N-Q 1 dnq.htm SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC. Salomon Brothers Global Partners Income Fund Inc.

 

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- 7994

 

Salomon Brothers Global Partners Income Fund Inc.

(Exact name of registrant as specified in charter)

 

125 Broad Street, New York, NY 10004

(Address of principal executive offices) (Zip code)

 

Robert I. Frenkel, Esq.

c/o Citigroup Asset Management

300 First Stamford Place, 4th floor

Stamford, CT 06902

(Name and address of agent for service)

 

Registrant’s telephone number, including area code: 1-800-725-6666

 

Date of fiscal year end: August 31

Date of reporting period: May 31, 2005

 



ITEM 1. SCHEDULE OF INVESTMENTS


SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.

 

FORM N-Q

MAY 31, 2005


SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of Investments (unaudited)    May 31, 2005

 

 Face
  Amount  


  

  Security*  


   Value

  CORPORATE BONDS & NOTES — 46.8%       
  Advertising — 0.7%       
$ 350,000   

Bear Creek Corp., Senior Notes, 9.000% due 3/1/13 (a)

   $ 339,500
  300,000   

Interep National Radio Sales, Inc., Senior Subordinated Notes, Series B, 10.000% due 7/1/08

     250,500
  100,000   

R.H. Donnelley Finance Corp. I, Senior Subordinated Notes, 10.875% due 12/15/12 (a)

     116,250
  405,000   

SITEL Corp., Senior Subordinated Notes, 9.250% due 3/15/06

     402,975
  650,000   

Vertis, Inc., Senior Secured Notes, 9.750% due 4/1/09

     679,250
           

      

Total Advertising

     1,788,475
           

  Aerospace/Defense — 0.7%       
  675,000   

DRS Technologies, Inc., Senior Subordinated Notes, 6.875% due 11/1/13 (a)

     691,875
  750,000   

L-3 Communications Corp., Senior Subordinated Notes, 7.625% due 6/15/12

     798,750
  450,000   

Sequa Corp., Senior Notes, 9.000% due 8/1/09

     490,500
           

      

Total Aerospace/Defense

     1,981,125
           

  Agriculture — 0.2%       
  450,000   

Hines Nurseries, Inc., Senior Notes, 10.250% due 10/1/11

     465,750
           

  Airlines — 0.1%       
      

Continental Airlines, Inc., Pass-Through Certificates:

      
  142,400   

Series 1998-1C, 6.541% due 9/15/08

     122,418
  297,744   

Series 2000-2, Class C, 8.312% due 4/2/11

     233,973
           

      

Total Airlines

     356,391
           

  Apparel — 0.7%       
      

Levi Strauss & Co., Senior Notes:

      
  175,000   

7.730% due 4/1/12 (a)(b)

     163,188
  155,000   

12.250% due 12/15/12

     168,950
  650,000   

9.750% due 1/15/15 (a)

     633,750
  400,000   

Oxford Industries, Inc., Senior Notes, 8.875% due 6/1/11

     416,000
  600,000   

Tommy Hilfiger USA, Inc., Notes, 6.850% due 6/1/08

     606,000
           

      

Total Apparel

     1,987,888
           

  Auto Manufacturers — 0.8%       
      

Ford Motor Co.:

      
  150,000   

6.625% due 10/1/28

     118,797
  2,175,000   

Notes, 7.450% due 7/16/31

     1,823,555
  300,000   

General Motors Corp., Senior Debentures, 8.375% due 7/15/33

     230,332
           

      

Total Auto Manufacturers

     2,172,684
           

  Auto Parts & Equipment — 0.3%       
  325,000   

Keystone Automotive Operations, Inc., Senior Subordinated Notes, 9.750% due 11/1/13

     320,125
  300,000   

Tenneco Automotive, Inc., Senior Secured Second Lien Notes, Series B, 10.250% due 7/15/13

     336,000
      

TRW Automotive, Inc.:

      
  134,000   

Senior Notes, 9.375% due 2/15/13

     145,390
  49,000   

Senior Subordinated Notes, 11.000% due 2/15/13

     53,900
           

      

Total Auto Parts & Equipment

     855,415
           

  Beverages — 0.3%       
  650,000   

Constellation Brands, Inc., Senior Subordinated Notes, Series B, 8.125% due 1/15/12

     677,625
           

  Building Materials — 0.6%       
  1,250,000   

Associated Materials, Inc., Senior Discount Notes, step bond to yield 12.749% due 3/1/14

     743,750

 

See Notes to Schedule of Investments.

 

1


SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)    May 31, 2005

 

 Face
  Amount  


  

  Security*  


   Value

  Building Materials (continued)       
$ 350,000   

Nortek, Inc., Senior Subordinated Notes, 8.500% due 9/1/14

   $ 315,000
  650,000   

Ply Gem Industries, Inc., Senior Subordinated Notes, 9.000% due 2/15/12

     516,750
           

      

Total Building Materials

     1,575,500
           

  Chemicals — 3.3%       
  550,000   

Acetex Corp., Senior Notes, 10.875% due 8/1/09

     583,000
  375,000   

Airgas, Inc., Senior Subordinated Notes, 9.125% due 10/1/11

     406,875
  127,273   

Applied Extrusion Technologies, Inc., 12.000% due 3/15/12 (a)

     127,657
  500,000   

Equistar Chemicals LP, Senior Subordinated Notes, 10.625% due 5/1/11

     553,750
  685,000   

Huntsman International LLC, Senior Subordinated Notes, 10.125% due 7/1/09

     714,112
  525,000   

Innophos, Inc., Senior Subordinated Notes, 8.875% due 8/15/14 (a)

     514,500
  800,000   

ISP Chemco, Inc., Senior Subordinated Notes, Series B, 10.250% due 7/1/11

     866,000
      

Lyondell Chemical Co., Senior Secured Notes:

      
  250,000   

9.500% due 12/15/08

     266,875
  325,000   

11.125% due 7/15/12

     370,094
  10,000   

Series B, 9.875% due 5/1/07

     10,300
  450,000   

Methanex Corp., Senior Notes, 8.750% due 8/15/12

     515,250
  790,000   

Millennium America, Inc., Senior Notes, 9.250% due 6/15/08

     855,175
  625,000   

Nalco Co., Senior Subordinated Notes, 8.875% due 11/15/13

     656,250
  125,000   

OM Group, Inc., Senior Subordinated Notes, 9.250% due 12/15/11

     124,375
  350,000   

PQ Corp., Senior Subordinated Notes, 7.500% due 2/15/13 (a)

     339,500
  475,000   

Resolution Performance Products, Inc., Senior Subordinated Notes, 13.500% due 11/15/10

     515,375
  250,000   

Resolution Performance Products LLC/RPP Capital Corp., Secured Notes, 9.500% due 4/15/10

     260,000
      

Rhodia SA:

      
  50,000   

Senior Notes, 10.250% due 6/1/10

     53,500
  900,000   

Senior Subordinated Notes, 8.875% due 6/1/11

     868,500
  374,000   

Westlake Chemical Corp., Senior Notes, 8.750% due 7/15/11

     407,660
           

      

Total Chemicals

     9,008,748
           

  Commercial Services — 1.2%       
  275,000   

Allied Security Escrow Corp., Senior Subordinated Notes, 11.375% due 7/15/11

     262,625
  350,000   

Brand Services, Inc., Senior Subordinated Notes, 12.000% due 10/15/12

     386,750
      

Cenveo Corp.:

      
  125,000   

Senior Notes, 9.625% due 3/15/12

     134,688
  475,000   

Senior Subordinated Notes, 7.875% due 12/1/13

     452,437
  700,000   

DI Finance/Dyncorp International, Senior Subordinated Notes, 9.500% due 2/15/13 (a)

     651,000
  1,400,000   

Iron Mountain, Inc., Senior Subordinated Notes, 7.750% due 1/15/15

     1,386,000
           

      

Total Commercial Services

     3,273,500
           

  Diversified Financial Services — 1.9%       
  423,000   

BCP Crystal U.S. Holdings Corp., Senior Subordinated Notes, 9.625% due 6/15/14

     476,932
  100,000   

Ford Motor Credit Co., Notes, 7.875% due 6/15/10

     97,287
      

General Motors Acceptance Corp., Notes:

      
  250,000   

7.250% due 3/2/11

     223,108
  200,000   

6.875% due 9/15/11

     174,632
  975,000   

6.750% due 12/1/14

     828,345
  1,500,000   

8.000% due 11/1/31

     1,257,837
  500,000   

Huntsman Advanced Materials LLC, Senior Secured Notes, 11.000% due 7/15/10 (a)

     572,500
  100,000   

Rainbow National Services LLC, Senior Subordinated Debentures, 10.375% due 9/1/14 (a)

     114,500

 

See Notes to Schedule of Investments.

 

2


SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)    May 31, 2005

 

Face

  Amount  


  

  Security*  


   Value

  Diversified Financial Services (continued)       
$ 600,000   

Sensus Metering Systems, Inc., Senior Subordinated Notes, 8.625% due 12/15/13

   $ 561,000
  1,000,000   

Vanguard Health Holdings I, Senior Discount Notes, zero coupon bond to yield 9.772% due 10/1/15

     705,000
           

      

Total Diversified Financial Services

     5,011,141
           

  Electric — 3.0%       
      

AES Corp., Senior Notes:

      
  400,000   

8.750% due 6/15/08

     430,000
  175,000   

9.500% due 6/1/09

     195,125
  300,000   

9.375% due 9/15/10

     339,000
  400,000   

7.750% due 3/1/14

     426,000
  550,000   

Allegheny Energy Supply Statutory Trust, Senior Secured Notes, 10.250% due 11/15/07 (a)

     616,000
      

Calpine Corp., Senior Secured Notes:

      
  800,000   

8.500% due 7/15/10 (a)

     584,000
  215,000   

8.750% due 7/15/13 (a)

     153,187
  350,000   

Calpine Generating Co. LLC, Senior Secured Notes, 12.390% due 4/1/11 (b)

     308,000
      

Edison Mission Energy, Senior Notes:

      
  50,000   

10.000% due 8/15/08

     55,750
  1,100,000   

7.730% due 6/15/09

     1,149,500
  300,000   

9.875% due 4/15/11

     348,000
  950,000   

Mirant Americas Generation LLC, Senior Notes, 9.125% due 5/1/31 (c)(g)

     999,875
  939,000   

NRG Energy, Inc., Senior Secured Notes, 8.000% due 12/15/13 (a)

     995,340
      

Reliant Energy, Inc., Senior Secured Notes:

      
  725,000   

9.250% due 7/15/10

     783,000
  550,000   

9.500% due 7/15/13

     602,250
           

      

Total Electric

     7,985,027
           

  Electronics — 0.1%       
  400,000   

Muzak LLC, Senior Notes, 10.000% due 2/15/09

     322,000
           

  Entertainment — 1.7%       
  325,000   

Choctaw Resort Development Enterprise, Senior Notes, 7.250% due 11/15/19 (a)

     318,500
  925,000   

Cinemark, Inc., Senior Discount Notes, step bond to yield 9.554% due 3/15/14

     654,437
  575,000   

Herbst Gaming, Inc., Senior Subordinated Notes, 7.000% due 11/15/14

     576,438
  700,000   

Isle of Capri Casinos, Inc., Senior Subordinated Notes, 7.000% due 3/1/14

     691,250
  375,000   

Mohegan Tribal Gaming Authority, Senior Subordinated Notes, 6.875% due 2/15/15 (a)

     380,156
  700,000   

Penn National Gaming, Inc., Senior Subordinated Notes, 6.750% due 3/1/15 (a)

     686,000
  675,000   

Pinnacle Entertainment, Inc., Senior Subordinated Notes, 8.250% due 3/15/12

     681,750
      

Six Flags, Inc., Senior Notes:

      
  200,000   

9.750% due 4/15/13

     179,000
  350,000   

9.625% due 6/1/14

     307,125
           

      

Total Entertainment

     4,474,656
           

  Environmental Control — 0.7%       
  550,000   

Aleris International, Inc., Senior Secured Notes, 10.375% due 10/15/10

     613,250
      

Allied Waste North America, Inc.:

      
      

Senior Notes:

      
  175,000   

7.250% due 3/15/15 (a)

     169,750
  1,025,000   

Series B, 7.375% due 4/15/14

     948,125
  150,000   

Senior Secured Notes, Series B, 9.250% due 9/1/12

     162,000

 

See Notes to Schedule of Investments.

 

3


SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)    May 31, 2005

 

 Face
  Amount  


  

  Security*  


   Value

  Environmental Control (continued)       
$ 2,000,000   

Safety Kleen Services, Inc., Senior Subordinated Notes, 9.250% due 6/1/08 (c)

   $ 8,020
           

      

Total Environmental Control

     1,901,145
           

  Food — 0.8%       
  250,000   

Ahold Finance USA, Inc., Notes, 8.250% due 7/15/10

     273,750
  500,000   

Del Monte Corp., Senior Subordinated Notes, 8.625% due 12/15/12

     547,500
      

Doane Pet Care Co.:

      
  100,000   

Senior Notes, 10.750% due 3/1/10

     106,250
  600,000   

Senior Subordinated Notes, 9.750% due 5/15/07

     588,000
  625,000   

Pinnacle Foods Holding Corp., Senior Subordinated Notes, 8.250% due 12/1/13

     537,500
           

      

Total Food

     2,053,000
           

  Forest Products & Paper — 1.2%       
  525,000   

Abitibi-Consolidated, Inc., 8.850% due 8/1/30

     472,500
  600,000   

Appleton Papers, Inc., Senior Subordinated Notes, Series B, 9.750% due 6/15/14

     594,000
  575,000   

Bowater, Inc., Debentures, 9.500% due 10/15/12

     621,000
  350,000   

Buckeye Technologies, Inc., Senior Subordinated Notes, 8.000% due 10/15/10

     334,250
  700,000   

Newark Group, Inc., Senior Subordinated Notes, 9.750% due 3/15/14

     591,500
  600,000   

Smurfit Capital Funding PLC, 7.500% due 11/20/25

     543,000
           

      

Total Forest Products & Paper

     3,156,250
           

  Healthcare-Services — 1.6%       
  600,000   

AmeriPath, Inc., Senior Subordinated Notes, 10.500% due 4/1/13

     609,000
  300,000   

DaVita, Inc., Senior Subordinated Notes, 7.250% due 3/15/15 (a)

     303,000
  450,000   

Extendicare Health Services, Inc., Senior Notes, 9.500% due 7/1/10

     488,250
  300,000   

HCA, Inc., 6.375% due 1/15/15

     307,279
  975,000   

IASIS Healthcare LLC, Senior Subordinated Notes, 8.750% due 6/15/14

     1,048,125
  325,000   

InSight Health Services Corp., Senior Subordinated Notes, Series B, 9.875% due 11/1/11

     279,500
      

Tenet Healthcare Corp., Senior Notes:

      
  250,000   

6.500% due 6/1/12

     240,000
  750,000   

7.375% due 2/1/13

     738,750
  300,000   

6.875% due 11/15/31

     246,750
           

      

Total Healthcare-Services

     4,260,654
           

  Holding Companies-Diversified — 0.2%       
  675,000   

Atlantic Broadband Finance LLC, Senior Subordinated Notes, 9.375% due 1/15/14 (a)

     639,563
           

  Home Furnishings — 0.4%       
  502,000   

Applica, Inc., Senior Subordinated Notes, 10.000% due 7/31/08

     461,840
  600,000   

Sealy Mattress Co., Senior Subordinated Notes, 8.250% due 6/15/14

     610,500
           

      

Total Home Furnishings

     1,072,340
           

  Household Products/Wares — 0.2%       
  475,000   

Playtex Products, Inc., Senior Subordinated Notes, 9.375% due 6/1/11

     499,938
           

  Internet — 0.2%       
  656,000   

FTD, Inc., Senior Notes, 7.750% due 2/15/14

     633,040
           

  Iron-Steel — 0.3%       
  275,000   

AK Steel Corp., Senior Notes, 7.875% due 2/15/09

     261,250
  300,000   

IPSCO, Inc., Senior Notes, 8.750% due 6/1/13

     334,500

 

See Notes to Schedule of Investments.

 

4


SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)    May 31, 2005

 

 Face
  Amount  


  

  Security*  


   Value

  Iron-Steel (continued)       
$ 260,000   

Ispat Inland ULC, Senior Secured Notes, 9.750% due 4/1/14

   $ 304,200
           

      

Total Iron-Steel

     899,950
           

  Leisure Time — 0.6%       
  650,000   

AMF Bowling Worldwide, Inc., Senior Subordinated Notes, 10.000% due 3/1/10

     656,500
  650,000   

Equinox Holdings, Inc., Senior Notes, 9.000% due 12/15/09

     672,750
  500,000   

Icon Health & Fitness, Inc., Senior Subordinated Notes, 11.250% due 4/1/12

     370,000
           

      

Total Leisure Time

     1,699,250
           

  Lodging — 2.3%       
  525,000   

Ameristar Casinos, Inc., Senior Subordinated Notes, 10.750% due 2/15/09

     576,187
      

Caesars Entertainment, Inc., Senior Subordinated Notes:

      
  425,000   

8.875% due 9/15/08

     470,688
  625,000   

Series A, 7.875% due 12/15/05

     637,500
  600,000   

Inn of the Mountain Gods Resort & Casino, Senior Notes, 12.000% due 11/15/10

     699,000
  500,000   

John Q. Hammons Hotels LP, First Mortgage Notes, Series B, 8.875% due 5/15/12

     546,250
  500,000   

Kerzner International Ltd., Senior Subordinated Notes, 8.875% due 8/15/11

     537,500
  550,000   

Las Vegas Sands Corp., Senior Notes, 6.375% due 2/15/15 (a)

     532,125
      

MGM MIRAGE, Inc.:

      
  400,000   

Senior Notes, 6.750% due 9/1/12

     411,000
  750,000   

Senior Subordinated Notes, 9.750% due 6/1/07

     814,687
  700,000   

Starwood Hotels & Resorts Worldwide, Inc., Senior Notes, 7.875% due 5/1/12

     786,625
  150,000   

Station Casinos, Inc., Senior Subordinated Notes, 6.875% due 3/1/16

     154,875
           

      

Total Lodging

     6,166,437
           

  Machinery-Construction & Mining — 0.3%       
  700,000   

Terex Corp., Senior Subordinated Notes, Series B, 10.375% due 4/1/11

     763,000
           

  Machinery-Diversified — 0.4%       
  300,000   

Case New Holland, Inc., Senior Notes, 9.250% due 8/1/11 (a)

     318,000
  575,000   

Dresser-Rand Group, Inc., Senior Subordinated Notes, 7.375% due 11/1/14 (a)

     566,375
  300,000   

NMHG Holding Co., Senior Notes, 10.000% due 5/15/09

     319,500
           

      

Total Machinery-Diversified

     1,203,875
           

  Media — 4.6%       
  325,000   

Cablevision Systems Corp., Senior Notes, 8.000% due 4/15/12 (a)

     343,281
  525,895   

CanWest Media, Inc., Senior Subordinated Notes, 8.000% due 9/15/12 (a)

     549,560
      

Charter Communications Holdings LLC:

      
  1,255,000   

Senior Discount Notes, 9.920% due 4/1/11

     919,287
      

Senior Notes:

      
  250,000   

8.250% due 4/1/07

     242,500
  250,000   

10.250% due 1/15/10

     185,625
      

Charter Communications Holdings II LLC/Charter Communications Holdings Capital Corp, Senior Discount Notes:

      
  10,000   

Step bond to yield 14.167% due 1/15/10

     7,850
  1,050,000   

Step bond to yield 18.119% due 1/15/11

     803,250
  700,000   

Step bond to yield 18.889% due 5/15/11

     456,750
  1,100,000   

CSC Holdings, Inc., Senior Subordinated Debentures, 10.500% due 5/15/16

     1,210,000
  225,000   

Dex Media East LLC/Dex Media East Finance Co., Senior Notes, 9.875% due 11/15/09

     250,313

 

See Notes to Schedule of Investments.

 

5


SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)    May 31, 2005

 

 Face
  Amount  


  

  Security*  


   Value

  Media (continued)       
$ 635,000   

Dex Media West LLC/Dex Media West Finance Co., Senior Notes, Series B, 9.875% due 8/15/13

   $ 728,662
  975,000   

Dex Media, Inc., Discount Notes, step bond to yield 7.889% due 11/15/13

     780,000
  325,000   

DirecTV Holdings LLC, Senior Notes, 8.375% due 3/15/13

     361,563
  504,000   

EchoStar DBS Corp., Senior Notes, 9.125% due 1/15/09

     538,650
  325,000   

Houghton Mifflin Co., Senior Discount Notes, step bond to yield 11.413% due 10/15/13

     224,250
  650,000   

LodgeNet Entertainment Corp., Senior Subordinated Debentures, 9.500% due 6/15/13

     702,000
  50,000   

Mediacom Broadband LLC, Senior Notes, 11.000% due 7/15/13

     54,375
  650,000   

Mediacom LLC, Senior Notes, 9.500% due 1/15/13

     648,375
  700,000   

Nexstar Finance, Inc., Senior Subordinated Notes, 7.000% due 1/15/14 (a)

     645,750
  550,000   

NextMedia Operating, Inc., Senior Subordinated Notes, 10.750% due 7/1/11

     602,250
  375,000   

Radio One, Inc., Senior Subordinated Notes, Series B, 8.875% due 7/1/11

     404,063
  600,000   

Spanish Broadcasting System, Inc., Senior Subordinated Notes, 9.625% due 11/1/09

     631,500
  585,000   

Yell Finance BV, Senior Notes, 10.750% due 8/1/11

     637,650
  500,000   

Young Broadcasting, Inc., Senior Subordinated Notes, 8.750% due 1/15/14

     455,000
           

       Total Media      12,382,504
           

  Metal Fabricate-Hardware — 0.2%       
  200,000   

Mueller Group, Inc., Senior Subordinated Notes, 10.000% due 5/1/12

     211,000
  625,000   

Mueller Holdings, Inc., Discount Notes, step bond to yield 11.492% due 4/15/14

     454,688
           

       Total Metal Fabricate-Hardware      665,688
           

  Miscellaneous Manufacturing — 0.3%       
  325,000   

Invensys PLC, Senior Notes, 9.875% due 3/15/11 (a)

     307,938
  575,000   

Koppers, Inc., Senior Secured Notes, 9.875% due 10/15/13

     615,250
  500,000   

Moll Industries, Inc., Senior Subordinated Notes, 10.500% due 7/1/08 (c)(d)(g)

     0
           

       Total Miscellaneous Manufacturing      923,188
           

  Office Furnishings — 0.4%       
  675,000   

Interface, Inc., Senior Subordinated Notes, 9.500% due 2/1/14

     678,375
  374,000   

Tempur-Pedic, Inc. and Tempur Production USA, Inc., Senior Subordinated Notes, 10.250% due 8/15/10

     417,010
           

       Total Office Furnishings      1,095,385
           

  Office/Business Equipment — 0.1%       
  275,000   

General Binding Corp., Senior Subordinated Notes, 9.375% due 6/1/08

     279,125
           

  Oil & Gas — 2.1%       
  925,000   

Chesapeake Energy Corp., Senior Notes, 6.625% due 1/15/16 (a)

     960,844
  812,000   

Magnum Hunter Resources, Inc., Senior Notes, 9.600% due 3/15/12

     897,260
  1,200,000   

PEMEX Project Funding Master Trust Bonds, 6.125% due 8/15/08

     1,249,200
  1,800,000   

Petronas Capital Ltd., 7.875% due 5/22/22 (a)

     2,242,573
  200,000   

Swift Energy Co., Senior Subordinated Notes, 9.375% due 5/1/12

     215,000
           

       Total Oil & Gas      5,564,877
           

  Packaging & Containers — 1.7%       
  575,000   

Anchor Glass Container Corp., Senior Secured Notes, 11.000% due 2/15/13

     465,750
  525,000   

Berry Plastics Corp., Senior Subordinated Notes, 10.750% due 7/15/12

     572,250
  650,000   

Graphic Packaging International Corp., Senior Subordinated Notes, 9.500% due 8/15/13

     637,000
  875,000   

Plastipak Holdings, Inc., Senior Notes, 10.750% due 9/1/11

     960,313
  300,000   

Pliant Corp., Second Priority Senior Secured Notes, 11.125% due 9/1/09

     291,000
  500,000   

Radnor Holdings Corp., Senior Notes, 11.000% due 3/15/10

     368,750
  900,000   

Stone Container Finance Co. of Canada II, Senior Notes, 7.375% due 7/15/14

     839,250

 

See Notes to Schedule of Investments.

 

6


SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)    May 31, 2005

 

 Face
  Amount  


  

  Security*  


   Value

  Packaging & Containers (continued)       
       Tekni-Plex, Inc.:       
$ 500,000   

Senior Secured Notes, 8.750% due 11/15/13 (a)

   $ 432,500
  100,000   

Senior Subordinated Notes, Series B, 12.750% due 6/15/10

     67,000
           

       Total Packaging & Containers      4,633,813
           

  Pharmaceuticals — 0.5%       
  575,000    aaiPharma, Inc., Senior Subordinated Notes, 11.000% due 4/1/10 (c)(g)      264,500
  275,000    Leiner Health Products, Inc., Senior Subordinated Notes, 11.000% due 6/1/12      279,125
  840,000    WH Holdings Ltd., Senior Notes, 9.500% due 4/1/11      898,800
           

       Total Pharmaceuticals      1,442,425
           

  Pipelines — 2.4%       
       Dynegy Holdings, Inc.:       
      

Senior Debentures:

      
  800,000   

7.125% due 5/15/18

     724,000
  750,000   

7.625% due 10/15/26

     671,250
      

Senior Secured Notes:

      
  650,000   

9.875% due 7/15/10 (a)

     710,125
       El Paso Corp.:       
  25,000   

10.125% due 7/15/13 (a)

     27,875
  825,000   

Notes, 7.875% due 6/15/12

     833,250
      

Senior Notes:

      
  675,000   

7.800% due 8/1/31

     635,344
  875,000   

7.750% due 1/15/32

     820,312
       Williams Cos., Inc., Notes:       
  300,000   

7.625% due 7/15/19

     333,000
  1,250,000   

7.875% due 9/1/21

     1,393,750
  200,000   

8.750% due 3/15/32

     235,500
           

       Total Pipelines      6,384,406
           

  REITS — 1.3%       
  290,000    Felcor Lodging LP, Senior Notes, 9.000% due 6/1/11      310,300
       Host Marriott LP, Senior Notes:       
  525,000   

7.125% due 11/1/13

     543,375
  1,025,000   

6.375% due 3/15/15 (a)

     1,007,063
  125,000   

Series I, 9.500% due 1/15/07

     133,750
       MeriStar Hospitality Corp., Senior Notes:       
  150,000   

9.000% due 1/15/08

     153,750
  600,000   

9.125% due 1/15/11

     616,500
  600,000    Omega Healthcare Investors, Inc., Senior Notes, 7.000% due 4/1/14      601,500
           

       Total REITS      3,366,238
           

  Retail — 2.0%       
  575,000    Buffets, Inc., Senior Subordinated Notes, 11.250% due 7/15/10      572,125
  125,000    Carrols Corp., Senior Subordinated Notes, 9.000% due 1/15/13 (a)      127,500
  675,000    Denny’s Holdings, Inc., Senior Notes, 10.000% due 10/1/12      683,437
  275,000   

Eye Care Centers of America, Inc., Senior Subordinated Notes, 10.750% due 2/15/15 (a)

     250,250
  300,000    Finlay Fine Jewelry Corp., Senior Notes, 8.375% due 6/1/12      256,500
  750,000    Home Interiors & Gifts, Inc., Senior Subordinated Notes, 10.125% due 6/1/08      603,750
  326,000    Jafra Cosmetics International, Inc., Senior Subordinated Notes, 10.750% due 5/15/11      365,120
  675,000    Jean Coutu Group PJC, Inc., Senior Subordinated Notes, 8.500% due 8/1/14      659,812
  375,000   

PETCO Animal Supplies, Inc., Senior Subordinated Notes, 10.750% due 11/1/11

     418,125
  225,000    RH Donnelley, Inc., Senior Subordinated Notes, 10.875% due 12/15/12      261,563

 

See Notes to Schedule of Investments.

 

7


SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)    May 31, 2005

 

 Face
  Amount  


  

  Security*  


   Value

Retail (continued)       
     Saks, Inc.:       

$ 225,000

  

9.875% due 10/1/11

   $ 239,063

50,000

  

Senior Notes, 7.500% due 12/1/10

     48,500

625,000

  

Sbarro, Inc., Senior Notes, 11.000% due 9/15/09

     609,375

200,000

  

Toys “R” Us, Inc., 7.375% due 10/15/18

     161,000
         

     Total Retail      5,256,120
         

Semiconductors — 0.4%       
    

Amkor Technology, Inc.:

      

850,000

  

Senior Notes, 9.250% due 2/15/08

     775,625

300,000

  

Senior Subordinated Notes, 10.500% due 5/1/09

     228,000
         

     Total Semiconductors      1,003,625
         

Telecommunications — 5.7%       
    

Alamosa Delaware, Inc.:

      

339,000

  

Senior Discount Notes, step bond to yield 8.601% due 7/31/09

     372,052

308,000

  

Senior Notes, 11.000% due 7/31/10

     344,960
    

American Tower Corp., Senior Notes:

      

163,000

  

9.375% due 2/1/09

     171,761

200,000

  

7.500% due 5/1/12

     210,000

365,000

  

American Tower Escrow Corp., Discount Notes, zero coupon bond to yield 8.705% due 8/1/08

     280,138

700,000

  

AT&T Corp., Senior Notes, 9.750% due 11/15/31

     892,500
    

Crown Castle International Corp., Senior Notes:

      

1,000,000

  

10.750% due 8/1/11

     1,068,750

225,000

  

Series B, 7.500% due 12/1/13

     255,938

600,000

  

Insight Midwest LP, Senior Notes, 10.500% due 11/1/10

     642,000

225,000

  

Intelsat Bermuda Ltd., Senior Notes, 7.805% due 1/15/12 (a)

     229,500

1,700,000

  

Lucent Technologies, Inc., Debentures, 6.450% due 3/15/29

     1,479,000

900,000

  

MCI, Inc., Senior Notes, 8.735% due 5/1/14

     1,010,250

1,475,000

  

Nextel Communications, Inc., Senior Notes, 7.375% due 8/1/15

     1,602,219

725,000

  

Nortel Networks Ltd., Notes, 6.125% due 2/15/06

     732,250

195,000

  

PanAmSat Corp., Senior Notes, 9.000% due 8/15/14

     213,038

1,025,000

  

Qwest Corp., 9.125% due 3/15/12 (a)

     1,117,250
    

Qwest Services Corp., Notes:

      

1,000,000

  

13.500% due 12/15/10 (a)

     1,145,000

481,000

  

14.000% due 12/15/14 (a)

     571,187
    

SBA Communications Corp.:

      

150,000

  

Senior Discount Notes, zero coupon bond to yield 7.755% due 12/15/11

     132,000

450,000

  

Senior Notes, 8.500% due 12/1/12 (a)

     479,250

275,000

  

SpectraSite, Inc., Senior Notes, 8.250% due 5/15/10

     292,187

550,000

  

U.S. Unwired, Inc., Senior Secured Notes, Series B, 10.000% due 6/15/12

     605,000

500,000

  

UbiquiTel Operating Co., Senior Notes, 9.875% due 3/1/11

     542,500

500,000

  

Western Wireless Corp., Senior Notes, 9.250% due 7/15/13

     572,500

450,000

  

Zeus Special Subsidiary Ltd., Senior Discount Notes, step bond to yield 9.587% due 2/1/15 (a)

     286,875
         

     Total Telecommunications      15,248,105
         

Textiles — 0.2%       

400,000

  

Collins & Aikman Floor Coverings, Inc., Senior Subordinated Notes, Series B, 9.750% due 2/15/10

     422,000

425,000

  

Simmons Bedding Co., Senior Discount Notes, step bond to yield 15.615% due 12/15/14 (a)

     189,125
         

     Total Textiles      611,125
         

Transportation — 0.1%       

225,000

  

General Maritime Corp., Senior Notes, 10.000% due 3/15/13

     245,250

 

See Notes to Schedule of Investments.

 

8


SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)    May 31, 2005

 

 Face
  Amount  


  

  Security*  


   Value

Transportation (continued)       

$ 1,250,000

  

Holt Group, Inc., Senior Notes, 9.750% due 1/15/06 (c)(d)(g)

   $ 0
         

    

Total Transportation

     245,250
         

    

TOTAL CORPORATE BONDS & NOTES

(Cost — $126,604,268)

     125,986,241
         

CONVERTIBLE BONDS & NOTES — 0.1%       
Electronics — 0.0%       

61,000

  

Sanmina-SCI Corp., Subordinated Debentures, zero coupon bond to yield 4.027% due 9/12/20

     33,169
         

Telecommunications — 0.1%       

325,000

  

American Tower Corp., Notes, 5.000% due 2/15/10

     321,343
         

    

TOTAL CONVERTIBLE BONDS & NOTES

(Cost — $196,214)

     354,512
         

ASSET-BACKED SECURITY — 0.0%       
Diversified Financial Services — 0.0%       

987,700

  

Airplanes Pass-Through Trust, Series D, 10.875% due 3/15/19 (c)(d)(g) (Cost — $987,700)

     0
         

SOVEREIGN BONDS — 48.1%       
Argentina — 2.8%       
    

Republic of Argentina: (c)(e)(g)

      

3,250,000

  

3.010% due 8/3/12

     2,900,625

4,780,000

  

Discount Bonds, Series L-GL, 4.343% due 3/31/23

     2,895,724

2,750,000

  

Par Bonds, Series L-GP, 6.000% due 3/31/23

     1,677,362
         

    

Total Argentina

     7,473,711
         

Brazil — 11.3%       
    

Federative Republic of Brazil:

      

4,715,000

  

12.250% due 3/6/30

     6,182,544

770,000

  

11.000% due 8/17/40

     914,760

14,196,340

  

C Bonds, 8.000% due 4/15/14

     14,506,885

1,075,000

  

Collective Action Securities, 10.500% due 7/14/14

     1,260,438

5,208,891

  

DCB, Series L, 4.313% due 4/15/12 (b)

     5,005,418

2,569,227

  

FLIRB, Series L, 4.250% due 4/15/09 (b)

     2,504,997
         

    

Total Brazil

     30,375,042
         

Bulgaria — 0.5%       

1,100,000

  

Republic of Bulgaria, 8.250% due 1/15/15 (a)

     1,380,500
         

Chile — 0.7%       

1,850,000

  

Republic of Chile, 5.500% due 1/15/13

     1,958,419
         

Colombia — 2.5%       
    

Republic of Colombia:

      

1,312,000

  

8.625% due 4/1/08

     1,430,080

2,000,000

  

10.000% due 1/23/12

     2,293,500

1,450,000

  

10.750% due 1/15/13

     1,730,937

1,000,000

  

Medium-Term Notes, 11.750% due 2/25/20

     1,287,500
         

    

Total Colombia

     6,742,017
         

Ecuador — 0.5%       
    

Republic of Ecuador:

      

260,000

  

12.000% due 11/15/12 (a)

     241,150

1,335,000

  

8.000% due 8/15/30 (a)(b)

     1,053,983
         

    

Total Ecuador

     1,295,133
         

 

See Notes to Schedule of Investments.

 

9


SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)    May 31, 2005

 

 Face
  Amount  


  

  Security*  


   Value

  SOVEREIGN BONDS - (continued)       
  El Salvador — 0.4%       
$ 1,075,000   

Republic of El Salvador, 7.750% due 1/24/23 (a)

   $ 1,187,875
           

  Malaysia — 0.3%       
  625,000   

Federation of Malaysia, 8.750% due 6/1/09

     725,276
           

  Mexico — 10.1%       
      

United Mexican States:

      
  250,000   

11.375% due 9/15/16

     373,625
      

Medium-Term Notes:

      
  3,575,000   

8.300% due 8/15/31

     4,424,062
      

Series A:

      
  3,300,000   

6.375% due 1/16/13

     3,539,250
  1,972,000   

5.875% due 1/15/14

     2,055,317
  10,830,000   

6.625% due 3/3/15

     11,869,680
  3,800,000   

8.000% due 9/24/22

     4,622,700
  245,000   

7.500% due 4/8/33

     281,750
           

      

Total Mexico

     27,166,384
           

  Panama — 2.1%       
      

Republic of Panama:

      
  425,000   

9.625% due 2/8/11

     508,300
  2,675,000   

7.250% due 3/15/15

     2,868,937
  1,405,000   

9.375% due 1/16/23

     1,703,563
  629,987   

PDI, 3.750% due 7/17/16 (b)

     607,937
           

      

Total Panama

     5,688,737
           

  Peru — 2.0%       
      

Republic of Peru:

      
  70,000   

9.125% due 2/21/12

     83,125
  2,200,000   

8.750% due 11/21/33

     2,458,500
  2,955,150   

FLIRB, 5.000% due 3/7/17 (b)

     2,814,042
           

      

Total Peru

     5,355,667
           

  Philippines — 2.0%       
      

Republic of the Philippines:

      
  500,000   

8.250% due 1/15/14

     511,250
  1,550,000   

9.375% due 1/18/17

     1,677,875
  2,600,000   

10.625% due 3/16/25

     2,926,560
  185,111   

FLIRB, Series B, 3.438% due 6/1/08 (b)

     171,691
           

      

Total Philippines

     5,287,376
           

  Russia — 6.9%       
  650,000   

Aries Vermogensverwaltungs GmbH, Russian Federation, Credit-Linked Notes, Series C, 9.600% due 10/25/14 (a)

     836,063
      

Russian Federation:

      
  1,425,000   

8.250% due 3/31/10 (a)

     1,558,594
  14,670,540   

5.000% due 3/31/30 (a)(b)

     16,136,860
           

      

Total Russia

     18,531,517
           

  South Africa — 1.1%       
      

Republic of South Africa:

      
  425,000   

9.125% due 5/19/09

     495,656
  2,325,000   

6.500% due 6/2/14

     2,577,844
           

      

Total South Africa

     3,073,500
           

  Turkey — 2.4%       
      

Republic of Turkey:

      

 

See Notes to Schedule of Investments.

 

10


SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)    May 31, 2005

 

 Face

  Amount  


  

  Security*  


   Value

  Turkey (continued)       
$ 350,000   

11.750% due 6/15/10

   $ 431,375
  3,775,000   

11.500% due 1/23/12

     4,718,750
  575,000   

11.875% due 1/15/30

     800,687
  550,000   

Collective Action Securities, 9.500% due 1/15/14

     640,750
           

      

Total Turkey

     6,591,562
           

  Ukraine — 0.7%       
      

Republic of Ukraine:

      
  858,705   

11.000% due 3/15/07 (a)

     916,668
  875,000   

7.650% due 6/11/13 (a)

     953,750
           

      

Total Ukraine

     1,870,418
           

  Venezuela — 1.8%       
      

Bolivarian Republic of Venezuela:

      
  15,000   

5.375% due 8/7/10

     13,687
  4,150,000   

8.500% due 10/8/14

     4,181,125
  675,000   

Collective Action Securities, 10.750% due 9/19/13

     767,475
           

      

Total Venezuela

     4,962,287
           

      

TOTAL SOVEREIGN BONDS

(Cost — $121,032,202)

     129,665,421
           

  ESCROWED SECURITIES (d)(g) — 0.0%       
  1,750,000   

Breed Technologies, Inc.

     0
  1,000,000   

Imperial Holly Corp.

     0
  625,000   

Pillowtex Corp.

     0
  397,208   

Vlasic Foods International, Inc.

     14,379
           

      

TOTAL ESCROWED SECURITIES

(Cost — $0)

     14,379
           

  LOAN PARTICIPATION (b)(f)) — 0.2%       
  Morocco — 0.2%       
  416,666   

Kingdom of Morocco, Tranche A, 3.803% due 1/2/09 (JPMorgan Chase & Co.) (Cost — $411,614)

     412,499
           

  Shares  

         
  COMMON STOCK — 2.2%       
  CONSUMER DISCRETIONARY — 0.3%       
  Household Durables — 0.0%       
  10,194   

Mattress Discounters Co. (d)(g)

     0
           

  Machinery — 0.0%       
  5   

Glasstech, Inc. (d)(g)

     0
           

  Media — 0.3%       
  93,544   

UnitedGlobalCom, Inc., Class A Shares (g)

     851,250
           

      

TOTAL CONSUMER DISCRETIONARY

     851,250
           

  INFORMATION TECHNOLOGY — 0.0%       
  Computers & Peripherals — 0.0%       
  12,166   

Axiohm Transaction Solutions, Inc. (d)(g)

     0
           

  MATERIALS — 0.1%       
  Chemicals — 0.1%       
  12,121   

Applied Extrusion Technologies, Inc., Class A Shares (d)(g)

     282,222
           

  TELECOMMUNICATION SERVICES — 1.8%       
  Diversified Telecommunication Services — 1.8%       
  29,465   

NTL, Inc. (g)

     1,894,010
  27,170   

SpectraSite, Inc. (g)

     1,734,805
  57,202   

Telewest Global, Inc. (g)

     1,196,094
           

      

TOTAL TELECOMMUNICATION SERVICES

     4,824,909
           

 

See Notes to Schedule of Investments.

 

11


SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)    May 31, 2005

 

  Shares  

  

  Security*  


   Value

  COMMON STOCK (continued)       
      

TOTAL COMMON STOCK

(Cost — $5,947,740)

   $ 5,958,381
           

  PREFERRED STOCK — 0.0%       
  CONSUMER DISCRETIONARY — 0.0%       
  12   

Anvil Holdings, Inc., 13.000%, Senior Exchangable (g)

     111
  5   

Glasstech, Inc. (d)(g)

     0
           

      

TOTAL CONSUMER DISCRETIONARY

     111
           

  FINANCIALS — 0.0%       
  Diversified Financial Services — 0.0%       
      

TCR Holding Corp. (e)(f):

      
  4,091   

Class B Shares

     4
  2,250   

Class C Shares

     2
  5,932   

Class D Shares

     6
  12,271   

Class E Shares

     13
           

      

TOTAL FINANCIALS

     25
           

      

TOTAL PREFERRED STOCK

(Cost — $1,471)

     136
           

  Warrants  

         
  WARRANTS — 0.2%       
  Capital Markets — 0.0%       
  1,000   

Mattress Discounters Corp., expires 7/7/15 (d)(g)

     0
  300   

Mueller Holdings, Inc., expires 4/15/14 (g)

     34,575
  4,202   

Pillowtex Corp., expires 11/9/24 (d)(g)

     4
           

      

Total Capital Markets

     34,579
           

  Communications Equipment — 0.0%       
  365   

American Tower Escrow Corp., expires 8/1/08 (g)

     92,804
  750   

UbiquiTel Operating Co., Inc. expires 4/15/10 (d)(g)

     7
           

      

Total Communications Equipment

     92,811
           

  Diversified Financial Services — 0.0%       
  1,837,246   

ContiFinancial Corp., Unit of Interest (g)

     2,297
           

  Venezuela — 0.2%       
  19,975   

Bolivarian Republic of Venezuela Oil-linked Payment Obligation, expires 4/15/20 (g)

     419,475
           

      

TOTAL WARRANTS

(Cost — $79,914)

     549,162
           

  CONVERTIBLE PREFERRED STOCK — 0.3%       
  TELECOMMUNICATION SERVICES — 0.3%       
  Wireless Telecommunication Services — 0.3%       
  902   

Alamosa Holdings, Inc., 7.500% Cumulative Convertible, Series B (Cost — $274,160)

     832,884
           

      

TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS

(Cost — $255,535,283)

     263,773,615
           

 Face
    Amount    


         
  REPURCHASE AGREEMENTS — 2.1%(g)(h)       
$ 2,646,000   

Interest in $597,142,000 joint tri-party repurchase agreement dated 5/31/05 with Deutche Bank Securities, Inc., 3.050% due 6/1/05; Proceeds at maturity- $2,646,224; (Fully collateralized by various U.S. government agency obligations, 0.000% to 17.048% due 4/25/06 to 5/15/35; Market value - $2,698,921)

     2,646,000

 

See Notes to Schedule of Investments.

 

12


SALOMON BROTHERS GLOBAL PARTNERS INCOME FUND INC.

 

Schedule of Investments (unaudited) (continued)    May 31, 2005

 

 Face
  Amount  


  

  Security*  


   Value

$ 3,000,000   

Interest in $579,182,000 joint tri-party repurchase agreement dated 5/31/05 with Merrill Lynch & Co., Inc., 3.020% due 6/1/05; Proceeds at maturity - $3,000,252; (Fully collateralized by various U.S. government agency obligations, 0.000% to 5.980% due 6/8/05 to 2/12/24; Market value - $3,060,002)

   $ 3,000,000
           

      

TOTAL REPURCHASE AGREEMENTS

(Cost — $5,646,000)

     5,646,000
           

      

TOTAL INVESTMENTS — 100.0%

(Cost — $261,181,283#)

   $ 269,419,615
           

 

* All Securities segregated as collateral pursuant to loan agreement and/or reverse repurchase agreements.

 

(a) Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid pursuant to guidelines approved by the Board of Directors.

 

(b) Variable rate securities. Coupon rates disclosed are those which are in effect at May 31, 2005. Maturity date shown is the date of the next coupon rate reset or actual maturity.

 

(c) Security is currently in default.

 

(d) Security is valued in accordance with fair valuation procedures.

 

(e) All Argentine bonds were tendered as of February 25, 2005, under a plan of reorganization of Argentina. On June 6, 2005, bonds were exchanged for Republic of Argentina, Discount Bonds, 5.830% due 12/31/33 which are denominated in Argentina peso.

 

(f) Participation interest was acquired through the financial institutions indicated parenthetically.

 

(g) Non-income producing security.

 

# Aggregate cost for federal income tax purposes is substantially the same.

 

Abbreviations used in this schedule:


   

 

DCB   — Debt Conversion Bond.
FLIRB   — Front-Loaded Interest Reduction Bonds.
PDI   — Past Due Interest.

 

See Notes to Schedule of Investments.

 

13


Notes to Schedule of Investments (unaudited)

 

1. Organization and Significant Accounting Policies

 

The Salomon Brothers Global Partners Income Fund Inc. (the “Fund”) was incorporated in Maryland 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. Debt securities are valued at the mean between the bid and asked price provided by an independent pricing service that are based on transactions in debt obligations, quotations from bond dealers, market transactions in comparable securities and various relationships between securities. Publicly traded foreign government debt securities are typically traded internationally in the over-the-counter market, and are valued at the mean between the bid and asked price as of the close of business of that market. However, when the spread between the bid and asked price exceeds five percent of the part value of the security, the security is valued at the bid price. Equity securities for which market quotations are available are valued at the last sale price or official closing price on the primary market or exchange on which they trade. When prices are not readily available, or are determined not to reflect 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 Fund’s Board of Directors. Short-term obligations with maturities 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 Fund’s policy that its custodian or a third party custodian takes possession of the underlying collateral securities, the market 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 market 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) Credit Default Swaps. The Fund enters into credit default swap contracts (“swaps”) for investment purposes, to manage its credit risk or to add leverage. As a seller in a credit default swap contract, the Fund is required to pay the notional or other agreed-upon value to the counterparty in the event of a default by a third party, such as a U.S. or foreign corporate issuer, on the referenced debt obligation. In return, the Fund receives from the counterparty a periodic stream of payments over the term of the contract provided that no event of default has occurred. If no default occurs, the Fund keeps the stream of payments and has no payment obligations. Such periodic payments are accrued daily and accounted for as realized gain.

 

The Fund may also purchase credit default swap contracts in order to hedge against the risk of default of debt securities held, in which case the Fund functions as the counterparty referenced in the preceding paragraph. As a purchaser of a credit default swap contract, the Fund receives the notional or other agreed upon value from the counterparty in the event of a default by a third party, such as a U.S. or foreign corporate issuer on the referenced debt obligation. In return, the Fund makes periodic payments to the counterparty over the term of the contract provided no event of default has occurred. Such periodic payments are accrued daily and accounted for as realized loss.

 

Swaps are marked-to-market daily based upon quotations from market makers and the change in value, if any, is recorded as unrealized appreciation or depreciation in the Fund’s Statement of Operations. For a credit default swap sold by the Fund, payment of the agreed upon amount made by the Fund in the event of default of the referenced debt obligation is recorded as the cost of the referenced debt obligation purchased/received. For a credit default swap purchased by the Fund, the agreed upon amount received by the Fund in the event of default of the referenced debt obligation is recorded as proceeds from sale/delivery of the referenced debt obligation and the resulting gain or loss realized on the referenced debt obligation is recorded as such by the Fund.

 

Entering into Credit Default Swaps involves, to varying degrees, elements of credit, market and documentation risk in excess of the related amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there will be unfavorable changes in net interest rates.

 

14


(d) Reverse Repurchase Agreements. The Fund may enter into reverse repurchase agreements in which the Fund sells portfolio securities and agrees to repurchase them from the buyer at a specified date and price. Whenever the Fund enters into a reverse repurchase agreement, the Fund’s custodian delivers liquid assets to the counterparty in an amount at least equal to the repurchase price marked-to-market daily (including accrued interest). The Fund pays interest on amounts obtained pursuant to reverse repurchase agreements. Reverse repurchase agreements are considered to be borrowings which may create leverage risk by the Fund.

 

(e) Loan Participations. The Fund may invest in loans arranged through private negotiation between one or more financial institutions. The Fund’s investment in any such loan may be in the form of a participation in or an assignment of the loan. 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.

 

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.

 

(f) Foreign Currency Translation. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the respective dates of such transactions.

 

The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

 

Net realized foreign exchange gains or losses arise from sales of foreign currencies, including gains and losses on forward foreign currency contracts, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities, at the date of valuation, resulting from changes in exchange rates.

 

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

 

(g) Credit and Market Risk With Emerging Debt. The Fund invests in high yield and emerging market instruments that are subject to certain credit and market risks. The yields of high yield and emerging market debt obligations reflect, among other things, perceived credit risk. The Fund’s investment in securities rated below investment grade typically involve risks not associated with higher rated securities including, among others, greater risk related to 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. The Fund’s investment in non-dollar denominated securities may also result in foreign currency losses caused by devaluations and exchange rate fluctuations.

 

(h) Security Transactions. Security Transactions are accounted for on a trade date basis.

 

2. Investments

 

At May 31, 2005, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

 

Gross unrealized appreciation

   $ 17,583,168  

Gross unrealized depreciation

     (9,344,836 )
    


Net unrealized appreciation

   $ 8,238,332  
    


 

15


At May 31, 2005, the Fund had the following credit default swap contracts:

 

Swap Counterparty:   Morgan Stanley & Co. International Ltd.
Effective Date:   03/16/05
Reference Entity:   Federative Republic of Brazil, 12.250% due 3/6/30
Notional Amount:   $6,000,000 Fixed Rate 3.600%
Termination Date:   03/20/10
Unrealized Appreciation:   $68,640  
   

 

At May 31, 2005, the Fund held one loan participation with a total cost of $411,614 and a total market value of $412,499.

 

At May 31, 2005, the Fund had the following open reverse repurchase agreements:

 

 Face
  Amount  


  

  Security  


   Value

$ 4,248,000   

Reverse Repurchase Agreement with JPMorgan Chase & Co., dated 5/5/05 bearing 2.200% to be repurchased at $4,342,754 on 5/5/06, collateralized by: $4,000,000 Federative Republic of Brazil, C Bond, 8.000% due 4/15/14; Market value (including accrued interest) - $4,128,611

   $ 4,248,000
  10,750,000   

Reverse Repurchase Agreement with JPMorgan Chase & Co., dated 5/5/05 bearing 2.850% to be repurchased at $11,060,630 on 5/5/06 collateralized by: $10,000,000 United Mexican States, Medium-Term Notes, Series A, 6.625% due 3/15/15; Market value (including accrued interest) - $11,122,009

     10,750,000
  791,200   

Reverse Repurchase Agreement with JPMorgan Chase & Co., dated 5/5/05 bearing 0.150% to be repurchased at $792,403 on 5/5/06, collateralized by: $575,000 Republic of Turkey, 11.875% due 1/15/30; Market value (including accrued interest) - $826,529

     791,200
  4,690,000   

Reverse Repurchase Agreement with UBS Securities LLC, dated 5/26/05 bearing 3.100% to be repurchased at $4,837,409 on 5/26/06, collateralized by: $4,000,000 Federative Republic of Brazil, 12.250% due 3/6/30; Market value (including accrued interest) - $5,360,842

     4,690,000
           

      

Total Reverse Repurchase Agreements

(Cost - $20,479,200)

   $ 20,479,200
           

 

3. Loan

 

At May 31, 2005, the Fund had a $81,000,000 loan available pursuant to a revolving credit and security agreement, of which the Fund had $59,124,414 outstanding with CXC LLC, (the “Lender”), an affiliate of Citigroup, a commercial paper conduit issuer for which Citicorp North America, Inc., an affiliate of the Adviser acts as administrative agent. The loans generally bear interest at a variable rate based on the weighted average interest rates of the 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 registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934

 

  (b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are likely to materially affect the registrant’s 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 Partners Income Fund Inc.

 

By   /S/    R. JAY GERKEN         
    R. Jay Gerken
    Chief Executive Officer
Date   

July 29, 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   

July 29, 2005

 

 

By

  /S/    FRANCES M. GUGGINO         
    Frances M. Guggino
    Chief Financial Officer
Date  

July 29, 2005