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SALOMON BROTHERS
2008 WORLDWIDE DOLLAR
GOVERNMENT TERM TRUST INC
INTERIM REPORT
APRIL 30, 1996
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SALOMON BROTHERS ASSET MANAGEMENT
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SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
June 28, 1996
Dear Shareholders:
We are pleased to provide this interim report for the Salomon Brothers 2008
Worldwide Dollar Government Term Trust Inc (the "Trust"), including market
commentary and a statement of the Trust's current investments.
During the fiscal quarter ended April 30, 1996, the net asset value for the
Trust decreased from $9.20 per share at January 31, 1996 to $8.61 per share at
April 30, 1996. Dividends of $0.219 per share were declared during the quarter.
Assuming that these dividends were reinvested in additional shares of the Trust,
the net asset value return for the quarter ended April 30, 1996 was negative
3.99%. During the same period, the Salomon Brothers Brady Bond Index returned
0.66%, while the Salomon Brothers Mortgage Index declined by 1.59%.
On April 30, 1996, the portfolio of the Trust was divided principally between
emerging markets debt (approximately 60% of total investments), mortgage-backed
securities (35%) and municipal zero-coupon bonds (4%).
EMERGING MARKETS
After a difficult start, emerging markets turned in a strong performance in the
quarter ended April 30. In March and early April, uncertainty about U.S.
interest rates rattled domestic and foreign debt markets. By the end of the
period, however, U.S. rates moved into a trading range and individual country
fundamentals began to have a dominant impact on performance. Three positive
developments -- Venezuela's agreement with the International Monetary Fund,
Standard & Poor's two-notch upgrade of Poland's debt to investment grade and
Mexico's Brady Bond swap offering -- set the stage for the market's upswing in
April.
MORTGAGE-BACKED BONDS
The mortgage-backed securities market declined in absolute terms in the quarter
ended April 30, but these bonds outperformed U.S. Treasuries in each of the past
three months. For the quarter, low duration and high coupons made premium coupon
mortgage pass-throughs the best absolute performers. Rising interest rates,
varying lag times and seasonal increases in home sales were the dominant factors
affecting prepayments by April. In our opinion, prepayment speeds, a measure of
the number of mortgage holders who are refinancing or completing their mortgage
obligations, will remain fairly strong for discount bonds, while prepayments for
premium bonds should drop sharply.
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SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
We appreciate your continued interest in the Trust. A recorded periodic update
of the developments affecting the markets in which the Trust invests, as well as
top holdings, net asset value, performance and other information is available by
calling (800) 725-6666.
Sincerely,
/s/ MICHAEL S. HYLAND
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MICHAEL S. HYLAND
Chairman and President
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SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
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STATEMENT OF INVESTMENTS
April 30, 1996 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) SOVEREIGN BONDS -- 85.3% VALUE
------------------------------------------------------------------------------------------------------------
<C> <S> <C>
ARGENTINA -- 16.9%
$28,000 Republic of Argentina, Discount Bond, 6.5625%, 3/31/23*....................... $ 19,302,500
12,375 Republic of Argentina, FRB, 6.3125%, 3/31/05*................................. 9,466,875
39,500 Republic of Argentina, Par Bond, 5.25%, 3/31/23*.............................. 21,502,812
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50,272,187
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BRAZIL -- 18.7%
6,830 Federal Republic of Brazil, C Bond, 8.00%, 4/15/14**.......................... 4,106,475
9,500 Federal Republic of Brazil, Discount Bond, Series ZL, 6.50%, 4/15/24*......... 6,430,312
5,000 Federal Republic of Brazil, Investment (Exit) Bond, 6.00%, 9/15/13............ 2,978,125
698 Federal Republic of Brazil, IDU, 6.375%, 1/01/01*............................. 641,700
2,000 Federal Republic of Brazil, NMB, 6.5625%, 4/15/09*............................ 1,383,750
76,000 Federal Republic of Brazil, Par Bond, 5.00%, 4/15/24*......................... 39,995,000
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55,535,362
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BULGARIA -- 4.9%
16,000 Republic of Bulgaria, Discount Bond, Series A, 6.25%, 7/28/24*................ 8,040,000
13,000 Republic of Bulgaria, FLIRB, Series A, 2.00%, 7/28/12*........................ 3,900,000
5,750 Republic of Bulgaria, IAB, 6.25%, 7/28/11*.................................... 2,587,500
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14,527,500
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COSTA RICA -- 1.9%
9,000 Costa Rica, Principal Bond, Series B, 6.25%, 5/21/15.......................... 5,670,000
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ECUADOR -- 10.1%
34,000 Republic of Ecuador, Discount Bond, 6.0625%, 2/28/25*......................... 19,103,750
25,122 Republic of Ecuador, PDI Bond, 6.0625%, 2/28/15*,**........................... 10,942,366
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30,046,116
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MEXICO -- 6.0%
4,000 United Mexican States, Par Bond, Series A, 6.25%, 12/31/19
(including 4,000,000 rights)................................................ 2,645,000
23,000 United Mexican States, Par Bond, Series B, 6.25%, 12/31/19
(including 23,000,000 rights)............................................... 15,208,750
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17,853,750
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PHILIPPINES -- 4.1%
15,500 Republic of the Philippines, Par Bond, Series B, 6.25%, 12/01/17*............. 12,264,375
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</TABLE>
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SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
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STATEMENT OF INVESTMENTS (continued)
April 30, 1996 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) SOVEREIGN BONDS (CONCLUDED) VALUE
------------------------------------------------------------------------------------------------------------
<C> <S> <C>
POLAND -- 11.2%
$ 3,500 Republic of Poland, PDI Bond, 3.75%, 10/27/14*................................ $ 2,684,063
55,000 Republic of Poland, RSTA Par Bond, 2.75%, 10/27/24*........................... 30,525,000
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33,209,063
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URUGUAY -- .7%
3,000 Uruguay, Par Bond, Series A, 6.75%, 2/19/21
(including 3,000,000 rights)................................................ 2,028,750
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VENEZUELA -- 10.8%
25,000 Republic of Venezuela, Discount Bond, Series A, 6.375%, 3/31/20*
(including 178,500 warrants)................................................ 15,843,750
8,000 Republic of Venezuela, FLIRB, Series A, 6.375%, 3/31/07*...................... 5,297,500
13,000 Republic of Venezuela, Par Bond, Series A, 6.75%, 3/31/20
(including 100,000 warrants)................................................ 7,621,250
5,500 Republic of Venezuela, Par Bond, Series B, 6.75%, 3/31/20
(including 27,500 warrants)................................................. 3,224,375
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31,986,875
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TOTAL SOVEREIGN BONDS (cost $241,753,048)..................................... 253,393,978
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MORTGAGE-BACKED SECURITIES -- 49.2%
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Federal Home Loan Mortgage Corp.,
49,000# Gold, 6.50%, 30 Year (TBA).................................................. 46,014,062
10,623 Series 1576, Class PK, 6.00%, 9/15/02 (PAC I/O)............................. 572,663
25,662 Series 1599, Class D, 6.50%, 6/15/19 (PAC I/O).............................. 3,721,025
23,688 Series 1609, Class J, 6.50%, 11/15/13 (PAC I/O)............................. 1,702,603
9,219 Series 1610, Class PH, 6.50%, 3/15/19 (PAC I/O)............................. 1,112,009
17,121 Series 1617, Class PF, 6.50%, 6/15/18 (PAC I/O)............................. 1,840,466
11,792 Series 1679, Class WA, 6.00%, 2/15/03 (PAC I/O)............................. 674,350
Federal National Mortgage Assoc.,
78,000# 6.50%, 30 Year (TBA)........................................................ 73,149,375
10,000# 8.00%, 30 Year (TBA)........................................................ 10,096,878
13,898 Trust 1993-169, Class QA, 6.50%, 8/25/12, (REMIC) (PAC I/O)................. 790,460
18,990 Trust 1993-183, Class EA, 6.50%, 3/25/17, (REMIC) (PAC I/O)................. 2,005,134
13,570 Trust 1993-183, Class EC, 6.50%, 3/25/13, (REMIC) (PAC I/O)................. 891,401
</TABLE>
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SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
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STATEMENT OF INVESTMENTS (continued)
April 30, 1996 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MORTGAGE-BACKED SECURITIES (CONCLUDED) VALUE
------------------------------------------------------------------------------------------------------------
<C> <S> <C>
$11,233 Trust 1993-189, Class PH, 6.50%, 2/25/19, (REMIC) (PAC I/O)................. $ 1,330,422
32,450 Trust 1993-202, Class Q, 6.50%, 11/25/13, (REMIC) (PAC I/O)................. 2,180,265
1,994 Trust 1993-209, Class PA, 6.00%, 11/25/99, (REMIC) (PAC I/O)................ 23,676
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TOTAL MORTGAGE-BACKED SECURITIES (cost $151,678,186).......................... 146,104,789
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ZERO-COUPON MUNICIPAL BONDS -- 6.2%
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11,200 Austin, Texas Utility System Revenue, Ser. A, 11/15/08........................ 5,467,616
Edinburg, Texas Cons. Independent School District,
1,845 2/15/08..................................................................... 940,156
2,705 2/15/09..................................................................... 1,285,714
Harris County, Texas,
5,470 8/15/08..................................................................... 2,708,799
Texas St. Public Finance Auth. Bldg. Rev.,
10,535 2/1/08...................................................................... 5,442,065
Westmoreland County, Pennsylvania,
2,665 Series G, 6/1/08............................................................ 1,347,930
2,515 Series G, 12/1/08........................................................... 1,236,701
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TOTAL ZERO-COUPON MUNICIPAL BONDS (cost $19,245,605).......................... 18,428,981
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</TABLE>
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SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
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STATEMENT OF INVESTMENTS (concluded)
April 30, 1996 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) REPURCHASE AGREEMENT -- 1.1% VALUE
------------------------------------------------------------------------------------------------------------
<C> <S> <C>
$ 3,288 J.P. Morgan, 5.30%, cost $3,288,000, dated 4/30/96, $3,288,484 due 5/1/96,
(collateralized by $2,962,000, 8.125%, U.S. Treasury Notes due 8/15/19,
valued at $3,354,465)....................................................... $ 3,288,000
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TOTAL INVESTMENTS -- 141.8% (cost $415,964,839)............................... 421,215,748
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LIABILITIES IN EXCESS OF OTHER ASSETS -- (41.8%).............................. (124,112,771)
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NET ASSETS -- 100.0%.......................................................... $ 297,102,977
============
NET ASSET VALUE PER SHARE
($297,102,977 / 34,510,639 shares of common stock issued and outstanding)..... $8.61
====
</TABLE>
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<TABLE>
<C> <S>
* Rate shown reflects current rate on variable rate instrument or instrument with step coupon rates.
** Payment-in-kind security for which part of the interest earned is capitalized as additional principal.
# Mortgage dollar roll.
FLIRB -- Front Loaded Interest Reduction Bond.
FRB -- Floating Rate Bond.
IAB -- Interest in Arrears Bond.
IDU -- Interest Due and Unpaid.
NMB -- New Money Bond.
PAC I/O -- Planned Amortization Class -- Interest Only.
PDI -- Past Due Interest.
REMIC -- Real Estate Mortgage Investment Conduit.
RSTA -- Restructured Trade Agreement.
TBA -- To Be Announced Security.
</TABLE>
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SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
DIRECTORS
CHARLES F. BARBER
Consultant; formerly Chairman,
ASARCO Incorporated
THOMAS W. BROCK
Chairman and Chief Executive Officer,
Salomon Brothers Asset Management Inc
DANIEL P. CRONIN
Vice President -- General Counsel,
Pfizer International Inc.
ALLAN C. HAMILTON
Consultant; formerly
Vice President and
Treasurer, Exxon Corp.
MICHAEL S. HYLAND
Managing Director, Salomon Brothers Inc
President, Salomon Brothers
Asset Management Inc
RIORDAN ROETT
Professor and Director,
Latin American Studies Program,
Paul H. Nitze School of
Advanced International Studies,
Johns Hopkins University
JESWALD W. SALACUSE
Henry J. Braker
Professor of Commercial Law,
The Fletcher School of Law & Diplomacy,
Tufts University
OFFICERS
MICHAEL S. HYLAND
Chairman and President
STEVEN GUTERMAN
Executive Vice President
PETER J. WILBY
Executive Vice President
LAWRENCE H. KAPLAN
Executive Vice President
and General Counsel
ALAN M. MANDEL
Treasurer
LAURIE A. PITTI
Assistant Treasurer
TANA E. TSELEPIS
Secretary
JENNIFER MUZZEY
Assistant Secretary
SALOMON BROTHERS
2008 WORLDWIDE DOLLAR
GOVERNMENT TERM TRUST INC
Seven World Trade Center
New York, New York 10048
For information call (toll free)
1-800-SALOMON
INVESTMENT ADVISER AND ADMINISTRATOR
Salomon Brothers Asset Management Inc
Seven World Trade Center
New York, New York 10048
SUB-ADMINISTRATOR
Prudential Mutual Fund Management, Inc.
One Seaport Plaza
New York, New York 10292
CUSTODIAN
Investors Bank and Trust Company
89 South Street, P.O. Box 1537
Boston, MA 02205-1537
TRANSFER AGENT
American Stock Transfer & Trust Company
40 Wall Street
New York, New York 10005
LEGAL COUNSEL
Simpson Thacher & Bartlett
425 Lexington Avenue
New York, New York 10017
NEW YORK STOCK EXCHANGE SYMBOL
SBG
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Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Trust may purchase, from time to time, shares of
its common stock at market prices.
- ---------------------------------------------------
This report is for stockholder information.
This is not a prospectus intended for use in
the purchase or sale of Trust shares.
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BULK RATE
U.S. POSTAGE
PAID
STATEN ISLAND, NY
PERMIT NO.
169
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AMERICAN STOCK TRANSFER & TRUST COMPANY
40 WALL STREET
NEW YORK, NEW YORK 10005
