<Page>
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 811-8338
Salomon Brothers Emerging Markets Floating Rate 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.
Salomon Brothers Asset Management Inc
300 First Stamford Place
Stamford, CT 06902
(Name and address of agent for service)
Registrant's telephone number, including area code: (800) 446-1013
Date of fiscal year end: February 29
Date of reporting period: February 29, 2004
ITEM 1. REPORT TO STOCKHOLDERS.
The Annual Report to Stockholders is filed herewith.
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SALOMON BROTHERS EMERGING MARKETS FLOATING RATE FUND INC.
- ------------------------
Letter from the Chairman
DEAR SHAREHOLDER,
<Table>
I am pleased to report that the Salomon Brothers Emerging [R. Jay Gerken Photo]
Markets Floating Rate Fund Inc. performed well during the 12 R. JAY GERKEN, CFA
months ended February 29, 2004. The fund returned 31.55%, Chairman and Chief
based on its New York Stock Exchange ('NYSE') market price Executive Officer
and 28.37% based on its net asset value ('NAV')(i) per share.
In comparison, its benchmark, the unmanaged J.P. Morgan
Emerging Markets Bond Index Plus ('EMBI'),(ii) returned
23.02% and its Lipper emerging markets debt closed-end funds
category average was 28.07% over the same time frame.(iii)
Please note that Lipper performance returns are based on
each fund's NAV.
During this 12-month period, the fund distributed dividends
to shareholders totaling $1.05 per share. The performance
table shows the fund's 12-month total return based on its
NAV and market price as of February 29, 2004. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
</Table>
- --------------------------------------------------------------------------------
FUND PERFORMANCE
AS OF FEBRUARY 29, 2004
[Fund Performance Graph]
12-Month
Price Per Share Total Return
---------------------------------------------------------------
$13.28 (NAV) 28.37%
---------------------------------------------------------------
$13.69 (NYSE) 31.55%
---------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
MARKET OVERVIEW
Emerging markets debt returned a strong 23.02% during the fund's fiscal year as
represented by the EMBI+, continuing a rally extending back into the fourth
quarter of 2002. However, as opposed to the rally in the final quarter of 2002,
which was primarily a rebound from an over-sold market position, performance
over the fiscal year increasingly focused on improving country fundamentals. The
positive macro environment over the period has been supportive of improving
credit quality across the emerging markets, which when combined with continued
progress on political and economic reforms in many Latin American countries,
encouraged broader investor participation in emerging markets debt. In addition,
the improving credit quality of the market
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SALOMON BROTHERS EMERGING MARKETS FLOATING RATE FUND INC.
may have caused some investors to change their allocation to emerging markets
from tactical to strategic, further strengthening technical support for the
market.
An increasingly stable U.S. economy also contributed to the rally in the
emerging markets. Concerns about the economic impact of the war in Iraq did not
prove as extended as first expected. The quicker-than-anticipated resolution to
these concerns, combined with higher industrial productivity and stabilization
in the unemployment rate, boosted equity returns in the U.S., further
contributing to a positive investment environment in emerging markets.
The rally in emerging markets was generally supported by positive returns in the
U.S. Treasury bond market in 2003. In July, U.S. Treasury bond prices dropped
following a report stating that economic growth sharply accelerated, which
prompted investors to question if the Fed's rate-cutting cycle had about run its
course. Accordingly, the rally in emerging markets was temporarily halted in
July and resumed at a less torrid pace during the rest of the year. Investors
were encouraged by the relative stability of emerging market spreads during this
volatile Treasury market. During the month of July, when the U.S. Treasury 10
year declined 7.17%, spreads on the EMBI+ Index actually tightened by 15 basis
points.(iv) In other periods of comparable Treasury volatility, emerging markets
have experienced dramatic spread widening.
Low interest rates created a favorable environment for all emerging economies
and have been key to the technical strength in the market, encouraging investors
to assume credit risk by focusing on higher-yielding securities. Those with
economic policies perceived by investors as strong (such as Brazil) experienced
real improvement in credit quality, while those with sub-optimal policies (such
as Ecuador) gained a reprieve. Ecuador and Brazil were the best performers in
the index over the past 12 months.
Significant strength in commodity markets, including metals, agriculture and
oil, provided positive support for many emerging market countries, as
commodities exports are an important source of growth for emerging economies.
Oil prices remained high during the past 12 months and rose from $30 to over $36
per barrel over the three months ending in February 2004. Revenues from oil
production contributed to positive performance in Ecuador, Russia and Venezuela.
Spreads tightened during the 12-month period ending February 29, 2004, closing
at 449 basis points over U.S. Treasuries. Over the same period, 12-month return
volatility stood at 7.47%,(v) substantially below long-term historical levels of
16%.
FACTORS IMPACTING FUND PERFORMANCE
The fund's overweight positions in Ecuador and Brazil were the primary
contributors to its outperformance in the 12-month period ending February 29,
2004. The fund's underweight position in Venezuela during the early part of the
12-month period detracted from our relative fund performance; however, we
increased its position in Venezuela to market weight in the latter part of the
period. While we maintained our positive outlook on emerging markets debt
throughout the past 12 months, we reduced the extent of the fund's overweight to
the market as spreads tightened over the course of the 12 months. Specifically,
we reduced the magnitude of the fund's overweight in Ecuador and Brazil in
December, primarily through security selection. The fund's use of leverage also
positively contributed to performance. As of the period's close, the
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SALOMON BROTHERS EMERGING MARKETS FLOATING RATE FUND INC.
yields on emerging markets debt securities remained competitive to those on 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 'EFL' and its closing market price is
available in most newspapers under the NYSE listings. The daily NAV is available
online under symbol XEFLX. 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.citigroupassetmanagement.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.
As always, thank you for your confidence in our stewardship of your assets. We
look forward to helping you continue to meet your financial goals.
Sincerely,
/s/ R. Jay Gerken
R. Jay Gerken, CFA
Chairman and Chief Executive Officer
March 17, 2004
<Page>
SALOMON BROTHERS EMERGING MARKETS FLOATING RATE 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 and 6 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: Foreign securities are subject to certain risks of overseas investing
including currency fluctations and changes in political and economic conditions,
which could result in significant market fluctations. 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) Lipper, Inc. is a major independent mutual-fund tracking organization.
Returns are based on the 12-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.
(iv) A basis point is one one-hundredth (1/100 or 0.01) of one percent.
(v) Source: J.P. Morgan.
<Page>
SALOMON BROTHERS EMERGING MARKETS FLOATING RATE FUND INC.
- -----------------------
Schedule of Investments
February 29, 2004
<Table>
<Caption>
FACE
AMOUNT SECURITY (a) VALUE
- ---------------------------------------------------------------------------------------------
Sovereign Bonds -- 94.8%
Brazil -- 30.9%
Federal Republic of Brazil (b):
$ 4,100,000 DCB, Series L, 2.063% due 4/15/12.......................... $ 3,531,125
4,611,538 FLIRB, Series L, 2.000% due 4/15/09........................ 4,254,144
5,535,484 MYDFA, 2.000% due 9/15/07.................................. 5,109,705
5,451,569 NMB, 2.063% due 4/15/09.................................... 5,001,815
-----------
17,896,789
-----------
Bulgaria -- 5.4%
3,197,619 Republic of Bulgaria, FLIRB, Series A, 2.000% due 7/28/12
(b)........................................................ 3,153,652
-----------
Colombia -- 6.1%
Republic of Colombia:
900,000 7.625% due 2/15/07......................................... 976,500
1,770,000 8.700% due 2/15/16......................................... 1,734,600
650,000 11.750% due 2/25/20........................................ 801,125
-----------
3,512,225
-----------
Ecuador -- 6.8%
Republic of Ecuador:
1,650,000 12.000% due 11/15/12....................................... 1,644,225
2,775,000 7.000% due 8/15/30 (b)..................................... 2,303,944
-----------
3,948,169
-----------
Mexico -- 5.5%
United Mexican States:
1,600,000 8.375% due 1/14/11......................................... 1,926,000
1,100,000 8.300% due 8/15/31......................................... 1,280,950
-----------
3,206,950
-----------
Panama -- 5.6%
3,608,104 Republic of Panama, PDI, 2.000% due 7/17/16 (b)............. 3,238,274
-----------
Peru -- 7.0%
4,675,000 Republic of Peru, FLIRB, 4.500% due 3/7/17 (b).............. 4,055,562
-----------
Philippines -- 6.0%
Republic of Philippines:
350,000 8.875% due 4/15/08......................................... 379,312
1,272,000 DCB, 2.063% due 12/1/09 (b)................................ 1,151,160
1,175,000 FLIRB, Series B, 2.063% due 6/1/08 (b)..................... 1,089,812
846,667 NMB, 2.063% due 1/5/05 (b)................................. 838,200
-----------
3,458,484
-----------
</Table>
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SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 5
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SALOMON BROTHERS EMERGING MARKETS FLOATING RATE FUND INC.
- -----------------------
Schedule of Investments (continued)
February 29, 2004
<Table>
<Caption>
FACE
AMOUNT SECURITY (a) VALUE
- ---------------------------------------------------------------------------------------------
Russia -- 5.6%
$ 3,275,000 Russia Federation, 5.000% due 3/31/30 (b)................... $ 3,225,875
-----------
Turkey -- 6.0%
Republic of Turkey:
1,150,000 12.375% due 6/15/09........................................ 1,461,938
1,600,000 11.500% due 1/23/12........................................ 2,024,000
-----------
3,485,938
-----------
Venezuela -- 9.9%
6,285,510 Republic of Venezuela, DCB, Series DL, 2.125% due 12/18/07
(b)........................................................ 5,719,814
-----------
Total Sovereign Bonds (Cost -- $49,582,166)............... 54,901,732
-----------
Loan Participations (b)(c) -- 4.8%
2,795,812 Kingdom of Morocco, Tranche A, 2.031% due 1/2/09
(J.P. Morgan Chase & Co., CS First Boston Corp., UBS
Financial Services Inc.) (Cost -- $2,653,434)............ 2,757,370
-----------
Repurchase Agreement -- 0.4%
258,000 Deutsche Bank Securities Inc. dated 2/27/04, 0.990% due
3/1/04; Proceeds at maturity -- $258,021; (Fully
collateralized by various U.S. government agency
obligations, 0.000% to 3.000% due 11/15/09 to 7/15/12;
Market value -- $265,701) (Cost -- $258,000)........... 258,000
-----------
Total Investments -- 100.0% (Cost -- $52,493,600*)....... $57,917,102
-----------
-----------
- ---------------------------------------------------------------------------------------------
</Table>
(a) Securities are segregated as collateral pursuant to loan agreement or swap
agreement.
(b) Rate shown reflects current rate on instruments with variable rates or step
coupon rates.
(c) Participation interests were acquired through the financial institutions
indicated parenthetically.
* Aggregate cost for Federal income tax purposes is $52,684,340.
Abbreviations used in this schedule:
-----------------------------------
DCB -- Debt Conversion Bond
FLIRB -- Front Loaded Interest Reduction Bond
MYDFA -- Multi-Year Depository Facility Agreement
NMB -- New Money Bond
PDI -- Past Due Interest
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 6
<Page>
SALOMON BROTHERS EMERGING MARKETS FLOATING RATE FUND INC.
- -----------------------------------
Statement of Assets and Liabilities
February 29, 2004
<Table>
ASSETS:
Investments, at value (Cost -- $52,493,600)............. $57,917,102
Cash..................................................... 2,451,908
Receivable for securities sold........................... 13,801,912
Interest receivable...................................... 546,507
-----------
TOTAL ASSETS............................................. 74,717,429
-----------
LIABILITIES:
Loan payable............................................. 15,000,000
Unrealized depreciation on interest rate swap contract
(Note 4)................................................ 2,186,496
Payable on interest rate swap contract................... 134,598
Loan interest payable (Note 6)........................... 57,646
Management fee payable................................... 47,972
Accrued expenses......................................... 147,250
-----------
TOTAL LIABILITIES........................................ 17,573,962
-----------
TOTAL NET ASSETS............................................ $57,143,467
-----------
-----------
NET ASSETS:
Common Stock ($0.001 par value, 100,000,000 shares
authorized; 4,301,998 shares outstanding)............... $ 4,302
Additional paid-in capital............................... 57,107,111
Overdistributed net investment income.................... (38,621)
Accumulated net realized loss from investment
transactions and interest rate swap contract............ (3,166,331)
Net unrealized appreciation of investments and interest
rate swap contract...................................... 3,237,006
-----------
TOTAL NET ASSETS............................................ $57,143,467
-----------
-----------
NET ASSET VALUE, PER SHARE ($57,143,467 [div] 4,301,998
shares outstanding)........................................ $13.28
------
------
</Table>
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SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 7
<Page>
SALOMON BROTHERS EMERGING MARKETS FLOATING RATE FUND INC.
- -----------------------
Statement of Operations
For the Year Ended February 29, 2004
<Table>
INVESTMENT INCOME:
Interest................................................. $ 5,646,022
-----------
EXPENSES:
Management fee (Note 2).................................. 577,420
Interest expense (Note 6)................................ 360,200
Legal fees............................................... 96,931
Audit fees............................................... 65,818
Directors' fees.......................................... 50,090
Shareholder communications............................... 43,330
Transfer agency services................................. 28,096
Registration fees........................................ 25,129
Custody.................................................. 22,277
Insurance................................................ 1,878
Other.................................................... 23,369
-----------
TOTAL EXPENSES........................................... 1,294,538
-----------
NET INVESTMENT INCOME....................................... 4,351,484
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND INTEREST RATE SWAP CONTRACT (NOTES 3 AND 4):
Realized Gain (Loss) From:
Investment transactions............................... 6,368,056
Interest rate swap contract........................... (783,953)
-----------
NET REALIZED GAIN........................................ 5,584,103
-----------
Change in Net Unrealized Appreciation (Depreciation) of
Investments
and Interest Rate Swap Contract:
Beginning of year..................................... (141,563)
End of year........................................... 3,237,006
-----------
INCREASE IN NET UNREALIZED APPRECIATION.................. 3,378,569
-----------
NET GAIN ON INVESTMENTS AND INTEREST RATE SWAP CONTRACT..... 8,962,672
-----------
INCREASE IN NET ASSETS FROM OPERATIONS...................... $13,314,156
-----------
-----------
</Table>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 8
<Page>
SALOMON BROTHERS EMERGING MARKETS FLOATING RATE FUND INC.
- -----------------------------------
Statements of Changes in Net Assets
For the Years Ended February 29, 2004 and
February 28, 2003
<Table>
<Caption>
2004 2003'D'
- ----------------------------------------------------------------------------------------
OPERATIONS:
Net investment income.................................... $ 4,351,484 $ 5,354,869
Net realized gain (loss)................................. 5,584,103 (3,758,292)
Increase (decrease) in net unrealized appreciation....... 3,378,569 (428,217)
----------- -----------
INCREASE IN NET ASSETS FROM OPERATIONS................... 13,314,156 1,168,360
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income.................................... (4,501,258) (4,679,499)
Capital.................................................. -- (60,548)
----------- -----------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO
SHAREHOLDERS............................................ (4,501,258) (4,740,047)
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued for reinvestment of dividends
(4,728 and 7,325 shares issued, respectively)........... 59,995 74,280
----------- -----------
INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS... 59,995 74,280
----------- -----------
INCREASE (DECREASE) IN NET ASSETS........................... 8,872,893 (3,497,407)
NET ASSETS:
Beginning of year........................................ 48,270,574 51,767,981
----------- -----------
END OF YEAR*............................................. $57,143,467 $48,270,574
----------- -----------
----------- -----------
* Includes overdistributed net investment income of:........ $(38,621) $(3,476)
----------- -----------
----------- -----------
</Table>
- ---------
'D' Certain amounts have been reclassified among net investment income and net
realized gains in order to conform to current year presentation of swap
contracts. At February 29, 2004 and February 28, 2003, $783,953 and $680,700
were reclassified from net investment income to net realized gains. These
reclassifications had no impact on the net assets of the Fund or the amount
and character of distributions.
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 9
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SALOMON BROTHERS EMERGING MARKETS FLOATING RATE FUND INC.
- -----------------------
Statement of Cash Flows
For the Year Ended February 29, 2004
<Table>
CASH FLOWS PROVIDED (USED) BY OPERATING AND INVESTING
ACTIVITIES:
Interest received........................................ $ 3,866,395
Operating expenses paid.................................. (831,874)
Net sales of short-term investments...................... 1,915,000
Realized loss on interest rate swap transactions......... (783,953)
Purchases of long-term investments....................... (58,943,150)
Proceeds from disposition of long-term investments....... 59,303,710
Interest paid on bank loans.............................. (367,055)
------------
NET CASH FLOWS PROVIDED BY OPERATING AND INVESTING
ACTIVITIES.............................................. 4,159,073
------------
CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES:
Cash distributions paid on Common Stock.................. (4,501,258)
Proceeds from reinvestment of dividends.................. 59,995
------------
NET CASH FLOWS USED BY FINANCING ACTIVITIES................. (4,441,263)
------------
NET DECREASE IN CASH........................................ (282,190)
Cash, Beginning of Year..................................... 2,734,098
------------
CASH, END OF YEAR........................................... $ 2,451,908
------------
------------
RECONCILIATION OF INCREASE IN NET ASSETS FROM OPERATIONS TO
NET CASH FLOWS PROVIDED BY OPERATING AND INVESTING
ACTIVITIES:
INCREASE IN NET ASSETS FROM OPERATIONS................... $ 13,314,156
------------
Accretion of discount on investments..................... (2,252,346)
Decrease in investments, at value........................ 3,172,244
Amortization of premium on investments................... 160,334
Decrease in interest receivable.......................... 306,023
Increase in interest rate swap contract payable.......... 6,362
Increase in receivable for securities sold............... (8,344,974)
Decrease in payable for securities purchased............. (2,298,335)
Decrease in interest payable on loan..................... (6,855)
Increase in accrued expenses............................. 102,464
------------
TOTAL ADJUSTMENTS........................................ (9,155,083)
------------
NET CASH FLOWS PROVIDED BY OPERATING AND INVESTING
ACTIVITIES................................................. $ 4,159,073
------------
------------
</Table>
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SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 10
<Page>
SALOMON BROTHERS EMERGING MARKETS FLOATING RATE FUND INC.
- -----------------------------
Notes to Financial Statements
Note 1. Organization and Significant Accounting Policies
Salomon Brothers Emerging Markets Floating Rate Fund Inc. ('Fund'), was
incorporated in Maryland on January 21, 1994 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
March 25, 1994. The Fund seeks to maintain a high level of current income by
investing at least 80% of its net assets plus any borrowings for investment
purposes in floating rate debt securities of emerging market sovereign and
corporate issuers, including fixed rate securities with respect to which the
Fund has entered into interest rate swaps to effectively convert the fixed rate
interest payments received into floating rate interest payments. 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 may differ from those estimates.
(a) 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 price 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 at 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 and all other securities
and assets are valued at fair value as determined in good faith by, or under
procedures established by, the Board of Directors.
(b) 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 are accreted on an effective yield
basis over the life of the security. The
PAGE 11
<Page>
SALOMON BROTHERS EMERGING MARKETS FLOATING RATE FUND INC.
- -----------------------------
Notes to Financial Statements (continued)
Fund uses the specific identification method for determining realized gain or
loss on sale of investments.
(c) FEDERAL INCOME TAXES. The Fund has complied and intends to continue to
comply with the requirements of the Internal Revenue Code of 1986, as amended,
applicable to regulated investment companies, and to distribute all, or
substantially all, of its income and capital gains, if any, to its shareholders.
Therefore, no federal income tax or excise tax provision is required.
(d) DIVIDENDS AND DISTRIBUTIONS. The Fund declares and pays dividends to
shareholders monthly from net investment income. Net realized gains, if any, in
excess of loss carryovers are expected to be distributed annually. Dividends and
distributions to shareholders are recorded on the ex-dividend date. The amount
of dividends and distributions from net investment income and net realized gains
are determined in accordance with federal income tax regulations, which may
differ from GAAP. These '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
tax basis treatment; temporary differences do not require reclassifications.
Dividends and distributions which exceed net investment income and net realized
capital gains for tax purposes are reported as a return of capital.
(e) 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.
(f) 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. At February 29, 2004, reclassifications were made to the
Fund's capital accounts to reflect permanent book/tax differences and income and
gains available for distribution under income tax regulations. Accordingly, a
portion of overdistributed net investment income amounting to $773,393 was
reclassified to paid-in capital. Net investment income, net realized gains and
net assets were not affected by these changes.
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
PAGE 12
<Page>
SALOMON BROTHERS EMERGING MARKETS FLOATING RATE FUND INC.
- -----------------------------
Notes to Financial Statements (continued)
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% 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
For the year 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................................................... $56,644,815
-----------
-----------
Sales....................................................... $61,051,078
-----------
-----------
</Table>
At February 29, 2004, the aggregate gross unrealized appreciation and
depreciation of investments for Federal income tax purposes were as follows:
<Table>
Gross unrealized appreciation............................... $5,727,264
Gross unrealized depreciation............................... (494,502)
----------
Net unrealized appreciation................................. $5,232,762
----------
----------
</Table>
Note 4. Interest Rate Swaps
In order to manage interest rate sensitivity (duration), the Fund has entered
into an interest rate swap agreement with J.P. Morgan Chase Bank (counterparty)
pursuant to which, the Fund has guaranteed to make semi-annual payments to the
counterparty at predetermined fixed rates, in exchange for floating payments
from the counterparty at the 6-month LIBOR, based on notional principal amount.
During the term of the outstanding swap agreement, changes in the underlying
value of the swap are recorded as unrealized gains or losses. Net periodic
interest payments to be received or paid are accrued daily and recorded in the
statement of operations as an adjustment to realized gain or loss. At
February 29, 2004, the Fund had outstanding the following interest rate swap
agreement:
<Table>
Swap Counterparty: J.P. Morgan Chase Bank
Effective Date: 12/28/00
Notional Amount: $16,000,000
Payments Made by the Fund: Fixed Rate 6.13%
Payments Received by the Fund: Floating Rate (6-month LIBOR)
Termination Date: 12/29/10
Unrealized Depreciation as of
2/29/04: $(2,186,496)
</Table>
In connection with this agreement, the Fund is exposed to off-balance sheet
market risk. Off-balance sheet market risk exists when the maximum potential
loss on a particular financial instrument is greater than the value of such
financial instrument, as reflected in the Statement of
PAGE 13
<Page>
SALOMON BROTHERS EMERGING MARKETS FLOATING RATE FUND INC.
- -----------------------------
Notes to Financial Statements (continued)
Assets and Liabilities. Additionally, the Fund is exposed to credit risk in the
event of non-performance by the swap counterparty.
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 such loans are in the form of
participations in the loans.
In connection with purchasing loan participations, the Fund generally will have
no right to enforce compliance by the borrower with the terms of the loan
agreement relating to the loan, nor any rights of set-off against the borrower,
and the Fund may not benefit directly from any collateral supporting the loan in
which it has purchased the participation. As a result, the Fund will assume the
credit risk of both the borrower and the lender that is selling the
participation. In the event of the insolvency of the lender selling the
participation, the Fund may be treated as a general creditor of the lender and
may not benefit from any set-off between the lender and the borrower. The Fund
may have difficulty disposing of participations because the market for such
instruments is not highly liquid.
At February 29, 2004, the Fund held loan participations with a total cost of
$2,653,434.
Note 6. Loan
At February 29, 2004, the Fund had $15,000,000 outstanding of an available
$20,000,000 loan pursuant to a revolving credit and security agreement with CXC
Inc., a commercial paper conduit issuer for which Citicorp North America Inc.,
another affiliate of SBAM, 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. For the year ended
February 29, 2004, the Fund paid interest expense of $360,200.
Note 7. Credit and Market Risk
The yields on 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, among others, overall
greater risk of untimely and ultimate non-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 investments held by the Fund. At
February 29, 2004, the Fund has a concentration of credit risk in sovereign debt
of emerging market countries.
PAGE 14
<Page>
SALOMON BROTHERS EMERGING MARKETS FLOATING RATE FUND INC.
- -----------------------------
Notes to Financial Statements (continued)
Note 8. Dividends Subsequent to February 29, 2004
On February 4, 2004, the Board of Directors of the Fund declared three dividends
from net investment income, each in the amount of $0.073 per share, payable on
March 26, 2004, April 30, 2004, and May 28, 2004 to shareholders of record on
March 16, 2004, April 20, 2004 and May 18, 2004, respectively.
Note 9. Capital Loss Carryforward
At February 29, 2004, the Fund had for Federal income tax purposes,
approximately $3,014,000 of capital loss carryforwards available to offset
future capital gains. To the extent that these carryforward losses are used to
offset capital gains, the gains so offset will not be distributed. However, if
current year distributions exceed the required distribution amount as defined
under the Internal Revenue Code of 1986, as amended, realized gains that have
been offset by the carryforward losses may be taxable to shareholders.
The amount and expiration of the carryforwards are indicated below. Expiration
occurs on the last day in February of the year indicated:
<Table>
<Caption>
2008 2011
---- ----
Carryforward Amounts........................................ $498,000 $2,516,000
</Table>
Note 10. Income Tax Information and Distributions to Shareholders
The tax basis components of distributable earnings at February 29, 2004 was:
<Table>
<Caption>
2004
----
Accumulated capital losses.................................. $(3,014,211)
-----------
-----------
Unrealized appreciation..................................... $ 3,046,266
-----------
-----------
</Table>
At February 29, 2004, the difference between book basis and tax basis unrealized
appreciation
and depreciation was attributable primarily to wash sales loss deferrals and the
treatment of amortization of premiums and accretion of discounts.
The tax character of distributions paid during the years ended February 29 and
February 28 were:
<Table>
<Caption>
2004 2003
---- ----
Ordinary income............................................. $4,501,258 $4,679,499
Capital..................................................... -- 60,548
---------- ----------
Total....................................................... $4,501,258 $4,740,047
---------- ----------
---------- ----------
</Table>
PAGE 15
<Page>
SALOMON BROTHERS EMERGING MARKETS FLOATING RATE FUND INC.
- -----------------------------
Notes to Financial Statements (continued)
11. 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 agreement 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.
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 16
<Page>
SALOMON BROTHERS EMERGING MARKETS FLOATING RATE FUND INC.
- --------------------
Financial Highlights
For a share of capital stock outstanding throughout each year ended
February 28, unless otherwise noted:
<Table>
<Caption>
2004(1) 2003(2) 2002(2) 2001 2000(3)
- ------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR....................... $11.23 $12.07 $11.84 $12.08 $10.21
------- ------- ------- ------- -------
INCOME (LOSS) FROM OPERATIONS:
Net investment income (4)............................... 1.01 1.24 1.32 1.48 1.57
Net realized and unrealized gain (loss) (4)............. 2.09 (0.98) 0.41 (0.13) 1.89
------- ------- ------- ------- -------
Total Income From Operations............................. 3.10 0.26 1.73 1.35 3.46
------- ------- ------- ------- -------
LESS DISTRIBUTIONS FROM:
Net investment income................................... (1.05) (1.09) (1.50) (1.59) (1.59)
Net realized gains...................................... -- -- -- -- --
Capital................................................. -- (0.01) -- -- --
------- ------- ------- ------- -------
Total Distributions...................................... (1.05) (1.10) (1.50) (1.59) (1.59)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF YEAR............................. $13.28 $11.23 $12.07 $11.84 $12.08
------- ------- ------- ------- -------
------- ------- ------- ------- -------
MARKET PRICE, END OF YEAR................................ $13.69 $11.30 $11.75 $12.85 $11.00
------- ------- ------- ------- -------
------- ------- ------- ------- -------
TOTAL RETURN,
BASED ON MARKET PRICE (5)............................... 31.55% 6.92% 3.94% 33.58% 3.74%
NET ASSETS, END OF YEAR (000S)........................... $57,143 $48,271 $51,768 $50,576 $51,405
RATIOS TO AVERAGE NET ASSETS:
Total expenses, including interest expense.............. 2.36% 2.65% 1.81% -- --
Total expenses, excluding interest expense
(operating expenses).................................. 1.70% 1.69% 1.54% 1.52% 1.51%
Net investment income (4)............................... 7.93% 11.64% 11.55% 12.48% 14.02%
PORTFOLIO TURNOVER RATE.................................. 87% 87% 142% 221% 172%
Loans Outstanding, End of Year (000s).................... $15,000 $15,000 $15,000 -- --
Weighted Average Loans (000s)............................ $15,000 $15,000 $14,566 -- --
Weighted Average Interest Rate on Loans.................. 2.40% 2.97% 3.51% -- --
- ------------------------------------------------------------------------------------------------------------
</Table>
(1) For the year ended February 29, 2004.
(2) Certain amounts have been reclassified among net investment income and net
realized gains in order to conform to current year presentation of swap
contracts. Without the effect of these reclassifications, the net investment
income for the years ended February 28, 2003 and February 28, 2002 would
have been $1.08 and $1.25, respectively. Net realized and unrealized gain
(loss) would have been $(0.82) and $0.48, respectively. In addition, the
ratio of net investment income to average net assets would have been 10.16%
and 10.95%, respectively. These reclassifications had no impact on the net
asset value of the Fund or the amount and character of distributions.
(3) For the year ended February 29, 2000.
(4) Effective March 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 February 28, 2002,
the change to net investment income, net realized and unrealized gain and
the ratio of net investment income to average net assets was less than
$0.01, $0.01 and 0.01%, respectively. Per share information, ratios and
supplemental data for the periods prior to March 1, 2001 have not been
restated to reflect this change in presentation.
(5) Total return is calculated assuming a purchase of common stock at the
current market price on the first day and a sale at the current market price
on the last day of each period reported. For purposes of this calculation,
dividends are assumed to be reinvested at prices obtained under the Fund's
dividend reinvestment plan and the broker commission paid to purchase or
sell a share is excluded.
PAGE 17
<Page>
SALOMON BROTHERS EMERGING MARKETS FLOATING RATE FUND INC.
- ------------------------------
Report of Independent Auditors
To the Board of Directors and Shareholders of
Salomon Brothers Emerging Markets Floating Rate Fund Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations, of
changes in net assets and of cash flows and the financial highlights present
fairly, in all material respects, the financial position of Salomon Brothers
Emerging Markets Floating Rate Fund Inc. (the 'Fund') at February 29, 2004, the
results of its operations and its cash flows for the year then ended, the
changes in its net assets for each of the two years in the period then ended and
the financial highlights for each of the five years in the period then ended, in
conformity with accounting principles generally accepted in the United States of
America. These financial statements and financial highlights (hereafter referred
to as 'financial statements') are the responsibility of the Fund's management;
our responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these financial statements in
accordance with auditing standards generally accepted in the United States of
America, which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at February 29, 2004 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.
PricewaterhouseCoopers LLP
New York, New York
April 19, 2004
PAGE 18
<Page>
SALOMON BROTHERS EMERGING MARKETS FLOATING RATE FUND INC.
- ----------------------
Additional Information (unaudited)
INFORMATION ABOUT DIRECTORS AND OFFICERS
The business and affairs of Salomon Brothers Emerging Markets Floating Rate Fund
Inc. ('Fund') are managed under the direction of the Board of Directors.
Information pertaining to the Directors and Officers of the Fund is set forth
below.
<Table>
<Caption>
NUMBER OF
PORTFOLIOS ADVISED
BY SBAM(2)
TERM OF PRINCIPAL AND OVERSEEN BY
POSITION(S) OFFICE(1) AND OCCUPATION(S) DIRECTOR OTHER
HELD WITH LENGTH OF DURING PAST (INCLUDING BOARD MEMBERSHIPS
NAME, ADDRESS AND AGE FUND(1) TIME SERVED FIVE YEARS THE FUND) HELD BY DIRECTOR
- -----------------------------------------------------------------------------------------------------------------------------------
NON-INTERESTED
DIRECTORS:
Carol L. Colman Director and Since President, Colman 35 None
Colman Consulting Co. Member of the 2002 Consulting Co.
278 Hawley Road Nominating and
North Salem, NY 10560 Audit Committees,
Age 58 Class III
Daniel P. Cronin Director and Since Associate General 32 None
Pfizer Inc. Member of the 2002 Counsel, Pfizer Inc.
235 East 42nd Street Nominating and
New York, NY 10017 Audit Committees,
Age 57 Class III
Leslie H. Gelb Director and Since President, Emeritus 32 Two registered
150 East 69th Street Member of the 1994 and Senior Board investment companies
New York, NY 10021 Nominating and Fellow, The Council advised by Advantage
Age 66 Audit Committees, on Foreign Advisers, Inc.
Class II Relations; formerly, ('Advantage')
Columnist, Deputy
Editorial Page
Editor and Editor,
Op-Ed Page, The New
York Times
William R. Hutchinson Director and Since President, W.R. 42 Associated
535 N. Michigan Member of the 2003 Hutchinson & Banc-Corp.
Suite 1012 Nominating Associates Inc.,
Chicago, IL 60611 and Audit formerly Group Vice
Age 61 Committees, President, Mergers
Class III and Acquisitions, BP
Amoco
Riordan Roett Director and Since Professor and 32 The Latin America
The Johns Hopkins University Member of the 1995 Director, Latin Equity Fund, Inc.
1740 Massachusetts Ave., NW Nominating and America Studies
Washington, DC 20036 Audit Committees, Program, Paul H.
Age 65 Class I Nitze School of
Advanced
International
Studies, The Johns
Hopkins University
Jeswald W. Salacuse Director and Since Henry J. Braker 32 Two registered
Tufts University Member of the 1994 Professor of investment companies
The Fletcher School of Nominating and Commercial Law and advised by Advantage
Law & Diplomacy Audit Committees, formerly Dean, The
160 Packard Avenue Class I Fletcher School of
Medford, MA 02155 Law and Diplomacy,
Age 66 Tufts University
</Table>
PAGE 19
<Page>
SALOMON BROTHERS EMERGING MARKETS FLOATING RATE FUND INC.
- ----------------------
Additional Information (unaudited) (continued)
<Table>
<Caption>
NUMBER OF
PORTFOLIOS ADVISED
BY SBAM(2)
TERM OF PRINCIPAL AND OVERSEEN BY
POSITION(S) OFFICE(1) AND OCCUPATION(S) DIRECTOR OTHER
HELD WITH LENGTH OF DURING PAST (INCLUDING BOARD MEMBERSHIPS
NAME, ADDRESS AND AGE FUND(1) TIME SERVED FIVE YEARS THE FUND) HELD BY DIRECTOR
- -----------------------------------------------------------------------------------------------------------------------------------
INTERESTED DIRECTORS:
R. Jay Gerken, CFA(3) Director, Since Managing Director of 221 None
Citigroup Asset Chairman and 2002 Citigroup Global
Management ('CAM') Chief Executive Markets Inc.
399 Park Avenue Officer, ('CGM'); Chairman,
4th Floor Class II President, Chief
New York, NY 10022 Executive Officer
Age 52 and Director of
Smith Barney Fund
Management LLC
('SBFM') Travelers
Investment Adviser,
Inc. ('TIA') and
Citi Fund Management
Inc. ('CFM');
President and Chief
Executive Officer of
certain mutual funds
associated with
Citigroup Inc.
('Citigroup');
Formerly Portfolio
Manager of Smith
Barney Allocation
Series Inc. (from
1996 to 2001) and
Smith Barney Growth
and Income Fund
(from 1996 to 2000)
OFFICERS:
Peter J. Wilby, CFA President Since Managing Director of N/A N/A
CAM 2002 CGM and Salomon
399 Park Avenue Brothers Asset
4th Floor Executive Vice 1994- Management Inc
New York, NY 10022 President 2002 ('SBAM')
Age 44
</Table>
PAGE 20
<Page>
SALOMON BROTHERS EMERGING MARKETS FLOATING RATE FUND INC.
- ----------------------
Additional Information (unaudited) (continued)
<Table>
<Caption>
NUMBER OF
PORTFOLIOS ADVISED
BY SBAM(2)
TERM OF PRINCIPAL AND OVERSEEN BY
POSITION(S) OFFICE(1) AND OCCUPATION(S) DIRECTOR OTHER
HELD WITH LENGTH OF DURING PAST (INCLUDING BOARD MEMBERSHIPS
NAME, ADDRESS AND AGE FUND(1) TIME SERVED FIVE YEARS THE FUND) HELD BY DIRECTOR
- -----------------------------------------------------------------------------------------------------------------------------------
Andrew B. Shoup Treasurer Since Director of CAM; N/A N/A
CAM 2004 Senior Vice
125 Broad Street President and Chief
11th Floor Senior Vice Since Administrative
New York, NY 10004 President and 2003 Officer of mutual
Age 47 Chief funds associated
Administrative with Citigroup;
Officer Treasurer of certain
mutual funds
associated with
Citigroup; Head of
International Funds
Administration of
CAM (from 2001 to
2003); Director of
Global Funds
Administration of
CAM from 2000 to
2001); Head of U.S.
Citibank Funds
Administration of
CAM (from 1998 to
2000)
James E. Craige, CFA Executive Vice Since Managing Director of N/A N/A
CAM President 1999 CGM and SBAM since
399 Park Avenue December 1998.
4th Floor Director of CGM and
New York, NY 10022 SBAM since January
Age 37 1998 and Vice
President of CGM and
SBAM since January
1996
Thomas K. Flanagan, CFA Executive Vice Since Managing Director of N/A N/A
CAM President 1994 CGM and SBAM since
399 Park Avenue December 1998. Prior
4th Floor to December 1998,
New York, NY 10022 Director of CGM and
Age 50 SBAM
Frances M. Guggino Controller Since Vice President of N/A N/A
CAM 2002 CGM; Controller of
125 Broad Street certain mutual funds
10th Floor associated with
New York, NY 10004 Citigroup
Age 45
</Table>
PAGE 21
<Page>
SALOMON BROTHERS EMERGING MARKETS FLOATING RATE FUND INC.
- ----------------------
Additional Information (unaudited) (continued)
<Table>
<Caption>
NUMBER OF
PORTFOLIOS ADVISED
BY SBAM(2)
TERM OF PRINCIPAL AND OVERSEEN BY
POSITION(S) OFFICE(1) AND OCCUPATION(S) DIRECTOR OTHER
HELD WITH LENGTH OF DURING PAST (INCLUDING BOARD MEMBERSHIPS
NAME, ADDRESS AND AGE FUND(1) TIME SERVED FIVE YEARS THE FUND) HELD BY DIRECTOR
- -----------------------------------------------------------------------------------------------------------------------------------
Robert I. Frenkel Secretary and Since Managing Director N/A N/A
CAM Chief Legal 2003 and General Counsel
300 First Stamford Place Officer of Global Mutual
4th Floor Funds for CAM and
Stamford, CT 06902 its predecessor
Age 48 (since 1994);
Secretary of CFM;
Secretary and Chief
Legal Officer of
mutual funds
associated with
Citigroup
</Table>
- ---------
(1) The Fund's Board of Directors is divided into three classes: Class I,
Class II and Class III. The terms of office of the Class I, II and III
Directors expire at the Annual Meeting of Stockholders in the year 2005,
year 2006 and year 2004, respectively, or thereafter in each case when their
respective successors are duly elected and qualified. The Fund's executive
officers are chosen each year at the first meeting of the Fund's Board of
Directors following the Annual Meeting of Stockholders, to hold office until
the meeting of the Board following the next Annual Meeting of Stockholders
and until their successors are duly elected and qualified.
(2) Number of portfolios advised by SBAM or affiliates of SBAM.
(3) Mr. Gerken in an 'interested person' of the Fund as defined in the
Investment Company Act of 1940, as amended, because Mr. Gerken is an officer
of SBFM and certain of its affiliates.
PAGE 22
<Page>
SALOMON BROTHERS EMERGING MARKETS FLOATING RATE FUND INC.
- --------------------------
Dividend Reinvestment Plan (unaudited)
1. Each shareholder initially purchasing shares of common stock ('Shares') of
Salomon Brothers Emerging Markets Floating Rate 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.
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
PAGE 23
<Page>
SALOMON BROTHERS EMERGING MARKETS FLOATING RATE FUND INC.
- --------------------------
Dividend Reinvestment Plan (unaudited) (continued)
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 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
PAGE 24
<Page>
SALOMON BROTHERS EMERGING MARKETS FLOATING RATE FUND INC.
- --------------------------
Dividend Reinvestment Plan (unaudited) (continued)
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 Plan, the
Agent will adjust for any such undivided fractional interest in cash at the
market value of the Fund's Shares at the time of termination less the pro rata
expense of any sale required to make such an adjustment.
11. Any share dividends or split shares distributed by the Fund on Shares held
by the Agent for Participants will be credited to their respective accounts. In
the event that the Fund makes available to Participants rights to purchase
additional Shares or other securities, the Shares held for Participants under
the Plan will be added to other Shares held by the Participants in calculating
the number of rights to be issued to Participants.
12. The Agent's service fee for handling capital gains distributions or income
dividends will be paid by the Fund. Participants will be charged a pro rata
share of brokerage commissions on all open-market purchases.
13. Participants may terminate their accounts under the Plan by notifying the
Agent in writing. Such termination will be effective immediately if notice is
received by the Agent not less than 10 days prior to any dividend or
distribution record date; otherwise such termination will be effective on the
first Trading Day after the payment date for such dividend or distribution with
respect to any subsequent dividend or distribution. The Plan may be amended or
terminated by the Fund as applied to any voluntary cash payments made and any
income dividend or capital gains distribution paid subsequent to written notice
of the change or termination sent to Participants at least 30 days prior to the
record date for the income dividend or capital gains distribution. The Plan may
be amended or terminated by the Agent, with the Fund's prior written consent, on
at least 30 days' written notice to Participants. Notwithstanding the preceding
two sentences, the Agent or the Fund may amend or supplement the Plan at any
time or times when necessary or appropriate to comply with applicable law or
rules or policies of the Securities and Exchange Commission or any other
regulatory authority. Upon any termination, the Agent will cause a 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. If the Participant elects by notice to the Agent in writing in advance
of such termination to have the Agent sell part or all of a Participant's Shares
and remit the proceeds to Participant, the Agent is authorized to deduct a
brokerage commission for this transaction from the proceeds.
PAGE 25
<Page>
SALOMON BROTHERS EMERGING MARKETS FLOATING RATE FUND INC.
- --------------------------
Dividend Reinvestment Plan (unaudited) (continued)
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.
-------------------
This report is transmitted to the shareholders of Salomon Brothers Emerging
Markets Floating Rate Fund Inc. 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 26
<Page>
SALOMON BROTHERS EMERGING MARKETS FLOATING RATE 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
FRANCES M. GUGGINO
Controller
ROBERT I. FRENKEL
Secretary and
Chief Legal Officer
- ---------------------------------
Salomon Brothers Emerging Markets
Floating Rate Fund Inc.
125 Broad Street
10th Floor, MF-2
New York, New York 10004
TELEPHONE
1-888-777-0102
INVESTMENT MANAGER
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
LEGAL COUNSEL
Simpson Thacher & Bartlett LLP
425 Lexington Avenue
New York, New York 10017
INDEPENDENT AUDITORS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
NEW YORK STOCK EXCHANGE SYMBOL
EFL
PAGE 27
<Page>
American Stock Transfer & Trust Company
59 Maiden Lane
New York, New York 10038
EFLANN 2/04
04-6448
Salomon Brothers
Emerging Markets
Floating Rate Fund Inc.
Annual Report
FEBRUARY 29, 2004
--------
SALOMON
--------
BROTHERS
--------
Asset Management
<Page>
ITEM 2. CODE OF ETHICS.
The registrant has adopted a code of ethics that applies to the
registrant's principal executive officer, principal financial officer,
principal accounting officer or controller.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Board of Directors of the registrant has determined that William R.
Hutchinson, the Chairman of the Board's Audit Committee, possesses the
technical attributes identified in Instruction 2(b) of Item 3 to Form
N-CSR to qualify as an "audit committee financial expert," and has
designated Mr. Hutchinson as the Audit Committee's financial expert.
Mr. Hutchinson is an "independent" Director pursuant to paragraph
(a)(2) of Item 3 to Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees for Salomon Brothers Emerging Markets Floating Rate Fund
Inc. were $53,000 and $53,000 for the years ended 2/28/04 and 2/28/03,
respectively.
(b) Audit-Related Fees for Salomon Brothers Emerging Markets Floating Rate
Fund Inc. of $0 and $8,500 for the years ended 2/28/04 and 2/28/03.
These amounts represent procedures performed and prepared for agreed
upon procedures letter in accordance with the terms of the
Supplementary Articles.
In addition, there were no Audit-Related Fees billed in the years ended
2/28/04 and 2/28/03 for assurance and related services by the
Accountant to the Registrant's investment adviser (not including any
sub-adviser whose role is primarily portfolio management and is
subcontracted with or overseen by another investment adviser), and any
entity controlling, controlled by or under common control with the
investment adviser that provides ongoing services to the Salomon
Brothers Emerging Markets Floating Rate Fund Inc. ("service
affiliates"), that were reasonably related to the performance of the
annual audit of the service affiliates. Accordingly, there were no such
fees that required pre-approval by the Audit Committee for the period
May 6, 2003 to December 31, 2003 (prior to May 6, 2003 services
provided by the Accountant were not required to be pre-approved).
(c) Tax Fees for Salomon Brothers Emerging Markets Floating Rate Fund Inc.
of $4,100 and $3,800 for the years ended 2/28/04 and 2/28/03. These
amounts represent aggregate fees paid for tax compliance, tax advice
and tax planning services, which include (the filing and amendment of
federal, state and local income tax returns, timely RIC qualification
review and tax distribution and analysis planning) rendered by the
Accountant to Salomon Brothers Emerging Markets Floating Rate Fund Inc.
There were no fees billed for tax services by the Accountants to
service affiliates for the period May 6, 2003 through December 31, 2003
that required pre-approval by the Audit Committee.
(d) There were no All Other Fees for Salomon Brothers Emerging Markets
Floating Rate Fund Inc. for the years ended 2/28/04 and 2/28/03.
All Other Fees. The aggregate fees billed for all other non-audit
services rendered by the Accountant to Salomon Brothers Asset
Management ("SBAM"), and any entity controlling, controlled by or
under common control with SBAM that provided ongoing services to
Salomon Brothers Emerging Markets Floating Rate Fund Inc., requiring
pre-approval by the Audit Committee for the period May 6, 2003 through
December 31, 2003, which included the issuance of reports on internal
control under SAS No. 70 relating to various Citigroup Asset Management
("CAM") entities, were $558,750; all of which were pre-approved by the
Audit Committee.
(e) (1) Audit Committee's pre-approval policies and procedures described in
paragraph (c) (7) of Rule 2-01 of Regulation S-X.
The Charter for the Audit Committee (the "Committee") of the Board of
each registered investment company (the "Fund") advised by Smith Barney
Fund Management LLC or Salomon Brothers Asset Management Inc. or one of
their affiliates (each, an "Adviser") requires that the Committee shall
approve (a) all audit and permissible non-audit services to be provided
to the Fund and (b) all permissible non-audit services to be provided
by the Fund's independent auditors to the Adviser and any Covered
Service Providers if the engagement relates directly to the operations
and financial reporting of the Fund. The Committee may implement
policies and procedures by which such services are approved other than
by the full Committee.
The Committee shall not approve non-audit services that the Committee
believes may impair the independence of the auditors. As of the date of
the approval of this Audit Committee Charter, permissible non-audit
services include any professional services (including tax services),
that are not prohibited services as described below, provided to the
Fund by the independent auditors, other than those provided to the Fund
in connection with an audit or a review of the financial statements of
the Fund. Permissible non-audit services may not include: (i)
bookkeeping or other services related to the accounting records or
financial statements of the Fund; (ii) financial information systems
design and implementation; (iii) appraisal or valuation services,
fairness opinions or contribution-in-kind reports; (iv) actuarial
services; (v) internal audit outsourcing services; (vi) management
functions or human resources; (vii) broker or dealer, investment
adviser or investment banking services; (viii) legal services and
expert services unrelated to the audit; and (ix) any other service the
Public Company Accounting Oversight Board determines, by regulation, is
impermissible.
Pre-approval by the Committee of any permissible non-audit services is
not required so long as: (i) the aggregate amount of all such
permissible non-audit services provided to the Fund, the Adviser and
any service providers controlling, controlled by or under
common control with the Adviser that provide ongoing services to the
Fund ("Covered Service Providers") constitutes not more than 5% of the
total amount of revenues paid to the independent auditors during the
fiscal year in which the permissible non-audit services are provided to
(a) the Fund, (b) the Adviser and (c) any entity controlling,
controlled by or under common control with the Adviser that provides
ongoing services to the Fund during the fiscal year in which the
services are provided that would have to be approved by the Committee;
(ii) the permissible non-audit services were not recognized by the Fund
at the time of the engagement to be non-audit services; and (iii) such
services are promptly brought to the attention of the Committee and
approved by the Committee (or its delegate(s)) prior to the completion
of the audit.
(f) N/A
(g) Non-audit fees billed by the Accountant for services rendered to
Salomon Brothers Emerging Markets Floating Rate Fund Inc. and CAM and
any entity controlling, controlled by, or under common control with CAM
that provides ongoing services to Salomon Brothers Emerging Markets
Floating Rate Fund Inc. were $18.3 million and $6.4 million for the
years ended 12/31/2003 and 12/31/2002.
(h) Yes. The Salomon Brothers Emerging Markets Floating Rate Fund Inc.'s
Audit Committee has considered whether the provision of non-audit
services that were rendered to Service Affiliates which were not
pre-approved (not requiring pre-approval) is compatible with
maintaining the Auditor's independence. All services provided by the
Accountant to the Salomon Brothers Emerging Markets Floating Rate Fund
Inc. or to Service Affiliates which were required to be pre-approved
were pre-approved as required.
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
<Page>
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
<Page>
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.
<Page>
(a) Code of Ethics attached hereto.
Exhibit 99.CODE ETH
(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 Emerging Markets Floating Rate Fund Inc.
By: /s/ R. Jay Gerken
R. Jay Gerken
Chief Executive Officer of
Salomon Brothers Emerging Markets Floating Rate Fund Inc.
Date: May 7, 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 Emerging Markets Floating Rate Fund Inc.
Date: May 7, 2004
By: /s/ Andrew B. Shoup
Andrew B. Shoup
Chief Administrative Officer of
Salomon Brothers Emerging Markets Floating Rate Fund Inc.
Date: May 7, 2004
STATEMENT OF DIFFERENCES
------------------------
The dagger symbol shall be expressed as................................. 'D'
The section symbol shall be expressed as................................ 'SS'