<PAGE> 1
SALOMON BROTHERS
2008 WORLDWIDE DOLLAR
GOVERNMENT TERM TRUST INC
INTERIM REPORT
OCTOBER 31, 1996
SALOMON BROTHERS ASSET MANAGEMENT
<PAGE> 2
AMERICAN STOCK TRANSFER & TRUST COMPANY
40 WALL STREET
NEW YORK, NEW YORK 10005
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BULK RATE
U.S. POSTAGE
PAID
STATEN ISLAND, NY
PERMIT NO.
169
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SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
December 20, 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 October 31, 1996, the net asset value for the
Trust increased to $9.49 per share from $8.76 per share as of July 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 ending October 31, 1996 was 10.93%. During the same
period, the Salomon Brothers Brady Bond Index returned 10.41%, while the Salomon
Brothers Mortgage Index increased by 3.67%.
As of October 31, 1996, the long-term portfolio of the Trust was divided between
emerging markets debt (59% of total investments), mortgage-backed securities
(37%) and municipal zero-coupon bonds (4%).
EMERGING MARKETS
The very strong performance of the emerging debt markets has been driven by a
relatively stable U.S. Treasury bond market and positive economic developments
in a number of key countries. The combination of favorable market conditions and
relatively high yields has encouraged institutional investors to increase their
asset allocations to emerging markets debt securities.
Developments in Russia have had a very favorable influence on investor
perceptions of sovereign risk. Boris Yeltsin was reelected president in a
two-round election process that culminated in early July. Yeltsin's victory was
encouraging to investors, and offered evidence that the citizens of emerging
market countries continue to endorse free-market reform candidates at the ballot
box. Now recovering from surgery, President Yeltsin is expected to resume his
responsibilities on a full-time basis early in the new year.
The International Monetary Fund (the "IMF") has played an important role in
encouraging free-market reforms in Russia, as well as Venezuela and Bulgaria.
One of the key elements of the IMF agreement with Russia is a provision to
increase tax revenues through improved compliance with tax regulations on the
part of Russian corporations. In Venezuela, an agreement has been reached with
the IMF that has helped stabilize the economy. Under the new terms, Venezuela
has lifted foreign exchange and interest rate controls and increased domestic
gasoline prices. The IMF has also helped promote free-market reform in Bulgaria,
although Bulgaria is in an earlier stage of its development cycle than either
Venezuela or Russia. As part of an overall IMF agreement, Bulgaria will close
money-losing banks and corporations. Discussions are now underway between the
IMF and Bulgaria's Central Bank
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SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
about the establishment of a currency board that would help curb inflation and
improve monetary and fiscal discipline.
As evidence of the overall health of the market, investors have shown a
willingness to provide long-term debt financing to several emerging market
countries, including Argentina, Mexico and the Philippines. The latter two
countries completed exchange offers of new bonds for collateralized Brady Bonds.
The Philippine offering was a 20-year fixed-rate issue and Mexico offered
30-year fixed-rate bonds. Mexico's return to the market was particularly
encouraging to investors.
Brazil continues to make progress on an overall program of constitutional
change. The Central Bank maintains a disciplined monetary policy aimed at
reducing inflation. If progress continues, it seems likely that Brazil's debt
will be upgraded.
In Ecuador, a populist candidate, Abdala Bucaram, has been elected President.
While investors were concerned initially about the new administration's economic
policies, Bucaram has made several reassuring appointments to key economic
posts, notably Central Bank President Augusto de la Torre. The government has
now presented a budget that includes reforms which should make the economy more
competitive.
MORTGAGE-BACKED BONDS
The mortgage-backed bond market rose by 3.67% in the quarter ending October 31,
1996, keeping pace with U.S. Treasuries in the September-October rally. The
portfolio includes a sizable position in discount coupons, which were the best
performing bonds on an absolute basis in the quarter because of their longer
duration. The Trust's PAC I/O positions continue to add yield without undue
prepayment risk.
ANNUAL SHAREHOLDERS MEETING
The Trust held its annual meeting of shareholders on November 13, 1996. At the
meeting, shareholders elected the nominees proposed for election to the Trust's
Board of Directors and ratified the selection of Price Waterhouse LLP as the
independent accountants of the Trust. The following table provides information
concerning the matters voted on at the meeting:
1. ELECTION OF DIRECTORS
<TABLE>
<CAPTION>
NOMINEES VOTES FOR VOTES WITHHELD
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<S> <C> <C>
Riordan Roett 32,235,920 492,044
Jeswald W. Salacuse 32,230,210 497,754
Thomas W. Brock 32,262,437 465,527
Charles F. Barber 32,224,136 503,828
</TABLE>
2. RATIFICATION OF PRICE WATERHOUSE LLP AS THE INDEPENDENT ACCOUNTANTS OF
THE TRUST
<TABLE>
<CAPTION>
VOTES FOR VOTES AGAINST VOTES ABSTAINED
- ------------------------------------------------
<S> <C> <C>
32,166,462 303,530 257,972
</TABLE>
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SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
In a continuing effort to provide timely information concerning the Trust,
shareholders may call 1-800-SALOMON (1-800-725-6666), Monday through Friday from
8:30 am to 6:00 pm EST for a recorded periodic update of the developments
affecting the markets in which the Trust invests, as well as the Trust's current
net asset value, portfolio manager comments and other information regarding the
Trust's portfolio holdings and allocations. Although the Trust will continue to
issue a semi-annual and annual report to shareholders, a press release
containing financial highlights and other Trust information will be issued in
lieu of a first and third quarter interim report. This will result in some cost
savings for the Trust while still providing shareholders with current
information about the Trust. For information concerning your Salomon Brothers
2008 Worldwide Dollar Government Term Trust stock account, please call American
Stock Transfer & Trust Company at 1-800-937-5449 (1-718-921-8200 if you are
calling from within New York City).
All of us at Salomon Brothers Asset Management appreciate the confidence you
have demonstrated in the past and hope to continue to serve you in future years.
Sincerely,
/s/ MICHAEL S. HYLAND
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
October 31, 1996 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) SOVEREIGN BONDS -- 85.9% VALUE
- ---------------------------------------------------------------------------------------------------------------
<C> <S> <C>
ARGENTINA -- 18.8%
$39,000 Republic of Argentina, Discount Bond, 6.4375%, 3/31/23*...................... $ 28,177,500
12,250 Republic of Argentina, FRB, 6.625%, 3/31/05*................................. 9,991,406
39,500 Republic of Argentina, Par Bond, 5.25%, 3/31/23*............................. 23,477,813
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61,646,719
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BRAZIL -- 19.1%
6,619 Federal Republic of Brazil, C Bond, 8.00%, 4/15/14**......................... 4,513,000
9,500 Federal Republic of Brazil, Discount Bond, Series ZL, 6.50%, 4/15/24*........ 6,994,375
5,000 Federal Republic of Brazil, Investment (Exit) Bond, 6.00%, 9/15/13........... 3,418,750
683 Federal Republic of Brazil, IDU, 6.6875%, 1/01/01*........................... 656,480
2,000 Federal Republic of Brazil, NMB, 6.5625%, 4/15/09*........................... 1,572,500
76,000 Federal Republic of Brazil, Par Bond, 5.00%, 4/15/24*........................ 45,362,500
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62,517,605
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BULGARIA -- 3.2%
16,000 Republic of Bulgaria, Discount Bond, Tranche A, 6.6875%, 7/28/24*............ 8,080,000
4,000 Republic of Bulgaria, FLIRB, Series A, 2.25%, 7/28/12*....................... 1,295,000
2,500 Republic of Bulgaria, IAB, 6.6875%, 7/28/11*................................. 1,092,187
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10,467,187
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COSTA RICA -- 2.1%
9,000 Costa Rica, Principal Bond, Series B, 6.25%, 5/21/15......................... 7,020,000
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ECUADOR -- 9.3%
34,000 Republic of Ecuador, Discount Bond, 6.50%, 2/28/25*.......................... 22,291,250
14,764 Republic of Ecuador, PDI Bond, 6.50%, 2/27/15*(,)**.......................... 8,203,394
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30,494,644
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MEXICO -- 5.8%
14,000 United Mexican States, Par Bond, Series A, 6.25%, 12/31/19
(including 14,000,000 rights).............................................. 9,721,250
4,000 United Mexican States, Par Bond, Series B, 6.25%, 12/31/19
(including 4,000,000 rights)............................................... 2,777,500
8,000 United Mexican States, Discount Bond, Series A, 6.45313%, 12/31/19
(including 12,307,000 rights)*............................................. 6,550,000
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19,048,750
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PHILIPPINES -- 4.0%
15,500 Republic of the Philippines, Par Bond, Series B, 6.25%, 12/01/17*............ 13,020,000
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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)
October 31, 1996 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) SOVEREIGN BONDS (CONCLUDED) VALUE
- ---------------------------------------------------------------------------------------------------------------
<C> <S> <C>
POLAND -- 10.9%
$ 3,000 Republic of Poland, Discount Bond, 6.50%, 10/27/24*.......................... $ 2,872,500
55,000 Republic of Poland, RSTA Par Bond, 3.25%, 10/27/24*.......................... 32,862,500
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35,735,000
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URUGUAY -- .8%
3,000 Uruguay, Par Bond, Series A, 6.75%, 2/19/21
(including 3,000,000 rights)............................................... 2,475,000
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VENEZUELA -- 11.9%
25,000 Republic of Venezuela, Discount Bond, Series A, 6.4375%, 3/31/20*
(including 178,500 warrants)............................................... 19,375,000
8,000 Republic of Venezuela, FLIRB, Series A, 6.625%, 3/31/07*..................... 6,637,500
13,000 Republic of Venezuela, Par Bond, Series A, 6.75%, 3/31/20
(including 65,000 warrants)................................................ 9,181,250
5,500 Republic of Venezuela, Par Bond, Series B, 6.75%, 3/31/20
(including 27,500 warrants)................................................ 3,884,375
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39,078,125
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TOTAL SOVEREIGN BONDS (cost $242,929,739).................................... 281,503,030
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MORTGAGE-BACKED SECURITIES -- 53.0%
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Federal Home Loan Mortgage Corp.,
49,000(#) Gold, 6.50%, 30 Year (TBA)................................................. 46,932,813
7,609 Series 1576, Class PK, 6.00%, 9/15/02 (PAC I/O)............................ 311,502
23,442 Series 1599, Class D, 6.50%, 6/15/19 (PAC I/O)............................. 3,487,024
17,861 Series 1609, Class J, 6.50%, 11/15/13 (PAC I/O)............................ 1,032,592
7,446 Series 1610, Class PH, 6.50%, 3/15/19 (PAC I/O)............................ 873,490
13,556 Series 1617, Class PF, 6.50%, 6/15/18 (PAC I/O)............................ 1,359,850
8,761 Series 1679, Class WA, 6.00%, 2/15/03 (PAC I/O)............................ 369,622
Federal National Mortgage Assoc.,
78,000(#) 6.50%, 30 Year (TBA)....................................................... 74,587,500
20,000(#) 7.00%, 30 Year (TBA)....................................................... 19,612,500
20,000(#) 8.00%, 30 Year (TBA)....................................................... 20,393,750
9,835 Trust 1993-169, Class QA, 6.50%, 8/25/12, (REMIC) (PAC I/O)................ 427,222
15,339 Trust 1993-183, Class EA, 6.50%, 3/25/17, (REMIC) (PAC I/O)................ 1,502,753
9,919 Trust 1993-183, Class EC, 6.50%, 3/25/13, (REMIC) (PAC I/O)................ 525,403
9,062 Trust 1993-189, Class PH, 6.50%, 2/25/19, (REMIC) (PAC I/O)................ 1,046,342
23,260 Trust 1993-202, Class Q, 6.50%, 11/25/13, (REMIC) (PAC I/O)................ 1,257,478
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TOTAL MORTGAGE-BACKED SECURITIES (cost $176,358,659)......................... 173,719,841
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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)
October 31, 1996 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) ZERO-COUPON MUNICIPAL BONDS -- 6.0% VALUE
- ---------------------------------------------------------------------------------------------------------------
<C> <S> <C>
$11,200 Austin, Texas Utility System Revenue, Ser. A, 11/15/08....................... $ 5,848,752
Edinburg, Texas Cons. Independent School District,
1,845 2/15/08.................................................................... 1,003,274
2,705 2/15/09.................................................................... 1,377,088
Harris County, Texas,
5,470 8/15/08.................................................................... 2,895,271
Texas St. Public Finance Auth. Bldg. Rev.,
10,535 2/1/08..................................................................... 5,740,732
Westmoreland County, Pennsylvania,
2,665 Series G, 6/1/08........................................................... 1,440,886
2,515 Series G, 12/1/08.......................................................... 1,324,173
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TOTAL ZERO-COUPON MUNICIPAL BONDS (cost $19,769,393)......................... 19,630,176
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REPURCHASE AGREEMENT -- 2.6%
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8,530 J.P. Morgan, 5.50%, cost $8,530,000, dated 10/31/96, $8,531,303 due 11/1/96,
(collateralized by $20,966,000, Zero Coupon U.S. Treasury Strips due
11/15/09, valued at $8,700,890)............................................ 8,530,000
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TOTAL INVESTMENTS -- 147.5% (cost $447,587,791).............................. 483,383,047
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LIABILITIES IN EXCESS OF OTHER ASSETS -- (47.5%)............................. (155,813,835)
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NET ASSETS -- 100.0%......................................................... $ 327,569,212
============
NET ASSET VALUE PER SHARE
($327,569,212 / 34,510,639 shares of common stock issued and outstanding).... $9.49
====
</TABLE>
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* 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.
PAGE 3
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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.
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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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