<PAGE> 1
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SALOMON BROTHERS
2008 WORLDWIDE DOLLAR
GOVERNMENT TERM TRUST INC
ANNUAL REPORT
-------------------------------------
JULY 31, 2000
-------------------------------------
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
-------------------
SBGANN 7/00
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SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
August 29, 2000
Dear Shareholders:
We are pleased to provide this annual report for Salomon Brothers 2008 Worldwide
Dollar Government Term Trust Inc ("Trust") as of July 31, 2000. In this report
we have summarized the period's prevailing economic and market conditions. Also
included in this report is a statement of the Trust's investments and financial
statements for the year ended July 31, 2000.
During the year ended July 31, 2000, the net asset value ("NAV") of the Trust
increased from $8.82 per share to $9.75 per share. Dividends from net investment
income totaling $0.94 per share were paid during this period. Assuming the
reinvestment of these dividends in additional shares of the Trust, the NAV
return for the year ended July 31, 2000 was 22.20%. In comparison, the J.P.
Morgan Emerging Markets Bond Index Plus ("EMBI+") (1) returned 29.57% and the
Salomon Smith Barney Mortgage Index ("SSB Mortgage Index") (2) returned 6.48%
for the same period.
EMERGING MARKETS DEBT SECURITIES
Emerging markets debt returned 29.57% for the year ended July 31, 2000 as
measured by the EMBI+. The market's returns were driven positively by improving
economic fundamentals and rising oil prices and negatively impacted by rising
interest rates. Stable technical factors contributed to overall returns by
encouraging new investors to enter the market. Individual country performance
was dominated by Russia which returned over 107% during the fiscal year.
Given the outsized nature of Russia's returns, Brazil was the only other country
to outperform the EMBI+ during the period. A wide range of countries did
generate good performance with 11 out of 16 EMBI+ countries returning in excess
of 10% for the year ended July 31, 2000.
The improved outlook for world economic growth appears to have encouraged
investors to increase commitments to emerging markets debt. The strength of the
economic recovery in Asia, an important market for Latin American exports, has
contributed to the better tone in emerging markets debt. Evidence of cyclical
recoveries in Brazil and Venezuela have also improved the outlook for investors.
Oil price strength over the fiscal year continued to drive many emerging
economies. Oil prices ended the fiscal year at $27.43, up over 33% for the
period. Russia, Venezuela and Mexico all benefit from rising oil prices.
The U.S. Federal Reserve Board ("Fed") raised interest rates four times during
the Trust's fiscal year, increasing short-term rates by 125 basis points. (3)
The Fed adopted this aggressive
---------------
(1) The EMBI+ is a total return index that tracks the traded market for U.S.
dollar-denominated Brady and other similar sovereign restructured bonds
traded in the emerging market.
(2) The SSB Mortgage Index is a broad-based unmanaged index of mortgage-backed
securities.
(3) A basis point is 0.01% or one one-hundredth of a percent.
<PAGE> 3
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
posture in order to slow the rate of growth of the U.S. economy and keep
inflation in check. Emerging markets debt outperformed other bond markets during
this difficult fixed income environment. The Salomon Smith Barney Broad
Investment Grade Index ("SSB BIG Index") (4) returned 5.87% while the Salomon
Smith Barney High Yield Market Index ("SSB High Yield Market Index") (5)
declined 0.60% during the Trust's fiscal year.
The expectation that U.S. interest rates would continue to rise had a negative
impact on emerging markets during some periods of the fiscal year. This
expectation had a greater negative impact than the actual rate increases. The
shift to floating currency exchange regimes in a number of emerging countries
has reduced the direct impact of U.S. interest rate increases on their
economies. Nonetheless, fears of future interest rate increases impacted returns
during January, April and May 2000.
Return volatility for emerging markets debt remained substantially lower
relative to year-earlier levels. The decline in volatility is a function of
reduced leverage in the market coupled with expanded investor interest in the
asset class. During the fiscal year, return volatility for the EMBI+ totaled
8.53% versus 27.17% during the year-earlier period.
As previously stated, individual country performance was dominated by Russia
during the period. The country's impressive returns were the result of a variety
of important fundamental developments that occurred over the course of the year:
- Vladimir Putin was elected and inaugurated President. Mr. Putin has moved
aggressively to re-assert federal power over Russia's vast regions.
- Russia successfully concluded a debt restructuring agreement with the London
Club (6) of creditors. The Russian government has signed the agreements and
the debt exchange closed in August 2000. The terms of the debt exchange were
favorable for Russia. Completion of the restructuring will permit Russia to
return to the international capital markets.
- Tax collections continued to run ahead of budget levels, leading to a stronger
than anticipated fiscal balance.
- Rising oil prices helped expand Russia's hard currency reserve position.
Assuming oil prices remain at current levels, Russia will end the year with
reserves in excess of $25 billion. This reserve position substantially
strengthens Russia's credit quality.
This broad range of events encouraged investors to reassess the outlook for
Russia. Russian debt prices reflected this improved outlook.
Brazil was an outstanding performer during the Trust's fiscal year returning
31.35%. At the beginning of the fiscal year, Brazil was dealing with the
after-effects of its January 1999 devaluation. Economic results throughout the
fiscal year confirm Brazil's success in this regard.
---------------
(4) The SSB BIG Index includes institutionally traded U.S. Treasury Bonds,
government-sponsored bonds (U.S. Agency and supranational), mortgage-backed
securities and corporate securities.
(5) The SSB High Yield Market Index is a broad-based unmanaged index of high
yield securities.
(6) The London Club is the official group of creditors lending to emerging
market governments.
<PAGE> 4
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
Positive Gross Domestic Product ("GDP") (7) growth coupled with disciplined
expenditure controls led to very good fiscal results. These improved fiscal
results have had a positive impact on Brazilian interest rates and debt levels.
The ratio of net public debt to GDP has stabilized at approximately 50%. The
appreciation of the real in recent months has reduced the local currency value
of external and dollar-linked domestic debt. In addition, negotiations with the
International Monetary Fund ("IMF") have led to a lowering of the target for
foreign reserves, giving the central bank additional flexibility in supporting
the local currency. These developments have allowed the Brazilian Central Bank
to lower short-term interest rates. The overnight rate has fallen from 45% in
early 1999 to 16.50% currently.
There were a number of key political developments in portfolio countries during
the fiscal year. Presidential elections occurred in Mexico, Peru, Argentina and
Venezuela. In Peru and Venezuela the incumbent was reelected. Peru and Venezuela
returned 20.23% and 24.49% respectively during the fiscal year. In Argentina, a
change in ruling parties occurred in the election but economic policies are
expected to remain unchanged. Argentina returned 20.47%.
In Mexico, the PRI party which had dominated politics for the past 70 years, was
defeated as Vicente Fox was elected president by a larger than expected margin.
This change in Mexico's political order was viewed by the market as a positive
development. In addition, Mexico was upgraded by Moody's to Baa3, an investment
grade credit rating. Mexico returned 25.99% during the past twelve months.
Outstanding returns in the emerging markets debt market were also generated by
Bulgaria (28.34%) and Morocco (20.96%) during the past year. Bulgaria's
performance reflected its continued recovery from the aftermath of the Kosovo
conflict. The Moroccan economy continues to cope with another year of drought.
Consistent with past practice, the Moroccan government has cut discretionary
spending in order to manage its budget deficit. The fiscal balance was also
aided by proceeds of the sale of a second cellular telephone license.
The market closed the fiscal year with spreads at 680 basis points over U.S.
Treasuries, approximately 350 basis points tighter than the year-earlier level
adjusted for changes in the composition of Russian securities in the EMBI+. With
the prospect of continued economic recovery in Latin America and a reduction of
political uncertainty in a number of countries, the outlook for the market
remains positive. The positive fundamental picture is complemented by solid
market technicals. Hedge fund activity in the market has declined and the
Mexican rating upgrade has encouraged investment-grade buyers to broaden
commitments to the emerging markets.
---------------
(7) GDP is the market value of the goods and services produced by labor and
property. GDP is comprised on consumer and government purchases, private
domestic investments and net exports of goods and services.
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SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
MORTGAGE-BACKED SECURITIES
The U.S. agency mortgage-backed securities market as measured by the SSB
Mortgage Index returned 6.48% for the year ended July 31, 2000. U.S. agency
mortgage-backed securities, which the Trust had approximately 40% of its assets
in at the end of the period, was the best-performing sector of the investment
grade bond market. After adjusting for duration differences, agency mortgages
outperformed U.S. Treasuries and corporate bonds by approximately 1.4% and 1.9%,
respectively.
For the period, mortgage pass-throughs benefited from wide spreads and
relatively low volatility in long term interest rates. With the Fed potentially
on the sidelines for the remainder of 2000, we expect mortgage pass-throughs to
finish the year strongly.
We continue to pursue the Trust's strategy of investing in a broadly-diversified
portfolio of fixed income securities, which have been issued by the U.S.
government or its agencies or issued by foreign governments and collateralized
by U.S. government securities. In our opinion, this strategy has worked well as
the correlation between U.S. Governments and Foreign Governments of our choosing
have been relatively low.
In a continuing effort to provide timely information concerning the Salomon
Brothers 2008 Worldwide Dollar Government Term Trust Inc, shareholders may call
1-888-777-0102 (toll free), Monday through Friday from 8:00 a.m. to 6:00 p.m.
EST for the Trust's portfolio holdings and allocations. For information
concerning your Salomon Brothers 2008 Worldwide 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.
Sincerely,
/s/ HEATH B. MCLENDON
HEATH B. MCLENDON
Chairman and President
/s/ PETER J. WILBY
PETER J. WILBY
Executive Vice President
/s/ ROGER M. LAVAN
ROGER M. LAVAN
Executive Vice President
/s/ THOMAS K. FLANAGAN
THOMAS K. FLANAGAN
Executive Vice President
<PAGE> 6
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
July 31, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT SECURITY VALUE
----------------------------------------------------------------------------------------------
<C> <S> <C>
SOVEREIGN BONDS -- 54.8%
ARGENTINA -- 10.7%
Republic of Argentina:
$56,000,000 Discount Bond, Series L-GL, 7.875% due 3/31/23 (a)(b)....... $ 45,570,000
17,760,000 Par Bond, Series L-GP, 6.000% due 3/31/23 (b)............... 12,154,500
------------
57,724,500
------------
BRAZIL -- 12.5%
Federal Republic of Brazil:
450,696 C Bond, 8.000% due 4/15/14.................................. 335,627
10,375,000 DCB, Series L, 7.4375% due 4/15/12 (a)(b)................... 7,729,375
38,750,000 Discount Bond, Series Z-L, 7.375% due 4/15/24 (a)(b)........ 30,636,719
15,972,750 EI Bond, Series L, 7.375% due 4/15/06 (a)(b)................ 14,694,930
464,000 Global Bond, 14.500% due 10/15/09........................... 504,716
2,000,000 NMB, Series L, 7.4375% due 4/15/09 (a)...................... 1,695,000
17,450,000 Par Bond, Series Z-L, 6.000% due 4/15/24 (b)................ 11,484,281
------------
67,080,648
------------
BULGARIA -- 6.0%
Republic of Bulgaria:
32,800,000 Discount Bond, Tranche A, 7.750% due 7/28/24 (a)(b)......... 26,506,500
7,000,000 IAB, Series PDI, 7.750% due 7/28/11 (a)..................... 5,678,750
------------
32,185,250
------------
ECUADOR -- 2.6%
Republic of Ecuador:
7,900,000 Discount Bond, 6.750% due 2/28/25 (a)(c).................... 3,713,000
26,450,000 Par Bond, 4.000% due 2/28/25 (a)(b)(c)...................... 10,232,844
------------
13,945,844
------------
IVORY COAST -- 0.9%
Republic of Ivory Coast:
14,000,000 FLIRB, 2.000% due 3/29/18 (a)(c)............................ 2,450,000
12,825,000 PDI Bond, 2.000% due 3/29/18 (a)(c)......................... 2,340,562
------------
4,790,562
------------
</TABLE>
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SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 5
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SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
July 31, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT SECURITY VALUE
----------------------------------------------------------------------------------------------
<C> <S> <C>
MEXICO -- 7.4%
United Mexican States:
$12,750,000 Discount Bond, Series A, 7.3125% due 12/31/19 (a)(b)
(including 19,614,000 rights)........................... $ 12,694,220
200,000 Discount Bond, Series D, 7.925% due 12/31/19 (a)
(including 308,000 rights).............................. 199,125
1,900,000 Par Bond, Series A, 6.250% due 12/31/19
(including 1,900,000 rights)............................ 1,631,625
29,600,000 Par Bond, Series B, 6.250% due 12/31/19 (b)
(including 29,600,000 rights)........................... 25,419,000
------------
39,943,970
------------
PANAMA -- 0.1%
778,231 Republic of Panama, PDI Bond, 7.750% due 7/17/16 (a)(d)..... 642,525
------------
PERU -- 1.9%
23,000,000 Republic of Peru, Par Bond, 3.000% due 3/7/27 (a)(b)........ 10,005,000
------------
PHILIPPINES -- 2.2%
14,500,000 Republic of the Philippines, Series B, 6.500% due 12/1/17
(b)..................................................... 11,817,500
------------
RUSSIA -- 0.8%
Russia, Ministry of Finance, Global Bond:
350,000 8.750% due 7/24/05 (e)...................................... 280,875
4,400,000 12.750% due 6/24/28......................................... 3,896,750
------------
4,177,625
------------
VENEZUELA -- 9.7%
Republic of Venezuela:
14,285,650 DCB, Series DL, 7.875% due 12/18/07 (a)(b).................. 11,928,519
45,400,000 Discount Bond, Series W-A, 7.375% due 3/31/20 (a)(b)
(including 324,156 warrants)............................ 35,639,000
2,100,000 Discount Bond, Series W-B, 7.875% due 3/31/20 (a)
(including 14,994 warrants)............................. 1,648,500
1,333,320 FLIRB, Series A, 7.4375% due 3/31/07 (a).................... 1,114,989
2,500,000 Par Bond, Series W-A, 6.750% due 3/31/20.................... 1,806,250
------------
52,137,258
------------
TOTAL SOVEREIGN BONDS (Cost -- $262,365,568)................ 294,450,682
------------
</TABLE>
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SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 6
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SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
July 31, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT SECURITY VALUE
----------------------------------------------------------------------------------------------
<C> <S> <C>
MORTGAGE-BACKED SECURITIES -- 40.5%
Federal Home Loan Mortgage Corporation (FHLMC):
$ 3,326,675 Series 1599, Class D, 6.500% due 6/15/19 (PAC I/O).......... $ 102,195
1,519,179 Series 1610, Class PH, 6.500% due 3/15/19 (PAC I/O)......... 93,293
1,211,016 Series 1617, Class PF, 6.500% due 6/15/18 (PAC I/O)......... 18,250
2,686,346 Series 2062, Class PL, 6.500% due 10/15/16 (PAC/IO)......... 390,052
11,577,500 Series 2075, Class IC, 6.500% due 7/15/16 (PAC I/O)......... 1,372,191
11,164,800 Series 2086, Class PK, 6.500% due 5/15/18 (PAC I/O)......... 1,028,164
15,485,000 Series 2098, Class IB, 6.000% due 11/15/02 (PAC I/O)........ 1,908,206
Federal National Mortgage Association (FNMA):
2,000,000 6.000%, 30 Year (f)(g)...................................... 1,835,620
178,000,000 7.000%, 30 Year (f)(g)...................................... 171,935,540
33,500,000 8.000%, 30 Year (f)(g)...................................... 33,604,520
909,114 Trust 1993-183, Class EA, 6.500% due 3/25/17 (REMIC) (PAC
I/O).................................................... 8,921
1,838,100 Trust 1993-189, Class PH, 6.500% due 2/25/19 (REMIC) (PAC
I/O).................................................... 114,881
5,727,310 Trust 1998-15, Class PJ, 6.500% due 2/18/21 (REMIC) (PAC
I/O).................................................... 801,426
5,032,765 Trust 1998-44, Class IA, 6.500% due 7/18/16 (REMIC) (PAC
I/O).................................................... 635,437
4,026,308 Trust 1998-44, Class JB, 6.500% due 2/18/08 (REMIC) (PAC
I/O).................................................... 123,636
9,252,868 Trust 1998-58, Class PD, 6.500% due 3/25/21 (REMIC)
(PAC/IO)................................................ 1,240,517
16,217,041 Trust 1998-63, Class IA, 6.000% due 10/25/23 (REMIC) (PAC
I/O).................................................... 2,250,786
1,569,616 Trust 1998-68, Class I, 6.500% due 12/25/19 (REMIC) (PAC
I/O).................................................... 172,235
------------
TOTAL MORTGAGE-BACKED SECURITIES (Cost -- $218,055,450)..... 217,635,870
------------
ZERO COUPON MUNICIPAL BONDS -- 4.6%
11,200,000 Austin, Texas Utility System Revenue, Series A, due
11/15/08................................................ 7,371,840
Edinburg Texas Cons. Independent School District:
1,845,000 Due 2/15/08................................................. 1,261,224
2,705,000 Due 2/15/09................................................. 1,750,812
5,470,000 Harris County, Texas, due 8/15/08........................... 3,646,084
10,535,000 Texas State Public Finance Authority Building Revenue, due
2/1/08.................................................. 7,215,738
Westmoreland County, Pennsylvania:
2,665,000 Series G, due 6/1/08........................................ 1,797,650
2,515,000 Series G, due 12/1/08....................................... 1,654,367
------------
TOTAL ZERO COUPON MUNICIPAL BONDS (Cost -- $24,047,545)..... 24,697,715
------------
</TABLE>
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SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 7
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SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
July 31, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT SECURITY VALUE
----------------------------------------------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENT -- 0.1%
$ 422,000 J.P. Morgan Securities Inc., 6.307% due 8/1/00; Proceeds at
maturity -- $422,076; (Fully collateralized by U.S.
Treasury Bonds, 6.750% due 8/15/26; Market
value -- $430,438) (Cost -- $422,000)................... $ 422,000
------------
TOTAL INVESTMENTS -- 100% (Cost -- $504,890,563)............ $537,206,267
============
</TABLE>
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(a) Rate shown reflects current rate on variable rate instrument or instrument
with step coupon rates.
(b) Segregated as collateral for mortgage dollar rolls/TBAs outstanding at year
end.
(c) Bond in default.
(d) Payment-in-kind security for which part of the income earned is capitalized
as additional principal.
(e) Security is exempt from registration under Rule 144A of the Securities Act
of 1933. This security may be resold in transactions that are exempt from
registration, normally to qualified institutional buyers.
(f) Mortgage dollar roll (See Note 4).
(g) Security is issued on a to-be-announced ("TBA") basis (See Note 5).
Abbreviations used in this schedule:
C Bond -- Capitalization Bond.
DCB -- Debt Conversion Bond.
EI -- Eligible Interest.
FLIRB -- Front Loaded Interest Reduction Bond.
IAB -- Interest in Arrears 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.
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SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 8
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SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
July 31, 2000
<TABLE>
<S> <C>
ASSETS:
Investments, at value (Cost -- $504,890,563).............. $537,206,267
Cash...................................................... 499
Receivable for securities sold............................ 72,177,938
Interest receivable....................................... 7,914,412
------------
TOTAL ASSETS.............................................. 617,299,116
------------
LIABILITIES:
Payable for securities purchased.......................... 280,540,740
Investment advisory fee payable........................... 169,076
Administration fee payable................................ 40,518
Accrued expenses.......................................... 202,452
------------
TOTAL LIABILITIES......................................... 280,952,786
------------
TOTAL NET ASSETS.......................................... $336,346,330
============
NET ASSETS:
Common stock ($0.001 par value, 200,000,000 shares
authorized; 34,510,639 shares outstanding).............. $ 34,511
Additional paid-in capital................................ 323,533,363
Undistributed net investment income....................... 8,023,263
Accumulated net realized loss on investments.............. (27,560,511)
Net unrealized appreciation of investments................ 32,315,704
------------
TOTAL NET ASSETS.......................................... $336,346,330
============
NET ASSET VALUE, PER SHARE ($336,346,330 / 34,510,639
shares)................................................... $9.75
============
</TABLE>
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SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 9
<PAGE> 11
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
For the Year Ended July 31, 2000
<TABLE>
<S> <C>
INCOME:
Interest.................................................. $ 35,689,199
------------
EXPENSES:
Investment advisory fees (Note 2)......................... 1,938,464
Administration fees (Note 2).............................. 466,347
Shareholder communications................................ 82,462
Custody................................................... 65,603
Shareholder and system servicing fees..................... 53,681
Audit and tax services.................................... 46,802
Legal fees................................................ 39,080
Directors' fees........................................... 36,573
Listing fees.............................................. 32,516
Other..................................................... 20,081
------------
TOTAL EXPENSES............................................ 2,781,609
------------
NET INVESTMENT INCOME....................................... 32,907,590
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 3):
Net Realized Loss From Security Transactions.............. (11,019,262)
------------
Change in Net Unrealized Appreciation (Depreciation) of
Investments:
Beginning of Year....................................... (10,138,052)
End of Year............................................. 32,315,704
------------
INCREASE IN NET UNREALIZED APPRECIATION................... 42,453,756
------------
NET GAIN ON INVESTMENTS..................................... 31,434,494
------------
INCREASE IN NET ASSETS FROM OPERATIONS...................... $ 64,342,084
============
</TABLE>
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SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 10
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SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
JULY 31, 2000 JULY 30, 1999
-----------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income................................... $ 32,907,590 $ 33,190,478
Net realized loss....................................... (11,019,262) (10,106,093)
Increase in net unrealized appreciation
(depreciation)........................................ 42,453,756 (51,046,253)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS....... 64,342,084 (27,961,868)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income................................... (32,339,921) (30,231,322)
------------ ------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO
SHAREHOLDERS.......................................... (32,339,921) (30,231,322)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS....................... 32,002,163 (58,193,190)
NET ASSETS:
Beginning of Year....................................... 304,344,167 362,537,357
------------ ------------
END OF YEAR*............................................ $336,346,330 $304,344,167
============ ============
*Includes undistributed net investment income of:........... $8,023,263 $7,455,594
============ ============
</TABLE>
--------------------------------------------------------------------------------
STATEMENT OF CASH FLOWS
For the Year Ended July 31, 2000
<TABLE>
<S> <C>
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES:
Purchases of long-term portfolio securities............. $(29,963,608)
Proceeds from disposition of long-term portfolio
securities and principal paydowns...................... 43,678,910
Net sales of short-term portfolio securities............ 487,000
------------
14,202,302
Net investment income..................................... 32,907,590
Adjustment to reconcile net investment income to net cash
provided by operating activities:
Amortization of net premium/discount on investments..... (7,443,079)
Capitalized income on payment-in-kind securities........ (35,460)
Net change in receivables/payables related to
operations............................................. (1,631,237)
------------
NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES........... 38,000,116
------------
CASH FLOWS USED BY FINANCING ACTIVITIES:
Decrease in dollar roll transactions (Note 4)............. (5,054,930)
Cash dividends paid....................................... (32,339,921)
------------
NET CASH FLOWS USED BY FINANCING ACTIVITIES............... (37,394,851)
------------
NET INCREASE IN CASH........................................ 605,265
Payable to Bank, Beginning of Year.......................... (604,766)
------------
CASH, END OF YEAR........................................... $ 499
============
</TABLE>
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SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 11
<PAGE> 13
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 ("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, 2000, 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
PAGE 12
<PAGE> 14
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
----------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
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 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) 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 13
<PAGE> 15
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
-------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
(f) 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 premium or accreting
discount 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 ("Adviser"), a wholly-owned subsidiary of Salomon Brothers
Holding Company Inc., which in turn is wholly owned by Salomon Smith Barney
Holdings, Inc. ("SSBH"), 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 Trust pays the Adviser a monthly fee for its advisory services at an annual
rate of 0.60% 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
("Sub-administrator"). Under an amended Agreement, the Trust pays the
Administrator a monthly fee at an annual rate of 0.15% of the value of the
Trust's average weekly net assets up to $250 million and 0.125% 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, 2000, the Adviser owned 13,485 shares of the Trust.
NOTE 3. PORTFOLIO ACTIVITY AND FEDERAL INCOME TAX STATUS
During the year ended July 31, 2000, the aggregate cost of purchases and
proceeds from sales of investments (including principal paydowns, but excluding
short-term securities) were as follows:
<TABLE>
<S> <C>
Purchases................................................... $29,963,608
===========
Sales....................................................... $38,414,986
===========
</TABLE>
At July 31, 2000, the aggregate gross unrealized appreciation and depreciation
of investments for Federal income tax purposes were substantially as follows:
<TABLE>
<S> <C>
Gross unrealized appreciation............................... $40,506,643
Gross unrealized depreciation............................... (8,190,939)
-----------
Net unrealized appreciation................................. $32,315,704
===========
</TABLE>
PAGE 14
<PAGE> 16
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
----------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
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, 2000, the Trust has
outstanding net contracts to repurchase mortgage-backed securities of
$208,362,802 for a scheduled settlement of August 16, 2000. 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, 2000
was $195,747,698. Counterparties with dollar rolls outstanding in excess of 10%
of net assets at July 31, 2000 included Bear Stearns Cos. ($99,950,354),
Goldman, Sachs & Co. ($48,528,646) and Prudential Securities ($35,879,999).
NOTE 5. SECURITIES TRADED ON A TO-BE-ANNOUNCED BASIS
The Trust trades securities on a to-be-announced ("TBA") basis, primarily in
connection with its dollar roll activity. In a TBA transaction, the Trust
commits to purchasing or selling securities which have not yet been issued by
the issuer. Securities purchased on a TBA basis are not settled until they are
delivered to the Trust, normally 15 to 45 days later. Beginning on the date the
Trust enters into a TBA transaction, securities are segregated in the amount of
the TBA transaction. These transactions are subject to market fluctuations and
their current value is determined in the same manner as for other securities.
At July 31, 2000, the Trust held TBA securities with a total cost of
$209,926,162.
NOTE 6. CAPITAL LOSS CARRYFORWARD
At July 31, 2000, the Trust had, for Federal income tax purposes, approximately
$16,129,000 of unused capital loss carryforwards available to offset future
capital gains expiring July 31, 2008. To the extent that these carryforward
losses are used to offset capital gains, it is probable that the gains so offset
will not be distributed.
NOTE 7. EVENTS SUBSEQUENT TO JULY 31, 2000
Subsequent to July 31, 2000, the Board of Directors of the Trust declared
dividends of $0.073 per common share payable August 25, 2000 and September 29,
2000 to shareholders of record on August 15, 2000 and September 12, 2000,
respectively.
PAGE 15
<PAGE> 17
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
-------------------------------------
FINANCIAL HIGHLIGHTS
DATA FOR A SHARE OF COMMON STOCK OUTSTANDING THROUGHOUT EACH YEAR ENDED JULY 31,
EXCEPT WHERE NOTED:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
2000 1999(1) 1998 1997 1996
--------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR.......................... $ 8.82 $10.51 $ 11.16 $ 8.76 $ 7.57
------ ------- ------- ------ ------
INCOME (LOSS) FROM OPERATIONS:
Net investment income..................................... 0.95 0.96 0.91 1.00 0.94
Net realized and unrealized gain (loss)................... 0.92 (1.77) (0.61) 2.31 1.12
------ ------- ------- ------ ------
Total Income (Loss) From Operations....................... 1.87 (0.81) 0.30 3.31 2.06
------ ------- ------- ------ ------
LESS DISTRIBUTIONS FROM:
Net investment income..................................... (0.94) (0.88) (0.95) (0.91) (0.87)
------ ------- ------- ------ ------
NET ASSET VALUE, END OF YEAR................................ $ 9.75 $ 8.82 $ 10.51 $11.16 $ 8.76
====== ======= ======= ====== ======
MARKET PRICE PER SHARE, END OF YEAR......................... $9.000 $9.4375 $9.6875 $9.875 $8.625
====== ======= ======= ====== ======
TOTAL RETURN(2)............................................. 6.40% 7.08% 7.95% 26.20% 21.39%
RATIOS TO AVERAGE NET ASSETS:
Expenses.................................................. 0.86% 0.87% 0.90% 0.93% 1.01%
Net investment income..................................... 10.15% 10.34% 8.38% 10.11% 11.27%
SUPPLEMENTAL DATA:
Net assets, end of year (millions)........................ $336 $304 $363 $385 $302
Average net assets (millions)............................. $322 $321 $374 $340 $287
Portfolio turnover rate................................... 6% 37% 34% 30% 32%
Asset coverage to dollar rolls outstanding
at end of year.......................................... 261%* 262%* 273%* 316% 320%
Total mortgage dollar rolls outstanding
at end of year (millions)............................... $208 $188 $209 $178 $137
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
(1) For the year ended July 30, 1999.
(2) 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 year 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.
* Securities have been segregated to cover all outstanding
mortgage dollar rolls at year-end.
</TABLE>
PAGE 16
<PAGE> 18
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 schedule 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, 2000, 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 five years in the period then ended, in
conformity with accounting principles generally accepted in the United States.
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 auditing standards generally accepted in the United States 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, 2000 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 21, 2000
PAGE 17
<PAGE> 19
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
-----------------------------------------------------------------
SELECTED QUARTERLY FINANCIAL INFORMATION
(unaudited)
<TABLE>
<CAPTION>
NET INCREASE
NET REALIZED AND (DECREASE) IN
NET INVESTMENT UNREALIZED NET ASSETS
INCOME GAIN (LOSS) FROM OPERATIONS
--------------------- ----------------------- -----------------------
TOTAL PER PER PER
QUARTERLY PERIOD INCOME AMOUNT SHARE AMOUNT SHARE AMOUNT SHARE
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
August 1, 1997
to October 31, 1997 $ 9,048,527 $8,154,274 $0.24 $(29,740,658) $(0.86) $(21,586,384) $(0.63)
November 1, 1997
to January 31, 1998 8,981,298 8,128,516 0.23 22,838,755 0.66 30,967,271 0.90
February 1, 1998
to April 30, 1998 8,447,475 7,577,564 0.22 2,798,247 0.08 10,375,811 0.30
May 1, 1998
to July 31, 1998 8,218,403 7,454,560 0.22 (16,808,609) (0.49) (9,354,049) (0.27)
August 1, 1998
to October 31, 1998 8,054,107 7,309,404 0.21 (45,868,771) (1.33) (38,559,367) (1.12)
November 1, 1998
to January 31, 1999 9,266,981 8,530,558 0.25 (4,932,601) (0.15) 3,597,957 0.10
February 1, 1999
to April 30, 1999 9,514,167 8,766,158 0.25 25,700,672 0.75 34,466,830 1.00
May 1, 1999
to July 30, 1999 9,157,752 8,584,358 0.25 (36,051,646) (1.04) (27,467,288) (0.79)
July 31, 1999
to October 29, 1999 9,186,826 8,530,115 0.24 16,418,596 0.48 24,948,711 0.72
October 30, 1999
to January 31, 2000 8,573,396 7,856,918 0.23 (113,584) (0.00)* 7,743,334 0.23
February 1, 2000
to April 28, 2000 8,801,140 8,116,363 0.24 10,044,834 0.29 18,161,197 0.53
April 29, 2000
to July 31, 2000 9,127,837 8,404,194 0.24 5,084,648 0.15 13,488,842 0.39
<CAPTION>
DIVIDENDS AND
DISTRIBUTIONS SHARE PRICE
---------------------- --------------
PER
QUARTERLY PERIOD AMOUNT SHARE HIGH LOW
--------------------- -------------------------------------------
<S> <C> <C> <C> <C>
August 1, 1997
to October 31, 1997 $ 7,557,831 $0.219 10 3/16 9
November 1, 1997
to January 31, 1998 10,215,150 0.296 10 3/16 9 3/8
February 1, 1998
to April 30, 1998 7,557,830 0.219 10 3/16 9 7/8
May 1, 1998
to July 31, 1998 7,557,830 0.219 10 3/16 9 5/8
August 1, 1998
to October 31, 1998 7,557,830 0.219 9 13/16 7 3/4
November 1, 1998
to January 31, 1999 7,557,831 0.219 9 5/8 8 11/16
February 1, 1999
to April 30, 1999 7,557,831 0.219 9 7/16 9 1/16
May 1, 1999
to July 30, 1999 7,557,830 0.219 9 1/2 9 3/16
July 31, 1999
to October 29, 1999 7,557,830 0.219 9 9/16 8 9/16
October 30, 1999
to January 31, 2000 9,666,430 0.280 8 7/8 7 3/4
February 1, 2000
to April 28, 2000 7,557,830 0.219 8 3/8 7 13/16
April 29, 2000
to July 31, 2000 7,557,831 0.219 9 8
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
* Amount represents less than $0.01 per share.
</TABLE>
PAGE 18
<PAGE> 20
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
-----------------------------------------------
DIVIDEND REINVESTMENT PLAN (unaudited)
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.
PAGE 19
<PAGE> 21
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
-------------------------------------------------
DIVIDEND REINVESTMENT PLAN (unaudited) (continued)
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.
PAGE 20
<PAGE> 22
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
--------------------------------------------------------
ADDITIONAL SHAREHOLDER INFORMATION(unaudited)
On November 11, 1999, the Annual Meeting of the Trust's Stockholders was held
for the purpose of voting on the following matters:
1. The election of Heath B. McLendon and Charles F. Barber to serve until
the year 2002; and
2. The ratification of the selection of PricewaterhouseCoopers LLP as the
Trust's independent accountants for the fiscal year ending July 31,
2000.
The results of the vote on Proposal 1 were as follows:
<TABLE>
<CAPTION>
SHARES VOTED % OF SHARES SHARES VOTED % OF SHARES
NAME OF DIRECTORS FOR VOTED FOR AGAINST VOTED AGAINST
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Heath B. McLendon 31,826,867 98.8% 387,180 1.2%
Charles F. Barber 31,807,030 98.7 407,017 1.3
</TABLE>
The results of the vote on Proposal 2 were as follows:
<TABLE>
<CAPTION>
% OF SHARES % OF SHARES VOTES % OF SHARES
VOTES FOR VOTED FOR VOTES AGAINST VOTED AGAINST ABSTAINED ABSTAINED
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
31,762,943 98.6% 199,677 0.6% 251,427 0.8%
</TABLE>
PAGE 21
<PAGE> 23
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, Salomon Smith
Barney Inc.
President and Director, SSB Citi Fund
Management LLC and Travelers
Investment 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
LEWIS E. DAIDONE
Senior Vice President and Treasurer
PETER J. WILBY
Executive Vice President
THOMAS K. FLANAGAN
Executive Vice President
JAMES E. CRAIGE
Executive Vice President
ROGER M. LAVAN
Executive Vice President
ANTHONY PACE
Controller
CHRISTINA T. SYDOR
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
PFPC Trust Company
8800 Tinicum Blvd.
Philadelphia, PA 19153
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
------------------------------------------------
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.
