<PAGE> 1
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
March 22, 1996
Dear Shareholders:
We are pleased to provide this semi-annual 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 January 31, 1996, the net asset value for the
Trust increased from $7.87 per share at October 31, 1995 to $9.20 per share at
January 31, 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 January 31, 1996,
was 20.1%. For the three months ended January 31, the Salomon Brothers Brady
Bond Index returned 20.3%, while the Salomon Brothers Mortgage Index rose by
3.2%.
On January 31, the portfolio of the Trust was divided principally between
emerging markets debt (59.3% of invested assets), mortgage-backed securities
(36.3%) and municipal zero-coupon bonds (4.2%).
EMERGING MARKETS
The continued recovery in emerging markets debt has been driven by the improving
fundamentals in the major Latin American countries and the effects of additional
funding into the market.
In Argentina, the Brady bond market rose 29.5% during the quarter due to
investor optimism for continuing economic recovery and a stabilizing political
situation. In December, Argentina's Congress passed the 1996 budget legislation.
While the legislation fell short of meeting all the administration's objectives,
the passage of the budget maintains Argentina's forward momentum toward Economy
Minister Cavallo's reform initiatives and the securing of additional financing
backed by tax moratorium receipts. In January, President Menem campaigned for
the Congressional approval of the "superpowers" legislation which is considered
vital in obtaining further disbursements from multilateral government agencies.
Brazilian Brady bonds gained 17.5% during the quarter lagging other major Latin
countries due to a lack of favorable reform developments. The Brazilian Congress
convened an extraordinary session from January 8 through February 15 to resume
consideration of a number of constitutional reform measures, the most important
of which are the social security and administrative reform proposals.
Venezuelan Brady bonds continued to rally with the rest of the market, gaining
22.0% during the quarter. In December, the Venezuelan Brady bond market
outperformed all other countries rising 16.2% when Finance Minister Luis Matos
Azocar announced the government's long anticipated devaluation of the Venezuelan
official currency. Investors now await news of
<PAGE> 2
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
the government's negotiations on possible concessions with the International
Monetary Fund. The upside potential of Venezuelan Brady bonds appears to be
limited until a conclusion to these negotiations is reached.
During the quarter, the Polish Brady bond market rose 19.5%. Moody's Investors
Service, Inc. granted Polish Brady bonds an investment grade rating, the first
such rating in the six-year history of the Brady bond market. The investment
rating agency's recognition of the lower likelihood of default for Polish Brady
bonds is very positive for the market's long-term performance.
MORTGAGE-BACKED BONDS
The mortgage market performed well during the quarter ending January 31, despite
heightened pre-payment fears. We estimate mortgages outperformed
duration-adjusted Treasuries by approximately .25%. In particular, discount
coupons, which comprise 29.9% of the Trust's invested assets, performed
relatively well, returning between 3.50% to 3.75%, depending on the coupon.
Demand was heavy for these securities as investors sought the pre-payment
protection that these securities offer.
We appreciate your continued interest in the Trust. A recorded periodic update
of the developments affecting the markets in which the Trust invests is
available by calling (800) 725-6666.
Sincerely,
/s/ MICHAEL S. HYLAND
MICHAEL S. HYLAND
Chairman and President
<PAGE> 3
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS
January 31, 1996 (unaudited)
<TABLE>
<CAPTION>
<C> <S> <C>
PRINCIPAL
AMOUNT VALUE
(000) SOVEREIGN BONDS -- 85.2% (NOTE 2)
------------------------------------------------------------------------------------------------------------
ARGENTINA -- 16.7%
$28,000 Republic of Argentina, Discount Bond, 6.5625%, 3/31/23*....................... $ 19,390,000
12,500 Republic of Argentina, FRB, 6.8125%, 3/31/05*................................. 9,687,500
39,500 Republic of Argentina, Par Bond, 5.00%, 3/31/23*.............................. 23,823,438
-------------
52,900,938
-------------
BRAZIL -- 18.7%
6,764 Federal Republic of Brazil, C Bond, 8.00%, 4/15/14**.......................... 4,557,489
9,500 Federal Republic of Brazil, Discount Bond, Series ZL, 6.8125%, 4/15/24*....... 6,329,375
5,000 Federal Republic of Brazil, Investment (Exit) Bond, 6.00%, 9/15/13............ 3,256,250
698 Federal Republic of Brazil, IDU, 6.375%, 1/01/01*............................. 619,467
2,000 Federal Republic of Brazil, NMB, 6.875%, 4/15/09*............................. 1,382,500
76,000 Federal Republic of Brazil, Par Bond, 4.25%, 4/15/24*......................... 43,367,500
-------------
59,512,581
-------------
BULGARIA -- 6.3%
16,000 Republic of Bulgaria, Discount Bond, Series A, 6.25%, 7/28/24*................ 8,990,000
20,500 Republic of Bulgaria, FLIRB, Series A, 2.00%, 7/28/12*........................ 7,892,500
5,750 Republic of Bulgaria, IAB, 6.25%, 7/28/11*.................................... 3,025,937
-------------
19,908,437
-------------
COSTA RICA -- 1.6%
9,000 Costa Rica, Principal Bond, Series B, 6.25%, 5/21/15.......................... 5,220,000
-------------
ECUADOR -- 9.5%
34,000 Republic of Ecuador, Discount Bond, 6.8125%, 2/28/25*......................... 19,380,000
24,921 Republic of Ecuador, PDI Bond, 6.8125%, 2/28/15*,**........................... 10,684,714
-------------
30,064,714
-------------
MEXICO -- 5.9%
United Mexican States, Par Bond, Series A, 6.25%, 12/31/19
4,000 (including 4,000,000 rights)................................................ 2,755,000
United Mexican States, Par Bond, Series B, 6.25%, 12/31/19
23,000 (including 23,000,000 rights)............................................... 15,841,250
-------------
18,596,250
-------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 1
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SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (continued)
January 31, 1996 (unaudited)
<TABLE>
<CAPTION>
<C> <S> <C>
PRINCIPAL
AMOUNT VALUE
(000) SOVEREIGN BONDS (CONTINUED) (NOTE 2)
------------------------------------------------------------------------------------------------------------
PHILIPPINES -- 3.9%
$15,500 Republic of the Philippines, Par Bond, Series B, 6.25%, 12/01/17*............. $ 12,555,000
-------------
POLAND -- 10.7%
3,500 Republic of Poland, PDI Bond, 3.75%, 10/27/14*................................ 2,745,312
55,000 Republic of Poland, RSTA Par Bond, 2.75%, 10/27/24*........................... 31,212,500
-------------
33,957,812
-------------
URUGUAY -- .7%
Uruguay, Par Bond, Series A, 6.75%, 2/19/21
3,000 (including 3,000,000 rights)................................................ 2,122,500
-------------
VENEZUELA -- 11.2%
Republic of Venezuela, Discount Bond, Series A, 6.6875%, 3/31/20*
25,000 (including 178,500 warrants)................................................ 15,218,750
8,000 Republic of Venezuela, FLIRB, Series A, 6.8125%, 3/31/07*..................... 4,915,000
Republic of Venezuela, Par Bond, Series A, 6.75%, 3/31/20
20,000 (including 100,000 warrants)................................................ 12,150,000
Republic of Venezuela, Par Bond, Series B, 6.75%, 3/31/20
5,500 (including 27,500 warrants)................................................. 3,341,250
-------------
35,625,000
-------------
TOTAL SOVEREIGN BONDS (cost $247,004,249)..................................... 270,463,232
-------------
MORTGAGE-BACKED SECURITIES -- 52.2%
------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.,
39,000# Gold, 6.50%, 30 Year (TBA).................................................. 38,658,750
12,501 Series 1576, Class PK, 6.00%, 9/15/02 (PAC I/O)............................. 722,728
26,462 Series 1599, Class D, 6.50%, 6/15/19 (PAC I/O).............................. 3,704,677
26,169 Series 1609, Class J, 6.50%, 11/15/13 (PAC I/O)............................. 2,019,951
9,858 Series 1610, Class PH, 6.50%, 3/15/19 (PAC I/O)............................. 1,236,843
18,447 Series 1617, Class PF, 6.50%, 6/15/18 (PAC I/O)............................. 2,040,679
13,029 Series 1679, Class WA, 6.00%, 2/15/03 (PAC I/O)............................. 826,501
Federal National Mortgage Assoc.,
78,000# 6.50%, 30 Year (TBA)........................................................ 77,244,375
20,000# 7.50%, 30 Year (TBA)........................................................ 20,512,500
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 2
<PAGE> 5
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (continued)
January 31, 1996 (unaudited)
<TABLE>
<CAPTION>
<C> <S> <C>
PRINCIPAL
AMOUNT VALUE
(000) MORTGAGE-BACKED SECURITIES (CONTINUED) (NOTE 2)
------------------------------------------------------------------------------------------------------------
$10,000# 8.00%, 30 Year (TBA)........................................................ $ 10,365,625
15,433 Trust 1993-169, Class QA, 6.50%, 8/25/12, (REMIC) (PAC I/O)................. 954,935
20,641 Trust 1993-183, Class EA, 6.50%, 3/25/17, (REMIC) (PAC I/O)................. 2,237,308
15,221 Trust 1993-183, Class EC, 6.50%, 3/25/13, (REMIC) (PAC I/O)................. 1,079,341
12,198 Trust 1993-189, Class PH, 6.50%, 2/25/19, (REMIC) (PAC I/O)................. 1,459,973
35,754 Trust 1993-202, Class Q, 6.50%, 11/25/13, (REMIC) (PAC I/O)................. 2,580,991
3,149 Trust 1993-209, Class PA, 6.00%, 11/25/99, (REMIC) (PAC I/O)................ 57,073
-------------
TOTAL MORTGAGE-BACKED SECURITIES (cost $164,659,197).......................... 165,702,250
-------------
ZERO-COUPON MUNICIPAL BONDS -- 6.1%
------------------------------------------------------------------------------------------------------------
11,200 Austin, Texas Utility System Revenue, Ser. A, 11/15/08........................ 5,758,480
Edinburg, Texas Cons. Independent School District,
1,845 2/15/08..................................................................... 986,337
2,705 2/15/09..................................................................... 1,364,104
Harris County, Texas,
5,470 8/15/08..................................................................... 2,849,214
Texas St. Public Finance Auth. Bldg. Rev.,
10,535 2/1/08...................................................................... 5,643,389
Westmoreland County, Pennsylvania,
2,665 Series G, 6/1/08............................................................ 1,411,517
2,515 Series G, 12/1/08........................................................... 1,298,193
-------------
TOTAL ZERO-COUPON MUNICIPAL BONDS (cost $18,993,965).......................... 19,311,234
-------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 3
<PAGE> 6
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (concluded)
January 31, 1996 (unaudited)
<TABLE>
<CAPTION>
<C> <S> <C>
PRINCIPAL
AMOUNT VALUE
(000) REPURCHASE AGREEMENT -- .2% (NOTE 2)
------------------------------------------------------------------------------------------------------------
$ 602 J.P. Morgan, 5.85%, cost $602,000, dated 1/31/96, $602,098 due 2/1/96,
(collateralized by $2,494,000, Zero Coupon U.S. Treasury Strips due 5/15/18,
valued at $614,148)......................................................... $ 602,000
-------------
TOTAL INVESTMENTS -- 143.7% (cost $431,259,411)............................... 456,078,716
-------------
LIABILITIES IN EXCESS OF OTHER ASSETS -- (43.7%).............................. (138,743,326)
-------------
NET ASSETS -- 100.0%.......................................................... $ 317,335,390
============
</TABLE>
- --------------------------------------------------------------------------------
* 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.
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 4
<PAGE> 7
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
January 31, 1996 (unaudited)
<TABLE>
<S> <C>
ASSETS
Investments, at value (cost $431,259,411)..................................................... $456,078,716
Cash.......................................................................................... 887
Interest receivable........................................................................... 7,527,151
Deferred organization expenses and other assets............................................... 95,151
------------
Total assets.......................................................................... 463,701,905
------------
LIABILITIES
Payable for investments purchased............................................................. 146,096,417
Advisory fee payable.......................................................................... 153,285
Administration fee payable.................................................................... 37,358
Accrued expenses.............................................................................. 79,455
------------
Total liabilities..................................................................... 146,366,515
------------
NET ASSETS
Common Stock ($.001 par value, authorized 200,000,000 shares; 34,510,639 shares
outstanding)................................................................................ 34,511
Additional paid-in-capital.................................................................... 323,533,362
Undistributed net investment income........................................................... 2,083,583
Accumulated net realized loss on investments.................................................. (33,135,371)
Net unrealized appreciation on investments.................................................... 24,819,305
------------
Net assets............................................................................ $317,335,390
------------
NET ASSET VALUE PER SHARE ($317,335,390 / 34,510,639 shares).................................. $ 9.20
------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 5
<PAGE> 8
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
For the Six Months Ended January 31, 1996 (unaudited)
<TABLE>
<S> <C> <C>
NET INVESTMENT INCOME
INCOME
Interest and discount earned................................................ $17,581,649
EXPENSES
Investment advisory fees.................................................... $ 840,585
Administration fees......................................................... 199,117
Custodian's fees and expenses............................................... 87,826
Reports to shareholders..................................................... 82,990
Audit fees and expenses..................................................... 53,315
Legal fees and expenses..................................................... 39,842
Transfer agent's fees and expenses.......................................... 23,855
Amortization of deferred organization expenses.............................. 12,602
Directors' fees............................................................. 12,385
Listing fees................................................................ 12,292
Insurance................................................................... 4,699
Miscellaneous............................................................... 4,654
---------
Total expenses.......................................................... 1,374,162
-----------
Net investment income........................................................... 16,207,487
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on investment transactions.................................... (135,434)
Net change in unrealized appreciation on investments............................ 55,133,897
-----------
Net gain on investments......................................................... 54,998,463
-----------
NET INCREASE IN NET ASSETS FROM OPERATIONS...................................... $71,205,950
-----------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 6
<PAGE> 9
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
STATEMENT OF CASH FLOWS
For the Six Months Ended January 31, 1996 (unaudited)
<TABLE>
<S> <C>
INCREASE (DECREASE) IN CASH
CASH FLOWS USED BY OPERATING ACTIVITIES:
Purchases of long-term portfolio investments.............................................. $(83,188,192)
Proceeds from disposition of long-term portfolio investments and principal paydowns....... 62,281,509
Net sales of short-term portfolio investments............................................. 451,000
------------
(20,455,683)
Net investment income..................................................................... 16,207,487
Amortization of net premium/discount on investments....................................... 2,441,556
Amortization of organization expenses..................................................... 12,602
Net change in receivables/payables related to operations.................................. (21,996)
------------
Net cash flows used by operating activities........................................... (1,816,034)
------------
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES:
Net increase from dollar roll transactions................................................ 16,949,417
Adjustment to offering costs.............................................................. (17,416)
Cash dividends paid....................................................................... (15,115,661)
------------
Net cash flows provided by financing activities....................................... 1,816,340
------------
Net increase in cash.......................................................................... 306
Cash at beginning of period................................................................... 581
------------
CASH AT END OF PERIOD......................................................................... $ 887
------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 7
<PAGE> 10
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED FOR THE
JANUARY 31, 1996 YEAR ENDED
(UNAUDITED) JULY 31, 1995
-------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income.................................................. $ 16,207,487 $ 30,581,716
Net realized loss on investment transactions........................... (135,434) (32,112,770)
Net change in unrealized appreciation on investments................... 55,133,897 25,586,089
------------ ------------
Net increase in net assets from operations............................. 71,205,950 24,055,035
DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income................................... (15,115,661) (30,231,321)
Distributions from capital gains....................................... -- --
------------ ------------
Total dividends and distributions...................................... (15,115,661) (30,231,321)
CAPITAL SHARE TRANSACTIONS
Net proceeds from initial public offering of shares.................... (17,416)+ --
Net proceeds from underwriters' over-allotment option.................. -- --
------------ ------------
Net decrease in net assets from capital share transactions............. (17,416) --
Total increase (decrease).............................................. 56,072,873 (6,176,286)
------------ ------------
NET ASSETS
Beginning of period.................................................... 261,262,517 267,438,803
------------ ------------
End of period (includes undistributed net investment income of
$2,083,583 and $991,757, respectively)............................... $317,335,390 $261,262,517
------------ ------------
</TABLE>
- --------------------------------------------------------------------------------
+ Adjustment to offering costs.
See accompanying notes to financial statements.
PAGE 8
<PAGE> 11
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
(unaudited)
NOTE 1. ORGANIZATION
The Salomon Brothers 2008 Worldwide Dollar Government Term Trust Inc (the
"Trust") was incorporated in Maryland on May 24, 1993 and is registered as a
non-diversified, closed-end, management investment company under the Investment
Company Act of 1940, as amended. The Trust commenced operations on August 27,
1993. The investment objective of the Trust is to manage a portfolio of fixed
income securities that will return $10 per share to investors on or about
November 30, 2008 while providing high monthly income. No assurance can be given
that the Trust's investment objective will be achieved.
The Trust will seek to achieve its investment objective by investing
substantially all (at least 90%) of its assets, under normal conditions, in
securities issued or guaranteed by the U.S. government, its agencies or
instrumentalities, securities issued or guaranteed by foreign governments
(sovereign bonds) and collateralized in full as to principal due at their
maturity by U.S. government securities, and zero coupon obligations of municipal
issuers. The market prices of the securities in which the Trust invests are
expected to fluctuate with changes in interest rates and the perceived credit
quality of such assets. The Trust's investments in sovereign bonds may be
affected by political, social, economic or diplomatic changes in such countries
and the Trust's investment in such securities increases the risk that the Trust
will return less than $10 per share in the year 2008.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles
("GAAP"). The preparation of financial statements in accordance with GAAP
requires management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual amounts could differ
from those estimates.
(a) SECURITIES VALUATION. In valuing the Trust's assets, all securities for
which market quotations are readily available are valued (i) at the last sales
price prior to the time of determination if there were a sale on the date of
determination or (ii) at the bid price if there were no sale on such date.
Publicly traded foreign government debt securities are typically traded
internationally in the over-the-counter market, and are valued at the mean
between the last current bid and asked price as of the close of business of that
market. However, when the spread between bid and asked price exceeds five
percent of the par value of the security, the security is valued at the bid
price. The Trust values mortgage-backed and asset-backed securities and other
debt securities on the basis of current market quotations provided by dealers or
independent pricing services which use prices provided by market-makers or
PAGE 9
<PAGE> 12
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
(unaudited)
estimates of market values obtained from yield data relating to instruments or
securities with similar characteristics.
Short-term investments having a maturity of 60 days or less are valued at
amortized cost, which approximates market value. Securities for which reliable
quotations are not readily available are valued at fair value as determined in
good faith by, or under procedures established by, the Board of Directors.
(b) INVESTMENT TRANSACTIONS. Investment transactions are recorded on the trade
date. Realized gains and losses are calculated on the identified cost basis.
Interest income is recorded on the accrual basis and the Trust accretes discount
or amortizes premium on securities purchased using the effective interest
method.
(c) FEDERAL INCOME TAXES. The Trust has complied and intends to continue to
comply with the requirements of the Internal Revenue Code of 1986, as amended,
applicable to regulated investment companies, and to distribute sufficient
taxable income to shareholders. Therefore, no federal income tax or excise tax
provision is required.
(d) DIVIDENDS AND DISTRIBUTIONS. The Trust declares and pays dividends to
shareholders monthly from net investment income. Net realized gains, if any, in
excess of loss carryovers are expected to be distributed annually. Dividends and
distributions to shareholders are recorded on the ex-dividend date. The amount
of dividends and distributions from net investment income and net realized gains
are determined in accordance with federal income tax regulations, which may
differ from GAAP. To the extent these differences are permanent in nature, such
amounts are reclassified within the components of net assets. The Trust
currently intends to retain, until the final liquidating distribution, income in
an amount approximately equal to the tax-exempt income accrued on the zero
coupon obligations of municipal issuers in which it invests but in no event
greater than 10% of the Trust's net investment income per year.
(e) DEFERRED ORGANIZATION EXPENSES. A total of $125,000 was incurred in
connection with the organization of the Trust. These costs have been deferred
and are being amortized ratably over a five-year period from commencement of
operations.
(f) REPURCHASE AGREEMENTS. When entering into repurchase agreements, it is the
Trust's policy to take possession, through its custodian, of the underlying
collateral and to monitor its value at the time the arrangement is entered into
and at all times during the term of the repurchase agreement to ensure that it
always equals or exceeds the repurchase price. In the event of default of the
obligation to repurchase, the Trust has the right to liquidate the collateral
and apply the proceeds in satisfaction of the obligation. Under certain
circumstances, in the event of default or bankruptcy by the other party to the
agreement, realization and/or retention of the collateral may be subject to
legal proceedings.
PAGE 10
<PAGE> 13
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
(unaudited)
(g) CASH FLOW INFORMATION. The Trust invests in securities and distributes net
investment income and net realized gains which are paid in cash and may be
reinvested at the discretion of shareholders. These activities are reported in
the Statement of Changes in Net Assets and additional information on cash
receipts and cash payments is presented in the Statement of Cash Flows.
Accounting practices that do not affect reporting activities on a cash basis
include carrying investments at value and amortizing discounts or premiums on
debt obligations.
NOTE 3. MANAGEMENT AND ADMINISTRATION FEES AND OTHER TRANSACTIONS
The Trust has an Investment Advisory Agreement with Salomon Brothers Asset
Management Inc (the "Adviser"), an indirect wholly-owned subsidiary of Salomon
Inc, pursuant to which the Adviser acts as the Trust's investment adviser and is
responsible for the management of the Trust's portfolio in accordance with the
Trust's investment objectives and policies for making decisions to buy, sell, or
hold particular securities. Through August 31, 1995, the Trust also had an
Administration Agreement with Prudential Mutual Fund Management, Inc. (the
"Administrator"), pursuant to which the Administrator performed administrative
services necessary for the operation of the Trust.
The Trust pays the Adviser a monthly fee for its advisory services at an annual
rate of .60% of the value of the Trust's average weekly net assets. The Trust
paid the Administrator a monthly fee for its administration services at an
annual rate of .15% of the value of the Trust's average weekly net assets up to
$250 million and .125% of the value of such net assets in excess of $250
million.
Effective September 1, 1995, the Administration Agreement was amended to provide
for the appointment of the Adviser as Administrator and Prudential Mutual Fund
Management, Inc. as Sub-administrator (the "Sub-administrator"). Under the
amended Agreement, the Trust pays the Administrator a monthly fee at an annual
rate of .15% of the value of the Trust's average weekly net assets up to $250
million and .125% of the value of such net assets in excess of $250 million for
its services, out of which the Administrator pays the Sub-administrator eighty
percent of such fees collected for its services.
The Trust pays each Director not affiliated with the Adviser a fee of $5,000 per
year, plus a fee of $700 and reimbursement for travel and out-of-pocket expenses
for each board and committee meeting attended.
PAGE 11
<PAGE> 14
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
(unaudited)
NOTE 4. PORTFOLIO ACTIVITY AND FEDERAL INCOME TAX STATUS
Purchases and sales of investment securities, other than short-term investments
and dollar rolls, for the six months ended January 31, 1996 aggregated
$83,188,192 and $62,281,509, respectively.
The federal income tax basis of the Trust's investments at January 31, 1996 was
$431,259,411 and, accordingly, net unrealized appreciation for federal income
tax purposes was $24,819,305 (gross unrealized appreciation -- $35,871,454;
gross unrealized depreciation -- $11,052,149).
Pursuant to federal income tax regulations, the Trust elected to treat capital
losses of $28,961,332, incurred in the period November 1, 1994 through July 31,
1995, as having occurred on August 1, 1995. In addition, the Trust has a capital
loss carryforward as of July 31, 1995 of $1,007,552 which expires in 2003. To
the extent future capital gains are offset by such capital losses, the Trust
does not anticipate distributing such gains to shareholders.
NOTE 5. BORROWINGS
DOLLAR ROLLS. The Trust enters into dollar rolls in which the Trust sells
mortgage-backed securities for delivery in the current month and simultaneously
contracts to repurchase substantially similar (same type, coupon and maturity)
securities on a specified future date. During the roll period the Trust forgoes
principal and interest paid on the securities. The Trust is compensated by a fee
paid by the counterparty. Dollar rolls are accounted for as a financing
arrangement; the fee is accrued into interest income ratably over the term of
the dollar roll and any gain or loss on the roll is deferred until disposition
of the rolled security. The average monthly balance of dollar rolls outstanding
during the six months ended January 31, 1996 was approximately $135,359,913.
NOTE 6. DIVIDENDS
Subsequent to January 31, 1996, the Board of Directors of the Trust declared
dividends of $.073 per common share payable February 29, 1996 and March 29, 1996
to shareholders of record on February 12, 1996 and March 12, 1996, respectively.
PAGE 12
<PAGE> 15
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
(unaudited)
NOTE 7. QUARTERLY DATA
<TABLE>
<CAPTION>
NET REALIZED AND
UNREALIZED GAINS
(LOSSES) ON
NET INVESTMENT INCOME INVESTMENTS
--------------------- -----------------------------
QUARTERLY PERIOD TOTAL INCOME AMOUNT PER SHARE AMOUNT PER SHARE
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
August 27, 1993*
to October 31, 1993 $4,213,943 $3,742,547 $ .11 $ 15,377,808 $ .44
November 1, 1993
to January 31, 1994 8,223,079 7,493,911 .22 9,305,565 .27
February 1, 1994
to April 30, 1994 8,123,521 7,473,849 .22 (75,995,205) (2.21)
May 1, 1994
to July 31, 1994 8,424,530 7,757,590 .22 (5,419,573) (.15)
August 1, 1994
to October 31, 1994 7,420,417 6,804,657 .20 (7,250,281) (.21)
November 1, 1994
to January 31, 1995 8,390,082 7,653,347 .22 (19,106,384) (.55)
February 1, 1995
to April 30, 1995 8,331,322 7,787,434 .23 4,051,303 .11
May 1, 1995
to July 31, 1995 8,968,424 8,336,278 .24 15,778,681 .46
August 1, 1995
to October 31, 1995 8,600,890 7,951,429 .23 9,887,863 .29
November 1, 1995
to January 31, 1996 8,980,759 8,256,058 .24 45,110,600 1.31
<CAPTION>
NET INCREASE (DECREASE)
IN NET ASSETS DIVIDENDS AND
RESULTING FROM OPERATIONS DISTRIBUTIONS
------------------------- --------------------
QUARTERLY PERIOD AMOUNT PER SHARE AMOUNT PER SHARE
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
August 27, 1993*
to October 31, 1993 $ 19,120,355 $ .55 $ 2,519,277 $ .073
November 1, 1993
to January 31, 1994 16,799,476 .49 8,248,043 .239
February 1, 1994
to April 30, 1994 (68,521,356) (1.99) 7,557,829 .219
May 1, 1994
to July 31, 1994 2,338,017 .07 7,557,830 .219
August 1, 1994
to October 31, 1994 (445,624) (.01) 7,557,829 .219
November 1, 1994
to January 31, 1995 (11,453,037) (.33) 7,557,830 .219
February 1, 1995
to April 30, 1995 11,838,737 .34 7,557,830 .219
May 1, 1995
to July 31, 1995 24,114,959 .70 7,557,832 .219
August 1, 1995
to October 31, 1995 17,839,292 .52 7,557,830 .219
November 1, 1995
to January 31, 1996 53,366,658 1.55 7,557,831 .219
<CAPTION>
SHARE PRICE
-----------
QUARTERLY PERIOD HIGH LOW
- -------------------------------------------------------------------------
<S> <C> <C>
August 27, 1993*
to October 31, 1993 $ 10 1/8 $ 9 5/8
November 1, 1993
to January 31, 1994 10 9 1/8
February 1, 1994
to April 30, 1994 10 7 3/4
May 1, 1994
to July 31, 1994 8 1/2 7 3/4
August 1, 1994
to October 31, 1994 8 1/4 7 1/8
November 1, 1994
to January 31, 1995 7 7/8 6 3/8
February 1, 1995
to April 30, 1995 7 1/2 6 7/8
May 1, 1995
to July 31, 1995 8 1/4 7 3/8
August 1, 1995
to October 31, 1995 8 1/8 7 5/8
November 1, 1995
to January 31, 1996 8 7/8 7 3/4
</TABLE>
- --------------------------------------------------------------------------------
* Commencement of investment operations.
PAGE 13
<PAGE> 16
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS FOR THE YEAR
ENDED ENDED AUGUST 27, 1993*
JANUARY 31, 1996 JULY 31, THROUGH
(UNAUDITED) 1995 JULY 31, 1994
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period................. $ 7.57 $ 7.75 $ 9.40++
-------- ------------ --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income................................ .47 .89 .77
Net realized and unrealized gain (loss) on
investments........................................ 1.60 (.19) (1.65)
-------- ------------ --------
Total from investment operations................. 2.07 .70 (.88)
-------- ------------ --------
LESS DIVIDENDS:
Dividends from net investment income................. (.44) (.88) (.75)
-------- ------------ --------
Offering costs with respect to issuance of shares.... -- -- (.02)
-------- ------------ --------
Net asset value, end of period....................... $9.20 $7.57 $7.75
-------- ------------ --------
Market price per share, end of period................ $8.875 $7.875 $7.875
-------- ------------ --------
TOTAL INVESTMENT RETURN(A):.......................... 18.81% 12.05% (8.89%)+
RATIOS TO AVERAGE NET ASSETS:
Total expenses................................... .98%# 1.01% .89%#
Net investment income............................ 11.52%# 12.20% 9.36%#
SUPPLEMENTAL DATA:
Net assets, end of period (000).................. $317,335 $261,263 $267,439
Average net assets (000)......................... $279,742 $250,594 $304,526
Portfolio turnover rate.......................... 15% 52% 11%
Asset coverage to dollar rolls outstanding at
period end..................................... 317% 302% 299%
Total mortgage dollar rolls outstanding at period
end (000)...................................... $146,096 $129,147 $134,549
</TABLE>
- --------------------------------------------------------------------------------
* Commencement of investment operations.
+ Return calculated based on beginning of period price of $9.40 (initial
offering price of $10.00 less sales load of $.60) and end of period market
value of $7.875 per share. The calculated return has not been annualized.
++ Net asset value immediately after closing of initial public offering was
$9.38.
(a) For purposes of this calculation, dividends are assumed to be reinvested
at prices obtained under the Trust's dividend reinvestment plan and the
broker commission paid to purchase or sell a share is excluded. Total
investment returns for periods of less than one full year are not
annualized.
# Annualized.
See accompanying notes to financial statements.
PAGE 14
<PAGE> 17
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
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
ALAN M. MANDEL
Treasurer
LAURIE A. PITTI
Assistant Treasurer
TANA E. TSELEPIS
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
New York, New York 10017
NEW YORK STOCK EXCHANGE SYMBOL
SBG
- ------------------------------------------------------
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.
- --------------------------------------------------------------------------------
<PAGE> 18
---------------------
BULK RATE
U.S. POSTAGE
PAID
STATEN ISLAND, NY
PERMIT NO.
169
---------------------
AMERICAN STOCK TRANSFER & TRUST COMPANY
40 WALL STREET
NEW YORK, NEW YORK 10005
<PAGE> 19
--------------------------------------------------------------
SALOMON BROTHERS
2008 WORLDWIDE DOLLAR
GOVERNMENT TERM TRUST INC
SEMI-ANNUAL REPORT
-----------------------------------------
JANUARY 31, 1996
----------------------------------
SALOMON BROTHERS ASSET MANAGEMENT
-------------------------------
