value
Banks — continued
Royal Bank of Scotland Group PLC, Subordinated Notes		6.100	%		6/10/23	$	1,540,000	$	1,678,173
Royal Bank of Scotland Group PLC, Subordinated Notes		6.000	%		12/19/23		150,000		163,627
Royal Bank of Scotland NV, Subordinated Bonds		7.750	%		5/15/23		820,000		947,333
Santander UK Group Holdings PLC, Subordinated Notes		4.750	%		9/15/25		200,000		200,746	^(a)
Standard Chartered PLC, Subordinated Notes		5.700	%		3/26/44		410,000		424,467	^(a)
Wachovia Capital Trust III, Junior Subordinated Bonds		5.570	%		12/31/15		410,000		396,983	^(b)(c)
Wachovia Corp., Senior Notes		5.750	%		2/1/18		3,180,000		3,456,705
Wells Fargo & Co., Junior Subordinated Bonds		5.900	%		6/15/24		560,000		571,900	^(b)(c)
Wells Fargo & Co., Junior Subordinated Bonds		5.875	%		6/15/25		300,000		316,500	^(b)(c)
Total Banks									37,428,558
Capital Markets — 7.8%
Bear Stearns Cos. LLC, Senior Notes		7.250	%		2/1/18		1,570,000		1,749,340
Goldman Sachs Group Inc., Senior Notes		5.950	%		1/18/18		4,250,000		4,615,334
Goldman Sachs Group Inc., Senior Notes		7.500	%		2/15/19		500,000		582,350
Goldman Sachs Group Inc., Senior Notes		6.250	%		2/1/41		2,550,000		3,082,802
Goldman Sachs Group Inc., Subordinated Notes		5.150	%		5/22/45		70,000		69,845
KKR Group Finance Co. III LLC, Senior Bonds		5.125	%		6/1/44		1,340,000		1,314,803	^(a)
Morgan Stanley, Medium-Term Notes		6.625	%		4/1/18		1,750,000		1,937,750
Morgan Stanley, Senior Notes		5.500	%		1/26/20		1,950,000		2,179,634
Morgan Stanley, Senior Notes		6.375	%		7/24/42		140,000		176,647
Pershing Square Holdings Ltd., Senior Notes		5.500	%		7/15/22		1,100,000		1,057,927	^(a)
UBS AG Stamford CT, Subordinated Notes		7.625	%		8/17/22		330,000		381,372
Total Capital Markets									17,147,804
Consumer Finance — 1.7%
HSBC Finance Corp., Senior Notes		6.676	%		1/15/21		1,620,000		1,880,470
Navient Corp., Senior Notes		7.250	%		1/25/22		1,430,000		1,363,863
Navient Corp., Senior Notes		6.125	%		3/25/24		480,000		415,800
Total Consumer Finance									3,660,133
Diversified Financial Services — 5.7%
Argos Merger Sub Inc., Senior Notes		7.125	%		3/15/23		400,000		404,000	^(a)
Blackstone Holdings Finance Co., LLC, Senior Notes		4.450	%		7/15/45		310,000		293,499	^(a)
Carlyle Holdings II Finance LLC, Senior Secured Notes		5.625	%		3/30/43		360,000		380,361	^(a)
CME Group Inc., Senior Notes		5.300	%		9/15/43		750,000		862,160
GE Capital International Funding Co., Senior Notes		4.418	%		11/15/35		2,874,000		2,953,998	^(a)
General Electric Capital Corp., Junior Subordinated Bonds		7.125	%		6/15/22		100,000		119,000	^(b)(c)
General Electric Capital Corp., Junior Subordinated Bonds		6.250	%		12/15/22		1,000,000		1,140,000	^(b)(c)
General Electric Capital Corp., Senior Notes		6.875	%		1/10/39		808,000		1,108,615
General Electric Capital Corp., Subordinated Debentures		6.375	%		11/15/67		210,000		223,650	^(b)

See Notes to Financial Statements.


14		Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report

Western Asset Investment Grade Defined Opportunity Trust Inc.


Security	Rate			Maturity Date		Face Amount		Value
Diversified Financial Services — continued
General Electric Capital Corp., Subordinated Notes		5.300	%		2/11/21	$	130,000	$	148,069
ILFC E-Capital Trust I, Junior Subordinated Notes		4.570	%		12/21/65		800,000		758,000	^(a)(b)
International Lease Finance Corp., Senior Notes		8.875	%		9/1/17		810,000		888,975
International Lease Finance Corp., Senior Notes		6.250	%		5/15/19		220,000		237,083
International Lease Finance Corp., Senior Notes		8.250	%		12/15/20		330,000		393,525
International Lease Finance Corp., Senior Secured Notes		6.750	%		9/1/16		670,000		695,125	^(a)
International Lease Finance Corp., Senior Secured Notes		7.125	%		9/1/18		1,200,000		1,320,000	^(a)
ZFS Finance USA Trust II, Bonds		6.450	%		12/15/65		500,000		508,750	^(a)(b)
Total Diversified Financial Services									12,434,810
Insurance — 3.9%
American Equity Investment Life Holding Co., Senior Notes		6.625	%		7/15/21		90,000		95,081
American International Group Inc., Senior Notes		6.400	%		12/15/20		1,000,000		1,164,860
Aon PLC, Senior Notes		4.750	%		5/15/45		160,000		159,496
Delphi Financial Group Inc., Senior Notes		7.875	%		1/31/20		290,000		339,635
Fidelity & Guaranty Life Holdings Inc., Senior Notes		6.375	%		4/1/21		330,000		344,850	^(a)
Liberty Mutual Group Inc., Junior Subordinated Bonds		7.800	%		3/15/37		330,000		386,925	^(a)
Liberty Mutual Insurance Co., Subordinated Notes		7.875	%		10/15/26		840,000		1,021,646	^(a)
MetLife Inc., Junior Subordinated Bonds		5.250	%		6/15/20		220,000		221,925	^(b)(c)
MetLife Inc., Senior Notes		6.817	%		8/15/18		1,300,000		1,469,208
Nationwide Mutual Insurance Co., Notes		9.375	%		8/15/39		520,000		790,467	^(a)
Teachers Insurance & Annuity Association of America, Notes		6.850	%		12/16/39		1,050,000		1,309,072	^(a)
Teachers Insurance & Annuity Association of America, Subordinated Notes		4.900	%		9/15/44		660,000		679,355	^(a)
Travelers Cos. Inc., Senior Notes		6.250	%		6/15/37		400,000		505,285
Total Insurance									8,487,805
Real Estate Investment Trusts (REITs) — 0.1%
Communications Sales & Leasing Inc., Senior Notes		8.250	%		10/15/23		180,000		161,100
Communications Sales & Leasing Inc., Senior Secured Notes		6.000	%		4/15/23		90,000		85,275	^(a)
Total Real Estate Investment Trusts (REITs)									246,375
Real Estate Management & Development — 0.3%
Security Capital Group Inc., Senior Notes		7.700	%		6/15/28		460,000		629,355
Thrifts & Mortgage Finance — 0.1%
Quicken Loans Inc., Senior Notes		5.750	%		5/1/25		240,000		232,800	^(a)
Total Financials									80,267,640
Health Care — 4.7%
Biotechnology — 1.8%
AbbVie Inc., Senior Subordinated Notes		4.500	%		5/14/35		560,000		545,812
AbbVie Inc., Senior Subordinated Notes		4.700	%		5/14/45		700,000		690,591

See Notes to Financial Statements.


Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report		15

Schedule of investments (cont’d)

November 30, 2015

Western Asset Investment Grade Defined Opportunity Trust Inc.


Security	Rate			Maturity Date		Face Amount		Value
Biotechnology — continued
Amgen Inc., Senior Notes		5.150	%		11/15/41	$	700,000	$	711,677
Celgene Corp., Senior Notes		5.000	%		8/15/45		610,000		612,304
Gilead Sciences Inc., Senior Notes		5.650	%		12/1/41		100,000		112,097
Gilead Sciences Inc., Senior Notes		4.500	%		2/1/45		710,000		697,144
Gilead Sciences Inc., Senior Notes		4.750	%		3/1/46		570,000		580,459
Total Biotechnology									3,950,084
Health Care Providers & Services — 1.5%
Catholic Health Initiatives, Secured Bonds		4.350	%		11/1/42		60,000		55,802
Humana Inc., Senior Notes		7.200	%		6/15/18		1,000,000		1,126,217
UnitedHealth Group Inc., Senior Notes		4.750	%		7/15/45		1,200,000		1,266,223
Universal Hospital Services Inc., Secured Notes		7.625	%		8/15/20		820,000		770,800
Total Health Care Providers & Services									3,219,042
Pharmaceuticals — 1.4%
Actavis Funding SCS, Senior Notes		4.550	%		3/15/35		790,000		778,495
Pfizer Inc., Senior Notes		7.200	%		3/15/39		560,000		766,913
Wyeth LLC, Notes		5.950	%		4/1/37		1,100,000		1,313,335
Zoetis Inc., Senior Notes		4.700	%		2/1/43		270,000		235,141
Total Pharmaceuticals									3,093,884
Total Health Care									10,263,010
Industrials — 4.6%
Aerospace & Defense — 0.9%
Exelis Inc., Senior Notes		5.550	%		10/1/21		885,000		979,514
Lockheed Martin Corp., Senior Notes		4.500	%		5/15/36		240,000		244,150
Lockheed Martin Corp., Senior Notes		4.700	%		5/15/46		590,000		606,573
Total Aerospace & Defense									1,830,237
Air Freight & Logistics — 0.4%
United Parcel Service Inc., Senior Notes		6.200	%		1/15/38		700,000		902,326
Airlines — 1.6%
Air Canada, Pass-Through Trust, Secured Notes		6.625	%		5/15/18		480,000		490,800	^(a)
American Airlines, Pass-Through Trust, Senior Secured Bonds		5.600	%		7/15/20		471,535		486,271	^(a)
Continental Airlines Inc., Pass-Through Certificates, Secured Notes		9.250	%		5/10/17		164,599		176,327
Continental Airlines Inc., Pass-Through Certificates, Secured Notes		6.250	%		4/11/20		216,519		227,616
Continental Airlines Inc., Pass-Through Certificates, Senior Secured Notes		6.545	%		2/2/19		167,715		179,665
Continental Airlines Inc., Pass-Through Certificates, Senior Secured Notes		7.250	%		11/10/19		583,621		661,680
Delta Air Lines Inc., Pass-Through Certificates, Secured Notes		8.021	%		8/10/22		133,608		149,807

See Notes to Financial Statements.


16		Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report

Western Asset Investment Grade Defined Opportunity Trust Inc.


Security	Rate			Maturity Date		Face Amount		Value
Airlines — continued
Delta Air Lines Inc., Pass-Through Certificates, Senior Secured Notes		7.750	%		12/17/19	$	429,617	$	483,320
United Airlines Inc., Pass-Through Certificates, Secured Notes		9.750	%		1/15/17		98,592		104,631
United Airlines Inc., Pass-Through Certificates, Senior Secured Notes		10.400	%		11/1/16		46,201		49,290
US Airways, Pass-Through Trust, Senior Secured Bonds		5.900	%		10/1/24		506,597		562,956
Total Airlines									3,572,363
Commercial Services & Supplies — 0.8%
Republic Services Inc., Senior Notes		5.500	%		9/15/19		220,000		243,445
Taylor Morrison Communities Inc./Monarch Communities Inc., Senior Notes		5.250	%		4/15/21		900,000		906,750	^(a)
Waste Management Inc., Senior Notes		7.750	%		5/15/32		500,000		673,209
Total Commercial Services & Supplies									1,823,404
Machinery — 0.3%
Caterpillar Inc., Senior Notes		4.750	%		5/15/64		360,000		352,834
Valmont Industries Inc., Senior Notes		6.625	%		4/20/20		180,000		203,842
Total Machinery									556,676
Road & Rail — 0.6%
Burlington Northern Santa Fe LLC, Senior Notes		4.900	%		4/1/44		760,000		783,363
CSX Corp., Senior Notes		3.950	%		5/1/50		300,000		261,519
Florida East Coast Holdings Corp., Senior Notes		9.750	%		5/1/20		40,000		35,000	^(a)
Florida East Coast Holdings Corp., Senior Secured Notes		6.750	%		5/1/19		50,000		49,125	^(a)
Union Pacific Corp., Senior Notes		4.375	%		11/15/65		190,000		180,412
Total Road & Rail									1,309,419
Total Industrials									9,994,425
Information Technology — 1.4%
Communications Equipment — 0.5%
Harris Corp., Senior Notes		4.854	%		4/27/35		430,000		423,748
Harris Corp., Senior Notes		5.054	%		4/27/45		340,000		334,274
QUALCOMM Inc., Senior Subordinated Notes		4.800	%		5/20/45		490,000		408,120
Total Communications Equipment									1,166,142
Electronic Equipment, Instruments & Components — 0.2%
Interface Security Systems Holdings Inc./Interface Security Systems LLC, Senior Secured Notes		9.250	%		1/15/18		340,000		337,875
IT Services — 0.2%
First Data Corp., Senior Secured Notes		6.750	%		11/1/20		91,000		95,891	^(a)
Hewlett-Packard Enterprise Co., Senior Notes		6.350	%		10/15/45		360,000		347,253	^(a)
Total IT Services									443,144

See Notes to Financial Statements.


Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report		17

Schedule of investments (cont’d)

November 30, 2015

Western Asset Investment Grade Defined Opportunity Trust Inc.


Security	Rate			Maturity Date		Face Amount		Value
Semiconductors & Semiconductor Equipment — 0.4%
Intel Corp., Senior Notes		4.900	%		7/29/45	$	520,000	$	550,428
National Semiconductor Corp., Senior Notes		6.600	%		6/15/17		360,000		389,895
Total Semiconductors & Semiconductor Equipment									940,323
Software — 0.1%
Microsoft Corp., Senior Notes		4.750	%		11/3/55		80,000		80,657
Total Information Technology									2,968,141
Materials — 4.8%
Chemicals — 0.1%
Ecolab Inc., Senior Notes		5.500	%		12/8/41		260,000		288,767
Metals & Mining — 4.5%
Alcoa Inc., Senior Notes		5.870	%		2/23/22		1,200,000		1,225,500
Alcoa Inc., Senior Notes		5.125	%		10/1/24		520,000		494,650
Barrick Gold Corp., Senior Notes		5.250	%		4/1/42		1,200,000		893,731
BHP Billiton Finance USA Ltd., Subordinated Notes		6.750	%		10/19/75		780,000		779,025	^(a)(b)
Glencore Finance Canada Ltd., Senior Bonds		5.800	%		11/15/16		1,200,000		1,185,269	^(a)
Glencore Finance Canada Ltd., Senior Notes		2.700	%		10/25/17		180,000		165,314	^(a)
Rio Tinto Finance USA Ltd., Senior Notes		9.000	%		5/1/19		2,000,000		2,401,250
Southern Copper Corp., Senior Notes		5.375	%		4/16/20		260,000		278,446
Steel Dynamics Inc., Senior Notes		6.125	%		8/15/19		240,000		249,600
Vale Overseas Ltd., Senior Notes		6.875	%		11/21/36		2,100,000		1,560,741
Vedanta Resources PLC, Senior Notes		6.000	%		1/31/19		500,000		382,600	^(a)
Yamana Gold Inc., Senior Notes		4.950	%		7/15/24		140,000		124,627
Total Metals & Mining									9,740,753
Paper & Forest Products — 0.2%
Fibria Overseas Finance Ltd., Senior Notes		5.250	%		5/12/24		510,000		504,900
Total Materials									10,534,420
Telecommunication Services — 8.6%
Diversified Telecommunication Services — 7.1%
AT&T Inc., Global Notes		5.600	%		5/15/18		1,500,000		1,638,001
AT&T Inc., Senior Notes		4.500	%		5/15/35		370,000		348,335
AT&T Inc., Senior Notes		5.550	%		8/15/41		440,000		453,132
AT&T Inc., Senior Notes		4.750	%		5/15/46		60,000		56,424
British Telecommunications PLC, Bonds		9.625	%		12/15/30		2,000,000		2,944,452
Embarq Corp., Notes		7.995	%		6/1/36		1,500,000		1,579,950
Intelsat Jackson Holdings SA, Senior Notes		7.500	%		4/1/21		1,250,000		1,043,750
Koninklijke KPN NV, Senior Notes		8.375	%		10/1/30		330,000		436,007
Telecom Italia SpA, Senior Notes		5.303	%		5/30/24		830,000		847,430	^(a)
Telefonica Emisiones SAU, Senior Notes		7.045	%		6/20/36		140,000		170,271

See Notes to Financial Statements.


18		Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report

Western Asset Investment Grade Defined Opportunity Trust Inc.


Security	Rate			Maturity Date		Face Amount		Value
Diversified Telecommunication Services — continued
Verizon Communications Inc., Senior Notes		5.150	%		9/15/23	$	2,460,000	$	2,754,344
Verizon Communications Inc., Senior Notes		6.550	%		9/15/43		1,473,000		1,782,414
Verizon Communications Inc., Senior Notes		5.012	%		8/21/54		1,508,000		1,432,519
Total Diversified Telecommunication Services									15,487,029
Wireless Telecommunication Services — 1.5%
America Movil SAB de CV, Senior Notes		4.375	%		7/16/42		800,000		736,797
Rogers Communications Inc., Senior Notes		6.800	%		8/15/18		1,000,000		1,124,939
Sprint Communications Inc., Senior Notes		9.000	%		11/15/18		280,000		303,100	^(a)
Sprint Corp., Senior Notes		7.875	%		9/15/23		800,000		646,000
Telefonica Europe BV, Senior Notes		8.250	%		9/15/30		390,000		513,280
Total Wireless Telecommunication Services									3,324,116
Total Telecommunication Services									18,811,145
Utilities — 6.5%
Electric Utilities — 5.2%
Berkshire Hathaway Energy Co., Bonds		6.125	%		4/1/36		1,000,000		1,187,444
Berkshire Hathaway Energy Co., Senior Notes		5.750	%		4/1/18		1,000,000		1,088,837
CenterPoint Energy Houston Electric LLC, Senior Secured Bonds		4.500	%		4/1/44		530,000		559,241
Commonwealth Edison Co., First Mortgage Bonds		5.800	%		3/15/18		600,000		654,440
Commonwealth Edison Co., First Mortgage Bonds		6.450	%		1/15/38		600,000		769,914
FirstEnergy Corp., Notes		7.375	%		11/15/31		3,040,000		3,674,044
NRG REMA LLC, Pass-Through Certificates, Senior Secured Bonds		9.681	%		7/2/26		2,000,000		2,042,500
Pacific Gas & Electric Co., Senior Notes		8.250	%		10/15/18		600,000		700,791
Virginia Electric and Power Co., Senior Notes		8.875	%		11/15/38		500,000		797,800
Total Electric Utilities									11,475,011
Gas Utilities — 0.7%
Southern Natural Gas Co., LLC, Senior Notes		8.000	%		3/1/32		1,500,000		1,581,446
Independent Power and Renewable Electricity Producers — 0.6%
AES Corp., Senior Notes		8.000	%		6/1/20		1,100,000		1,223,750
Total Utilities									14,280,207
Total Corporate Bonds & Notes (Cost — $193,701,716)									206,070,691
Municipal Bonds — 0.4%
California — 0.1%
University of California Revenue, Taxable		4.062	%		5/15/33		220,000		223,298
Illinois — 0.3%
Chicago, IL, GO, Taxable Project		7.781	%		1/1/35		20,000		22,150

See Notes to Financial Statements.


Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report		19

Schedule of investments (cont’d)

November 30, 2015

Western Asset Investment Grade Defined Opportunity Trust Inc.

Security

Rate

Maturity
Date

Face
Amount

Value

Illinois — continued

Illinois State, GO, Build America Bonds-Taxable

6.725

4/1/35

530,000

557,491

Total Illinois

579,641

Total Municipal Bonds (Cost — $850,482)

802,939

Senior Loans — 0.4%

Energy — 0.1%

Oil, Gas & Consumable Fuels — 0.1%

Murray Energy Corp., Term Loan B2

—

4/16/20

370,000

249,904

^(d)

Industrials — 0.3%

Commercial Services & Supplies — 0.3%

Nielsen Finance LLC, USD Term Loan B2

3.195

4/15/21

633,585

635,785

^(e)(f)

Total Senior Loans (Cost — $922,185)

885,689

Sovereign Bonds — 0.6%

Colombia — 0.2%

Republic of Colombia, Senior Bonds

5.625

2/26/44

431,000

412,682

Turkey — 0.4%

Republic of Turkey, Senior Bonds

4.250

4/14/26

520,000

494,104

Republic of Turkey, Senior Notes

4.875

4/16/43

330,000

290,189

Total Turkey

784,293

Total Sovereign Bonds (Cost — $1,222,946)

1,196,975

U.S. Government & Agency Obligations — 0.2%

U.S. Government Obligations — 0.2%

U.S. Treasury Bonds

2.875

8/15/45

150,000

146,355

U.S. Treasury Notes

1.625

11/30/20

360,000

359,515

Total U.S. Government & Agency Obligations (Cost — $505,649)

505,870

Common Stocks — 0.7%

Financials — 0.7%

Banks — 0.7%

Citigroup Inc. (Cost — $1,474,006)

29,728

1,607,988

Convertible Preferred Stocks — 0.5%

Health Care — 0.5%

Pharmaceuticals — 0.5%

Allergan PLC (Cost — $1,015,500)

5.500

1,000

1,047,320

Preferred Stocks — 1.5%

Financials — 1.5%

Capital Markets — 0.2%

State Street Corp.

5.900

16,755

458,249

^(b)

See Notes to Financial Statements.


20		Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report

Western Asset Investment Grade Defined Opportunity Trust Inc.

Security

Rate

Value

Consumer Finance — 1.0%

GMAC Capital Trust I

8.125

85,800

2,187,900

^(b)

Diversified Financial Services — 0.2%

Citigroup Capital XIII

6.692

17,525

455,299

^(b)

Insurance — 0.1%

Delphi Financial Group Inc.

7.376

9,325

231,377

^(b)

Total Preferred Stocks (Cost — $3,166,700)

3,332,825

Total Investments before Short-Term Investments (Cost — $202,859,184)

215,450,297

Short-Term Investments — 0.3%

State Street Institutional Treasury Plus Money Market Fund, Premier Class (Cost — $576,862)

0.000

576,862

576,862

Total Investments — 98.8% (Cost — $203,436,046#)

216,027,159

Other Assets in Excess of Liabilities — 1.2%

2,698,344

Total Net Assets — 100.0%

218,725,503

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

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

^(d)	All or a portion of this loan is unfunded as of November 30, 2015. The interest rate for fully unfunded term loans is to be determined.

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

^(f)	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.

#	Aggregate cost for federal income tax purposes is $205,172,600.


Abbreviation used in this schedule:
GO		— General Obligation

See Notes to Financial Statements.


Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report		21

Statement of assets and liabilities

November 30, 2015



Assets:
Investments, at value (Cost — $203,436,046)	$	216,027,159
Cash		23,895
Interest and dividends receivable		3,138,276
Deposits with brokers for open futures contracts		439,899
Receivable for securities sold		390,971
Unrealized appreciation on forward foreign currency contracts		376,348
Deposits with brokers for centrally cleared swap contracts		201,385
Receivable from broker — variation margin on open futures contracts		4,974
Prepaid expenses		8,563
*Total Assets*		*220,611,470*

Liabilities:
Payable for securities purchased		1,581,991
Investment management fee payable		117,043
OTC swaps, at value (premiums received — $15,023)		20,811
Unrealized depreciation on forward foreign currency contracts		17,834
Payable to broker — variation margin on centrally cleared swaps		6,938
Directors’ fees payable		3,370
Payable for open OTC swap contracts		1,689
Accrued expenses		136,291
*Total Liabilities*		*1,885,967*
Total Net Assets	$	218,725,503

Net Assets:
Par value ($0.001 par value; 10,783,083 shares issued and outstanding; 100,000,000 shares authorized)	$	10,783
Paid-in capital in excess of par value		205,331,275
Undistributed net investment income		1,752,839
Accumulated net realized loss on investments, futures contracts, swap contracts and foreign currency transactions		(1,325,928)
Net unrealized appreciation on investments, futures contracts, swap contracts and foreign currencies		12,956,534
Total Net Assets	$	218,725,503

Shares Outstanding		10,783,083

Net Asset Value		$20.28

See Notes to Financial Statements.


22		Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report

Statement of operations

For the Year Ended November 30, 2015



Investment Income:
Interest	$	12,166,045
Dividends		310,469
*Total Investment Income*		*12,476,514*

Expenses:
Investment management fee (Note 2)		1,474,150
Excise tax (Note 1)		146,288
Audit and tax fees		58,860
Directors’ fees		49,970
Transfer agent fees		36,486
Shareholder reports		30,399
Fund accounting fees		22,763
Stock exchange listing fees		21,221
Legal fees		18,137
Insurance		4,602
Custody fees		3,727
Miscellaneous expenses		12,683
*Total Expenses*		*1,879,286*
Net Investment Income		10,597,228

Realized and Unrealized Gain (Loss) on Investments, Futures Contracts, Swap Contracts and Foreign Currency Transactions (Notes 1, 3 and 4):
Net Realized Gain (Loss) From:
Investment transactions		1,560,759
Futures contracts		(993,295)
Swap contracts		(46,751)
Foreign currency transactions		519,704
*Net Realized Gain*		*1,040,417*
Change in Net Unrealized Appreciation (Depreciation) From:
Investments		(13,763,600)
Futures contracts		375,429
Swap contracts		77,854
Foreign currencies		219,696
*Change in Net Unrealized Appreciation (Depreciation)*		*(13,090,621)*
Net Loss on Investments, Futures Contracts, Swap Contracts and Foreign Currency Transactions		(12,050,204)
Decrease in Net Assets From Operations	$	(1,452,976)

See Notes to Financial Statements.


Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report		23

Statements of changes in net assets


For the Years Ended November 30,	2015		2014

Operations:
Net investment income	$	10,597,228	$	10,932,640
Net realized gain		1,040,417		617,636
Change in net unrealized appreciation (depreciation)		(13,090,621)		5,668,527
*Increase (Decrease) in Net Assets From Operations*		*(1,452,976)*		*17,218,803*

Distributions to Shareholders From (Note 1):
Net investment income		(12,925,001)		(12,230,725)
Net realized gains		—		(4,018,067)
*Decrease in Net Assets From Distributions to Shareholders*		*(12,925,001)*		*(16,248,792)*

Fund Share Transactions:
Reinvestment of distributions (19,442 and 0 shares issued, respectively)		397,294		—
*Increase in Net Assets From Fund Share Transactions*		*397,294*		—
*Increase (Decrease) in Net Assets*		*(13,980,683)*		*970,011*

Net Assets:
Beginning of year		232,706,186		231,736,175
End of year*	$	218,725,503	$	232,706,186
*Includes undistributed net investment income of:		$1,752,839		$2,996,724

See Notes to Financial Statements.


24		Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report

Financial highlights


For a share of capital stock outstanding throughout each year ended November 30:
	2015¹			2014¹			2013¹			2012¹			2011¹

Net asset value, beginning of year		$21.62			$21.53			$22.67			$20.64			$21.35

Income (loss) from operations:
Net investment income		0.98			1.02			1.03			1.09			1.15
Net realized and unrealized gain (loss)		(1.12)			0.58			(0.90)			2.33			(0.57)
*Total income (loss) from operations*		*(0.14)*			*1.60*			*0.13*			*3.42*			*0.58*

Less distributions from:
Net investment income		(1.20)			(1.14)			(0.94)			(1.25)			(1.07)
Net realized gains		—			(0.37)			(0.33)			(0.14)			(0.22)
*Total distributions*		*(1.20)*			*(1.51)*			*(1.27)*			*(1.39)*			*(1.29)*

Net asset value, end of year		$20.28			$21.62			$21.53			$22.67			$20.64

Market price, end of year		$20.77			$20.87			$19.59			$23.69			$21.55
*Total return, based on NAV^2,3*		*(0.69)*	%		*7.70*	%		*0.63*	%		*17.12*	%		*2.96*	%
*Total return, based on Market Price⁴*		*5.49*	%		*14.69*	%		*(12.18)*	%		*17.28*	%		*10.40*	%

Net assets, end of year (000s)		$218,726			$232,706			$231,736			$243,472			$220,354

Ratios to average net assets:
Gross expenses		0.83	%		0.80	%		0.84	%		0.78	%		0.80	%
Net expenses		0.83			0.80			0.84			0.78			0.80
Net investment income		4.67			4.69			4.69			5.01			5.43

Portfolio turnover rate		43	%		38	%		68	%		82	%		49	%

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. Prior to January 1, 2012, the total return calculation assumed the reinvestment of all distributions in accordance with the Fund’s dividend reinvestment plan. 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.

See Notes to Financial Statements.


Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report		25

Notes to financial statements

1. Organization and significant accounting policies

Western Asset Investment Grade Defined Opportunity Trust Inc. (the “Fund”) was incorporated in Maryland on April 24, 2009 and is registered as a non-diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund’s primary investment objective is to provide current income and then to liquidate and distribute substantially all of the Fund’s net assets to stockholders on or about December 2, 2024. As a secondary investment objective, the Fund will seek capital appreciation. There can be no assurance the Fund will achieve its investment objectives. The Fund seeks to achieve its investment objectives by investing, under normal market conditions, at least 80% of its net assets in investment grade corporate fixed-income securities of varying maturities.

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


26		Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report

asset value, the Fund values these securities as determined in accordance with procedures approved by the Fund’s Board of Directors.

The Board of Directors is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Legg Mason North Atlantic Fund Valuation Committee (formerly, Legg Mason North American 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


Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report		27

Notes to financial statements (cont’d)

•

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

•

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

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

The following is a summary of the inputs used in valuing the Fund’s assets 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		—	$	206,070,691		—	$	206,070,691
Municipal bonds		—		802,939		—		802,939
Senior loans		—		885,689		—		885,689
Sovereign bonds		—		1,196,975		—		1,196,975
U.S. government & agency obligations		—		505,870		—		505,870
Common stocks	$	1,607,988		—		—		1,607,988
Convertible preferred stocks		1,047,320		—		—		1,047,320
Preferred stocks		3,332,825		—		—		3,332,825
Total long-term investments	$	5,988,133	$	209,462,164		—	$	215,450,297
Short-term investments†		576,862		—		—		576,862
Total investments	$	6,564,995	$	209,462,164		—	$	216,027,159
Other financial instruments:
Futures contracts	$	17,167		—		—	$	17,167
Forward foreign currency contracts		—	$	376,348		—		376,348
Centrally cleared interest rate swaps		—		53,220		—		53,220
Total other financial instruments	$	17,167	$	429,568		—	$	446,735
Total	$	6,582,162	$	209,891,732		—	$	216,473,894

LIABILITIES
Description	Quoted Prices (Level 1)		Other Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Other financial instruments:
Futures contracts	$	57,692		—		—	$	57,692
Forward foreign currency contracts		—	$	17,834		—		17,834
OTC credit default swaps on corporate issues — buy protection‡		—		20,811		—		20,811
Total	$	57,692	$	38,645		—	$	96,337

†	See Schedule of Investments for additional detailed categorizations.

‡	Values include any premiums paid or received with respect to swap contracts.


28		Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report

(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 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 forward foreign currency contracts to hedge against, or manage exposure to, foreign issuers or markets. The Fund may also enter 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


Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report		29

Notes to financial statements (cont’d)

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) 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, including to increase the Fund’s return. 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 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.


30		Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report

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 November 30, 2015, the Fund did not hold any credit default swaps to sell protection.

For average notional amounts of swaps held during the year ended November 30, 2015, 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 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 Notes to Financial Statements 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.


Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report		31

Notes to financial statements (cont’d)

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.

Interest rate swaps

The Fund enters into interest rate swap contracts to manage its exposure to interest rate risk. Interest rate swaps are agreements between two parties to exchange cash flows based on a notional principal amount. The Fund may elect to pay a fixed rate and receive a floating rate, or receive a fixed rate and pay a floating rate, on a notional principal amount. Interest rate swaps are marked-to-market daily based upon quotations from market makers and the change, if any, is recorded as an unrealized gain or loss in the Statement of Operations. When a swap contract is terminated early, the Fund records a realized gain or loss equal to the difference between the original cost and the settlement amount of the closing transaction.

The risks of interest rate swaps include changes in market conditions that will affect the value of the contract or changes in the present value of the future cash flow streams and the possible inability of the counterparty to fulfill its obligations under the agreement. The Fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive. This risk is mitigated by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty.

Total return swaps

The Fund enters into total return swaps for investment purposes. Total return swaps are agreements to exchange the return generated by one instrument for the return generated by another instrument. For example, the agreement to pay a predetermined or fixed interest rate in exchange for a market-linked return based on a notional amount. To the extent the total return of a referenced index or instrument exceeds the offsetting interest obligation, the Fund will receive a payment from the counterparty. To the extent it is less, the Fund will make a payment to the counterparty.

(f) 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


32		Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report

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.

(g) Unfunded loan commitments. The Fund may enter into certain credit agreements where 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 November 30, 2015, the Fund had sufficient cash and/or securities to cover these commitments.

(h) Credit and market risk. The Fund invests in high-yield instruments that are subject to certain credit and market risks. The yields of high-yield 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.

(i) 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.

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


Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report		33

Notes to financial statements (cont’d)

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 November 30, 2015, the Fund held forward foreign currency contracts and OTC credit default swaps with credit related contingent features which had a liability position of $38,645. 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.

(k) 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 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.


34		Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report

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.

(l) 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. 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 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.

(m) 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.

(n) 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.

(o) 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. However, due to the timing of when distributions are made by the Fund, the Fund may be subject to an excise tax of 4% of the amount by which 98% of the Fund’s annual taxable income and 98.2% of net realized gains exceed the distributions from such taxable income and realized gains for the calendar year. The Fund paid $108,644 of Federal excise taxes attributable to calendar year 2014 in March 2015. The Fund anticipates being subject to an excise tax for calendar year 2015 of approximately $146,000.

Management has analyzed the Fund’s tax positions taken on income tax returns for all open tax years and has concluded that as of November 30, 2015, 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.


Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report		35

Notes to financial statements (cont’d)

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

(p) 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:


	Undistributed Net Investment Income		Accumulated Net Realized Loss		Paid-in Capital
(a)	$	146,288		—	$	(146,288)
(b)		937,600	$	(937,600)		—

^(a)	Reclassifications are due to a non-deductible excise tax accrued by the Fund.

^(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.

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 Pte. Ltd. (“Western Singapore”), Western Asset Management Company Ltd (“Western Japan”) and Western Asset Management Company Limited (“Western Asset Limited”) are the Fund’s subadvisers. LMPFA, Western Asset, Western Singapore, Western Japan and Western Asset Limited 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 0.65% of the Fund’s average daily net assets.

LMPFA delegates to Western Asset the day-to-day portfolio management of the Fund. Western Singapore, Western Japan and Western Asset Limited provide certain subadvisory services to the Fund relating to currency transactions and investment in non-U.S. dollar denominated debt securities. For its services, LMPFA pays Western Asset 70% of the net management fee it receives from the Fund. In turn, Western Asset pays Western Singapore, Western Japan and Western Asset Limited a fee for their services at no additional expense to the Fund. Each of Western Singapore, Western Japan and Western Asset Limited receives a fee from Western Asset, payable monthly, in an amount equal to 70% of the Fund’s fee paid to LMPFA by the Fund related to the Fund’s assets that Western Asset allocates to Western Singapore, Western Japan and Western Asset Limited, respectively, to manage.

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


36		Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report

3. Investments

During the year ended November 30, 2015, 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	$	72,563,249	$	22,045,678
Sales		73,430,278		21,547,339

At November 30, 2015, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were as follows:


Gross unrealized appreciation	$	15,773,768
Gross unrealized depreciation		(4,919,209)
Net unrealized appreciation	$	10,854,559

At November 30, 2015, the Fund had the following open futures contracts:


	Number of Contracts		Expiration Date		Basis Value		Market Value		Unrealized Appreciation (Depreciation)
Contracts to Buy:
U.S. Treasury 2-Year Notes		8		3/16	$	1,740,417	$	1,740,375	$	(42)
U.S. Treasury Ultra Long-Term Bonds		21		3/16		3,310,021		3,327,188		17,167
										17,125
Contracts to Sell:
U.S. Treasury 5-Year Notes		93		3/16		11,028,557		11,037,211		(8,654)
U.S. Treasury 10-Year Notes		68		3/16		8,579,709		8,597,750		(18,041)
U.S. Treasury Long-Term Bonds		63		3/16		9,671,045		9,702,000		(30,955)
										(57,650)
Net unrealized depreciation on open futures contracts									$	(40,525)

At November 30, 2015, the Fund had the following open forward foreign currency contracts:

Currency
Purchased

Currency
Sold

Counterparty

Settlement
Date

Unrealized
Appreciation
(Depreciation)

EUR

1,010,000

USD

1,086,528

Bank of America N.A.

1/19/16

(17,802)

JPY

133,610,000

USD

1,086,384

Bank of America N.A.

1/19/16

725

USD

3,399,287

EUR

2,980,994

Bank of America N.A.

1/19/16

244,966

USD

1,137,725

JPY

136,070,000

Bank of America N.A.

1/19/16

30,601

USD

1,103,123

JPY

133,180,000

Bank of America N.A.

1/19/16

19,512

INR

123,400

USD

1,868

Citibank N.A.

1/19/16

(32)

USD

1,064,618

EUR

930,000

Citibank N.A.

1/19/16

80,544

Total

358,514


Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report		37

Notes to financial statements (cont’d)


Abbreviations used in this table:
EUR		— Euro
INR		— Indian Rupee
JPY		— Japanese Yen
USD		— United States Dollar

At November 30, 2015, the Fund had the following open swap contracts:

CENTRALLY CLEARED INTEREST RATE SWAPS

Central Counterparty

Notional
Amount

Termination
Date

Payments
Made by

the Fund†

Payments
Received by
the Fund†

Upfront
Premiums
Paid
(Received)

Unrealized
Appreciation

Chicago Mercantile Exchange

2,192,000

2/15/41

2.442% semi-annually

3-Month LIBOR

(9,993)

53,220


OTC CREDIT DEFAULT SWAPS ON CORPORATE ISSUES — BUY PROTECTION¹
Swap Counterparty (Reference Entity)	Notional Amount²		Termination Date		Implied Credit Spread at November 30, 2015³	Periodic Payments Made by the Fund†	Market Value		Upfront Premiums Paid (Received)		Unrealized Depreciation
Goldman Sachs Group Inc. (PPG Industries Inc., 6.650%, due 3/15/18)	$	856,423		3/20/19	0.257%	1.000% quarterly	$	(20,811)	$	(15,023)	$	(5,788)

If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or the underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or the underlying securities comprising the referenced index.

²	The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

Implied credit spreads, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end, serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads 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. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced entity or obligation.

†	Percentage shown is an annual percentage rate.

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 November 30, 2015.


ASSET DERIVATIVES¹
	Interest Rate Risk		Foreign Exchange Risk		Total
Futures contracts²	$	17,167		—	$	17,167
Centrally cleared swap contracts³		53,220		—		53,220
Forward foreign currency contracts		—	$	376,348		376,348
Total	$	70,387	$	376,348	$	446,735


38		Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report


LIABILITY DERIVATIVES¹
	Interest Rate Risk		Foreign Exchange Risk		Credit Risk		Total
Futures contracts²	$	57,692		—		—	$	57,692
OTC swap contracts⁴					$	20,811		20,811
Forward foreign currency contracts		—	$	17,834		—		17,834
Total	$	57,692	$	17,834	$	20,811	$	96,337

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).

²	Includes cumulative appreciation (depreciation) of futures contracts as reported in the footnotes. Only variation margin is reported within the receivables and/or payables on the Statement of Assets and Liabilities.

³	Includes cumulative appreciation (depreciation) of centrally cleared swap contracts as reported in the footnotes. Only variation margin is reported within the receivables and/or payables on the Statement of Assets and Liabilities.

⁴	Values include premiums paid (received) on swap contracts which are shown separately in the Statement of Assets and Liabilities.

The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the year ended November 30, 2015. 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		Equity Risk		Total
Futures contracts	$	(993,295)		—		—		—	$	(993,295)
Swap contracts		6,317		—	$	(8,707)	$	(44,361)		(46,751)
Forward foreign currency contracts¹		—	$	519,704		—		—		519,704
Total	$	(986,978)	$	519,704	$	(8,707)	$	(44,361)	$	(520,342)

¹	Net realized gain (loss) from forward foreign currency contracts is reported in net realized gain (loss) from foreign currency transactions in the Statement of Operations.


CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED
	Interest Rate Risk		Foreign Exchange Risk		Credit Risk		Total
Futures contracts	$	375,429		—		—	$	375,429
Swap contracts		53,220		—	$	24,634		77,854
Forward foreign currency contracts¹		—	$	219,696		—		219,696
Total	$	428,649	$	219,696	$	24,634	$	672,979

¹	The change in unrealized appreciation (depreciation) from forward foreign currency contracts is reported in the change in net unrealized appreciation (depreciation) from foreign currencies in the Statement of Operations.


Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report		39

Notes to financial statements (cont’d)

During the year ended November 30, 2015, the volume of derivative activity for the Fund was as follows:


	Average Market Value
Futures contracts (to buy)	$	4,587,870
Futures contracts (to sell)		27,644,620
Forward foreign currency contracts (to buy)		4,236,550
Forward foreign currency contracts (to sell)		7,458,567

	Average Notional Balance
Interest rate swap contracts	$	2,351,846
Credit default swap contracts (to buy protection)		2,302,577
Total return swap contracts†		369,229

†	At November 30, 2015, 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 November 30, 2015:


	Gross Amount of Derivative Assets in the Statement of Assets and Liabilities¹		Collateral Received		Net Amount
Futures contracts²	$	4,974		—	$	4,974
Forward foreign currency contracts		376,348		—		376,348
Total	$	381,322		—	$	381,322

The following table presents by financial instrument, the Fund’s derivative liabilities net of the related collateral pledged by the Fund at November 30, 2015:


	Gross Amount of Derivative Liabilities in the Statement of Assets and Liabilities¹		Collateral Pledged^3,4		Net Amount
Centrally cleared swap contracts²	$	6,938	$	(6,938)		—
OTC swap contracts		20,811		—	$	20,811
Forward foreign currency contracts		17,834		—		17,834
Total	$	45,583	$	(6,938)	$	38,645

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.

²	Amount represents the current day’s variation margin as reported in the Statement of Assets and Liabilities. It differs from the cumulative appreciation (depreciation) presented in the previous table.

³	Gross amounts are not offset in the Statement of Assets and Liabilities.

⁴	In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.


40		Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report

5. Distributions subsequent to November 30, 2015

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
12/18/15		12/24/15	$	0.1000
1/22/16		1/29/16	$	0.1000
2/19/16		2/26/16	$	0.1000

6. 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 period ended November 30, 2015, the Fund did not repurchase any shares.

7. Income tax information and distributions to shareholders

The tax character of distributions paid during the fiscal years ended November 30, was as follows:


	2015		2014
Distributions paid from:
Ordinary income	$	12,925,001	$	12,582,848
Net long-term capital gains		—		3,665,944
Total distributions paid	$	12,925,001	$	16,248,792

As of November 30, 2015, the components of accumulated earnings (losses) on a tax basis were as follows:


Undistributed ordinary income — net	$	2,183,303
Undistributed long-term capital gains — net		370,470
Total undistributed earnings	$	2,553,773
Other book/tax temporary differences^(a)		(390,308)
Unrealized appreciation (depreciation)^(b)		11,219,980
Total accumulated earnings (losses) — net	$	13,383,445

^(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 futures and foreign currency contracts 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.


Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report		41

Report of independent registered public accounting firm

The Board of Directors and Shareholders

Western Asset Investment Grade Defined Opportunity Trust Inc.:

We have audited the accompanying statement of assets and liabilities of Western Asset Investment Grade Defined Opportunity Trust Inc. (the “Fund”), including the schedule of investments, as of November 30, 2015, and the related statement of operations 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 November 30, 2015, 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 Investment Grade Defined Opportunity Trust Inc. as of November 30, 2015, the results of its operations 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

January 21, 2016


42		Western Asset Investment Grade Defined Opportunity Trust Inc. 2015 Annual Report

Board approval of management and subadvisory agreements (unaudited)

Background

The Investment Company Act of 1940, as amended (the “1940 Act”), requires that the Board of Directors (the “Board”) of Western Asset Investment Grade Defined Opportunity Trust Inc. (the “Fund”), including a majority of its members who are not considered to be “interested persons” under the 1940 Act (the “Independent Directors”) voting separately, approve on an annual basis the continuation of the investment management contract (the “Management Agreement”) with the Fund’s manager, Legg Mason Partners Fund Advisor, LLC (the “Manager”), and the sub-advisory agreements (individually, a “Sub-Advisory Agreement,” and collectively, the “Sub-Advisory Agreements”) with the Manager’s affiliates, Western Asset Management Company (“Western Asset”), Western Asset Management Company Pte. Ltd. in Singapore (“Western Asset Singapore”), Western Asset Management Company Ltd in Japan (“Western Asset Japan”) and Western Asset Management Company Limited in London (“Western Asset London”). Western Asset, Western Asset Singapore, Western Asset Japan, and Western Asset London collectively are hereinafter referred to as the “Sub-Advisers,” and Western Asset Singapore, Western Asset Japan and Western Asset London collectively are hereinafter referred to as the “Non-U.S. Sub-Advisers.” At a meeting (the “Contract Renewal Meeting”) held in-person on November 11 and 12, 2015, the Board, including the Independent Directors, considered and approved the continuation of each of the Management Agreement and the Sub-Advisory Agreements for an additional one-year term. To assist in its consideration of the renewals of the Management Agreement and the Sub-Advisory Agreements, the Board received and considered a variety of information (together with the information provided at the Contract Renewal Meeting, the “Contract Renewal Information”) about the Manager and the Sub-Advisers, as well as the management and sub-advisory arrangements for the Fund and the other closed-end funds in the same complex under the Board’s supervision (collectively, the “Legg Mason Closed-end Funds”), certain portions of which are discussed below. A presentation made by the Manager and Western Asset to the Board at the Contract Renewal Meeting in connection with its evaluations of the Management Agreement and the Sub-Advisory Agreements encompassed the Fund and other Legg Mason Closed-end Funds. In addition to the Contract Renewal Information, the Board received performance and other information throughout the year related to the respective services rendered by the Manager and the Sub-Advisers to the Fund. The Board’s evaluation took into account the information received throughout the year and also reflected the knowledge and familiarity gained as members of the Boards of the Fund and other Legg Mason Closed-end Funds with respect to the services provided to the Fund by the Manager and the Sub-Advisers.

The Manager provides the Fund with investment advisory and administrative services pursuant to the Management Agreement and the Sub-Advisers together provide, or in the case of the Non-U.S. Sub-Advisers help to provide, the Fund with certain investment sub-advisory services pursuant to the Sub-Advisory Agreements. The discussion below covers both the advisory and administrative functions being rendered by the Manager, each


Western Asset Investment Grade Defined Opportunity Trust Inc.		43

Board approval of management and subadvisory agreements (unaudited) (cont’d)

such function being encompassed by the Management Agreement, and the investment sub-advisory functions being rendered by the Sub-Advisers.

Board approval of management agreement and sub-advisory agreements

In its deliberations regarding renewal of the Management Agreement and the Sub-Advisory Agreements, the Board, including the Independent Directors, considered the factors below.

Nature, extent and quality of the services under the management agreement and sub-advisory agreements

The Board received and considered Contract Renewal Information regarding the nature, extent, and quality of services provided to the Fund by the Manager and the Sub-Advisers under the Management Agreement and the Sub-Advisory Agreements, respectively, during the past year. The Board also reviewed Contract Renewal Information regarding the Fund’s compliance policies and procedures established pursuant to the 1940 Act.

The Board reviewed the qualifications, backgrounds, and responsibilities of the Fund’s senior personnel and the portfolio management team primarily responsible for the day-to-day portfolio management of the Fund. The Board also considered, based on its knowledge of the Manager and its affiliates, the Contract Renewal Information and the Board’s discussions with the Manager and Western Asset at the Contract Renewal Meeting, the general reputation and investment performance records of the Manager, Western Asset and their affiliates and the financial resources available to the corporate parent of the Manager and the Sub-Advisers, Legg Mason, Inc. (“Legg Mason”), to support their activities in respect of the Fund and the other Legg Mason Closed-end Funds.

The Board reviewed the responsibilities of the Manager and the Sub-Advisers under the Management Agreement and the Sub-Advisory Agreements, respectively, including the Manager’s coordination and oversight of the services provided to the Fund by the Sub-Advisers and others and Western Asset’s coordination and oversight of the services provided to the Fund by the Non-U.S. Sub-Advisers. The Management Agreement permits the Manager to delegate certain of its responsibilities, including its investment advisory duties thereunder, provided that the Manager, in each case, will supervise the activities of the delegee. Pursuant to this provision of the Management Agreement, the Manager does not provide day-to-day portfolio management services to the Fund. Rather, portfolio management services for the Fund are provided by Western Asset pursuant to the Sub-Advisory Agreement (the “Western Asset Sub-Advisory Agreement”) between the Manager and Western Asset. The Western Asset Sub-Advisory Agreement permits Western Asset to delegate certain of its responsibilities, including its investment sub-advisory duties thereunder, provided that Western Asset, in each case, will supervise the activities of the delegee. Pursuant to this provision of the Western Asset Sub-Advisory Agreement, each Non-U.S. Sub-Adviser helps to provide certain investment sub-advisory services to the Fund pursuant to a separate Sub-Advisory Agreement with Western Asset.

In reaching its determinations regarding continuation of the Management Agreement and the Sub-Advisory Agreements, the Board took into account that Fund shareholders, in


44		Western Asset Investment Grade Defined Opportunity Trust Inc.

pursuing their investment goals and objectives, likely purchased their shares based upon the reputation and the investment style, philosophy and strategy of the Manager and Western Asset, as well as the resources available to the Manager and the Sub-Advisers.

The Board concluded that, overall, the nature, extent, and quality of the management and other services provided to the Fund under the Management Agreement and the Sub-Advisory Agreements have been satisfactory under the circumstances.

Fund performance

The Board received and considered performance information and analyses (the “Lipper Performance Information”) for the Fund, as well as for a group of funds (the “Performance Universe”) selected by Lipper, Inc. (“Lipper”), an independent provider of investment company data. The Board was provided with a description of the methodology Lipper used to determine the similarity of the Fund with the funds included in the Performance Universe. The Performance Universe included the Fund and all non-leveraged BBB-rated corporate debt closed-end funds, as classified by Lipper, regardless of asset size. The Performance Universe consisted of ten funds, including the Fund, for each of the 1-, 3- and 5-year periods ended June 30, 2015. The Board noted that it had received and discussed with the Manager and Western Asset information throughout the year at periodic intervals comparing the Fund’s performance against its benchmark and its peer funds as selected by Lipper.

The Lipper Performance Information comparing the Fund’s performance to that of the Performance Universe based on net asset value per share showed, among other things, that the Fund’s performance was ranked seventh among the funds in the Performance Universe for the 1-year period ended June 30, 2015 (first being best in these performance rankings) and was worse than the Performance Universe median. The Fund’s performance was ranked fifth among the funds in the Performance Universe for each of the 3- and 5-year periods ended June 30, 2015 and was better than the Performance Universe median. The Board noted that the small number of funds comprising the Performance Universe made meaningful performance comparisons difficult. The Manager noted, among other things, that the Fund’s performance for the 1-year period was adversely affected by its modest allocation to below-investment grade debt, which generally underperformed during the period. In addition to the Fund’s performance relative to the Performance Universe, the Board considered the Fund’s performance in absolute terms and the Fund’s performance relative to its benchmark for each of the 1-, 3- and 5-year periods ended June 30, 2015. On a net asset value basis, the Fund underperformed its benchmark for the 1-year period ended June 30, 2015 but outperformed its benchmark for the 3- and 5-year periods ended such date. The Manager noted that the Fund’s outperformance relative to its benchmark during the 3- and 5-year periods was significant — 179 basis points for the 3-year period and 139 basis points for the 5-year period.

Based on the reviews and discussions of Fund performance and considering other relevant factors, including those noted above, the Board concluded, under the circumstances, that continuation of the Management Agreement and the Sub-Advisory Agreements for an


Western Asset Investment Grade Defined Opportunity Trust Inc.		45

Board approval of management and subadvisory agreements (unaudited) (cont’d)

additional one-year period would be consistent with the interests of the Fund and its shareholders, especially in light of the Fund’s longer term performance.

Management fees and expense ratios

The Board reviewed and considered the management fee (the “Management Fee”) payable by the Fund to the Manager under the Management Agreement and the sub-advisory fees (the “Sub-Advisory Fees”) payable to the Sub-Advisers under the Sub-Advisory Agreements in light of the nature, extent and overall quality of the management, investment advisory and other services provided by the Manager and the Sub-Advisers. The Board noted that the Sub-Advisory Fees payable to Western Asset under the Western Asset Sub-Advisory Agreement are paid by the Manager, not the Fund, and, accordingly, that the retention of Western Asset does not increase the fees or expenses otherwise incurred by the Fund’s shareholders. Similarly, the Board noted that the Sub-Advisory Fees payable to each of the Non-U.S. Sub-Advisers under its Sub-Advisory Agreement with Western Asset are paid by Western Asset, not the Fund, and, accordingly, that the retention of such Non-U.S. Sub-Adviser does not increase the fees or expenses otherwise incurred by the Fund’s shareholders.

Additionally, the Board received and considered information and analyses prepared by Lipper (the “Lipper Expense Information”) comparing the Management Fee and the Fund’s overall expenses with those of funds in an expense group (the “Expense Group”) selected and provided by Lipper. The comparison was based upon the constituent funds’ latest fiscal years. The Expense Group consisted of the Fund and seven other non-leveraged BBB-rated corporate debt closed-end funds, as classified by Lipper. The eight funds in the Expense Group had average net common share assets ranging from $127.3 million to $234.1 million. One of the Expense Group funds was larger than the Fund and six were smaller.

The Lipper Expense Information, comparing the Management Fee as well as the Fund’s actual total expenses to the Fund’s Expense Group, showed, among other things, that the Fund’s Management Fee on a contractual basis was ranked eighth among the funds in the Expense Group (first being lowest and, therefore, best in these expense component rankings). The Fund’s actual Management Fee (i.e., giving effect to any voluntary fee waivers implemented by the Manager with respect to the Fund and by the managers of the other Expense Group funds) was ranked seventh among the Expense Group funds. The Lipper Expense Information further showed that the Fund’s actual total expenses ranked sixth among the Expense Group funds. Each of the expense components was worse (i.e., higher) than the Expense Group median for that expense component. In reviewing the Fund’s actual total expenses ranking, the Manager noted, among other things, that only one Expense Group fund other than the Fund included investment and tax expense in its reported actual total expenses. The Manager noted further that the Fund elected to pay an excise tax on undistributed earnings rather than making a special distribution, increasing Fund tax expense. The Board considered that the small number of funds in the Expense Group made meaningful expense comparisons difficult.


46		Western Asset Investment Grade Defined Opportunity Trust Inc.

The Board also reviewed Contract Renewal Information regarding fees charged by the Manager to other U.S. clients investing primarily in an asset class similar to that of the Fund, including, where applicable, institutional and separate accounts. The Board was advised that the fees paid by such institutional, separate account and other clients (collectively, “institutional clients”) generally are lower, and may be significantly lower, than the Management Fee. The Contract Renewal Information discussed the significant differences in scope of services provided to the Fund and to institutional clients. Among other things, institutional clients have fewer compliance, administration and other needs than the Fund and the Fund is subject not only to heightened regulatory requirements relative to institutional clients but also to requirements for listing on the New York Stock Exchange. The Contract Renewal Information noted further that the Fund is provided with administrative services, office facilities, Fund officers (including the Fund’s chief executive, chief financial and chief compliance officers), and that the Manager coordinates and oversees the provision of services to the Fund by other fund service providers. The Contract Renewal Information included information regarding management fees paid by open-end mutual funds in the same complex (the “Legg Mason Open-end Funds”) and such information indicated that the management fees paid by the Legg Mason Closed-end Funds generally were higher than those paid by the Legg Mason Open-end Funds. The Manager, in response to an inquiry from the Board as to the reasons for the fee differential, provided information as to differences between the services provided to the Fund and the other Legg Mason Closed-end Funds and the services provided to the Legg Mason Open-end Funds. The Board considered the fee comparisons in light of the different services provided in managing these other types of clients and funds.

Taking all of the above into consideration, the Board determined that the Management Fee and the Sub-Advisory Fees were reasonable in light of the nature, extent and overall quality of the management, investment advisory and other services provided to the Fund under the Management Agreement and the Sub-Advisory Agreements.

Manager profitability

The Board, as part of the Contract Renewal Information, received an analysis of the profitability to the Manager and its affiliates in providing services to the Fund for the Manager’s fiscal years ended March 31, 2015 and March 31, 2014. The Board also received profitability information with respect to the Legg Mason fund complex as a whole. In addition, the Board received Contract Renewal Information with respect to the Manager’s revenue and cost allocation methodologies used in preparing such profitability data. The profitability to each of the Sub-Advisers was not considered to be a material factor in the Board’s considerations since Western Asset’s Sub-Advisory Fees are paid by the Manager, not the Fund, and the Sub-Advisory Fees for the Non-U.S. Sub-Advisers are paid by Western Asset, not the Fund. The profitability analysis presented to the Board as part of the Contract Renewal Information indicated that profitability to the Manager was at a level that the Board did not consider to be excessive in light of judicial guidance and the nature, extent and overall quality of the investment advisory and other services provided to the Fund.


Western Asset Investment Grade Defined Opportunity Trust Inc.		47

Board approval of management and subadvisory agreements (unaudited) (cont’d)

Economies of scale

The Board received and discussed Contract Renewal Information concerning whether the Manager realizes economies of scale if the Fund’s assets grow. The Board noted that because the Fund is a closed-end fund with no current plans to seek additional assets beyond maintaining its dividend reinvestment plan, any significant growth in its assets generally will occur through appreciation in the value of the Fund’s investment portfolio, rather than sales of additional shares in the Fund. The Board determined that the Management Fee structure, which incorporates no breakpoints reducing the Management Fee at specified increased asset levels, was appropriate under present circumstances.

Other benefits to the manager and the sub-advisers

The Board considered other benefits received by the Manager, the Sub-Advisers and their affiliates as a result of their relationship with the Fund and did not regard such benefits as excessive.

* * * * * *

In light of all of the foregoing and other relevant factors, the Board determined, under the circumstances, that continuation of the Management Agreement and the Sub-Advisory Agreements would be consistent with the interests of the Fund and its shareholders and unanimously voted to continue each Agreement for a period of one additional year. No single factor reviewed by the Board was identified by the Board as the principal factor in determining whether to approve continuation of the Management Agreement and the Sub-Advisory Agreements, and each Board member attributed different weights to the various factors. The Independent Directors were advised by separate independent legal counsel throughout the process. Prior to the Contract Renewal Meeting, the Board received a memorandum prepared by the Manager discussing its responsibilities in connection with the proposed continuation of the Management Agreement and the Sub-Advisory Agreements as part of the Contract Renewal Information and the Independent Directors separately received a memorandum discussing such responsibilities from their independent counsel. Prior to voting, the Independent Directors also discussed the proposed continuation of the Management Agreement and the Sub-Advisory Agreements in private sessions with their independent legal counsel at which no representatives of the Manager or any Sub-Adviser were present.


48		Western Asset Investment Grade Defined Opportunity Trust Inc.

Additional information (unaudited)

Information about Directors and Officers

The business and affairs of Western Asset Investment Grade Defined Opportunity Trust 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.


Independent Directors^†:

Robert D. Agdern¹
Year of birth		1950
Position(s) held with Fund²		Director and Member of the Nominating and Audit Committees, Class III
Term of office² 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 (since 2002); 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)		31
Other board memberships held by Director during past five years		None

Carol L. Colman
Year of birth		1946
Position(s) held with Fund²		Director and Member of the Nominating and Audit Committees, Class I
Term of office² and length of time served		Since 2009
Principal occupation(s) during past five years		President, Colman Consulting Company (consulting)
Number of portfolios in fund complex overseen by Director (including the Fund)		31
Other board memberships held by Director during past five years		None

Daniel P. Cronin
Year of birth		1946
Position(s) held with Fund²		Director and Member of the Nominating and Audit Committees, Class I
Term of office² and length of time served		Since 2009
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)		31
Other board memberships held by Director during past five years		None


Western Asset Investment Grade Defined Opportunity Trust Inc.		49

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 Fund²		Director and Member of the Nominating and Audit Committees, Class I
Term of office² and length of time served		Since 2009
Principal occupation(s) during past five years		Emeritus Professor of French and Italian (since 2014) and formerly, Professor of French and Italian (2009 to 2014) at Drew University, formerly, Vice President and Dean of College of Liberal Arts at Drew University (1984 to 2009)
Number of portfolios in fund complex overseen by Director (including the Fund)		31
Other board memberships held by Director during past five years		None

Leslie H. Gelb
Year of birth		1937
Position(s) held with Fund²		Director and Member of the Nominating and Audit Committees, Class II
Term of office² and length of time served		Since 2009
Principal occupation(s) during past five years		President Emeritus and Senior Board Fellow (since 2003), The Council on Foreign Relations; formerly, 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)		31
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); Director, Encyclopedia Brittanica; Director, Centre Partners IV and V, LP and Affiliates

William R. Hutchinson
Year of birth		1942
Position(s) held with Fund²		Director and Member of the Nominating and Audit Committees, Class II
Term of office² and length of time served		Since 2009
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)		31
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)


50		Western Asset Investment Grade Defined Opportunity Trust Inc.


Independent Directors cont’d

Eileen A. Kamerick
Year of birth		1958
Position(s) held with Fund²		Director and Member of Nominating and Audit Committees, Class III
Term of office² and length of time served		Since 2013
Principal occupation(s) during past five years		Executive Vice President and Chief Financial Officer, ConnectWise, Inc. (software and services company) (since 2015) and Adjunct Professor, Washington University in St.· Louis and University of Iowa law schools (since 2014); formerly, CFO, Press Ganey Associates (health care informatics company) (2012 to 2014); formerly, Managing Director and CFO, Houlihan Lokey (international investment bank) (2010 to 2012)
Number of portfolios in fund complex overseen by Director (including the Fund)		31
Other board memberships held by Director during past five years		Director of Associated Banc-Corp (financial services company) (since 2007); Westell Technologies, Inc. (technology company) (since 2003)

Riordan Roett
Year of birth		1938
Position(s) held with Fund²		Director and Member of the Nominating and Audit Committees, Class III
Term of office² and length of time served		Since 2009
Principal occupation(s) during past five years		The Sarita and Don Johnston Professor of Political Science and Director of Western Hemisphere 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)		31
Other board memberships held by Director during past five years		None


Western Asset Investment Grade Defined Opportunity Trust Inc.		51

Additional information (unaudited) (cont’d)

Information about Directors and Officers


Interested Director and Officer:

Jane Trust, CFA³
Year of birth		1962
Position(s) held with Fund²		Director, Chairman, President and Chief Executive Officer, Class II
Term of office² 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 2015); Officer and/or Trustee/Director of 158 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); formerly, Director of ClearBridge, LLC (formerly, Legg Mason Capital Management, LLC) (2007 to 2014); formerly, Managing Director of Legg Mason Investment Counsel & Trust Co. (2000 to 2007)
Number of portfolios in fund complex overseen by Director (including the Fund)		149
Other board memberships held by Director during past five years		None

Additional Officers:

Ted P. Becker Legg Mason 620 Eighth Avenue, 49th Floor, New York, NY 10018
Year of birth		1951
Position(s) held with Fund²		Chief Compliance Officer
Term of office² and length of time served		Since 2009
Principal occupation(s) during past five years		Director of Global Compliance at Legg Mason (since 2006); Chief Compliance Officer of LMPFA (since 2006); Managing Director of Compliance of Legg Mason & Co. (since 2005); Chief Compliance Officer of certain mutual funds associated with Legg Mason & Co. or its affiliates (since 2006) and Legg Mason & Co. predecessors (prior to 2006)

Jenna Bailey Legg Mason 100 First Stamford Place, 6th Floor, Stamford, CT 06902
Year of birth		1978
Position(s) held with Fund²		Identity Theft Prevention Officer
Term of office² 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); formerly, Risk Manager of U.S. Distribution of Legg Mason & Co. (2007 to 2011)


52		Western Asset Investment Grade Defined Opportunity Trust 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 Fund²		Secretary and Chief Legal Officer
Term of office² and length of time served		Since 2009
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 Fund²		Assistant Secretary
Term of office² and length of time served		Since 2009
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 Fund²		Principal Financial Officer
Term of office² 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); formerly, 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 Investment Grade Defined Opportunity Trust Inc.		53

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 Fund²		Treasurer
Term of office² 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); formerly, 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 Fund²		Senior Vice President
Term of office² and length of time served		Since 2009
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”).

¹	Effective January 1, 2015, Mr. Agdern became a Director.

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 2016, year 2017 and year 2018, 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.

³	Effective August 1, 2015, Ms. Trust became a Director. In addition, 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.


54		Western Asset Investment Grade Defined Opportunity Trust 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 Investment Grade Defined Opportunity Trust Inc.		55

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.


56		Western Asset Investment Grade Defined Opportunity Trust Inc.

Dividend reinvestment plan (unaudited)

Unless you elect to receive distributions in cash (i.e., opt-out), all dividends, including any capital gain dividends, on your Common Stock will be automatically reinvested by American Stock Transfer & Trust Company LLC, 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 American Stock Transfer & Trust Company LLC, 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 on the record date (or, if the record date is not a NYSE trading day, the immediately preceding trading day) for determining stockholders eligible to receive the relevant dividend or distribution (the “determination date”) is equal to or exceeds 98% of the net asset value per share of the Common Stock, the Fund will issue new Common Stock at a price equal to the greater of (a) 98% of the net asset value per share at the close of trading on the NYSE on the determination date or (b) 95% of the market price per share of the Common Stock on the determination date.

(2) If 98% of the net asset value per share of the Common Stock exceeds the market price of the Common Stock on the determination 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 determination date and terminating no later than the earlier of (a) 30 days after the dividend or distribution payment date, or (b) the record 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 rises so that it equals or exceeds 98% of the net asset value per share of the Common Stock at the close of trading on the NYSE 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 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) 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.

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 6201 15th Avenue, Brooklyn, New York 11219 or by calling the Plan Agent at 1-888-888-0151. Such withdrawal will be effective immediately if notice is received by the


Western Asset Investment Grade Defined Opportunity Trust Inc.		57

Dividend reinvestment plan (unaudited) (cont’d)

Plan Agent not less than ten business days prior to any dividend or distribution record date; 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. The Plan may be terminated 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 is to be effective. Upon any termination, you will be sent a certificate or certificates for the full number of shares of Common Stock held for you under the Plan and cash for any fractional share of Common Stock. 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. You will be charged a 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 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. 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.


58		Western Asset Investment Grade Defined Opportunity Trust Inc.

Important tax information (unaudited)

The following information is provided with respect to the distributions paid during the taxable year ended November 30, 2015:


Record date:	Monthly		2/20/2015		Monthly
Payable date:	December 2014 - January 2015		2/27/2015		March 2015 - November 2015
Ordinary income:
Qualified dividend income for individuals	3.90	%	3.91	%	4.59	%
Dividends qualifying for the dividends
received deduction for corporations	3.90	%	3.90	%	4.24	%

Please retain this information for your records.


Western Asset Investment Grade Defined Opportunity Trust Inc.		59

Western Asset

Investment Grade Defined Opportunity Trust 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

Ted P. Becker

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 August 1, 2015, Ms. Trust became a Director, Chairman, President and Chief Executive Officer.

Western Asset Investment Grade Defined Opportunity Trust 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 Ltd

Western Asset Management Company Pte. Ltd.

Custodian

State Street Bank and Trust Company

1 Lincoln Street Boston, MA 02111

Transfer agent

American Stock Transfer & Trust Company 6201 15th Avenue Brooklyn, NY 11219

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

IGI

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-ends 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 Investment Grade Defined Opportunity Trust 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 related to portfolio transactions are available (1) without charge, upon request, by calling 1-888-777-0102, (2) on the Fund’s website 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 Investment Grade Defined Opportunity Trust 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.

American Stock

Transfer & Trust Company

6201 15th Avenue

Brooklyn, NY 11219

WASX012164 1/16 SR15-2670

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 last two fiscal years ending November 30, 2014 and November 30, 2015 (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 $53,400 in 2014 and $53,900 in 2015.

b) Audit-Related Fees. The aggregate fees billed in the Reporting Period for assurance and related services by the Auditor that are reasonably related to the performance of the Registrant’s financial statements were $0 in 2014 and $0 in 2015.

In addition, there were no Audit-Related Fees billed in the Reporting Period for assurance and related services by the Auditor to the Registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Western Asset Investment Grade Defined Opportunity Trust Inc. “service affiliates”), that were reasonably related to the performance of the annual audit of the service affiliates. Accordingly, there were no such fees that required pre-approval by the Audit Committee for the Reporting Periods (prior to August 6, 2003 services provided by the Auditor were not required to be pre-approved).

(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 $3,840 in 2014 and $3,880 in 2015. 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 Investment Grade Defined Opportunity Trust 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 Investment Grade Defined Opportunity Trust Inc. requiring pre-approval by the Audit Committee in the Reporting Period.

(e) Audit Committee’s pre-approval policies and procedures described in paragraph (c) (7) of Rule 2-01 of Regulation S-X.

(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 Investment Grade Defined Opportunity Trust Inc., the percentage of fees that were approved by the audit committee, with respect to: Audit-Related Fees were 100% and 100% for 2014 and 2015; Tax Fees were 100% and 100% for 2014 and 2015; and Other Fees were 100% and 100% for 2014 and 2015.

(f) N/A

(g) Non-audit fees billed by the Auditor for services rendered to Western Asset Investment Grade Defined Opportunity Trust Inc., LMPFA and any entity controlling, controlled by, or under common control with LMPFA that provides ongoing services to Western Asset Investment Grade Defined Opportunity Trust Inc. during the reporting period were $0 in 2015.

(h) Yes. Western Asset Investment Grade Defined Opportunity Trust 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 Investment Grade Defined Opportunity Trust 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) 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

William R. Hutchinson

Paolo M. Cucchi

Daniel P. Cronin

Carol L. Colman

Leslie H. Gelb

Eileen A. Kamerick

Dr. Riordan Roett

b) Not applicable

ITEM 6. SCHEDULE OF INVESTMENTS.

Included herein under Item 1.

ITEM 7. PROXY VOTING – LMPFA & Western Asset Management Company (and affiliates)

Proxy Voting Guidelines and Procedures

Legg Mason Partners Fund Advisor, LLC (“LMPFA”) delegates the responsibility for voting proxies for the fund to the subadviser through its contracts with the subadviser. The subadviser will use its own proxy voting policies and procedures to vote proxies. Accordingly, LMPFA does not expect to have proxy-voting responsibility for the fund. Should LMPFA become responsible for voting proxies for any reason, such as the inability of the subadviser to provide investment advisory services, LMPFA shall utilize the proxy voting guidelines established by the most recent subadviser to vote proxies until a new subadviser is retained.

The subadviser’s Proxy Voting Policies and Procedures govern in determining how proxies relating to the fund’s portfolio securities are voted and are provided below. Information regarding how each fund voted proxies (if any) relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge (1) by calling 888-777-0102, (2) on the fund’s website at http://www.lmcef.com and (3) on the SEC’s website at http://www.sec.gov.

Background

As a fixed income only manager, the occasion to vote proxies is very rare. However, Western Asset Management Company (“WA”), Western Asset Management Company Limited (“WAML”), Western Asset Management Company Ltd. (“WAMCL”) and Western Asset Management Company Pte. Ltd. (“WAMC”)

(together “Western Asset”) 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 may so consult and agree with each other) regarding the voting of any securities owned by its clients.

Policy

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:

a. Proxies are reviewed to determine accounts impacted.

b. Impacted accounts are checked to confirm Western Asset voting authority.

c. 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.)

d. 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.

e. 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.

f. 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. A copy of Western Asset’s policies and procedures.

b. Copies of proxy statements received regarding client securities.

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

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

e. 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, the WAMCL 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:

1. 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:

a. 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.

b. 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.

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

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

2. 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:

a. 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.

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

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

d. 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. PORTFOLIO MANAGERS 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 2014	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 2009	Co-portfolio manager of the fund; Head of Credit of Western Asset since 2005; Managing Director and head of U.S. Credit Products from 2003-2005 at Credit Suisse Asset Management

Ryan Brist Western Asset 385 East Colorado Blvd Pasadena, CA 91101	Since 2009	Co-portfolio manager of the fund; Head of U.S. Investment Grade Credit of Western Asset since 2009; Chief Investment Officer and Portfolio Manager of Logan Circle Partners 2007-2009);Co-Chief Investment Officer and Senior Portfolio Manager at Delaware Investment Advisors (2000-2007)

(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 November 30, 2015.

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		109	$	186.3 billion		None		None
	Other Pooled Vehicles		272	$	86.0 billion		8	$	1.5 billion
	Other Accounts		624	$	173.7 billion		57	$	18.0 billion
Ryan Brist‡	Other Registered Investment Companies		8	$	2.0 billion		None		None
	Other Pooled Vehicles		23	$	14.6 billion		None		None
	Other Accounts		53	$	20.2 billion		3	$	650 million
Michael Buchanan‡	Other Registered Investment Companies		43	$	40.0 billion		None		None
	Other Pooled Vehicles		77	$	35.8 billion		4	$	1.2 billion
	Other Accounts		190	$	51.2 billion		21	$	7.9 billion

‡

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

Conflicts of Interest

The manager, the subadviser and investment professionals have interests which conflict with the interests of the fund. There is no guarantee that the policies and procedures adopted by the manager, the subadviser and the fund will be able to identify or mitigate these conflicts of interest.

Some examples of material conflicts of interest include:

Allocation of Limited Time and Attention. An investment professional who is responsible for managing multiple funds and/or accounts may devote unequal time and attention to the management of those funds and/or accounts. An investment professional may not be able to formulate as complete a strategy or identify equally attractive investment opportunities for each of those funds and accounts as might be the case if he or she were to devote substantially more attention to the management of a single fund. Such an investment professional may make general determinations across multiple funds, rather than tailoring a unique approach for each fund. The effects of this conflict may be more pronounced where funds and/or accounts overseen by a particular investment professional have different investment strategies.

Allocation of Limited Investment Opportunities; Aggregation of Orders. If an investment professional identifies a limited investment opportunity that may be suitable for multiple funds and/or accounts, the opportunity may be allocated among these several funds or accounts, which may limit the fund’s ability to take full advantage of the investment opportunity. Additionally, the subadviser may aggregate transaction orders for multiple accounts for purpose of execution. Such aggregation may cause the price or brokerage costs to be less favorable to a particular client than if similar transactions were not being executed concurrently for other accounts. In addition, the subadviser’s trade allocation policies may result in the fund’s orders not being fully executed or being delayed in execution.

Pursuit of Differing Strategies. At times, an investment professional may determine that an investment opportunity may be appropriate for only some of the funds and/or accounts for which he or she exercises investment responsibility, or may decide that certain of the funds and/or accounts should take differing positions with respect to a particular security. In these cases, the investment professional may place separate transactions for one or more funds or accounts which may affect the market price of the security or the execution of the transaction, or both, to the detriment or benefit of one or more other funds and/or accounts. For example, an investment professional may determine that it would be in the interest of another account to sell a security that the fund holds long, potentially resulting in a decrease in the market value of the security held by the fund.

Cross Trades. Investment professionals may manage funds that engage in cross trades, where one of the manager’s funds or accounts sells a particular security to another fund or account managed by the same manager. Cross trades may pose conflicts of interest because of, for example, the possibility that one account sells a security to another account at a higher price than an independent third party would pay or otherwise enters into a transaction that it would not enter into with an independent party, such as the sale of a difficult-to-obtain security.

Selection of Broker/Dealers. Investment professionals may select or influence the selection of the brokers and dealers that are used to execute securities transactions for the funds and/or accounts that they supervise. In addition to executing trades, some brokers and dealers provide the subadviser with brokerage and research services, These services may be taken into account in the selection of brokers and dealers whether a broker is being selected to effect a trade on an agency basis for a commission or (as is normally the case for the funds) whether a dealer is being selected to effect a trade on a principal basis. This may result in the payment of higher brokerage fees and/or execution at a less favorable price than might have otherwise been available. The services obtained may ultimately be more beneficial to certain of the manager’s funds or accounts than to others (but not necessarily to the funds that pay the increased commission or incur the less favorable execution). A decision as to the selection of brokers and dealers could therefore yield disproportionate costs and benefits among the funds and/or accounts managed.

Variation in Financial and Other Benefits. A conflict of interest arises where the financial or other benefits available to an investment professional differ among the funds and/or accounts that he or she manages. If the amount or structure of the investment manager’s management fee and/or an investment professional’s compensation differs among funds and/or accounts (such as where certain funds or accounts pay higher management fees or performance-based management fees), the investment professional might be motivated to help certain funds and/or accounts over others. Similarly, the desire to maintain assets under management or to enhance the investment professional’s performance record or to derive other rewards, financial or otherwise, could influence the investment professional in affording preferential treatment to those funds and/or accounts that could most significantly benefit the investment professional. An investment professional may, for example, have an incentive to allocate favorable or limited opportunity investments or structure the timing of investments to favor such funds and/or accounts. Also, an investment professional’s or the manager’s or the subadviser’s desire to increase assets under management could influence the investment professional to keep a fund open for new investors without regard to potential benefits of closing the fund to new investors. Additionally, the investment professional might be motivated to favor funds and/or accounts in which he or she has an ownership interest or in which the investment manager and/or its affiliates have ownership interests. Conversely, if an investment professional does not personally hold an investment in the fund, the investment professional’s conflicts of interest with respect to the fund may be more acute.

Related Business Opportunities. The investment manager or its affiliates may provide more services (such as distribution or recordkeeping) for some types of funds or accounts than for others. In such cases, an investment professional may benefit, either directly or indirectly, by devoting disproportionate attention to the management of funds and/or accounts that provide greater overall returns to the investment manager and its affiliates.

(a)(4): Investment Professional Securities Ownership

The table below identifies the dollar range of securities beneficially owned by each investment professional as of November 30, 2015.


		Dollar Range of
Investment Professional(s)		Portfolio Securities Beneficially Owned
S. Kenneth Leech		A
Michael C. Buchanan		A
Ryan Brist		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.

None.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None.

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 Investment Grade Defined Opportunity Trust Inc.


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

Date:		January 22, 2016

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


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

Date:		January 22, 2016

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

Date:		January 22, 2016