UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811- 21337
Salomon Brothers Global High Income Fund Inc.
(Exact name of registrant as specified in charter)
125 Broad Street, New York, NY 10004
(Address of principal executive offices) (Zip code)
Robert I. Frenkel, Esq.
Salomon Brothers Asset Management Inc
300 First Stamford Place
Stamford, CT 06902
(Name and address of agent for service)
Registrants telephone number, including area code: 1-800-725-6666
Date of fiscal year end: May 31
Date of reporting period: February 28, 2005
ITEM 1. SCHEDULE OF INVESTMENTS
SALOMON BROTHERS
GLOBAL HIGH INCOME FUND INC.
FORM N-Q
FEBRUARY 28, 2005
SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.
Schedule of Investments (unaudited) |
February 28, 2005 |
FACE AMOUNT |
SECURITY (a) |
VALUE | ||||
U.S. GOVERNMENT AGENCIES AND OBLIGATIONS (b)(c) - 26.7% | ||||||
Federal Home Loan Mortgage Corporation (FHLMC) Gold: | ||||||
$ | 70,000,000 | 5.000%, 30 year | $ | 69,081,250 | ||
10,000,000 | 5.500%, 30 year | 10,096,880 | ||||
10,000,000 | 6.000%, 30 year | 10,268,750 | ||||
Federal National Mortgage Association (FNMA): | ||||||
40,000,000 | 4.500%, 30 year | 38,487,520 | ||||
20,000,000 | 5.500%, 30 year | 20,168,760 | ||||
55,000,000 | 6.000%, 30 year | 56,426,590 | ||||
TOTAL U.S. GOVERNMENT AGENCIES AND OBLIGATIONS (Cost - $201,549,221) |
204,529,750 | |||||
CORPORATE BONDS & NOTES - 29.7% | ||||||
Basic Industries - 5.5% | ||||||
1,200,000 | Ainsworth Lumber Co. Ltd., Sr. Notes, 7.250% due 10/1/12 (d) | 1,236,000 | ||||
475,000 | AK Steel Corp., Sr. Notes, 7.875% due 2/15/09 | 490,437 | ||||
750,000 | Aleris International Inc., Sr. Secured Notes, 10.375% due 10/15/10 | 851,250 | ||||
700,000 | Anchor Glass Container Corp., Sr. Secured Notes, 11.000% due 2/15/13 | 726,250 | ||||
Appleton Papers Inc.: | ||||||
375,000 | Sr. Notes, 8.125% due 6/15/11 |
398,437 | ||||
375,000 | Sr. Sub. Notes, Series B, 9.750% due 6/15/14 |
404,063 | ||||
1,750,000 | Applied Extrusion Technologies, Inc., Sr. Notes, Series B, | |||||
10.750% due 7/1/11 (e)(f) |
997,500 | |||||
715,000 | BCP Crystal U.S. Holdings, Corp., Sr. Sub. Notes, | |||||
9.625% due 6/15/14 (d) |
829,400 | |||||
1,250,000 | Berry Plastics Corp., Sr. Sub. Notes, 10.750% due 7/15/12 | 1,431,250 | ||||
300,000 | Borden U.S. Finance Corp., Sr. Secured Notes, 9.000% due 7/15/14 (d) | 335,250 | ||||
800,000 | Bowater Inc., Debentures, 9.500% due 10/15/12 | 935,365 | ||||
1,500,000 | Buckeye Technologies Inc., Sr. Sub. Notes, 8.000% due 10/15/10 | 1,526,250 | ||||
750,000 | Equistar Chemicals L.P., Sr. Notes, 10.625% due 5/1/11 | 870,000 | ||||
1,200,000 | Hercules Inc., Sr. Sub. Notes, 6.750% due 10/15/29 | 1,242,000 | ||||
1,000,000 | Huntsman Advanced Materials LLC, Sr. Secured Notes, | |||||
11.000% due 7/15/10 (d) |
1,182,500 | |||||
762,000 | Huntsman International LLC, Sr. Sub. Notes, 10.125% due 7/1/09 | 804,862 | ||||
525,000 | IPSCO Inc., Sr. Notes, 8.750% due 6/1/13 | 597,187 | ||||
50,000 | ISP Holdings Inc., Sr. Secured Notes, Series B, 10.625% due 12/15/09 | 54,750 | ||||
341,000 | Ispat Inland ULC, Sr. Secured Notes, 9.750% due 4/1/14 | 417,725 | ||||
275,000 | Jefferson Smurfit Corp., Sr. Notes, 8.250% due 10/1/12 | 298,375 | ||||
1,250,000 | JSG Funding PLC, Sr. Notes, 9.625% due 10/1/12 | 1,390,625 | ||||
1,500,000 | Koppers Inc., Sr. Secured Notes, 9.875% due 10/15/13 | 1,717,500 | ||||
1,425,000 | Lyondell Chemical Co., Sr. Secured Notes, Series A, 9.625% due 5/1/07 | 1,567,500 | ||||
1,000,000 | Millennium America Inc., Sr. Notes, 9.250% due 6/15/08 | 1,117,500 | ||||
200,000 | Mueller Group Inc., Sr. Sub. Notes, 10.000% due 5/1/12 | 221,000 | ||||
925,000 | Mueller Holdings Inc., Discount Notes, zero coupon until 4/15/09, | |||||
14.750% thereafter, due 4/15/14 |
672,938 | |||||
1,125,000 | Nalco Co., Sr. Sub. Notes, 8.875% due 11/15/13 | 1,248,750 | ||||
1,375,000 | NewMarket Corp., Sr. Notes, 8.875% due 5/1/10 | 1,519,375 |
See Notes to Schedule of Investments.
1
SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.
Schedule of Investments (unaudited) (continued) |
February 28, 2005 |
FACE AMOUNT |
SECURITY (a) |
VALUE | ||||
Basic Industries - 5.5% (continued) | ||||||
$ | 600,000 | Novelis Inc., Sr. Notes, 7.250% due 2/15/15 (d) | $ | 624,000 | ||
775,000 | OM Group, Inc., Sr. Sub. Notes, 9.250% due 12/15/11 | 837,000 | ||||
1,575,000 | Owens-Illinois Inc., Sr. Notes, 7.350% due 5/15/08 | 1,661,625 | ||||
1,450,000 | Plastipak Holdings, Inc., Sr. Notes, 10.750% due 9/1/11 | 1,645,750 | ||||
Pliant Corp.: | ||||||
Sr. Secured Notes: | ||||||
100,000 | 11.125% due 9/1/09 | 108,500 | ||||
400,000 | Zero coupon until, 12/15/06, 11.125% thereafter, due 6/15/09 | 378,000 | ||||
225,000 | Sr. Sub. Notes, 13.000% due 6/1/10 | 221,063 | ||||
600,000 | PQ Corp., Sr. Sub. Notes, 7.500% due 2/15/13 (d) | 624,750 | ||||
1,500,000 | Radnor Holdings Corp., Sr. Notes, 11.000% due 3/15/10 | 1,327,500 | ||||
750,000 | Resolution Performance Products, Inc., Sr. Sub. Notes, 13.500% due 11/15/10 | 826,875 | ||||
1,575,000 | Rhodia S.A., Sr. Sub. Notes, 8.875% due 6/1/11 | 1,641,938 | ||||
Smurfit-Stone Container Enterprises Inc., Sr. Notes: | ||||||
950,000 | 9.750% due 2/1/11 | 1,039,063 | ||||
1,000,000 | 8.375% due 7/1/12 | 1,087,500 | ||||
25,000 | Stone Container Finance Company of Canada II., Sr. Notes, 7.375% due 7/15/14 | 26,406 | ||||
1,400,000 | Tekni-Plex, Inc., Sr. Sub. Notes, Series B, 12.750% due 6/15/10 | 1,253,000 | ||||
1,129,000 | United Agri Products., Sr. Notes, 9.000% due 12/15/11 (d) | 1,224,965 | ||||
894,000 | Westlake Chemical Corp., Sr. Notes, 8.750% due 7/15/11 | 1,001,280 | ||||
1,150,000 | Wolverine Tube, Inc., Sr. Notes, 10.500% due 4/1/09 | 1,230,500 | ||||
41,843,754 | ||||||
Consumer Cyclicals - 2.4% | ||||||
1,100,000 | AMF Bowling Worldwide, Inc., Sr. Sub. Notes, 10.000% due 3/1/10 | 1,138,500 | ||||
2,000,000 | Buffets, Inc., Sr. Sub. Notes, 11.250% due 7/15/10 | 2,150,000 | ||||
1,600,000 | Cinemark Inc., Sr. Discount Notes, zero coupon until 3/15/09, | |||||
9.750% thereafter, due 3/15/14 | 1,204,000 | |||||
875,000 | Dennys Corp., Sr. Notes, 10.000% due 10/1/12 (d) | 955,937 | ||||
Eye Care Centers of America, Inc., Sr. Sub. Notes: | ||||||
2,000,000 | 6.280% due 5/1/08 (g) | 2,015,000 | ||||
325,000 | 9.125% due 5/1/08 | 336,505 | ||||
375,000 | 10.750% due 2/15/15 (d) | 372,187 | ||||
675,000 | FelCor Lodging L.P., Sr. Notes, 9.000% due 6/1/11 | 766,969 | ||||
800,000 | Finlay Fine Jewelry Corp., Sr. Notes, 8.375% due 6/1/12 | 776,000 | ||||
600,000 | Gaylord Entertainment Co., Sr. Notes, 6.750% due 11/15/14 (d) | 609,000 | ||||
2,275,000 | Host Marriott L.P., Sr. Notes, 7.125% due 11/1/13 | 2,428,562 | ||||
1,100,000 | Interface, Inc., Sr. Sub. Notes, 9.500% due 2/1/14 | 1,201,750 | ||||
1,000,000 | John Q. Hammons Hotels L.P., 1st Mortgage, Notes, Series B, | |||||
8.875% due 5/15/12 | 1,118,750 | |||||
75,000 | LCE Acquisition Corp., 9.000% due 8/1/14 (d) | 78,938 | ||||
Levi Strauss & Co., Sr. Notes: | ||||||
225,000 | 12.250% due 12/15/12 | 258,750 | ||||
900,000 | 9.750% due 1/15/15 (d) | 952,875 | ||||
1,000,000 | MeriStar Hospitality Operating Partnership, L.P., Sr. Notes, | |||||
10.500% due 6/15/09 | 1,090,000 |
See Notes to Schedule of Investments.
2
SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.
Schedule of Investments (unaudited) (continued) |
February 28, 2005 |
FACE AMOUNT |
SECURITY (a) |
VALUE | ||||
Consumer Cyclicals - 2.4% (continued) | ||||||
Six Flags, Inc., Sr. Notes: | ||||||
$ | 250,000 | 9.750% due 4/15/13 | $ | 238,750 | ||
200,000 | 9.625% due 6/1/14 | 188,500 | ||||
275,000 | 9.625% due 6/1/14 (d) | 259,188 | ||||
18,140,161 | ||||||
Consumer Non-Cyclicals - 6.3% | ||||||
925,000 | aaiPharma Inc., Sr. Sub. Notes, 12.000% due 4/1/10 | 666,000 | ||||
605,674 | Ahold Lease U.S.A., Inc., Pass-Through Certificates, Series A-1, | |||||
7.820% due 1/2/20 | 674,191 | |||||
1,100,000 | AmeriPath, Inc., Sr. Notes, 10.500% due 4/1/13 | 1,149,500 | ||||
337,000 | Applica Inc., Sr. Sub. Notes, 10.000% due 7/31/08 | 338,685 | ||||
725,000 | Athena Neurosciences Finance LLC, Sr. Notes, 7.250% due 2/21/08 | 670,625 | ||||
625,000 | Bear Creek Corp., Sr. Notes, 9.000% due 3/1/13 (d) | 643,750 | ||||
650,000 | Caesars Entertainment Inc., Sr. Sub. Notes, 8.875% due 9/15/08 | 736,937 | ||||
575,000 | Choctaw Resort Development Enterprise., Sr. Notes, 7.250% due 11/15/19 (d) | 595,125 | ||||
775,000 | Community Health Systems Inc., Sr. Sub. Notes, 6.500% due 12/15/12 (d) | 783,719 | ||||
575,000 | Dean Foods Co., Sr. Notes, 6.900% due 10/15/17 | 606,625 | ||||
1,225,000 | DEL Laboratories, Inc., Sr. Sub. Notes, 8.000% due 2/1/12 (d) | 1,215,812 | ||||
1,500,000 | Doane Pet Care Co., Sr. Sub. Notes, 9.750% due 5/15/07 | 1,455,000 | ||||
1,125,000 | Dole Food Co. Inc., Sr. Notes, 8.875% due 3/15/11 | 1,223,437 | ||||
80,000 | Elan Pharmaceutical Investments, III Ltd., Notes, Series B, | |||||
7.720% due 3/15/05 | 78,800 | |||||
585,000 | Elizabeth Arden, Inc., Sr. Secured Notes, Series B, 11.750% due 2/1/11 | 655,931 | ||||
750,000 | Extendicare Health Services, Inc., Sr. Notes, 9.500% due 7/1/10 | 830,625 | ||||
1,075,000 | Genesis HealthCare Corp., Sr. Sub. Notes, 8.000% due 10/15/13 | 1,187,875 | ||||
750,000 | Global Cash Access LLC, Sr. Sub. Notes, 8.750% due 3/15/12 | 819,375 | ||||
HCA Inc.: | ||||||
2,025,000 | Debentures, 7.050% due 12/1/27 | 1,988,461 | ||||
400,000 | Notes, 6.375% due 1/15/15 | 407,985 | ||||
825,000 | Herbst Gaming Inc., Sr. Sub. Notes, 7.000% due 11/15/14 (d) | 841,500 | ||||
1,400,000 | Hines Nurseries, Inc., Sr. Notes, 10.250% due 10/1/11 | 1,536,500 | ||||
2,500,000 | Home Interiors & Gifts, Inc., Sr. Sub. Notes, 10.125% due 6/1/08 | 2,112,500 | ||||
1,675,000 | IASIS Healthcare LLC, Sr. Sub. Notes, 8.750% due 6/15/14 | 1,829,937 | ||||
1,625,000 | Icon Health & Fitness, Inc., Sr. Sub. Notes, 11.250% due 4/1/12 | 1,259,375 | ||||
1,375,000 | Inn of the Mountain Gods Resort & Casino, Sr. Notes, 12.000% due 11/15/10 | 1,636,250 | ||||
425,000 | InSight Health Services Corp., Sr. Sub. Notes, Series B, 9.875% due 11/1/11 | 437,750 | ||||
1,150,000 | Isle of Capri Casinos, Inc., Sr. Sub. Notes, 7.000% due 3/1/14 | 1,198,875 | ||||
990,000 | Jafra Cosmetics International, Inc., Sr. Sub. Notes, 10.750% due 5/15/11 | 1,145,925 | ||||
375,000 | Jean Coutu Group Inc., Sr. Sub. Notes, 8.500% due 8/1/14 | 386,250 | ||||
975,000 | Las Vegas Sands Corp., Sr. Notes, 6.375% due 2/15/15 (d) | 970,125 | ||||
415,000 | Medical Device Manufacturing Inc., Sr. Sub. Notes, 10.000% due 7/15/12 (d) | 454,425 | ||||
MGM MIRAGE, Sr. Notes: | ||||||
1,600,000 | 6.750% due 9/1/12 | 1,700,000 | ||||
675,000 | 5.875% due 2/27/14 | 676,688 |
See Notes to Schedule of Investments.
3
SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.
Schedule of Investments (unaudited) (continued) |
February 28, 2005 |
FACE AMOUNT |
SECURITY (a) |
VALUE | ||||
Consumer Non-Cyclicals - 6.3% (continued) | ||||||
Mohegan Tribal Gaming Authority, Sr. Sub. Notes: | ||||||
$ | 550,000 | 7.125% due 8/15/14 | $ | 575,438 | ||
625,000 | 6.875% due 2/15/15 | 643,750 | ||||
775,000 | National Mentor Inc., Sr. Sub. Notes, 9.625% due 12/1/12 (d) | 823,438 | ||||
Pinnacle Entertainment, Inc., Sr. Sub. Notes: | ||||||
1,000,000 | 8.250% due 3/15/12 | 1,072,500 | ||||
800,000 | 8.750% due 10/1/13 | 884,000 | ||||
600,000 | Pinnacle Foods Holding Corp., Sr. Sub. Notes, 8.250% due 12/1/13 | 549,000 | ||||
667,000 | Psychiatric Solutions, Inc., Sr. Sub. Notes, 10.625% due 6/15/13 | 775,388 | ||||
525,000 | Sealy Mattress Co., Sr. Sub. Notes, 8.250% due 6/15/14 | 552,563 | ||||
1,150,000 | Seneca Gaming Corp., Sr. Notes, 7.250% due 5/1/12 | 1,204,625 | ||||
Simmons Bedding Co.: | ||||||
1,375,000 | Sr. Discount Notes, zero coupon until 12/15/09, 10.000% thereafter, due 12/15/14 (d) |
900,625 | ||||
350,000 | Sr. Sub. Notes, 7.875% due 1/15/14 | 366,625 | ||||
1,125,000 | Station Casinos, Inc., Sr. Sub. Notes, 6.875% due 3/1/16 | 1,191,094 | ||||
250,000 | Swift & Co., Sr. Notes, 10.125% due 10/1/09 | 280,625 | ||||
1,061,000 | Tempur-Pedic Inc. & Tempur Production U.S.A. Inc., Sr. Sub. Notes, | |||||
10.250% due 8/15/10 | 1,214,845 | |||||
Tenet Healthcare Corp.: | ||||||
125,000 | Notes, 7.375% due 2/1/13 | 119,063 | ||||
Sr. Notes.: | ||||||
1,250,000 | 6.500% due 6/1/12 | 1,159,375 | ||||
525,000 | 9.875% due 7/1/14 (d) | 561,750 | ||||
2,000,000 | Turning Stone Casino Resort Enterprise, Sr. Notes, 9.125% due 12/15/10 (d) | 2,200,000 | ||||
650,000 | Vanguard Health Holding Co. I LLC, Sr. Discount Notes, zero coupon until 10/1/09, 11.250% thereafter, due 10/1/15 |
476,125 | ||||
48,465,387 | ||||||
Energy - 3.4% | ||||||
1,350,000 | Chesapeake Energy Corp., Sr. Notes, 6.375% due 6/15/15 (d) | 1,434,375 | ||||
1,100,000 | Dresser-Rand Group Inc., Sr. Sub. Notes, 7.375% due 11/1/14 (d) | 1,155,000 | ||||
Dynegy Holdings Inc., Sr. Secured Notes.: | ||||||
3,000,000 | 9.160% due 7/15/08 (d)(g) | 3,266,250 | ||||
350,000 | 10.125% due 7/15/13 (d) | 400,750 | ||||
El Paso Corp.: | ||||||
125,000 | Notes, 7.875% due 6/15/12 | 132,500 | ||||
Sr. Notes: | ||||||
2,050,000 | 7.375% due 12/15/12 | 2,106,375 | ||||
1,400,000 | 7.750% due 1/15/32 | 1,417,500 | ||||
600,000 | Holly Energy Partners, L.P., Sr. Notes, 6.250% due 3/1/15 (d) | 606,000 | ||||
812,000 | Magnum Hunter Resources, Inc., Sr. Notes, 9.600% due 3/15/12 | 929,740 | ||||
PEMEX Project Funding Master Trust: | ||||||
5,000,000 | 8.625% due 12/1/23 (d) | 6,012,500 | ||||
800,000 | 9.500% due 9/15/27 (d) | 1,046,000 | ||||
3,625,000 | Petronas Capital Ltd., 7.875% due 5/22/22 (d) | 4,580,053 | ||||
275,000 | Swift Energy Co., Sr. Sub. Notes, 9.375% due 5/1/12 | 307,313 | ||||
575,000 | Texas Genco LLC, Sr. Notes, 6.875% due 12/15/14 (d) | 616,688 |
See Notes to Schedule of Investments.
4
SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.
Schedule of Investments (unaudited) (continued) |
February 28, 2005 |
FACE AMOUNT |
SECURITY (a) |
VALUE | ||||
Energy - 3.4% (continued) | ||||||
The Williams Cos., Inc., Notes: | ||||||
$ | 1,000,000 | 7.625% due 7/15/19 | $ | 1,160,000 | ||
950,000 | 8.750% due 3/15/32 | 1,206,500 | ||||
26,377,544 | ||||||
Housing Related - 0.3% | ||||||
125,000 | Collins & Aikman Floor Coverings Inc., Sr. Sub. Notes, Series B, |
135,625 | ||||
1,400,000 | Norcraft Cos. L.P., Sr. Sub. Notes, 9.000% due 11/1/11 | 1,512,000 | ||||
450,000 | Nortek Inc., Sr. Sub.Notes, 8.500% due 9/1/14 | 461,250 | ||||
2,108,875 | ||||||
Manufacturing - 2.3% | ||||||
550,000 | Case New Holland Inc., Sr. Notes, 9.250% due 8/1/11 (d) | 607,750 | ||||
1,150,000 | DRS Technologies Inc., Sr. Sub. Notes, 6.875% due 11/1/13 (d) | 1,213,250 | ||||
1,350,000 | Eagle-Picher Industries, Inc., Sr. Notes, 9.750% due 9/1/13 | 1,113,750 | ||||
2,450,000 | Ford Motor Co., Notes, 7.450% due 7.450% due 7/16/31 | 2,368,929 | ||||
200,000 | General Binding Corp., Sr. Sub. Notes, 9.375% due 6/1/08 | 199,000 | ||||
General Motors Acceptance Corp., Notes: | ||||||
250,000 | 6.750% due 12/1/14 | 240,911 | ||||
1,775,000 | 8.000% due 11/1/31 | 1,785,446 | ||||
2,225,000 | General Motors Corp., Debentures, 8.375% due 7/15/33 | 2,191,474 | ||||
750,000 | Keystone Automotive Operations Inc., Sr. Sub. Notes, 9.750% due 11/1/13 | 802,500 | ||||
550,000 | Kinetek, Inc., Sr. Notes, Series D, 10.750% due 11/15/06 | 537,625 | ||||
650,000 | Moog Inc., Sr. Sub. Notes, 6.250% due 1/15/15 | 669,500 | ||||
800,000 | Sensus Metering Systems, Inc., Sr. Sub. Notes, 8.625% due 12/15/13 | 830,000 | ||||
Sequa Corp., Sr. Notes.: | ||||||
225,000 | 9.000% due 8/1/09 | 250,875 | ||||
1,250,000 | Series B, 8.875% due 4/1/08 | 1,368,750 | ||||
75,000 | Tenneco Automotive Inc., Sr. Sub. Notes, 8.625% due 11/15/14 (d) | 80,250 | ||||
375,000 | The Titan Corp., Sr. Sub. Notes, 8.000% due 5/15/11 | 405,000 | ||||
892,000 | TRW Automotive Inc., Sr. Notes, 9.375% due 2/15/13 | 1,012,420 | ||||
Wesco Distribution, Inc., Sr. Sub. Notes: | ||||||
1,000,000 | 9.125% due 6/1/08 | 1,030,420 | ||||
990,000 | Series B, 9.125% due 6/1/08 | 1,020,116 | ||||
17,727,966 | ||||||
Media-Cable - 4.0% | ||||||
Cablevision Systems Corp., Sr. Notes: | ||||||
1,825,000 | 6.669% due 4/1/09 (d)(g) | 2,044,000 | ||||
1,450,000 | 8.000% due 4/15/12 (d) | 1,638,500 | ||||
3,487,678 | Canwest Media Inc., Sr. Sub. Notes, 8.000% due 9/1512 (d) | 3,775,411 | ||||
Charter Communications Holdings, LLC: | ||||||
2,500,000 | Sr. Discount Notes, zero coupon until 5/15/06, | 1,806,250 | ||||
11.750% thereafter, due 5/15/11 | ||||||
Sr. Notes: | ||||||
650,000 | 8.250% due 4/1/07 | 611,000 | ||||
1,500,000 | 10.000% due 5/15/11 | 1,233,750 |
See Notes to Schedule of Investments.
5
SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.
Schedule of Investments (unaudited) (continued) |
February 28, 2005 |
FACE AMOUNT |
SECURITY (a) |
VALUE | ||||
Media-Cable - 4.0% (continued) | ||||||
$ | 1,050,000 | Dex Media Inc., Discount Notes, zero coupon until 11/15/08, |
$ | 832,125 | ||
1,367,000 | Dex Media West LLC/Dex Media Finance Co., Sr. Sub. Notes, Series B, |
1,575,467 | ||||
2,100,000 | DirecTV Holdings LLC, Sr. Notes, 8.375% due 3/15/13 | 2,383,500 | ||||
1,650,000 | EchoStar DBS Corp., Sr. Notes, 6.625% due 10/1/14 (d) | 1,703,625 | ||||
1,300,000 | Houghton Mifflin Co., Sr. Discount Notes, zero coupon until 10/15/08, |
923,000 | ||||
1,000,000 | Insight Midwest, L.P., Sr. Notes, 10.500% due 11/1/10 | 1,092,500 | ||||
500,000 | Interep National Radio Sales, Inc., Sr. Sub. Notes, Series B, |
398,750 | ||||
1,000,000 | LodgeNet Entertainment Corp., Sr. Sub. Debentures, 9.500% due 6/15/13 | 1,115,000 | ||||
525,000 | Mediacom Broadband LLC, Sr. Notes, 11.000% due 7/15/13 | 583,406 | ||||
275,000 | Mediacom LLC, Sr. Notes, 9.500% due 1/15/13 | 288,063 | ||||
850,000 | NextMedia Operating, Inc., Sr. Sub. Notes, 10.750% due 7/1/11 | 949,875 | ||||
175,000 | NTL Cable PLC, Sr. Notes, 8.750% due 4/15/14 (d) | 199,938 | ||||
1,100,000 | PanAmSat Corp., Sr. Notes, 9.000% due 8/15/14 | 1,215,500 | ||||
1,850,000 | Radio One, Inc., Sr. Sub. Notes, 6.375% due 2/15/13 (d) | 1,896,250 | ||||
1,000,000 | R.H. Donnelley Finance Corp. I, Sr. Sub. Notes, 10.875% due 12/15/12 | 1,177,500 | ||||
1,100,000 | Rogers Cable Inc., Sr. Secured Notes, 7.875% due 5/1/12 | 1,223,750 | ||||
575,000 | Sinclair Broadcast Group Inc., Sr. Sub. Notes, 8.000% due 3/15/12 | 612,375 | ||||
1,200,000 | Young Broadcasting Inc., Sr. Sub. Notes, 8.750% due 1/15/14 | 1,194,000 | ||||
30,473,535 | ||||||
Services/Other - 1.3% | ||||||
985,000 | Advanstar Communications Inc., Sr. Secured Notes, 10.294% due 8/15/08 (g) | 1,044,100 | ||||
225,000 | Allied Security Escrow Corp., Sr. Sub. Notes, 11.375% due 7/15/11 | 236,531 | ||||
Allied Waste North America, Inc., Series B: | ||||||
900,000 | Sr. Notes, 7.375% due 4/15/14 | 868,500 | ||||
1,400,000 | Sr. Secured Notes, 9.250% due 9/1/12 | 1,554,000 | ||||
Cenveo Corp., | ||||||
425,000 | Sr. Notes, 9.625 due 3/15/12 | 469,625 | ||||
825,000 | Sr. Sub. Notes, 7.875 due 12/1/13 | 771,375 | ||||
1,225,000 | DI Finance LLC, Sr. Sub. Notes, 9.500% due 2/15/13 (d) | 1,267,875 | ||||
Iron Mountain Inc., Sr. Sub. Notes: | ||||||
375,000 | 8.250% due 7/1/11 | 384,525 | ||||
750,000 | 8.625% due 4/1/13 | 789,375 | ||||
1,225,000 | 7.750% due 1/15/15 | 1,252,563 | ||||
1,375,000 | Muzak LLC, Sr. Notes, 10.000% due 2/15/09 | 1,237,500 | ||||
9,875,969 | ||||||
Technology - 0.5% | ||||||
Amkor Technology, Inc., | ||||||
1,150,000 | Sr. Notes, 9.250% due 2/15/08 | 1,132,750 | ||||
400,000 | Sr. Sub. Notes, 10.500% due 5/1/09 | 379,000 | ||||
2,625,000 | Lucent Technologies Inc., Debentures, 6.450% due 3/15/29 | 2,510,156 | ||||
4,021,906 | ||||||
See Notes to Schedule of Investments.
6
SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.
Schedule of Investments (unaudited) (continued) | February 28, 2005 |
FACE AMOUNT |
SECURITY (a) |
VALUE | ||||
Telecommunications - 2.3% | ||||||
Alamosa (Delaware), Inc.: | ||||||
$ | 679,000 | Sr. Discount Notes, zero coupon until 7/31/05, |
$ | 743,505 | ||
487,000 | Sr. Notes, 11.000% due 7/31/10 | 572,225 | ||||
277,000 | American Tower Corp., Sr. Notes, 9.375% due 2/1/09 | 292,235 | ||||
900,000 | AT&T Corp., Sr. Notes, 9.750% due 11/15/31 | 1,148,625 | ||||
375,000 | Centennial Cellular Communication Corp., Sr. Notes, 10.125% due 6/15/13 | 436,875 | ||||
Crown Castle International Corp., Sr. Notes: | ||||||
675,000 | 7.500% due 12/1/13 | 735,750 | ||||
1,000,000 | Series B, 7.500% due 12/1/13 | 1,090,000 | ||||
250,000 | Dobson Cellular Systems Inc., Sr. Secured Notes, 9.875% due 11/1/12 (d) | 266,250 | ||||
900,000 | Intelsat Ltd., Sr. Discount Notes, zero coupon until 2/1/10, | |||||
9.250% thereafter, due 2/1/15 (d) | 605,250 | |||||
300,000 | Intelsat (Bermuda) Ltd., Sr. Notes, 7.805% due 1/15/12 (d)(g) | 309,750 | ||||
1,700,000 | MCI Inc., Sr. Notes, 8.735% due 5/1/14 | 1,914,625 | ||||
175,000 | Nextel Communications, Inc., Sr. Notes, 7.375% due 8/1/15 | 192,500 | ||||
Qwest Services Corp., Notes: | ||||||
1,000,000 | 14.000% due 12/15/10 (d) | 1,192,500 | ||||
2,875,000 | 14.500% due 12/15/14 (d) | 3,622,500 | ||||
1,125,000 | Rogers Wireless Communications Inc., Sr. Secured Notes, 7.500% due 3/15/15 | 1,237,500 | ||||
SBA Communications Corp.: | ||||||
275,000 | Sr. Discount Notes, zero coupon until 12/15/07, | 242,000 | ||||
9.750% thereafter, due 12/15/11 | ||||||
900,000 | Sr. Notes, 8.500% due 12/1/12 (d) | 976,500 | ||||
700,000 | UbiquiTel Operating Co., Sr. Notes, 9.875% due 3/1/11 (d) | 794,500 | ||||
700,000 | U.S. Unwired Inc., Sr. Secured Notes, Series B, 10.000% due 6/15/12 | 798,000 | ||||
775,000 | Western Wireless Corp., Sr. Notes, 9.250% due 7/15/13 | 903,844 | ||||
18,074,934 | ||||||
Transportation - 0.1% | ||||||
Continental Airlines, Inc., Pass-Through Certificates: | ||||||
296,013 | Series 974C, 6.800% due 7/2/07 | 250,325 | ||||
674,148 | Series 981C, 6.541% due 9/15/08 | 617,059 | ||||
867,384 | ||||||
Utilities - 1.3% | ||||||
The AES Corp., Sr. Notes: | ||||||
525,000 | 9.375% due 9/15/10 | 614,250 | ||||
950,000 | 7.750% due 3/1/14 | 1,055,687 | ||||
1,000,000 | Allegheny Energy Supply Statutory Trust 2001, Sr. Secured Notes, |
1,128,750 | ||||
2,450,000 | Calpine Corp., Sr. Secured Notes, 8.500% due 7/15/10 (d) | 2,027,375 | ||||
Edison Mission Energy, Sr. Notes: | ||||||
1,525,000 | 10.000% due 8/15/08 | 1,761,375 | ||||
175,000 | 9.875% due 4/15/11 | 210,000 | ||||
1,193,000 | NRG Energy, Inc., Sr. Secured Notes, 8.000% due 12/15/13 (d) | 1,324,230 |
See Notes to Schedule of Investments.
7
SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.
Schedule of Investments (unaudited) (continued) | February 28, 2005 |
FACE AMOUNT |
SECURITY (a) |
VALUE | ||||||
Utilities - 1.3% (continued) | ||||||||
Reliant Energy, Inc., Sr. Secured Notes: | ||||||||
$ | 25,000 | 9.250% due 7/15/10 | $ | 27,781 | ||||
1,425,000 | 9.500% due 7/15/13 | 1,610,250 | ||||||
9,759,698 | ||||||||
TOTAL CORPORATE BONDS & NOTES (Cost - $219,317,065) |
227,737,113 | |||||||
FACE AMOUNT |
||||||||
SOVEREIGN BONDS - 28.5% | ||||||||
Argentina - 1.2% | ||||||||
Republic of Argentina (e)(f): | ||||||||
75,000 | EUR | 9.000% due 5/24/05 (d) | 32,326 | |||||
60,000 | DEM | 7.875% due 7/29/05 | 13,019 | |||||
80,000 | DEM | 11.250% due 4/10/06 | 17,630 | |||||
100,000 | EUR | 10.250% due 1/26/07 | 43,433 | |||||
215,000 | EUR | 8.000% due 2/26/08 | 92,204 | |||||
275,000 | DEM | 9.000% due 11/19/08 | 57,806 | |||||
130,000 | EUR | 8.250% due 7/6/10 | 54,739 | |||||
115,000 | DEM | 10.250% due 2/6/49 | 25,343 | |||||
2,490,000 | DEM | 7.000% due 3/18/49 | 536,069 | |||||
125,000 | EUR | 9.000% due 6/20/49 | 52,219 | |||||
60,000 | EUR | 8.500% due 7/1/49 | 25,065 | |||||
60,000 | DEM | 9.000% due 9/19/49 | 12,714 | |||||
75,000 | EUR | 9.250% due 10/21/49 | 30,585 | |||||
130,000 | DEM | 10.500% due 11/14/49 | 27,238 | |||||
8,700,000 | Discount Bond, Series L-GL, 3.500% due 3/31/23 (g) | 5,111,250 | ||||||
Medium-Term Notes: | ||||||||
620,000,000 | ITL | 4.649% due 7/8/05 (g) | 129,520 | |||||
190,000 | EUR | 10.000% due 2/22/07 | 82,523 | |||||
305,000,000 | ITL | 7.625% due 8/11/07 | 64,969 | |||||
315,000,000 | ITL | 8.000% due 10/30/09 | 66,343 | |||||
115,000 | EUR | 8.500% due 7/30/10 | 48,423 | |||||
150,000 | EUR | 8.750% due 2/4/49 | 62,663 | |||||
95,000,000 | ITL | 7.000% due 3/18/49 | 20,008 | |||||
75,000 | EUR | 7.125% due 6/10/49 | 31,580 | |||||
60,000 | EUR | 9.250% due 7/20/49 | 25,463 | |||||
60,000 | EUR | 8.125% due 10/4/49 | 24,866 | |||||
3,600,000 | Par Bond, Series L-GP, 6.000% due 3/31/23 | 2,106,000 | ||||||
8,793,998 | ||||||||
Brazil - 6.7% | ||||||||
Federative Republic of Brazil: | ||||||||
3,805,000 | 12.250% due 3/6/30 | 4,965,525 | ||||||
3,305,000 | 11.000% due 8/17/40 | 3,828,842 | ||||||
7,013,448 | C Bonds, 8.000% due 4/15/14 | 7,144,950 |
See Notes to Schedule of Investments.
8
SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.
Schedule of Investments (unaudited) (continued) | February 28, 2005 |
FACE AMOUNT |
SECURITY (a) |
VALUE | |||
Brazil - 6.7% (continued) | |||||
DCB, Series L: | |||||
28,301,697 | Bearer, 3.125% due 4/15/12 (g) | $ | 27,381,892 | ||
220,589 | Registered, 3.125% due 4/15/12 (g) | 213,420 | |||
7,788,461 | FLIRB, Series L, 3.063% due 4/15/09 (g) | 7,661,899 | |||
51,196,528 | |||||
Bulgaria - 0.2% | |||||
1,446,429 | Republic of Bulgaria, FLIRB, Series A, 3.750% due 7/28/12 (g) | 1,453,661 | |||
Chile - 0.5% | |||||
3,325,000 | Republic of Chile, 5.500% due 1/15/13 | 3,463,276 | |||
Colombia - 1.5% | |||||
Republic of Colombia: | |||||
950,000 | 11.750% due 2/25/20 | 1,201,750 | |||
1,150,000 | 8.125% due 5/21/24 | 1,104,000 | |||
8,170,000 | 10.375% due 1/28/33 | 9,303,587 | |||
11,609,337 | |||||
Ecuador - 0.7% | |||||
Republic of Ecuador: | |||||
4,155,000 | 12.000% due 11/15/12 (d) | 4,228,751 | |||
1,375,000 | 8.000% due 8/15/30 (d)(g) | 1,287,344 | |||
5,516,095 | |||||
EL Salvador - 0.2% | |||||
1,700,000 | Republic of El Salvador, 7.750% due 1/24/23 (d) | 1,874,250 | |||
Mexico - 4.5% | |||||
United Mexican States: | |||||
4,325,000 | 11.375% due 9/15/16 | 6,368,563 | |||
Medium-Term Notes, Series A: | |||||
13,465,000 | 6.375% due 1/16/13 | 14,272,900 | |||
294,000 | 5.875% due 1/15/14 | 300,762 | |||
3,275,000 | 6.625% due 3/3/15 | 3,511,619 | |||
9,160,000 | 7.500% due 4/8/33 | 10,204,240 | |||
34,658,084 | |||||
Panama - 1.0% | |||||
Republic of Panama: | |||||
900,000 | 7.250% due 3/15/15 | 927,000 | |||
1,850,000 | 9.375% due 4/1/29 | 2,238,500 | |||
4,915,205 | IRB, 3.750% due 7/17/14 (g) | 4,866,053 | |||
8,031,553 | |||||
See Notes to Schedule of Investments.
9
SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.
Schedule of Investments (unaudited) (continued) | February 28, 2005 |
FACE AMOUNT |
SECURITY (a) |
VALUE | |||
Peru - 1.2% | |||||
Republic of Peru: | |||||
695,000 |
9.125% due 2/21/12 | $ | 807,938 | ||
9,275,000 |
FLIRB, 4.500% due 3/7/17 (g) | 8,718,500 | |||
9,526,438 | |||||
The Philippines - 1.1% | |||||
Republic of the Philippines: | |||||
1,475,000 |
9.000% due 2/15/13 | 1,556,125 | |||
3,500,000 |
9.375% due 1/18/17 | 3,768,975 | |||
2,950,000 |
10.625% due 3/16/25 | 3,300,313 | |||
8,625,413 | |||||
Russia - 5.5% | |||||
3,100,000 |
Aries Vermogensverwaltungs GmbH, Russian Federation |
3,855,625 | |||
Russian Federation: | |||||
9,075,000 |
12.750% due 6/24/28 (d) | 15,518,250 | |||
21,310,000 |
5.000% due 3/31/30 (d)(g) | 22,408,797 | |||
41,782,672 | |||||
South Africa - 0.5% | |||||
Republic of South Africa: | |||||
1,350,000 |
9.125% due 5/19/09 | 1,576,125 | |||
2,325,000 |
6.500% due 6/2/14 | 2,551,688 | |||
4,127,813 | |||||
Turkey - 1.6% | |||||
Republic of Turkey: | |||||
475,000 |
11.750% due 6/15/10 | 600,875 | |||
4,725,000 |
11.500% due 1/23/12 | 6,118,875 | |||
1,100,000 |
11.000% due 1/14/13 | 1,413,500 | |||
1,670,000 |
11.875% due 1/15/30 | 2,421,500 | |||
1,225,000 |
Collective Action Securities, 9.500% due 1/15/14 | 1,476,125 | |||
12,030,875 | |||||
Ukraine - 0.5% | |||||
Republic of Ukraine: | |||||
2,100,060 |
11.000% due 3/15/07 (d) | 2,247,064 | |||
1,300,000 |
7.650% due 6/11/13 (d) | 1,433,250 | |||
3,680,314 | |||||
Uruguay - 0.3% | |||||
2,075,000 |
Republic of Uruguay, Benchmark Bond, 7.500% due 3/15/15 | 2,065,663 | |||
See Notes to Schedule of Investments.
10
SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.
Schedule of Investments (unaudited) (continued) | February 28, 2005 |
FACE AMOUNT |
SECURITY (a) |
VALUE | |||
Venezuela - 1.3% | |||||
Bolivarian Republic of Venezuela: | |||||
3,245,000 |
5.375% due 8/7/10 | 3,005,681 | |||
2,275,000 |
8.500% due 10/8/14 | 2,337,563 | |||
300,000 |
9.250% due 9/15/27 | 309,600 | |||
Venezuela - 1.3% (continued) | |||||
Collective Action Serurities: | |||||
3,250,000 |
10.750% due 9/19/13 | $ | 3,761,875 | ||
350,000 |
9.375% due 1/13/34 | 362,250 | |||
9,776,969 | |||||
TOTAL SOVEREIGN BONDS (Cost - $204,334,068) |
218,212,939 | ||||
FACE |
|||||
LOAN PARTICIPATION (g)(h) - 0.1% | |||||
$634,142 |
Kingdom of Morocco, Tranche A, 3.803% due 1/2/09 (UBS Financial Services Inc.) (Cost - $623,536) |
626,215 | |||
ASSET-BACKED SECURITIES - 2.1% | |||||
844,859 |
AQ Finance Net Interest Margin Trust, Series 2004-RN5, |
842,254 | |||
Bear Stearns Asset-Backed Securities, Net Interest Margin Trust: | |||||
Series 2004-HE5N: | |||||
1,006,053 |
Class A1, 5.000% due 7/25/34 (d) | 1,003,597 | |||
158,000 |
Class A2, 5.000% due 7/25/34 (d) | 156,581 | |||
600,232 |
Series 2004-HE6N, Class A1, 5.250% due 8/25/34 (d) | 598,312 | |||
1,230,153 |
Countrywide Asset-Backed Certificates, Series 2004-5N, Class N1, |
1,228,076 | |||
829,874 |
Finance America Net Interest Margin Trust, Series 2004-1, |
826,470 | |||
743,986 |
First Consumers Master Trust, Series 2001-A, Class A, 2.900% due 9/15/08 (g) | 738,871 | |||
460,876 |
Long Beach Asset Holdings Corp., Series 2004-6, Class N2, |
444,169 | |||
1,065,581 |
Novastar Net Interest Margin Trust, Series 2004-N2, 4.458% due 6/26/34 (d) | 1,060,604 | |||
Sail Net Interest Margin Notes, | |||||
Class A: | |||||
195,773 |
Series 2003-6A, 7.000% due 7/27/33 (d) | 196,588 | |||
248,504 |
Series 2003-7A, 7.000% due 7/27/33 (d) | 249,770 | |||
1,296,758 |
Series 2004-8A, 5.000% due 9/27/34 (d) | 1,291,554 | |||
2,158,101 |
Series 2004-AA, 4.500% due 10/27/34 (d) | 2,156,913 | |||
350,000 |
Series 2005-1A, 4.250% due 2/27/35 (d) | 348,767 | |||
Class B, | |||||
1,376,973 |
Series 2004-AA, 7.500% due 10/27/34 (d) | 1,344,270 | |||
468,219 |
Series 2004-BN2A, 7.000% due 12/27/34 (d) | 443,893 | |||
675,000 |
Series 2005-1A, 7.500% due 2/27/35 (d) | 657,743 | |||
794,575 |
Sharps SP I LLC Net Interest Margin Trust, 2004-HS1N, |
776,167 | |||
1,500,000 |
Structured Asset Investment Loan Trust, Series 2003-BC10, Class M2, |
1,522,677 | |||
TOTAL ASSET BACKED SECURITIES (Cost - $15,924,595) |
15,887,276 | ||||
See Notes to Schedule of Investments.
11
SALOMON BROTHERS GLOBAL HIGH INCOME FUND INC.
Schedule of Investments (unaudited) (continued) | February 28, 2005 |
FACE AMOUNT |
SECURITY (a) |
VALUE | ||||
COLLATERALIZED MORTGAGE OBLIGATIONS - 0.9% | ||||||
Fannie Mae Strip: | ||||||
$ | 13,375,838 | Series 329, Class 2, 5.500% due 1/1/33 - Interest Only | $ | 2,953,374 | ||
16,370,512 | Series 338, Class 2, 5.500% due 6/1/33 - Interest Only | 3,660,443 | ||||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost - $7,279,979) |
6,613,817 | |||||
OTHER SECURITIES - 1.0% | ||||||
7,140,695 | Targeted Return Index Securities, Sr. Secured Notes, Series HY-2004-1, |
7,698,769 | ||||
SHARES |
||||||
PREFERRED STOCK - 0.2% | ||||||
1,394 | Alamosa Holdings, Inc., 7.500%, Cumulative Convertible, Series B (Cost - $431,471) |
1,333,361 | ||||
WARRANTS |
||||||
WARRANTS (f) -0.0% | ||||||
450 | Mueller Holdings, Inc., (Exercise price of $0.01 per share expiring on 4/15/14. | |||||
Each warrant exercisable for 109.820 shares of common stock.) (d) (Cost - $19,992) |
42,862 | |||||
FACE AMOUNT |
||||||
REPURCHASE AGREEMENTS - 10.8% | ||||||
32,831,000 | Deutsche Bank Securities Inc. dated 2/28/05, 2.620% due 3/1/05; Proceeds at maturity - $32,833,389; (Fully collateralized by various U.S. Treasury obligations, 0.000% to 3.000% due 7/15/12 to 8/15/19; Market value - $33,708,860) |
32,831,000 | ||||
25,000,000 | Merrill Lynch Government Securities Inc. dated 2/28/05, 2.600% due 3/1/05; Proceeds at maturity - $25,001,806; (Fully collateralized by various U.S. government agency obligations, 1.500% to 6.000% due 6/15/05 to 1/21/25; Market value - $25,500,125) |
25,000,000 | ||||
25,000,000 | UBS Securities LLC dated 2/28/05, 2.630% due 3/1/05; Proceeds at maturity - $25,001,826; (Fully collateralized by various U.S. government agency obligations, 2.000% to 5.000% due 1/15/06 to 10/15/14; Market value - $25,500,103) |
25,000,000 | ||||
TOTAL REPURCHASE AGREEMENTS (Cost - $82,831,000) |
82,831,000 | |||||
TOTAL INVESTMENTS - 100.0% (Cost - $740,092,849*) |
$ | 765,513,102 | ||||
See Notes to Schedule of Investments.
12
| Face amount denominated in U.S. dollars unless otherwise indicated. |
(a) | All securities are segregated as collateral pursuant to revolving credit facility or to-be-anounced securities. |
(b) | Security acquired under mortgage dollar roll agreement (See Note 2). |
(c) | Security is traded on a to-be-announced basis (See Note 2). Security is traded on a to-be-announced basis (See Note 2). |
(d) | Security is exempt form registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. |
(e) | Security is currently in default. |
(f) | Non- income producing security. |
(g) | Rate shown reflects current rate on instrument with variable rate or step coupon rates. |
(h) | Participation interests were acquired through the financial institutions indicated parenthetically. |
* | Aggregate cost for federal income tax purposes is substantially the same. |
Abbreviations used in this schedule:
C BOND | - Capitalization Bond. | |
DCB | - Debt Conversion Bond. | |
DEM | - German Mark. | |
EUR | - Euro. | |
FLIRB | - Front-Loaded Interest Reduction Bond. | |
IRB | - Interest Reduction Bond. | |
ITL | - Italian Lira. | |
NMB | - New Money Bond. | |
PDI | - Past Due Interest. |
See Notes to Schedule of Investments.
13
Notes to Schedule of Investments (unaudited)
1. Organization and Significant Accounting Policies
Salomon Brothers Global High Income Fund Inc. (Fund) was incorporated in Maryland on April 16, 2003 and is registered as a non-diversified, closed-end, management investment company under the Investment Company Act of 1940, as amended.
The following are significant accounting policies consistently followed by the Fund. These policies are in conformity with U.S. generally accepted accounting principles (GAAP).
(a) Investment Valuation. In valuing the Funds assets, all securities for which market quotations are readily available are valued (i) at the last sale price prior to the time of determination if there were a sale on the date of determination, (ii) at the mean between the last current bid and asked prices if there were no sales on such date and bid and asked quotations are available, and (iii) at the bid price if there were no sales price on such date and only bid quotations are available. Publicly traded foreign government debt securities are typically traded internationally in the over-the-counter market, and are valued at the mean between the last current bid and asked price as of the close of business of that market. Securities may also be valued by independent pricing services which use prices provided by market-makers or estimates of market values obtained from yield data relating to instruments or securities with similar characteristics. When market quotations are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund may value these investments at fair value as determined in accordance with the procedures approved by the Funds Board of Directors. Short-term investments having a maturity of 60 days or less are valued at amortized cost, which approximates market value.
(b) Repurchase Agreements. When entering into repurchase agreements, it is the Funds policy that a custodian takes possession of the underlying collateral securities, the value of which at least equals the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase transaction exceeds one business day, the value of the collateral is marked-to market to ensure the adequacy of the collateral. If the seller defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited.
(c) Financial Futures Contracts. The Fund may enter into futures contracts to the extent permitted by its investment policies and objectives. Upon entering into a futures contract, the Fund is required to deposit cash or securities as initial margin. Additional securities are also segregated up to the current market value of the futures contracts. Subsequent payments, which are dependent on the daily fluctuations in the value of the underlying financial instrument, are made or received by the Fund each day (daily variation margin) and are recorded as unrealized gains or losses until the contracts are closed. When the contracts are closed, the Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transactions and the Funds basis in the contracts. The Fund enters into such contracts typically to hedge a portion of the portfolio. The risks associated with entering into futures contracts include the possibility that a change in the value of the contract may not correlate with the changes in the value of the underlying financial instruments. In addition, investing in futures contracts involves the risk that the Fund could lose more than the original margin deposit and subsequent payments required for a futures transaction.
14
Notes to Schedule of Investments (unaudited) (continued)
(d) Securities Traded on a To-Be-Announced Basis. The Fund may trade securities on a to-be-announced (TBA) basis. In a TBA transaction, the Fund commits to purchasing or selling securities, which have not yet been issued by the issuer, for which specific information is not known, for example the face amount and maturity date in U.S. government agency mortgage pass-through transactions. 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, cash, U.S. government securities or other liquid high-grade debt obligations are segregated in an amount equal in value to the purchase price of the TBA security. These transactions are subject to market fluctuations and their current value is determined in the same manner as for other securities.
(e) 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.
(f) Loan Participations. The Fund may invest in loans arranged through private negotiations between one or more financial institutions (Lender). The Funds investment in any such loan may be in the form of a participation in or an assignment of the loan. In connection with purchasing participations, the Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement relating to the loan, nor any rights of set-off against the borrower, and the Fund may not benefit directly from any collateral supporting the loan in which it has purchased the participation. As a result, the Fund will assume the credit risk of both the borrower and the lender that is selling the participation. In the event of the insolvency of the lender selling the participation, the Fund may be treated as a general creditor of the lender and may not benefit from any set-off between the lender and the borrower.
(g) Foreign Currency Translation. Investment securities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investment securities denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions.
(h) Credit and Market Risk. The yields of emerging markets debt obligations and high-yield corporate debt obligations reflect, among other things, perceived credit and market risk. The Funds investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, overall greater risk of timely and ultimate payment of interest and principal, greater market price volatility and less liquid secondary market trading. The consequences of political, social, economic or diplomatic changes may have disruptive effects on the market prices of investments held by the Fund.
15
Notes to Schedule of Investments (unaudited) (continued)
(i) Investment Transactions. Investment transactions are recorded on a trade date basis.
2. Investments
At February 28, 2005, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:
Gross unrealized appreciation |
$ | 29,865,117 | ||
Gross unrealized depreciation |
(4,444,864 | ) | ||
Net unrealized appreciation |
$ | 25,420,253 | ||
At February 28, 2005, the Fund had the following open futures contracts:
# of Contracts |
Expiration Date |
Basis Value |
Market Value |
Unrealized Gain | |||||||||
Contracts to sell: | |||||||||||||
U.S. Treasury 5-Year Note |
534 | 3/05 | $ | 58,661,109 | $ | 57,738,750 | $ | 922,359 | |||||
U.S. Treasury 10-Year Note |
998 | 3/05 | 111,375,343 | 110,653,250 | 722,093 | ||||||||
$ | 1,644,452 | ||||||||||||
At February 28, 2005, the Fund held TBA securities with a total cost of $201,549,221.
At February 28, 2005, the average monthly balance of mortgage dollar rolls outstanding was $219,112,273. For the period ended February 28, 2005, the Fund had outstanding mortgage dollar rolls with a total cost of $201,549,221. Counterparties with mortgage dollar rolls outstanding in excess of 10% of total net assets at February 28, 2005 included Barclays Capital Inc. ($77,186,233).
At February 28, 2005, the Fund held one loan participation with a total cost of $623,536 and a total market value of $626,215.
3. Loan
At February 28, 2005, the Fund had outstanding a $100,000,000 loan pursuant to a revolving credit and security agreement with Three Pillars Funding Corp. and Citicorp North America Inc. (CNA), an affiliate of SBAM. The loans generally bear interest at a variable rate based on the weighted average interest rates of the underlying commercial paper or LIBOR, plus any applicable margin. Securities held by the Fund are subject to a lien, granted to the lenders, to the extent of the borrowing outstanding and any additional expenses
16
ITEM 2. CONTROLS AND PROCEDURES.
(a) | The registrants principal executive officer and principal financial officer have concluded that the registrants 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 registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrants last fiscal quarter that have materially affected, or are likely to materially affect the registrants internal control over financial reporting. |
ITEM 3. EXHIBITS.
Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached hereto.
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.
Salomon Brothers Global High Income Fund Inc.
By | /S/ R. JAY GERKEN | |
R. Jay Gerken | ||
Chief Executive Officer |
Date: April 27, 2005
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 | ||
Date: April 27, 2005 | ||
By |
/S/ FRANCES M. GUGGINO | |
Frances M. Guggino | ||
Chief Financial Officer |
Date: April 27, 2005