<PAGE>
<PAGE>
GLOBAL PARTNERS INCOME FUND INC.
July 19, 1996
Dear Shareholders:
We are pleased to provide this interim report for the Global Partners Income
Fund Inc. (the 'Fund'), including market commentary and a statement of the
Fund's current investments.
During the fiscal quarter ended May 31, 1996, the net asset value of the Fund
increased from $12.60 per share at February 29, 1996 to $13.37 per share at May
31, 1996. Dividends of $0.35625 per share were declared during the quarter.
Assuming that these dividends were reinvested in additional shares of the Fund,
the net asset value return for the quarter ended May 31, 1996 was 9.11%. During
the same period, the Salomon Brothers Brady Bond Index, which we use as a
measure of the return of the overall market for emerging markets debt, returned
8.75%, and the Salomon Brothers High-Yield Market Index gained 0.03%. The Fund's
primary objective is to achieve high current income. As a secondary objective,
the Fund seeks capital appreciation. We seek to achieve these objectives by
combining two asset classes -- emerging markets debt and U.S. high-yield
corporate debt.
Investments in securities of emerging markets issuers, including both
obligations of sovereign governments and companies, totaled approximately 52% of
total investments at the end of the quarter. The remainder of the Fund's assets
was invested in high-yield corporate bonds. The overweighting of the portfolio
in emerging markets debt is based on our view that although both asset classes
represent good value in today's market, emerging markets debt has more potential
for capital appreciation in the near term. This balance is constantly changing
and is managed for relative value.
U.S. HIGH-YIELD MARKET
The high-yield market, measured by the Salomon Brothers High-Yield Market Index,
increased 0.03% during the quarter ended May 31, 1996, and continued to outpace
U.S. Treasuries in each of the last three months. The average market yield
finished the quarter at 10.14%. This marked the second time this year that
yields were in the double digits. Both mutual fund inflows and new issues of
high-yield bonds remain strong. One sector of the high-yield market that
outperformed the market index was junior subordinate bonds. Sectors that
underperformed the market included BB and BBB/BB bonds. We believe the
fundamental outlook for the high-yield market continues to be positive.
EMERGING MARKETS
After a difficult start, emerging markets turned in a strong performance in the
latest quarter ended May 31, 1996. The completion of Mexico's 30-year Brady bond
swap for Eurobonds, along with speculation over the likelihood of similar deals
for other Brady countries, lent a positive tone to the market by the end of May.
In March and early April, uncertainty about U.S. interest rates rattled local
and external debt markets. By the end of the period, however, individual country
fundamentals began to have a dominant impact on performance in the emerging
markets.
The Mexican economy continues to demonstrate strong fundamental progress.
Gross domestic product in the first quarter of 1996 was down 1% in real
terms from the same period last
<PAGE>
<PAGE>
GLOBAL PARTNERS INCOME FUND INC.
year, which was much less than the 2.5% - 3.0% drop that government
officials had predicted. The smaller-than-expected drop came from positive
performance in the industrial and primary sectors, which grew 2.4% and 0.8%
for the year, respectively.
In Ecuador, presidential elections were progressing as expected through
May. Based on first round election results, presidential hopeful Jaime
Nebot was expected to be the winner in the July elections. However, leftist
candidate Abdala Bucaram won the election in a very close vote. As a
priority, Bucaram's new government will need to resolve important issues of
monetary and fiscal policy.
Venezuelan and International Monetary Fund authorities finalized terms of a
stand-by credit arrangement that will be implemented in conjunction with
that country's new free-market program. Venezuelan Planning Minister
Teodoro Petkoff visited New York in May to promote the initiative and
address investors' concerns regarding potential social unrest.
Outside Latin America, Russia continues to outperform the overall market.
By the end of May, President Boris Yeltsin's improving position in the
polls and a new post-reform low in monthly inflation of 2.2% in April
bolstered investor sentiment. Russia's output growth, however, has yet to
be positively impacted by these developments. Industrial production fell in
the first quarter and, while some recovery is likely in the next six
months, positive growth is not expected for the year as a whole.
In the African region, the unexpected fall in the value of South Africa's
currency, the rand, since mid-February 1996 presents investors with both
opportunities and challenges. On the positive side, it will constrain
consumer consumption and, therefore, improve the country's trade balance.
Negatively, the devaluation will boost inflation and widen the fiscal
deficit. Also, the devaluation unsettles foreign investor confidence, vital
to South Africa's ability to attract inexpensive private capital from
abroad.
DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN
The Board of Directors of the Fund recently approved amendments to the Fund's
Dividend Reinvestment and Cash Purchase Plan (the 'Plan'), effective September
6, 1996. The Board, along with management of the Fund, believe that these
amendments are in the best interests of the Fund and its shareholders.
Under the current terms of the Plan, whenever the Fund declares a distribution
from capital gains or an income dividend payable in cash, the Plan Agent,
American Stock Transfer & Trust Company, purchases additional shares on the
open-market for shareholders participating in the Plan, regardless of whether
the Fund's shares are trading at a discount or a premium to net asset value. As
amended, the Plan provides that if the Fund's shares are trading at a premium to
net asset value, Plan participants will receive newly-issued shares rather than
shares purchased on the open-market. If the Fund's shares are trading at a
discount, the Plan Agent will purchase additional shares on the open-market. If
a discount shifts to a premium or if the Plan Agent cannot complete such
purchases within the time limits set forth in the Plan, participants will
receive the uninvested portion of the dividend or distribution in newly-issued
shares. One benefit of this new structure is that in the case of a market
premium, shares will now be issued to participants at net asset value (or 95% of
the market price if the net asset value is less than 95%
<PAGE>
<PAGE>
GLOBAL PARTNERS INCOME FUND INC.
of the market price) as opposed to the current structure in which shares are
purchased for participants at the higher market price.
Shareholders who previously elected not to participate in the Plan may enroll by
completing the Authorization Card attached to the Terms and Conditions of the
Plan located in the back of this Interim Report. IF YOUR SHARES ARE HELD IN THE
NAME OF A BROKER OR NOMINEE, YOU SHOULD CONTACT YOUR BROKER OR NOMINEE FOR MORE
INFORMATION ABOUT YOUR ABILITY TO PARTICIPATE IN THE PLAN.
We highly encourage those of you who are currently not participating in the Plan
to do so because the Plan offers you a prompt, simple and inexpensive way to put
your dividends and distributions to work through reinvestment in additional
shares of capital stock of the Fund. A further discussion of the benefits of
participation in the Plan follows this letter, and we encourage you to consider
the information carefully.
We encourage you to read the financial statements that follow for details about
the Fund's investments. A recorded update of developments affecting emerging
markets debt securities is available by calling (800) 421-4777. The update also
includes specific information about the Fund, its portfolio, country allocations
and recent performance.
Cordially,
MICHAEL S. HYLAND ALAN H. RAPPAPORT
Michael S. Hyland Alan H. Rappaport
Chairman of the Board President
<PAGE>
<PAGE>
GLOBAL PARTNERS INCOME FUND INC.
Automatic Dividend Reinvestment and Cash Purchase Plan
DIVIDEND REINVESTMENT PLAN
The Automatic Dividend Reinvestment Plan (the 'Plan'), administered by American
Stock Transfer & Trust Company as Plan Agent for shareholders of Global Partners
Income Fund Inc. (the 'Fund'), offers you a prompt, simple and inexpensive way
to put your dividends and distributions to work through reinvestment in
additional full and fractional shares of capital stock of the Fund.
Money from dividends and distributions can lie idle for months at a time;
however, with the Plan, your dividends and distributions are promptly invested
for you, automatically increasing your holdings in the Fund. All paperwork is
done for you automatically by American Stock Transfer & Trust Company, and you
will receive statements from the Plan Agent to simplify your personal records.
CASH PURCHASE PLAN
The Cash Purchase Plan allows you to purchase shares of the Fund conveniently
and inexpensively, without committing large dollar amounts. Under the Cash
Purchase Plan, you have the option of making additional cash payments of at
least $250 to the Agent which will be used to purchase additional shares of the
Fund. Purchases of shares will be made monthly. You may make these payments
regularly or from time to time, as you choose. You may also vary the amount of
each optional payment as long as it is at least $250. Participants should send
in voluntary cash payments to be received by the Plan Agent approximately ten
days before each purchase date. The purchase date will be on or about the first
business day of each month. All cash payment shares will be purchased on the
open market at prevailing market prices and in accordance with the 'Terms and
Conditions of Authorization for Amended and Restated Dividend Reinvestment and
Cash Purchase Plan.' There is no maximum amount of investment under the Cash
Purchase Plan.
Shares purchased under the Cash Purchase Plan will be held as uncertificated
shares. Fractional shares cannot be issued in certificate form, and dividends
and distributions on those shares held by the Agent will be credited to each
participant's account.
COST TO YOU
Except as specifically noted, you will not bear any costs of administering the
Plan. You pay only your proportionate share of the commissions paid on all
open-market purchases. Dividends and distributions, even though automatically
reinvested, continue to be taxable.
TO ENROLL
The complete Dividend Reinvestment and Cash Purchase Plan and Authorization Card
can be found at the back of this report. If you are not already a participant,
you must complete the Authorization Card and return it in the envelope provided
in order to participate. IF YOUR SHARES ARE HELD IN THE NAME OF A BROKER OR
NOMINEE, YOU SHOULD CONTACT YOUR BROKER OR NOMINEE FOR MORE INFORMATION ABOUT
YOUR ABILITY TO PARTICIPATE IN THE PLAN. If you have any questions, contact the
Plan Agent at (718) 921-8200.
<PAGE>
<PAGE>
GLOBAL PARTNERS INCOME FUND INC.
Statement of Investments
May 31, 1996 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) Corporate Bonds -- 64.8% (NOTE 2)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Basic Industries -- 11.0%
$ 2,000 Algoma Steel Inc., 12.375%, 7/15/05............................................ $ 2,002,500
2,000 Americold Corp., 12.875%, 5/01/08.............................................. 2,050,000
1,500 Asia Pulp & Paper International Finance, 11.75%, 10/01/05...................... 1,537,500
3,500 Berry Plastics, 12.25%, 4/15/04................................................ 3,780,000
1,000 Crown Paper Co., 11.00%, 9/01/05C.............................................. 945,000
1,900 Florida Coast Paper LLC, 12.75%, 6/01/03W...................................... 1,942,750
1,000 Harris Chemical, 10.25%, 7/15/01C.............................................. 1,015,000
1,250 Indah Kiat International, 12.50%, 6/15/06C..................................... 1,325,000
2,500 NL Industries, Zero Coupon until 10/15/98 (13.00% thereafter), 10/15/05C....... 1,962,500
1,000 Renco Metals Inc., 12.00%, 7/15/00............................................. 1,112,500
2,000 Stone Container, 9.875%, 2/01/01C.............................................. 1,930,000
2,000 Valcor, 9.625%, 11/01/03....................................................... 1,810,000
------------
21,412,750
------------
Consumer Cyclicals -- 4.6%
2,000 Cole National Group Inc., 11.25%, 10/01/01..................................... 2,070,000
3,000 Finlay Fine Jewelry, 10.625%, 5/01/03C......................................... 3,030,000
1,000 Flagstar, 10.75%, 9/15/01C..................................................... 895,000
1,000 Hills Stores, 12.50%, 7/01/03W................................................. 1,026,875
2,000 Wyndham Hotel Corp., 10.50%, 5/15/06........................................... 2,010,000
------------
9,031,875
------------
Consumer Non-Cyclicals -- 20.6%
1,000 Argosy Gaming Co., 13.25%, 6/01/04W............................................ 1,000,000
1,400 Bally's Grand Inc., 10.375%, 12/15/03C......................................... 1,452,500
1,250 Big V Supermarkets, 11.00%, 2/15/04C........................................... 1,178,125
2,000 Borg-Warner Security Corp., 9.125%, 5/01/03.................................... 1,900,000
2,000 Carr-Gottstein Foods Co., 12.00%, 11/15/05C.................................... 2,075,000
1,000 Dade International Inc., 11.125%, 5/01/06W..................................... 1,030,000
1,000 Empress River Casino Finance, 10.75%, 4/01/02.................................. 1,040,000
1,000 Harvey Casinos Resorts, 10.625%, 6/01/06....................................... 1,005,000
2,250 Hines Horticulture, 11.75%, 10/15/05C.......................................... 2,368,125
1,000 Hollywood Casino Corp., 12.75%, 11/01/03C...................................... 975,000
International Semi-Tech, Zero Coupon until 8/15/00 (11.50% thereafter),
4,000 8/15/03C..................................................................... 2,340,000
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 1
<PAGE>
<PAGE>
GLOBAL PARTNERS INCOME FUND INC.
Statement of Investments (continued)
May 31, 1996 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) Corporate Bonds (continued) (NOTE 2)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Consumer Non-Cyclicals -- 20.6% (concluded)
$ 1,000 Norcal Waste Systems, 12.75%, 11/15/05*,W...................................... $ 1,045,000
3,000 Penn Traffic Co., 9.625%, 4/15/05C............................................. 2,512,500
2,500 Plastic Specialty, 11.25%, 12/01/03............................................ 2,418,750
1,750 Remington Arms, 10.00%, 12/01/03W.............................................. 1,610,000
2,000 Remington Product Co. LLC, 11.00%, 5/15/06W.................................... 1,995,000
2,000 Revlon Worldwide, Series B, Zero Coupon, 3/15/98C.............................. 1,640,000
1,000 Samsonite Corp., 11.125%, 7/15/05C............................................. 1,020,000
1,000 SC International Services, 13.00%, 10/01/05C................................... 1,035,000
2,000 Selmer Co. Inc., 11.00%, 5/15/05............................................... 2,130,000
1,000 Showboat Marina, 13.50%, 3/15/03W.............................................. 1,077,500
1,000 Smiths Food & Drug, 11.25%, 5/15/07............................................ 1,013,750
1,350 Telex Communications, Inc., 12.00%, 7/15/04.................................... 1,444,500
2,000 Trump Atlantic City Associates, 11.25%, 5/01/06C............................... 2,015,000
1,500 Twin Laboratories Inc., 10.25%, 5/15/06W....................................... 1,515,000
1,000 William House Regency, 13.00%, 11/15/05C,W..................................... 1,137,500
------------
39,973,250
------------
Energy -- 2.4%
1,500 Benton Oil & Gas, 11.625%, 5/01/03W............................................ 1,537,500
2,000 Cliffs Drilling, 10.25%, 5/15/03W.............................................. 2,007,500
1,000 KCS Energy Inc., 11.00%, 1/15/03W.............................................. 1,062,500
------------
4,607,500
------------
Financial -- .5%
1,000 Airplanes Pass Through Trust, 10.875%, 3/15/19................................. 1,046,875
------------
Industrial/Manufacturing -- 11.5%
2,000 Alvey Systems Inc., 11.375%, 1/31/03C,W........................................ 2,070,000
1,000 Clark-Schwebel Inc., 10.50%, 4/15/06W.......................................... 1,030,000
2,000 Units Exide Electronics Group, 11.50%, 3/15/06W,#.............................. 2,145,000
2,000 Foamex Capital L.P., 11.25%, 10/01/02.......................................... 2,020,000
5,000 Jordan Industries, 10.375%, 8/01/03C........................................... 4,700,000
3,000 Specialty Equipment, 11.375%, 12/01/03......................................... 3,127,500
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 2
<PAGE>
<PAGE>
GLOBAL PARTNERS INCOME FUND INC.
Statement of Investments (continued)
May 31, 1996 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) Corporate Bonds (concluded) (NOTE 2)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Industrial/Manufacturing -- 11.5% (concluded)
$ 2,000 Talley Mfg. & Technology, 10.75%, 10/15/03..................................... $ 2,030,000
2,000 Units Terex Corp., 13.75%, 5/15/02 (including 8,000 rights)C,W,Y............... 2,050,000
3,500 Venture Holdings Trust, 9.75%, 4/01/04C........................................ 3,045,000
------------
22,217,500
------------
Media/Telecommunications -- 13.2%
3,000 Adelphia Communications, 12.50%, 5/15/02C...................................... 3,082,500
1,500 American Media Operations, Inc., 11.625%, 11/15/04............................. 1,515,000
Brooks Fiber Properties, Zero Coupon until 3/01/01 (10.875% thereafter),
1,000 3/01/06W..................................................................... 560,000
1,500 Cablevision Systems Corp., 10.50%, 5/15/16C.................................... 1,492,500
2,050 Diamond Cable Co., Zero Coupon until 12/15/00 (11.75% thereafter), 12/15/05C... 1,235,125
2,000 Granite Broadcasting, 10.375%, 5/15/05C........................................ 1,970,000
6,000 Hollinger Inc., Convertible Bond, Zero Coupon, 10/05/13........................ 1,987,500
3,500 In Flight Phone, Zero Coupon until 5/15/98 (14.00% thereafter), 5/15/02........ 1,102,500
International Cabletel Inc., Zero Coupon until 2/01/01 (11.50% thereafter),
2,500 2/01/06C..................................................................... 1,475,000
3,500 Marcus Cable Co., Zero Coupon until 6/15/00 (14.25% thereafter), 12/15/05C..... 2,205,000
1,500 Outdoor Systems, 10.75%, 8/15/03............................................... 1,545,000
People's Choice TV Corp., Zero Coupon until 6/01/00 (13.135% thereafter),
2,000 units 6/01/04C,Z............................................................ 1,200,000
3,000 United International Holdings, Zero Coupon, 11/15/99........................... 1,995,000
2,000 USA Mobile Communications, 9.50%, 2/01/04C..................................... 1,920,000
Winstar Communications, Zero Coupon until 10/15/00 (14.00% thereafter),
1,300 10/15/05..................................................................... 741,000
Winstar Communications, Convertible Bond, Zero Coupon until 10/15/00
650 (14.00% thereafter), 10/15/05................................................ 471,250
1,000 Wireless One Inc., 13.00%, 10/15/03C........................................... 1,062,500
------------
25,559,875
------------
Transportation -- 1.0%
2,000 Petro PSC Properties, 12.50%, 6/01/02.......................................... 1,890,000
------------
Total Corporate Bonds (cost $125,079,009)...................................... 125,739,625
------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 3
<PAGE>
<PAGE>
GLOBAL PARTNERS INCOME FUND INC.
Statement of Investments (continued)
May 31, 1996 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) Sovereign Bonds -- 58.1% (NOTE 2)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Argentina -- 7.7%
$19,305 Republic of Argentina, FRB, 6.3125%, 3/31/05*,C................................ $ 14,901,046
------------
Brazil -- 15.3%
27,728 Federal Republic of Brazil, C Bond, 8.00%, 4/15/14C,X.......................... 16,671,579
7,250 Federal Republic of Brazil, EIB, 6.50%, 4/15/06*,C............................. 5,609,688
5,000 Federal Republic of Brazil, Exit Bond, 6.00%, 9/15/13C......................... 2,998,438
3,000 Federal Republic of Brazil, 'New' New Money Bond, 6.5625%, 4/15/09*,C.......... 2,128,125
4,350 Federal Republic of Brazil, Par Z-L, 5.00%, 4/15/24*,C......................... 2,305,500
------------
29,713,330
------------
Bulgaria -- 2.6%
1,750 Republic of Bulgaria, Discount Bond, Tranche A, 6.25%, 7/28/24*,C.............. 892,500
8,750 Republic of Bulgaria, IAB, 6.25%, 7/28/11*,C................................... 4,052,344
------------
4,944,844
------------
Costa Rica -- 6.0%
7,000 Costa Rica, Principal Bond, Series A, 6.25%, 5/21/10C.......................... 4,830,000
11,000 Costa Rica, Principal Bond, Series B, 6.25%, 5/21/15C.......................... 6,820,000
------------
11,650,000
------------
Ecuador -- 10.7%
48,007 Republic of Ecuador, PDI Bond, 6.0625%, 2/28/15*,C,X........................... 20,762,983
------------
Mexico -- 6.4%
13,339 United Mexican States, Global Bond, 11.50%, 5/15/26C........................... 12,371,802
------------
Panama -- 2.1%
1,846 Republic of Panama, FRN, 6.62891%, 5/10/02*,C.................................. 1,723,852
4,000 Republic of Panama, IRB, 3.50%, 12/29/49*,##................................... 2,280,000
------------
4,003,852
------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 4
<PAGE>
<PAGE>
GLOBAL PARTNERS INCOME FUND INC.
Statement of Investments (continued)
May 31, 1996 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) Sovereign Bonds (concluded) (NOTE 2)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Poland -- 1.1%
$ 3,000 Republic of Poland, PDI Bond, 3.75%, 10/27/14*,C............................... $ 2,259,375
------------
Venezuela -- 6.2%
9,000 Republic of Venezuela, DCB, 6.5625%, 12/18/07*,C............................... 6,243,750
Republic of Venezuela, Par Bond, Series A, 6.75%, 3/31/20 (including 47,500
9,500 warrants)C................................................................... 5,723,750
------------
11,967,500
------------
Total Sovereign Bonds (cost $110,116,842)...................................... 112,574,732
------------
Loan Participations -- 14.3%
- ----------------------------------------------------------------------------------------------------------
Kingdom of Morocco, Tranche B, 6.4375%, 1/01/04* (Morgan Guaranty Trust Company
29,176 of New York, Morgan Stanley Emerging Markets Inc.)T.......................... 25,182,941
6,000 Bank for Foreign Economic Affairs, Vnesheconombank*,(a),(b) (J.P. Morgan)T..... 2,606,250
------------
Total Loan Participations (cost $28,410,523)................................... 27,789,191
------------
Warrants(a) -- .2%
- ----------------------------------------------------------------------------------------------------------
Berry Plastics (Exercise price of $18.797 per share expiring on 4/15/04. Each
4,000 warrant exercisable for 1.13237 shares of common stock)...................... 80,000
Warrants
In Flight Phone (Exercise price of $.01 per share expiring on 8/31/02. Each
5,000 warrant exercisable for one share of common stock)........................... 0
Warrants
United International Holdings (Exercise price of $15 per share expiring on
6,000 11/15/99. Each warrant exercisable for one share of common stock)............ 174,000
Warrants
Wireless One Inc. (Exercise price of $11.55 per share. Each warrant exercisable
3,000 for one share of common stock)............................................... 21,000
Warrants
------------
Total Warrants (cost $152,964)................................................. 275,000
------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 5
<PAGE>
<PAGE>
GLOBAL PARTNERS INCOME FUND INC.
Statement of Investments (concluded)
May 31, 1996 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) Repurchase Agreement -- 3.7% (NOTE 2)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Chase Manhattan Bank, N.A., 5.30%, cost $7,234,000, dated 5/31/96, $7,237,195
due 6/03/96, (collateralized by $7,235,000, U.S. Treasury Note, 5.625%, due
$ 7,234 6/30/97, valued at $7,388,744)............................................... $ 7,234,000
------------
Total Investments -- 141.1% (cost $270,993,338)............................... 273,612,548
------------
Liabilities in Excess of Other Assets -- (41.1%).............................. (79,676,118)
------------
Net Assets -- 100.0%
(equivalent to $13.37 per share on 14,507,134 common shares outstanding)..... $193,936,430
------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
* Rate shown reflects current rate on instrument with variable rate or step
coupon rates.
C All or a portion of the security is segregated as collateral pursuant to a
loan agreement.
W Pursuant to Rule 144A under the Securities Act of 1933, this security can
only be sold to qualified institutional investors.
X Payment-in-kind security for which part of the interest earned is capitalized
as additional principal.
Y Each unit is comprised of a $1,000 par Senior Discount Note due 5/15/02.
Z Each unit is comprised of a $1,000 par Senior Discount Note due 6/01/04 and a
warrant to purchase 1.427 shares of common stock.
# Each unit is comprised of a $1,000 par Senior Subordinated Note due 3/15/06
and a warrant to purchase 5.15 shares of common stock.
## 'When and if issued' security.
T Participation interests were acquired through the financial institutions
indicated parenthetically.
(a) Non-income producing security.
(b) Security is currently in default.
DCB -- Debt Conversion Bond.
EIB -- Eligible Interest Bond.
FRB -- Floating Rate Bond.
FRN -- Floating Rate Note.
IAB -- Interest in Arrears Bond.
IRB -- Interest Reduction Bond.
PDI -- Past Due Interest.
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 6
<PAGE>
<PAGE>
GLOBAL PARTNERS INCOME FUND INC.
Statement of Assets and Liabilities
May 31, 1996 (unaudited)
<TABLE>
<S> <C>
ASSETS
Investments, at value (cost -- $270,993,338)................................................. $273,612,548
Cash.......................................................................................... 32,510
Interest receivable........................................................................... 4,510,878
Unamortized organization expenses (Note 2).................................................... 53,637
Prepaid expenses.............................................................................. 15,800
------------
Total assets.......................................................................... 278,225,373
------------
LIABILITIES
Loan payable (Note 5)......................................................................... 75,000,000
Payable for investments purchased............................................................. 8,156,444
Accrued interest expense on loan (Note 5)..................................................... 826,042
Accrued management fee (Note 3)............................................................... 179,161
Accrued audit and tax return preparation fees................................................. 40,849
Accrued printing and mailing fees............................................................. 36,952
Accrued legal fee............................................................................. 25,333
Accrued custodian expense..................................................................... 11,723
Other accrued expenses........................................................................ 12,439
------------
Total liabilities..................................................................... 84,288,943
------------
NET ASSETS
Common Stock ($.001 par value, 100,000,000 shares authorized; 14,507,134 shares
outstanding)................................................................................ 14,507
Additional paid-in capital.................................................................... 202,591,603
Undistributed net investment income........................................................... 3,436,398
Accumulated realized loss on investments...................................................... (14,725,288)
Net unrealized appreciation on investments.................................................... 2,619,210
------------
Net assets............................................................................ $193,936,430
------------
NET ASSET VALUE PER SHARE ($193,936,430[div]14,507,134 shares)................................ $ 13.37
------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 7
<PAGE>
<PAGE>
GLOBAL PARTNERS INCOME FUND INC.
Statement of Operations
For the Nine Months Ended May 31, 1996 (unaudited)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
INCOME
Interest (includes discount accretion of $5,453,951)....................... $24,146,950
EXPENSES
Interest expense (Note 5).................................................. $3,999,556
Management fee (Note 3).................................................... 1,467,959
Audit and tax services..................................................... 53,526
Custodian.................................................................. 53,138
Transfer agent............................................................. 44,131
Printing................................................................... 39,198
Legal...................................................................... 36,802
Directors' fees and expenses (Note 3)...................................... 25,079
Listing fee................................................................ 18,068
Shareholder annual meeting................................................. 17,046
Amortization of deferred organization expenses (Note 2).................... 16,719
Other...................................................................... 9,608 5,780,830
---------- -----------
Net investment income.......................................................... 18,366,120
-----------
NET REALIZED AND UNREALIZED GAIN
Net Realized Gain on Investments............................................... 10,699,606
Change in Net Unrealized Appreciation (Depreciation) on Investments............ 20,085,583
-----------
Net realized gain and change in net unrealized appreciation (depreciation) on
investments................................................................... 30,785,189
-----------
NET INCREASE IN NET ASSETS FROM OPERATIONS..................................... $49,151,309
-----------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 8
<PAGE>
<PAGE>
GLOBAL PARTNERS INCOME FUND INC.
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
FOR THE
NINE MONTHS FOR THE
ENDED YEAR ENDED
MAY 31, 1996 AUGUST 31,
(UNAUDITED) 1995
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income....................................................... $ 18,366,120 $ 22,405,751
Net realized gain (loss) on investments..................................... 10,699,606 (25,424,894)
Change in net unrealized appreciation (depreciation) on investments......... 20,085,583 10,617,570
------------ ------------
Net increase in net assets from operations.................................. 49,151,309 7,598,427
DIVIDENDS
From net investment income.................................................. (16,393,077) (20,672,691)
------------ ------------
Total increase (decrease) in net assets..................................... 32,758,232 (13,074,264)
NET ASSETS
Beginning of period......................................................... 161,178,198 174,252,462
------------ ------------
End of period (includes undistributed net investment income of $3,436,398
and $1,463,355, respectively)............................................. $193,936,430 $161,178,198
------------ ------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 9
<PAGE>
<PAGE>
GLOBAL PARTNERS INCOME FUND INC.
Statement of Cash Flows
For the Nine Months Ended May 31, 1996 (unaudited)
<TABLE>
<S> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Purchases of portfolio securities......................................................... $(162,028,305)
Proceeds from sales of portfolio investments and principal paydowns....................... 167,888,644
Net purchases of short-term investments................................................... (204,000)
-------------
5,656,339
Net investment income..................................................................... 18,366,120
Accretion of discount on investments...................................................... (5,453,951)
Amortization of organization expenses..................................................... 16,719
Net change in receivables/payables related to operations.................................. (2,273,109)
-------------
Net cash provided by operating activities............................................. 16,312,118
-------------
CASH FLOWS USED BY FINANCING ACTIVITIES:
Common stock dividends paid............................................................... (16,393,077)
-------------
Net cash used by financing activities................................................. (16,393,077)
-------------
Net decrease in cash.......................................................................... (80,959)
Cash at beginning of period................................................................... 113,469
-------------
CASH AT END OF PERIOD......................................................................... $ 32,510
-------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
PAGE 10
<PAGE>
<PAGE>
GLOBAL PARTNERS INCOME FUND INC.
Notes to Financial Statements
(unaudited)
Note 1. Organization
Global Partners Income Fund Inc. (the 'Fund') was incorporated in Maryland on
September 3, 1993 and is registered as a non-diversified, closed-end, management
investment company under the Investment Company Act of 1940, as amended. The
Fund commenced operations on October 29, 1993. The Fund seeks to maintain a high
level of current income by investing primarily in a portfolio of high-yield U.S.
and non-U.S. corporate debt securities and high-yield foreign sovereign debt
securities. As a secondary objective, the Fund seeks capital appreciation.
Note 2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently
followed by the Fund 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.
SECURITIES VALUATION. In valuing the Fund'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. Securities may also be valued by independent pricing services
which use prices provided by market-makers or estimates of market values
obtained from yield data relating to instruments or securities with similar
characteristics. Short-term investments having a maturity of 60 days or less are
valued at amortized cost which approximates market value. Securities for which
reliable quotations are not readily available are valued at fair value as
determined in good faith by, or under procedures established by, the Board of
Directors.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Investment transactions are
recorded on the trade date. Interest income is accrued on a daily basis. Market
discount on securities purchased is accreted on an effective yield basis over
the life of the security. The Fund uses the specific identification method for
determining realized gain or loss on investments sold.
PAGE 11
<PAGE>
<PAGE>
GLOBAL PARTNERS INCOME FUND INC.
Notes to Financial Statements (continued)
(unaudited)
FEDERAL INCOME TAXES. The Fund 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 all of its
income and capital gains, if any, to its shareholders. Therefore, no federal
income tax or excise tax provision is required.
DIVIDENDS AND DISTRIBUTIONS. The Fund declares and pays dividends to
shareholders monthly from net investment income. Net realized gains, if any, in
excess of loss carryovers (See Note 4) 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. These differences are due primarily to
deferral of wash sale and post-October losses. Dividends which exceed net
investment income for financial reporting purposes but not for tax purposes are
reported as dividends in excess of net investment income.
UNAMORTIZED ORGANIZATION EXPENSES. Organization expenses amounting to $113,655
were incurred in connection with the organization of the Fund. These costs have
been deferred and are being amortized ratably over a five-year period from
commencement of operations.
REPURCHASE AGREEMENTS. When entering into repurchase agreements, it is the
Fund'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 at all times during the term of the repurchase agreement to ensure that it
always equals or exceeds the repurchase price. In the event of default of the
obligation to repurchase, the Fund 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.
CASH FLOW INFORMATION. The Fund invests in securities and distributes
dividends from net investment income and net realized gains from investment
transactions. These activities are reported in the Statement of Changes in Net
Assets. 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. For the nine
months ended May 31, 1996, the Fund paid interest expense of $5,632,368.
Note 3. Management and Advisory Fees and Other Transactions
The Fund entered into a management agreement with Advantage Advisers, Inc. (the
'Investment Manager'), a subsidiary of Oppenheimer & Co., Inc. ('Oppenheimer'),
pursuant to which the
PAGE 12
<PAGE>
<PAGE>
GLOBAL PARTNERS INCOME FUND INC.
Notes to Financial Statements (continued)
(unaudited)
Investment Manager, among other things, supervises the Fund's investment program
and monitors the performance of the Fund's service providers.
The Investment Manager and the Fund entered into an investment advisory and
administration agreement with Salomon Brothers Asset Management Inc (the
'Investment Adviser'), an affiliate of Salomon Brothers Inc, pursuant to which
the Investment Adviser provides investment advisory and administrative services
to the Fund. The Investment Adviser is responsible for the management of the
Fund's portfolio in accordance with the Fund's investment objectives and
policies and for making decisions to buy, sell, or hold particular securities
and is responsible for day-to-day administration of the Fund.
The Fund pays the Investment Manager a monthly fee at an annual rate of 1.10% of
the Fund's average weekly net assets for its services, out of which the
Investment Manager pays the Investment Adviser a monthly fee at an annual rate
of .65% of the Fund's average weekly net assets for its services.
At May 31, 1996, Oppenheimer and the Investment Adviser owned 3,567 and 4,587
shares of the Fund, respectively.
Certain officers and/or directors of the Fund are also officers and/or directors
of the Investment Manager or the Investment Adviser.
The Fund pays each Director not affiliated with the Investment Manager or the
Investment Adviser a fee of $5,000 per year, $700 for attendance at each board
meeting, $100 for participation in each telephonic meeting and reimbursement for
travel and out-of-pocket expenses for each board and committee meeting attended.
Note 4. Portfolio Activity
Purchases and sales of investment securities, other than short-term investments,
for the nine months ended May 31, 1996, aggregated $169,442,561 and
$164,303,374, respectively. The federal income tax cost basis of the Fund's
investments at May 31, 1996 was substantially the same as the cost basis for
financial reporting. Gross unrealized appreciation and depreciation amounted to
$11,761,166 and $9,141,956, respectively, resulting in net unrealized
appreciation for federal income tax purposes of $2,619,210.
Pursuant to federal income tax regulations, the Fund elected to treat capital
losses of $20,857,951, incurred in the period November 1, 1994 through August
31, 1995, as having occurred on September 1, 1995. In addition, the Fund has a
capital loss carryforward as of August 31, 1995 of $4,566,945 which expires in
2003. To the extent future capital gains are offset by such capital losses, the
Fund does not anticipate distributing such gains to shareholders.
PAGE 13
<PAGE>
<PAGE>
GLOBAL PARTNERS INCOME FUND INC.
Notes to Financial Statements (concluded)
(unaudited)
Note 5. Bank Loan
On April 1, 1996, the Fund borrowed $75,000,000 pursuant to a secured loan
agreement with Bankers Trust Company. The interest rate on the loan is equal to
six-month LIBOR plus 1.00% and the maturity date is October 1, 1996. The
collateral for the loan was valued at $158,116,311 on May 31, 1996 and is being
held in a segregated account by the Fund's custodian. In accordance with the
terms of the loan agreement, the Fund must maintain a level of collateral to
debt of at least 160%.
Note 6. Loan Participations
The Fund invests in fixed and floating rate loans arranged through private
negotiations between a foreign sovereign entity and one or more financial
institutions. The Fund's investment in any such loan may be in the form of a
participation in or an assignment of the loan. The market value of the Fund's
loan participations at May 31, 1996 was $27,789,191.
In connection with purchasing loan participations, the Fund generally will have
no right to enforce compliance by the borrower with the terms of the loan
agreement relating to the loan, nor any rights of set-off against the borrower,
and the Fund may not benefit directly from any collateral supporting the loan in
which it has purchased the participation. As a result, the Fund will assume the
credit risk of both the borrower and the lender that is selling the
participation. In the event of the insolvency of the lender selling the
participation, the Fund may be treated as a general creditor of the lender and
may not benefit from any set-off between the lender and the borrower.
Note 7. Credit Risk
The yields of emerging market debt obligations and high-yield corporate debt
obligations reflect, among other things, perceived credit risk. The Fund's
investment in securities rated below investment grade typically involve risks
not associated with higher rated securities including, among others, overall
greater risk of timely and ultimate payment of interest and principal, greater
market price volatility and less liquid secondary market trading. The
consequences of political, social, economic or diplomatic changes may have
disruptive effects on the market prices of sovereign bonds and loan
participations held by the Fund.
Note 8. Dividends Subsequent to May 31, 1996
On June 3 and July 1, 1996, the Board of Directors of the Fund declared a
dividend from net investment income, each in the amount of $.11875 per share,
payable on June 28 and July 31, 1996, to shareholders of record on June 18 and
July 16, 1996, respectively.
PAGE 14
<PAGE>
<PAGE>
GLOBAL PARTNERS INCOME FUND INC.
Financial Highlights
DATA FOR A SHARE OF COMMON STOCK OUTSTANDING THROUGHOUT EACH PERIOD:
<TABLE>
<CAPTION>
FOR THE
NINE MONTHS FOR THE FOR THE
ENDED YEAR ENDED PERIOD ENDED
MAY 31, 1996 AUGUST 31, AUGUST 31,
(UNAUDITED) 1995 1994(A)
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period........................... $ 11.11 $ 12.01 $ 14.02
------------ ---------- ------------
Net investment income.......................................... 1.27 1.54 0.97
Net realized gain (loss) and change in net unrealized
appreciation (depreciation) on investments................... 2.12 (1.02) (1.86)
------------ ---------- ------------
Total from investment operations............................... 3.39 0.52 (0.89)
------------ ---------- ------------
Less distributions
Dividends from net investment income......................... (1.13) (1.42) (0.98)
Dividends from short-term gains.............................. -- -- (0.07)
Dividends in excess of net investment income................. -- -- (0.02)
------------ ---------- ------------
Total distributions............................................ (1.13) (1.42) (1.07)
------------ ---------- ------------
Offering costs on issuance of common stock..................... -- -- (0.05)
------------ ---------- ------------
Net asset value, end of period................................. $ 13.37 $ 11.11 $ 12.01
------------ ---------- ------------
Per share market value, end of period.......................... $ 12.75 $ 11.125 $ 11.75
Total investment return based on market price per share(c)..... 25.72% 8.01% (9.02%)(b)
Ratios to average net assets:
Operating expenses......................................... 1.33%(d) 1.39% 1.38%(d)
Interest expense........................................... 2.99%(d) 3.46% 1.39%(d)
Total expenses............................................. 4.32%(d) 4.85% 2.77%(d)
Net investment income...................................... 13.73%(d) 14.10% 9.05%(d)
Portfolio turnover rate.................................... 66.38% 85.15% 11.71%
Net assets, end of period (000)............................ $193,936 $161,178 $174,252
Bank loans outstanding, end of period (000)................ $ 75,000 $ 75,000 $ 75,000
Weighted average bank loans (000).......................... $ 75,000 $ 75,000 $ 47,272
Weighted average interest rate on bank loans............... 7.10%(d) 7.34% 5.44%(d)
- ------------------------------------------------------------------------------------------------------------
</TABLE>
(a) For the period October 29, 1993 (commencement of investment operations)
through August 31, 1994.
(b) Return calculated based on beginning of period price of $14.02 (initial
offering price of $15.00 less sales load of $0.98) and end of period market
value of $11.75 per share. This calculation is not annualized.
(c) For purposes of this calculation, dividends on common shares are assumed to
be reinvested at prices obtained under the Fund's dividend reinvestment
plan and the broker commission paid to purchase or sell a share is
excluded. This calculation is not annualized.
(d) Annualized.
See accompanying notes to financial statements.
PAGE 15
<PAGE>
<PAGE>
GLOBAL PARTNERS INCOME FUND INC.
Selected Quarterly Financial Information (unaudited)
SUMMARY OF QUARTERLY RESULTS OF OPERATIONS:
<TABLE>
<CAPTION>
NET REALIZED GAIN
(LOSS) & CHANGE
IN NET UNREALIZED
NET INVESTMENT APPRECIATION
INCOME (DEPRECIATION)
---------------------- ---------------------
QUARTERS ENDED* TOTAL PER SHARE TOTAL PER SHARE
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
February 28, 1994............................................. $4,028 $.28 $ (3,184) $ (.21)
May 31, 1994.................................................. 4,433 .31 (18,748) (1.30)
August 31, 1994............................................... 5,070 .34 (6,155) (.42)
November 30, 1994............................................. 5,162 .36 (9,558) (.66)
February 28, 1995............................................. 5,685 .39 (19,835) (1.37)
May 31, 1995.................................................. 5,922 .41 13,324 .92
August 31, 1995............................................... 5,637 .38 1,262 .09
November 30, 1995............................................. 5,821 .40 7,198 .50
February 29, 1996............................................. 6,198 .43 13,594 .93
May 31, 1996.................................................. 6,347 .44 9,993 .69
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
* Totals expressed in thousands of dollars except per share amounts.
See accompanying notes to financial statements.
PAGE 16
<PAGE>
<PAGE>
GLOBAL PARTNERS INCOME FUND INC.
Form of Terms and Conditions of Amended and Restated Dividend Reinvestment
and Cash Purchase Plan
1. Each shareholder initially purchasing shares of common stock ('Shares') of
Global Partners Income Fund Inc. (the 'Fund') on or after September 6, 1996 will
be deemed to have elected to be a participant in the Amended and Restated
Dividend Reinvestment and Cash Purchase Plan (the 'Plan'), unless the
shareholder specifically elects in writing (addressed to the Agent at the
address below or to any nominee who holds Shares for the shareholder in its
name) to receive all income dividends and distributions of capital gains in
cash, paid by check, mailed directly to the record holder by or under the
direction of American Stock Transfer & Trust Company as the Fund's
dividend-paying agent (the 'Agent'). Shareholders who have previously elected
not to participate in the plan may elect to be a participant in the Plan by
completing and returning the attached Authorization Card to the Agent at the
address below or to any nominee who holds Shares for the shareholder in its
name. Notwithstanding the foregoing, a shareholder whose Shares are held in the
name of a broker or nominee who does not provide an automatic reinvestment
service may be required to take such Shares out of 'street name' and register
such Shares in the shareholder's name in order to participate, otherwise
dividends and distributions will be paid in cash to such shareholder by the
broker or nominee. Each participant in the Plan is referred to herein as a
'Participant.' The Agent will act as Agent for each Participant, and will open
accounts for each Participant under the Plan in the same name as their Shares
are registered.
2. Unless the Fund declares a dividend or distribution payable only in the form
of cash, the Agent will apply all dividends and distributions in the manner set
forth below.
3. If, on the determination date, the market price per Share equals or exceeds
the net asset value per Share on that date (such condition, a 'market premium'),
the Agent will receive the dividend or distribution in newly issued Shares of
the Fund on behalf of Participants. If, on the determination date, the net asset
value per Share exceeds the market price per Share (such condition, a 'market
discount'), the Agent will purchase Shares in the open-market. The determination
date will be the fourth New York Stock Exchange trading day (a New York Stock
Exchange trading day being referred to herein as a 'Trading Day') preceding the
payment date for the dividend or distribution. For purposes herein, 'market
price' will mean the average of the highest and lowest prices at which the
Shares sell on the New York Stock Exchange on the particular date, or if there
is no sale on that date, the average of the closing bid and asked quotations.
4. Purchases made by the Agent will be made as soon as practicable commencing on
the Trading Day following the determination date and terminating no later than
30 days after the dividend or distribution payment date except where temporary
curtailment or suspension of purchase is necessary to comply with applicable
provisions of federal securities law; provided, however, that
PAGE 17
<PAGE>
<PAGE>
GLOBAL PARTNERS INCOME FUND INC.
such purchases will, in any event, terminate on the Trading Day prior to the
'ex-dividend' date next succeeding the dividend or distribution payment date.
5. If (i) the Agent has not invested the full dividend amount in open-market
purchases by the date specified in paragraph 4 above as the date on which such
purchases must terminate or (ii) a market discount shifts to a market premium
during the purchase period, then the Agent will cease making open-market
purchases and will receive the uninvested portion of the dividend amount in
newly issued Shares (x) in the case of (i) above, at the close of business on
the date the Agent is required to terminate making open-market purchases as
specified in paragraph 4 above or (y) in the case of (ii) above, at the close of
business on the date such shift occurs; but in no event prior to the payment
date for the dividend or distribution.
6. In the event that all or part of a dividend or distribution amount is to be
paid in newly issued Shares, such Shares will be issued to Participants in
accordance with the following formula: (i) if, on the valuation date, the net
asset value per share is less than or equal to the market price per Share, then
the newly issued Shares will be valued at net asset value per Share on the
valuation date; provided, however, that if the net asset value is less than 95%
of the market price on the valuation date, then such Shares will be issued at
95% of the market price and (ii) if, on the valuation date, the net asset value
per share is greater than the market price per Share, then the newly issued
Shares will be issued at the market price on the valuation date. The valuation
date will be the dividend or distribution payment date, except that with respect
to Shares issued pursuant to paragraph 5 above, the valuation date will be the
date such Shares are issued. If a date that would otherwise be a valuation date
is not a Trading Day, the valuation date will be the next preceding Trading Day.
7. Participants have the option of making additional cash payments to the Agent,
monthly, in a minimum amount of $250, for investment in Shares. The Agent will
use all such funds received from Participants to purchase Shares in the open
market on or about the first business day of each month. To avoid unnecessary
cash accumulations, and also to allow ample time for receipt and processing by
the Agent, Participants should send in voluntary cash payments to be received by
the Agent approximately 10 days before an applicable purchase date specified
above. A Participant may withdraw a voluntary cash payment by written notice, if
the notice is received by the Agent not less than 48 hours before such payment
is to be invested.
8. Purchases by the Agent pursuant to paragraphs 4 and 7 above may be made on
any securities exchange on which the Shares of the Fund are traded, in the
over-the-counter market or in negotiated transactions, and may be on such terms
as to price, delivery and otherwise as the Agent shall determine. Funds held by
the Agent uninvested will not bear interest, and it is understood that, in any
event, the Agent shall have no liability in connection with any inability to
purchase Shares within the time periods herein provided, or with the timing of
any purchases effected. The Agent shall have no responsibility as to the value
of the Shares acquired for the Participant's account. The Agent may commingle
amounts of all Participants to be used for open-market purchases of Shares and
the price per Share allocable to each Participant in connection
PAGE 18
<PAGE>
<PAGE>
GLOBAL PARTNERS INCOME FUND INC.
with such purchases shall be the average price (including brokerage commissions)
of all Shares purchased by the Agent.
9. The Agent will maintain all Participants' accounts in the Plan and will
furnish written confirmations of all transactions in each account, including
information needed by Participants for personal and tax records. The Agent will
hold Shares acquired pursuant to the Plan in noncertificated form in the
Participant's name or that of its nominee, and each Participant's proxy will
include those Shares purchased pursuant to the Plan. The Agent will forward to
Participants any proxy solicitation material and will vote any Shares so held
for Participants only in accordance with the proxy returned by Participants to
the Fund. Upon written request, the Agent will deliver to Participants, without
charge, a certificate or certificates for the full Shares.
10. The Agent will confirm to Participants each acquisition made for their
respective accounts as soon as practicable but not later than 60 days after the
date thereof. Although Participants may from time to time have an undivided
fractional interest (computed to three decimal places) in a Share of the Fund,
no certificates for fractional shares will be issued. Dividends and
distributions on fractional shares will be credited to each Participant's
account. In the event of termination of a Participant's account under the Plan,
the Agent will adjust for any such undivided fractional interest in cash at the
market value of the Fund's Shares at the time of termination less the pro rata
expense of any sale required to make such an adjustment.
11. Any share dividends or split shares distributed by the Fund on Shares held
by the Agent for Participants will be credited to their respective accounts. In
the event that the Fund makes available to Participants rights to purchase
additional Shares or other securities, the Shares held for Participants under
the Plan will be added to other Shares held by the Participants in calculating
the number of rights to be issued to Participants.
12. The Agent's service fee for handling capital gains distributions or income
dividends will be paid by the Fund. Participants will be charged a pro rata
share of brokerage commissions on all open-market purchases.
13. Participants may terminate their accounts under the Plan by notifying the
Agent in writing. Such termination will be effective immediately if notice is
received by the Agent not less than 10 days prior to any dividend or
distribution record date; otherwise such termination will be effective on the
first Trading Day after the payment date for such dividend or distribution with
respect to any subsequent dividend or distribution. The Plan may be amended or
terminated by the Fund as applied to any voluntary cash payments made and any
income dividend or capital gains distribution paid subsequent to written notice
of the change or termination sent to Participants at least 30 days prior to the
record date for the income dividend or capital gains distribution. The Plan may
be amended or terminated by the Agent, with the Fund's prior written consent, on
at least 30 days' written notice to Participants. Notwithstanding the preceding
two sentences, the Agent or the Fund may amend or supplement the Plan at any
time or times when necessary or appropriate to comply with applicable law or
rules or policies of the Securities and Exchange Commission or any other
regulatory authority. Upon any termination, the Agent will cause a
PAGE 19
<PAGE>
<PAGE>
GLOBAL PARTNERS INCOME FUND INC.
certificate or certificates for the full Shares held by each Participant under
the Plan and cash adjustment for any fraction to be delivered to each
Participant without charge.
14. Any amendment or supplement shall be deemed to be accepted by each
Participant unless, prior to the effective date thereof, the Agent receives
written notice of the termination of the Participant's account under the Plan.
Any such amendment may include an appointment by the Agent in its place and
stead of a successor Agent under these terms and conditions, with full power and
authority to perform all or any of the acts to be performed by the Agent under
these terms and conditions. Upon any such appointment of an Agent for the
purpose of receiving dividends and distributions, the Fund will be authorized to
pay to such successor Agent, for each Participant's account, all dividends and
distributions payable on Shares of the Fund held in each Participant's name or
under the Plan for retention or application by such successor Agent as provided
in these terms and conditions.
15. In the case of Participants, such as banks, broker-dealers or other
nominees, which hold Shares for others who are beneficial owners ('Nominee
Holders'), the Agent will administer the Plan on the basis of the number of
Shares certified from time to time by each Nominee Holder as representing the
total amount registered in the Nominee Holder's name and held for the account of
beneficial owners who are to participate in the Plan.
16. The Agent shall at all times act in good faith and use its best efforts
within reasonable limits to insure the accuracy of all services performed under
this Agreement and to comply with applicable law, but assumes no responsibility
and shall not be liable for loss or damage due to errors unless such error is
caused by its negligence, bad faith, or willful misconduct or that of its
employees.
17. All correspondence concerning the Plan should be directed to the Agent at 40
Wall Street, 46th Floor, New York, New York 10005.
18. These terms and conditions shall be governed by the laws of the State of New
York.
Dated: October 21, 1993, as amended and
restated September 6, 1996
ACKNOWLEDGED AND ACCEPTED:
American Stock Transfer & Trust Company
By: /S/ GERALD RUDDY
_________________________________
Name: Gerald Ruddy
Title: Vice President
PAGE 20
<PAGE>
<PAGE>
GLOBAL PARTNERS INCOME FUND INC.
AUTHORIZATION CARD
THIS FORM IS FOR SHAREHOLDERS WHO HOLD SHARES IN THEIR OWN NAMES.
IF YOUR SHARES ARE HELD THROUGH A BROKERAGE FIRM, BANK OR OTHER NOMINEE,
YOU SHOULD CONTACT YOUR NOMINEE TO ARRANGE FOR IT TO PARTICIPATE IN THE PLAN
ON YOUR BEHALF.
AUTHORIZATION FOR REINVESTMENT OF DIVIDENDS
AND DISTRIBUTIONS
(Please read carefully before signing.)
I hereby authorize Global Partners Income Fund Inc. (the 'Fund') to pay to
American Stock Transfer & Trust Company for my account all income dividends and
capital gains distributions payable to me on shares of Common Stock of the Fund
now or hereafter registered in my name.
I hereby appoint American Stock Transfer & Trust Company as my Agent and
authorize the Agent to apply all such income dividends and capital gains
distributions in accordance with the Terms and Conditions of the Amended and
Restated Dividend Reinvestment and Cash Purchase Plan set forth accompanying
this Authorization Card.
The authorization and appointment is given with the understanding that I may
terminate it at any time by terminating my account under the Plan as provided in
such Amended and Restated Terms and Conditions.
Please sign exactly as your shares are registered.
All persons whose names appear on the share Participant
certificates must sign. Participant
Date
YOU SHOULD NOT RETURN THIS FORM IF YOU WISH TO RECEIVE YOUR DIVIDENDS
OR DISTRIBUTIONS IN CASH.
THIS IS NOT A PROXY.
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This authorization form, when signed, should be mailed to:
American Stock Transfer & Trust Company
40 Wall Street, 46th Floor
New York, New York 10005
Attn: Global Partners Income Fund Inc.
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GLOBAL PARTNERS INCOME FUND INC.
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Directors
CHARLES F. BARBER
Consultant; formerly Chairman,
ASARCO Incorporated
LESLIE H. GELB
President, The Council on Foreign Relations
MICHAEL S. HYLAND
Chairman of the Board;
Managing Director, Salomon Brothers Inc President, Salomon Brothers
Asset Management Inc
ALAN H. RAPPAPORT
President;
Executive Vice President,
Oppenheimer & Co., 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,
and formerly Dean, The Fletcher School of
Law & Diplomacy Tufts University
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Officers
MICHAEL S. HYLAND
Chairman of the Board
ALAN H. RAPPAPORT
President
PETER J. WILBY
Executive Vice President
LAWRENCE H. KAPLAN
Executive Vice President
and General Counsel
ALAN M. MANDEL
Treasurer
LAURIE A. PITTI
Assistant Treasurer
TANA E. TSELEPIS
Secretary
JENNIFER MUZZEY
Assistant Secretary
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Global Partners
Income Fund Inc.
7 World Trade Center
New York, New York 10048
Telephone 1-800-SALOMON
INVESTMENT MANAGER
Advantage Advisers, Inc.
Oppenheimer Tower
World Financial Center
New York, New York 10281
INVESTMENT ADVISER
Salomon Brothers Asset Management Inc
Seven World Trade Center
New York, New York 10048
CUSTODIAN
The Chase Manhattan Bank, N.A.
Four Metrotech Center
Brooklyn, New York 11245
DIVIDEND DISBURSING AND TRANSFER AGENT
American Stock Transfer & Trust Company
40 Wall Street
New York, New York 10005
LEGAL COUNSEL
Simpson Thacher & Bartlett
425 Lexington Avenue
New York, New York 10017
NEW YORK STOCK EXCHANGE SYMBOL
GDF
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GLOBAL PARTNERS
INCOME FUND INC.
INTERIM REPORT
MAY 31, 1996
[PHOTO OF GLOBE OF EARTH]
