UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-7994
Salomon Brothers Global Partners Income Fund Inc.
(Exact name of registrant as specified in charter)
125 Broad Street, New York, NY 10004
(Address of principal executive offices) (Zip code)
Robert I. Frenkel, Esq.
Smith Barney Fund Management LLC
300 First Stamford Place
Stamford, CT 06902
(Name and address of agent for service)
Registrant's telephone number, including area code: (800) 451-2010
Date of fiscal year end: August 31
Date of reporting period: February 29, 2004
ITEM 1. REPORT TO STOCKHOLDERS.
The Semi-Annual Report to Stockholders is filed herewith.
<Page>
American Stock Transfer & Trust Company
59 Maiden Lane
New York, New York 10038
GDFSEMI 2/04
04-6456
Salomon Brothers Global
Partners Income Fund Inc.
Semi-Annual Report
February 29, 2004
[GRAPHIC]
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SALOMON
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BROTHERS
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Asset Management
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SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
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Letter from the Chairman
DEAR SHAREHOLDER,
<Table>
During the six months ended February 29, 2004 the Salomon
Brothers Global Partners Income Fund Inc., returned 20.94%
based on its New York Stock Exchange ('NYSE') market price,
and 13.69% based on its net asset value ('NAV')(i) per share.
In comparison, the J.P. Morgan Emerging Markets Bond Index
Plus ('EMBI+')(ii) returned 9.80% and the Citigroup High Yield
Market Index ('High Yield Index')(iii) returned 10.85% over
the same period. The fund's Lipper emerging markets debt
closed-end funds category average returned 10.58% over the
same time frame.(iv) Please note that Lipper performance
returns are based on each fund's NAV.
During this six-month period, the fund distributed dividends
to shareholders totaling $0.71 per share. The performance
table shows the six-month total return based on its NAV and
market price as of February 29, 2004. PAST PERFORMANCE IS NO
GUARANTEE OF FUTURE RESULTS.
[Photo: R. JAY GERKEN]
R. JAY GERKEN, CFA
Chairman and Chief
Executive Officer
</Table>
FUND PERFORMANCE
AS OF FEBRUARY 29, 2004
6-Month
Price Per Share Total Return
--------------- ------------
$12.39 (NAV) 13.69%
--------------- ------------
$15.07 (NAV) 20.94%
--------------- ------------
ALL FIGURES REPRESENT PAST PERFORMANCE AND ARE NOT
A GUARANTEE OF FUTURE RESULTS.
Total returns are based on changes in NAV or market
price, respectively. Total returns assume the
reinvestment of all dividends and/or capital gains
distributions, if any, in additional shares.
EMERGING MARKETS DEBT OVERVIEW
Emerging markets debt returned 9.80% during the six months ended February 29,
2004 as measured by the EMBI+. The performance for the period was similar to the
return for the previous six-month period and was again driven by a combination
of fundamental and technical factors. The macro environment was supportive of
emerging market bond investments, as interest rates in the developed world
remained relatively stable at historically low levels and many equity markets
worldwide performed well.
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SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
Significant strength in commodity markets, including metals, agriculture and
oil, provided further positive support for many emerging market countries, as
commodities exports are an important source of growth for emerging economies.
Oil prices remained high and rose from $30 to over $36 per barrel over the six
months ending February 29, 2004. Revenues from oil production contributed to
positive performance in Ecuador, Russia and Venezuela.
HIGH YIELD RALLY RESUMES
The high-yield market regained some lost momentum in the autumn amid record
inflows into high-yield funds as the U.S. Treasury bond market stabilized. The
fact that quarterly earnings exceeded expectations, economic growth had improved
and default rates remained low relative to 2002 also contributed to the strong
demand. Additionally, increased capital market transactions fortified the
balance sheets of corporate bond issuers in the improved economic environment.
Annual growth in gross domestic product ('GDP')(v) over the third quarter of
2003 registered at 8.2%,(vi) although some of this growth was attributable
to one-time factors, such as the tax cuts and the end of major combat
operations in Iraq.
The U.S. economy grew at a moderate pace throughout the period, spurred by the
mid-year cut in interest rates, healthy demand from the consumer and increasing
capital/business investments from corporations. Preliminary estimates of
fourth-quarter GDP growth registered at 4.1%, which was below third-quarter
results but above those earlier in 2003. Investors' concerns about interest
rates remained contained due to lackluster employment results and comments from
the Fed, which stated late in January that it 'believes that it can be patient
in removing its policy accommodation.'(vii)
The airlines, automotive, cable, consumer products and utilities sectors were
the top-performing sectors within the high-yield debt universe over the six
months. The textiles sector was the only sector to decline during the period.
The high-yield market has remained healthy from a fundamental perspective, and
recent data suggest the U.S. economy is in a recovery mode, which has proved
favorable for the corporate earnings and credit environment and contributed to
the high-yield market's performance.
FACTORS IMPACTING FUND PERFORMANCE
In the emerging markets portion of the fund, its overweight positions in Ecuador
and Brazil were the primary contributors to the fund's outperformance in the
emerging markets. While we maintained our positive outlook on emerging markets
debt throughout the six-month period, the fund reduced the extent of its
overweight to the market as spreads(viii) continued to tighten over the course
of the period. Specifically, the fund reduced the magnitude of its overweight
in Ecuador and Brazil in December, primarily through security selection in
the two countries.
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SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
The U.S. high-yield component of the fund benefited over the period from its
overweighting in issues rated CCC and below and in the consumer products sector,
but the fund's underweighting in the airlines and utilities sectors negatively
affected fund performance. Additionally, its holdings of bonds rated BBB and the
fund's overweighting in the textiles sector negatively impacted performance. We
added to the fund's positions in the airlines and utilities sectors and reduced
the fund's exposure to BBB-rated issues and the textiles sector.
The fund's use of leverage also positively contributed to the fund's
performance. As of the period's close, the yields on emerging markets debt
securities and U.S. high-yield corporate bonds remained competitive to those of
many other classes of fixed-income securities.
INFORMATION ABOUT YOUR FUND
In recent months several issues in the mutual fund industry have come under the
scrutiny of federal and state regulators. The fund's Adviser and some of its
affiliates have received requests for information from various government
regulators regarding market timing, late trading, fees and other mutual fund
issues in connection with various investigations. The fund has been informed
that the Adviser and its affiliates are responding to those information
requests, but are not in a position to predict the outcome of these requests and
investigations.
LOOKING FOR ADDITIONAL INFORMATION?
The fund is traded under the symbol 'GDF' and its closing market price is
available in most newspapers under the NYSE listings. The daily NAV is available
online under symbol XGDFX. Barron's and The Wall Street Journal's Monday
editions carry closed-end fund tables that will provide additional information.
In addition, the fund issues a quarterly allocation press release that can be
found on most major financial web sites as well as www.sbam.com.
In a continuing effort to provide information concerning the fund, shareholders
may call 1-888-777-0102 or 1-800-SALOMON (toll free), Monday through Friday from
8:00 a.m. to 6:00 p.m. Eastern Time, for the fund's current NAV, market price
and other information.
Thank you for your investment in the Salomon Brothers Global Partners Income
Fund Inc. We appreciate that you have entrusted us with your money and value our
relationship with you.
Sincerely,
R. Jay Gerken
R. Jay Gerken, CFA
Chairman and Chief Executive Officer
March 18, 2004
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SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
The information provided is not intended to be a forecast of future events, a
guarantee of future results or investment advice. Views expressed may differ
from those of the firm as a whole.
Portfolio holdings and breakdowns are as of February 29, 2004, and are subject
to change. Please refer to pages 5 through 17 for a list and percentage
breakdown of the fund's holdings.
All index performance reflects no deduction for fees, expenses or taxes. Please
note that an investor cannot invest directly in an index.
RISKS: The fund may invest in high-yield and foreign securities, including
emerging markets, which involve risks beyond those inherent in solely
higher-rated and domestic investments. High-yield bonds involve greater credit
and liquidity risks than investment grade bonds. Investing in foreign securities
is subject to certain risks not associated with domestic investing, such as
currency fluctuations, and changes in political and economic conditions. These
risks are magnified in emerging or developing markets.
(i) NAV is a price that reflects the value of the fund's underlying portfolio
plus other assets, less the fund's liabilities. However, the price at
which an investor may buy or sell shares of the fund is at the fund's
market price as determined by supply of and demand for the fund's common
shares, which may be more or less than the fund's NAV.
(ii) The J.P. Morgan Emerging Markets Bond Index Plus is a total return index
that tracks the traded market for U.S. dollar-denominated Brady and
other similar sovereign restructured bonds traded in the emerging
markets.
(iii) The Citigroup High Yield Market Index is a broad-based unmanaged index
of high-yield securities.
(iv) Lipper, Inc. is a major independent mutual-fund tracking organization.
Returns are based on the six-month period ended February 29, 2004
calculated among the 12 funds in the fund's Lipper category including
the reinvestment of dividends and capital gains, if any.
(v) Gross domestic product is a market value of goods and services produced
by labor and property in a given country.
(vi) Source: U.S. Department of Commerce Bureau of Economic Analysis
(February 27, 2004)
(vii) Source: Federal Reserve (January 28, 2004)
(viii) Credit spread is the difference between the yield of a particular
corporate security and a benchmark security that has the same maturity
as that particular corporate security.
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SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
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Schedule of Investments (unaudited)
February 29, 2004
<Table>
<Caption>
FACE
AMOUNT SECURITY(a) VALUE
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Corporate Notes and Bonds -- 47.9%
Basic Industries -- 7.5%
$ 450,000 Abitibi-Consolidated Inc., Debentures, 8.850% due 8/1/30.... $ 477,486
550,000 Acetex Corp., Sr. Notes, 10.875% due 8/1/09................. 609,125
375,000 Airgas, Inc., 9.125% due 10/1/11............................ 427,500
675,000 AK Steel Corp., 7.875% due 2/15/09.......................... 600,750
575,000 Anchor Glass Container Corp., Secured Notes, 11.000% due
2/15/13.................................................... 669,875
700,000 Applied Extrusion Technologies, Inc., Series B, 10.750% due
7/1/11..................................................... 598,500
525,000 Berry Plastics Corp., 10.750% due 7/15/12................... 611,625
575,000 Bowater Inc., Debentures, 9.500% due 10/15/12............... 652,216
Buckeye Technologies Inc., Sr. Sub. Notes:
450,000 9.250% due 9/15/08......................................... 456,750
350,000 8.000% due 10/15/10........................................ 349,125
500,000 Equistar Chemicals L.P., Sr. Notes, 10.625% due 5/1/11...... 545,000
500,000 Huntsman Advanced Materials LLC, Secured Notes, 11.000% due
7/15/10 (b)................................................ 565,000
1,125,000 Huntsman International LLC, 10.125% due 7/1/09.............. 1,153,125
600,000 IMCO Recycling Inc., Secured Notes, 10.375% due
10/15/10 (b)............................................... 630,000
800,000 ISP Chemco Inc., Series B, 10.250% due 7/1/11............... 908,000
575,000 Koppers Inc., 9.875% due 10/15/13 (b)....................... 641,125
Lyondell Chemical Co.:
250,000 9.500% due 12/15/08........................................ 259,375
Secured Notes:
325,000 11.125% due 7/15/12....................................... 355,875
50,000 Series B, 9.875% due 5/1/07............................... 52,125
500,000 Methanex Corp., Sr. Notes, 8.750% due 8/15/12............... 570,000
Millennium America Inc.:
415,000 9.250% due 6/15/08......................................... 452,350
375,000 Sr. Notes, 9.250% due 6/15/08 (b).......................... 408,750
625,000 Nalco Co., Sr. Sub. Notes, 8.875% due 11/15/13 (b).......... 659,375
500,000 Noveon, Inc., Series B, 11.000% due 2/28/11................. 575,000
125,000 OM Group, Inc., 9.250% due 12/15/11......................... 132,188
875,000 Plastipak Holdings, Inc., 10.750% due 9/1/11................ 975,625
300,000 Pliant Corp., Secured Notes, 11.125% due 9/1/09............. 314,250
650,000 Portola Packaging, Inc., Sr. Notes, 8.250% due
2/1/12 (b)................................................. 672,750
500,000 Radnor Holdings Corp., Sr. Notes, 11.000% due 3/15/10....... 455,000
550,000 Resolution Performance Products Inc., Sr. Sub. Notes,
13.500% due 11/15/10....................................... 448,250
900,000 Rhodia S.A., Sr. Sub. Notes, 8.875% due 6/1/11 (b).......... 810,000
600,000 Smurfit Capital Funding PLC, Debentures, 7.500% due
11/20/25................................................... 612,000
Tekni-Plex, Inc.:
500,000 Secured Notes, 8.750% due 11/15/13 (b)..................... 523,750
100,000 Series B, 12.750% due 6/15/10.............................. 108,500
</Table>
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SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 5
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SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
- --------------------------------------
Schedule of Investments (unaudited) (continued)
February 29, 2004
<Table>
<Caption>
FACE
AMOUNT SECURITY(a) VALUE
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Basic Industries -- 7.5% (continued)
Tembec Industries, Inc.:
$ 625,000 8.625% due 6/30/09......................................... $ 618,750
400,000 8.500% due 2/1/11.......................................... 394,000
575,000 Westlake Chemical Corp., 8.750% due 7/15/11................. 629,625
------------
19,922,740
------------
Consumer Cyclicals -- 4.8%
650,000 AMF Bowling Worldwide, Inc., Sr. Sub. Notes, 10.000% due
3/1/10 (b)................................................. 672,750
175,000 CKE Restaurants, Inc., 9.125% due 5/1/09.................... 182,875
Cole National Group, Inc., Sr. Sub. Notes:
250,000 8.625% due 8/15/07......................................... 258,750
450,000 8.875% due 5/15/12......................................... 524,250
650,000 Equinox Holdings Inc., Sr. Notes, 9.000% due 12/15/09 (b)... 682,500
275,000 Eye Care Centers of America, Inc., 9.125% due 5/1/08........ 276,375
Felcor Lodging L.P.:
525,000 10.000% due 9/15/08........................................ 559,125
290,000 9.000% due 6/1/11.......................................... 307,400
875,000 Finlay Fine Jewelry Corp., Sr. Notes, 8.375% due 5/1/08..... 905,625
Host Marriott L.P.:
125,000 Series I, 9.500% due 1/15/07............................... 139,062
525,000 Sr. Notes, 7.125% due 11/1/13.............................. 544,688
Interface, Inc., Sr. Sub. Notes:
675,000 9.500% due 2/1/14 (b)...................................... 671,625
575,000 Series B, 9.500% due 11/15/05.............................. 577,875
500,000 John Q. Hammons Hotels L.P., 1st Mortgage, Series B, 8.875%
due 5/15/12................................................ 548,750
600,000 Leslie's Poolmart, Sr. Notes, Series B, 10.375% due
7/15/08.................................................... 597,750
Levi Strauss & Co., Sr. Notes:
565,000 11.625% due 1/15/08........................................ 392,675
300,000 12.250% due 12/15/12....................................... 208,500
MeriStar Hospitality Corp.:
150,000 9.000% due 1/15/08......................................... 155,625
475,000 9.125% due 1/15/11......................................... 494,000
400,000 Oxford Industries, Inc., Sr. Notes, 8.875% due 6/1/11 (b)... 428,000
375,000 PETCO Animal Supplies, Inc., Sr. Sub. Notes, 10.750% due
11/1/11.................................................... 440,625
50,000 Phillips-Van Heusen Corp., Sr. Notes, 8.125% due 5/1/13..... 53,000
550,000 Prime Hospitality Corp., Sr. Sub. Notes, Series B, 8.375%
due 5/1/12................................................. 574,750
Saks Inc.:
250,000 7.500% due 12/1/10......................................... 274,375
225,000 9.875% due 10/1/11......................................... 271,125
725,000 Sbarro, Inc., 11.000% due 9/15/09........................... 601,750
700,000 Starwood Hotels & Resorts Worldwide, Inc., 7.875% due
5/1/12..................................................... 784,000
600,000 Tommy Hilfiger USA, Inc., 6.850% due 6/1/08................. 624,000
------------
12,751,825
------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 6
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SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
- --------------------------------------
Schedule of Investments (unaudited) (continued)
February 29, 2004
<Table>
<Caption>
FACE
AMOUNT SECURITY(a) VALUE
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Consumer Non-Cyclicals -- 9.2%
$ 625,000 aaiPharma Inc., 11.000% due 4/1/10.......................... $ 681,250
Ahold Finance U.S.A., Inc.:
100,000 6.875% due 5/1/29.......................................... 92,250
425,000 Notes, 8.250% due 7/15/10.................................. 467,500
625,000 AKI, Inc., Sr. Notes, 10.500% due 7/1/08.................... 653,125
600,000 AmeriPath, Inc., 10.500% due 4/1/13......................... 627,000
525,000 Ameristar Casinos, Inc., 10.750% due 2/15/09................ 606,375
502,000 Applica Inc., Sr. Sub. Notes, 10.000% due 7/31/08........... 519,570
325,000 Athena Neurosciences Finance LLC, 7.250% due 2/21/08........ 320,125
Caesars Entertainment, Inc., Sr. Sub. Notes:
625,000 7.875% due 12/15/05........................................ 667,188
425,000 8.875% due 9/15/08......................................... 482,375
750,000 Coast Hotels & Casinos, Inc., 9.500% due 4/1/09............. 793,125
500,000 Constellation Brands, Inc., Series B, 8.125% due 1/15/12.... 552,500
430,684 Dade Behring Holdings Inc., 11.910% due 10/3/10............. 499,593
500,000 Del Monte Corp., Sr. Sub. Notes, 8.625% due 12/15/12........ 555,000
Doane Pet Care Co.:
100,000 10.750% due 3/1/10......................................... 104,250
600,000 Sr. Sub. Notes, 9.750% due 5/15/07......................... 549,000
450,000 Extendicare Health Services, Inc., 9.500% due 7/1/10........ 501,750
175,000 Fleming Cos., Inc., 10.125% due 4/1/08 (c).................. 29,750
675,000 FTD, Inc., 7.750% due 2/15/14 (b)........................... 680,062
125,000 Holmes Group Inc., Series B, 9.875% due 11/15/07............ 128,750
750,000 Home Interiors & Gifts, Inc., 10.125% due 6/1/08............ 763,125
875,000 IASIS Healthcare Corp., 13.000% due 10/15/09................ 984,375
625,000 Icon Health & Fitness, Inc., 11.250% due 4/1/12............. 721,875
600,000 Inn of the Mountain Gods Resort & Casino, Sr. Notes, 12.000%
due 11/15/10 (b)........................................... 655,500
500,000 InSight Health Services Corp., Series B, 9.875% due
11/1/11.................................................... 513,750
500,000 Jafra Cosmetics International Inc., 10.750% due 5/15/11..... 557,500
500,000 Kerzner International Ltd., 8.875% due 8/15/11.............. 555,000
750,000 MGM MIRAGE, 9.750% due 6/1/07............................... 866,250
725,000 North Atlantic Trading Co., Inc., Series B, 11.000% due
6/15/04.................................................... 732,250
675,000 Pinnacle Entertainment, Inc., Sr. Sub. Notes, 8.250% due
3/15/12 (b)................................................ 670,154
650,000 Playtex Products, Inc., 9.375% due 6/1/11................... 606,125
Rite Aid Corp.:
75,000 11.250% due 7/1/08......................................... 82,688
975,000 Sr. Notes, 7.625% due 4/15/05.............................. 994,500
Sealy Mattress Co., Series B:
250,000 10.875% due 12/15/07....................................... 260,625
800,000 Sr. Sub. Notes, 9.875% due 12/15/07........................ 831,000
350,000 Sola International Inc., Notes, 6.875% due 3/15/08.......... 355,688
Station Casinos, Inc., Sr. Sub. Notes:
450,000 9.875% due 7/1/10.......................................... 514,125
150,000 6.875% due 3/1/16 (b)...................................... 152,250
</Table>
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SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 7
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SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
- --------------------------------------
Schedule of Investments (unaudited) (continued)
February 29, 2004
<Table>
<Caption>
FACE
AMOUNT SECURITY(a) VALUE
- ----------------------------------------------------------------------------------------------
Consumer Non-Cyclicals -- 9.2% (continued)
$ 374,000 Tempur-Pedic Inc. & Tempur Production U.S.A. Inc., Sr. Sub.
Notes, 10.250% due 8/15/10 (b)............................. $ 421,685
Tenet Healthcare Corp.:
825,000 Notes, 7.375% due 2/1/13................................... 767,250
Sr. Notes:
250,000 6.500% due 6/1/12......................................... 221,875
425,000 6.875% due 11/15/31....................................... 352,750
875,000 United Industries Corp., Series D, 9.875% due 4/1/09........ 916,563
575,000 Vanguard Health Systems, Inc., 9.750% due 8/1/11............ 631,063
550,000 Venetian Casino Resort, LLC, 11.000% due 6/15/10............ 635,250
------------
24,273,754
------------
Energy -- 4.0%
Dynegy Holdings Inc.:
Debentures:
800,000 7.125% due 5/15/18........................................ 658,000
750,000 7.625% due 10/15/26....................................... 620,625
650,000 Secured Notes, 9.875% due 7/15/10 (b)....................... 718,250
El Paso Corp.:
825,000 Notes, 7.875% due 6/15/12.................................. 750,750
Sr. Notes:
675,000 7.800% due 8/1/31......................................... 546,750
875,000 7.750% due 1/15/32........................................ 706,562
255,000 Grey Wolf, Inc., 8.875% due 7/1/07.......................... 263,287
625,000 Magnum Hunter Resources, Inc., 9.600% due 3/15/12........... 700,000
250,000 Nuevo Energy Co., Sr. Sub. Notes, Series B, 9.375% due
10/1/10.................................................... 278,125
323,000 Pride International, Inc., Sr. Notes, 9.375% due 5/1/07..... 332,286
450,000 Swift Energy Co., Sr. Sub. Notes, 10.250% due 8/1/09........ 484,875
1,125,000 United Refining Co., Series B, 10.750% due 6/15/07.......... 1,051,875
810,000 Western Gas Resources, Inc., 10.000% due 6/15/09............ 869,738
500,000 Westport Resources Corp., 8.250% due 11/1/11................ 555,000
The Williams Cos., Inc.:
Notes:
300,000 7.625% due 7/15/19........................................ 306,000
1,250,000 7.875% due 9/1/21......................................... 1,281,250
200,000 8.750% due 3/15/32........................................ 216,000
125,000 Sr. Notes, 8.625% due 6/1/10............................... 137,188
------------
10,476,561
------------
Finance Services -- 0.0%
987,700 Airplanes Pass-Through Trust, Series D, 10.875% due 3/15/12
(c)(d)..................................................... 0
------------
</Table>
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SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 8
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SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
- --------------------------------------
Schedule of Investments (unaudited) (continued)
February 29, 2004
<Table>
<Caption>
FACE
AMOUNT SECURITY(a) VALUE
- ----------------------------------------------------------------------------------------------
Housing Related -- 0.9%
$ 1,250,000 Associated Materials Inc., Sr. Discount Notes, (zero coupon
until 3/1/09,
11.250% thereafter), due 3/1/14 (b)........................ $ 723,750
875,000 Nortek Holdings, Inc., Sr. Notes, Series B, 8.875% due
8/1/08..................................................... 918,750
650,000 Ply Gem Industries, Inc., Sr. Sub. Notes, 9.000% due 2/15/12
(b)........................................................ 672,750
------------
2,315,250
------------
Manufacturing -- 3.6%
500,000 Alliant Techsystems Inc., 8.500% due 5/15/11................ 557,500
725,000 Blount Inc., 13.000% due 8/1/09............................. 786,625
300,000 Case New Holland Inc., Sr. Notes, 9.250% due 8/1/11 (b)..... 339,000
575,000 Eagle-Picher Industries, Inc., Sr. Notes, 9.750% due
9/1/13..................................................... 635,375
425,000 Fedders North America, Inc., 9.375% due 8/15/07............. 440,937
425,000 Flowserve Corp., 12.250% due 8/15/10........................ 493,000
175,000 Ford Motor Co., Notes, 7.450% due 7/16/31................... 176,306
275,000 General Binding Corp., 9.375% due 6/1/08.................... 278,781
275,000 General Motors Acceptance Corp., Notes, 6.875% due
8/28/12.................................................... 295,821
General Motors Corp.:
100,000 Debentures, 8.375% due 7/15/33............................. 113,653
475,000 Sr. Notes, 7.125% due 7/15/13.............................. 519,409
325,000 Invensys PLC, Sr. Notes, 9.875% due 3/15/11 (b)............. 318,978
325,000 Keystone Automotive Operations Inc., Sr. Sub. Notes, 9.750%
due 11/1/13 (b)............................................ 356,687
750,000 L-3 Communications Corp., 7.625% due 6/15/12................ 836,250
500,000 Moll Industries, Inc., Sr. Sub. Notes, 10.500% due 7/1/08
(c)(d)..................................................... 7,500
300,000 NMHG Holding Co., 10.000% due 5/15/09....................... 331,500
300,000 Park-Ohio Industries, Inc., Sr. Sub. Notes, 9.250% due
12/1/07.................................................... 306,000
675,000 Sensus Metering Systems Inc., Sr. Sub. Notes, 8.625% due
12/15/13 (b)............................................... 689,344
450,000 Sequa Corp., Sr. Notes, 9.000% due 8/1/09................... 502,875
Tenneco Automotive Inc., Series B:
225,000 11.625% due 10/15/09....................................... 244,125
300,000 Secured Notes, 10.250% due 7/15/13......................... 351,000
700,000 Terex Corp., Series B, 10.375% due 4/1/11................... 794,500
TRW Automotive Inc.:
150,000 Sr. Notes, 9.375% due 2/15/13.............................. 171,750
75,000 Sr. Sub. Notes, 11.000% due 2/15/13........................ 88,500
------------
9,635,416
------------
Media and Cable -- 6.1%
675,000 Atlantic Broadband Finance LLC, Sr. Sub. Notes, 9.375% due
1/15/14 (b)................................................ 680,062
Charter Communications Holdings, LLC:
Sr. Discount Notes:
600,000 Zero coupon until 1/15/05, (11.750% thereafter), due
1/15/10................................................. 492,000
1,050,000 Zero coupon until 1/15/06, (13.500% thereafter), due
1/15/11................................................. 761,250
1,255,000 Zero coupon until 4/1/04, (9.920% thereafter), due 4/1/11. 1,044,787
1,075,000 Zero coupon until 5/15/06, (11.750% thereafter), due
5/15/11................................................. 709,500
</Table>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 9
<Page>
SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
- --------------------------------------
Schedule of Investments (unaudited) (continued)
February 29, 2004
<Table>
<Caption>
FACE
AMOUNT SECURITY(a) VALUE
- ----------------------------------------------------------------------------------------------
Media and Cable -- 6.1% (continued)
Charter Communications Holdings, LLC (continued):
Sr. Notes:
$ 250,000 8.250% due 4/1/07......................................... $ 232,187
275,000 10.750% due 10/1/09....................................... 243,375
250,000 10.250% due 1/15/10....................................... 218,125
CSC Holdings Inc., Sr. Sub. Debentures:
75,000 9.875% due 2/15/13......................................... 78,281
1,100,000 10.500% due 5/15/16........................................ 1,267,750
225,000 Dex Media East LLC, 9.875% due 11/15/09..................... 255,375
975,000 Dex Media Inc., Discount Notes, (zero coupon until 11/15/08,
9.000% thereafter), due 11/15/13 (b)....................... 655,687
325,000 Dex Media West LLC, Sr. Sub. Notes, 9.875% due 8/15/13 (b).. 366,437
500,000 DirecTV Holdings LLC, Sr. Notes, 8.375% due 3/15/13......... 571,250
EchoStar DBS Corp., Sr. Notes:
300,000 10.375% due 10/1/07........................................ 329,625
504,000 9.125% due 1/15/09......................................... 573,300
300,000 Granite Broadcasting Corp., Secured Notes, 9.750% due
12/1/10 (b)................................................ 296,250
325,000 Houghton Mifflin Co., Sr. Discount Notes, (zero coupon until
10/15/08, 11.500% thereafter), due 10/15/13 (b)............ 198,250
600,000 Insight Midwest, L.P., Sr. Notes, 10.500% due 11/1/10....... 651,000
300,000 Interep National Radio Sales, Inc., Series B, 10.000% due
7/1/08..................................................... 268,500
50,000 Mediacom Broadband LLC, 11.000% due 7/15/13................. 54,500
700,000 Mediacom LLC, Sr. Notes, 9.500% due 1/15/13................. 714,000
550,000 NextMedia Operating, Inc., 10.750% due 7/1/11............... 620,125
675,000 Pegasus Satellite Communications, Inc., Sr. Discount Notes,
(zero coupon until 3/1/04, 13.500% thereafter), due
3/1/07..................................................... 560,250
R.H. Donnelly Finance Corp. I:
225,000 10.875% due 12/15/12....................................... 268,875
100,000 10.875% due 12/15/12 (b)................................... 119,500
375,000 Radio One, Inc., Series B, 8.875% due 7/1/11................ 416,250
600,000 Spanish Broadcasting System, Inc., 9.625% due 11/1/09....... 637,500
Telewest Communications PLC:
390,000 Sr. Discount Notes, (zero coupon until 2/1/05, 11.375%
thereafter), due 2/1/10................................... 194,025
1,065,000 Sr. Notes, 11.250% due 11/1/08 (c)......................... 708,225
850,000 Time Warner Inc., 7.625% due 4/15/31........................ 992,207
250,000 Vivendi Universal SA, Sr. Notes, 9.250% due 4/15/10......... 295,625
585,000 Yell Finance BV, Sr. Notes, 10.750% due 8/1/11.............. 687,375
------------
16,161,448
------------
Services and Other -- 1.2%
Allied Waste North America, Inc., Series B:
43,000 7.875% due 1/1/09.......................................... 44,905
325,000 10.000% due 8/1/09......................................... 350,594
225,000 9.250% due 9/1/12.......................................... 254,813
</Table>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 10
<Page>
SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
- --------------------------------------
Schedule of Investments (unaudited) (continued)
February 29, 2004
<Table>
<Caption>
FACE
AMOUNT SECURITY(a) VALUE
- ----------------------------------------------------------------------------------------------
Services and Other -- 1.2% (continued)
$ 350,000 Brand Services, Inc., 12.000% due 10/15/12.................. $ 411,250
300,000 COMFORCE Operating Inc., Sr. Notes, Series B, 12.000% due
12/1/07.................................................... 246,000
1,250,000 The Holt Group, Inc., 9.750% due 1/15/06 (c)................ 18,750
Mail-Well I Corp.:
555,000 Series B, 8.750% due 12/15/08.............................. 582,056
600,000 Sr. Sub. Notes, 7.875% due 12/1/13 (b)..................... 582,000
225,000 Muzak LLC, Sr. Notes, 10.000% due 2/15/09................... 237,938
2,000,000 Safety-Kleen Services, Inc., 9.250% due 6/1/08 (c).......... 5,000
450,000 SITEL Corp., 9.250% due 3/15/06............................. 444,938
------------
3,178,244
------------
Technology -- 0.9%
1,450,000 Lucent Technologies Inc., Debentures, 6.450% due 3/15/29.... 1,192,625
625,000 Unisys Corp., Sr. Notes, 8.125% due 6/1/06.................. 681,250
475,000 Xerox Capital (Europe) PLC, 5.875% due 5/15/04.............. 478,563
------------
2,352,438
------------
Telecommunications -- 6.0%
Alamosa (Delaware) Inc.:
308,750 11.000% due 7/31/10........................................ 331,906
339,555 Zero coupon until 7/31/05, (12.000% thereafter), due
7/31/09.................................................... 310,693
525,000 American Cellular Escrow Corp., Sr. Notes, Series B, 10.000%
due 8/1/11................................................. 530,250
American Tower Corp., Sr. Notes:
850,000 9.375% due 2/1/09.......................................... 905,250
200,000 7.500% due 5/1/12 (b)...................................... 193,000
365,000 American Tower Escrow Corp., Discount Notes, zero coupon due
8/1/08..................................................... 257,325
600,000 AT&T Corp., Sr. Notes, 8.750% due 11/15/31.................. 709,537
AT&T Wireless Services Inc.:
775,000 Notes, 8.125% due 5/1/12................................... 932,475
Sr. Notes:
475,000 7.875% due 3/1/11......................................... 559,864
375,000 8.750% due 3/1/31......................................... 481,948
Crown Castle International Corp., Sr. Notes:
1,000,000 10.750% due 8/1/11......................................... 1,125,000
225,000 7.500% due 12/1/13 (b)..................................... 226,687
500,000 Dobson Communications Corp., Sr. Notes, 10.875% due
7/1/10..................................................... 480,000
350,000 Inmarsat Finance PLC, 7.625% due 6/30/12 (b)................ 369,250
Nextel Communications, Inc., Sr. Notes:
400,000 9.375% due 11/15/09........................................ 436,500
1,250,000 7.375% due 8/1/15.......................................... 1,353,125
1,025,000 Qwest Corp., Notes, 9.125% due 3/15/12 (b).................. 1,173,625
Qwest Services Corp., Notes:
1,000,000 13.500% due 12/15/10 (b)................................... 1,177,500
231,000 14.000% due 12/15/14 (b)................................... 280,665
</Table>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 11
<Page>
SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
- --------------------------------------
Schedule of Investments (unaudited) (continued)
February 29, 2004
<Table>
<Caption>
FACE
AMOUNT SECURITY(a) VALUE
- ----------------------------------------------------------------------------------------------
Telecommunications -- 6.0% (continued)
SBA Communications Corp.:
Sr. Discount Notes:
$ 108,000 12.000% due 3/1/08........................................ $ 116,640
150,000 Zero coupon until 12/15/07, (9.750% thereafter), due
12/15/11 (b)............................................. 104,250
575,000 Sr. Notes, 10.250% due 2/1/09.............................. 579,312
275,000 SpectraSite, Inc., Sr. Notes, 8.250% due 5/15/10............ 290,813
Sprint Capital Corp.:
875,000 6.875% due 11/15/28........................................ 901,192
775,000 8.750% due 3/15/32......................................... 964,722
UbiquiTel Operating Co.:
150,000 Sr. Notes, 9.875% due 3/1/11 (b)........................... 147,750
575,000 Zero coupon until 4/15/05, (14.000% thereafter), due
4/15/10................................................... 531,875
500,000 Western Wireless Corp., Sr. Notes, 9.250% due 7/15/13....... 527,500
------------
15,998,654
------------
Transportation -- 0.4%
Continental Airlines, Inc., Pass-Through Certificates:
394,014 Series 00-2, 8.312% due 4/2/11............................. 364,650
419,583 Series 981C, 6.541% due 9/15/08............................ 400,412
225,000 General Maritime Corp., Sr. Notes, 10.000% due 3/15/13...... 254,250
------------
1,019,312
------------
Utilities -- 3.3%
The AES Corp.:
Sr. Notes:
400,000 8.750% due 6/15/08........................................ 422,000
300,000 9.375% due 9/15/10........................................ 329,250
Sr. Sub. Notes:
50,000 8.375% due 8/15/07........................................ 51,000
525,000 8.500% due 11/1/07........................................ 539,437
550,000 Allegheny Energy Supply Statutory Trust 2001, Secured Notes,
10.250% due 11/15/07 (b)................................... 594,000
1,825,000 Calpine Canada Energy Finance ULC, 8.500% due 5/1/08........ 1,418,937
Calpine Corp.:
350,000 Secured Notes, 8.500% due 7/15/10 (b)...................... 323,750
250,000 Sr. Notes, 8.625% due 8/15/10.............................. 191,875
Edison Mission Energy, Sr. Notes:
50,000 10.000% due 8/15/08........................................ 52,750
1,100,000 7.730% due 6/15/09......................................... 1,061,500
300,000 9.875% due 4/15/11......................................... 316,500
950,000 Mirant Americas Generation, LLC, Sr. Notes, 9.125% due
5/1/31 (c)................................................. 764,750
1,200,000 NRG Energy, Inc., Secured Notes, 8.000% due 12/15/13 (b).... 1,245,000
</Table>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 12
<Page>
SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
- --------------------------------------
Schedule of Investments (unaudited) (continued)
February 29, 2004
<Table>
<Caption>
FACE
AMOUNT SECURITY(a) VALUE
- ----------------------------------------------------------------------------------------------
Utilities -- 3.3% (continued)
Reliant Resources, Inc., Secured Notes:
$ 725,000 9.250% due 7/15/10......................................... $ 783,000
550,000 9.500% due 7/15/13......................................... 599,500
------------
8,693,249
------------
Total Corporate Notes and Bonds (Cost -- $122,830,251)..... 126,778,891
------------
Convertible Notes and Bonds -- 0.5%
Consumer Non-Cyclicals -- 0.3%
650,000 Elan Pharm Inv., Secured Notes, 7.720% due 3/15/05.......... 656,500
------------
Technology -- 0.1%
475,000 Sanmina-SCI Corp., Sub. Debentures, zero coupon due
9/12/20.................................................... 247,000
------------
Telecommunications -- 0.1%
325,000 American Tower Corp., Notes, 5.000% due 2/15/10............. 322,156
------------
Total Convertible Notes and Bonds (Cost -- $1,014,180)..... 1,225,656
------------
Sovereign Bonds -- 40.7%
Argentina -- 0.2%
1,125,000 Republic of Argentina, DISC, Series L, 2.0625% due
3/31/23 (c)................................................. 556,875
------------
Brazil -- 10.1%
Federal Republic of Brazil:
600,000 10.125% due 5/15/27........................................ 595,500
4,400,000 12.250% due 3/6/30......................................... 5,170,000
1,205,000 11.000% due 8/17/40........................................ 1,265,852
13,286,914 C Bond, 8.000% due 4/15/14................................. 12,726,339
4,275,000 DCB, Series L, 2.0625% due 4/15/12 (e)..................... 3,681,844
3,532,692 FLIRB, Series L, 2.000% due 4/15/09 (e).................... 3,258,909
------------
26,698,444
------------
Bulgaria -- 0.5%
1,150,000 Republic of Bulgaria, 8.250% due 1/15/15.................... 1,384,313
------------
Colombia -- 2.5%
Republic of Colombia:
1,637,000 8.625% due 4/1/08.......................................... 1,819,526
2,000,000 10.000% due 1/23/12........................................ 2,239,000
2,275,000 10.750% due 1/15/13........................................ 2,630,469
------------
6,688,995
------------
</Table>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 13
<Page>
SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
- --------------------------------------
Schedule of Investments (unaudited) (continued)
February 29, 2004
<Table>
<Caption>
FACE
AMOUNT SECURITY(a) VALUE
- ----------------------------------------------------------------------------------------------
Costa Rica -- 0.4%
$ 1,000,000 Republic of Costa Rica, 6.914% due 1/31/08 (b).............. $ 1,085,000
------------
Dominican Republic -- 0.3%
1,000,000 Dominican Republic, 9.500% due 9/27/06...................... 735,000
------------
Ecuador -- 2.3%
Republic of Ecuador:
6,025,000 12.000% due 11/15/12....................................... 6,003,912
250,000 7.000% due 8/15/30 (e)..................................... 207,562
------------
6,211,474
------------
Mexico -- 6.3%
1,200,000 PEMEX Project Funding Master Trust, 6.125% due 8/15/08...... 1,286,400
United Mexican States:
6,225,000 6.625% due 3/3/15.......................................... 6,642,075
525,000 11.375% due 9/15/16........................................ 779,625
500,000 8.125% due 12/30/19........................................ 580,375
5,450,000 8.300% due 8/15/31......................................... 6,346,525
1,075,000 7.500% due 4/8/33.......................................... 1,161,269
------------
16,796,269
------------
Panama -- 2.2%
Republic of Panama:
525,000 9.625% due 2/8/11.......................................... 609,000
3,800,000 9.375% due 1/16/23......................................... 4,161,000
850,000 9.375% due 4/1/29.......................................... 958,375
------------
5,728,375
------------
Peru -- 1.5%
Republic of Peru:
2,425,000 8.750% due 11/21/33........................................ 2,340,125
1,335,000 FLIRB, 4.500% due 3/7/17 (e)............................... 1,158,113
376,000 PDI, 5.000% due 3/7/17 (e)................................. 344,980
------------
3,843,218
------------
Philippines -- 2.2%
Republic of Philippines:
1,550,000 9.375% due 1/18/17......................................... 1,606,188
3,675,000 10.625% due 3/16/25........................................ 3,926,370
238,000 FLIRB, Series B, 2.0625% due 6/1/08 (e).................... 220,745
------------
5,753,303
------------
Russia -- 7.7%
20,755,540 Russian Federation, 5.000% due 3/31/30 (e)(f)............... 20,444,207
------------
</Table>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 14
<Page>
SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
- --------------------------------------
Schedule of Investments (unaudited) (continued)
February 29, 2004
<Table>
<Caption>
FACE
AMOUNT SECURITY(a) VALUE
- ----------------------------------------------------------------------------------------------
Turkey -- 2.3%
Republic of Turkey:
$ 3,200,000 11.500% due 1/23/12........................................ $ 4,048,000
425,000 11.000% due 1/14/13........................................ 530,188
550,000 9.500% due 1/15/14......................................... 639,375
575,000 11.875% due 1/15/30 (f).................................... 811,469
------------
6,029,032
------------
Venezuela -- 2.2%
Republic of Venezuela:
775,000 5.375% due 8/7/10.......................................... 604,500
4,400,000 9.250% due 9/15/27......................................... 3,704,800
1,250,000 9.375% due 1/13/34......................................... 1,040,625
571,410 DCB, Series DL, 2.125% due 12/18/07 (e).................... 519,983
------------
5,869,908
------------
Total Sovereign Bonds (Cost -- $97,341,799)................ 107,824,413
------------
Loan Participations (e)(g) -- 1.3%
3,520,832 Kingdom of Morocco, Tranche A, 2.03125% due 1/2/09 (J.P.
Morgan Chase & Co., Merrill Lynch, Pierce, Fenner & Smith
Inc. and UBS PaineWebber Inc.)
(Cost -- $3,297,450)...................................... 3,472,421
------------
<Caption>
SHARES
- -----------
Common Stock (h) -- 2.1%
12,166 Axiohm Transaction Solutions, Inc. (d)...................... 0
5 Glasstech Inc. (d).......................................... 0
5,664 Mattress Discounters Co. (d)................................ 50,976
29,465 NTL Inc..................................................... 2,020,120
27,106 SpectraSite, Inc............................................ 992,080
273,347 UnitedGlobalCom, Inc., Class A Shares....................... 2,594,063
------------
Total Common Stock (Cost -- $5,614,179).................... 5,657,239
------------
</Table>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 15
<Page>
SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
- --------------------------------------
Schedule of Investments (unaudited) (continued)
February 29, 2004
<Table>
<Caption>
SHARES SECURITY(a) VALUE
- ----------------------------------------------------------------------------------------------
Escrow Shares (d)(h) -- 0.0%
1,750,000 Breed Technologies, Inc..................................... $ 0
1,000,000 Imperial Sugar Co........................................... 0
625,000 Pillowtex Corp.............................................. 0
397,208 Vlasic Foods International Inc.............................. 35,749
------------
Total Escrow Shares (Cost -- $0)........................... 35,749
------------
Preferred Stock -- 0.4%
902 Alamosa Holdings, Inc., Series B, 7.500% due 7/31/13........ 409,400
12 Anvil Holdings Inc., Series B, 13.000% (h).................. 127
CSC Holdings Inc.:
5,975 Series H, 11.750% due 10/1/07.............................. 633,350
550 Series M, 11.125% due 4/1/08............................... 58,163
5 Glasstech Inc. (d)(h)....................................... 0
TCR Holding Corp. (d)(h):
4,091 Class B.................................................... 4
2,250 Class C.................................................... 2
5,932 Class D.................................................... 6
12,271 Class E.................................................... 12
------------
Total Preferred Stock (Cost -- $787,472)................... 1,101,064
------------
<Caption>
WARRANTS/
RIGHTS
- -----------
Warrants and Rights (h) -- 0.1%
365 American Tower Escrow Corp., (Exercise price of $0.01 per
share expiring on 8/1/08. Each warrant exercisable for
14.095 shares of common stock.)............................ 49,822
1,837,246 ContiFinancial Corp., Units of Interest, (Represents
interests in a trust in the liquidation of ContiFinancial
Corp. and its affiliates.)................................. 27,559
1,000 Mattress Discounters Co., (Exercise price of $0.01 per share
expiring on 7/15/07. Each warrant exercisable for 4.850
shares of Class A common stock and 0.539 shares of Class L
common stock.)............................................. 10
4,202 Pillowtex Corp., (Exercise price of $28.99 per share
expiring on 11/24/09. Each warrant exercisable for 1 share
of common stock.) (d)...................................... 0
750 UbiquiTel Operating Co., (Exercise price of $22.74 per share
expiring on 4/15/10. Each warrant exercisable for 5.965
shares of common stock.)................................... 8
192,000 United Mexican States Rights................................ 672
39,270 Venezuela Discount Rights (d)............................... 0
------------
Total Warrants and Rights (Cost -- $100,273)............... 78,071
------------
</Table>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 16
<Page>
SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
- --------------------------------------
Schedule of Investments (unaudited) (continued)
February 29, 2004
<Table>
<Caption>
FACE
AMOUNT SECURITY(a) VALUE
- ----------------------------------------------------------------------------------------------
Short-Term Investments -- 7.0%
Commercial Paper -- 2.6%
$ 2,500,000 Bryant Park Funding LLC, yield 1.050% due 3/1/04............ $ 2,500,000
4,500,000 Clipper Receivables Corp., yield 1.050% due 3/1/04.......... 4,500,000
------------
Total Commercial Paper (Cost -- $7,000,000)................ 7,000,000
------------
Repurchase Agreements -- 4.4%
4,500,000 Deutsche Bank Securities Inc. dated 2/27/04, 0.99%
due 3/1/04; Proceeds at maturity -- $4,500,371;
(Fully collateralized by various U.S. Treasury obligations,
0.000% to 3.000% due 11/15/09 to 7/15/12; Market value --
$4,634,332)................................................ 4,500,000
2,626,000 Merrill Lynch Government Securities Inc. dated 2/27/04,
0.97% due 3/1/04; Proceeds at maturity -- $2,626,212;
(Fully collateralized by U.S. Treasury Bonds and Notes,
4.620% to 10.370% due 8/15/04 to 8/15/19; Market value
-- $2,678,526)............................................. 2,626,000
4,500,000 Morgan Stanley & Co. Inc. dated 2/27/04, 0.98% due 3/1/04;
Proceeds at maturity -- $4,500,368; (Fully collateralized
by various U.S. Treasury Obligations, 0.000% to 8.000% due
7/15/12 to 11/1/33; Market value -- $4,628,722)........... 4,500,000
------------
Total Repurchase Agreements (Cost -- $11,626,000).......... 11,626,000
------------
Total Short-Term Investments (Cost -- $18,626,000)......... 18,626,000
------------
Total Investments -- 100.0% (Cost -- $249,611,604*)....... $264,799,504
------------
------------
</Table>
- ---------
(a) All securities segregated as collateral pursuant to loan agreement.
(b) 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. These securities
have been deemed liquid pursuant to guidelines approved by the Board of
Directors.
(c) Security is currently in default.
(d) Security is valued in accordance with fair valuation procedures.
(e) Interest rate shown reflects current rate on instruments with variable rate
or step coupon rates.
(f) All or a portion of this security is held as collateral for reverse
repurchase agreements (Note 6).
(g) Participation interests were acquired through the financial institutions
indicated parenthetically.
(h) Non-income producing security.
* Aggregate cost for Federal income tax purposes is substantially the same.
Abbreviations used in this schedule:
<Table>
C Bond -- Capitalization Bond
DCB -- Debt Conversion Bond
DISC -- Discount Bond
FLIRB -- Front-Loaded Interest Reduction Bond.
PDI -- Past Due Interest
</Table>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 17
<Page>
SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
- --------------------------------------------------
Statement of Assets and Liabilities (unaudited)
February 29, 2004
<Table>
ASSETS:
Investments, at value (Cost -- $249,611,604)............ $264,799,504
Cash..................................................... 1,299
Interest receivable...................................... 5,089,249
Receivable for securities sold........................... 3,279
------------
TOTAL ASSETS............................................. 269,893,331
------------
LIABILITIES:
Loan payable (Note 4).................................... 59,124,414
Payable for open reverse repurchase agreement (Note 6)... 15,838,500
Payable for securities purchased......................... 6,736,828
Loan interest payable (Note 4)........................... 232,148
Management fee payable................................... 156,776
Dividends payable........................................ 125,368
Accrued expenses......................................... 180,124
------------
TOTAL LIABILITIES........................................ 82,394,158
------------
TOTAL NET ASSETS............................................ $187,499,173
------------
------------
NET ASSETS:
Common stock ($0.001 par value, 100,000,000 shares
authorized; 15,133,790 shares outstanding).............. $ 15,134
Capital paid in excess of par value...................... 207,485,512
Overdistributed net investment income.................... (2,421,674)
Accumulated net realized loss from investment
transactions............................................ (32,767,699)
Net unrealized appreciation of investments............... 15,187,900
------------
TOTAL NET ASSETS............................................ $187,499,173
------------
------------
NET ASSET VALUE, PER SHARE ($187,499,173 [div] 15,133,790
shares outstanding)........................................ $12.39
------
------
</Table>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 18
<Page>
SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
- --------------------------------------
Statement of Operations (unaudited)
For the Six Months Ended February 29, 2004
<Table>
INVESTMENT INCOME:
Interest................................................. $ 10,498,348
Dividends................................................ 3,864
------------
TOTAL INVESTMENT INCOME.................................. 10,502,212
------------
EXPENSES:
Management fee (Note 2).................................. 962,309
Interest expense (Note 4)................................ 697,619
Audit and legal.......................................... 49,027
Shareholder communications............................... 42,339
Custody.................................................. 35,883
Directors' fees.......................................... 26,406
Listing fees............................................. 17,394
Transfer agency services................................. 15,320
Insurance................................................ 1,939
Other.................................................... 6,169
------------
TOTAL EXPENSES........................................... 1,854,405
------------
NET INVESTMENT INCOME....................................... 8,647,807
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS (NOTES 1 AND 3):
Realized Gain From Investment Transactions (excluding
short-term investments):
Proceeds from sales................................... 90,713,404
Cost of securities sold............................... 81,404,931
------------
NET REALIZED GAIN........................................ 9,308,473
------------
Change in Net Unrealized Appreciation of Investments:
Beginning of period................................... 9,841,510
End of period......................................... 15,187,900
------------
INCREASE IN NET UNREALIZED APPRECIATION.................. 5,346,390
------------
NET GAIN ON INVESTMENTS..................................... 14,654,863
------------
INCREASE IN NET ASSETS FROM OPERATIONS...................... $ 23,302,670
------------
------------
</Table>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 19
<Page>
SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
- ----------------------------------------------------
Statements of Changes in Net Assets
For the Six Months Ended February 29, 2004 (unaudited)
and the Year Ended August 31, 2003
<Table>
<Caption>
2004 2003
- -----------------------------------------------------------------------------------------
OPERATIONS:
Net investment income.................................... $ 8,647,807 $ 19,639,772
Net realized gain........................................ 9,308,473 10,658,635
Increase in net unrealized appreciation.................. 5,346,390 31,205,850
------------ ------------
INCREASE IN NET ASSETS FROM OPERATIONS................... 23,302,670 61,504,257
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income.................................... (10,767,217) (21,411,087)
------------ ------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO
SHAREHOLDERS............................................ (10,767,217) (21,411,087)
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued on reinvestment of dividends
(44,139 and 126,042 shares issued, respectively)........ 613,082 1,406,757
------------ ------------
INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS... 613,082 1,406,757
------------ ------------
INCREASE IN NET ASSETS...................................... 13,148,535 41,499,927
NET ASSETS:
Beginning of period...................................... 174,350,638 132,850,711
------------ ------------
END OF PERIOD*........................................... $187,499,173 $174,350,638
------------ ------------
------------ ------------
*Includes overdistributed net investment income of:......... $(2,421,674) $(302,264)
------------ ------------
------------ ------------
</Table>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 20
<Page>
SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
- ---------------------------------------
Statement of Cash Flows (unaudited)
For the Six Months Ended February 29, 2004
<Table>
<Caption>
CASH FLOWS PROVIDED (USED) BY OPERATING AND INVESTING
ACTIVITIES:
Interest and dividends received.......................... $ 9,239,959
Dividends payable........................................ 125,368
Operating expenses paid.................................. (1,154,457)
Net purchases of short-term investments.................. (18,231,000)
Net purchases of long-term investments................... (87,290,110)
Proceeds from disposition of long-term investments....... 92,332,698
Interest paid............................................ (705,912)
------------
NET CASH FLOWS USED BY OPERATING AND INVESTING
ACTIVITIES.............................................. (5,683,454)
------------
CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES:
Cash dividends paid on Common Stock...................... (10,767,217)
Proceeds from reverse repurchase agreement............... 15,838,500
Proceeds from reinvestment of dividends.................. 613,082
------------
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES.......... 5,684,365
------------
NET INCREASE IN CASH........................................ 911
Cash, Beginning of period................................... 388
------------
CASH, END OF PERIOD......................................... $ 1,299
------------
------------
RECONCILIATION OF INCREASE IN NET ASSETS FROM OPERATIONS TO
NET CASH FLOWS PROVIDED (USED) BY OPERATING AND INVESTING
ACTIVITIES:
INCREASE IN NET ASSETS FROM OPERATIONS................... $ 23,302,670
------------
Accretion of discount on investments..................... (1,419,037)
Amortization of premium on investments................... 181,547
Increase in investments, at value........................ (35,184,168)
Increase in interest receivable.......................... (24,763)
Decrease in receivable for investments sold.............. 604,065
Decrease in prepaid expenses............................. 12,103
Increase in payable of investments purchased............. 6,736,828
Decrease in interest payable on loan..................... (8,293)
Increase in dividends payable............................ 125,368
Decrease in accrued expenses............................. (9,774)
------------
TOTAL ADJUSTMENTS........................................ (28,986,124)
------------
NET CASH FLOWS USED BY OPERATING AND INVESTING ACTIVITIES... $ (5,683,454)
------------
------------
</Table>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 21
<Page>
SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
- ----------------------------------------------
Notes to Financial Statements (unaudited)
Note 1. Significant Accounting Policies
Salomon Brothers Global Partners Income Fund Inc. ('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.
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 accounting principles generally accepted in the
United States of America ('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
results 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.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME. Investment transactions are
recorded on the trade date. Interest income is accrued on a daily basis. Market
discount and premium on securities purchased is accreted and amortized 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.
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
PAGE 22
<Page>
SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
- ----------------------------------------------
Notes to Financial Statements (unaudited) (continued)
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. Net realized gains, if any, in excess of loss carryovers
are expected to be distributed, at least, 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. These 'book/tax' differences are either considered
temporary or permanent in nature. To the extent these differences are permanent
in nature, such amounts are reclassified within the capital accounts based on
their Federal income tax basis treatment; temporary differences do not require
reclassification. Dividends and distributions which exceed net investment income
and net realized capital gains for tax purposes are reported as tax return of
capital.
REPURCHASE AGREEMENTS. When entering into repurchase agreements, it is the
Fund's policy that a custodian takes possession of the underlying collateral
securities, the value of which at least equals the principal amount of the
repurchase transaction, including accrued interest. To the extent that any
repurchase transaction exceeds one business day, the value of the collateral is
marked-to-market to ensure the adequacy of the collateral. If the seller
defaults and the value of the collateral declines or if bankruptcy proceedings
are commenced with respect to the seller of the security, realization of the
collateral by the Fund may be delayed or limited.
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 accreting
discount and amortizing premium on debt obligations.
YEAR END TAX RECLASSIFICATIONS. The character of income and gains to be
distributed is determined in accordance with income tax regulations which may
differ from GAAP.
Note 2. Management and Advisory Fees and Other Transactions
The Fund is a party to an investment advisory and administration agreement with
Salomon Brothers Asset Management Inc ('SBAM'), an indirect wholly-owned
subsidiary of Citigroup Inc. ('Citigroup'). Pursuant to a Sub-Administration
Agreement, SBAM has delegated certain administrative services to Smith Barney
Fund Management LLC ('SBFM'), another indirect wholly-owned subsidiary of
Citigroup and an affiliate of SBAM. The sub-administration agreement is between
SBAM and SBFM. The Fund pays SBAM a monthly fee at an annual rate of 1.05%
PAGE 23
<Page>
SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
- ----------------------------------------------
Notes to Financial Statements (unaudited) (continued)
of the Fund's average weekly net assets for its services. This fee is calculated
daily and paid monthly.
Certain officers and/or directors of the Fund are also officers and/or directors
of SBAM.
Note 3. Portfolio Activity
During the six months ended February 29, 2004, the aggregate cost of purchases
and proceeds from sales of investments (including maturities of long-term
investments, but excluding short-term investments) were as follows:
<Table>
Purchases................................................... $94,026,938
-----------
-----------
Sales....................................................... $90,713,404
-----------
-----------
</Table>
At February 29, 2004, the aggregate gross unrealized appreciation and
depreciation of investments for Federal income tax purposes were substantially
as follows:
<Table>
Gross unrealized appreciation............................... $22,298,674
Gross unrealized depreciation............................... (7,110,774)
-----------
Net unrealized appreciation................................. $15,187,900
-----------
-----------
</Table>
Note 4. Loan
At February 29, 2004, the Fund had $59,124,414 outstanding of an available
$81,000,000 loan pursuant to a revolving credit and security agreement with CXC
LLC ('CXC'), an affiliate of Citigroup. CXC, a commercial paper conduit issuer
for Citicorp North America Inc., an affiliate of the adviser, acts as
administrative agent. The loans generally bear interest at a variable rate based
on the weighted average interest rates of the underlying commercial paper or
LIBOR, plus any applicable margin. Securities held by the Fund are subject to a
lien, granted to the lenders, to the extent of the borrowing outstanding and any
additional expenses.
Note 5. 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. At February 29, 2004, the Fund
held loan participations with a total cost of $3,297,450 and a total market
value of $3,472,421.
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
PAGE 24
<Page>
SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
- ----------------------------------------------
Notes to Financial Statements (unaudited) (continued)
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 6. Reverse Repurchase Agreements
The Fund may enter into reverse repurchase agreements in which a Fund sells
portfolio securities and agrees to repurchase them from the buyer at a
particular date and price. Whenever a Fund enters into a reverse repurchase
agreement, the custodian delivers liquid assets in an amount at least equal to
the repurchase price marked-to-market daily (including accrued interest), and
subsequently monitors the account to ensure that sure equivalent value is
maintained. A Fund pays interest on amounts obtained pursuant to reverse
repurchase agreements. Reverse repurchase agreements are considered to be
borrowings by a Fund. Transactions in reverse repurchase agreements for the Fund
during the six months ended February 29, 2004 were as follows:
<Table>
<Caption>
AVERAGE WEIGHTED MAXIMUM
DAILY AVERAGE AMOUNT
FUND BALANCE INTEREST RATE OUTSTANDING
- ---- ------- ------------- -----------
Global Partners Income Fund.......................... $3,022,389 1.12% $15,838,500
</Table>
Interest rates on reverse repurchase agreements ranged from 0.60% to 1.30%
during the six months ended February 29, 2004. Interest expense on reverse
repurchase agreements totaled $2,908.
In addition, at February 29, 2004, the Fund had the following open reverse
repurchase agreements outstanding:
<Table>
<Caption>
FACE
AMOUNT SECURITY VALUE
- --------- -------- -----
$ 793,500 Reverse Repurchase Agreement with J.P. Morgan Chase & Co.,
dated 2/2/04 bearing 0.600% to be repurchased at $798,340
on 2/3/05, collateralized by: $811,469 Federal Republic of
Turkey, 11.875% due 1/15/30................................ $ 793,500
15,045,000 Reverse Repurchase Agreement with J.P. Morgan Chase & Co.,
dated 2/2/04 bearing 1.300% to be repurchased at
$15,243,301 on 2/25/05, collateralized by: $14,775,000
Russian Federation, 5.000% due 3/31/30..................... 15,045,000
------------
TOTAL REVERSE REPURCHASE AGREEMENTS
(Cost -- $15,838,500)...................................... $ 15,838,500
------------
------------
</Table>
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 involves risks
not associated with higher rated securities including,
PAGE 25
<Page>
SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
- ----------------------------------------------
Notes to Financial Statements (unaudited) (continued)
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.
The net asset value and/or market value of the Fund could be negatively affected
if the Fund were required to liquidate assets in other than an orderly manner
and/or in adverse market conditions to repay any loans outstanding.
Note 8. Dividends Subsequent to February 29, 2004
On February 5, 2004, the Board of Directors of the Fund declared three dividends
each in the amount of $0.11875 per share, payable on March 26, April 30 and
May 28, 2004, to shareholders of record on March 16, April 20 and May 18, 2004,
respectively.
Note 9. Additional Information
The Fund has received the following information from Citigroup Asset Management
('CAM'), the Citigroup business unit which includes the Fund's Investment
Manager and other investment advisory companies, all of which are indirect,
wholly-owned subsidiaries of Citigroup. CAM is reviewing its entry, through an
affiliate, into the transfer agent business in the period 1997-1999. As CAM
currently understands the facts, at the time CAM decided to enter the transfer
agent business, CAM sub-contracted for a period of five years certain of the
transfer agency services to a third party and also concluded a revenue guarantee
agreement with this sub-contractor providing that the sub-contractor would
guarantee certain benefits to CAM or its affiliates (the 'Revenue Guarantee
Agreement'). In connection with the subsequent purchase of the sub-contractor's
business by an affiliate of the current sub-transfer agent (PFPC Inc.) used by
CAM on many of the funds it manages, this Revenue Guarantee Agreement was
amended eliminating those benefits in exchange for arrangements that included a
one-time payment from the sub-contractor.
The Boards of CAM-managed funds (the 'Boards') were not informed of the Revenue
Guarantee Agreement with the sub-contractor at the time the Boards considered
and approved the transfer agent arrangements. Nor were the Boards informed of
the subsequent amendment to the Revenue Guarantee Agreement when that occurred.
CAM has begun to take corrective actions. CAM will pay to the applicable funds
approximately $17 million (plus interest) that CAM and its affiliates received
from the Revenue Guarantee Agreement and its amendment. The Fund did not
implement the contractual arrangement described above and therefore will not
receive any portion of the payment. CAM also plans an independent review to
verify that the transfer agency fees charged by CAM were fairly priced as
compared to competitive alternatives. CAM is instituting new procedures and
making changes designed to ensure no similar arrangements are entered into in
the future.
PAGE 26
<Page>
SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
- ----------------------------------------------
Notes to Financial Statements (unaudited) (continued)
CAM has briefed the SEC, the New York State Attorney General and other
regulators with respect to this matter, as well as the U.S. Attorney who is
investigating the matter. CAM is cooperating with governmental authorities on
this matter, the ultimate outcome of which is not yet determinable.
The Fund's transfer agent is American Stock Transfer & Trust Company, which is
not affiliated with CAM or PFPC Inc.
PAGE 27
<Page>
SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
- ----------------------------------
Financial Highlights
For a share of common stock outstanding throughout each year ended August 31,
unless otherwise noted:
<Table>
<Caption>
2004(1) 2003 2002 2001 2000 1999
- -----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
BEGINNING OF PERIOD........................... $11.55 $ 8.88 $10.77 $11.94 $10.98 $ 9.76
-------- -------- -------- -------- -------- --------
INCOME (LOSS) FROM OPERATIONS:
Net investment income(2)...................... 0.57 1.30 1.36 1.38 1.44 1.59
Net realized and unrealized
gain (loss)(2).............................. 0.98 2.79 (1.83) (1.12) 0.95 1.30
-------- -------- -------- -------- -------- --------
Total Income (Loss) From Operations............ 1.55 4.09 (0.47) 0.26 2.39 2.89
-------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS FROM:
Net investment income......................... (0.71) (1.43) (1.38) (1.42) (1.43) (1.67)
Capital....................................... -- -- (0.05) (0.01) -- --
-------- -------- -------- -------- -------- --------
Total Distributions............................ (0.71) (1.43) (1.43) (1.43) (1.43) (1.67)
-------- -------- -------- -------- -------- --------
INCREASE IN NET ASSET VALUE DUE TO SHARES
ISSUED ON REINVESTMENT OF DIVIDENDS........... -- 0.01 0.01 -- -- --
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD................. $12.39 $11.55 $ 8.88 $10.77 $11.94 $10.98
-------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- --------
MARKET VALUE, END OF PERIOD.................... $15.07 $13.11 $10.43 $11.88 $11.6250 $11.3125
-------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- --------
TOTAL RETURN,
BASED ON MARKET VALUE(3)...................... 20.94%'DD' 42.71% (0.25)% 16.26% 17.57% 53.57%
RATIOS TO AVERAGE NET ASSETS:
Total expenses, including interest expense.... 2.03%'D' 2.37% 3.24% 4.90% 4.95% 4.22%
Total expenses, excluding interest expense
(operating expenses)........................ 1.27%'D' 1.36% 1.43% 1.28% 1.30% 1.27%
Net investment income(2)...................... 9.48%'D' 12.76% 13.80% 12.53% 12.53% 14.26%
PORTFOLIO TURNOVER RATE........................ 38% 91% 129% 92% 111% 102%
NET ASSETS, END OF PERIOD (000S)............... $187,499 $174,351 $132,851 $159,797 $176,070 $162,004
Loans Outstanding, End of Period (000s)........ $59,124 $59,124 $59,124 $75,000 $75,000 $75,000
Weighted Average Loans (000s).................. $59,124 $59,124 $72,423 $75,000 $75,000 $75,000
Weighted Average Interest Rate on Loans........ 2.36%'D' 2.65% 3.71% 7.86% 8.28% 6.42%
- ----------------------------------------------------------------------------------------------------------------
</Table>
(1) For the six months ended February 29, 2004 (unaudited).
(2) Effective September 1, 2001, the Fund adopted a change in the accounting
method that requires the Fund to amortize premiums and accrete all
discounts. Without the adoption of this change for the year ended
August 31, 2002, those amounts would have been $1.37, $1.84 and 13.87%
for net investment income, net realized and unrealized loss and the
ratio of net investment income to average net assets, respectively.
Per share, ratios and supplemental data for the periods prior to
September 1, 2001 have not been restated to reflect this change in
presentation.
(3) 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.
'DD' Total return is not annualized, as it may not be representative of the
total return for the year.
'D' Annualized.
PAGE 28
<Page>
SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
- ---------------------------------------------------
Additional Shareholder Information (unaudited)
RESULT OF ANNUAL MEETING OF SHAREHOLDERS
The Annual Meeting of Shareholders of Salomon Brothers Global Partners Income
Fund Inc. was held on December 11, 2003, for the purposes of considering and
voting upon the election of: Daniel P. Cronin, as a Class I Director to serve
until the 2004 Annual Meeting; Carol L. Colman to serve as a Class II Director
until the 2005 Annual Meeting; and William R. Hutchinson, R. Jay Gerken and
Jeswald W. Salacuse as Class III Directors of the Fund, to serve until the 2006
Annual Meeting of Shareholders. The following table provides information
concerning the matter voted upon at the Meeting.
1. ELECTION OF DIRECTORS
<Table>
<Caption>
VOTES FOR VOTES WITHHELD
NOMINEES --------- --------------
Carol L. Colman............................................. 13,897,008 171,979
Daniel P. Cronin............................................ 13,897,634 171,353
R. Jay Gerken............................................... 13,897,873 171,114
William R. Hutchinson....................................... 13,897,873 171,114
Jeswald W. Salacuse......................................... 13,911,943 157,044
</Table>
At February 29, 2004, in addition to Carol L. Colman, Daniel P. Cronin, R. Jay
Gerken, William R. Hutchinson and Jeswald W. Salacuse, the other Directors of
the Fund were as follows:
Leslie H. Gelb
Riordan Roett
PAGE 29
<Page>
SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
- --------------------------------------------------------------------------------
PURSUANT TO CERTAIN RULES OF THE SECURITIES AND EXCHANGE COMMISSION, THE
FOLLOWING ADDITIONAL DISCLOSURE IS PROVIDED.
Form of Terms and Conditions of Amended and Restated Dividend
Reinvestment and Cash Purchase Plan (unaudited)
1. Each shareholder initially purchasing shares of common stock ('Shares') of
Salomon Brothers Global Partners Income Fund Inc. ('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 ('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 ('Agent'). 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 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.
PAGE 30
<Page>
SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
- --------------------------------------------------------------------------------
Form of Terms and Conditions of Amended and Restated Dividend
Reinvestment and Cash Purchase Plan (unaudited) (continued)
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 31
<Page>
SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
- --------------------------------------------------------------------------------
Form of Terms and Conditions of Amended and Restated Dividend
Reinvestment and Cash Purchase Plan (unaudited) (continued)
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
PAGE 32
<Page>
SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
- --------------------------------------------------------------------------------
Form of Terms and Conditions of Amended and Restated Dividend
Reinvestment and Cash Purchase Plan (unaudited) (continued)
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 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 59
Maiden Lane, New York, New York 10038.
The report is transmitted to the shareholders of the Fund for their information.
This is not a prospectus, circular or representation intended for use in the
purchase of shares of the Fund or any securities mentioned in this report.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Fund may purchase at market prices from time to
time shares of its common stock in the open market.
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available without charge,
upon request, by telephoning the Fund (toll-free) at 1-800-446-1013 and by
visiting the SEC's web site at www.sec.gov.
PAGE 33
<Page>
SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.
- ---------
Directors
CAROL L. COLMAN
DANIEL P. CRONIN
LESLIE H. GELB
R. JAY GERKEN, CFA
WILLIAM R. HUTCHINSON
RIORDAN ROETT
JESWALD W. SALACUSE
- -------
Officers
R. JAY GERKEN, CFA
Chairman and
Chief Executive Officer
PETER J. WILBY, CFA
President
ANDREW B. SHOUP
Senior Vice President,
Chief Administrative Officer
and Treasurer
JAMES E. CRAIGE, CFA
Executive Vice President
THOMAS K. FLANAGAN, CFA
Executive Vice President
BETH A. SEMMEL, CFA
Executive Vice President
FRANCES M. GUGGINO
Controller
ROBERT I. FRENKEL
Secretary and
Chief Legal Officer
- ----------------------------
Salomon Brothers Global
Partners Income Fund Inc.
125 Broad Street
10th Floor, MF-2
New York, New York 10004
Telephone 1-888-777-0102
INVESTMENT ADVISER
Salomon Brothers Asset Management Inc
399 Park Avenue
New York, New York 10022
CUSTODIAN
State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02110
DIVIDEND DISBURSING AND TRANSFER AGENT
American Stock Transfer & Trust Company
59 Maiden Lane
New York, New York 10038
INDEPENDENT AUDITORS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
LEGAL COUNSEL
Simpson Thacher & Bartlett LLP
425 Lexington Avenue
New York, New York 10017
NEW YORK STOCK EXCHANGE SYMBOL
GDF
PAGE 34
ITEM 2. CODE OF ETHICS.
Not Applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not Applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
The Board of Directors of the Fund has delegated the authority to
develop policies and procedures relating to proxy voting to the
Manager. The Manager is part of Citigroup Asset Management ("CAM"), a
group of investment adviser affiliates of Citigroup, Inc.
("Citigroup"). Along with the other investment advisers that comprise
CAM, the Manager has adopted a set of proxy voting policies and
procedures (the "Policies") to ensure that the Manager votes proxies
relating to equity securities in the best interest of clients.
In voting proxies, the Manager is guided by general fiduciary
principles and seeks to act prudently and solely in the best interest
of clients. The Manager attempts to consider all factors that could
affect the value of the investment and will vote proxies in the manner
that it believes will be consistent with efforts to maximize
shareholder values. The Manager may utilize an external service
provider to provide it with information and/or a recommendation with
regard to proxy votes. However, such recommendations do not relieve the
Manager of its responsibility for the proxy vote.
In the case of a proxy issue for which there is a stated position in
the Policies, CAM generally votes in accordance with such stated
position. In the case of a proxy issue for which there is a list of
factors set forth in the Policies that CAM considers in voting on such
issue, CAM votes on a case-by-case basis in accordance with the general
principles set forth above and considering such enumerated factors. In
the case of a proxy issue for which there is no stated position or list
of factors that CAM considers in voting on such issue, CAM votes on a
case-by-case basis in accordance with the general principles set forth
above. Issues for which there is a stated position set forth in the
Policies or for which there is a list of factors set forth in the
Policies that CAM considers in voting on such issues fall into a
variety of categories, including election of directors, ratification of
auditors, proxy and tender offer defenses, capital structure issues,
executive and director
compensation, mergers and corporate restructurings, and social and
environmental issues. The stated position on an issue set forth in the
Policies can always be superseded, subject to the duty to act solely in
the best interest of the beneficial owners of accounts, by the
investment management professionals responsible for the account whose
shares are being voted. Issues applicable to a particular industry may
cause CAM to abandon a policy that would have otherwise applied to
issuers generally. As a result of the independent investment advisory
services provided by distinct CAM business units, there may be
occasions when different business units or different portfolio managers
within the same business unit vote differently on the same issue.
In furtherance of the Manager's goal to vote proxies in the best
interest of clients, the Manager follows procedures designed to
identify and address material conflicts that may arise between the
Manager's interests and those of its clients before voting proxies on
behalf of such clients. To seek to identify conflicts of interest, CAM
periodically notifies CAM employees (including employees of the
Manager) in writing that they are under an obligation (i) to be aware
of the potential for conflicts of interest with respect to voting
proxies on behalf of client accounts both as a result of their personal
relationships and due to special circumstances that may arise during
the conduct of CAM's and the Manager's business, and (ii) to bring
conflicts of interest of which they become aware to the attention of
compliance personnel. The Manager also maintains and considers a list
of significant relationships that could present a conflict of interest
for the Manager in voting proxies. The Manager is also sensitive to the
fact that a significant, publicized relationship between an issuer and
a non-CAM affiliate might appear to the public to influence the manner
in which the Manager decides to vote a proxy with respect to such
issuer. Absent special circumstances or a significant, publicized
non-CAM affiliate relationship that CAM or the Manager for prudential
reasons treats as a potential conflict of interest because such
relationship might appear to the public to influence the manner in
which the Manager decides to vote a proxy, the Manager generally takes
the position that non-CAM relationships between Citigroup and an issuer
(e.g. investment banking or banking) do not present a conflict of
interest for the Manager in voting proxies with respect to such issuer.
Such position is based on the fact that the Manager is operated as an
independent business unit from other Citigroup business units as well
as on the existence of information barriers between the Manager and
certain other Citigroup business units.
CAM maintains a Proxy Voting Committee, of which the Manager personnel
are members, to review and address conflicts of interest brought to its
attention by compliance personnel. A proxy issue that will be voted in
accordance with a stated position on an issue or in accordance with the
recommendation of an independent third party is not brought to the
attention of the Proxy Voting Committee for a conflict of interest
review because the Manager's position is that to the extent a conflict
of interest issue exists, it is resolved by voting in accordance with a
pre-determined policy or in accordance with the recommendation of an
independent third party. With respect to a conflict of interest brought
to its attention, the
Proxy Voting Committee first determines whether such conflict of
interest is material. A conflict of interest is considered material to
the extent that it is determined that such conflict is likely to
influence, or appear to influence, the Manager's decision-making in
voting proxies. If it is determined by the Proxy Voting Committee that
a conflict of interest is not material, the Manager may vote proxies
notwithstanding the existence of the conflict.
If it is determined by the Proxy Voting Committee that a conflict of
interest is material, the Proxy Voting Committee is responsible for
determining an appropriate method to resolve such conflict of interest
before the proxy affected by the conflict of interest is voted. Such
determination is based on the particular facts and circumstances,
including the importance of the proxy issue and the nature of the
conflict of interest. Methods of resolving a material conflict of
interest may include, but are not limited to, disclosing the conflict
to clients and obtaining their consent before voting, or suggesting to
clients that they engage another party to vote the proxy on their
behalf.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive officer and principal
financial officer have concluded that the registrant's
disclosure controls and procedures (as defined in Rule 30a-
3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act")) are effective as of a date within 90 days of the
filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the
disclosure controls and procedures required by Rule 30a-3(b)
under the 1940 Act and 15d-15(b) under the Securities Exchange
Act of 1934.
(b) There were no changes in the registrant's internal control
over financial reporting (as defined in Rule 30a-3(d) under
the 1940 Act) that occurred during the registrant's last
fiscal half-year (the registrant's second fiscal half-year in
the case of an annual report) that have materially affected,
or are likely to materially affect the registrant's internal
control over financial reporting.
ITEM 10. EXHIBITS.
(a) Not applicable.
(b) Attached hereto.
Exhibit 99.CERT Certifications pursuant to section 302 of the
Sarbanes-Oxley Act of 2002
Exhibit 99.906CERT Certifications pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this Report to be
signed on its behalf by the undersigned, there unto duly authorized.
Salomon Brothers Global Partners Income Fund Inc.
By: /s/ R. Jay Gerken
R. Jay Gerken
Chief Executive Officer of
Salomon Brothers Global Partners Income Fund Inc.
Date: May 4, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ R. Jay Gerken
R. Jay Gerken
Chief Executive Officer of
Salomon Brothers Global Partners Income Fund Inc.
Date: May 4, 2004
By: /s/ Andrew B. Shoup
Andrew B. Shoup
Chief Administrative Officer of
Salomon Brothers Global Partners Income Fund Inc.
Date: May 4, 2004
STATEMENT OF DIFFERENCES
The dagger symbol shall be expressed as.................................. 'D'
The double dagger symbol shall be expressed as........................... 'DD'
The division sign shall be expressed as.................................. [div]
The section symbol shall be expressed as................................. 'SS'