<PAGE> 1
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
February 28, 2000
Dear Shareholders:
We are pleased to provide this semi-annual report for Salomon Brothers 2008
Worldwide Dollar Government Term Trust Inc ("Trust") as of January 31, 2000.
Included are a market commentary and a statement of the Trust's investments and
financial statements for the six months ended January 31, 2000.
During the six months ended January 31, 2000, the net asset value of the Trust
increased from $8.82 per share to $9.27 per share. Dividends from net investment
income totaling $0.50 per share were paid during this period. Assuming the
reinvestment of these dividends in additional shares of the Trust, the net asset
value return for the six months ended January 31, 2000, was 10.96%. In
comparison, the JP Morgan Emerging Markets Bond Index Plus (EMBI+) returned
14.04% and the Salomon Smith Barney Mortgage Index returned 1.15% for the same
time period.
EMERGING MARKETS DEBT SECURITIES
Emerging markets debt returned 14.04% for the six months ended January 31, 2000.
Individual country returns varied widely with Russia appreciating over 34% and
Ecuador declining over 21%. Index spreads tightened by over 240 basis points
during the six-month period ended January 31, 2000 at 904 basis points over
Treasuries.
While emerging market fundamentals were stable to improving over the past six
months, the market was preoccupied with U.S. interest rates. The Federal Reserve
Board ("Fed") increased U.S. short-term interest rates three times from August
1999 until early February 2000, moving short rates from 5.00% to 5.75%. The Fed
also changed its future bias toward tightening during the period, creating some
additional uncertainty in the market. Concerns about the direction of U.S.
interest rates impacted returns in emerging markets debt in August and November
1999 and again in January 2000. An index of U.S. Treasuries with comparable
maturities to emerging markets debt declined by 1.1% over the six months ended
January 31, 2000. This relatively poor performance of the Treasury market
negatively impacted the collateralized Brady bonds in the Trust's portfolio.
According to the terms of the Trust's prospectus, these collateralized bonds,
which are backed by U.S. government zero-coupon bonds, account for over 40% of
the Trust's portfolio.
The fundamental and technical outlook for emerging markets debt improved over
the past six months. Rising commodity prices, particularly oil prices, aided the
fundamental outlook in oil producing countries including Russia, Venezuela and
Mexico. The dramatic rise in oil prices has had an important positive impact on
the fiscal budgets of all oil producing countries. The improving fundamental
picture has attracted additional investment capital into the market. This inflow
of capital has helped the technical position of the market. Trading volumes have
improved over the past few months and market volatility has declined markedly
from the
<PAGE> 2
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
levels earlier in the year. In response to the improved fundamental and
technical outlook, a number of countries have come to market with Brady bond
exchange offers and new debt issues. These offers have generally been
attractively priced and have been well received by the market.
Russia dominated market returns over the past six months, returning 34.92%
during the period. Rising commodity prices supported Russia's fundamental
outlook. In addition, the country made unexpectedly rapid progress in its debt
restructuring talks with the London Club of official creditors. In early
February, Russia reached an agreement with the London Club to restructure
defaulted Soviet-era debt. The agreement helps open the way for Russia to return
to the capital markets presumably in 2001, when they refinance a maturing issue
of Eurobonds.
Brazil (up 17.53%), Bulgaria (up 19.75%) and Morocco (up 14.39%) joined Russia
as the only countries to out-perform the market during the past six months.
Improving fundamentals drove returns in each of these countries, although their
returns were not dramatically higher than five other Index countries with
double-digit returns (see table below). All Index countries except Ecuador had
positive returns for the past six months.
RETURNS OF EMBI+ COUNTRIES
SIX-MONTH PERIOD ENDED JANUARY 31, 2000
<TABLE>
<S> <C>
Russia............... 34.92%
Argentina............ 13.42
Venezuela............ 10.67
Poland............... 3.27
Bulgaria............. 19.75
Peru................. 13.06
Panama............... 9.10
Philippines.......... 2.53
Brazil............... 17.53
Mexico............... 11.74
Nigeria.............. 5.26
Ecuador.............. (21.38)
Morocco.............. 14.39
Colombia............. 11.42
S. Korea............. 4.55
EMBI+................ 14.04
</TABLE>
For illustrative purposes only and not representative of performance of the
Trust during this period.
Ecuador defaulted on the August coupon payment on its Brady bonds, marking the
first default on a Brady issue since the program was established in the early
1990s. The country has struggled in recent years with weak agricultural
commodity prices and the effects of the changing El Nino weather patterns. In
addition, a failure by the administration and Congress to create a working
coalition has effectively blocked some badly needed reform legislation. Ecuador
is currently working with the International Monetary Fund ("IMF") to develop a
revised program which will be the basis for discussions with creditors.
Ecuador's Brady bonds traded down dramatically after the default. For the
six-month period ended January 31, 2000, Ecuador declined 21.38%.
The outlook for emerging markets debt continues to be attractive with spreads of
approximately 800 basis points over U.S. Treasuries. We remain fully invested in
our emerging markets debt allocation.
MORTGAGE-BACKED SECURITIES
The U.S. agency mortgage-backed securities market as measured by the Salomon
Smith Barney Mortgage Index returned a very modest 1.15% for the six months
ended January 31, 2000.
<PAGE> 3
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
Performance of U.S. agency mortgage-backed securities, which the Trust had
approximately 41.3% of its assets as of January 31, 2000, was hampered by rising
U.S. interest rates during the last six months. Despite Y2K fears, the U.S.
economy remained particularly robust over this time period. With unemployment
levels reaching decade lows and U.S. stocks rallying to new highs, the Fed
attempted to slow the economy and raised interest rates by 50 basis points in
two 25 basis point moves over the past six months. Although performance of U.S.
agency mortgage securities was very modest relative to U.S. Treasuries they
performed very well. For the six-month period ended January 31, 2000, the
Salomon Smith Barney Treasury Index returned 0.32%.
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. This strategy has worked well, as the correlation
between U.S. Governments and Foreign Governments of our choosing have been
relatively low. For example, 1999 proved to be an especially good year for the
debt of countries such as Brazil and Mexico, offsetting the somewhat
disappointing results on U.S. government debt.
* * *
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 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 new
century.
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> 4
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (unaudited)
January 31, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT SECURITY VALUE
- ----------------------------------------------------------------------------------------------
<C> <S> <C>
SOVEREIGN BONDS -- 54.3%
ARGENTINA -- 11.0%
Republic of Argentina:
$56,000,000 Discount Bond, Series L-GL, 6.875% due 3/31/23 (a)(b)....... $ 43,540,000
22,260,000 Par Bond, Series L-GP, 6.000% due 3/31/23 (b)............... 14,288,138
------------
57,828,138
------------
BRAZIL -- 12.0%
Federal Republic of Brazil:
1,162,538 C Bond, 8.000% due 4/15/14 (c).............................. 811,597
10,375,000 DCB, Series L, 7.000% due 4/15/12 (a)....................... 7,275,469
38,750,000 Discount Bond, Series Z-L, 6.937% due 4/15/24 (a)(b)........ 28,650,781
16,144,500 EI Bond, Series L, 6.937% due 4/15/06 (a)(b)................ 13,813,638
2,000,000 NMB, Series L, 7.000% due 4/15/09 (a)....................... 1,566,250
17,450,000 Par Bond, Series Z-L, 5.750% due 4/15/24 (a)(b)............. 10,775,375
------------
62,893,110
------------
BULGARIA -- 6.0%
Republic of Bulgaria:
32,800,000 Discount Bond, Tranche A, 7.0625% due 7/28/24 (a)(b)........ 25,953,000
7,000,000 IAB, Series PDI, 7.0625% due 7/28/11 (a).................... 5,530,000
------------
31,483,000
------------
ECUADOR -- 2.3%
Republic of Ecuador:
7,900,000 Discount Bond, 6.750% due 2/28/25 (a)(d).................... 3,002,000
26,450,000 Par Bond, 4.000% due 2/28/25 (a)(d)(e)...................... 9,009,531
------------
12,011,531
------------
IVORY COAST -- 1.1%
Republic of Ivory Coast:
14,000,000 FLIRB, 2.000% due 3/29/18 (a)............................... 2,730,000
12,993,750 PDI Bond, 2.000% due 3/29/18 (a)............................ 3,118,500
------------
5,848,500
------------
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 4
<PAGE> 5
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (unaudited) (continued)
January 31, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT SECURITY VALUE
- ----------------------------------------------------------------------------------------------
<C> <S> <C>
MEXICO -- 7.9%
United Mexican States:
$12,750,000 Discount Bond, Series A, 6.9325% due 12/31/19 (a)(b)
(including 19,614,000 rights)........................... $ 11,865,470
4,950,000 Discount Bond, Series B, 6.9425% due 12/31/19 (a)
(including 7,615,000 rights)............................ 4,606,594
200,000 Discount Bond, Series D, 6.9025% due 12/31/19 (a)
(including 308,000 rights).............................. 186,125
2,150,000 Par Bond, Series A, 6.250% due 12/31/19
(including 2,150,000 rights)............................ 1,679,688
29,850,000 Par Bond, Series B, 6.250% due 12/31/19 (b)
(including 29,850,000 rights)........................... 23,320,313
------------
41,658,190
------------
PANAMA -- 0.1%
766,126 Republic of Panama, PDI Bond, 7.0625% due 7/17/16 (a)(c).... 606,676
------------
PERU -- 1.9%
23,000,000 Republic of Peru, Par Bond, 3.000% due 3/7/27 (a)(b)........ 10,005,000
------------
PHILIPPINES -- 2.4%
14,500,000 Republic of the Philippines, Series B, 6.500% due 12/1/17
(a)(b).................................................... 12,470,000
------------
RUSSIA -- 0.1%
Russia, Ministry of Finance, Global Bond:
350,000 8.750% due 7/24/05 (e)...................................... 223,353
600,000 12.750% due 6/24/28......................................... 436,125
------------
659,478
------------
VENEZUELA -- 9.5%
Republic of Venezuela:
15,238,031 DCB, Series DL, 7.000% due 12/18/07 (a)(b).................. 11,971,378
41,000,000 Discount Bond, Series W-A, 7.000% due 3/31/20 (a)(b)
(including 292,740 warrants)............................ 29,930,000
6,500,000 Discount Bond, Series W-B, 6.875% due 3/31/20 (a)
(including 46,410 warrants)............................. 4,745,000
1,428,560 FLIRB, Series A, 6.875% due 3/31/07 (a)..................... 1,127,670
2,500,000 Par Bond, 6.750% due 3/31/20................................ 1,681,250
------------
49,455,298
------------
TOTAL SOVEREIGN BONDS (Cost -- $264,609,896)................ 284,918,921
------------
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 5
<PAGE> 6
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (unaudited) (continued)
January 31, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT SECURITY VALUE
- ----------------------------------------------------------------------------------------------
<C> <S> <C>
MORTGAGE-BACKED SECURITIES -- 41.3%
Federal Home Loan Mortgage Corporation (FHLMC):
$11,500,000 6.500%, 30 Year, Gold (f)(g)................................ $ 10,676,945
5,050,316 Series 1599, Class D, 6.500% due 6/15/19 (PAC I/O).......... 240,476
1,923,022 Series 1610, Class PH, 6.500% due 3/15/19 (PAC I/O)......... 142,957
2,217,752 Series 1617, Class PF, 6.500% due 6/15/18 (PAC I/O)......... 67,087
2,686,346 Series 2062, Class PL, 6.500% due 10/15/16 (PAC I/O)........ 450,802
11,577,500 Series 2075, Class IC, 6.500% due 7/15/16 (PAC I/O)......... 1,685,973
12,665,698 Series 2086, Class PK, 6.500% due 5/15/18 (PAC I/O)......... 1,373,437
15,485,000 Series 2098, Class IB, 6.000% due 11/15/02 (PAC I/O)........ 2,303,394
Federal National Mortgage Association (FNMA):
2,000,000 6.000%, 30 Year (f)(g)...................................... 1,799,360
35,500,000 6.500%, 30 Year (f)(g)...................................... 32,937,255
93,000,000 7.000%, 30 Year (f)(g)...................................... 88,611,330
51,500,000 7.500%, 30 Year (f)(g)...................................... 50,276,875
20,000,000 8.000%, 30 Year (f)(g)...................................... 19,943,600
2,174,707 Trust 1993-183, Class EA, 6.500% due 3/25/17 (REMIC) (PAC
I/O)...................................................... 75,136
2,324,418 Trust 1993-189, Class PH, 6.500% due 2/25/19 (REMIC) (PAC
I/O)...................................................... 175,784
6,322,486 Trust 1998-15, Class PJ, 6.500% due 2/18/21 (REMIC) (PAC
I/O)...................................................... 930,591
5,032,766 Trust 1998-44, Class IA, 6.500% due 7/18/16 (REMIC) (PAC
I/O)...................................................... 765,924
4,026,309 Trust 1998-44, Class JB, 6.500% due 2/18/08 (REMIC) (PAC
I/O)...................................................... 252,902
10,000,000 Trust 1998-58, Class PD, 6.500% due 3/25/21 (REMIC) (PAC
I/O)...................................................... 1,462,500
16,217,041 Trust 1998-63, Class IA, 6.000% due 10/25/23 (REMIC) (PAC
I/O)...................................................... 2,630,201
1,600,000 Trust 1998-68, Class I, 6.500% due 12/25/19 (REMIC) (PAC
I/O)...................................................... 216,000
------------
TOTAL MORTGAGE-BACKED SECURITIES (Cost -- $222,888,877)..... 217,018,529
------------
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 6
<PAGE> 7
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (unaudited) (continued)
January 31, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT SECURITY VALUE
- ----------------------------------------------------------------------------------------------
<C> <S> <C>
ZERO COUPON MUNICIPAL BONDS -- 4.4%
$11,200,000 Austin, Texas Utility System Revenue, Series A, due
11/15/08.................................................. $ 6,869,408
Edinburg, Texas Cons. Independent School District:
1,845,000 Due 2/15/08................................................. 1,177,055
2,705,000 Due 2/15/09................................................. 1,621,864
5,470,000 Harris County, Texas, due 8/15/08........................... 3,401,957
10,535,000 Texas State Public Finance Authority Building Revenue, due
2/1/08.................................................... 6,751,355
Westmoreland County, Pennsylvania:
2,665,000 Series G, due 6/1/08...................................... 1,672,421
2,515,000 Series G, due 12/1/08..................................... 1,534,779
------------
TOTAL ZERO COUPON MUNICIPAL BONDS (Cost -- $23,439,013)..... 23,028,839
------------
TOTAL INVESTMENTS -- 100% (Cost -- $510,937,786)............ $524,966,289
============
</TABLE>
- --------------------------------------------------------------------------------
(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) Payment-in-kind security for which part of the income earned is capitalized
as additional principal.
(d) Bond in default.
(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.
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 7
<PAGE> 8
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES (unaudited)
January 31, 2000
<TABLE>
<S> <C>
ASSETS:
Investments, at value (Cost -- $510,937,786).............. $524,966,289
Interest receivable....................................... 7,718,269
Prepaid expenses.......................................... 6,855
------------
TOTAL ASSETS.............................................. 532,691,413
------------
LIABILITIES:
Payable for securities purchased.......................... 205,799,963
Payable to bank........................................... 6,766,896
Investment advisory fee payable........................... 164,219
Administration fee payable................................ 39,506
Accrued expenses.......................................... 108,877
------------
TOTAL LIABILITIES......................................... 212,879,461
------------
TOTAL NET ASSETS.......................................... $319,811,952
============
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....................... 6,618,367
Accumulated net realized loss on investments.............. (24,402,792)
Net unrealized appreciation of investments................ 14,028,503
------------
TOTAL NET ASSETS.......................................... $319,811,952
============
NET ASSET VALUE, PER SHARE ($319,811,952/34,510,639
shares)................................................... $9.27
============
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 8
<PAGE> 9
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
For the Six Months Ended January 31, 2000
<TABLE>
<S> <C>
INCOME:
Interest.................................................. $ 17,760,222
------------
EXPENSES:
Investment advisory fees (Note 2)......................... 955,056
Administration fees (Note 2).............................. 230,391
Audit and tax services.................................... 35,287
Custody................................................... 32,666
Shareholder communications................................ 30,246
Legal fees................................................ 25,204
Shareholder and system servicing fees..................... 25,204
Listing fees.............................................. 16,391
Directors' fees and expenses.............................. 16,130
Other..................................................... 6,614
------------
TOTAL EXPENSES............................................ 1,373,189
------------
NET INVESTMENT INCOME....................................... 16,387,033
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 3):
Net Realized Loss From Security Transactions.............. (7,861,543)
------------
Change in Net Unrealized Appreciation (Depreciation) of
Investments:
Beginning of Period..................................... (10,138,052)
End of Period........................................... 14,028,503
------------
INCREASE IN NET UNREALIZED APPRECIATION................... 24,166,555
------------
NET GAIN ON INVESTMENTS..................................... 16,305,012
------------
INCREASE IN NET ASSETS FROM OPERATIONS...................... $ 32,692,045
============
</TABLE>
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SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 9
<PAGE> 10
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEAR
JANUARY 31, 2000 ENDED
(UNAUDITED) JULY 31, 1999
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income................................... $ 16,387,033 $ 33,190,478
Net realized loss....................................... (7,861,543) (10,106,093)
Increase in net unrealized appreciation
(depreciation)........................................ 24,166,555 (51,046,253)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS....... 32,692,045 (27,961,868)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income................................... (17,224,260) (30,231,322)
------------ ------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO
SHAREHOLDERS.......................................... (17,224,260) (30,231,322)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS....................... 15,467,785 (58,193,190)
NET ASSETS:
Beginning of Period..................................... 304,344,167 362,537,357
------------ ------------
END OF PERIOD*.......................................... $319,811,952 $304,344,167
============ ============
*Includes undistributed net investment income of:........... $6,618,367 $7,455,594
============ ============
</TABLE>
- --------------------------------------------------------------------------------
STATEMENT OF CASH FLOWS (unaudited)
For the Six Months Ended January 31, 2000
<TABLE>
<S> <C>
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES:
Purchases of portfolio securities....................... $(35,168,875)
Proceeds from disposition of portfolio securities and
principal paydowns..................................... 40,980,905
Net sales of short-term portfolio securities............ 909,000
------------
6,721,030
Net investment income..................................... 16,387,033
Adjustments to reconcile net investment income to net cash
provided by operating activities:
Amortization of net premium/discount on investments..... (3,944,134)
Capitalized income on payment-in-kind securities........ (26,683)
Net change to receivables/payables related to
operations............................................. (1,510,546)
------------
NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES........... 17,626,700
------------
CASH FLOWS USED BY FINANCING ACTIVITIES:
Decrease in dollar roll transactions...................... (6,564,570)
Cash dividends paid....................................... (17,224,260)
------------
NET CASH FLOWS USED BY FINANCING ACTIVITIES............... (23,788,830)
------------
NET DECREASE IN CASH........................................ (6,162,130)
Payable to Bank, Beginning of Period........................ (604,766)
------------
PAYABLE TO BANK, END OF PERIOD.............................. $ (6,766,896)
============
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 10
<PAGE> 11
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- -------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited)
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 January 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 11
<PAGE> 12
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- ----------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited) (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 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) 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 12
<PAGE> 13
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- -------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited) (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 January 31, 2000, the Adviser owned 13,485 shares of the Trust.
NOTE 3. PORTFOLIO ACTIVITY AND FEDERAL INCOME TAX STATUS
During the six months ended January 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................................................... $35,168,876
===========
Sales....................................................... $37,556,352
===========
</TABLE>
At January 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............................... $ 27,990,095
Gross unrealized depreciation............................... (13,961,592)
------------
Net unrealized appreciation................................. $ 14,028,503
============
</TABLE>
PAGE 13
<PAGE> 14
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC
- ----------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited) (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 January 31, 2000, the Trust
has outstanding net contracts to repurchase mortgage-backed securities of
$205,799,962 for a scheduled settlement of February 14, 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 six months ended January
31, 2000 was $193,583,115.
NOTE 5. SECURITIES TRADED ON A TO-BE-ANNOUNCED BASIS
The Trust may trade securities on a to-be-announced ("TBA") basis. In a TBA
transaction, the Trust commits to purchasing or selling securities which have
not yet been issued by the issuer, particularly the face amount and maturity
date in Government National Mortgage Association ("GNMA") transactions.
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, cash or other liquid 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 January 31, 2000, the Trust held TBA securities with a total cost of
$211,596,368.
NOTE 6. EVENTS SUBSEQUENT TO JANUARY 31, 2000
Subsequent to January 31, 2000, the Board of Directors of the Trust declared
dividends of $0.073 per common share payable February 25, 2000 and March 31,
2000 to shareholders of record on February 15, 2000 and March 14, 2000,
respectively.
PAGE 14
<PAGE> 15
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>
2000(1) 1999(2) 1998 1997 1996 1995
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD..................... $ 8.82 $ 10.51 $ 11.16 $ 8.76 $ 7.57 $ 7.75
------- ------- ------- ------ ------ ------
INCOME (LOSS) FROM OPERATIONS:
Net investment income.................................. 0.47 0.96 0.91 1.00 0.94 0.89
Net realized and unrealized gain (loss)................ 0.48 (1.77) (0.61) 2.31 1.12 (0.19)
------- ------- ------- ------ ------ ------
Total Income (Loss) From Operations.................... 0.95 (0.81) 0.30 3.31 2.06 0.70
------- ------- ------- ------ ------ ------
LESS DISTRIBUTIONS FROM:
Net investment income.................................. (0.50) (0.88) (0.95) (0.91) (0.87) (0.88)
------- ------- ------- ------ ------ ------
NET ASSET VALUE, END OF PERIOD........................... $ 9.27 $ 8.82 $ 10.51 $11.16 $ 8.76 $ 7.57
======= ======= ======= ====== ====== ======
MARKET PRICE PER SHARE, END OF PERIOD.................... $7.9375 $9.4375 $9.6875 $9.875 $8.625 $7.875
======= ======= ======= ====== ====== ======
TOTAL RETURN(3).......................................... (10.88)%++ 7.08% 7.95% 26.20% 21.39% 12.05%
RATIOS TO AVERAGE NET ASSETS:
Expenses............................................... 0.86%+ 0.87% 0.90% 0.93% 1.01% 1.01%
Net investment income.................................. 10.28%+ 10.34% 8.38% 10.11% 11.27% 12.20%
SUPPLEMENTAL DATA:
Net assets, end of period (millions)................... $320 $304 $363 $385 $302 $261
Average net assets (millions).......................... $315 $321 $374 $340 $287 $251
Portfolio turnover rate................................ 7% 37% 34% 30% 32% 52%
Asset coverage to dollar rolls outstanding
at end of period..................................... 255%* 262%* 273%* 316% 320% 302%
Total mortgage dollar rolls outstanding
at end of period (millions).......................... $206 $188 $209 $178 $137 $129
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
(1) For the six months ended January 31, 2000 (unaudited).
(2) For the year ended July 30, 1999.
(3) 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.
++ Total return is not annualized, as it may not be
representative of the total return for the year.
+ Annualized.
* Securities have been segregated to cover all outstanding
mortgage dollar rolls at year-end.
</TABLE>
PAGE 15
<PAGE> 16
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
<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
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
* Amount represents less than $0.01 per share.
</TABLE>
PAGE 16
<PAGE> 17
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 17
<PAGE> 18
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.
- -------------------------------------
OTHER INFORMATION (unaudited)
Year 2000 Issue. As the year 2000 began, there were few problems caused by the
inability of certain computer systems to tell the difference between the year
2000 and the year 1900 (commonly known as the "Year 2000" issue). It is still
possible that some computer systems could malfunction in the future because of
the year 2000 issue or as a result of actions taken to address the Year 2000
issue. The Investment Adviser does not anticipate that its services or those of
the Trust's other service providers will be adversely affected, but the
Investment Adviser will continue to monitor the situation. If malfunctions
related to the Year 2000 issue do arise, the Trust and its investments could be
negatively affected.
PAGE 18
<PAGE> 19
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 19
<PAGE> 20
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
PNC Bank N.A.
8800 Tinicom 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.
<PAGE> 21
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<PAGE> 22
(This page intentionally left blank.)
<PAGE> 23
------------------------------------------------------------------
SALOMON BROTHERS
2008 WORLDWIDE DOLLAR
GOVERNMENT TERM TRUST INC
SEMI-ANNUAL REPORT
JANUARY 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
SBGSEMI 1/00
