<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: 811-07540
---------------------------------------------
Global High Income Dollar Fund Inc.
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
51 West 52nd Street, New York, New York 10019-6114
------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Keith A. Weller, Esq.
UBS Global Asset Management (US) Inc.
51 West 52nd Street
New York, NY 10019-6114
(Name and address of agent for service)
Copy to:
Jack W. Murphy, Esq.
Dechert
1775 I Street, N.W.
Washington, DC 20006-2401
Registrant's telephone number, including area code: 212-882 5000
Date of fiscal year end: October 31
Date of reporting period: April 30, 2004
<Page>
ITEM 1. REPORTS TO STOCKHOLDERS.
<Page>
[UBS GLOBAL ASSET MANAGEMENT LOGO]
GLOBAL HIGH INCOME
DOLLAR FUND INC.
SEMIANNUAL REPORT
APRIL 30, 2004
<Page>
GLOBAL HIGH INCOME DOLLAR FUND INC.
June 15, 2004
DEAR SHAREHOLDER,
We present you with the semiannual report for Global High Income Dollar Fund
Inc. for the six months ended April 30, 2004.
PERFORMANCE
Over the six-month period, Global High Income Dollar Fund's (the "Fund") net
asset value return was 1.83%, compared to the 1.85% return of its peers, as
measured by the Lipper Emerging Markets Debt Funds median. On a market price
basis, the Fund returned 0.15% over the six-month period, compared with the
median's return of 3.49% over the same timeframe. (For more on the Fund's
performance, please refer to "Performance At A Glance" on page 5.)
Early in the reporting period, emerging bond markets rose sharply. While the
Fund participated in this rally, it was hurt on a relative basis versus those
peers that used leverage during the period. Leverage tends to magnify a fund's
upside and downside returns. By not exposing shareholders to the potential
benefits/risks associated with leverage, the Fund slightly underperformed its
Lipper median on a net asset value basis.
AN INTERVIEW WITH PORTFOLIO MANAGER UWE SCHILLHORN
Q. HOW DID EMERGING MARKETS DEBT PERFORM OVER THE PERIOD?
A. Emerging markets debt, as measured by the JP Morgan Emerging Markets Bond
Index--Global (EMBI--G), returned 1.88% over the six-month period. In
comparison, government bonds in developed markets returned 1.62%, as measured
by the Citigroup World Government Bond Index (WGBI) on a currency-hedged
basis in US dollars.
When the reporting period began in November 2003, there were a number of
positive factors driving the performance of emerging markets debt. Global
economic growth was rising, high commodity and oil prices were benefiting
many emerging markets economies, and interest rates were low and expected to
remain so, at least in the immediate future. This confluence of events
[SIDENOTE]
GLOBAL HIGH INCOME DOLLAR FUND INC.
INVESTMENT GOALS:
Primarily, high level of current income; secondarily, capital appreciation.
PORTFOLIO MANAGEMENT:
Portfolio Management Team, including Uwe Schillhorn
UBS Global Asset Management (US) Inc.
COMMENCEMENT:
October 8, 1993
NYSE SYMBOL:
GHI
DIVIDEND PAYMENTS:
Monthly
1
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helped drive emerging markets debt prices sharply higher in November and
December of 2003.
As 2004 began, improving global growth, in particular in China and the US,
led to fears that interest rates would rise. As a result, investors grew more
risk averse, which led to falling demand for emerging markets debt. At the
same time, bond issuance increased in January and questions regarding
Brazil's economy caused emerging markets debt spreads to slightly widen (a
spread is the difference in yield between debt obligations of different
categories). This was followed by a period of relative stability in the bond
market, despite a number of economic and geopolitical events in February and
March, including a terrorist attack in Spain. However, spreads widened
further in April, as renewed concerns over rising interest rates pulled down
the market.
Q. WHAT WERE SOME OF THE STRATEGIES THAT ENHANCED PERFORMANCE DURING THE
REPORTING PERIOD?
A. As the period began, we were overweight in Brazil, as the Lula administration
was successfully meeting the country's fiscal deficit targets and championing
tax and social security reform. ("Overweight" or "underweight" refers to the
Fund's degree of investment in a category of investments versus that of a
reference portfolio or benchmark index.) In mid-January 2004, however, we
shifted to an underweight position. While economic growth in Brazil was
expected to continue, we felt that the positive outlook was already reflected
in spreads, and that most market participants appeared to be overweight in
the country, thus limiting upside potential. Our underweight position proved
beneficial when Brazil's bonds subsequently declined. Later in the reporting
period, we moved back to a more neutral position. While many market
participants are still strongly overweight in Brazil, the potential political
ramifications of that country's upcoming October 2004 municipal elections
keep us from further increasing our position. We chose to overweight
Colombia, because we felt its government was capable of implementing
necessary fiscal reforms. This enhanced results when that country's bond
prices rose during the period.
Our duration strategy was another positive for performance. While the Fund
was largely neutral versus the EMBI--G, we were underweight in the five-year
portion of the yield curve and overweight in 30-year securities. This was
beneficial, as shorter-term securities underperformed when yields rose (and
prices fell), and the longer end of the yield curve outperformed.
Q. WERE THERE ANY STRATEGIES THAT DETRACTED FROM RESULTS?
A. In addition to the aforementioned issue related to leveraging, the Fund was
hurt by its positioning in several countries. For example, we were
underweight in Turkey, as spreads there were relatively low, and we felt it
was not worth taking the risk to maintain a larger exposure to the country.
However, Turkish
2
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bonds did well as spreads declined even further amid continuing hopes that
Turkey would become a member of the European Economic Union. At this point,
we believe spread levels in the country are well past their intrinsic, or
true, values.
Political issues in Venezuela caused us to underweight the country; however,
many other investors overlooked these problems as they focused on high oil
prices and the positive impact this had on the country's economy. As a
result, our underweight position hurt relative results.
Q. HOW WERE YOU POSITIONED IN OTHER EMERGING MARKET COUNTRIES?
A. We were largely neutral in Mexico, and overweight in Russia during the
period. This did not have a material impact on performance, as spreads were
fairly stable over the period as a whole. However, within Mexico, the Fund's
holding in PEMEX enhanced results when its bonds performed well during the
reporting period. (PEMEX is Mexico's state-owned oil monopoly.)
During the period, we established a position in Poland. While our investment
in Poland's government bonds underperformed initially, we viewed this as an
opportunity, given our opinion that these bonds were trading below their
intrinsic value. We therefore increased the Fund's exposure, and have since
seen Poland's bond prices stabilize.
Q. WHAT IS YOUR OUTLOOK FOR THE GLOBAL ECONOMY AND EMERGING MARKETS DEBT IN THE
COMING MONTHS?
A. The global economy appears to continue to expand, and we expect commodity
prices to strengthen further. It's also widely expected that the Federal
Reserve Board will have to raise interest rates at some point. We don't
expect spreads to tighten significantly from current levels, as the improving
macroeconomic picture for many emerging markets has already been priced into
their bond prices. Based on this outlook, the Fund is neutrally positioned.
We are focusing on the medium- to shorter-end of the yield curve, which could
help protect the Fund somewhat if interest rates rise and subsequently lead
to a selloff in the emerging debt markets.
3
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Our ultimate objective in managing your investments is to help you successfully
meet your financial goals. We thank you for your continued support and welcome
any comments or questions you may have. For additional information on the UBS
funds,* please contact your financial advisor, or visit us at www.ubs.com.
Sincerely,
/s/ Joseph A. Varnas /s/ Uwe Schillhorn
Joseph A. Varnas Uwe Schillhorn
PRESIDENT PORTFOLIO MANAGEMENT TEAM MEMBER
Global High Income Dollar Fund Inc. Global High Income Dollar Fund Inc.
MANAGING DIRECTOR DIRECTOR
UBS Global Asset Management (US) Inc. UBS Global Asset Management (US) Inc.
* Mutual funds are sold by prospectus only. The prospectus for a fund
contains more complete information regarding investment objectives, risks,
charges and expenses, and should be read carefully before investing.
This letter is intended to assist shareholders in understanding how the Fund
performed during the six months ended April 30, 2004, and reflects our views at
the time of its writing. Of course, these views may change in response to
changing circumstances, and they do not guarantee the future performance of the
markets or the Fund. We encourage you to consult your financial advisor
regarding your personal investment program.
4
<Page>
PERFORMANCE AT A GLANCE
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 4/30/04
<Table>
<Caption>
NET ASSET VALUE RETURNS* 6 MONTHS 1 YEAR 5 YEARS 10 YEARS
- ----------------------------------------------------------------------------------------
Global High Income Dollar Fund Inc. 1.83% 8.46% 13.56% 12.46%
Lipper Emerging Market Debt Funds median** 1.85 11.54 15.25 14.12
MARKET PRICE RETURNS*
Global High Income Dollar Fund Inc. 0.15% 11.45% 19.71% 14.25%
Lipper Emerging Market Debt Funds median** 3.49 6.87 14.36 12.73
</Table>
* Past performance does not predict future performance. The return and value
of an investment will fluctuate, so that an investor's shares, when sold,
may be worth more or less than their original cost. NAV return assumes, for
illustration only, that dividends were reinvested at the net asset value on
the distribution dates. Market returns assume that dividends are reinvested
at prices according to the dividend reinvestment plan. NAV and market price
returns for periods of one year or less have not been annualized. Returns
do not reflect taxes paid on dividends/distributions or brokerage
commisions and taxes paid on the sale of shares.
** Lipper closed-end fund peer group data calculated by Lipper Inc.; used with
permission. The Lipper median is the return of the fund that places in the
middle of the Lipper Emerging Market Debt Funds median peer group.
5
<Page>
PORTFOLIO STATISTICS
<Table>
<Caption>
CHARACTERISTICS* 4/30/04 10/31/03 4/30/03
- --------------------------------------------------------------------------------------------------------
Net Asset Value $ 15.34 $ 15.92 $ 15.79
Market Price $ 16.26 $ 17.07 $ 16.15
12-Month Dividends/
Distributions $ 1.7667 $ 1.6840 $ 1.5874
Dividend/Distribution
at Period-End $ 0.1486 $ 0.1461 $ 0.1403
Net Assets (mm) $ 298.2 $ 309.5 $ 306.9
<Caption>
CURRENCY EXPOSURE** 4/30/04 10/31/03 4/30/03
- --------------------------------------------------------------------------------------------------------
U.S. Dollar Denominated 95.8% 98.2% 97.9%
Foreign Denominated 4.2 1.8 2.1
TOTAL 100.0% 100.0% 100.0%
<Caption>
TOP 10 COUNTRIES
(EXCLUDING U.S.)** 4/30/04 10/31/03 4/30/03
- --------------------------------------------------------------------------------------------------------
Brazil 21.4% Brazil 20.0% Russia 20.0%
Russia 19.4 Russia 17.0 Brazil 17.6
Mexico 12.6 Mexico 14.4 Mexico 14.8
Argentina 4.9 Venezuela 5.0 Malaysia 4.3
Colombia 4.9 Trinidad & Tobago 3.2 Venezuela 4.0
Venezuela 3.8 Panama 3.2 Trinidad & Tobago 3.8
Bulgaria 3.2 Malaysia 3.2 Peru 3.6
Malaysia 3.2 Peru 2.7 Colombia 3.2
Poland 2.4 Philippines 2.3 Panama 3.0
South Africa 2.3 Colombia 2.0 Philippines 2.4
TOTAL 78.1% 73.0% 76.7%
<Caption>
CREDIT QUALITY** 4/30/04 10/31/03 4/30/03
- --------------------------------------------------------------------------------------------------------
A1/P1 -- 8.7% 6.6%
A 13.4% 2.1 4.1
BBB 14.9 24.2 23.6
BB 34.9 28.2 33.7
B 26.7 22.4 18.9
CCC 7.0 8.9 7.4
Selective Default 0.9 1.9 1.9
Non-Rated 2.2 1.6 2.5
Net Receivable -- 2.0 1.3
TOTAL 100.0% 100.0% 100.0%
</Table>
* Prices and other characteristics will vary over time.
** Weightings represent percentages of net assets as of the dates indicated.
The Fund's portfolio is actively managed and its composition will vary over
time. Credit quality ratings shown are based on those assigned by Standard
& Poor's, a division of The McGraw-Hill Companies, Inc., and/or Moody's
Investors Services, Inc. to indvidual portfolio holdings. Both are
independent ratings agencies.
Past performance is no guarantee of future results. The value of an investment
will fluctuate, so that an investor's shares, when sold, may be worth more or
less than their original cost.
6
<Page>
Portfolio of Investments -- April 30, 2004 (unaudited)
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- -------------------------------------------------------------------------------------------------------
FOREIGN DEBT SECURITIES--96.13%
ALGERIA--1.59%
$ 4,863 The People's Democratic Republic of
Algeria Loan Participation, Tranche 3
(JP Morgan Chase Bank) (1) 03/04/10 1.985%+ $ 4,741,620
ARGENTINA--4.93%
18,540 Republic of Argentina 08/03/12 1.234+ 12,125,160
5,000 Republic of Argentina, PAR (2) 03/31/23 6.000 2,587,500
14,712,660
BAHAMAS--1.48%
4,560 Odebrecht Overseas Ltd. 02/25/09 11.500 4,423,200
BRAZIL--21.36%
1,140 Braskem S.A., 144A 01/22/14 11.750 1,100,100
3,700 Braskem S.A., 144A 11/05/08 12.500 3,755,500
2,174 Federal Republic of Brazil 04/15/12 2.063 1,815,395
384 Federal Republic of Brazil 04/15/06 2.125 369,600
8,280 Federal Republic of Brazil 04/15/24 8.875 6,624,000
3,620 Federal Republic of Brazil 05/15/27 10.125 3,181,075
3,500 Federal Republic of Brazil 07/26/07 11.250 3,745,000
15,774 Federal Republic of Brazil, C 04/15/14 8.000 14,511,874
18,937 Federal Republic of Brazil, DCB 04/15/12 2.125+ 15,812,003
10,000 Federal Republic of Brazil, DISC 04/15/24 2.063+ 7,650,000
6,650 Federal Republic of Brazil, PAR 04/15/24 6.000++ 5,120,500
63,685,047
BULGARIA--3.22%
1,440 Republic of Bulgaria 01/15/15 8.250 1,648,800
8,000 Republic of Bulgaria, Series A 07/28/24 2.000+ 7,950,000
9,598,800
CHILE--0.34%
1,000 Republic of Chile 01/15/13 5.500 1,005,608
CHINA--0.80%
2,485 People's Republic of China 10/29/13 4.750 2,381,086
COLOMBIA--4.91%
8,318 Republic of Colombia 04/09/11 9.750 9,233,261
5,400 Republic of Colombia 01/28/33 10.375 5,400,000
14,633,261
</Table>
7
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- -------------------------------------------------------------------------------------------------------
FOREIGN DEBT SECURITIES--(CONTINUED)
ECUADOR--2.16%
$ 5,660 Republic of Ecuador 08/15/30 7.000%++ $ 3,947,850
2,800 Republic of Ecuador, 144A 11/15/12 12.000 2,492,000
6,439,850
EL SALVADOR--0.30%
830 Republic of El Salvador, 144A 01/24/23 7.750 900,550
INDONESIA--0.77%
3,000 Republic of Indonesia Loan
Participation (Deutsche Bank AG,
Singapore Branch) (1)(3) 12/14/19 2.125+ 2,310,000
IVORY COAST--0.34%
5,700 Republic of Ivory Coast (3) 03/29/18 2.000+ 1,040,250
MALAYSIA--3.17%
4,784 Petroliam Nasional Berhad, 144A 10/15/26 7.625 5,188,228
3,800 Petroliam Nasional Berhad 05/22/22 7.875 4,259,057
9,447,285
MEXICO--12.59%
3,170 Conproca S.A. de C.V. 06/16/10 12.000 4,025,900
820 PEMEX Finance Ltd. 05/15/07 8.020 861,000
1,100 PEMEX Finance Ltd. 08/15/07 10.610 1,466,869
3,000 PEMEX Finance Ltd., 144A (3)(5) 11/15/18 9.150 3,582,669
2,500 PEMEX Project Funding Master Trust 02/01/22 8.625 2,662,500
1,250 Petroleos Mexicanos 03/30/18 9.250 1,437,500
3,718 United Mexican States 04/15/14 5.875 3,606,460
3,317 United Mexican States 04/08/33 7.500 3,283,830
14,535 United Mexican States 08/15/31 8.300 15,625,125
800 United Mexican States 02/17/09 10.375 982,000
37,533,853
NETHERLANDS--1.42%
781 ING Bank NV 05/31/14 8.476 397,859
1,115 ING Bank NV 05/31/13 8.511 617,247
1,373 ING Bank NV 05/31/12 8.545 826,258
1,754 ING Bank NV 05/31/11 8.550 1,148,721
1,093 ING Bank NV 05/31/10 8.571 778,637
606 ING Bank NV 05/31/09 8.597 469,574
- -------------------------------------------------------------------------------------------------------
4,238,296
- -------------------------------------------------------------------------------------------------------
</Table>
8
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- -------------------------------------------------------------------------------------------------------
FOREIGN DEBT SECURITIES--(CONCLUDED)
PANAMA--2.00%
$ 2,800 Republic of Panama 01/16/23 9.375% $ 2,926,000
3,484 Republic of Panama, PDI 07/17/16 2.000+ 3,031,426
5,957,426
PERU--1.78%
890 Republic of Peru 05/03/16 8.375 843,275
5,330 Republic of Peru, FLIRB 03/07/17 4.500++ 4,477,200
5,320,475
PHILIPPINES--1.35%
3,935 Republic of Philippines 01/15/19 9.875 4,038,294
POLAND--2.39%
PLN11,000 Republic of Poland 10/24/13 5.000 2,332,376
$ 2,000 Republic of Poland 01/15/14 5.250 1,980,000
PLN11,940 Republic of Poland 06/24/08 5.750 2,805,015
7,117,391
QATAR--2.15%
$ 4,722 State of Qatar 06/15/30 9.750 6,398,310
ROMANIA--1.36%
ECU 2,900 Government of Romania 05/08/12 8.500 4,045,523
RUSSIA--19.44%
$ 7,230 Gaz Capital S.A. 04/28/34 8.625 7,230,000
31,494 Russian Federation, 144A 03/31/30 5.000++ 28,856,001
14,064 Russian Federation, 144A 03/31/10 8.250 15,277,035
5,810 Russian Federation, 144A 06/26/07 10.000 6,608,875
57,971,911
SOUTH AFRICA--2.28%
3,500 Republic of South Africa 04/25/12 7.375 3,841,250
2,500 Republic of South Africa 05/19/09 9.125 2,943,750
6,785,000
URUGUAY--0.25%
1,141 Republic of Uruguay 01/15/33 7.875 753,079
VENEZUELA--3.75%
1,746 Republic of Venezuela 08/07/10 5.375 1,357,515
11,280 Republic of Venezuela 03/31/20 6.750 9,813,600
11,171,115
- -------------------------------------------------------------------------------------------------------
Total Foreign Debt Securities (cost--$273,276,013) 286,649,890
- -------------------------------------------------------------------------------------------------------
</Table>
9
<Page>
<Table>
<Caption>
NUMBER OF
RIGHTS
(000) VALUE
- -------------------------------------------------------------------------------------------------------
RIGHTS--0.03%
MEXICO--0.03%
1,885 United Mexican States Value Recovery
Rights Series B 6/30/04 (4) $ 8,482
1,885 United Mexican States Value Recovery
Rights Series C 6/30/05 (4) 32,987
1,885 United Mexican States Value Recovery
Rights Series D 6/30/06 (4) 23,563
1,885 United Mexican States Value Recovery
Rights Series E 6/30/07 (4) 14,138
79,170
VENEZUELA--0.00%
27 Venezuela Oil Indexed
Payment Obligations,
Expiration Date 4/15/20 (4) --
Total Rights (cost--$0) 79,170
<Caption>
NUMBER OF
SHARES INTEREST
(000) RATE
- -------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENT--1.10%**
UNITED STATES--1.10%
3,281 UBS Supplementary Trust
U.S. Cash Management
Prime Fund (cost--$3,281,433) 1.089%* 3,281,433
Total Investments (cost--$276,557,446)--97.26% 290,010,493
Other assets in excess of liabilities--2.74% 8,173,480
Net Assets--100.00% $ 298,183,973
</Table>
Note: The Portfolio of Investments is listed by the issuer's country of
origin.
+ Reflects rate at April 30, 2004 on variable rate instruments.
++ Reflects rate at April 30, 2004 on step coupon rate instruments.
* Interest rate reflects yield at April 30, 2004.
** Security is issued by a fund that is advised by an affiliate of UBS
Global Asset Management (US) Inc., Global High Income Dollar Fund Inc.'s
advisor.
(1) Participation interest was acquired through the financial institution
indicated parenthetically.
(2) Bond interest in default.
(3) Illiquid securities represents a value of $6,932,919 or 2.33% of net
assets.
(4) Rights do not currently accrue income. Quarterly income, if any, will
vary based on several factors including oil exports, prices, and
inflation.
(5) Represents a restricted security.
C Front-Load Interest Reduction with Capitalized Interest Bond.
DCB Debt Conversion Bond
DISC Discount Bond
ECU Euro
FLIRB Front-Loaded Interest Reduction Bond
PAR Par Bond
PDI Past Due Interest Bond
PLN Poland Zloty
144A Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities are considered liquid and may be resold in
transactions exempt from registration, normally to qualified buyers. At
April 30, 2004, the value of these securities amounted to $67,760,958 or
22.72% of net assets.
10
<Page>
FUTURES CONTRACTS
<Table>
<Caption>
UNREALIZED
NUMBER OF IN EXPIRATION APPRECIATION/
CONTRACTS CONTRACTS TO RECEIVE EXCHANGE FOR DATES (DEPRECIATION)
- ---------------------------------------------------------------------------------------------
295 U.S. Treasury Note
10 Year Futures $ 32,597,500 June 2004 $ (932,938)
CONTRACTS TO DELIVER
149 U.S. Treasury Bond
10 Year Futures 15,956,969 June 2004 793,741
- ---------------------------------------------------------------------------------------------
$ (139,197)
- ---------------------------------------------------------------------------------------------
</Table>
FORWARD FOREIGN CURRENCY CONTRACTS
<Table>
<Caption>
UNREALIZED
CONTRACTS TO IN MATURITY APPRECIATION/
DELIVER EXCHANGE FOR DATES (DEPRECIATION)
- ---------------------------------------------------------------------------------------
Euro Dollar 13,150,000 USD 16,251,871 05/06/04 $ 508,925
Euro Dollar 11,400,000 USD 13,463,400 08/06/04 (152,143)
United States Dollar 15,666,598 EUR 13,150,000 05/06/04 76,348
United States Dollar 7,366,581 THB 288,733,145 07/29/04 (151,974)
- ---------------------------------------------------------------------------------------
$ 281,156
- ---------------------------------------------------------------------------------------
</Table>
Currency Type Abbreviations:
EUR Euro
THB Thailand Baht
USD United States Dollar
ILLIQUID RESTRICTED SECURITY
<Table>
<Caption>
ACQUISITION
COST MARKET VALUE
ACQUISITION ACQUISITION PERCENTAGE MARKET PERCENT OF
SECURITY DATE COST OF NET ASSETS VALUE NET ASSETS
- --------------------------------------------------------------------------------------------
PEMEX
Finance Ltd., 144A 12/04/98 $ 2,999,270 1.01% $ 3,582,669 1.20%
</Table>
INVESTMENTS BY TYPE OF ISSUER
<Table>
<Caption>
PERCENTAGE OF NET ASSETS
------------------------------
LONG-TERM OTHER INVESTMENTS
- --------------------------------------------------------------------------------------------
Government and other public issuers 81.29% --
Oil/Gas 6.98 --
Financial Services 3.40 --
Industrials 2.83 --
Minerals 1.63 --
Rights -- 0.03%
Mutual Funds -- 1.10
- --------------------------------------------------------------------------------------------
96.13% 1.13%
- --------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements
11
<Page>
GLOBAL HIGH INCOME DOLLAR FUND INC.
Statement of Assets and Liabilities -- April 30, 2004 (unaudited)
<Table>
ASSETS:
Investments in securities of unaffiliated issuers, at value (cost--$273,276,013) $ 286,729,060
Investments in securities of a related entity, at value (cost--$3,281,433) 3,281,433
Cash 5,156,092
Foreign currency, at value (cost--$53) 52
Cash collateral for futures contracts 1,067,351
Interest receivable 3,976,721
Receivable for investments sold 1,387,976
Unrealized appreciation on forward foreign currency contracts 663,894
Variation margin receivable 96,797
Other assets 27,373
Total assets 302,386,749
- -------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for investments purchased 2,910,715
Payable to investment advisor and administrator 657,713
Unrealized depreciation on forward foreign currency contracts 382,738
Variation margin payable 74,500
Accrued expenses and other liabilities 177,110
Total liabilities 4,202,776
- -------------------------------------------------------------------------------------------------
NET ASSETS:
Capital stock--$0.001 par value; 100,000,000 shares authorized;
19,439,667 shares issued and outstanding 268,246,555
Distributions in excess of net investment income (9,650,763)
Accumulated net realized gain from investment transactions 26,009,843
Net unrealized appreciation of investments, futures and
other assets and liabilities denominated in foreign currencies 13,578,338
Net assets $ 298,183,973
Net asset value per share $ 15.34
- -------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements
12
<Page>
GLOBAL HIGH INCOME DOLLAR FUND INC.
Statement of Operations
<Table>
<Caption>
FOR THE
SIX MONTHS
ENDED
APRIL 30, 2004
(UNAUDITED)
- -------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest income (includes $21,239 from a related entity) $ 10,943,897
Securities lending income 154
10,944,051
- -------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory and administration fees 1,960,669
Custody and accounting fees 125,483
Reports and notices to shareholders 39,361
Professional fees 29,964
Directors' fees 8,432
Transfer agency fees 7,370
Other expenses 31,544
2,202,823
- -------------------------------------------------------------------------------------------------
Net investment income 8,741,228
- -------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS (LOSSES) FROM INVESTMENT ACTIVITIES:
NET REALIZED GAIN (LOSS) FROM:
Investment transactions 25,880,257
Foreign currency transactions (530,091)
Futures 297,538
NET CHANGE IN UNREALIZED APPRECIATION/DEPRECIATION OF:
Investments (28,724,526)
Futures (82,838)
Other assets, liabilities and forward foreign currency contracts 404,786
Net realized and unrealized gains (losses) from investment activities (2,754,874)
- -------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 5,986,354
- -------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements
13
<Page>
GLOBAL HIGH INCOME DOLLAR FUND INC.
Statement of Changes in Net Assets
<Table>
<Caption>
FOR THE
SIX MONTHS
ENDED FOR THE
APRIL 30, 2004 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2003
- ------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 8,741,228 $ 19,877,411
Net realized gain from investment transactions 25,880,257 12,426,980
Net realized gain (loss) from futures and
foreign currency transactions (232,553) 2,143,359
Net change in unrealized
appreciation/(depreciation) of:
Investments (28,724,526) 33,037,627
Futures (82,838) (56,359)
Other assets, liabilities and forward
foreign currency contracts 404,786 (144,666)
- ------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 5,986,354 67,284,352
- ------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (17,318,799)(1) (22,097,218)
Net realized gains -- (10,316,523)
Return of capital -- (322,658)
Total dividends and distributions to shareholders (17,318,799) (32,736,399)
Net increase (decrease) in net assets (11,332,445) 34,547,953
- ------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 309,516,418 274,968,465
- ------------------------------------------------------------------------------------------
End of period $ 298,183,973 $ 309,516,418
- ------------------------------------------------------------------------------------------
</Table>
(1) The actual sources of the Fund's fiscal year 2004 dividends/distributions
may be net investment income, net realized capital gains, return of capital
or a combination of the foregoing and may be subject to retroactive
recharacterization at the end of the Fund's fiscal year based on tax
regulations. Shareholders will be informed of the tax characteristics of
dividends/distributions after the close of the 2004 fiscal year.
See accompanying notes to financial statements
14
<Page>
GLOBAL HIGH INCOME DOLLAR FUND INC.
Notes to Financial Statements (unaudited)
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Global High Income Dollar Fund Inc. (the "Fund") was incorporated in Maryland on
February 23, 1993 and is registered with the Securities and Exchange Commission
as a closed-end, non-diversified management investment company. The Fund's
primary investment objective is to achieve a high level of current income. As a
secondary objective the Fund seeks capital appreciation, to the extent
consistent with it's primary objective.
In the normal course of business the Fund enters into contracts that contain a
variety of representations that provide general indemnification. The Fund's
maximum exposure under these arrangements is unknown as this would involve
future claims that may be made against the Fund that have not yet occurred.
However, the Fund has not had prior claims or losses pursuant to these contracts
and expects the risk of loss to be remote.
The preparation of financial statements in accordance with accounting principles
generally accepted in the United States requires the Fund's management to make
estimates and assumptions that affect the reported amounts and disclosures in
the financial statements. Actual results could differ from those estimates. The
following is a summary of significant accounting policies:
VALUATION OF INVESTMENTS--The Fund calculates its net asset value based on the
current market value, where available, for its portfolio securities. The Fund
normally obtains market values for its securities from independent pricing
sources and broker-dealers. Independent pricing sources may use reported last
sale prices, current market quotations or valuations from computerized "matrix"
systems that derive values based on comparable securities. A matrix system
incorporates parameters such as security quality, maturity and coupon, and/or
research and evaluations by its staff, including review of broker-dealer market
price quotations, if available, in determining the valuation of the portfolio
securities. Securities traded in the over-the-counter ("OTC") market and listed
on The Nasdaq Stock Market, Inc. ("Nasdaq") normally are valued at the NASDAQ
Official Closing Price. Other OTC securities are valued at the last bid price
available on the valuation date prior to valuation. Securities which are listed
on U.S. and foreign stock exchanges normally are valued at the last sale price
on the day the securities are valued or, lacking any sales on such day, at the
last available bid price. In cases where securities are traded on more than one
exchange, the securities are valued on the exchange designated as the primary
market by UBS Global Asset Management (US) Inc. ("UBS Global AM"), the
investment advisor and administrator of the Fund. UBS Global AM is an indirect
wholly owned asset management subsidiary of UBS AG, an internationally
diversified organization with headquarters in Zurich, Switzerland and operations
in many areas of the financial services industry. If a market value is not
available from an independent pricing source for a particular security, that
security is valued at fair value as determined in good faith by or under the
direction of the Fund's board of directors (the "Board"). All investments quoted
in foreign currencies will be valued weekly in U.S. dollars on the basis of the
foreign currency exchange rates.
15
<Page>
Foreign currency exchange rates are generally determined prior to the close of
the New York Stock Exchange ("NYSE"). Occasionally, events affecting the value
of foreign investments and such exchange rates occur between the time at which
they are determined and the close of the NYSE, which will not be reflected in
the computation of the Fund's net asset value. If events materially affecting
the value of such securities or currency exchange rates occur during such time
periods, the securities will be valued at their fair value as determined in good
faith by or under the direction of the Board.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME--Investment transactions are
recorded on the trade date. Realized gains and losses from investment and
foreign exchange transactions are calculated using the identified cost method.
Interest income is recorded on an accrual basis. Discounts are accreted and
premiums are amortized as adjustments to interest income and the identified cost
of investments.
FOREIGN CURRENCY TRANSLATION--The books and records of the Fund are maintained
in U.S. dollars using the WM/Reuters closing spot rates as of 4:00 pm London
time. For purposes of calculating the U.S. dollar equivalent value of a non-U.S.
dollar denominated obligation, foreign currency amounts are translated into U.S.
dollars on the following basis: (1) market value of investment securities and
other assets and liabilities--at the exchange rates prevailing at the end of the
Fund's fiscal period; and (2) purchases and sales of investment securities and
income and expenses at the rates of exchange prevailing on the respective dates
of such transactions.
Although the net assets and the market value of the Fund's portfolio are
presented at the foreign exchange rates at the end of the Fund's fiscal period,
the Fund does not generally isolate the effect of fluctuations in foreign
exchange rates from the effect of the changes in market prices of securities.
However, the Fund does isolate the effect of fluctuations in foreign exchange
rates when determining the gain or loss upon the sale or maturity of foreign
currency-denominated securities pursuant to U.S. federal income tax regulations.
Certain foreign exchange gains and losses included in realized and unrealized
gains and losses are included in or are a reduction of ordinary income in
accordance with U.S. federal income tax regulations.
FORWARD FOREIGN CURRENCY CONTRACTS--The Fund may enter into forward foreign
currency exchange contracts ("forward contracts") in connection with planned
purchases or sales of securities or to hedge the U.S. dollar value of portfolio
securities denominated in a particular currency. The Fund may also use forward
contracts to enhance income.
The Fund has no specific limitation on the percentage of assets which may be
committed to such contracts. The Fund may enter into forward contracts or
maintain a net exposure to forward contracts only if (1) the consummation of the
contracts would not obligate the Fund to deliver an amount of foreign currency
in excess of the value of the position being hedged by such contracts or (2) the
Fund identifies cash or liquid securities in an amount not less than the value
of its total assets committed to the consummation of the forward contracts and
not covered as provided in (1) above, as marked-to-market daily.
16
<Page>
Risks may arise upon entering into forward contracts from the potential
inability of counterparties to meet the terms of their forward contracts and
from unanticipated movements in the value of foreign currencies relative to the
U.S. dollar.
Fluctuations in the value of forward contracts are recorded for book purposes as
unrealized gains or losses by the Fund. Realized gains and losses include net
gains and losses recognized by the Fund on contracts which have been sold or
matured.
FUTURES CONTRACTS--The Fund may use financial futures contracts for hedging
purposes and to adjust exposure to U.S. and foreign fixed income markets in
connection with a reallocation of the Fund's assets or to manage the average
duration of the Fund. However, imperfect correlations between futures contracts
and the related securities or markets, or market disruptions, do not normally
permit full control of these risks at all times. Using financial futures
contracts involves various market risks. The maximum amount at risk from the
purchase of a futures contract is the contract value.
Upon entering into a financial futures contract, the Fund is required to pledge
to a broker an amount of cash and/or liquid securities equal to a certain
percentage of the contract amount. This amount is known as the "initial margin".
Subsequent payments, known as "variation margin," are made or received by the
Fund each day, depending on the daily fluctuations in the value of the
underlying financial futures contracts. Such variation margin is recorded for
financial statement purposes on a daily basis as an unrealized gain or loss on
futures until the financial futures contract is closed, at which time the net
gain or loss is reclassified to realized gain or loss on futures.
DIVIDENDS AND DISTRIBUTIONS--Dividends and distributions to shareholders are
recorded on the ex-dividend date. The amount of dividends from net investment
income and distributions from net realized capital gains and/or return of
capital is determined in accordance with U.S. federal income tax regulations,
which may differ from accounting principles generally accepted in the United
States. 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 reclassification.
CONCENTRATION OF RISK
Investing in securities of foreign issuers and currency transactions may involve
certain considerations and risks not typically associated with investments in
the United States. These risks include revaluation of currencies, adverse
fluctuations in foreign currency values and possible adverse political, social
and economic developments, including those particular to a specific industry,
country or region, which could cause the securities and their markets to be less
liquid and prices more volatile than those of comparable U.S. companies and U.S.
government securities. These risks are greater with respect to securities of
issuers located in emerging market countries in which the Fund invests. The
ability of the issuers of debt securities held by the Fund to meet their
obligations may be affected by economic and political developments particular to
a specific industry, country or region.
17
<Page>
INVESTMENT ADVISOR AND ADMINISTRATOR AND OTHER TRANSACTIONS WITH RELATED
ENTITIES
The Board has approved an Investment Advisory and Administration Contract
("Advisory Contract") with UBS Global AM, under which UBS Global AM serves as
investment advisor and administrator of the Fund. In accordance with the
Advisory Contract, the Fund pays UBS Global AM an investment advisory and
administration fee, which is accrued weekly and paid monthly, at the annual rate
of 1.25% of the Fund's average weekly net assets.
The Fund invests in shares of the UBS Supplementary Trust U.S. Cash Management
Prime Fund ("Supplementary Trust"). Supplementary Trust is a business trust
managed by UBS Global Asset Management (Americas) Inc., an affiliate of UBS
Global AM.
The Fund pays no management fees to Supplementary Trust. Distributions from the
Supplementary Trust are reflected as interest income on the statement of
operations.
Amounts relating to those investments at April 30, 2004 and for the period ended
are summarized as follows:
<Table>
<Caption>
% OF
SALES INTEREST NET
FUND PURCHASES PROCEEDS INCOME VALUE ASSETS
- -----------------------------------------------------------------------------------------
UBS Supplementary
Trust U.S. Cash
Management Prime Fund $ 58,330,350 $ 55,048,917 $ 21,239 $ 3,281,433 1.1%
</Table>
SECURITIES LENDING
The Fund may lend securities up to 33 1/3% of its total assets to qualified
broker-dealers or institutional investors. The loans are secured at all times by
cash, cash equivalents or U.S. government securities in an amount at least equal
to the market value of the securities loaned, plus accrued interest and
dividends, determined on a daily basis and adjusted accordingly. The Fund will
regain ownership of loaned securities to exercise certain beneficial rights;
however, the Fund may bear the risk of delay in recovery of, or even loss of
rights in, the securities loaned should the borrower fail financially. The Fund
receives compensation for lending its securities from interest or dividends
earned on the cash, cash equivalents or U.S. government securities held as
collateral, net of fee rebates paid to the borrower plus reasonable
administrative and custody fees. UBS Securities LLC, an indirect wholly owned
subsidiary of UBS AG, and other affiliated broker-dealers have been approved as
borrowers under the Fund's securities lending program. At April 30, 2004, the
Fund did not have any securities on loan. For the six months ended April 30,
2004, the Fund earned $154 for lending its securities and UBS Securities LLC
earned $51 in compensation as the Fund's lending agent. At April 30, 2004, the
Fund owed UBS Securities LLC $15 in compensation as the Fund's lending agent.
18
<Page>
CAPITAL STOCK
There are 100,000,000 shares of $0.001 par value common stock authorized and
19,439,667 shares outstanding at April 30, 2004. For the six months ended April
30, 2004 and for the year ended October 31, 2003, the Fund did not repurchase
any shares of common stock.
For the period September 17, 1998 (commencement of repurchase program) through
February 28, 2001, the Fund repurchased 3,297,000 shares of common stock at an
average market price per share of $11.68 and a weighted average discount from
net asset value of 14.88%. As of April 30, 2004, paid-in-capital has been
reduced by the cost of $38,698,693 of capital stock repurchased.
FEDERAL TAX STATUS
For federal income tax purposes, the cost of securities owned at April 30, 2004,
was substantially the same as the cost of securities for financial statement
purposes. At April 30, 2004, the components of net unrealized appreciation of
investments at April 30, 2004 were as follows:
<Table>
Gross appreciation (investments having an excess of value over cost) $ 20,361,301
Gross depreciation (investments having an excess of cost over value) (6,908,254)
Net unrealized appreciation of investments $ 13,453,047
</Table>
For the six months ended April 30, 2004, aggregate purchases and sales of
portfolio securities, excluding short-term securities, were $202,192,487 and
$190,304,027, respectively.
The Fund intends to distribute substantially all of its taxable income and to
comply with the other requirements of the Internal Revenue Code applicable to
regulated investment companies. Accordingly, no provision for federal income
taxes is required. In addition, by distributing during each calendar year,
substantially all of its net investment income, realized capital gains and
certain other amounts, if any, the Fund intends not to be subject to a federal
excise tax.
The tax character of distributions paid during the fiscal year ended October 31,
2003 were as follows:
<Table>
<Caption>
DISTRIBUTIONS PAID FROM: 2003
- ------------------------------------------------------------------------------------
Net investment income $ 24,240,920
Net realized gains 8,172,821
Return of capital 322,658
- ------------------------------------------------------------------------------------
$ 32,736,399
- ------------------------------------------------------------------------------------
</Table>
The tax character of distributions paid and the components of accumulated
earnings (deficit) on a tax basis for the current fiscal year will be calculated
after the Fund's fiscal year ending October 31, 2004.
19
<Page>
GLOBAL HIGH INCOME DOLLAR FUND INC.
Financial Highlights
Selected data for a share of common stock outstanding thoughout each period is
presented below:
<Table>
<Caption>
FOR THE
SIX MONTHS
ENDED FOR THE YEARS ENDED OCTOBER 31,
APRIL 30, 2004 -----------------------------------------------------------------------
(UNAUDITED) 2003 2002+ 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
BEGINNING OF PERIOD $ 15.92 $ 14.14 $ 14.16 $ 14.42 $ 13.66 $ 13.02
Net investment income 0.45 1.02 1.04 1.24 1.48 1.10
Net realized and
unrealized gains (losses)
from investment
and foreign currency
transactions (0.14) 2.44 0.52 0.10 0.71 0.78
Net increase from
investment operations 0.31 3.46 1.56 1.34 2.19 1.88
Dividends from net
investment income (0.89)(2) (1.13) (1.31) (1.15) (1.48) (1.10)
Distributions from net
realized gains from
investment transactions -- (0.53) -- -- -- (0.30)
Distributions from
paid-in-capital -- (0.02) (0.27) (0.46) -- --
Distributions in excess of
net investment income -- -- -- -- (0.09) --
Total dividends and
distributions to
shareholders (0.89) (1.68) (1.58) (1.61) (1.57) (1.40)
Net increase in net asset
value resulting from
repurchase of
common stock -- -- -- 0.01 0.14 0.16
NET ASSET VALUE,
END OF PERIOD $ 15.34 $ 15.92 $ 14.14 $ 14.16 $ 14.42 $ 13.66
MARKET VALUE, END OF PERIOD $ 16.26 $ 17.07 $ 13.87 $ 12.98 $ 12.63 $ 11.50
TOTAL INVESTMENT RETURN(1) 0.15% 36.52% 19.38% 15.80% 24.55% 13.23%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end
of period (000's) $ 298,184 $ 309,516 $ 274,968 $ 275,205 $ 281,955 $ 284,266
Expenses to average
net assets 1.40%* 1.43% 1.43% 1.41% 1.39% 1.42%
Net investment income
to average net assets 5.56%* 6.66% 7.23% 8.46% 10.12% 8.27%
Portfolio turnover 64% 53% 57% 51% 43% 33%
</Table>
(1) Total investment return is calculated assuming a purchase of common stock
at the current market price on the first day of each period reported and a
sale at the current market price on the last day of each period reported,
and assuming reinvestment of dividends and other distributions, if any, at
prices obtained under the Fund's Dividend Reinvestment Plan. Total
investment return does not reflect brokerage commissions or the deduction
of taxes that a shareholder would pay on Fund dividends/distributions.
Total investment return for periods of less than one year has not been
annualized.
(2) The actual sources of the Fund's fiscal year 2004 dividends/distributions
may be net investment income, net realized capital gains, return of capital
or a combination of the foregoing and may be subject to retroactive
recharacterization at the end of the Fund's fiscal year based on tax
regulations. Shareholders will be informed of the tax characteristics of
dividends/distributions after the close of the 2004 fiscal year.
+ As required, effective as of November 1, 2001, the Fund has adopted the
provisions of the AICPA Audit and Accounting Guide, Audits of Investment
Companies, and began amortizing premium on debt securities for financial
statement reporting purposes only. The effect of this change for the year
ended October 31, 2002 was to decrease net investment income per share by
$0.02, increase net realized and unrealized gains from investment
activities per share by $0.02, and decrease the ratio of net investment
income to average net assets from 7.35% to 7.23%. Per share ratios and
supplemental data for years prior to November 1, 2001 have not been
restated to reflect this change in presentation.
* Annualized.
20
<Page>
GLOBAL HIGH INCOME DOLLAR FUND INC.
General Information (unaudited)
THE FUND
Global High Income Dollar Fund Inc. (the "Fund") is a non-diversified,
closed-end management investment company whose shares trade on the New York
Stock Exchange ("NYSE"). The Fund's primary investment objective is to achieve a
high level of current income. As a secondary objective, the Fund seeks capital
appreciation to the extent consistent with its primary objective. The Fund's
investment advisor and administrator is UBS Global Asset Management (US) Inc.
("UBS Global AM"), an indirect wholly owned asset management subsidiary of UBS
AG, which had over $55.9 billion in assets under management as of March 31,
2004.
SHAREHOLDER INFORMATION
The Fund's NYSE trading symbol is "GHI." Comparative net asset value and market
price information about the fund is published weekly in THE WALL STREET JOURNAL,
THE NEW YORK TIMES AND BARRON'S, as well as in numerous other publications.
An annual meeting of shareholders of the Fund was held on February 19, 2004. At
the meeting, Margo N. Alexander, Richard Q. Armstrong, David J. Beaubien,
Richard R. Burt, Meyer Feldberg, Carl W. Schafer, Brian M. Storms and William D.
White were elected to serve as directors until the next annual meeting of
shareholders, or until their successors are elected and qualified or until they
resign or are otherwise removed. The shares were voted as indicated below:
<Table>
<Caption>
SHARES
SHARES WITHHOLD
TO ELECT EIGHT MEMBERS OF ITS BOARD OF DIRECTORS: VOTED FOR AUTHORITY
- -------------------------------------------------------------------------------------
Margo N. Alexander 18,197,253.5492 204,952.7554
Richard Q. Armstrong 18,202,853.5492 199,352.7554
David J. Beaubien 18,192,914.5492 209,291.7554
Richard R. Burt 18,200,934.5492 201,271.7554
Meyer Feldberg 18,196,133.5492 206,072.7554
Carl W. Schafer 18,190,122.5492 212,083.7554
Brian M. Storms 18,213,627.5492 188,578.7554
William D. White 18,198,992.5492 203,213.7554
</Table>
Mr. Storms has since resigned from the Fund's Board.
To the best of the Fund's knowledge, there were no "broker non-votes." (A
"broker non-vote" results when a broker has the authority to vote unvoted
underlying shares.)
PROXY VOTING POLICIES AND PROCEDURES
You may obtain a description of the Fund's proxy voting policies and procedures,
without charge, upon request by contacting the Fund directly at 1-800-647-1568,
online on the Fund's Web site: www.ubs.com/ubsglobalam-proxy, or on the EDGAR
Database on the SEC's Web site (http://www.sec.gov).
21
<Page>
DIVIDEND REINVESTMENT PLAN
The Fund's Board has established a Dividend Reinvestment Plan (the "Plan") under
which all shareholders whose shares are registered in their own names, or in the
name of UBS Financial Services Inc. or its nominee, will have all dividends and
other distributions on their shares of common stock automatically reinvested in
additional shares, unless such shareholders elect to receive cash. Shareholders
who elect to hold their shares in the name of another broker or nominee should
contact such broker or nominee to determine whether, or how, they may
participate in the Plan. The ability of such shareholders to participate in the
Plan may change if their shares are transferred into the name of another broker
or nominee.
A shareholder may elect not to participate in the Plan or may terminate
participation in the Plan at any time without penalty, and shareholders who have
previously terminated participation in the Plan may rejoin it at any time.
Changes in elections must be made in writing to the Fund's transfer agent and
should include the shareholder's name and address as they appear on that share
certificate or in the transfer agent's records. An election to terminate
participation in the Plan, until such election is changed, will be deemed an
election by a shareholder to take all subsequent distributions in cash. An
election will be effective only for distributions declared and having a record
date at least ten days after the date on which the election is received.
Additional shares of common stock acquired under the Plan will be purchased in
the open market, on the NYSE or otherwise, at prices that may be higher or lower
than the net asset value per share at the time of the purchase. Investors should
consider whether continued participation in the dividend reinvestment plan is
appropriate for them when the Fund's market price exceeds its net asset value; a
portion of a dividend may represent a return of capital, which would be
reinvested in the Fund at a premium to net asset value. The number of shares of
common stock purchased with each dividend will be equal to the result obtained
by dividing the amount of the dividend payable to a particular shareholder by
the average price per share (including applicable brokerage commissions) that
the transfer agent was able to obtain in the open market. The Fund will not
issue any new shares in connection with the Plan. There currently is no charge
to participants for reinvesting dividends or other distributions. The transfer
agents fees for handling the reinvestment of distributions are paid by the Fund.
However, each participant pays a pro rata share of brokerage commissions
incurred with respect to the transfer agent's open market purchases of common
stock in connection with the reinvestment of distributions. The automatic
reinvestment of dividends and other distributions in shares of common stock does
not relieve participants of any income tax that may be payable on such
distributions.
Experience under the Plan may indicate that changes are desirable. Accordingly,
the Fund reserves the right to amend or terminate the Plan with respect to any
22
<Page>
dividend or other distribution if notice of the change is sent to Plan
participants at least 30 days before the record date for such distribution. The
Plan also may be amended or terminated by the transfer agent by at least 30
days' written notice to all Plan participants. Additional information regarding
the Plan may be obtained from, and all correspondence concerning the Plan should
be directed to, the transfer agent at PFPC Inc., P.O. Box 43027. Providence,
Rhode Island 02940-3027. For further information regarding the Plan, you may
also contact the transfer agent directly at 1-800-331-1710.
DISTRIBUTION POLICY
The Fund's Board adopted a managed distribution policy in December 1999, which
means that the Fund will make regular monthly distributions at an annualized
rate equal to 11% of the Fund's net asset value, as determined as of the last
trading day during the first week of that month (usually a Friday unless the
NYSE is closed that Friday). Prior to December 20, 1999, the Fund's
distributions varied based on the Fund's net investment income and realized
capital gains or losses.
To the extent that the Fund's taxable income in any fiscal year exceeds the
aggregate amount distributed based on a fixed percentage of its net asset value,
the Fund would distribute that excess near the end of the fiscal year. If the
aggregate amount distributed by the Fund (based on a fixed percentage of its net
asset value) exceeds its taxable income, the amount of that excess would
constitute a return of capital for tax purposes.
Monthly distributions based on a fixed percentage of the Fund's net asset value
may require the Fund to make multiple distributions of long-term capital gains
during a single fiscal year. The Fund has received exemptive relief from the
Securities and Exchange Commission that enables it to do so. The Fund's Board
will annually reassess the annualized percentage of net assets at which the
Fund's monthly distributions will be made.
23
<Page>
(This page intentionally left blank).
<Page>
DIRECTORS
Richard Q. Armstrong
INTERIM CHAIRMAN
Margo N. Alexander
David J. Beaubien
Richard R. Burt
Meyer Feldberg
Carl W. Schafer
William D. White
PRINCIPAL OFFICERS
Joseph A. Varnas
PRESIDENT
Keith A. Weller
VICE PRESIDENT AND ASSISTANT SECRETARY
Paul H. Schubert
VICE PRESIDENT AND TREASURER
W. Douglas Beck
VICE PRESIDENT
INVESTMENT ADVISOR AND ADMINISTRATOR
UBS Global Asset Management (US) Inc.
51 West 52nd Street
New York, New York 10019-6114
NOTICE IS HEREBY GIVEN IN ACCORDANCE WITH SECTION 23(c) OF THE INVESTMENT
COMPANY ACT OF 1940 THAT FROM TIME TO TIME THE FUND MAY PURCHASE SHARES OF ITS
COMMON STOCK IN THE OPEN MARKET AT MARKET PRICES.
THIS REPORT IS SENT TO THE SHAREHOLDERS OF THE FUND FOR THEIR INFORMATION. IT IS
NOT A PROSPECTUS, CIRCULAR OR REPRESENTATION INTENDED FOR THE USE IN THE
PURCHASE OR SALE OF SHARES OF THE FUND OR OF ANY SECURITIES MENTIONED IN THIS
REPORT.
THE FINANCIAL INFORMATION INCLUDED HEREIN IS TAKEN FROM THE RECORDS OF THE FUND
WITHOUT EXAMINATION BY INDEPENDENT AUDITORS WHO DO NOT EXPRESS AN OPINION
THEREON.
(C)2004 UBS GLOBAL ASSET MANAGEMENT (US) INC. ALL RIGHTS RESERVED.
<Page>
[UBS LOGO]
Presorted
Standard
US Postage
PAID
Smithtown, NY
Permit 700
UBS GLOBAL ASSET MANAGEMENT (US) INC.
51 West 52nd Street
New York, New York 10019
<Page>
ITEM 2. CODE OF ETHICS.
Form N-CSR disclosure requirement not applicable to this filing of a semi-annual
report.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Form N-CSR disclosure requirement not applicable to this filing of a semi-annual
report.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Form N-CSR disclosure requirement not applicable to this filing of a semi-annual
report.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Form N-CSR disclosure requirement not applicable to this filing of a semi-annual
report.
ITEM 6. SCHEDULE OF INVESTMENTS
Form N-CSR disclosure requirement not yet effective with respect to the
registrant.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Form N-CSR disclosure requirement not applicable to this filing of a semi-annual
report.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Form N-CSR disclosure requirement not yet effective with respect to the
registrant.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The registrant's Board has established a Nominating Committee. The Nominating
Committee will consider nominees recommended by shareholders if a vacancy occurs
among those board members who are not "interested persons" as defined in Section
2(a)(19) of the Investment Company Act of 1940, as amended. In order to
recommend a nominee, a shareholder should send a letter to the chairperson of
the Nominating Committee, Mr. Meyer Feldberg, care of the Secretary of the
registrant at UBS Global Asset Management (US) Inc., 51 West 52nd Street, New
York, New York 10019-6114, and indicate on the envelope "Nominating Committee."
The shareholder's letter should state the nominee's name and should
<Page>
include the nominee's resume or curriculum vitae, and must be accompanied by a
written consent of the individual to stand for election if nominated for the
Board and to serve if elected by shareholders.
ITEM 10. 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) are effective based on their evaluation of
these controls and procedures as of a date within 90 days of the
filing date of this document.
(b) The registrant's principal executive officer and principal financial
officer are aware of no changes in the registrant's internal control
over financial reporting that occurred during the registrant's most
recent fiscal half-year that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 11. EXHIBITS.
(a) (1) Code of Ethics - Form N-CSR disclosure requirement not applicable
to this filing of a semi-annual report.
(a) (2) Certifications of principal executive officer and principal
financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of
2002 is attached hereto as Exhibit EX-99.CERT.
(b) Certifications of principal executive officer and principal financial
officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is
attached hereto as Exhibit EX-99.906CERT.
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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, thereunto duly authorized.
Global High Income Dollar Fund Inc.
By: /s/ Joseph A. Varnas
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Joseph A. Varnas
President
Date: July 6, 2004
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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/ Joseph A. Varnas
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Joseph A. Varnas
President
Date: July 6, 2004
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By: /s/ Paul H. Schubert
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Paul H. Schubert
Treasurer
Date: July 6, 2004
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