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 811-7740
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
(Exact name of registrant as specified in charter)
125 Broad Street, New York, NY 10004
(Address of principal executive offices) (Zip code)
Christina T. Sydor, 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) 725-6666
Date of fiscal year end: JULY 31
Date of reporting period: JULY 31, 2003
ITEM 1. REPORT TO STOCKHOLDERS.
The Annual Report to Stockholders is filed herewith.
[INSERT SHAREHOLDER REPORT]
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
LETTER FROM THE CHAIRMAN
[PHOTO]
R. JAY GERKEN, CFA
Chairman
DEAR SHAREHOLDER,
The philosopher Bertrand Russell famously remarked that, "Change is one thing,
progress is another." You will notice in the following pages that we have begun
to implement some changes to your shareholder report and we will be reflecting
other changes in future reports. Our aim is to make meaningful improvements in
reporting on the management of your Fund and its performance, not just to enact
change for change's sake. Please bear with us during this transition period.
We know that you have questions about fund managers' decisions and plans, and we
want to be sure that you have easy access to the information you need. Keeping
investors informed is, and always will be, one of my top priorities as Chairman
of your Fund. To that end, we encourage you to contact Investor Relations at
1-800-SALOMON. We have also included a separate Manager Commentary along with
this report, which we hope will give you a better understanding of your Fund and
its management.
As always, thank you for entrusting your assets to us. We look forward to
helping you continue to meet your financial goals. Please read on to learn more
about your Fund's performance and the Manager's strategy.
Sincerely,
/s/ R. JAY GERKEN
R. Jay Gerken, CFA
Chairman
August 19, 2003
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
MANAGER OVERVIEW
PERFORMANCE REVIEW
During the 12 months ended July 31, 2003, the Salomon Brothers 2008 Worldwide
Dollar Government Term Trust Inc. ("Fund") distributed dividends to shareholders
totaling $0.88 per share. The table below shows the 12-month total return based
on the Fund's July 31, 2003 net asset value ("NAV") per share and its New York
Stock Exchange ("NYSE") closing price.(i) PAST PERFORMANCE IS NOT INDICATIVE OF
FUTURE RESULTS.
Based on NAV, the Fund outperformed the average of its Lipper peer group of
global income closed-end funds, which returned 17.77% for the same period, and
the Fund ranked #1 out of six funds since the Fund's inception on August 26,
1993 within this Lipper group as of July 31, 2003.(1) The unmanaged Citigroup
Mortgage Securities Index(ii) returned 2.72% and the unmanaged J.P. Morgan
Emerging Markets Bond Index Plus ("EMBI+")(iii) returned 37.61% for the same
period.
<Table>
<Caption>
12-MONTH
PRICE PER SHARE TOTAL RETURN(iv)
- --------------- ----------------
$10.19 (NAV) 22.74%
$10.41 (NYSE) 11.10%
</Table>
EMERGING MARKETS DEBT OVERVIEW
The fiscal year ended July 31, 2003 was very strong for emerging markets debt as
this asset class posted a gain of 37.61%, as measured by the EMBI+. Despite high
volatility in global equity markets, military conflict in Iraq and uncertainty
surrounding several high-profile elections in some emerging market countries,
the markets started a rally in October. Sovereign spreads, a common gauge of
risk premium, have converged by 5.09% since the end of last September, and they
closed the fiscal year at 5.32% over U.S. Treasuries.
The 10-month rally in emerging markets debt came to a halt in mid-June due to
the sell-off in the U.S. Treasury market. The yield on the 10-year U.S. Treasury
increased from 3.11% on June 13th, the lowest level in more than 4 decades, to
4.41% on July 31st. This backup in yield translated into a negative return of
over 7% for the 10-year Treasury in July. As a result, the EMBI+ posted negative
monthly returns for the first time since last September. Negative returns in a
spread-tightening environment underscore the impact that weakness in the U.S.
Treasury market had on emerging markets debt.
(1) PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Lipper is a major
independent mutual-fund tracking organization. Rankings in the Lipper global
income closed-end funds category are based on average annual total returns
assuming reinvestment of dividends and capital gains, as of July 31, 2003.
Each fund is ranked within a universe of funds similar in portfolio
characteristics and capitalizations, as defined by Lipper, Inc. Rankings are
based on performance that does not include commissions. Results would have
been less favorable had commissions been included. The Fund's shares were
ranked 4 out of 7, 1 out of 7, and 1 out of 6 for the 1-year, 5-year and
since-inception date periods, respectively.
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
Despite this recent setback, overall market performance during the fiscal year
was strong and all countries in the EMBI+ posted gains. The returns were heavily
influenced by returns in Latin American countries as markets welcomed ambitious
political and economic reform programs introduced by the newly elected leaders
of Brazil and Ecuador. During the period, Brazil and Ecuador posted impressive
gains of 98.97% and 67.22%, respectively. The market rally was also supported by
higher oil prices, an important source of revenues for many oil-exporting
countries in the emerging markets.
INVESTMENT-GRADE MARKET REVIEW
While the markets for higher-rated fixed-income securities collectively
generated positive total returns over the 12 months ended July 31, 2003, they
vacillated due to changing tides of investor sentiment. Last summer corporate
integrity concerns and doubts about the strength of an economic recovery
prompted many investors to seek relative safety in higher-rated fixed-income
securities -- specifically U.S. Treasuries. In November, however, when the Fed
cut the federal funds rate(v) by half a percentage point and expectations rose
that the economy may improve in 2003, many investors shifted their money into
riskier assets to seek potentially higher returns. Concerns about the prospects
of war with Iraq subsequently intensified, North Korea joined Iraq as a headline
risk and unemployment levels remained high, during which time the Treasury
markets continued to fluctuate into early 2003.
After the major battles in Iraq subsided, yields proceeded to fall as a post-war
rebound in business activity failed to materialize. (Bond prices generally tend
to perform more favorably in environments of slow but steady economic growth
during which concerns about inflation and the prospects for rising interest
rates are less pronounced.)
Yields on shorter-term U.S. Treasuries again dropped prior to the Fed's meeting
in late June, as many market participants anticipated another rate reduction,
although the expectation of the size of a cut was split between either 0.50% or
0.25%. During its meeting the Fed reduced its target by 0.25% to 1.00% -- a
level not seen in over 4 decades. Paradoxically, Treasury yields rose in the
aftermath of the cut as the bond market, based on the Fed's post-meeting
statement, anticipated an improving economy and a lower chance of further
interest rate reductions.
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
Mortgage-backed securities underperformed comparable-maturity Treasuries during
the 12 months ended July 31st. However, due to a sell-off in the Treasury market
in July when both fixed-income classes retreated in price, mortgage-backed
securities scheduled to mature in the range of 15 years held up better than
longer-term Treasuries for the final month of the reporting period.(vi)
FUND PERFORMANCE
While the Fund's significant position in mortgage-backed securities held up on a
total return basis over the reporting period, its strong performance is
attributable primarily to its exposure to emerging markets debt. While
mortgage-backed securities, which comprise approximately 50% of the Fund,
returned 2.72% for the fiscal year (as measured by the Citigroup Mortgage
Securities Index), emerging markets debt posted an impressive gain (as reflected
by the 37.61% return of the EMBI+ for the same period).
The Fund's overweight positions in the Brazilian, Ecuadorian and Colombian debt
markets within the emerging markets debt component of the Fund positively
contributed to the Fund's performance over the period. The Fund's overweight
position in Brazil was a major contributor to the Fund's performance, both on an
absolute ("NAV") and relative basis to the EMBI+, as Brazil constitutes a large
percentage of the EMBI+ (approximately 21%).
Our decision to underweight Argentina hurt the Fund's relative performance to
the EMBI+ over the period. We are still not entirely convinced that the
Argentine government is fully committed to restructuring the country's debt.
Without such commitment we wouldn't consider changing our current position in
the securities of this country.
LOOKING FOR ADDITIONAL INFORMATION?
The Fund is traded under the symbol "SBG" and its closing market price is
available in most newspapers under the New York Stock Exchange listings. The
daily NAV is available online under symbol SSBGX. 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.
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 (ET), for the Fund's current NAV, market
price and other information regarding the Fund's portfolio holdings and
allocations.
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
Thank you for your investment in the Salomon Brothers 2008 Worldwide Dollar
Government Term Trust Inc. We appreciate that you have entrusted us to manage
your money and value our relationship with you.
Sincerely,
<Table>
/s/ PETER J. WILBY /s/ ROGER M. LAVAN /s/ THOMAS K. FLANAGAN
PETER J. WILBY, CFA ROGER M. LAVAN, CFA THOMAS K. FLANAGAN, CFA
President Executive Vice President Executive Vice President
</Table>
August 19, 2003
The information provided in this letter by the Manager 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 July 31, 2003 and are subject to
change. Please refer to pages 6 through 9 for a list and percentage breakdown of
the Fund's holdings.
(i) NAV is a price that reflects the value of the Fund's underlying portfolio.
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.
(ii) The Citigroup Mortgage Securities Index is the mortgage component of the
Citigroup Broad Investment-Grade Bond Index. It includes 30- and 15-year
GNMA, Fannie Mae and Freddie Mac pass-throughs, and Fannie Mae and Freddie
Mac balloon mortgages. Please note that an investor cannot invest directly
in an index.
(iii) The EMBI+ is a total return index that tracks the traded market for U.S.
dollar-denominated Brady and other similar sovereign restructured bonds
traded in the emerging markets. Please note that an investor cannot invest
directly in an index.
(iv) Total returns are based on changes in NAV or the market price,
respectively. Total returns assume the reinvestment of all dividends and/or
capital gains distributions in additional shares.
(v) The federal funds rate is the interest rate that banks with excess reserves
at a Federal Reserve district bank charge other banks that need overnight
loans. The federal funds rate often points to the direction of U.S. interest
rates.
(vi) Based upon the performance of the Merrill Lynch 15-Year Mortgage Index and
the Merrill Lynch 15+ Year Treasury Index for July 2003.
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
SCHEDULE OF INVESTMENTS
July 31, 2003
<Table>
<Caption>
FACE
AMOUNT SECURITY VALUE
- -----------------------------------------------------------------------------------------------
SOVEREIGN BONDS -- 35.7%
ARGENTINA -- 2.5%
$ 34,600,000 Republic of Argentina, Discount Bond, Series L-GL, 2.0625%
due 3/31/23 (a)(b)(c)..................................... $ 17,992,000
------------
BRAZIL -- 12.2%
Federal Republic of Brazil:
4,617,788 C Bond, 8.000% due 4/15/14 (b)............................ 3,988,614
2,565,000 DCB, Series L, 2.1875% due 4/15/12 (a)(b)................. 1,959,019
63,150,000 Discount Bond, Series Z-L, 2.125% due 4/15/24 (a)(b)...... 46,099,500
Global Bond:
725,000 11.250% due 7/26/07 (b)................................. 757,625
2,920,000 11.500% due 3/12/08 (b)................................. 3,022,200
875,000 12.000% due 4/15/10 (b)................................. 880,469
39,650,000 Par Bond, Series Z-L, 6.000% due 4/15/24 (a)(b)........... 29,341,000
------------
86,048,427
------------
BULGARIA -- 5.4%
39,050,000 Republic of Bulgaria, Discount Bond, Series A, 1.9375% due
7/28/24 (a)(b)............................................ 37,976,125
------------
COLOMBIA -- 1.0%
6,500,000 Republic of Colombia, Global Bond, 10.000% due 1/23/12
(b)....................................................... 6,938,750
------------
ECUADOR -- 2.6%
Republic of Ecuador:
11,000,000 12.000% due 11/15/12 (b).................................. 8,745,000
15,650,000 6.000% due 8/15/30 (a)(b)................................. 9,276,538
------------
18,021,538
------------
PANAMA -- 0.9%
6,200,000 Republic of Panama, Global Bond, 9.375% due 1/16/23 (b)..... 6,448,000
------------
PERU -- 0.8%
6,432,000 Republic of Peru, PDI Bond, 5.000% due 3/7/17 (a)(b)........ 5,475,240
------------
PHILIPPINES -- 3.9%
28,500,000 Republic of the Philippines, Series B, 6.500% due 12/1/17
(a)(b).................................................... 27,502,500
------------
POLAND -- 4.6%
Republic of Poland:
16,380,000 Par Bond, 3.750% due 10/27/24 (a)(b)...................... 14,496,300
19,000,000 Series RSTA, 4.500% due 10/27/24 (a)(b)................... 18,034,800
------------
32,531,100
------------
RUSSIA -- 1.1%
8,300,000 Russia, 5.000% due 3/31/30 (a)(b)........................... 7,449,250
------------
</Table>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 6
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
SCHEDULE OF INVESTMENTS (continued)
July 31, 2003
<Table>
<Caption>
FACE
AMOUNT SECURITY VALUE
- -----------------------------------------------------------------------------------------------
TURKEY -- 0.7%
$ 4,950,000 Republic of Turkey, Global Bond, 11.500% due 1/23/12 (b).... $ 5,172,750
------------
TOTAL SOVEREIGN BONDS (Cost -- $225,801,748)................ 251,555,680
------------
MORTGAGE-BACKED SECURITIES -- 51.9%
Federal Home Loan Mortgage Corporation (FHLMC):
24,000,000 6.000%, 30 Year (d)(e).................................... 24,270,000
Gold 7.000%:
568,959 20 Year, due 10/1/17 (b)................................ 600,589
30 Year:
71,583 Due 11/1/28........................................... 74,890
87,920 Due 7/1/29............................................ 91,969
191,589 Due 12/1/30........................................... 200,299
1,462,714 Due 10/1/31........................................... 1,529,190
713,217 Due 11/1/31 (b)....................................... 745,631
200,806 Due 3/1/32............................................ 210,288
259,386 Due 6/1/32............................................ 271,634
67,992 Due 7/1/32............................................ 71,202
623,610 Due 11/1/32........................................... 653,057
13,474,909 Series 2572, Class LI, 5.500% due 5/15/22 (PAC-1 I/O)
(REMIC)................................................. 1,543,641
Series 2591:
13,161,818 Class LI, 5.500% due 4/15/21 (PAC-1 I/O) (REMIC)........ 1,517,917
25,000,000 Class PI, 5.500% due 2/15/30 (PAC-1 I/O) (REMIC)........ 4,768,842
19,024,800 Series 2594, Class IO, 5.000% due 3/15/14 (PAC I/O)....... 2,928,082
Series 2617:
9,930,915 Class IB, 4.500% due 8/15/12 (PAC I/O).................. 1,359,294
11,875,999 Class TI, 4.500% due 6/15/09 (PAC I/O).................. 963,025
Federal National Mortgage Association (FNMA):
80,000,000 5.000%, 30 Year (d)(e).................................... 76,500,000
112,000,000 6.000%, 30 Year (d)(e).................................... 113,294,720
10,000,000 6.500%, 30 Year (d)(e).................................... 10,293,800
100,000,000 7.000%, 30 Year (d)(e).................................... 104,843,800
17,000,000 8.000%, 30 Year (d)(e).................................... 18,269,696
638,131 Trust 1998-63, Class IA, 6.000% due 10/25/23 (PAC I/O).... 3,144
8,130,814 Trust 2003-54, Class TI, 4.500% due 5/25/09 (I/O)......... 690,612
------------
TOTAL MORTGAGE-BACKED SECURITIES (Cost -- $361,965,554)..... 365,695,322
------------
</Table>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 7
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
SCHEDULE OF INVESTMENTS (continued)
July 31, 2003
<Table>
<Caption>
FACE
AMOUNT SECURITY VALUE
- -----------------------------------------------------------------------------------------------
ZERO COUPON MUNICIPAL BONDS (b) -- 4.4%
$ 11,200,000 Austin, Texas Utility System Revenue, Series A,
MBIA-Insured, due 11/15/08................................ $ 9,358,720
Edinburg, TX Consolidated Independent School District:
1,845,000 Due 2/15/08............................................... 1,589,228
2,705,000 Due 2/15/09............................................... 2,204,061
5,470,000 Harris County, TX, due 8/15/08.............................. 4,621,330
10,535,000 Texas State Public Finance Authority, Building Revenue, due
2/1/08.................................................... 9,105,506
Westmoreland County, PA, Series G:
2,665,000 Due 6/1/08................................................ 2,292,007
2,515,000 Due 12/1/08............................................... 2,118,359
------------
TOTAL ZERO COUPON MUNICIPAL BONDS (Cost -- $28,156,807)..... 31,289,211
------------
<Caption>
RIGHTS
- ------------
RIGHTS (f) -- 0.1%
215,766,000 Mexican Rights.............................................. 441,788
390,650 Venezuela Rights............................................ 0
------------
TOTAL RIGHTS (Cost -- $0)................................... 441,788
------------
<Caption>
FACE
AMOUNT
- ------------
COMMERCIAL PAPER (b) -- 3.0%
$ 9,100,000 Four Winds Funding Corp., yield 1.230% due 8/1/03........... 9,100,000
2,800,000 Rabobank Nederland, yield 1.080% due 8/1/03................. 2,800,000
9,100,000 Saint Germain Holdings LTD, yield 1.120% due 8/1/03......... 9,100,000
------------
TOTAL COMMERCIAL PAPER (Cost -- $21,000,000)................ 21,000,000
------------
</Table>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 8
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
SCHEDULE OF INVESTMENTS (continued)
July 31, 2003
<Table>
<Caption>
FACE
AMOUNT SECURITY VALUE
- -----------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS (B) -- 4.9%
$ 9,100,000 Greenwich Capital Markets Inc., 1.000% due 8/1/03; Proceeds
at maturity -- $9,100,253; (Fully collateralized by U.S.
Treasury Bonds,
8.125% due 8/15/19; Market value -- $9,286,650)........... $ 9,100,000
7,293,000 J.P. Morgan Chase & Co., 0.970% due 8/1/03; Proceeds at
maturity -- $7,293,197; (Fully collateralized by U.S.
Treasury Bonds,
5.875% due 11/15/04; Market value -- $7,438,829).......... 7,293,000
9,100,000 State Street Bank and Trust Co., 0.990% due 8/1/03; Proceeds
at maturity -- $9,100,250; (Fully collateralized by U.S.
Treasury Bonds,
5.500% due 8/15/28; Market value -- $9,286,610)........... 9,100,000
9,100,000 UBS Financial Services Inc., 1.040% due 8/1/03; Proceeds at
maturity -- $9,100,263; (Fully collateralized by U.S.
Treasury Bonds,
8.875% due 2/15/19; Market value -- $9,282,010)........... 9,100,000
------------
TOTAL REPURCHASE AGREEMENTS (Cost -- $34,593,000)........... 34,593,000
------------
TOTAL INVESTMENTS -- 100.0% (Cost -- $671,517,109*)......... $704,575,001
============
</Table>
- --------------------------------------------------------------------------------
(a) Rate shown reflects current rate on variable rate instrument or instrument
with step coupon rates.
(b) Segregated as collateral for to-be-announced ("TBA") securities.
(c) Security is currently in default.
(d) Security acquired under mortgage dollar roll agreement (See Note 4).
(e) Security is issued on a TBA basis (See Note 5).
(f) Non-income producing security.
* Aggregate cost for Federal income tax purposes is substantially the same.
Abbreviations used in this schedule:
PAC I/O -- Planned Amortization Class -- Interest Only
PDI -- Past Due Interest
REMIC -- Real Estate Mortgage Investment Conduit
RSTA -- Revolving Short-Term Agreement
TBA -- To-Be-Announced
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 9
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES
July 31, 2003
<Table>
ASSETS:
Investments, at value (Cost -- $671,517,109).............. $704,575,001
Interest receivable....................................... 4,296,486
Prepaid expense........................................... 14,967
------------
TOTAL ASSETS.............................................. 708,886,454
------------
LIABILITIES:
Payable for securities purchased.......................... 356,690,823
Investment advisory fee payable........................... 187,017
Administration fee payable................................ 44,270
Bank overdraft............................................ 5,310
Accrued expenses.......................................... 207,438
------------
TOTAL LIABILITIES......................................... 357,134,858
------------
TOTAL NET ASSETS............................................ $351,751,596
============
NET ASSETS:
Common stock ($0.001 par value, 200,000,000 shares
authorized; 34,510,639 shares outstanding).............. $ 34,511
Capital paid in excess of par value....................... 318,104,655
Undistributed net investment income....................... 7,270,234
Accumulated net realized loss from investment
transactions............................................ (6,715,696)
Net unrealized appreciation of investments................ 33,057,892
------------
TOTAL NET ASSETS............................................ $351,751,596
============
NET ASSET VALUE, PER SHARE ($351,751,596 / 34,510,639
shares)................................................... $10.19
============
</Table>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 10
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
STATEMENT OF OPERATIONS
For the Year Ended July 31, 2003
<Table>
INCOME:
Interest.................................................. $ 27,822,018
------------
EXPENSES:
Investment advisory fee (Note 2).......................... 2,075,780
Administration fee (Note 2)............................... 494,955
Custody................................................... 138,740
Shareholder communications................................ 72,551
Audit and tax services.................................... 62,819
Legal fees................................................ 59,181
Directors' fees........................................... 52,109
Shareholder servicing fees................................ 45,985
Listing fees.............................................. 28,324
Insurance fees............................................ 12,654
Other..................................................... 13,665
------------
TOTAL EXPENSES............................................ 3,056,763
------------
NET INVESTMENT INCOME....................................... 24,765,255
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 3):
Realized Gain From Investment Transactions (excluding
short-term investments):
Proceeds from sales..................................... 145,265,476
Cost of securities sold................................. 135,909,433
------------
NET REALIZED GAIN......................................... 9,356,043
------------
Change in Net Unrealized Appreciation (Depreciation) of
Investments:
Beginning of year....................................... (1,980,486)
End of year............................................. 33,057,892
------------
INCREASE IN NET UNREALIZED APPRECIATION................... 35,038,378
------------
NET GAIN ON INVESTMENTS..................................... 44,394,421
------------
INCREASE IN NET ASSETS FROM OPERATIONS...................... $ 69,159,676
============
</Table>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 11
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended July 31,
<Table>
<Caption>
2003 2002
- ------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income..................................... $ 24,765,255 $ 31,290,436
Net realized gain......................................... 9,356,043 4,638,724
Increase (decrease) in net unrealized appreciation........ 35,038,378 (17,802,835)
------------ ------------
INCREASE IN NET ASSETS FROM OPERATIONS.................... 69,159,676 18,126,325
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income..................................... (30,231,323) (34,935,120)
------------ ------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO
SHAREHOLDERS............................................ (30,231,323) (34,935,120)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS........................... 38,928,353 (16,808,795)
NET ASSETS:
Beginning of year......................................... 312,823,243 329,632,038
------------ ------------
END OF YEAR*.............................................. $351,751,596 $312,823,243
============ ============
* Includes undistributed net investment income of:.......... $7,270,234 $7,270,234
============ ============
</Table>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 12
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
STATEMENT OF CASH FLOWS
For the Year Ended July 31, 2003
<Table>
CASH FLOWS PROVIDED (USED) BY OPERATING AND INVESTING
ACTIVITIES:
Interest received......................................... $ 26,309,801
Operating expenses paid................................... (3,269,178)
Net sales of short-term investments....................... 19,251,000
Net purchases of long-term investments.................... (163,762,843)
Proceeds from disposition of long-term investments........ 145,265,476
-------------
NET CASH PROVIDED BY OPERATING AND INVESTING ACTIVITIES... 23,794,256
-------------
CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES:
Cash dividends paid on Common Stock....................... (30,231,323)
Net receipt from dollar roll transactions................. 6,429,055
-------------
NET CASH USED BY FINANCING ACTIVITIES..................... (23,802,268)
-------------
NET DECREASE IN CASH........................................ (8,012)
Cash, Beginning of year..................................... 2,702
-------------
BANK OVERDRAFT, END OF YEAR................................. $ (5,310)
=============
</Table>
<Table>
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.................... $ 69,159,676
-------------
Accretion of discount on securities....................... (3,969,384)
Amortization of premium on investments.................... 190,611
Increase in investments, at value......................... (92,993,163)
Decrease in interest receivable........................... 877,899
Increase in prepaid expenses.............................. (3,175)
Increase in payable for securities purchased.............. 50,741,032
Decrease in accrued expenses.............................. (209,240)
-------------
TOTAL ADJUSTMENTS......................................... (45,365,420)
-------------
NET CASH FLOWS PROVIDED BY OPERATING AND INVESTING
ACTIVITIES.............................................. $ 23,794,256
=============
</Table>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 13
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Salomon Brothers 2008 Worldwide Dollar Government Term Trust Inc. ("Fund")
was incorporated in Maryland on May 24, 1993 and is registered as a
non-diversified, closed-end, management investment company under the Investment
Company Act of 1940, as amended. The Fund commenced operations on August 27,
1993. The investment objective of the Fund is to manage a portfolio of
fixed-income securities so as to return $10 per share to investors on or about
November 30, 2008 while providing high monthly income. No assurance can be given
that the Fund's investment objective will be achieved.
The Fund will seek to achieve its investment objective by investing
substantially all (at least 90%) of its assets, under normal conditions, in
securities issued or guaranteed by the U.S. government, its agencies or
instrumentalities, securities issued or guaranteed by foreign governments
(sovereign bonds) and collateralized in full as to principal due at their
maturity by U.S. government securities, and zero-coupon obligations of municipal
issuers. The market prices of the securities in which the Fund invests are
expected to fluctuate with changes in interest rates and the perceived credit
quality of such assets. The Fund's investments in sovereign bonds may be
affected by political, social, economic or diplomatic changes in such countries
and the Fund's investment in such securities increases the risk that the Fund
will return less than $10 per share in the year 2008. At July 31, 2003, a
significant portion of the Fund's investments is in sovereign debt of emerging
market countries. In addition, the Fund's investment in mortgage-backed
securities is subject to the risk that rapid principal repayment, including
prepayment, may have an adverse effect on the yield to maturity of such
securities.
The following is a summary of significant accounting policies consistently
followed by the 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
amounts could 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 was 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 was 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.
PAGE 14
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
NOTES TO FINANCIAL STATEMENTS (continued)
However, when the spread between bid and asked price exceeds five percent of the
par value of the security, the security is valued at the bid price. The Fund
values mortgage-backed and asset-backed securities and other debt securities on
the basis of current market quotations provided by dealers or independent
pricing services which use prices provided by market-makers or estimates of
market values obtained from yield data relating to instruments or securities
with similar characteristics.
Short-term investments having a maturity of 60 days or less are valued at
amortized cost, which approximates market value. Securities for which reliable
quotations are not readily available are valued at fair value as determined in
good faith by, or under procedures established by, the Board of Directors.
(b) INVESTMENT TRANSACTIONS. Investment transactions are recorded on the trade
date. Realized gains and losses are calculated on the identified cost basis.
Interest income is recorded on the accrual basis and the Fund accretes discount
or amortizes premium on securities purchased using the effective interest
method.
(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 sufficient
taxable income to shareholders. Therefore, no federal income tax provision is
required.
(d) 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 annually. Dividends and distributions to
shareholders are recorded on the ex-dividend date. The amount of dividends and
distributions from net investment income and net realized gains are determined
in accordance with federal income tax regulations, which may differ from GAAP.
To the extent these differences are permanent in nature, such amounts are
reclassified within the components of net assets. The Fund currently intends to
retain, until the final liquidating distribution, income in an amount
approximately equal to the tax-exempt income accrued on the zero-coupon
obligations of municipal issuers in which it invests but in no event greater
than 10% of the Fund's net investment income per year.
(e) REPURCHASE AGREEMENTS. The Fund purchases, and the custodian takes
possession of, U.S. government securities from securities dealers subject to
agreements to resell the securities to the sellers at a future date (generally,
the next business day) at an agreed-upon higher repurchase price. The Fund
requires continual maintenance of the market value (plus accrued interest) of
the collateral in amounts equal to the repurchase price.
PAGE 15
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
NOTES TO FINANCIAL STATEMENTS (continued)
(f) CASH FLOW INFORMATION. The Fund invests in securities and distributes net
investment income and net realized gains which are paid in cash and may be
reinvested at the discretion of shareholders. These activities are reported in
the Statement of Changes in Net Assets and additional information on cash
receipts and cash payments is presented in the Statement of Cash Flows.
Accounting practices that do not affect reporting activities on a cash basis
include carrying investments at value and amortizing premium or accreting
discount on debt obligations.
(g) YEAR END TAX RECLASSIFICATIONS. The character of income and gains to be
distributed are determined in accordance with income tax regulations which may
differ from GAAP. At July 31, 2003, reclassifications were made to the capital
accounts of the Fund to reflect permanent book/tax differences and income and
gains available for distributions under income tax regulations. Accordingly,
overdistributed net investment income amounting to $5,428,708 was reclassified
to paid-in capital. Net investment income, net realized loss and net assets were
not affected by this change.
NOTE 2. INVESTMENT ADVISORY AGREEMENT, ADMINISTRATION AGREEMENT AND OTHER
TRANSACTIONS
The Fund has an Investment Advisory Agreement with Salomon Brothers Asset
Management Inc ("Adviser"), an indirect wholly-owned subsidiary of Citigroup
Inc. ("Citigroup"), pursuant to which the Adviser acts as the Fund's investment
adviser and is responsible for the management of the Fund's portfolio in
accordance with the Fund's investment objectives and policies and for making
decisions to buy, sell, or hold particular securities.
The Fund pays the Adviser a monthly fee for its advisory services at an annual
rate of 0.60% of the value of the Fund's average weekly net assets. Pursuant to
an Administration Agreement and a Sub-Administration Agreement dated September
1, 1995, the Adviser serves as Administrator and Prudential Investments LLC as
Sub-administrator ("Sub-administrator"). Under these agreements, the Fund pays
the Administrator a monthly fee at an annual rate of 0.15% of the value of the
Fund's average weekly net assets up to $250 million and 0.125% of the value of
such net assets in excess of $250 million for its services, out of which the
Administrator pays the Sub-administrator 80% of such fees collected for its
services.
Certain officers and/or Directors of the Fund are also officers and/or Directors
of Citigroup.
PAGE 16
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE 3. PORTFOLIO ACTIVITY AND FEDERAL INCOME TAX STATUS
During the year ended July 31, 2003, the aggregate cost of purchases and
proceeds from sales of investments (including principal paydowns, but excluding
short-term investments) were as follows:
<Table>
Purchases................................................... $154,002,899
============
Sales....................................................... $145,265,476
============
</Table>
At July 31, 2003, the aggregate gross unrealized appreciation and depreciation
of investments for Federal income tax purposes were substantially as follows:
<Table>
Gross unrealized appreciation............................... $ 48,254,602
Gross unrealized depreciation............................... (15,196,710)
------------
Net unrealized appreciation................................. $ 33,057,892
============
</Table>
NOTE 4. BORROWINGS
MORTGAGE DOLLAR ROLLS. The Fund enters into dollar rolls in which the Fund
sells mortgage-backed securities for delivery in the current month and
simultaneously contracts to repurchase substantially similar (same type, coupon
and maturity) securities to settle on a specified future date. During the roll
period, the Fund forgoes principal and interest paid on the securities. The Fund
is compensated by a fee paid by the counterparty. Dollar rolls are accounted for
as financing arrangements; the fee is accrued into interest income ratably over
the term of the dollar roll and any gain or loss on the roll is deferred and
realized upon disposition of the rolled security. Dollar roll transactions
involve the risk that the market value of the securities sold by the Fund may
decline below the repurchase price of the similar securities.
At July 31, 2003, the Fund had outstanding net contracts to repurchase
mortgage-backed securities of $356,690,823 for a scheduled settlement of August
13, 2003. The average monthly balance of dollar rolls outstanding during the
year ended July 31, 2003 was $290,241,087. Counterparties with dollar rolls
outstanding in excess of 10% of net assets at July 31, 2003 included J.P. Morgan
Chase & Co. ($184,648,844), Lehman Brothers Inc. ($92,886,510) and First Union
National Bank ($52,798,307).
NOTE 5. SECURITIES TRADED ON A TO-BE-ANNOUNCED BASIS
The Fund trades securities on a to-be-announced ("TBA") basis, primarily in
connection with its dollar roll activity. In a TBA transaction, the Fund commits
to purchasing or selling
PAGE 17
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
NOTES TO FINANCIAL STATEMENTS (continued)
securities which have not yet been issued by the issuer. Securities purchased on
a TBA basis are not settled until they are delivered to the Fund, normally 15 to
45 days later. Beginning on the date the Fund enters into a TBA transaction,
securities are segregated in the amount of the TBA transaction. These
transactions are subject to market fluctuations and their current value is
determined in the same manner as for other securities.
At July 31, 2003, the Fund held TBA securities with a total cost of
$345,263,748.
NOTE 6. EVENTS SUBSEQUENT TO JULY 31, 2003
Subsequent to July 31, 2003, the Board of Directors of the Fund declared
dividends of $0.073 per common share payable August 29, 2003, September 26,
2003, October 31, 2003 and November 28, 2003 to shareholders of record on August
12, 2003, September 16, 2003, October 15, 2003 and November 18, 2003,
respectively.
NOTE 7. CAPITAL LOSS CARRYFORWARD
At July 31, 2003, the Fund had, for Federal income tax purposes, approximately
$6,716,000 of unused capital loss carryforwards available to offset future
capital gains. To the extent that these carryforward losses are used to offset
capital gains, it is probable that the gains so offset will not be distributed.
The amount and expiration of the carryforwards are indicated below. Expiration
occurs on the last day in July of the year indicated:
<Table>
<Caption>
2008 2010
---- ----
Carryforward Amounts........................................ $6,049,000 $667,000
</Table>
NOTE 8. INCOME TAX INFORMATION AND DISTRIBUTIONS TO SHAREHOLDERS
At July 31, 2003, the tax basis components of distributable earnings were:
<Table>
Accumulated capital losses.................................. $(6,715,696)
===========
Unrealized appreciation..................................... $33,057,892
===========
</Table>
The difference between book basis and tax basis undistributed ordinary income is
attributable primarily to accumulated earnings and profits.
The tax character of distributions paid during the year ended July 31, 2003 was:
<Table>
Ordinary income............................................. $30,231,323
===========
</Table>
PAGE 18
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
FINANCIAL HIGHLIGHTS
DATA FOR A SHARE OF COMMON STOCK OUTSTANDING THROUGHOUT EACH YEAR ENDED JULY 31,
UNLESS OTHERWISE NOTED:
<Table>
<Caption>
2003 2002 2001 2000 1999(1)
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR.......................... $ 9.06 $ 9.55 $9.75 $8.82 $10.51
------- ------ ------ ------ -------
INCOME (LOSS) FROM OPERATIONS:
Net investment income..................................... 0.72 0.91 1.07 0.95 0.96
Net realized and unrealized gain (loss)................... 1.29 (0.39) (0.28) 0.92 (1.77)
------- ------ ------ ------ -------
Total Income (Loss) From Operations......................... 2.01 0.52 0.79 1.87 (0.81)
------- ------ ------ ------ -------
LESS DISTRIBUTIONS FROM:
Net investment income..................................... (0.88) (1.01) (0.99) (0.94) (0.88)
------- ------ ------ ------ -------
NET ASSET VALUE, END OF YEAR................................ $10.19 $ 9.06 $9.55 $9.75 $ 8.82
======= ====== ====== ====== =======
MARKET PRICE, END OF YEAR................................... $ 10.41 $10.18 $9.80 $9.00 $9.4375
======= ====== ====== ====== =======
TOTAL RETURN(2)............................................. 11.10% 14.66% 20.64% 6.40% 7.08%
RATIOS TO AVERAGE NET ASSETS:
Expenses.................................................. 0.89% 0.85% 0.84% 0.86% 0.87%
Net investment income..................................... 7.17% 9.44% 10.96% 10.15% 10.34%
SUPPLEMENTAL DATA:
Net assets, end of year (millions)........................ $352 $313 $330 $336 $304
Average net assets (millions)............................. $345 $331 $337 $322 $321
Portfolio turnover rate................................... 24% 23% 15% 6% 37%
Asset coverage to mortgage dollar rolls outstanding,
end of year............................................. 199%* 230%* 220%* 261%* 262%*
Total mortgage dollar rolls outstanding,
end of year (millions).................................. $357 $240 $275 $208 $188
</Table>
- --------------------------------------------------------------------------------
<Table>
(1) For the year ended July 30, 1999.
(2) Total investment return is calculated assuming a purchase of
common stock at the current market price on the first day
and a sale at the current market price on the last day of
each year reported. For purposes of this calculation,
dividends are assumed to be reinvested at prices obtained
under the Fund's dividend reinvestment plan and the broker
commission paid to purchase or sell a share is excluded.
* Securities have been segregated to cover all outstanding
mortgage dollar rolls.
</Table>
PAGE 19
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
REPORT OF INDEPENDENT AUDITORS
To the Board of Directors and Shareholders of
Salomon Brothers 2008 Worldwide Dollar
Government Term Trust Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations, of cash
flows and of changes in net assets and the financial highlights present fairly,
in all material respects, the financial position of Salomon Brothers 2008
Worldwide Dollar Government Term Trust Inc. (the "Fund") at July 31, 2003, 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 July 31, 2003 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York
September 22, 2003
PAGE 20
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
ADDITIONAL INFORMATION (unaudited)
RESULTS OF ANNUAL MEETING OF STOCKHOLDERS
The Fund held its Annual Meeting of Stockholders on November 21, 2002 for the
purpose of voting upon the election of Carol L. Colman as a Class III Director
of the Fund, to serve until the 2003 Annual Meeting of Stockholders, and the
election of Leslie H. Gelb and R. Jay Gerken as Class II Directors of the Fund,
to serve until the 2005 Annual Meeting of Stockholders. The following table
provides information concerning the matter voted upon at the meeting.
1. ELECTION OF DIRECTORS
<Table>
<Caption>
NOMINEE VOTES FOR VOTES AGAINST
------- --------- -------------
Carol L. Colman 32,529,156 294,647
Leslie H. Gelb 32,524,917 298,887
R. Jay Gerken 32,526,676 297,128
</Table>
At July 31, 2003, in addition to Ms. Colman and Messrs. Gelb and Gerken, the
other Directors of the Fund were as follows:
Daniel P. Cronin
Riordan Roett
Jeswald W. Salacuse
Effective August 1, 2003, the Board of Directors elected William R. Hutchinson a
member of the Board of Directors. The Board of Directors has also appointed Mr.
Hutchinson a member of the Fund's Nominating Committee and chair of the Fund's
Audit Committee.
CHANGE IN NON-FUNDAMENTAL INVESTMENT POLICY
Effective July 22, 2003, the Fund's Board of Directors approved a change to a
non-fundamental investment policy that eliminated the Fund's requirement to
invest at least 40% of its net assets in collateralized Brady bonds. The Fund
will continue to invest in collateralized Brady bonds to the extent that the
portfolio managers deem advisable, but the 40% minimum requirement is no longer
in place. The Fund's investment objective and other investment policies remain
unchanged.
PAGE 21
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
ADDITIONAL INFORMATION (unaudited) (continued)
INFORMATION ABOUT DIRECTORS AND OFFICERS
The business and affairs of Salomon Brothers 2008 Worldwide Dollar Government
Term Trust 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 IN
FUND COMPLEX
TERM OF PRINCIPAL OVERSEEN BY
POSITION(S) OFFICE AND OCCUPATION(S) DIRECTOR OTHER
HELD WITH LENGTH OF DURING PAST (INCLUDING DIRECTORSHIPS
NAME, ADDRESS AND AGE FUND(1) TIME SERVED(1) 5 YEARS THE FUND) HELD BY DIRECTOR
- -------------------------------------------------------------------------------------------------------------------------
NON-INTERESTED
DIRECTORS:
Carol L. Colman Director and Since Consultant, Colman 32 None
Colman Consulting Co., Inc. Member of the 2002 Consulting
278 Hawley Road Audit
North Salem, NY 10560 Committee,
Age 57 Class III
Daniel P. Cronin Director and Since Associate General 29 None
Pfizer Inc. Member of the 1993 Counsel, Pfizer
235 East 42nd Street Audit Inc.
New York, NY 10017 Committee,
Age 57 Class III
Leslie H. Gelb Director and Since President Emeritus 29 Britannica.com;
The Council on Member of the 2001 and Senior Board Director of 2
Foreign Relations Audit Fellow, the Council registered
58 East 68th Street Committee, on Foreign Relations; investment companies
New York, NY 10021 Class II formerly, Editorial advised by Advantage
Age 65 Page Editor and
Editor, Op-Ed Page,
The New York Times
William R. Hutchinson Director and Since President, W R. 36 Associated Bank and
535 N. Michigan Member of the 2003 Hutchinson & Associated Banc-
Suite 1012 Audit Associates Inc.; Corp
Chicago, IL 60611 Committee, formerly Group Vice
Age 60 Class II President, Mergers
and Acquisitions,
BP Amoco
Riordan Roett Director and Since Professor and 29 The Latin American
The Johns Hopkins University Member of the 1995 Director, Latin Equity Fund, Inc.
1710 Massachusetts Ave, NW Audit American Studies
Washington, DC 20036 Committee, Program, Paul H.
Age 64 Class I Nitze School of
Advanced International
Studies, The Johns
Hopkins University
Jeswald W. Salacuse Director and Since Henry J. Braker 29 Municipal Advantage
Tufts University Member of the 1993 Professor of Fund Inc.; Director
The Fletcher School of Law Audit Commercial Law and of 2 registered
& Diplomacy Committee, formerly Dean, The investment companies
Packard Avenue Class I Flecher School of advised by Advantage
Medford, MA 02155 Law & Diplomacy,
Age 65 Tufts University
</Table>
PAGE 22
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
ADDITIONAL INFORMATION (unaudited) (continued)
<Table>
<Caption>
NUMBER OF
PORTFOLIOS IN
FUND COMPLEX
TERM OF PRINCIPAL OVERSEEN BY
POSITION(S) OFFICE AND OCCUPATION(S) DIRECTOR OTHER
HELD WITH LENGTH OF DURING PAST (INCLUDING DIRECTORSHIPS
NAME, ADDRESS AND AGE TRUST(1) TIME SERVED(1) 5 YEARS THE FUND) HELD BY DIRECTOR
- -------------------------------------------------------------------------------------------------------------------------
INTERESTED
DIRECTOR:
R. Jay Gerken(2) Director and Since 2002 Managing Director 219 None
CGM Chairman, of Citigroup Global
399 Park Avenue Class III Markets Inc.
4th Floor ("CGM"); Chairman,
New York, NY 10022 President, Chief
Age 52 Executive Officer
and Director of
Smith Barney Fund
Management LLC
("SBFM"), Travelers
Investment Adviser,
Inc. ("TIA") and
Citi Fund
Management Inc.
("CFM")
OFFICERS:
Peter J. Wilby, CFA President Since Managing Director N/A N/A
CGM 2002 of CGM and Salomon
399 Park Avenue Brothers Asset
4th Floor Executive Vice 1993- Management Inc
New York, NY 10022 President 2002 ("SBAM") since
Age 44 January 1996
Lewis E. Daidone Executive Vice Since Managing Director N/A N/A
CGM President and 2002 of CGM; Director
125 Broad Street Chief and Senior Vice
11th Floor Administrative President of SBFM,
New York, NY 10004 Officer TIA; Director of
Age 45 CFM; Former Chief
Executive Vice 1998- 2002 Financial Officer
President and and Treasurer of
Treasurer mutual funds
affiliated with
Citigroup Inc.
</Table>
<Table>
James E. Craige, CFA Executive Vice Since Managing Director N/A N/A
CGM President 1996 of CGM and SBAM
399 Park Avenue since December
4th Floor 1998.
New York, NY 10022 Director of CGM and
Age 36 SBAM since January
1998 and Vice
President of CGM
and SBAM from May
1992 to January
1998
Thomas K. Flanagan, CFA Executive Vice Since Managing Director N/A N/A
CGM President 1994 of CGM and SBAM
399 Park Avenue since December
4th Floor 1998;
New York, NY 10022 Prior to December
Age 50 1998, Director of
SSB and SBAM
</Table>
PAGE 23
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
ADDITIONAL INFORMATION (unaudited) (continued)
<Table>
<Caption>
NUMBER OF
PORTFOLIOS IN
FUND COMPLEX
TERM OF PRINCIPAL OVERSEEN BY
POSITION(S) OFFICE AND OCCUPATION(S) DIRECTOR OTHER
HELD WITH LENGTH OF DURING PAST (INCLUDING DIRECTORSHIPS
NAME, ADDRESS AND AGE FUND(1) TIME SERVED(1) 5 YEARS THE FUND) HELD BY DIRECTOR
- -------------------------------------------------------------------------------------------------------------------------
Roger M. Lavan, CFA Executive Vice Since Managing Director N/A N/A
CGM President 1996 of CGM and SBAM
399 Park Avenue
4th Floor
New York, NY 10022
Age 38
Frances M. Guggino Controller Since Vice President of N/A N/A
CGM 2002 Citigroup Asset
125 Broad Street Management
10th Floor
New York, NY 10004
Age 45
Christina T. Sydor Secretary Since Managing Director N/A N/A
CGM 1998 of CGM, General
300 First Stamford Place Counsel and
4th Floor Secretary of
Stamford, CT 06902 SBFM and TIA
Age 52
</Table>
- ------------------
<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 Meetings of Stockholders in the year 2004, year 2005,
and year 2003, 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) Mr. Gerken is a Director who is 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.
</Table>
PAGE 24
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
DIVIDEND REINVESTMENT PLAN (unaudited)
Pursuant to certain rules of the Securities and Exchange Commission, the
following additional disclosure is provided.
Pursuant to the Fund's Dividend Reinvestment Plan (the "Plan"), stockholders may
elect to have all distributions automatically reinvested by American Stock
Transfer & Trust Company (the "Plan Agent") in Fund shares pursuant to the Plan.
Each registered stockholder will receive from the Fund, as soon as practicable,
an authorization card to be signed and returned if the stockholder elects to
participate in the Plan. Stockholders who do not participate in the Plan will
receive all distributions in cash paid by check in dollars mailed directly to
the stockholder by the custodian, as dividend disbursing agent. In the case of
stockholders, such as banks, brokers or nominees, that hold shares for others
who are the beneficial owners, the Plan Agent will administer the Plan on the
basis of the number of shares certified from time to time by the stockholders as
representing the total amount registered in such stockholders' names and held
for the account of beneficial owners who are participants in the Plan. Investors
that own shares registered in the name of a bank, broker-dealer or other nominee
should consult with such nominee as to the participation in the Plan through
such nominee, and may be required to have their shares registered in their own
names in order to participate in the Plan.
The Plan Agent serves as agent for the stockholders in administering the Plan.
After the Fund declares a dividend or determines to make a capital gain
distribution, the Plan Agent will, as agent for the participants, receive the
cash payment and use it to buy Fund shares in the open market, on the New York
Stock Exchange or elsewhere, for the participants' accounts. The Fund will not
issue any new shares in connection with the Plan.
The Plan Agent maintains all stockholder accounts in the Plan and furnishes
written confirmations of all transactions in an account, including information
needed by stockholders for personal and tax records. Shares in the account of
each Plan participant will be held by the Plan Agent in the name of the
participant, and each stockholder's proxy will include those shares purchased
pursuant to the Plan.
There is no charge to participants for reinvesting dividends or capital gains
distributions. The Plan Agent's fees for the reinvestment of dividends and
capital gains distributions will be paid by the Fund. However, each participant
will pay a pro rata share of brokerage commissions incurred with respect to the
Plan Agent's open market purchases in connection with the reinvestment of
dividends and distributions. Brokerage charges for purchasing small amounts of
stock for individual accounts through the Plan are expected to be less than the
usual brokerage charges for such transactions because the Plan Agent will be
purchasing stock for all participants in blocks and prorating the lower
commission thus attainable.
PAGE 25
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
DIVIDEND REINVESTMENT PLAN (unaudited) (continued)
The receipt of dividends and distributions under the Plan will not relieve
participants of any federal income tax that may be payable on such dividends or
distributions.
Experience under the Plan may indicate that changes are desirable. Accordingly,
the Fund and the Plan Agent reserve the right to terminate the Plan as applied
to any dividend or distribution paid subsequent to written notice of the
termination sent to members of the Plan at least 30 days before the record date
for such dividend or distribution. The Plan also may be amended by the Fund or
the Plan Agent, but (except when necessary or appropriate to comply with
applicable law, rules or policies of a regulatory authority) only by at least 30
days' written notice to participants in the Plan. All correspondence concerning
the Plan should be directed to the Plan Agent at 59 Maiden Lane, New York New
York 10038.
PAGE 26
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
PETER J. WILBY, CFA
President
LEWIS E. DAIDONE
Executive Vice President and
Chief Administrative Officer
JAMES E. CRAIGE, CFA
Executive Vice President
THOMAS K. FLANAGAN, CFA
Executive Vice President
ROGER M. LAVAN, CFA
Executive Vice President
FRANCES M. GUGGINO
Controller
CHRISTINA T. SYDOR
Secretary
SALOMON BROTHERS
2008 WORLDWIDE DOLLAR
GOVERNMENT TERM TRUST INC.
125 Broad Street
10th Floor, MF-2
New York, New York 10004
INVESTMENT ADVISER AND ADMINISTRATOR
Salomon Brothers Asset
Management Inc
399 Park Avenue
New York, New York 10022
SUB-ADMINISTRATOR
Prudential Investments LLC
One Seaport Plaza
New York, New York 10292
CUSTODIAN
State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02110
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
SBG
------------------------------------------------
Notice is hereby given in accordance with Section 23(c) of the
Investment Company Act of 1940 that the Fund may purchase, from time to
time, shares of its common stock at market prices.
------------------------------------------------
This report is for stockholder information.
This is not a prospectus intended for use
in the purchase or sale of Fund shares.
SALOMON BROTHERS
2008 WORLDWIDE DOLLAR
GOVERNMENT TERM TRUST INC.
ANNUAL REPORT
July 31, 2003
[GRAPHIC]
[SALOMON BROTHERS ASSET
MANAGEMENT LOGO]
AMERICAN STOCK TRANSFER & TRUST COMPANY
59 MAIDEN LANE
NEW YORK, NEW YORK 10038
SBGANN 7/03
03-5390
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
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.
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.
Not applicable.
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) 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 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
By: /s/ R. Jay Gerken
R. Jay Gerken
Chief Executive Officer of
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
Date: October 2, 2003
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 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
Date: October 2, 2003
By: /s/ Lewis E. Daidone
(Lewis E. Daidone)
Chief Administrative Officer of
SALOMON BROTHERS 2008 WORLDWIDE DOLLAR GOVERNMENT TERM TRUST INC.
Date: October 2, 2003