<PAGE> 1
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SALOMON BROTHERS
2008 WORLDWIDE DOLLAR
GOVERNMENT TERM TRUST INC
SEMI-ANNUAL REPORT
JANUARY 30, 1998
------------------------------------
SALOMON BROTHERS ASSET MANAGEMENT
--------------------------------
<PAGE> 2
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
March 25, 1998
Dear Shareholders:
We are pleased to provide this semi-annual report for the Salomon Brothers 2008
Worldwide Dollar Government Term Trust Inc (the "Trust") for the six months
ended January 30, 1998, including market commentary and a statement of the
Trust's current investments.
During the six months ended January 30, 1998, the net asset value for the Trust
decreased from $11.16 per share to $10.91 per share. Dividends of $0.515 per
share were paid during this period. In addition to the Trust's regular monthly
dividend of $0.073 per share, a special dividend of $0.077 per share was
declared and paid in December, 1997. Assuming the reinvestment of these
dividends in additional shares of the Trust, the net asset value return for the
six months ended January 30, 1998, was 2.56%. During the same period, the
Salomon Brothers Brady Bond Index and the Salomon Brothers Mortgage Index
returned 1.05% and 4.34%, respectively.
Emerging markets sovereign debt securities accounted for approximately 62% of
total long-term investments as of January 30, 1998. The balance of the portfolio
was held in mortgage-backed securities (34%) and municipal zero-coupon bonds
(4%).
EMERGING MARKETS
The strong performance of the emerging debt markets in the first half of 1997
eroded later in the year, as the Asian crisis unfolded. The positive market
conditions -- attractive yields and favorable economic and political settings in
many key countries -- were overshadowed by the dramatic global market sell-off
that was sparked by the turmoil in Asia. The instability of financial markets
around the world -- notably the U.S. and Hong Kong markets -- contributed to the
pickup in volatility among emerging markets. Indeed, yield spreads over U.S.
Treasuries widened to as much as 825 basis points at the market's low point in
October, but have now recovered to around 500 basis points over Treasuries.
Although market participants appear to recognize that the Asian crisis is not
likely to spread and have a major deleterious effect on emerging market
countries, currency volatility and corporate bankruptcies in several nations
will likely keep this market tenuous in the near term. We believe, however, that
non-Asian emerging debt represents a strong long-term value at current levels.
MORTGAGE-BACKED SECURITIES
Mortgage securities posted a solid performance during the six-month 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. In addition, with U.S. economic growth and inflation expectations
decreasing, the Fed moved from a bias towards raising interest rates to a
neutral stance, further increasing the attractiveness of high quality
fixed-income securities. 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.
<PAGE> 3
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
ANNUAL SHAREHOLDERS MEETING
The Trust held its annual shareholders meeting on January 15, 1998. At the
meeting, shareholders elected a director, ratified the selection of the
independent accountants of the Trust and approved a new investment advisory
agreement between Salomon Brothers Asset Management Inc ("SBAM") and the Trust.
Approval of the agreement was necessary due to the merger of Salomon Inc, which
had been the ultimate parent company of SBAM, with and into Smith Barney
Holdings Inc., a subsidiary of Travelers Group Inc., which occurred on November
28, 1997. Travelers is now the ultimate parent company of SBAM. The following
table provides information concerning the matter voted on at the meeting:
1. APPROVAL OF A NEW INVESTMENT ADVISORY AGREEMENT BETWEEN SBAM AND THE
TRUST.
<TABLE>
<CAPTION>
VOTES FOR VOTES AGAINST VOTES ABSTAINED UNVOTED
<S> <C> <C> <C>
- ------------------------------------------------------
29,811,390 635,465 539,605 10
</TABLE>
2. ELECTION OF A DIRECTOR.
<TABLE>
<CAPTION>
NOMINEE VOTES FOR VOTES WITHHELD
<S> <C> <C>
- ---------------------------------------------
Daniel P. Cronin 30,431,381 555,089
</TABLE>
3. RATIFICATION OF PRICE WATERHOUSE LLP AS THE INDEPENDENT ACCOUNTANTS OF
THE TRUST.
<TABLE>
<CAPTION>
VOTES FOR VOTES AGAINST VOTES ABSTAINED UNVOTED
<S> <C> <C> <C>
- ------------------------------------------------------
30,294,211 396,150 296,104 5
</TABLE>
* * *
In response to recent amendments to Maryland corporate law, the Board of
Directors recently reviewed various corporate governance provisions in the
Trust's By-Laws and approved amendments to the Trust's By-Laws to (1) increase
the percentage of stockholder voting power that is required to call a special
meeting of its stockholders to a majority of the votes entitled to be cast at
the meeting and (2) reduce the minimum permissible board committee size to one
director.
In a continuing effort to provide timely information concerning the Salomon
Brothers 2008 Worldwide Dollar Government Term Trust, shareholders may call
1-888-777-0102 (a toll-free number), Monday through Friday from 8:00 am to 6:00
pm EST for the Trust's net asset value, market price and other information
regarding the Trust's portfolio holdings and allocations. Should you require
specific information regarding your Salomon Brothers 2008 Worldwide Dollar
Government Term Trust stock account, or for information regarding the Trust's
Dividend Reinvestment Plan, 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.
Cordially,
/s/ HEATH B. MCLENDON
------------------------
HEATH B. MCLENDON
Chairman and President
<PAGE> 4
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS
January 30, 1998 (unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
PRINCIPAL
AMOUNT VALUE
(000) SOVEREIGN BONDS -- 90.9% (NOTE 2)
- ---------------------------------------------------------------------------------------------
ARGENTINA -- 16.8%
$39,000 Republic of Argentina, Discount Bond, 6.875%, 3/31/23*...... $ 32,345,625
41,000 Republic of Argentina, Par Bond, Series L, 5.50%,
3/31/23*.................................................. 31,006,250
-------------
63,351,875
-------------
BRAZIL -- 19.8%
12,500 Federal Republic of Brazil, Discount Bond, Series ZL,
6.6875%, 4/15/24*......................................... 10,171,875
5,800 Federal Republic of Brazil, Global Bond, 10.125%, 5/15/27... 5,476,650
5,000 Federal Republic of Brazil, Investment (Exit) Bond, 6.00%,
9/15/13................................................... 4,025,000
2,000 Federal Republic of Brazil, NMB, Series L, 6.75%,
4/15/09*.................................................. 1,586,250
72,550 Federal Republic of Brazil, Par Bond, Par Z-L, 5.25%,
4/15/24*.................................................. 53,369,594
-------------
74,629,369
-------------
BULGARIA -- 4.9%
24,300 Republic of Bulgaria, Discount Bond, Tranche A, 6.5625%,
7/28/24*.................................................. 18,574,313
-------------
COSTA RICA -- 2.0%
9,000 Costa Rica, Principal Bond, Series B, 6.25%, 5/21/15........ 7,425,000
-------------
ECUADOR -- 6.5%
17,000 Republic of Ecuador, Discount Bond, 6.6875%, 2/28/25*....... 12,441,960
19,450 Republic of Ecuador, PDI Bond, 6.6875%, 2/27/15*(,)**....... 11,900,977
-------------
24,342,937
-------------
MEXICO -- 18.1%
6,400 United Mexican States, Global Bond, 11.50%, 5/15/26......... 7,784,000
28,000 United Mexican States, Par Bond, Series A, 6.25%, 12/31/19
(including 28,000,000 rights)............................. 23,747,500
4,000 United Mexican States, Par Bond, Series B, 6.25%, 12/31/19
(including 4,000,000 rights).............................. 3,392,500
27,250 United Mexican States, Discount Bond, Series A, 6.6925%,
12/31/19* (including 41,922,000 rights)................... 25,410,625
7,450 United Mexican States, Discount Bond, Series B, 6.6172%,
12/31/19* (including 11,461,000 rights)................... 6,947,125
1,000 United Mexican States, Discount Bond, Series D, 6.75%,
12/31/19* (including 1,538,000 rights).................... 932,500
-------------
68,214,250
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PANAMA -- 1.8%
8,338 Republic of Panama, PDI Bond, 6.5625%, 7/17/16*(,)**........ 6,842,584
-------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 1
<PAGE> 5
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (continued)
January 30, 1998 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) SOVEREIGN BONDS (CONCLUDED) (NOTE 2)
- ---------------------------------------------------------------------------------------------
<C> <S> <C>
PERU -- 4.1%
$ 5,000 Republic of Peru, Discount Bond, 6.6875%, 3/8/27*........... $ 4,075,000
23,000 Republic of Peru, Par Bond, 3.00%, 3/7/27*.................. 11,155,000
-------------
15,230,000
-------------
PHILIPPINES -- 2.2%
9,500 Republic of the Philippines, Par Bond, Series B, 6.50%,
12/1/17*.................................................. 8,312,500
-------------
VENEZUELA -- 14.7%
38,500 Republic of Venezuela, Discount Bond, Series A, 6.75%,
3/31/20* (including 274,890 warrants)..................... 33,735,625
5,202 Republic of Venezuela, FLIRB, Series A, 6.75%, 3/31/07*..... 4,574,834
14,000 Republic of Venezuela, Par Bond, Series A, 6.75%, 3/31/20
(including 70,000 warrants)............................... 12,162,500
5,500 Republic of Venezuela, Par Bond, Series W-B, 6.75%, 3/31/20
(including 27,500 warrants)............................... 4,778,125
-------------
55,251,084
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TOTAL SOVEREIGN BONDS (cost $286,149,327)................... 342,173,912
-------------
MORTGAGE-BACKED SECURITIES -- 49.7%
- ---------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.,
49,000(#) Gold, 6.50%, 30 Year (TBA)................................ 48,877,500
1,100 Series 1576, Class PK, 6.00%, 9/15/02 (PAC I/O)........... 9,970
18,419 Series 1599, Class D, 6.50%, 6/15/19 (PAC I/O)............ 1,961,600
6,537 Series 1609, Class J, 6.50%, 11/15/13 (PAC I/O)........... 182,579
4,198 Series 1610, Class PH, 6.50%, 3/15/19 (PAC I/O)........... 453,056
7,438 Series 1617, Class PF, 6.50%, 6/15/18 (PAC I/O)........... 600,819
1,803 Series 1679, Class WA, 6.00%, 2/15/03 (PAC I/O)........... 17,110
Federal National Mortgage Assoc.,
95,000(#) 6.50%, 30 Year (TBA)...................................... 94,584,375
8,000(#) 7.00%, 30 Year (TBA)...................................... 8,112,500
5,000(#) 7.50%, 30 Year (TBA)...................................... 5,142,188
25,000(#) 8.00%, 30 Year (TBA)...................................... 25,937,500
2,462 Trust 1993-169, Class QA, 6.50%, 8/25/12, (REMIC) (PAC
I/O)...................................................... 39,411
8,382 Trust 1993-183, Class EA, 6.50%, 3/25/17, (REMIC) (PAC
I/O)...................................................... 662,703
2,765 Trust 1993-183, Class EC, 6.50%, 3/25/13, (REMIC) (PAC
I/O)...................................................... 43,311
5,012 Trust 1993-189, Class PH, 6.50%, 2/25/19, (REMIC) (PAC
I/O)...................................................... 576,414
7,535 Trust 1993-202, Class Q, 6.50%, 11/25/13, (REMIC) (PAC
I/O)...................................................... 205,549
-------------
TOTAL MORTGAGE-BACKED SECURITIES (cost $186,763,589)........ 187,406,585
-------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 2
<PAGE> 6
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (concluded)
January 30, 1998 (unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
PRINCIPAL
AMOUNT VALUE
(000) ZERO-COUPON MUNICIPAL BONDS -- 6.1% (NOTE 2)
- ---------------------------------------------------------------------------------------------
$11,200 Austin, Texas Utility System Revenue, Ser. A, 11/15/08...... $ 6,877,696
Edinburg, Texas Cons. Independent School District,
1,845 2/15/08................................................... 1,172,036
2,705 2/15/09................................................... 1,633,577
Harris County, Texas,
5,470 8/15/08................................................... 3,397,198
Texas St. Public Finance Auth. Bldg. Rev.,
10,535 2/1/08.................................................... 6,704,158
Westmoreland County, Pennsylvania,
2,665 Series G, 6/1/08.......................................... 1,673,940
2,515 Series G, 12/1/08......................................... 1,544,587
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TOTAL ZERO-COUPON MUNICIPAL BONDS (cost $21,128,952)........ 23,003,192
-------------
TOTAL INVESTMENTS -- 146.7% (cost $494,041,868)............. 552,583,689
-------------
LIABILITIES IN EXCESS OF OTHER ASSETS -- (46.7%)............ (175,952,434)
-------------
NET ASSETS -- 100.0%........................................ $ 376,631,255
=============
NET ASSET VALUE PER SHARE
($376,631,255 / 34,510,639 shares of common stock issued and
outstanding)................................................ $10.91
=====
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
* 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. (See Note 5.)
FLIRB -- Front Loaded 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 3
<PAGE> 7
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
January 30, 1998 (unaudited)
<TABLE>
<S> <C>
ASSETS
Investments, at value (cost $494,041,868)................... $552,583,689
Cash........................................................ 921,699
Interest receivable......................................... 7,371,188
Deferred organization expenses and other assets............. 21,414
------------
Total assets........................................ 560,897,990
------------
LIABILITIES
Payable for investments purchased (Note 5).................. 183,710,368
Advisory fee payable........................................ 178,868
Administration fee payable.................................. 46,951
Accrued expenses............................................ 330,548
------------
Total liabilities................................... 184,266,735
------------
NET ASSETS
Common Stock ($.001 par value, authorized 200,000,000
shares; 34,510,639 shares outstanding).................... 34,511
Additional paid-in-capital.................................. 323,533,363
Undistributed net investment income......................... 4,579,974
Accumulated net realized loss on investments................ (10,058,414)
Net unrealized appreciation on investments.................. 58,541,821
------------
Net assets.......................................... $376,631,255
------------
NET ASSET VALUE PER SHARE ($376,631,255 / 34,510,639
shares)................................................... $ 10.91
------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 4
<PAGE> 8
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
For the Six Months Ended January 30, 1998 (unaudited)
<TABLE>
<S> <C> <C>
NET INVESTMENT INCOME
INCOME
Interest and discount earned........................ $18,029,825
EXPENSES
Investment advisory fees............................ $1,125,250
Administration fees................................. 265,763
Custodian's fees and expenses....................... 102,281
Reports to shareholders............................. 74,203
Listing fees........................................ 48,903
Transfer agent's fees and expenses.................. 36,098
Audit fees and expenses............................. 33,090
Legal fees and expenses............................. 24,066
Directors' fees..................................... 20,556
Amortization of deferred organization expenses...... 12,534
Miscellaneous....................................... 4,291
----------
Total expenses.................................. 1,747,035
-----------
Net investment income................................... 16,282,790
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investment transactions............ 1,103,174
Net change in unrealized appreciation on investments.... (8,005,077)
-----------
Net realized and unrealized gain on investments......... (6,901,903)
-----------
NET INCREASE IN NET ASSETS FROM OPERATIONS.............. $ 9,380,887
-----------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 5
<PAGE> 9
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 30, 1998 YEAR ENDED
(UNAUDITED) JULY 31, 1997
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income................................... $ 16,282,790 $ 34,433,582
Net realized gain on investment transactions............ 1,103,174 25,184,403
Net change in unrealized appreciation on investments.... (8,005,077) 54,729,325
------------ ------------
Net increase in net assets from operations.............. 9,380,887 114,347,310
DIVIDENDS
Dividends from net investment income.................... (17,772,981) (31,508,214)
------------ ------------
Total increase/(decrease)............................... (8,392,094) 82,839,096
------------ ------------
NET ASSETS
Beginning of period..................................... 385,023,349 302,184,253
------------ ------------
End of period (includes undistributed net investment
income of $4,579,974 and $6,070,165, respectively).... $376,631,255 $385,023,349
------------ ------------
</TABLE>
- --------------------------------------------------------------------------------
STATEMENT OF CASH FLOWS
For the Six Months Ended January 30, 1998 (unaudited)
<TABLE>
<S> <C>
INCREASE (DECREASE) IN CASH
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES:
Purchases of long-term portfolio investments............ $(50,506,070)
Proceeds from disposition of long-term portfolio
investments and principal paydowns..................... 48,278,690
Net sale of short-term portfolio investments............ 373,000
------------
(1,854,380)
Net investment income................................... 16,282,790
Amortization of net premium/discount on investments..... (583,989)
Amortization of organization expenses................... 12,534
Net change in receivables/payables related to
operations............................................. 4,837,260
------------
Net cash flows provided by operating activities..... 18,694,215
------------
CASH FLOWS USED BY FINANCING ACTIVITIES:
Cash dividends paid..................................... (17,772,981)
------------
Net increase in cash........................................ 921,234
Cash at beginning of period................................. 465
------------
CASH AT END OF PERIOD....................................... $ 921,699
------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 6
<PAGE> 10
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. At January 30, 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.
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 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
PAGE 7
<PAGE> 11
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
(unaudited)
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 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.
PAGE 8
<PAGE> 12
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 Travelers
Group Inc. ("Travelers"), 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. 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 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.
At January 30, 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.
PAGE 9
<PAGE> 13
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (concluded)
(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 30, 1998 aggregated
$50,506,070 and $47,969,875, respectively.
The federal income tax cost basis of the Trust's investments at January 30, 1998
was $494,041,868 and net unrealized appreciation for federal income tax purposes
was $58,541,821 (gross unrealized appreciation -- $61,059,891; gross unrealized
depreciation -- $2,518,070).
The Trust has a capital loss carryforward as of July 31, 1997 of $8,130,534
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 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 to settle on a specified future date. At January 30, 1998, the Trust
has outstanding contracts to repurchase mortgage-backed securities of
$183,710,368 for a scheduled settlement of February 12, 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 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 and realized upon disposition of the rolled security. The average
monthly balance of dollar rolls outstanding during the six months ended January
30, 1998 was approximately $184,378,300.
NOTE 6. DIVIDENDS SUBSEQUENT TO JANUARY 30, 1998
Subsequent to January 30, 1998, the Board of Directors of the Trust declared
dividends of $.073 per common share payable February 27, 1998 and March 31, 1998
to shareholders of record on February 18, 1998 and March 17, 1998, respectively.
PAGE 10
<PAGE> 14
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FOR THE
SIX MONTHS
ENDED FOR THE FOR THE FOR THE AUGUST 27, 1993*
JANUARY 30, 1998 YEAR ENDED YEAR ENDED YEAR ENDED THROUGH
(UNAUDITED) 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..................... .47 1.00 .94 .89 .77
Net realized and unrealized gain (loss) on
investments.............................. (.20) 2.31 1.12 (.19) (1.65)
-------- -------- -------- -------- --------
Total from investment operations....... .27 3.31 2.06 .70 (.88)
-------- -------- -------- -------- --------
LESS DIVIDENDS:
Dividends from net investment income...... (.52) (.91) (.87) (.88) (.75)
-------- -------- -------- -------- --------
Offering costs with respect to issuance of
shares................................... -- -- -- -- (.02)
-------- -------- -------- -------- --------
Net asset value, end of period............ $ 10.91 $ 11.16 $ 8.76 $ 7.57 $ 7.75
-------- -------- -------- -------- --------
Market price per share, end of period..... $ 10.063 $ 9.875 $ 8.625 $ 7.875 $ 7.875
-------- -------- -------- -------- --------
TOTAL INVESTMENT RETURN(a):............... 7.33% 26.20% 21.39% 12.05% (8.89%)+
RATIOS TO AVERAGE NET ASSETS:
Total expenses......................... .93%# .93% 1.01% 1.01% .89%#
Net investment income.................. 8.66%# 10.11% 11.27% 12.20% 9.36%#
SUPPLEMENTAL DATA:
Net assets, end of period (000)........ $376,631 $385,023 $302,184 $261,263 $267,439
Average net assets (000)............... $374,988 $340,495 $287,466 $250,594 $304,526
Portfolio turnover rate................ 9% 30% 32% 52% 11%
Asset coverage to dollar rolls
outstanding at period end............ 305% 316% 320% 302% 299%
Total mortgage dollar rolls outstanding
at period end (000).................. $183,710 $178,465 $137,051 $129,147 $134,549
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
* 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.
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 11
<PAGE> 15
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
<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
</TABLE>
- --------------------------------------------------------------------------------
* Commencement of investment operations.
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 12
<PAGE> 16
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
Chairman and President
Managing Director, Smith Barney Inc.
President, Smith Barney Mutual Fund
Management 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
STEVEN GUTERMAN
Executive Vice 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
ALAN M. MANDEL
Treasurer
LAURIE A. PITTI
Assistant Treasurer
NOEL DAUGHERTY
Secretary
JENNIFER MUZZEY
Assistant Secretary
--------------------------
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
LEGAL COUNSEL
Simpson Thacher & Bartlett
425 Lexington Avenue
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> 17
---------------------
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
