<PAGE> 1
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SALOMON BROTHERS
2008 WORLDWIDE DOLLAR
GOVERNMENT TERM TRUST INC
ANNUAL REPORT
JULY 31, 1998
-------------------------------------
SALOMON BROTHERS ASSET MANAGEMENT
---------------------------------
AMERICAN STOCK TRANSFER & TRUST COMPANY
40 WALL STREET
NEW YORK, NEW YORK 10005
BULK RATE
U.S. POSTAGE
PAID
STATEN ISLAND, NY
PERMIT NO.
169
<PAGE> 2
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
September 14, 1998
Dear Shareholders:
We are pleased to provide this annual report for Salomon Brothers 2008 Worldwide
Dollar Government Term Trust (the "Trust"), including market commentary, audited
statement of the Trust's investments, audited financial statements, the related
Report of Independent Accountants and other information about the Trust, for the
year ended July 31, 1998.
During the year ended July 31, 1998, the net asset value of the Trust decreased
from $11.16 per share to $10.51 per share at July 31, 1998. Dividends totaling
$0.953 per share were paid from net investment income during this period.
Assuming the reinvestment of these dividends in additional shares of the Trust,
the net asset value return for the year ended July 31, 1998, was 2.86%. During
the same period, the JP Morgan Emerging Markets Bond Index Plus ("JP Morgan
EMBI+"), a standard measure of return for the emerging debt market, returned
- -1.99%.
EMERGING MARKETS DEBT SECURITIES
The emerging debt markets, despite a rebound following the Asian stock, bond and
currency crisis in October of 1997, produced negative returns during the twelve
months ended July 31, 1998. As mentioned above, the asset class posted a return
of -1.99% as measured by the JP Morgan EMBI+ during that time period. By
comparison, the Salomon Brothers Broad Investment Grade index, which is a proxy
for investment grade fixed income securities, posted a return of 7.90%.
Just prior to the sell-off on October 22nd, the stripped spread on the JP Morgan
EMBI+, which is the premium emerging market bond investors demand over U.S.
Treasuries, shrunk to as low as 334 basis points (3.34%), and ended the month
with a spread of 606 basis points. While this spread widening and bond market
decline was meaningful, it fails to capture the volatility experienced in the
market over the final nine days of October when the spread on the index
fluctuated between the mid 400 basis point range and the low 800 basis point
range.
When the crisis started to take shape during mid-October, we reduced the Trust's
exposure to the emerging markets in anticipation of increased volatility. At the
time, we were worried that the Asian crisis would cause significant volatility
in non-Asian debt from emerging market countries as investors curtailed their
appetite for risk. During the latter part of October and into November, many
Asian countries began to take steps to combat the weakness in their currencies:
Korea exchanged over $20 billion in maturing short-term debt for longer-term
bonds and subscribed to an International Monetary Fund ("IMF") reform package;
Thailand and Malaysia began to implement many IMF reforms; and China reaffirmed
its commitment to maintaining Hong Kong's U.S. dollar currency peg. While we did
not believe the market risk in Asia had disappeared, these events increased our
confidence in global emerging market bond prospects and, consequently, we began
to increase the Trust's exposure to emerging
<PAGE> 3
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
market bonds. Our increased exposure was concentrated in those countries that
had sold off in sympathy with Asia but had solid fundamentals and were not
excessively reliant on the international capital markets. Mexico and Venezuela
were two such countries. We increased the Trust's exposure to Mexico which we
had previously underweighted and we increased the Trust's exposure to Venezuela
to a meaningful overweight. Additionally, we continued to focus our investing in
the U.S. dollar debt sector of the market, as opposed to the local currency
markets. In this volatile environment, a better risk/reward profile was afforded
via external dollar denominated debt relative to local currency debt.
On July 31, 1998 top country allocations (as a percentage of total net assets)
for the Trust were as follows:
<TABLE>
<S> <C> <C> <C>
- - Brazil 17.9% - Peru 4.0%
- - Mexico 16.2% - Philippines 2.3%
- - Argentina 15.3% - Costa Rica 2.1%
- - Venezuela 10.8% - Panama 1.8%
- - Bulgaria 5.2% - Russia 1.7%
- - Ecuador 4.7%
</TABLE>
LATIN AMERICA
Brady bond exchanges in three Latin American countries occurred during the early
portion of the Trust's fiscal year. More than USD 8 billion of outstanding
Bradys were retired in exchange for nearly USD 7 billion in global bonds.
Investors tendered collateralized Brady bonds to the countries and received
uncollateralized global bonds in return. These transactions benefited the
investor who received a higher yielding instrument and benefited the issuer who
was then able to sell the collateral backing the bonds and use the proceeds to
retire more debt.
Argentina. On Argentina's political front, the ruling Peronist party was
defeated for the first time since 1987 in mid-term congressional elections that
took place on October 26. Half of the seats of the lower house of congress were
at stake, and the alliance formed by the opposition parties Frepaso and Alianza
won 46% of the total vote, versus 36% for the Peronists. As a result, the
Peronists lost 13 seats in congress leaving them with 120 seats as of December
10, with the opposition holding 105 out of the total of 257. The timing of the
Peronist defeat was unfortunate. However, leaders of the victorious opposition
indicated their strong support of the government's basic economic policy,
including the one-to-one fixed exchange rate between the peso and the U.S.
dollar. These declarations largely negated the political instability that would
have been expected as a result of the opposition victory. Separately, the
Argentine government expanded its long maturity global bond due 2017 by USD 750
million during the period. With the expansion, Argentina has met USD 1.35
billion of its USD 2 billion financing requirement for the second quarter. This
is important because it gives Argentina additional flexibility in managing its
liabilities. The IMF mission also completed its review during this time period
and announced that the country has met all of its targets for the first half of
1998.
<PAGE> 4
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
Brazil. During the period, Brazil made substantial progress on the privatization
front. Sao Paulo state electricity distributor (formerly CESPE, now Elektro) was
sold to the US utility company Enron for R$1.48 billion. The bid exceeded the
R$743.6 million minimum, a 99% premium. And, 76 bidders registered for the sale
of the 12 Telebras subsidiaries. Telebras was sold at a 60% premium of the
minimum asking price, at BRL 22 billion. Separately, the TBC (the official
lending rate for Brazil) was cut by 125 basis points to 19.75%. This move brings
the rate below its pre-crisis level of 20.7%, from which it was doubled last
October in response to contagion effects from the Asian crisis. While the crisis
in Asia leaves prospects for another year of significant economic growth in
doubt, the government has allayed concerns surrounding their political
commitment to stabilization and reform.
Ecuador. Despite Ecuador's relative outperformance in November, the country's
ability to institute reform measures continues to be disappointing. A specific
example is the government's continuous delays in the auction of a 35% stake in
state-owned telephone company EMETEL. In addition, following the failure by
congress to pass an increase in the value added tax, the sucre devalued 7.5%. On
a more positive note, in Ecuador's presidential elections, Jamil Mahuad was the
official first-round winner with 34.9% of the vote, followed by Alvaro Noboa
with 26.6%. As an experienced politician with a respected economic team, Mahuad
is believed to be the one with the ability to stabilize the economy. We have
established a marginally overweight position because we believe we are being
adequately compensated for the risk we are taking. Further reforms would need to
take place for us to increase our exposure.
Mexico. In historic elections on July 6, Mexicans elected Cuauhtemoc Cardenas,
the leader of the leftist PRD party, as mayor of Mexico City and took away the
PRI's majority in the lower house of Congress. These landmark results signal a
decisive step toward greater democracy. It is also the first time in more than
68 years that the Mexico City mayor has been popularly elected, and the first
time the PRI has failed to win a majority in Congress. Further reason for
current market enthusiasm is that the election results should have minimal
impact upon the economic reform process. Most privatization laws have already
been approved by Congress. Separately, Mexico's executive branch submitted a
1998 budget proposal to congress calling for no tax cuts and a fiscal deficit
equivalent to 1.25% of GDP. Subsequently, opposition legislators stated that
they will push for tax cuts and increases in public spending, while at the same
time maintaining the fiscal deficit at or below 1.5% of GDP. On March 12, Banco
de Mexico signaled that it is temporarily tightening its monetary stance by
draining liquidity. The move is intended to help limit the deterioration in
inflationary expectations resulting from the recent peso weakness associated
with the Asian crisis. The Central Bank explicitly linked this move with its
desire to prevent an excessive short-term deterioration in the exchange rate. We
remain confident in Mexico's potential and increased exposure during the period.
Panama. Panama retired USD 600 million of outstanding Brady debt and
simultaneously issued a 30-year global bond during September. The exchange
allowed Panama to improve its debt structure and lower its cost of funding. We
remain overweight in Panama.
<PAGE> 5
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
Peru. Royal Dutch, Shell and Mobil pulled out of the Camisea gas project, a
natural gas exploration in the southeastern jungle. This cancellation was
primarily due to three factors: 1) Peru's Energy Law does not allow the same
company to explore, produce and distribute energy resources, 2) gas exports to
Brazil are favored by Shell and Mobil but denounced by the government, and 3)
according to the government, Shell and Mobil were attempting to charge
"excessive" thermal energy prices. This cancellation is a major setback for
Peru, as USD 500 million had already been invested by the consortium in the
first stage of the project. Despite this disappointing development, Moody's
raised Peru's sovereign debt ceiling to Ba3 from B2, citing prudent fiscal and
monetary policies and an outlook for strong growth. Moody's stated that the move
was based on the country's progress, which included macroeconomic stabilization
and high average rates of growth over the past several years. The rating
increase complements Standard & Poor's previously assigned BB rating. We
maintained our overweight position during the period.
Venezuela. During the period, after months of negotiations, the IMF and the
government agreed on the terms of a "shadow" program. Unlike the previous
stand-by agreement, this program will not entail any financial support from the
IMF, only technical assistance. In the final month of the period, however,
Venezuela's market sentiment was suffering as a result of two main factors.
First, Moody's downgraded Venezuela's sovereign ceiling to B1 from Ba2, having
placed the rating on watch for possible downgrade on May 8. Moody's pointed to
the government's inability to address the domestic implications of external
shocks. Second, the privatization of the state aluminum complex, CVG, was
canceled. Although the coalition formed by Kaiser Aluminum and Billiton would
have only paid USD 1.55 billion, with only USD 200 million going to the
government, psychologically, the sale would have had a strong impact. The two
events, occurring only a day apart, diminished much of Venezuela's positive
market sentiment.
EASTERN EUROPE
Bulgaria. Moody's upgraded Bulgaria's foreign currency rating to B2 from B3,
citing improved credit risk with the election of a reform-oriented government
and establishment of a currency board. For comparison, the upgrade puts Bulgaria
on par with Peru and one notch below Brazil and Ecuador. Additionally, the IMF
approved the fourth tranche of a $510 million standby loan. Bulgaria's strides
in decreasing inflation and promoting growth during the past year have been
significant: inflation in March was negative 0.1% (largely due to falling fuel
prices), and was near 1.5% in February down from levels above 100% a year ago.
Russia. Following the Asian crisis, Russia was one of the most scrutinized and
most volatile credits in the emerging debt markets. Its currency, the ruble, is
pegged to the US dollar and investors feared it would have to be devalued, much
like Asia, due to capital flight and dwindling reserves brought on by the Asia
crisis. In addition, the deterioration of Russia's fiscal accounts, as a result
of the capital flight and a fall in oil prices, one of its major exports, put
added pressure on the ruble. After considerable effort including an IMF aid
package, raising domestic interest rates to 150% and changing its Cabinet, the
Russian government
<PAGE> 6
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
devalued the ruble. This development came during mid August 1998, after the end
of the Trust's fiscal year. The impact on all emerging markets of this
devaluation coupled with a restructuring of domestic government debt has greatly
increased volatility in all markets and especially emerging markets.
MORTGAGE-BACKED SECURITIES
Mortgage securities posted a solid performance during the one year period,
reflecting strong demand for high-quality instruments. The market was supported
by the global drop in interest rates that took place as the Asian crisis
unfolded. The steady demand for mortgage securities has led to favorable
financing for the leveraged portion of the portfolio. At current rates, with the
bulk of this portion of the Trust's portfolio invested in securities backed by
mortgages with 6.50% coupons, prepayments should not be an issue. However,
should long term interest rates move through 5%, the price appreciation for
mortgages will be limited.
* * *
In a continuing effort to provide timely information concerning the Trust,
shareholders may call 1-888-777-0102 (toll free), Monday through Friday from
8:00 am to 6:00 pm EST for the Trust's portfolio holdings and allocations. 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 the future
years.
Sincerely,
/s/ HEATH B. MCLENDON /s/ PETER J. WILBY
HEATH B. MCLENDON PETER J. WILBY
Chairman and President Executive Vice President
<PAGE> 7
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS
July 31, 1998
<TABLE>
<CAPTION>
<S> <C> <C>
PRINCIPAL
AMOUNT
(000) SOVEREIGN BONDS -- 81.0% VALUE
- ---------------------------------------------------------------------------------------------
ARGENTINA -- 15.3%
$39,000 Republic of Argentina, Discount Bond, Series L, 6.625%,
3/31/23(a),(f)............................................ $ 32,467,500
30,260 Republic of Argentina, Par Bond, Series L, 5.75%,
3/31/23(a),(f)............................................ 22,865,213
-------------
55,332,713
-------------
BRAZIL -- 17.9%
9,250 Federal Republic of Brazil, Discount Bond, Series ZL,
6.625%, 4/15/24(a)........................................ 7,290,156
5,000 Federal Republic of Brazil, Investment (Exit) Bond, 6.00%,
9/15/13................................................... 4,125,000
2,000 Federal Republic of Brazil, NMB, Series L, 6.6875%,
4/15/09(a)................................................ 1,570,000
72,550 Federal Republic of Brazil, Par Bond, Par Z-L, 5.50%,
4/15/24(a),(f)............................................ 52,009,281
-------------
64,994,437
-------------
BULGARIA -- 5.2%
24,300 Republic of Bulgaria, Discount Bond, Tranche A, 6.6875%,
7/28/24(a)................................................ 18,726,187
-------------
COSTA RICA -- 2.1%
9,000 Costa Rica, Principal Bond, Series B, 6.25%, 5/21/15........ 7,650,000
-------------
ECUADOR -- 4.7%
17,000 Republic of Ecuador, Discount Bond, 6.625%,
2/28/25(a),(f)............................................ 12,006,250
8,494 Republic of Ecuador, Bearer, PDI Bond, 6.625%,
2/27/15(a),(b)............................................ 5,083,401
-------------
17,089,651
-------------
MEXICO -- 16.2%
27,250 United Mexican States, Discount Bond, Series A, 6.59375%,
12/31/19(a),(f) (including 41,922,000 rights)............. 24,644,219
7,450 United Mexican States, Discount Bond, Series B, 6.47656%,
12/31/19(a) (including 11,461,000 rights)................. 6,737,594
1,000 United Mexican States, Discount Bond, Series D, 6.60156%,
12/31/19(a) (including 1,538,000 rights).................. 904,375
28,000 United Mexican States, Par Bond, Series A, 6.25%,
12/31/19(f) (including 28,000,000 rights)................. 23,187,500
4,000 United Mexican States, Par Bond, Series B, 6.25%, 12/31/19
(including 4,000,000 rights).............................. 3,312,500
-------------
58,786,188
-------------
PANAMA -- 1.8%
8,024 Republic of Panama, PDI Bond, 6.6875%, 7/17/16(a),(b)....... 6,218,918
300 Republic of Panama, IRB, 4.00%, 7/17/14(a).................. 226,500
-------------
6,445,418
-------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 1
<PAGE> 8
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (continued)
July 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) SOVEREIGN BONDS (CONCLUDED) VALUE
- ---------------------------------------------------------------------------------------------
<C> <S> <C>
PERU -- 4.0%
$ 5,000 Republic of Peru, Discount Bond, 6.625%, 3/08/27(a)......... $ 3,975,000
23,000 Republic of Peru, Par Bond, 3.00%, 3/07/27(a),(f)........... 10,580,000
-------------
14,555,000
-------------
PHILIPPINES -- 2.3%
9,500 Republic of the Philippines, Series B, 6.50%,
12/01/17(a),(f)........................................... 8,407,500
-------------
RUSSIA -- 0.7%
1,000 Russia, Ministry of Finance, Global Bond, 11.750%,
6/10/03(d)................................................ 835,000
3,000 Russia, IAN, 6.625%, 12/15/15(a)............................ 1,501,890
208 Russia, IAN, 6.625%, 12/15/15(a),(d)........................ 103,919
-------------
2,440,809
-------------
VENEZUELA -- 10.8%
38,500 Republic of Venezuela, Discount Bond, Series W-A, 6.5625%,
3/31/20(a),(f) (including 274,890 warrants)............... 31,136,875
1,714 Republic of Venezuela, FLIRB, Series A, 6.625%,
3/31/07(a)................................................ 1,352,138
3,250 Republic of Venezuela, Par Bond, Series W-A, 6.75%, 3/31/20
(including 16,250 warrants)............................... 2,472,031
5,500 Republic of Venezuela, Par Bond, Series W-B, 6.75%, 3/31/20
(including 27,500 warrants)............................... 4,183,438
-------------
39,144,482
-------------
TOTAL SOVEREIGN BONDS (cost $252,089,799)................... 293,572,385
-------------
LOAN PARTICIPATION -- 1.0%
9,000 Russia, Principal Loan, 6.625%, 12/15/20(a),(c),(e)(Chase
Manhattan), (cost $5,684,744)............................. 3,766,375
-------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 2
<PAGE> 9
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (continued)
July 31, 1998
<TABLE>
<CAPTION>
<S> <C> <C>
PRINCIPAL
AMOUNT
(000) MORTGAGE-BACKED SECURITIES -- 58.9% VALUE
- ---------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.,
$49,000(#) 6.50%, 30 Year, Gold, (TBA)............................... $ 48,816,250
15,598 Series 1599, Class D, 6.50%, 6/15/19 (PAC I/O)............ 1,113,414
2,935 Series 1609, Class J, 6.50%, 11/15/13 (PAC I/O)........... 36,684
3,327 Series 1610, Class PH, 6.50%, 3/15/19 (PAC I/O)........... 350,578
5,655 Series 1617, Class PF, 6.50%, 6/15/18 (PAC I/O)........... 419,683
2,686 Series 2062, Class PL, 6.50%, 10/15/16 (PAC I/O).......... 583,441
Federal National Mortgage Assoc.,
126,500(#) 6.50%, 30 Year (TBA)...................................... 125,827,969
8,000(#) 7.00%, 30 Year (TBA)...................................... 8,112,500
5,000(#) 7.50%, 30 Year (TBA)...................................... 5,132,813
20,000(#) 8.00%, 30 Year (TBA)...................................... 20,718,750
6,203 Trust 1993-183, Class EA, 6.50%, 3/25/17, (REMIC) (PAC
I/O)...................................................... 431,329
3,924 Trust 1993-189, Class PH, 6.50%, 2/25/19, (REMIC) (PAC
I/O)...................................................... 419,396
3,290 Trust 1993-202, Class Q, 6.50%, 11/25/13, (REMIC) (PAC
I/O)...................................................... 39,287
4,026 Trust 1998-44, Class JB, 6.50%, 2/18/08, (REMIC) (PAC
I/O)...................................................... 552,356
5,033 Trust 1998-44, Class IA, 6.50%, 7/18/16, (REMIC) (PAC
I/O)...................................................... 1,031,717
-------------
TOTAL MORTGAGE-BACKED SECURITIES (cost $213,575,126)........ 213,586,167
-------------
ZERO-COUPON MUNICIPAL BONDS -- 6.4%
- ---------------------------------------------------------------------------------------------
11,200 Austin, Texas Utility System Revenue, Series A, 11/15/08.... 6,888,784
Edinburg, Texas Cons. Independent School District:
1,845 2/15/08................................................... 1,175,726
2,705 2/15/09................................................... 1,635,795
5,470 Harris County, Texas, 8/15/08............................... 3,404,364
10,535 Texas St. Public Finance Auth. Bldg. Rev., 2/01/08.......... 6,725,755
Westmoreland County, Pennsylvania:
2,665 Series G, 6/01/08......................................... 1,666,798
2,515 Series G, 12/01/08........................................ 1,535,885
-------------
TOTAL ZERO-COUPON MUNICIPAL BONDS (cost $21,700,164)........ 23,033,107
-------------
- ---------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
PAGE 3
<PAGE> 10
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (concluded)
July 31, 1998
<TABLE>
<CAPTION>
<C> <S> <C>
PRINCIPAL
AMOUNT
(000) REPURCHASE AGREEMENTS -- 8.8% VALUE
- ---------------------------------------------------------------------------------------------
State Street Bank, 5.60%, cost $18,000,000, dated 7/31/98,
$18,008,400 due 8/3/98, (collateralized by $13,600,000
U.S. Treasury Bonds, 8.75%, due 5/15/17, valued at
$18,000 $18,360,000).............................................. $ 18,000,000
J.P. Morgan, 5.58%, cost $13,828,000, dated 7/31/98,
$13,834,430 due 8/3/98, (collateralized by $14,140,000,
Zero Coupon U.S. Treasury Strips, due 8/15/98, valued at
13,828 $14,104,650).............................................. 13,828,000
-------------
TOTAL REPURCHASE AGREEMENTS (cost $31,828,000).............. 31,828,000
-------------
TOTAL INVESTMENTS -- 156.1% (cost $524,877,833)............. 565,786,034
-------------
LIABILITIES IN EXCESS OF OTHER ASSETS -- (56.1%)............ (203,248,677)
-------------
NET ASSETS -- 100.0%........................................ $ 362,537,357
=============
NET ASSET VALUE PER SHARE
($362,537,357 / 34,510,639 shares of common stock issued and
outstanding)................................................ $10.51
=====
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<C> <S>
(a) Rate shown reflects current rate on variable rate instrument or instrument
with step coupon rates.
(b) Payment-in-kind security for which part of the income earned is
capitalized as additional principal.
(c) Participation interests were acquired through the financial institutions
indicated parenthetically.
(d) Pursuant to Rule 144A under the Securities Act of 1933, this security can
only be sold to qualified institutional investors.
(e) Portion of income earned is capitalized as Russia Interest in Arrears
Notes.
(f) Segregated as collateral for mortgage dollar rolls outstanding at
year-end.
(#) Mortgage dollar roll. (see Note 4)
FLIRB --Front Loaded Interest Reduction Bond.
IAN --Interest in Arrears Note.
IRB --Interest Reduction Bond.
NMB --New Money Bond.
PAC I/O--Planned Amortization Class -- Interest Only.
PDI --Past Due Interest.
REMIC --Real Estate Mortgage Investment Conduit.
TBA --To Be Announced Security.
</TABLE>
See accompanying notes to financial statements.
PAGE 4
<PAGE> 11
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
July 31, 1998
<TABLE>
<S> <C>
ASSETS
Investments at value (cost -$524,877,833)................... $565,786,034
Interest receivable......................................... 6,594,044
Cash........................................................ 923
Deferred organization expenses and other assets............. 20,030
------------
Total assets........................................ 572,401,031
------------
LIABILITIES
Payable for investments purchased (Note 4).................. 209,395,376
Advisory fee payable........................................ 185,359
Administration fee payable.................................. 43,924
Accrued expenses............................................ 239,015
------------
Total liabilities................................... 209,863,674
------------
NET ASSETS
Common Stock ($.001 par value, authorized 200,000,000;
34,510,639 shares outstanding)............................ 34,511
Additional paid-in capital.................................. 323,533,363
Undistributed net investment income......................... 4,496,438
Accumulated net realized loss on investments................ (6,435,156)
Net unrealized appreciation on investments.................. 40,908,201
------------
Net assets.......................................... $362,537,357
------------
NET ASSET VALUE PER SHARE ($362,537,357 / 34,510,639
shares)................................................... $ 10.51
------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 5
<PAGE> 12
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
For the Year Ended July 31, 1998
<TABLE>
<S> <C> <C>
NET INVESTMENT INCOME
INCOME
Interest and discount earned........................ $ 34,695,703
EXPENSES
Advisory fees....................................... $2,246,324
Administration fees................................. 530,484
Custodian fees and expenses......................... 244,629
Audit fees and expenses............................. 80,468
Reports to shareholders............................. 68,992
Legal fees and expenses............................. 53,080
Transfer agent fees and expenses.................... 46,926
Directors' fees and expenses........................ 34,607
Listing fees........................................ 32,340
Amortization of deferred organization expenses...... 24,999
Miscellaneous....................................... 17,940
----------
Total expenses.................................. 3,380,789
------------
Net investment income................................... 31,314,914
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments........................ 4,726,432
Net change in unrealized appreciation on investments.... (25,638,697)
------------
Net realized gain and change in net unrealized
appreciation........................................... (20,912,265)
------------
NET INCREASE IN NET ASSETS FROM OPERATIONS.............. $ 10,402,649
------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 6
<PAGE> 13
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
JULY 31, 1998 JULY 31, 1997
- --------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income................................... $ 31,314,914 $ 34,433,582
Net realized gain on investment transactions............ 4,726,432 25,184,403
Net change in unrealized appreciation on investments.... (25,638,697) 54,729,325
------------ ------------
Net increase in net assets from operations.............. 10,402,649 114,347,310
DIVIDENDS
From net investment income.............................. (32,888,641) (31,508,214)
------------ ------------
Total increase (decrease) in net assets................. (22,485,992) 82,839,096
------------ ------------
NET ASSETS
Beginning of year....................................... 385,023,349 302,184,253
------------ ------------
End of year (includes undistributed net investment
income of $4,496,438
and $6,070,165, respectively)......................... $362,537,357 $385,023,349
------------ ------------
</TABLE>
- --------------------------------------------------------------------------------
STATEMENT OF CASH FLOWS
For the Year Ended July 31, 1998
<TABLE>
<S> <C>
INCREASE (DECREASE) IN CASH
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES:
Purchases of long-term portfolio investments............ $(186,791,774)
Proceeds from disposition of long-term portfolio
investments and principal paydowns..................... 190,359,724
Net purchase of short-term portfolio investments........ (31,455,000)
-------------
(27,887,050)
Net investment income................................... 31,314,914
Capitalized income on payment-in-kind securities........ (878,206)
Amortization of net premium/discount on investments..... (1,330,528)
Amortization of organization expenses................... 24,999
Net change in receivables/payables related to
operations............................................. 31,644,970
-------------
Net cash flows provided by operating activities..... 32,889,099
-------------
CASH FLOWS USED BY FINANCING ACTIVITIES:
Cash dividends paid..................................... (32,888,641)
-------------
Net increase in cash........................................ 458
Cash at beginning of year................................... 465
-------------
CASH AT END OF YEAR......................................... $ 923
-------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 7
<PAGE> 14
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
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. At July 31, 1998, a
significant portion of the Trust's investments is in sovereign debt of emerging
market countries. In addition, the Trust's investment in mortgage-backed
securities is subject to the risk that rapid principal repayment, including
prepayment, may have an adverse effect on the yield to maturity of such
securities.
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 sale
price prior to the time of determination if there were a sale on the date of
determination, (ii) at the mean between the last current bid and asked prices if
there were no sales on such date and bid and asked quotations are available, and
(iii) at the bid price if there were no sales price on such date and only bid
quotations are available. 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-
PAGE 8
<PAGE> 15
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
makers or 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 during the term of the repurchase agreement to ensure that it 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.
(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
PAGE 9
<PAGE> 16
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
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 2. 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 Travelers
Group 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 and for making decisions to
buy, sell, or hold particular securities. The agreement with the Adviser was
most recently approved by shareholders at a special meeting held on January 15,
1998. Approval of the agreement was necessary due to the merger of Salomon Inc.,
which had been the ultimate parent company of the Adviser, with and into Smith
Barney Holdings Inc., a subsidiary of Travelers, which occurred on November 28,
1997. Travelers is now the ultimate parent company of the Adviser.
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. Pursuant to
an administrative agreement dated September 1, 1995, the Adviser serves 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.
At July 31, 1998, the Adviser owned 13,485 shares of the Trust.
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.
NOTE 3. PORTFOLIO ACTIVITY AND FEDERAL INCOME TAX STATUS
Purchases and sales of investment securities, other than short-term investments
and dollar rolls, for the year ended July 31, 1998 aggregated $186,791,774 and
$189,777,094, respectively.
The federal income tax cost basis of the Trust's investments at July 31, 1998
was $527,919,945 and net unrealized appreciation for federal income tax purposes
was $37,866,089 (gross unrealized appreciation -- $42,747,382; gross unrealized
depreciation -- $4,881,293).
PAGE 10
<PAGE> 17
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (concluded)
The Trust has a capital loss carryforward as of July 31, 1998 of $3,393,044
which expires in 2004. To the extent future capital gains are offset by such
capital losses, the Trust does not anticipate distributing such gains to
shareholders.
NOTE 4. 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 to settle on a specified future date. At July 31, 1998, the Trust has
outstanding contracts to repurchase mortgage-backed securities of $209,395,376
for a scheduled settlement of August 13, 1998. 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 financing
arrangements; 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 and realized upon
disposition of the rolled security. The average monthly balance of dollar rolls
outstanding during the year ended July 31, 1998 was approximately $188,900,832.
NOTE 5. EVENTS SUBSEQUENT TO JULY 31, 1998
Subsequent to July 31, 1998, the Board of Directors of the Trust declared
dividends of $.073 per common share payable August 28, 1998 and September 25,
1998 to shareholders of record on August 18, 1998 and September 15, 1998,
respectively.
PAGE 11
<PAGE> 18
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
DATA FOR A SHARE OF COMMON STOCK OUTSTANDING THROUGHOUT EACH PERIOD:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FOR THE FOR THE FOR THE FOR THE AUGUST 27, 1993*
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED THROUGH
JULY 31, 1998 JULY 31, 1997 JULY 31, 1996 JULY 31, 1995 JULY 31, 1994
- --------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.... $ 11.16 $ 8.76 $ 7.57 $ 7.75 $ 9.40++
-------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income................... .91 1.00 .94 .89 .77
Net realized gain (loss) and change in
unrealized appreciation (depreciation)
on investments........................ (.61) 2.31 1.12 (.19) (1.65)
-------- -------- -------- -------- --------
Total from investment operations.... .30 3.31 2.06 .70 (.88)
-------- -------- -------- -------- --------
LESS DIVIDENDS:
Dividends from net investment income.... (.95) (.91) (.87) (.88) (.75)
-------- -------- -------- -------- --------
Offering costs with respect to issuance
of common stock....................... -- -- -- -- (.02)
-------- -------- -------- -------- --------
Net asset value, end of period.......... $ 10.51 $ 11.16 $ 8.76 $ 7.57 $ 7.75
-------- -------- -------- -------- --------
Market price per share, end of period... $ 9.6875 $ 9.875 $ 8.625 $ 7.875 $ 7.875
-------- -------- -------- -------- --------
TOTAL INVESTMENT RETURN(a):............. 7.95% 26.20% 21.39% 12.05% (8.89%)+
RATIOS TO AVERAGE NET ASSETS:
Total expenses...................... .90% .93% 1.01% 1.01% .89%#
Net investment income............... 8.38% 10.11% 11.27% 12.20% 9.36%#
SUPPLEMENTAL DATA:
Net assets, end of period (000)..... $362,537 $385,023 $302,184 $261,263 $267,439
Average net assets (000)............ $373,905 $340,495 $287,466 $250,594 $304,526
Portfolio turnover rate............. 34% 30% 32% 52% 11%
Asset coverage to dollar rolls
outstanding at period end......... 273%** 316% 320% 302% 299%
Total mortgage dollar rolls
outstanding at period end (000)... $209,395 $178,465 $137,051 $129,147 $134,549
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<C> <S>
* 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) Total investment return is calculated assuming a purchase of
common stock at the current market price on the first day
and a sale at the current market price on the last day of
each period reported. 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.
** Securities have been segregated to cover all outstanding
mortgage dollar rolls at year-end. See Statement of
Investments.
</TABLE>
See accompanying notes to financial statements.
PAGE 12
<PAGE> 19
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of
Salomon Brothers 2008 Worldwide Dollar
Government Term Trust Inc
In our opinion, the accompanying statement of assets and liabilities, including
the statement of investments, and the related statements of operations, of cash
flows and of changes in net assets and the financial highlights present fairly,
in all material respects, the financial position of Salomon Brothers 2008
Worldwide Dollar Government Term Trust Inc (the "Trust") at July 31, 1998, the
results of its operations and its cash flows for the year then ended, the
changes in its net assets for each of the two years in the period then ended and
the financial highlights for each of the four years in the period then ended and
for the period August 27, 1993 (commencement of investment operations) through
July 31, 1994, in conformity with generally accepted accounting principles.
These financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Trust's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at July
31, 1998 by correspondence with the custodian and brokers, provide a reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York
September 25, 1998
PAGE 13
<PAGE> 20
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
SELECTED QUARTERLY FINANCIAL INFORMATION (unaudited)
SUMMARY OF QUARTERLY RESULTS OF OPERATIONS:
<TABLE>
<CAPTION>
NET REALIZED AND NET INCREASE
UNREALIZED GAINS (DECREASE) IN NET
NET INVESTMENT (LOSSES) ON ASSETS RESULTING
INCOME INVESTMENTS FROM OPERATIONS
--------------------- ----------------------- -----------------------
TOTAL PER PER PER
QUARTERLY PERIOD INCOME AMOUNT SHARE AMOUNT SHARE AMOUNT SHARE
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
August 27, 1993*
to October 31, 1993 $4,213,943 $3,742,547 $.11 $ 15,377,808 $ .44 $ 19,120,355 $ .55
November 1, 1993
to January 31, 1994 8,223,079 7,493,911 .22 9,305,565 .27 16,799,476 .49
February 1, 1994
to April 30, 1994 8,123,521 7,473,849 .22 (75,995,205) (2.21) (68,521,356) (1.99)
May 1, 1994
to July 31, 1994 8,424,530 7,757,590 .22 (5,419,573) (.15) 2,338,017 .07
August 1, 1994
to October 31, 1994 7,420,417 6,804,657 .20 (7,250,281) (.21) (445,624) (.01)
November 1, 1994
to January 31, 1995 8,390,082 7,653,347 .22 (19,106,384) (.55) (11,453,037) (.33)
February 1, 1995
to April 30, 1995 8,331,322 7,787,434 .23 4,051,303 .11 11,838,737 .34
May 1, 1995
to July 31, 1995 8,968,424 8,336,278 .24 15,778,681 .46 24,114,959 .70
August 1, 1995
to October 31, 1995 8,600,890 7,951,429 .23 9,887,863 .28 17,839,292 .51
November 1, 1995
to January 31, 1996 8,980,759 8,256,058 .24 45,110,600 1.31 53,366,658 1.55
February 1, 1996
to April 30, 1996 8,799,010 7,991,738 .23 (20,711,120) (.60) (12,719,382) (.37)
May 1, 1996
to July 31, 1996 8,894,728 8,185,101 .24 4,498,769 .13 12,683,870 .37
August 1, 1996
to October 31, 1996 8,721,821 7,949,929 .23 24,992,853 .72 32,942,782 .95
November 1, 1996
to January 31, 1997 10,055,843 9,239,583 .27 22,400,570 .65 31,640,153 .92
February 1, 1997
to April 30, 1997 8,862,492 8,068,980 .23 (10,122,279) (.29) (2,053,299) (.06)
May 1, 1997
to July 31, 1997 9,947,990 9,175,090 .27 42,642,584 1.23 51,817,674 1.50
August 1, 1997
to October 31, 1997 9,048,527 8,154,274 .24 (29,740,658) (.86) (21,586,384) (.63)
November 1, 1997
to January 30, 1998 8,981,298 8,128,516 .23 22,838,755 .66 30,967,271 .90
February 1, 1998
to April 30, 1998 8,447,475 7,577,564 .22 2,798,247 .08 10,375,811 .30
May 1, 1998
to July 31, 1998 8,218,403 7,454,560 .22 (16,808,609) (.49) (9,354,049) (.27)
<CAPTION>
DIVIDENDS AND
DISTRIBUTIONS SHARE PRICE
--------------------- ----------------
PER
QUARTERLY PERIOD AMOUNT SHARE HIGH LOW
- --------------------- ----------------------------------------
<S> <C> <C> <C> <C>
August 27, 1993*
to October 31, 1993 $2,519,277 $.073 $10 1/8 $9 5/8
November 1, 1993
to January 31, 1994 8,248,043 .239 10 9 1/8
February 1, 1994
to April 30, 1994 7,557,829 .219 10 7 3/4
May 1, 1994
to July 31, 1994 7,557,830 .219 8 1/2 7 3/4
August 1, 1994
to October 31, 1994 7,557,829 .219 8 1/4 7 1/8
November 1, 1994
to January 31, 1995 7,557,830 .219 7 7/8 6 3/8
February 1, 1995
to April 30, 1995 7,557,830 .219 7 1/2 6 7/8
May 1, 1995
to July 31, 1995 7,557,832 .219 8 1/4 7 3/8
August 1, 1995
to October 31, 1995 7,557,830 .219 8 1/8 7 5/8
November 1, 1995
to January 31, 1996 7,557,831 .219 8 7/8 7 3/4
February 1, 1996
to April 30, 1996 7,557,830 .219 9 8
May 1, 1996
to July 31, 1996 7,557,795 .219 8 3/4 8 3/8
August 1, 1996
to October 31, 1996 7,557,830 .219 9 1/4 8 5/8
November 1, 1996
to January 31, 1997 8,834,724 .256 9 3/8 8 3/4
February 1, 1997
to April 30, 1997 7,557,830 .219 9 5/8 8 7/8
May 1, 1997
to July 31, 1997 7,557,830 .219 9 15/16 9 1/4
August 1, 1997
to October 31, 1997 7,557,831 .219 10 3/16 9
November 1, 1997
to January 30, 1998 10,215,150 .296 10 3/16 9 3/8
February 1, 1998
to April 30, 1998 7,557,830 .219 10 3/16 9 7/8
May 1, 1998
to July 31, 1998 7,557,830 .219 10 3/16 9 5/8
</TABLE>
- --------------------------------------------------------------------------------
* Commencement of investment operations.
PAGE 14
<PAGE> 21
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- ---------------------------------------------------------------------------
OTHER INFORMATION
Pursuant to certain rules of the Securities and Exchange Commission the
following additional disclosure is provided.
Pursuant to the Trust's Dividend Reinvestment Plan (the "Plan"), stockholders
may elect to have all distributions automatically reinvested by American Stock
Transfer & Trust Company (the "Plan Agent") in Trust Shares pursuant to the
Plan. Each registered Stockholder will receive from the Trust, as soon as
practicable, an authorization card to be signed and returned if the Stockholder
elects to participate in the Plan. Stockholders who do not participate in the
Plan will receive all distributions in cash paid by check in dollars mailed
directly to the stockholder by the custodian, as dividend disbursing agent. In
the case of stockholders, such as banks, brokers or nominees, that hold Shares
for others who are the beneficial owners, the Plan Agent will administer the
Plan on the basis of the number of Shares certified from time to time by the
stockholders as representing the total amount registered in such stockholders'
names and held for the account of beneficial owners who are participants in the
Plan. Investors that own shares registered in the name of a bank, broker-dealer
or other nominee should consult with such nominee as to the participation in the
Plan through such nominee, and may be required to have their shares registered
in their own names in order to participate in the Plan.
The Plan Agent serves as agent for the stockholders in administering the Plan.
After the Trust declares a dividend or determines to make a capital gain
distribution, the Plan Agent will, as agent for the participants, receive the
cash payment and use it to buy Trust Shares in the open market, on the New York
Stock Exchange or elsewhere, for the participants' accounts. The Trust will not
issue any new shares in connection with the Plan.
The Plan Agent maintains all stockholder accounts in the Plan and furnishes
written confirmations of all transactions in an account, including information
needed by stockholders for personal and tax records. Shares in the account of
each Plan participant will be held by the Plan Agent in the name of the
participant, and each stockholder's proxy will include those shares purchased
pursuant to the Plan.
There is no charge to participants for reinvesting dividends or capital gains
distributions. The Plan Agent's fees for the reinvestment of dividends and
capital gains distributions will be paid by the Trust. However, each participant
will pay a pro rata share of brokerage commissions incurred with respect to the
Plan Agent's open market purchases in connection with the reinvestment of
dividends and distributions. Brokerage charges for purchasing small amounts of
stock for individual accounts through the Plan are expected to be less than the
usual brokerage charges for such transactions because the Plan Agent will be
purchasing stock for all participants in blocks and prorating the lower
commission thus attainable.
The receipt of dividends and distributions under the Plan will not relieve
participants of any federal income tax that may be payable on such dividends or
distributions. See "Taxation -- Taxation of Stockholders."
PAGE 15
<PAGE> 22
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- ---------------------------------------------------------------------------
OTHER INFORMATION (concluded)
Experience under the Plan may indicate that changes are desirable. Accordingly,
the Trust and the Plan Agent reserve the right to terminate the Plan as applied
to any dividend or distribution paid subsequent to written notice of the
termination sent to members of the Plan at least 30 days before the record date
for such dividend or distribution. The Plan also may be amended by the Trust or
the Plan Agent, but (except when necessary or appropriate to comply with
applicable law, rules or policies of a regulatory authority) only by at least 30
days' written notice to participants in the Plan. All correspondence concerning
the Plan should be directed to the Plan Agent at 40 Wall Street, 46th Floor, New
York, New York 10005.
As of May 27, 1998, Roger Lavan assumed responsibility for the day-to-day
management of the mortgage-backed securities and U.S. government securities
portions of the Trust's portfolio.
Year 2000. The investment management services provided to the Trust by SBAM
depend in large part on the smooth functioning of its computer systems. Many
computer software systems in use today cannot recognize the year 2000, but
revert to 1900 or some other date, due to the manner in which the dates were
encoded or calculated. The capability of these systems to recognize the year
2000 could have a negative impact on SBAM's provision of investment advisory
services, including handling of securities trades, pricing and account services.
SBAM has advised the Trust that it has been reviewing all of their computer
systems and actively working on necessary changes to its systems to prepare for
the year 2000 and expects that given the extensive testing which it is
undertaking its systems will be year 2000 compliant before such date. In
addition, SBAM has been advised by certain of the Trust's service providers that
they are also in the process of modifying their systems with the same goal.
There can, however, be no assurance that SBAM or any other service provider will
be successful in achieving year 2000 compliance, or that interaction with other
non-complying computer systems will not impair services to the Trust at that
time.
PAGE 16
<PAGE> 23
(This page has been left blank intentionally)
<PAGE> 24
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- -----------
DIRECTORS
CHARLES F. BARBER
Consultant; formerly Chairman,
ASARCO Incorporated
DANIEL P. CRONIN
Vice President -- General Counsel,
Pfizer International Inc.
HEATH B. MCLENDON
Managing Director, Smith Barney Inc.
President and Director, Mutual
Management Corp. and Travelers
Investment Advisors, Inc.;
Chairman, Smith Barney Strategy Advisors
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
HEATH B. MCLENDON
Chairman and President
PETER J. WILBY
Executive Vice President
THOMAS K. FLANAGAN
Executive Vice President
JAMES E. CRAIGE
Executive Vice President
ROGER M. LAVAN
Executive Vice President
LEWIS E. DAIDONE
Senior Vice President and Treasurer
ANTHONY PACE
Assistant Controller
NOEL DAUGHERTY
Secretary
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SALOMON BROTHERS
2008 WORLDWIDE DOLLAR
GOVERNMENT TERM TRUST INC
Seven World Trade Center
New York, New York 10048
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
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
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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