Western Asset Variable Rate Strategic Fund Inc. (the Fund) is a non-diversified, closed-end management investment company. The Fund's primary investment objective is to maintain a high level of current income. It invests in high-yield and emerging market instruments. The Fund's portfolio includes collateralized mortgage obligations, corporate bonds and notes, mortgage-backed securities, asset-backed securities, term loans, sovereign bonds and short-term investments. The Fund invests in stripped securities. Legg Mason Partners Fund Advisor, LLC (LMPFA) is the Fund's investment manager, and Western Asset Management Company (Western Asset) and Western Asset Management Company Limited (Western Asset Limited) are the Fund's sub-advisers. LMPFA, Western Asset and Western Asset Limited are wholly owned subsidiaries of Legg Mason, Inc.