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Previous: TCW GALILEO FUNDS INC, NSAR-A, 1995-06-29 |
Next: BLACKROCK BROAD INVESTMENT GRADE 2009 TERM TRUST INC, NSAR-A, 1995-06-29 |
<PAGE>
TCW GALILEO FUNDS, INC.
SEMI-ANNUAL REPORT
APRIL 30, 1995
<PAGE>
TCW GALILEO FUNDS, INC.
TABLE OF CONTENTS
- - -----------------
Letter to Shareholders..................................................... 3
Schedule of Investments:
TCW Galileo Money Market Fund......................................... 4
TCW Galileo High Grade Fixed Income Fund.............................. 6
TCW Galileo High Yield Bond Fund...................................... 9
TCW Galileo Mortgage Backed Securities Fund........................... 16
TCW Galileo Long-Term Mortgage Backed Securities Fund................. 20
TCW Galileo Core Equity Fund.......................................... 22
TCW Galileo Earnings Momentum Fund.................................... 25
TCW Galileo Small Cap Growth Fund..................................... 31
TCW Galileo Asia Pacific Equity Fund.................................. 36
TCW Galileo Emerging Markets Fund..................................... 40
TCW Galileo Latin America Equity Fund................................. 47
Statements of Assets and Liabilities....................................... 50
Statements of Operations................................................... 54
Statements of Changes in Net Assets........................................ 58
Notes to Financial Statements.............................................. 69
Financial Highlights....................................................... 76
Shareholder Information.................................................... 89
1
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK.
2
<PAGE>
TCW GALILEO FUNDS, INC.
TO OUR SHAREHOLDERS
- - -------------------
We are pleased to present the April 30, 1995 Semi-Annual Report for the TCW
Galileo Funds. During the last six months, we have witnessed a number of
dramatic events impacting both the domestic and foreign markets, including the
sudden devaluation of the Mexican Peso and its effect on other emerging markets,
as well as the recent rally in the U.S. stock and bond markets in response to
the lower interest rate environment and improvement in corporate profits. We
have attempted to structure the Funds' portfolios to capture the benefits of
improving market conditions, while managing the exposure of the Funds. We are
cautiously optimistic that 1995 will witness further improvements in all our
Funds including our emerging markets funds. Below is a summary of each Fund's
return through April 30, 1995:
<TABLE>
<CAPTION>
Net Asset Value
per Share Total Return
--------------- --------------------------------------
April 30, Six Months Ended Inception through
1995 April 30, 1995 April 30, 1995
--------------- ---------------- -----------------
<S> <C> <C> <C>
Domestic Fixed Income:
TCW Galileo Money Market Fund $ 1.00 2.74% 47.43% /(1)/
TCW Galileo High Grade Fixed Income Fund 9.04 4.86 3.63 /(2)/
TCW Galileo High Yield Bond Fund 9.54 7.13 17.95 /(2)/
TCW Galileo Mortgage Backed Securities Fund 9.41 4.42 7.83 /(2)/
TCW Galileo Long-Term Mortgage Backed Securities Fund 9.08 6.94 3.61 /(3)/
Domestic Equities:
TCW Galileo Core Equity Fund 11.98 4.01 20.65 /(2)/
TCW Galileo Earnings Momentum Growth Fund 10.13 1.35 1.35 /(4)/
TCW Galileo Small Cap Growth Fund 10.34 10.12 3.40 /(5)/
International:
TCW Galileo Asia Pacific Equity Fund 8.07 -18.27 -16.71 /(5)/
TCW Galileo Emerging Markets Fund 7.25 -25.49 -27.50 /(5)/
TCW Galileo Latin America Equity Fund 8.31 -38.04 0.80 /(2)/
</TABLE>
(1) Return is for the period July 14, 1988 through April 30, 1995.
(2) Return is for the period March 1, 1993 through April 30, 1995.
(3) Return is for the period June 17, 1993 through April 30, 1995.
(4) Return is for the period November 1, 1994 through April 30, 1995.
(5) Return is for the period March 1, 1994 through April 30, 1995.
The TCW Galileo Funds are committed to provide you with superior professional
investment management and distinctive personal service. They have been designed
to provide our clients with a broad range of investment strategies featuring
daily liquidity, competitive management fees and no front-end loads, 12b-1 fees
or deferred sales charges. Please call your Account Executive or our Shareholder
Relations Department at (800) FUND TCW if you have any questions regarding any
of the Galileo funds.
Very truly yours,
/s/ Marc I. Stern
Marc I. Stern
Chairman of the Board
June 22, 1995
3
<PAGE>
TCW GALILEO MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
- - -----------------------------------
<TABLE>
<CAPTION>
Principal
Amount INVESTMENTS Value
- - ----------------- ----------- -------------
<C> <S> <C>
AGENCY FIXED INCOME SECURITIES (10.7% OF NET ASSETS)
$ 1,000,000 Federal Farm Credit Bank Discount Note, 5.95%,
due 02/23/96 $ 950,747
5,000,000 Federal Home Loan Bank Note, 5.19%, due 06/13/95 4,992,089
2,000,000 Federal Home Loan Mortgage Corp. Discount Note,
5.86%, due 05/02/95 1,999,674
3,000,000 Federal National Mortgage Assoc. Discount Note,
5.86%, due 05/23/95 2,989,257
-------------
TOTAL AGENCY FIXED INCOME SECURITIES
(Cost: $10,902,385) 10,931,767
-------------
COMMERCIAL PAPER (87.4%)
4,000,000 Abbott Laboratories, 5.98%, due 05/10/95 3,994,020
3,000,000 American Express Credit Corp., 5.95%, due 05/15/95 2,993,058
2,000,000 American General Finance Corp., 6%, due 06/12/95 1,986,000
2,000,000 American General Finance Corp., 6.04%, due 07/11/95 1,976,176
1,100,000 Ameritech Corp., 5.97%, due 07/06/95 1,087,960
3,300,000 Ameritech Corp., 5.94%, due 05/30/95 3,284,209
3,645,000 BASF Corp., 5.93%, due 05/01/95 3,645,000
3,000,000 BellSouth Telecommunications, Inc., 5.94%, due 05/11/95 2,995,050
2,000,000 BellSouth Telecommunications, Inc., 5.94%, due 05/23/95 1,992,740
4,000,000 Cargill, Inc., 6.03%, due 05/31/95 3,979,900
1,000,000 Chevron Oil Finance Co., 5.93%, due 05/15/95 997,694
2,000,000 Ciba-Geigy Corp., 5.98%, due 05/11/95 1,996,678
2,000,000 Ciba-Geigy Corp., 6.03%, due 07/07/95 1,977,555
1,000,000 Ciesco L.P., 6%, due 07/18/95 987,000
3,000,000 Ciesco L.P., 5.99%, due 07/20/95 2,960,067
2,000,000 Deere & Co., 5.96%, due 05/22/95 1,993,047
1,100,000 Du Pont (E.I.) De Nemours & Co., 6%, due 07/05/95 1,088,083
4,000,000 Florida Power & Light Co., 5.96%, due 05/16/95 3,990,067
2,000,000 Florida Power Corp., 5.96%, due 05/10/95 1,997,020
1,700,000 Florida Power Corp., 5.98%, due 05/11/95 1,697,176
2,500,000 Ford Motor Credit Co., 5.91%, due 05/04/95 2,498,769
1,000,000 General Electric Capital Corp., 6%, due 05/22/95 996,500
1,000,000 Hartford Steam Boiler Inspection & Insurance Company,
6%, due 07/28/95 985,333
2,800,000 Hartford Steam Boiler Inspection & Insurance Company,
5.98%, due 06/06/95 2,783,256
1,000,000 Hartford Steam Boiler Inspection & Insurance Company,
6.05%, due 06/20/95 991,597
</TABLE>
See accompanying Notes to Financial Statements.
4
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1995
<TABLE>
<CAPTION>
Principal
Amount INVESTMENTS Value
- - ----------------- ----------- -------------
<C> <S> <C>
COMMERCIAL PAPER (CONTINUED)
$ 4,000,000 Intel Corp., 6.02%, due 06/30/95 $ 3,959,867
1,000,000 International Lease Finance Corp., 6%, due 05/01/95 1,000,000
3,000,000 International Lease Finance Corp, 6.02%, due 05/01/95 3,000,000
2,500,000 Pitney-Bowes Credit Corp., 6.09%, due 09/07/95 2,445,444
1,000,000 Pitney-Bowes Credit Corp., 6.08%, due 07/06/95 988,853
500,000 Pitney-Bowes Credit Corp., 6.02%, due 07/12/95 493,980
2,500,000 Prudential Funding Corp., 5.93%, due 05/03/95 2,499,176
1,500,000 Prudential Funding Corp., 5.98%, due 05/22/95 1,494,768
1,000,000 Raytheon Co., 5.94%, due 05/26/95 995,875
2,000,000 SAFECO Credit Co., 6.25%, due 05/25/95 1,991,667
2,000,000 SAFECO Credit Co., 6.15%, due 05/25/95 1,991,800
1,775,000 Sara Lee Corp., 5.95%, due 05/17/95 1,770,306
2,000,000 Sara Lee Corp., 5.95%, due 05/25/95 1,992,067
2,000,000 Student Loan Corp., 5.92%, due 05/02/95 1,999,671
3,000,000 Toyota Motor Credit Corp., 6.4%, due 11/13/95 2,895,467
1,000,000 Toyota Motor Credit Corp., 6.15%, due 12/29/95 958,658
3,000,000 Transamerica Finance Corp., 5.98%, due 05/12/95 2,994,518
-------------
TOTAL COMMERCIAL PAPER (Cost: $88,978,641) 89,346,072
-------------
CORPORATE FIXED INCOME SECURITIES (2.2%)
2,000,000 Associates Corp. of North America, 8.875%, due 08/01/95 2,007,516
225,000 Toyota Motor Credit Corp., 5.75%, due 06/15/95 224,924
-------------
TOTAL CORPORATE FIXED INCOME SECURITIES
(Cost: $2,242,886) 2,232,440
-------------
SHORT-TERM INVESTMENTS (COST: $732)(0%)
732 Bank of New York Depositary Reserve, 5.25%, due 05/01/95 732
-------------
TOTAL INVESTMENTS (COST: $102,124,644) (100.3%) 102,511,011
EXCESS OF LIABILITIES OVER OTHER ASSETS (-0.3%) (353,304)
-------------
NET ASSETS (100%) $ 102,157,707
=============
</TABLE>
See accompanying Notes to Financial Statements.
5
<PAGE>
TCW GALILEO HIGH GRADE FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
- - ----------------------------------
<TABLE>
<CAPTION>
Principal
Amount FIXED INCOME SECURITIES Value
- - ----------------- ----------------------- -------------
<C> <S> <C>
ASSET-BACKED SECURITIES (4.6% OF NET ASSETS)
$ 238,189 AFC Home Equity Loan Trust, Series 1992-4, Class A,
6.2%, due 09/15/07 $ 227,780
239,957 AFC Home Equity Loan Trust, Series 1993-2, Class A,
6.0%, due 01/20/13 227,191
587,082 Old Stone Credit Corp Home Equity Trust 1992-4A,
6.55%, due 11/25/07 565,829
719,343 UCFC Home Equity Loans 1993-D, Class A-1, 5.45%,
due 07/10/13 676,182
-------------
TOTAL ASSET-BACKED SECURITIES (Cost: $1,806,213) 1,696,982
-------------
FEDERAL AGENCY OBLIGATIONS-AGENCY
PASS-THROUGHS (37.1%)
1,002,566 Federal Home Loan Mortgage Corp., Gold Pool #G10304,
6.5%, due 04/01/09 962,463
173,637 Federal Home Loan Mortgage Corp., Gold Pool #M18527,
6.0%, due 06/01/98 169,727
2,000,000 Federal Home Loan Mortgage Corp., Gold 30 year TBA,
9.5%, due 05/01/25 2,086,860
2,775,000 Federal Home Loan Mortgage Corp., Gold 30 year TBA,
6.5%, due 05/01/25 2,560,798
1,826,355 Federal National Mortgage Association, Pool #190267,
8.5%, due 10/01/24 1,856,600
997,800 Federal National Mortgage Association, Pool #190264,
8.0%, due 07/01/24 996,552
1,714,224 Federal National Mortgage Association, Pool #290364,
8.0%, due 11/01/24 1,712,081
337,984 Federal National Mortgage Association, Pool #304278,
8.0%, due 02/01/25 377,512
1,006,851 Federal National Mortgage Association, Pool #307103,
8.0%, due 03/01/25 1,005,592
1,915,000 Government National Mortgage Association, 30 year TBA,
8.5%, due 05/01/25 1,950,906
-------------
TOTAL FEDERAL AGENCY OBLIGATIONS-
AGENCY PASS-THROUGHS (Cost: $13,580,975) 13,679,091
-------------
FINANCIAL (4.1%)
1,100,000 Citicorp, 7.125%, due 03/15/04 1,057,375
375,000 First Chicago Corp., 7.625%, due 01/15/03 372,656
60,000 Security Pacific Corp., 11.5%, due 11/15/00 70,200
-------------
TOTAL FINANCIAL (Cost: $1,531,087) 1,500,231
-------------
</TABLE>
See accompanying Notes to Financial Statements.
6
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1995
<TABLE>
<CAPTION>
Principal
Amount FIXED INCOME SECURITIES Value
- - ----------------- ----------------------- -------------
<C> <S> <C>
FOREIGN BONDS DENOMINATED IN U.S.
DOLLARS (0.3%) (COST: $104,646)
$ 100,000 TransCanada Pipelines Limited, 9.875%, due 01/01/21 $ 114,875
-------------
INDUSTRIAL (11.6%)
200,000 Carnival Cruise Lines Inc., 7.2%, due 10/01/23 176,750
200,000 General Motors Corp., 9.125%, due 07/15/01 214,000
1,000,000 General Motors Corp., 9.4%, due 07/15/21 1,106,250
1,000,000 International Paper Co., 8.125%, due 06/15/24 982,500
1,600,000 Northrop Grumman Corp., 9.375%, due 10/15/24 1,680,000
100,000 Whirlpool Corp., 9.1%, due 03/15/04 108,375
-------------
TOTAL INDUSTRIAL (Cost: $4,208,905) 4,267,875
-------------
RETAIL (3.6%)
90,000 May Department Stores Company, 9.75%, due 02/15/21 104,400
1,000,000 May Department Stores Company, 8.375%, due 08/01/24 1,003,750
200,000 J. C. Penney Company, Inc., 9.05%, due 03/01/01 215,250
-------------
TOTAL RETAIL (Cost: $1,297,723) 1,323,400
-------------
U.S. TREASURY OBLIGATIONS (35.5%)
3,700,000 United States Treasury Bonds, 8.125%, due 08/15/21 3,978,684
1,000,000 United States Treasury Bonds, 7.5%, due 11/15/24 1,013,650
1,400,000 United States Treasury Notes, 9.5%, due 11/15/95 1,425,004
2,385,000 United States Treasury Notes, 8.125%, due 02/15/98 2,469,119
1,340,000 United States Treasury Notes, 7.25%, due 11/30/96 1,353,963
2,860,000 United States Treasury Notes, 6.25%, due 08/31/96 2,850,648
-------------
TOTAL U. S. TREASURY OBLIGATIONS
(Cost: $12,992,333) 13,091,068
-------------
UTILITY - ELECTRIC & GAS (0.3%) (COST: $93,429)
90,000 Chugach Electric Association Services A,
9.14 %, due 03/15/22 96,525
-------------
TOTAL FIXED INCOME SECURITIES (COST: $35,615,311)(97.1%) 35,770,047
-------------
</TABLE>
See accompanying Notes to Financial Statements.
7
<PAGE>
TCW GALILEO HIGH GRADE FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED)
<TABLE>
<CAPTION>
Principal
Amount FIXED INCOME SECURITIES Value
- - ----------------- ----------------------- -------------
<C> <S> <C>
TOTAL SHORT-TERM INVESTMENTS (COST $4,705,908)(12.8%)
-----------------------------------------------------
$ 4,705,908 Bank of New York Depositary Reserve, 5.25%, due 05/01/95 $ 4,705,908
-------------
TOTAL INVESTMENTS (COST: $40,321,219)(109.9%) 40,475,955
EXCESS OF LIABILITIES OVER OTHER ASSETS (-9.9%) (3,642,984)
-------------
NET ASSETS (100%) $ 36,832,971
=============
</TABLE>
See accompanying Notes to Financial Statements.
8
<PAGE>
TCW GALILEO FUNDS, INC.
TCW GALILEO HIGH YIELD BOND FUND
April 30, 1995
SCHEDULE OF INVESTMENTS (UNAUDITED)
- - -----------------------------------
<TABLE>
<CAPTION>
Principal
Amount CORPORATE FIXED INCOME SECURITIES Value
- - ----------------- --------------------------------- -------------
<C> <S> <C>
CONSUMER STAPLES (11.3% OF NEW ASSETS)
FOOD AND DRUG RETAILING (2.1%)
$ 625,000 Dominick's Finer Foods, Inc., (144A), 10.875%, due 05/01/05 $ 628,906*
560,000 Food 4 Less Supermarkets, Inc., 10.45%, due 04/15/00 548,800
405,000 Homeland Stores, Inc., Series B, 11.75%, due 03/01/99 315,900
710,000 Ralphs Grocery Company, 10.25%, due 07/15/02 706,450
-------------
Total Food and Drug Retailing 2,200,056
-------------
HEALTHCARE AND HOSPITAL MANAGEMENT (3.5%)
940,000 Dade International, Inc., (144A), 13%, due 02/01/05 968,200*
760,000 Integrated Health Services, Inc., 10.75%, due 07/15/04 796,100
950,000 National Medical Enterprises, 10.125%, due 03/01/05 992,750
855,000 OrNda HealthCorp, 12.25%, due 05/15/02 934,088
-------------
Total Healthcare and Hospital Management 3,691,138
-------------
OTHER CONSUMER STAPLES (5.6%)
860,000 Astrum International Corp., 11.5%, due 06/08/03 903,000
1,385,000 Chiquita Brands, Inc., 9.125%, due 03/01/04 1,274,200
935,000 Curtice-Burns Foods, Inc., 12.25%, due 02/01/05 981,750
950,000 Doskocil Companies, Inc., 9.75%, due 07/15/00 878,750
590,000 La Petite Holdings Corp., 9.625%, due 08/01/01 505,925
545,000 Revlon Consumer Products Corp., 9.375%, due 04/01/01 517,750
250,000 Revlon Consumer Products Corp., 9.5%, due 06/01/99 243,750
550,000 Specialty Foods Corp., 10.25%, due 08/15/01 541,750
-------------
Total Other Consumer Staples 5,846,875
-------------
TOTAL CONSUMER STAPLES (Cost: $11,903,081) 11,738,069
-------------
</TABLE>
* Restricted security. (See Note 6)
See accompanying Notes to Financial Statements.
9
<PAGE>
TCW GALILEO HIGH YIELD BOND FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
- - -----------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount CORPORATE FIXED INCOME SECURITIES Value
- - ----------------- --------------------------------- -------------
<C> <S> <C>
CONSUMER CYCLICALS (31.8%)
AUTO PARTS AND EQUIPMENT (1.8%)
$ 1,075,000 Motor Wheel Corp., 11.5%, due 03/01/00 $ 854,625
1,225,000 Venture Holdings Trust, 9.75%, due 04/01/04 1,056,563
-------------
Total Auto Parts and Equipment 1,911,188
-------------
ENTERTAINMENT AND LEISURE TIME (7.4%)
860,000 AMC Entertainment, Inc., 11.875%, due 08/01/00 926,650
915,000 Aztar Corp., 11%, due 10/01/02 908,138
485,000 Aztar Corp., 13.75%, due 10/01/04 535,925
900,000 Bally's Grand, Inc., Series B, 10.375%, due 12/15/03 873,000
1,135,000 Bally's Park Place, Inc., 9.25%, due 03/15/04 1,027,175
1,150,000 California Hotel Finance Corp., 11%, due 12/01/02 1,155,750
1,060,000 Embassy Suites, Inc., 10.875%, due 04/15/02 1,144,800
950,000 Showboat Ground Lease, Variable Rate, due 06/30/00 812,250
325,000 United Artists Theatre Circuit, Inc., 11.5%, due 05/01/02 348,156
-------------
Total Entertainment and Leisure Time 7,731,844
-------------
LODGING (3.0%)
1,250,000 John Q. Hammons Hotels, L.P., 8.875%, due 02/15/04 1,168,750
725,000 La Quinta Motor Inns, Inc., 9.25%, due 05/15/03 721,375
1,260,000 Red Roof Inns, Inc., Series B, 9.625%, due 12/15/03 1,200,150
-------------
Total Lodging 3,090,275
-------------
MEDIA (6.4%)
1,200,000 Ackerley Communications, Inc., 10.75%, due 10/01/03 1,230,000
685,000 Continental Cablevision, Inc., 8.875%, due 09/15/05 676,438
750,000 Garden State Newspapers, Inc., 12%, due 07/01/04 750,000
870,000 Heritage Media Corp., 11%, due 06/15/02 918,937
800,000 Jones Intercable, Inc., 11.5%, due 07/15/04 860,000
695,000 K-III Communications Corp., 10.625%, due 05/01/02 724,538
950,000 Rogers Cablesystems, (144A), 10%, due 03/15/05 964,250*
635,000 Telemundo Group, 10.25%, due 12/29/01 552,450
-------------
Total Media 6,676,613
-------------
</TABLE>
* Restricted security. (See Note 6)
See accompanying Notes to Financial Statements.
10
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1995
<TABLE>
<CAPTION>
Principal
Amount CORPORATE FIXED INCOME SECURITIES Value
- - ----------------- --------------------------------- -------------
<C> <S> <C>
RESTAURANTS (2.8%)
$ 920,000 Family Restaurants, Inc., 9.75%, due 02/01/02 $ 630,200
1,040,000 Flagstar Companies, Inc., 10.75%, due 09/15/01 977,600
465,000 Flagstar Companies, Inc., 10.875%, due 12/01/02 437,100
1,025,000 Foodmaker, Inc., 9.25%, due 03/01/99 886,625
-------------
Total Restaurants 2,931,525
-------------
RETAILERS (4.7%)
1,130,000 Brylane, L.P., 10%, due 09/01/03 1,090,450
1,310,000 Cole National Group, Inc., 11.25%, due 10/01/01 1,257,600
1,025,000 Orchard Supply Hardware Corp., 9.375%, due 02/15/02 840,500
880,000 Payless Cashways, Inc., 9.125%, due 04/15/03 750,200
750,000 Waban, Inc., 11%, due 05/15/04 770,625
235,000 Wickes Lumber Company, 11.625%, due 12/15/03 222,075
-------------
Total Retailers 4,931,450
-------------
TEXTILES AND APPAREL (3.0%)
765,000 Ithaca Industries, Inc., 11.125%, due 12/15/02 703,800
920,000 Reeves Industries, Inc., 11%, due 07/15/02 956,800
660,000 Salant Corp., 10.5%, due 12/31/98 610,500
1,040,000 United States Leather, Inc., 10.25%, due 07/31/03 834,600
-------------
Total Textiles and Apparel 3,105,700
-------------
TRANSPORTATION (1.7%)
810,000 International Shipholding Corp., 9%, due 07/01/03 765,450
680,000 Moran Transportation Company, 11.75%, due 07/15/04 659,600
230,000 US Air, Inc., 9.625%, due 09/01/03 210,450
101,806 US Air, Inc., Equipment Trust Certificate 90-A,
11.2%, due 03/19/05 89,589
-------------
Total Transportation 1,725,089
-------------
OTHER CONSUMER CYCLICALS (1.0%)
1,050,000 Sealy Corp., 9.5%, due 05/01/03 1,036,875
-------------
TOTAL CONSUMER CYCLICALS (Cost: $34,606,404) 33,140,559
-------------
</TABLE>
See accompanying Notes to Financial Statements.
11
<PAGE>
TCW GALILEO HIGH YIELD BOND FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
- - -----------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount CORPORATE FIXED INCOME SECURITIES Value
- - ----------------- --------------------------------- -------------
<C> <S> <C>
BASIC MATERIALS (17.7%)
Chemicals (2.9%)
$ 1,275,000 NL Industries, Inc., 11.75%, due 10/15/03 $ 1,356,281
1,300,000 Sherritt Gordon Limited, 9.75%, due 04/01/03 1,300,000
330,000 UCC Investors, 10.5%, due 05/01/02 337,838
-------------
Total Chemicals 2,994,119
-------------
Energy (5.0%)
325,000 Dual Drilling Company, 9.875%, due 01/15/04 279,500
815,000 Energy Ventures, Inc., 10.25%, due 03/15/04 817,038
970,000 Flores & Rucks, 13.5%, due 12/04/04 1,037,900
865,000 Giant Industries, Inc., 9.75%, due 11/15/03 808,775
1,270,000 Maxus Energy Corp., 9.875%, due 10/15/02 1,182,687
1,015,000 Transamerican Refining Corp., 0/18%, Step-up, due 02/15/02 621,688
460,000 Tuboscope Corp., 10.75%, due 04/15/03 463,450
-------------
Total Energy 5,211,038
-------------
Forest Products and Paper (6.0%)
740,000 Container Corporation of America, 9.75%, due 04/01/03 733,525
350,000 Container Corporation of America, 10.75%, due 05/01/02 364,437
680,000 Fort Howard Corp., 9.25%, due 03/15/01 673,200
900,000 Malette, Inc., 12.25%, due 07/115/04 949,500
865,000 Rainy River Forest Products, Inc., 10.75%, due 10/15/01 892,030
995,000 Repap Wisconsin, Inc., 9.25%, due 02/01/02 963,906
790,000 Stone-Consolidated Corp., 10.25%, due 12/15/00 804,813
800,000 Stone Container Corp., 10.75%, due 10/01/02 843,000
-------------
Total Forest Products and Paper 6,224,411
-------------
Metals and Mining (3.8%)
850,000 Carbide Graphite Group, 11.5%, due 09/01/03 896,750
990,000 Northwestern Steel and Wire Company, 9.5%, due 06/15/01 902,138
1,235,000 Republic Steel Company, 9.875%, due 12/15/01 1,151,637
1,050,000 Weirton Steel Corp., 10.875%, due 10/15/99 1,057,875
-------------
Total Metals and Mining 4,008,400
-------------
TOTAL BASIC MATERIALS (Cost: $18,216,021) 18,437,968
-------------
</TABLE>
See accompanying Notes to Financial Statements.
12
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1995
<TABLE>
<CAPTION>
Principal
Amount CORPORATE FIXED INCOME SECURITIES Value
- - ----------------- --------------------------------- -------------
<C> <S> <C>
INDUSTRIAL (21.1%)
BUSINESS SERVICES AND DISTRIBUTORS (7.2%)
$ 1,320,000 Big Flower Press, Inc., 10.75%, due 08/01/03 $ 1,280,400
1,055,000 Earle M. Jorgensen Company, 10.75%, due 03/01/00 1,033,900
900,000 Envirosource, Inc., 9.75%, due 06/15/03 803,250
1,200,000 Envirotest Systems, Inc., 9.125%, due 03/15/01 966,000
1,165,000 Fleming Companies, Inc., 10.625%, due 12/15/01 1,195,580
1,265,000 Mid-America Waste Systems, Inc., 12.25%, due 02/15/03 1,290,300
1,050,000 Webcraft Technologies, Inc., 9.375%, due 02/15/02 929,250
-------------
Total Business Services and Distributors 7,498,680
-------------
CAPITAL GOODS (0.4%)
239,000 Terex Corp., (Private Placement), 13%, due 08/01/96 244,497*
215,000 Terex Corp., (144A), Units, 13.75%, due 05/15/02 215,000*
-------------
Total Capital Goods 459,497
-------------
COMMUNICATION SERVICES (5.1%)
755,000 MFS Communications, Inc., 0/9.375%, Step-up, due 01/15/04 500,188
1,115,000 Mobile Telecommunications, 13.5%, due 12/15/02 1,195,837
1,185,000 Nextel Communications, Inc., 0/9.75%, Step-up, due 08/15/04 586,575
415,000 Paging Network, Inc., 11.75%, due 05/15/02 437,825
780,000 Pan Am Sat, L.P., 9.75%, due 08/01/00 789,750
830,000 Rogers Cantel Mobile, Inc., 10.75%, due 11/01/01 861,125
940,000 Telex Communications, Inc., 12%, due 07/15/04 949,400
-------------
Total Communication Services 5,320,700
-------------
CONTAINERS AND PACKAGING (1.9%)
830,000 Plastic Containers, Inc., 10.75%, due 04/01/01 842,450
1,110,000 Sweetheart Cup Company, Inc., 9.625%, due 09/01/00 1,110,000
-------------
Total Containers and Packaging 1,952,450
-------------
MISCELLANEOUS MANUFACTURING (6.5%)
1,200,000 BE Aerospace, Inc., 9.75%, due 03/01/03 1,186,500
1,156,000 Foamex, L.P., 9.5%, due 06/01/00 1,144,440
620,000 MVE, Inc., Units, 12.25%, due 02/15/02 647,900
695,000 NEWFLO Corp., 13.25%, due 11/15/02 681,100
1,115,000 PMI Acquisition Corp., 10.25%, due 09/01/03 1,123,363
955,000 Talley Manufacturing, 10.75%, due 10/15/03 931,125
1,100,000 Waters Corp., Series B, 12.75%, due 09/30/04 1,111,000
-------------
Total Miscellaneous Manufacturing 6,825,428
-------------
TOTAL INDUSTRIAL (Cost: $22,020,647) 22,056,755
-------------
</TABLE>
* Restricted security. (See Note 6)
See accompanying Notes to Financial Statements.
13
<PAGE>
TCW GALILEO HIGH YIELD BOND FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
Principal
Amount CORPORATE FIXED INCOME SECURITIES Value
- - ----------------- --------------------------------- -------------
<C> <S> <C>
CREDIT SENSITIVE (4.9%)
FINANCIAL SERVICES-INSTITUTIONS (3.9%)
$ 560,000 American Annuity Group, Inc., 11.125%, due 02/01/03 $ 578,200
1,150,000 Bankers Life Holding Corp., 13%, due 11/01/02 1,328,250
1,250,000 CDV Acquisition, 9.75%, due 02/15/03 1,237,500
350,000 Great American Holding Corp., 11%, due 08/15/98 350,875
630,000 Reliance Group Holdings, Inc., 9%, due 11/15/00 601,650
-------------
Total Financial Services-Institutions 4,096,475
-------------
UTILITIES (1.0%)
137,433 Midland Cogeneration Ventures, 10.33%, due 07/23/02 138,120
612,637 Midland Cogeneration, 10.33%, due 07/23/02 615,701
290,000 Texas-New Mexico Power Company, 10.75%, due 09/15/03 300,150
-------------
Total Utilities 1,053,971
-------------
TOTAL CREDIT SENSITIVE (Cost: $5,151,106) 5,150,446
-------------
MULTI-INDUSTRY (2.4%)
540,000 Bell & Howell Group, Inc., 9.25%, due 07/15/00 540,000
660,000 Bell & Howell Group, Inc., 10.75%, due 10/01/02 693,000
670,000 Sequa Corp., 8.75%, due 12/15/01 631,475
730,000 Valcor, Inc., 9.625%, due 11/01/03 664,300
-------------
TOTAL MULTI-INDUSTRY (Cost: $2,605,332) 2,528,775
-------------
TOTAL CORPORATE FIXED INCOME SECURITIES
(COST $94,502,591)(89.2%) 93,052,572
-------------
U.S. TREASURY SECURITIES
------------------------
58,000 U.S. Treasury Security Stripped, due 08/15/95 57,030
94,000 U.S. Treasury Security Stripped, due 08/15/95 92,382
58,000 U.S. Treasury Security Stripped, due 02/15/96 55,247
94,000 U.S. Treasury Security Stripped, due 02/15/96 89,507
152,000 U.S. Treasury Security Stripped, due 08/15/96 140,408
152,000 U.S. Treasury Security Stripped, due 02/15/97 135,543
58,000 U.S. Treasury Security Stripped, due 08/15/97 49,945
94,000 U.S. Treasury Security Stripped, due 08/15/97 80,861
152,000 U.S. Treasury Security Stripped, due 02/15/98 126,327
58,000 U.S. Treasury Security Stripped, due 08/15/98 46,535
58,000 U.S. Treasury Security Stripped, due 02/15/99 44,940
-------------
TOTAL U.S. TREASURY SEURITIES
(COST $977,463)(0.9%) 918,725
-------------
</TABLE>
See accompanying Notes to Financial Statements.
14
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1995
<TABLE>
<CAPTION>
Number of
Shares, Rights
or Warrants EQUITY SECURITIES Value
- - ----------------- ----------------- -------------
<C> <S> <C>
21,420 Edisto Resources Corp., (Restricted Security),
Common Stock $ 157,973* **
300 Haynes International Corp., (Private Placement),
Common Stock 300* **
100 PST Holdings, Inc., Common Stock 100**
3,654 Salant Corp., Common Stock 12,789**
555 Terex Corp., Stock Appreciation Rights,
(Private Plavement), expire 07/31/96 277* **
429 Terex Corp., Stock Appreciation Rights, expire 07/01/97 107**
17,346 Transamerican Refining Corp., Warrants, expire 02/15/02 52,038**
-------------
TOTAL EQUITY SECURITIES (COST: $258,193)(0.2%) 223,584
-------------
Principal
Amount TOTAL SHORT-TERM INVESTMENTS (COST: $8,684,207)(8.3%)
- - ---------------- -----------------------------------------------------
$ 8,684,207 Bank of New York Depositary Reserve, 4.25%, due 05/01/95 8,684,207
-------------
TOTAL INVESTMENTS (COST: $104,422,454)(98.6%) 102,879,088
EXCESS OF OTHER ASSETS OVER LIABILITIES (1.4%) 1,447,049
-------------
NET ASSETS (100%) $ 104,326,137
=============
</TABLE>
* Restricted security. (See Note 6)
** Non-income producing.
See accompanying Notes to Financial Statements.
15
<PAGE>
TCW Galileo Mortgage Backed Securities Fund
SCHEDULE OF INVESTMENTS (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount FIXED INCOME SECURITIES Value
- - ----------------- ----------------------- -------------
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS -
FIXED RATE (37.6% OF Net Assets)
$ 2,758 CMO Mortgage Investors Trust (5-J), 1225.2%,
due 12/22/20, (I/O) $ 66,611
3,963 CMO Mortgage Investors Trust (6-J), 1752.4%,
due 02/22/21, (I/O) 135,591
3,615,750 Federal Home Loan Mortgage Corp. (1238-E), 6.5%,
due 02/15/04, (PAC) 3,601,360
4,763,680 Federal Home Loan Mortgage Corp. (1298-E), 7%,
due 06/15/04, (PAC) 4,749,436
473,208 Federal Home Loan Mortgage Corp. (1180-C), 7.5%,
due 05/15/19 472,806
17,721 Federal Home Loan Mortgage Corp. (1228-I), 7.75%,
due 06/15/21 17,856
1,678,887 Federal Home Loan Mortgage Corp. (1087-G), 8.5%,
due 08/15/20, (PAC) 1,704,255
403,223 Federal Home Loan Mortgage Corp. (109-G), 9.1%,
due 07/15/18, (PAC) 402,469
2,000,000 Federal National Mortgage Association (93-201-BA),
4.625%, due 05/25/08, (PAC) 1,954,720
750,000 Federal National Mortgage Association (92-152-K),
7%, due 04/25/99 745,635
6,100,000 Federal National Mortgage Association (91-103-HB),
8.75%, due 09/25/20, (PAC) 6,206,689
9,000,000 Federal National Mortgage Association (91-83-G),
8.8%, due 11/25/19, (PAC) 9,155,070
1,997,047 Prudential Home Mortgage Securities (92-36-A2),
6.5%, due 11/25/99, (PAC) 1,983,567
3,024,277 Ryland Acceptance Corporation Four (63-D), 8.75%,
due 04/01/19 3,054,369
144,004 Ryland Acceptance Corporation Four (61-A), 8.9%,
due 12/01/08 144,124
1,628,283 Sears Mortgage Securities (88-A-A2), 0.655%,
due 05/25/18, (I/O) 16,283
-------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS -
FIXED RATE (Cost: $36,138,089) 34,410,841
-------------
</TABLE>
I/O - Interest Only security.
PAC - Planned Amortization Class.
See accompanying Notes to Financial Statements.
16
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1995
<TABLE>
<CAPTION>
Principal
Amount FIXED INCOME SECURITIES Value
- - ----------------- ----------------------- -------------
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS -
VARIABLE RATE (28.0%)
$ 129,279 Columbia Savings and Loan (88-1-A), 5.761%, due 08/25/18 $ 127,663
3,260,472 Federal Home Loan Mortgage Corp. (1573-GC),
9.5164%, due 01/15/23, (I/F) 1,879,140
4,710,774 Federal National Mortgage Association (93-179-ST),
7.7219%, due 10/25/21, (I/F) 2,873,148
74,097 First Nationwide Trust (88-2-A2), 3.5194%, due 12/26/28 72,523
187,947 Guardian Savings and Loan Association (88-1-A), 5.8341%,
due 07/25/18 165,394
397,780 Guardian Savings and Loan Association (88-3-A), 6.3631%,
due 11/25/18 350,046
459,566 Guardian Savings and Loan Association (89-3-A), 7.57%,
due 05/25/19 386,036
2,238,533 Guardian Savings and Loan Association (89-4-A), 7.7233%,
due 07/25/19 2,160,185
2,230,636 Guardian Savings and Loan Association (89-5-A), 7.9926%,
due 07/25/19 2,152,563
114,689 Merrill Lynch Trust (26-B), 6.95%, due 07/01/16 115,273
401,514 Residential Funding Mortgage Securities I (89-4B-B),
5.9624%, due 07/25/19 391,476
8,652,215 Resolution Trust Corp. (92-M4-A3), 6.66%, due 09/25/21 8,457,541
5,387,792 Resolution Trust Corp. (92-1-A2), 7.5094%, due 08/25/20 5,306,975
4,076 Resolution Trust Corp. (91-6-D2), 3,148.6%,
due 08/25/20, (I/O) 118,951
7,575 Resolution Trust Corp. (91-6-C2), 3,373.6%,
due 09/25/28, (I/O) 298,924
407,387 Sears Mortgage Securities (90-E-E), 21.019%,
due 10/25/20, (I/F) 403,313
744 Sears Mortgage Securities (90-E-F), 6,474.8%,
due 10/25/20, (I/O) 74,029
373,288 Western Federal Savings and Loan Association (88-9-A),
5.9226%, due 12/25/18 363,956
-------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS -
VARIABLE RATE (Cost: $31,136,976) 25,697,136
-------------
NON-AGENCY VARIABLE RATE
PASS-THROUGH SECURITIES (1.9%)
1,613,006 Greenwich Capital Acceptance, Inc. (91-03),
(Private Placement), 7.954%, due 08/25/19 1,588,811*
148,058 National Bank of Washington (88-A-A), (Private Placement),
7.7249%, due 01/25/19 149,539*
-------------
TOTAL NON-AGENCY VARIABLE RATE
PASS- THROUGH SECURITIES (Cost: $1,749,743) 1,738,350
-------------
</TABLE>
* Restricted security. (See Note 6)
I/F - Inverse floating rate security whose interest rate moves in the opposite
direction of prevailing interest rates.
I/O - Interest Only security.
See accompanying Notes to Financial Statements.
17
<PAGE>
TCW GALILEO MORTGAGE BACKED SECURITIES FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
- - -----------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount FIXED INCOME SECURITIES Value
- - ----------------- ----------------------- -------------
<C> <S> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -
FIXED RATE PASS-THROUGH SECURITIES (10.6%)
$ 3,381,102 Federal Home Loan Mortgage Corp., Gold Pool #M19086,
7%, due 02/01/98 $ 3,369,471
1,561,102 Federal Home Loan Mortgage Corp., Gold Pool #M19147,
8.5%, due 12/01/96 1,592,324
2,479,394 Federal Home Loan Mortgage Corp., Pool #730334,
9%, due 11/01/06 2,539,817
599,438 Federal Home Loan Mortgage Corp., Gold Pool #M11777,
9%, due 11/01/96 612,926
224,158 Federal Home Loan Mortgage Corp., Pool #212346,
9.5%, due 08/01/01 232,844
293,123 Federal Home Loan Mortgage Corp., Pool #730158,
9.5%, due 10/01/05 300,999
1,055,316 Federal National Mortgage Association, Pool #163492,
8.5%, due 05/01/16 1,066,534
-------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS -
FIXED RATE PASS-THROUGH SECURITIES (Cost: $10,017,934) 9,714,915
-------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -
VARIABLE RATE PASS-THROUGH SECURITIES (15.1%)
87,562 Federal Home Loan Mortgage Corp., Pool #770584, 6.125%,
due 05/01/19 87,125
223,537 Federal Home Loan Mortgage Corp., Pool #405877, 7.311%,
due 12/01/20 229,930
188,111 Federal Home Loan Mortgage Corp., Pool #865006, 7.824%,
due 08/01/18 189,700
251,473 Federal Home Loan Mortgage Corp., Pool #865009, 8.072%,
due 11/01/18 254,740
294,111 Federal Home Loan Mortgage Corp., Pool #865270, 8.094%,
due 12/01/18 300,025
305,945 Federal Home Loan Mortgage Corp., Pool #865275, 8.531%,
due 02/01/19 312,783
783,154 Federal Home Loan Mortgage Corp., Pool #310005, 10.185%,
due 11/01/19 798,817
5,850,665 Federal Home Loan Mortgage Corp., Pool #407166, 7.146%,
due 09/01/22 6,001,788
4,735,027 Federal National Mortgage Association, Pool #303063, 6.891%,
due 09/01/24 4,877,599
554,494 Federal National Mortgage Association, Pool #111365, 7.248%,
due 09/01/19 548,949
195,583 Federal National Mortgage Association, Pool #96193, 7.742%,
due 09/01/18 196,702
-------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS -
VARIABLE RATE PASS-THROUGH SECURITIES (Cost: $13,711,029) 13,798,158
-------------
TOTAL FIXED INCOME SECURITIES (COST: $92,753,771) (93.2%) 85,359,400
-------------
</TABLE>
See accompanying Notes to Financial Statements.
18
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1995
<TABLE>
<CAPTION>
Principal
Amount SHORT-TERM INVESTMENTS (6.1%) Value
- - ----------------- ----------------------------- -------------
<C> <S> <C>
$ 1,545,235 Bank of New York Depositary Reserve, 5.25%, due 05/01/95 $ 1,545,235
4,000,000 Repurchase Agreement, Prudential Bache, dated 4/28/95, 5.8%,
due 05/01/95. (Collateralized by $3,225,000 current face
Federal Home Loan Mortgage Corp. (1617-DA), 7.325%,
due 11/15/23, valued at $3,115,148; and by $1,097,000 current
face Federal National Mortgage Association (92-84-L), 7.5%,
due 5/25/22, valued at $1,014,725) 4,000,000
-------------
TOTAL SHORT-TERM INVESTMENTS (COST: $5,545,235) 5,545,235
-------------
TOTAL INVESTMENTS (COST: $98,299,006) (99.3%) 90,904,635
EXCESS OF OTHER ASSETS OVER LIABILITIES (0.7%) 723,637
-------------
NET ASSETS (100%) $ 91,628,272
=============
</TABLE>
See accompanying Notes to Financial Statements.
19
<PAGE>
TCW GALILEO LONG-TERM MORTGAGE BACKED SECURITIES FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
- - -----------------------------------
<TABLE>
<CAPTION>
Principal
Amount FIXED INCOME SECURITIES Value
- - ----------------- ----------------------- -------------
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS -
FIXED RATE (42.8% OF NET ASSETS)
$ 2,000,000 CMC Securities Corporation III (94-A-A12), 6.75%, due 02/25/24 (PAC) $ 1,778,700
303,258 Federal Home Loan Mortgage Corp. (1484-K), 6%, due 01/15/98 299,658
1,875,170 Federal Home Loan Mortgage Corp. (1688-M), 6%, due 08/15/13 1,650,075
2,000,000 Federal Home Loan Mortgage Corp. (1665-M), 6.5%, due 01/15/24 1,779,720
3,144,107 Federal Home Loan Mortgage Corp. (1717-MA), 6.5%, due 4/15/24 2,743,893
2,263,003 Federal Home Loan Mortgage Corp. - Government National Mortgage
Association (16-K), 6.5%, due 01/25/23 2,009,071
3,721,729 Federal Home Loan Mortgage Corp. - Government National Mortgage
Association (43-OA), 6.5%, due 07/17/23 3,498,276
3,038,000 Federal National Mortgage Association (92-194-D), 5.75%,
due 09/25/13, (PAC) 2,994,739
2,000,000 Federal National Mortgage Association (93-X-130A-NA), 6.5%,
due 05/25/23 1,733,580
1,894,734 Federal National Mortgage Association (93-223-EA), 6.5%,
due 12/25/23, (PAC) 1,662,894
1,423,329 Federal National Mortgage Association (93-114-K), 6.5%,
due 07/25/08, (PAC) 1,333,873
1,911,450 Federal National Mortgage Association (94-27-DA), 6.5%,
due 11/25/23, (PAC) 1,648,205
500,000 Federal National Mortgage Association (93-2-B), 7.2%, due 11/25/03 491,870
2,306,359 GE Capital Mortgage Services, Inc. (91-3-G), 9.5%, due 05/25/21 2,382,653
3,665,791 Ryland Acceptance Corporation Four (63-D), 8.75%, due 04/01/19 3,702,265
-------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS -
FIXED RATE (Cost: $29,758,822) 29,709,472
-------------
COLLATERALIZED MORTGAGE OBLIGATIONS -
VARIABLE RATE (9.1%)
1,500,000 CMC Securities Corporation III (94-A-A22), 7.1588%, due 02/25/24, (I/F) 750,000
1,820,539 Federal Home Loan Mortgage Corp. (1646-MC), 7.1266%,
due 10/15/22, (I/F) (PAC) 1,065,106
1,518,252 Federal National Mortgage Association (93-247-SL), 0.9694%,
due 03/25/23, (I/F) 691,503
2,000,000 Federal National Mortgage Association (93-X-225C-VS), 6.5656%,
due 12/25/23, (I/F) 858,420
1,000,000 Federal National Mortgage Association (93-202-SZ), 10%,
due 11/25/23, (I/F) (PAC) 636,440
1,952,082 Federal National Mortgage Association (93-110-SE), 10.432%,
due 05/25/23, (I/F) 1,638,538
975,414 Prudential Home Mortgage Securities (93-47-A8), 10.063%,
due 12/25/23, (I/F) 692,671
1,440 TMAC Mortgage Securities Corp. (3-A), 6.85%, due 04/20/13 1,443
-------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS -
VARIABLE RATE (Cost: $8,502,480) 6,334,121
-------------
</TABLE>
I/F - Inverse floating rate security whose interest rate moves in the opposite
direction of prevailing interest rates.
PAC - Planned Amortization Class.
See accompanying Notes to Financial Statements.
20
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1995
<TABLE>
<CAPTION>
Principal
Amount FIXED INCOME SECURITIES Value
- - ----------------- ----------------------- -------------
<C> <S> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -
FIXED RATE PASS-THROUGH SECURITIES (26.2%)
$ 3,255,797 FHA (#012-11218), 7.125%, due 04/01/29 $ 3,054,361
1,846,348 FHA (#000-13002), 7.125%, due 03/01/04 1,730,471
2,917,920 FHA (#012-11216), 7.185%, due 03/01/29 2,741,036
1,963,501 FHA 223 A7 (#044-10592), 7.625%, due 09/01/22 1,904,596
1,388,000 FHA 223 F (#081-11017), 7.75%, due 04/01/24 1,338,990
2,578,956 FHA 232 (#112-43055), 9.25%, due 05/25/32 2,649,077
46,220 Federal Home Loan Mortgage Corp., Pool #250685, 6.5%, due 10/01/99 43,086
1,902,934 Federal National Mortgage Association, Pool #190564, 5.5%, due 01/01/09 1,732,869
28,963 Federal National Mortgage Association, Pool #62420, 7.5%, due 03/01/06 28,655
32,956 Federal National Mortgage Association, Pool #29542, 8.75%, due 07/01/09 33,734
1,433,342 Government National Mortgage Association, Pool #365618, 7%,
due 10/15/33 1,325,841
1,583,381 Government National Mortgage Association, Pool #351003, 7.5%,
due 07/15/28 1,510,150
70,367 Government National Mortgage Association, Pool #3933, 8.25%,
due 07/15/04 71,038
22,241 Government National Mortgage Association, Pool #176192, 8.25%,
due 12/15/01 22,227
47,524 Government National Mortgage Association, Pool #217350, 9.25%,
due 08/15/00 49,054
-------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS -
FIXED RATE PASS-THROUGH SECURITIES (Cost: $19,182,310) 18,235,185
-------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - VARIABLE
RATE PASS-THROUGH SECURITIES (9.0%)
2,782,778 Federal Home Loan Mortgage Corp., Pool #846089, 6.657%, due 09/01/24 2,824,520
3,414,428 Federal National Mortgage Association, Pool #293181, 5.268%, due 10/01/24 3,441,777
-------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS -
VARIABLE RATE PASS-THROUGH SECURITIES (Cost: $6,267,415) 6,266,297
-------------
TOTAL FIXED INCOME SECURITIES (COST: $63,711,027) (87.1%) 60,545,075
-------------
SHORT-TERM INVESTMENTS (12.3%)
------------------------------
1,558,727 Bank of New York Depositary Reserve, 5.25%, due 05/01/95 1,558,727
7,000,000 Repurchase Agreement, Prudential Bache, dated 4/28/95, 5.8%,
due 05/01/95. (Collateralized by $8,101,851 current face Federal
National Mortgage Association (94-6-F), 8.09%, due 10/25/23,
valued at $8,101,851) 7,000,000
-------------
TOTAL SHORT-TERM INVESTMENTS (Cost: $8,558,727) 8,558,727
-------------
TOTAL INVESTMENTS (COST: $72,269,754) (99.4%) 69,103,802
EXCESS OF OTHER ASSETS OVER LIABILITIES (0.6%) 411,020
-------------
NET ASSETS (100%) $ 69,514,822
=============
</TABLE>
See accompanying Notes to Financial Statements.
21
<PAGE>
TCW GALILEO CORE EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
- - -----------------------------------
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- - ----------------- ----------------- -------------
<C> <S> <C>
CONSUMER STAPLES (18.2% OF NET ASSETS)
COSMETICS - HOUSEHOLD PRODUCTS (2.9%)
65,400 Procter & Gamble Co. $ 4,569,825
-------------
LEISURE, ENTERTAINMENT, PHOTO AND MEDIA (6.5%)
100,000 Electronic Arts, Inc. 2,300,000**
152,900 News Corp. Ltd., ADR (Australia) 2,981,550
107,466 Viacom, Inc. Class B 4,930,003**
-------------
Total Leisure, Entertainment, Photo and Media 10,211,553
-------------
HEALTHCARE (7.0%)
47,000 Amgen, Inc. 3,416,312**
112,700 Columbia/HCA Healthcare Corp. 4,733,400
144,200 Humana, Inc. 2,811,900**
-------------
Total Healthcare 10,961,612
-------------
RETAIL (1.8%)
67,966 Home Depot, Inc. 2,837,580
-------------
TOTAL CONSUMER STAPLES (Cost: $26,161,310) 28,580,570
-------------
CONSUMER CYCLICALS (7.4%)
AUTOS AND AUTO PARTS (6.1%)
98,300 Chrysler Corp. 4,239,187
34,800 Ford Motor Company, $4.20 Depositary Convertible Preferred
Series A 3,066,750
67,500 Magna International, Inc. 2,337,188
-------------
Total Autos and Auto Parts 9,643,125
-------------
APPLIANCE AND HOME FURNISHINGS (1.3%)
37,100 Whirlpool Corp. 2,031,225
-------------
TOTAL CONSUMER CYCLICALS (Cost: $13,588,438) 11,674,350
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
22
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1995
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- - ----------------- ----------------- -------------
<C> <S> <C>
CAPITAL GOODS (50.5%)
AEROSPACE AND CONGLOMERATES (8.3%)
91,400 Boeing Company $ 5,027,000
78,000 General Motors Corp., Class H 3,051,750
67,200 United Technologies Corp. 4,914,000
--------------
Total Aerospace and Conglomerates 12,992,750
--------------
ELECTRONICS - SEMICONDUCTORS AND INSTRUMENTS (8.5%)
76,600 Intel Corp. 7,841,925
238,000 National Semiconductor Corp. 5,444,250**
--------------
Total Electronics - Semiconductors and Instruments 13,286,175
--------------
ELECTRICAL INSTRUMENTS AND TELECOMMUNICATION EQUIPMENT (5.6%)
113,500 Motorola, Inc. 6,455,312
61,900 Northern Telecom, Ltd. 2,251,613
--------------
Total Electrical Instruments and
Telecommunication Equipment 8,706,925
--------------
INFORMATION PROCESSING (25.3%)
114,900 Computer Sciences Corp. 5,673,188**
55,600 First Data Corp. 3,127,500
110,200 General Motors Corp., Class E 4,766,150
105,000 Hewlett-Packard Company 6,943,125
43,300 International Business Machines Corp. 4,102,675
42,500 Microsoft Corp. 3,474,375**
118,600 Storage Technology Corp. 2,460,950**
235,900 Unisys Corp. 2,417,975**
54,900 Xerox Corp. 6,759,562
--------------
Total Information Processing 39,725,500
--------------
MACHINERY AND INFRASTRUCTURE (2.8%)
66,100 Caterpillar, Inc. 3,866,850
21,400 Detroit Diesel Corp. 497,550**
--------------
Total Machinery and Infrastructure 4,364,400
--------------
TOTAL CAPITAL GOODS (Cost: $62,956,475) 79,075,750
--------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
23
<PAGE>
TCW GALILEO CORE EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED)
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- - ----------------- ----------------- --------------
<C> <S> <C>
BASIC INDUSTRIES (15.9%)
CHEMICALS (1.0%)
40,400 Raychem Corp. $ 1,439,250
--------------
ENERGY AND OIL SERVICES (1.9%)
104,700 Unocal Corp. 3,010,125
--------------
TRANSPORTATION (13.0%)
59,000 AMR Corp. 3,975,125**
47,600 Delta Airlines, Inc. 3,111,850
68,700 Federal Express Corp. 4,671,600**
68,500 Northwest Airlines Corp. 2,037,875**
211,359 Santa Fe Pacific Corp. 4,940,517
13,900 UAL Corp. 1,668,000**
--------------
Total Transportation 20,404,967
--------------
TOTAL BASIC INDUSTRIES (Cost: $22,337,985) 24,854,342
--------------
CREDIT SENSITIVE (7.8%)
BANKS, FINANCIAL SERVICES AND BUILDING
152,590 Bear Stearns Companies, Inc. 3,147,169
101,100 Citicorp 4,688,513
38,700 Green Tree Financial Corp. 1,581,862
61,100 Merrill Lynch & Co., Inc. 2,780,050
--------------
TOTAL CREDIT SENSITIVE (Cost: $11,019,974) 12,197,594
--------------
TOTAL EQUITY SECURITIES (COST: $136,064,182) (99.8%) 156,382,606
--------------
Principal
Amount TOTAL SHORT-TERM INVESTMENTS (COST: $86,601) (0.1%)
- - ------------------ ---------------------------------------------------
$ 86,601 Bank of New York Depositary Reserve, 5.25%, due 05/01/95 86,601
--------------
TOTAL INVESTMENTS (COST: $136,150,783) (99.9%) 156,469,207
EXCESS OF OTHER ASSETS OVER
LIABILITIES (0.1%) 102,067
--------------
NET ASSETS (100.0%) $ 156,571,274
==============
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
24
<PAGE>
TCW GALILEO FUNDS, INC.
TCW GALILEO EARNINGS MOMENTUM FUND
April 30, 1995
SCHEDULE OF INVESTMENTS (Unaudited)
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- - ----------------- ----------------- -------------
<C> <S> <C>
CONSUMER STAPLES (32.6% OF NET ASSETS)
BEVERAGES, TOBACCO AND DISTRIBUTION (2.4%)
27,500 Canandaigua Wine Company, Inc. (Class A) $ 1,182,500**
-------------
COSMETICS AND HOUSEHOLD PRODUCTS (1.0%)
27,400 DSG International, Ltd. 506,900
-------------
DRUGS AND HOSPITAL SUPPLY (6.4%)
7,300 Amsco International, Inc. 92,163**
18,800 Biochem Pharma, Inc. 300,800**
15,700 Dura-Pharmaceuticals, Inc. 240,406**
46,600 Ethical Holdings PLC (ADR) 285,425**
16,400 I-Stat Corp. 383,350**
37,600 Matrix Pharmaceuticals, Inc. 554,600**
37,200 Noven Pharmaceuticals, Inc. 316,200**
50,300 Pyxis Corp. 999,713**
-------------
Total Drugs and Hospital Supply 3,172,657
-------------
FOODS, HOTELS AND RESTAURANTS (2.0%)
14,300 Landry's Seafood Restaurants, Inc. 495,138**
41,800 Whole Foods Market, Inc. 496,375**
-------------
Total Foods, Hotels and Restaurants 991,513
-------------
HEALTHCARE (9.1%)
30,300 A.L. Pharma, Inc. (Class A) 723,413
31,300 Health Care & Retirement Corp. 888,138**
12,800 Homedco Group, Inc. 732,800**
9,700 Integrated Health Services, Inc. 335,863
5,000 MedPartners, Inc. 118,125**
12,000 Oncor, Inc. 52,500**
50,000 Perrigo Company 556,250**
6,000 Summit Care Corp. 123,000**
25,600 Sun Healthcare Group, Inc. 617,600**
13,700 Vencor, Inc. 424,700**
-------------
Total Healthcare 4,572,389
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
25
<PAGE>
TCW GALILEO EARNINGS MOMENTUM FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- - ----------------- ----------------- -------------
<C> <S> <C>
LEISURE, ENTERTAINMENT, PHOTO AND MEDIA (3.2%)
28,200 Heritage Media Corp. $ 722,625**
9,200 Hollywood Entertainment Corp. 331,200**
30,200 Valassis Communications, Inc. 528,500**
-------------
Total Leisure, Entertainment, Photo and Media 1,582,325
-------------
RETAIL (6.9%)
15,200 AnnTaylor Stores, Inc. 381,900**
20,000 Bed, Bath & Beyond, Inc. 417,500**
21,000 Corporate Express, Inc. 593,250**
15,000 Gymboree Corp. 352,500**
19,600 Lechters, Inc. 298,900**
17,000 Officemax, Inc. 435,625**
16,650 Staples, Inc. 401,681**
33,500 Warnaco Group, Inc. 573,688**
-------------
Total Retail 3,455,044
-------------
RETAIL - FOOD AND DRUG (0.9%)
11,600 AmeriSource Health Corp. (Class A) 256,650**
21,900 Liposome Company, Inc. 197,100**
-------------
Total Retail - Food and Drug 453,750
-------------
SERVICES - BUSINESS (0.7%)
12,500 Stewart Enterprises, Inc. (Class A) 343,750
-------------
TOTAL CONSUMER STAPLES (Cost: $15,677,832) 16,260,828
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
26
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1995
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- - ----------------- ----------------- -------------
<C> <S> <C>
CONSUMER CYCLICALS (1.6%)
AUTOMOTIVE AND AUTOMOTIVE PARTS
25,100 ABS Industries, Inc. $ 307,475
20,400 Titan Wheel International, Inc. 471,750
-------------
TOTAL CONSUMER CYCLICALS (Cost: $652,797) 779,225
-------------
CAPITAL GOODS (40.3%)
COMPUTER SOFTWARE AND SERVICES (8.7%)
47,700 American Management Systems, Inc. 1,007,663**
6,000 CBT Group PLC (ADR) 159,000**
19,400 Cadence Design Systems, Inc. 620,800**
14,900 Filenet Corp. 499,150**
17,000 Fiserv, Inc. 450,500**
7,700 Medic Computer Systems, Inc. 338,800**
3,400 Oak Technology, Inc. 93,925**
9,100 Open Environment Corp. 159,250**
10,800 Progress Software Corp. 437,400**
2,000 Remedy Corp. 75,500**
11,300 Zebra Technologies Corp. 518,388**
-------------
Total Computer Software and Services 4,360,376
-------------
ELECTRICAL EQUIPMENT (5.3%)
23,700 AFC Cable Systems, Inc. 396,975**
27,300 Brooktree Corp. 447,038**
50,200 First Alert, Inc. 621,225**
8,100 Kemet Corp. 317,925**
59,000 Magnetek, Inc. 877,625**
-------------
Total Electrical Equipment 2,660,788
-------------
ELECTRONICS - COMMUNICATION EQUIPMENT (4.1%)
28,100 Cidco, Inc. 1,011,600**
15,700 Digital Link Corp. 431,750**
14,200 NumereX Corp. (Class A) 213,000**
14,500 Plantronics, Inc. 395,125**
-------------
Total Electronics - Communication Equipment 2,051,475
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
27
<PAGE>
TCW GALILEO EARNINGS MOMENTUM FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- - ----------------- ----------------- -------------
<C> <S> <C>
ELECTRONICS - SEMICONDUCTORS (9.3%)
26,600 ASM Lithography Holding NV $ 728,175**
24,000 Cypress Semiconductor Corp. 726,000**
51,900 Digital Biometrics, Inc. 493,050**
31,500 Electro Scientific Industries, Inc. 838,688**
19,000 Exar Corp. 501,125**
45,000 Methode Electronics, Inc. (Class A) 776,250
2,600 SDL, Inc. 66,300**
8,900 Ultratech Stepper, Inc. 498,400**
-------------
Total Electronics - Semiconductors 4,627,988
-------------
INFORMATION PROCESSING (7.3%)
22,100 Cadmus Communications Corp. 401,944
30,300 Convex Computer Corp. 124,988**
10,100 EPIC Design Technology, Inc. 267,650**
30,000 Frame Technology Corp. 630,000**
10,300 Intersolv, Inc. 141,625**
13,700 Norand Corp. 417,850**
30,000 Quickresponse Services, Inc. 558,750**
46,700 Symantec Corp. 1,085,775**
-------------
Total Information Processing 3,628,582
-------------
MACHINERY AND INFRASTRUCTURE (0.8%)
30,000 Indresco, Inc. 420,000**
-------------
OFFICE EQUIPMENT AND BUILDING SUPPLIES (0.4%)
18,000 Cameron Ashley, Inc. 202,500**
-------------
POLLUTION CONTROL (4.4%)
30,100 Corrpro Companies, Inc. 556,850**
30,000 Molten Metal Technology, Inc. 521,250**
53,500 USA Waste Services, Inc. 802,500**
20,800 U.S. Filter Corp. 330,200**
-------------
Total Pollution Control 2,210,800
-------------
TOTAL CAPITAL GOODS (Cost: $16,973,352) 20,162,509
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
28
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1995
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- - ----------------- ----------------- -------------
<C> <S> <C>
BASIC INDUSTRIES (2.7%)
ENERGY AND OIL SERVICES (1.0%)
31,900 United Meridian Corp. $ 510,400**
-------------
METALS (1.7%)
23,000 Schnitzer Steel Industries, Inc. 500,250
49,000 Weirton Steel Corp. 361,375**
-------------
Total Metals 861,625
-------------
TOTAL BASIC INDUSTRIES (Cost: $1,403,249) 1,372,025
-------------
CREDIT SENSITIVE (8.9%)
BANKS (5.0%)
58,500 Hibernia Corp. (Class A) 468,000
23,400 Midlantic Corp. 854,100
27,300 UJB Financial Corp. 747,338
27,800 Vallicorp Holdings, Inc. 417,000
-------------
Total Banks 2,486,438
-------------
INSURANCE (3.7%)
22,000 PartnerRe Holdings, Ltd. 506,000
21,500 John Alden Financial Corp. 389,688
31,700 PXRE Corp. 768,722
9,500 United Wisconsin Services, Inc. 192,375
-------------
Total Insurance 1,856,785
-------------
TELECOMMUNICATIONS (0.2%)
2,500 Premisys Communications, Inc. 113,746**
-------------
TOTAL CREDIT SENSITIVE (Cost: $4,500,826) 4,456,969
-------------
TOTAL EQUITY SECURITIES (COST: $39,208,056) (86.1%) 43,031,556
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
29
<PAGE>
TCW GALILEO EARNINGS MOMENTUM FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED)
- - -----------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount CONVERTIBLE SECURITIES (COST: $62,397) (0.2%) Value
- - ----------------- --------------------------------------------- -------------
<C> <S> <C>
$ 59,000 Summit Health Ltd., Exchangeable Summit Group,
7.5%, due 04/01/03 $ 83,780
-------------
SHORT-TERM INVESTMENTS (COST: $5,908,790) (11.8%)
-------------------------------------------------
5,908,790 Bank of New York Depositary Reserve, 5.25%, due 05/01/95 5,908,790
-------------
TOTAL INVESTMENTS (COST: $45,179,243) (98.1%) 49,024,126
OTHER ASSETS IN EXCESS OF LIABILITIES (1.9%) 971,310
-------------
NET ASSETS (100%) $ 49,995,436
=============
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
30
<PAGE>
TCW GALILEO FUNDS, INC.
TCW GALILEO SMALL CAP GROWTH FUND
April 30, 1995
SCHEDULE OF INVESTMENTS (UNAUDITED)
- - -----------------------------------
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- - ----------------- ----------------- -------------
<C> <S> <C>
CONSUMER STAPLES (49.1% OF NET ASSETS)
BEVERAGES, TOBACCO AND DISTRIBUTION (2.0%)
17,000 Canandaigua Wine Company, Inc. Class A $ 731,000**
-------------
COSMETICS AND HOUSEHOLD PRODUCTS (1.7%)
7,500 Sola International, Inc. 164,063**
21,900 Thermolase Corp. 498,225**
-------------
Total Cosmetics and Household Products 662,288
-------------
DRUGS AND HOSPITAL SUPPLY (1.1%)
6,500 Gulf South Medical Supply, Inc. 273,000**
7,600 Medisense, Inc. 122,550**
-------------
Total Drugs and Hospital Supply 395,550
-------------
FOODS, HOTELS AND RESTAURANTS (2.1%)
8,000 Apple South, Inc. 116,000
9,000 Papa John's International, Inc. 311,625**
8,300 Rock Bottom Restaurants, Inc. 168,075**
7,500 Starbucks Corp. 176,250**
-------------
Total Foods, Hotels and Restaurants 771,950
-------------
HEALTHCARE (12.4%)
26,300 Dura-Pharmaceuticals, Inc. 402,718**
5,200 Healthwise of America, Inc. 145,600**
12,300 I-Stat Corp. 287,513**
14,000 Lincare Holdings, Inc. 432,250**
14,000 Medaphis Corp. 798,000**
22,300 MedPartners, Inc. 526,838**
8,000 Omnicare, Inc. 389,000
21,400 Oxford Health Plans, Inc. 890,775**
16,000 Rotech Medical Corp. 520,000**
1,000 Thermo Cardiosystems, Inc. 33,500**
5,400 Vencor, Inc. 167,400**
-------------
Total Healthcare 4,593,594
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
31
<PAGE>
TCW GALILEO SMALL CAP GROWTH FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
- - -----------------------------------------------
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- - ----------------- ----------------- -------------
<C> <S> <C>
LEISURE, ENTERTAINMENT, PHOTO AND MEDIA (12.4%)
17,000 Anchor Gaming $ 276,250**
19,200 Boomtown, Inc. 212,400**
8,000 Clear Channel Communications, Inc. 450,000**
4,900 Emmis Broadcasting Corp. Class A 104,125**
12,700 Hollywood Entertainment Corp. 457,200**
9,100 Lin Television Corp. 327,600**
16,000 Primadonna Resorts, Inc. 396,000**
18,700 Regal Cinemas, Inc. 504,900**
12,000 Scientific Games Holdings Corp. 291,000**
18,200 The Learning Company 477,750**
48,500 Westwood One, Inc. 618,375**
20,400 Young Broadcasting Corp. 448,800**
-------------
Total Leisure, Entertainment, Photo and Media 4,564,400
-------------
RETAIL (9.0%)
10,200 Bed, Bath & Beyond, Inc. 212,925**
11,000 Blyth Industries, Inc. 305,250**
11,600 Department 56, Inc. 429,200**
7,800 Gymboree Corp. 183,300**
11,800 Just for Feet, Inc. 337,775**
12,700 Officemax, Inc. 325,438**
18,000 Petsmart, Inc. 600,750**
25,000 Stein Mart, Inc. 284,375**
6,500 Sunglass Hut International, Inc. 186,469**
14,300 Tiffany & Company 459,386
-------------
Total Retail 3,324,868
-------------
RETAIL - FOOD & DRUG (0.5%)
8,300 Vons Companies, Inc. 170,150**
-------------
SERVICES - BUSINESS (7.9%)
4,800 Alternative Resources Corp. 202,800**
22,800 Corporate Express, Inc. 644,100**
3,600 Corrections Corp. of America 117,450**
5,400 Education Alternatives, Inc. 91,125**
12,900 Filenet Corp. 432,150**
25,000 Gartner Group, Inc. Class A 1,034,375**
6,200 Interim Services, Inc. 179,025**
6,700 Robert Half International, Inc. 176,713**
600 Tivoli Systems, Inc. 22,950**
-------------
Total Services - Business 2,900,688
-------------
TOTAL CONSUMER STAPLES (Cost: $14,900,079) 18,114,488
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
32
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1995
<TABLE>
<CAPTION>
Number of
Shares
or Warrants EQUITY SECURITIES Value
- - ----------------- ----------------- -------------
<C> <S> <C>
CONSUMER CYCLICALS (1.6%)
APPLIANCE AND HOME FURNISHINGS (0.7%)
12,100 Renters Choice, Inc. $ 257,125**
-------------
AUTOMOTIVE AND AUTOMOTIVE PARTS (0.9%)
15,100 Titan Wheel International, Inc. 349,188
-------------
TOTAL CONSUMER CYCLICALS (Cost: $432,155) 606,313
-------------
CAPITAL GOODS (34.5%)
AEROSPACE AND CONGLOMERATES (0.6%)
11,900 Trimble Navigation, Ltd. 226,100**
-------------
COMPUTER SOFTWARE AND SERVICES (2.7%)
7,400 CBT Group PLC (ADR) 196,100**
2,500 Medic Computer Systems, Inc. 110,000**
6,700 Oak Technology, Inc. 185,088**
3,300 Open Environment Corp. 57,750**
11,400 Remedy Corp. 430,350**
-------------
Total Computer Software and Services 979,288
-------------
ELECTRICAL EQUIPMENT (1.0%)
9,400 Baldor Electric Company 277,300
4,400 Itron, Inc. 111,100**
-------------
Total Electrical Equipment 388,400
-------------
ELECTRONICS - COMMUNICATION EQUIPMENT (5.6%)
3,400 American Satellite Network, Inc., Warrants, Expire 06/30/99 3**
3,200 Ascend Communications, Inc. 246,400**
10,900 Centennial Cellular Corp. 152,600**
21,800 Cidco, Inc. 784,800**
6,500 Digital Link Corp. 178,750**
15,000 LCI International, Inc. 378,750**
7,756 Millicom International Cellular S.A. 192,931**
9,200 Ortel Corp. 131,100**
-------------
Total Electronics - Communication Equipment 2,065,334
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
33
<PAGE>
TCW Galileo Funds, Inc.
TCW Galileo Small Cap Growth Fund
SCHEDULE OF INVESTMENTS (UNaudited) (Continued)
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- - ----------------- ----------------- -------------
<C> <S> <C>
Electronics - Semiconductors (6.7%)
8,700 Alliance Semiconductor Corp. $ 354,525**
12,300 ASM Lithography Holding 336,713**
5,200 Electroglas, Inc. 226,200**
8,100 Integrated Silicon Solution, Inc. 311,850**
20,000 Maxim Integrated Products, Inc. 725,000**
30,900 Methode Electronics, Inc. Class A 533,025
-------------
Total Electronics - Semiconductors 2,487,313
-------------
Information Processing (17.9%)
5,000 Aspen Technology, Inc. 103,750**
14,300 Atria Software, Inc. 615,794**
8,200 Broderbund Software, Inc. 405,900**
13,600 Cambridge Technology Partners, Inc. 467,500**
4,200 Datastream Systems, Inc. 100,800**
19,400 EPIC Design Technology, Inc. 514,100**
34,000 Frame Technology Corp. 714,000**
8,700 General Magic, Inc. 120,713**
1,600 Information Storage Devices, Inc. 38,400**
11,400 Intersolv, Inc. 156,750**
30,000 Macromedia, Inc. 1,005,000**
14,200 Microchip Technology, Inc. 401,150**
30,400 Netmanage, Inc. 554,800**
3,600 Peoplesoft, Inc. 184,500**
19,700 Platinum Software Corp. 194,538**
3,800 Policy Management Systems Corp. 191,425**
15,700 Security Dynamics Technology, Inc. 553,425**
1,000 Software Artistry, Inc. 24,875**
5,800 Xcellenet, Inc. 137,025**
5,700 Xylogics, Inc. 115,423**
-------------
Total Information Processing 6,599,868
-------------
TOTAL CAPITAL GOODS (Cost: $9,235,207) 12,746,303
-------------
BASIC INDUSTRIES (2.0%)
Energy and Oil Services (1.2%)
2,600 Global Industries, Ltd. 66,300**
35,200 Weatherford International, Inc. 387,200**
-------------
Total Energy and Oil Services 453,500
-------------
Transportation (0.8%)
5,000 Fritz Companies, Inc. 301,250**
-------------
TOTAL BASIC INDUSTRIES (Cost: $674,555) 754,750
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
34
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1995
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- - ----------------- ----------------- -------------
<C> <S> <C>
CREDIT SENSITIVE (6.0%)
BANKS (0.5%)
24,000 Hibernia Corp. Class A $ 192,000
-------------
FINANCIAL SERVICES (0.6%)
19,400 Leasing Solutions, Inc. 203,700**
-------------
INSURANCE (4.2%)
31,900 Crop Growers Corp. 972,950**
10,600 Gallagher (Arthur J.) & Company 363,050
7,000 Life Partners Group, Inc. 136,500
2,500 Vesta Insurance Group, Inc. 83,438
-------------
Total Insurance 1,555,938
-------------
TELECOMMUNICATIONS (0.7%)
5,600 Premisys Communications, Inc. 254,798**
-------------
TOTAL CREDIT SENSITIVE (Cost: $1,472,333) 2,206,436
-------------
TOTAL EQUITY SECURITIES (COST: $26,714,329) (93.2%) 34,428,290
-------------
Principal
Amount SHORT-TERM INVESTMENTS (COST: $2,432,525) (6.6%)
- - ----------------- ------------------------------------------------
$ 2,432,525 Bank of New York Depositary Reserve, 5.25%, due 05/01/95 2,432,525
-------------
TOTAL INVESTMENTS (COST: $29,146,854) (99.8%) 36,860,815
OTHER ASSETS IN EXCESS OF LIABILITIES (0.2%) 60,974
-------------
NET ASSETS (100%) $ 36,921,789
=============
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
35
<PAGE>
TCW GALILEO ASIA PACIFIC EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
- - -----------------------------------
<TABLE>
<CAPTION>
Number of
Shares or
Warrants EQUITY SECURITIES Value
- - ----------------- ----------------- -------------
<C> <S> <C>
COMMON STOCK
CHINA (1.0% OF NET ASSETS)
20,000 Shandong Huaneng Power (ADR) $ 165,000
250,000 Shanghai Yaohua Pilkington, Series B 221,500
-------------
TOTAL CHINA (Cost: $561,988) 386,500
-------------
HONG KONG (30.7%)
462,000 ASM Pacific Technology 310,267
246,000 Cheung Kong Holdings, Limited 1,035,723
138,000 China Light & Power 650,523
292,800 Consolidated Electric Power Asia 640,961
176,000 Guoco Group 668,268
107,500 Hang Seng Bank 708,059
57,000 Henderson Land Development 293,723
75,400 Hong Kong Aircraft Engineering Company 192,809
211,000 Hong Kong Electric Holdings 647,197
105,000 Hong Kong Land Holdings Limited 197,400
360,000 Hong Kong Telecommunications 704,378
121,237 HSBC Holdings Public, Limited 1,405,272
378,000 Hong Kong & China Gas 549,206
236,000 Hutchison Whampoa 1,024,099
91,000 Jardine Matheson 723,450
146,250 Jardine Strategic Holdings 497,250
16,250 Jardine Strategic Holdings, Warrants, expire 05/02/98 -**
165,000 Sun Hung Kai Properties, Limited 1,052,693
102,500 Swire Pacific, Limited, Class A 685,054
197,000 Varitronix International, Limited 287,499
-------------
TOTAL HONG KONG (Cost: $12,058,794) 12,273,831
-------------
INDIA (3.1%)
12,000 Bajaj Auto, Limited (GDS) 306,000
5,800 Hindalco Industries, Limited (GDR) 150,800
30,000 India Cement (GDR) 285,000
31,000 Larsen & Toubro, Ltd. (GDR) 511,500
-------------
TOTAL INDIA (Cost: $1,249,520) 1,253,300
-------------
INDONESIA (5.7%)
188,000 Astra International 239,839
73,000 PT HM Sampoerna (For. Reg.) 428,066
116,970 PT Indofood Sukses 413,636
14,400 PT Indonesian Satellite Corporation (ADR) 522,000
165,000 PT International Indorayon Utama 332,363
44,160 PT Mayora Indah (For. Reg.) 158,138
36,000 PT Semen Gresik 164,369
-------------
TOTAL INDONESIA (Cost: $2,532,204) 2,258,411
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
36
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1995
<TABLE>
<CAPTION>
Number of
Shares or
Warrants EQUITY SECURITIES Value
- - ----------------- ----------------- -------------
<C> <S> <C>
MALAYSIA (18.5%)
68,000 Berjaya South Island $ 506,149
114,000 Commerce Asset Holdings 498,058
215,000 Development & Commercial Bank Holdings Berhad 513,147
228,000 Industrial Oxygen Incorporated 272,089
6,000 Lam Soon Huat 21,723
201,000 Land & General Holdings 581,371
523,500 Lion Land 603,550
175,000 Malakoff Berhad 460,154
150,000 Malaysian Resources Corporation 254,854
245,000 MBF Capital Berhad 236,873
210,000 New Straits Times Press 607,403
335,000 Pelangi Berhad 405,198
557,000 Renong Berhad 851,723
370,000 Sime Darby Berhad 942,961
143,000 Technology Resources Industries Berhad 364,442
43,000 Telekom Malaysia Berhad 295,712
-------------
TOTAL MALAYSIA (Cost: $7,345,255) 7,415,407
-------------
PAKISTAN (COST: $541,108) (0.8%)
3,010 Pakistan Telecommunications (GDS) 307,020
-------------
PHILIPPINES (4.2%)
2,150,000 Aboitiz Equity Ventures 394,646
2,032,500 Belle Corp. 322,557
40,000 Manila Electric Company 413,002
26,430 Philippine National Bank 249,645
4,800 Philippine Long Distance 306,000
-------------
TOTAL PHILIPPINES (Cost: $1,781,000) 1,685,850
-------------
SINGAPORE (12.6%)
130,000 City Development 764,432
119,000 Development Bank of Singapore 1,271,495
95,000 Keppel Corporation 769,810
269,000 Parkway Holdings, Limited, Warrants, expire 10/03/98 270,061**
210,000 Republic Hotels & Resorts, Limited 287,630
105,000 Singapore Land 677,662
755,000 UIC Limited 703,836
80,000 Van der Horst 260,452
-------------
TOTAL SINGAPORE (Cost: $4,695,919) 5,005,378
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
37
<PAGE>
TCW GALILEO ASIA PACIFIC EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
Number of
Shares or
Warrants EQUITY SECURITIES Value
- - ----------------- ----------------- -------------
<C> <S> <C>
SOUTH KOREA (3.9%)
115 Daewoo Corporation Warrants, expire 11/08/96 $ 28,750**
35 Dong Yang Dragon Trust 402,500
13,500 Korea Mobile Telecom CRP (GDR) 388,125
15,016 Pohang Iron & Steel, Limited (ADR) 414,817
18,000 Samsung Engineering & Construction (GDR) 112,500
6,925 Samsung Engineering & Construction (New) (GDR) 82,566
9,595 Samsung Engineering & Construction (New 1995) (GDR) 114,400
130 Tong Yang Cement Corporation, Warrants, expire 08/18/96 32,500**
-------------
TOTAL SOUTH KOREA (Cost: $2,307,607) 1,576,158
-------------
THAILAND (9.0%)
400,000 Bangkok Metropolitan Bank 406,421
218,000 Electricity Generating Pub. 584,759
97,000 Juldis Development (For. Reg.) 350,864
8,500 PTT Exploration & Production 82,910
55,000 PTT Exploration & Production (For. Reg.) 536,476
173,800 Sahaviriya Steel 448,539
12,000 Siam Cement Company, Limited 689,616
34,000 United Communication Industry 497,461
-------------
TOTAL THAILAND (Cost: $3,176,434) 3,597,046
-------------
TOTAL EQUITY SECURITIES (COST: $36,249,829)(89.5%) 35,758,901
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
38
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1995
<TABLE>
<CAPTION>
Principal
Amount CONVERTIBLE SECURITIES Value
- - ----------------- ---------------------- -------------
<C> <S> <C>
HONG KONG (COST: $246,250) (0.4%)
$ 250,000 Regal Hotels, Convertible Bond, 5.25%, due 12/13/08 $ 182,500
-------------
INDIA (1.3%)
160,000 Essar Gujarat, Convertible Bond, 5.5%, due 08/05/98 182,400
340,000 Reliance Industries, Limited, Convertible Bond,
3.5%, due 11/03/99 340,000
-------------
TOTAL INDIA (Cost: $646,358) 522,400
-------------
PHILIPPINES (COST: $500,000) (1.1%)
500,000 Bacnotan Consolidated, Convertible Bond, 5.5%, due 06/21/04 430,000
-------------
SOUTH KOREA (1.9%)
210,000 Daewoo Electronics, Convertible Bond, 3.5%, due 12/31/07 245,700
170,000 Goldstar, Convertible Bond, 3.25%, due 12/31/06 203,150
CHF 330,000 Yukong Limited, Convertible Bond, 1%, due 12/31/98 329,281
-------------
TOTAL SOUTH KOREA (Cost: $1,317,381) 778,131
-------------
THAILAND (3.0%)
$ 132,000 Dhana Siam Financial, Convertible Bond, 4%, due 10/06/03 141,240
315,000 Land & House Public Company, Convertible Bond,
5%, due 04/29/03 434,700
790,000 Siam Commercial Bank Company, Convertible Bond,
3.25%, due 01/24/04 616,200*
-------------
TOTAL THAILAND (Cost: $1,354,375) 1,192,140
-------------
TOTAL CONVERTIBLE SECURITIES
(COST: $4,064,364) (7.7%) 3,105,171
-------------
SHORT-TERM INVESTMENTS (COST: $948,875)(2.4%)
---------------------------------------------
948,875 Bank of New York Depositary Reserve, 5.25%, due 05/01/95 948,875
-------------
TOTAL INVESTMENTS (COST: $41,263,068)(99.6%) 39,812,947
EXCESS OF OTHER ASSETS OVER LIABILITIES (0.4%) 154,539
-------------
NET ASSETS (100%) $ 39,967,486
=============
</TABLE>
CHF - Swiss Francs.
* Restricted security. (See Note 6)
See accompanying Notes to Financial Statements.
39
<PAGE>
TCW GALILEO EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
- - -----------------------------------
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- - ----------------- ----------------- -------------
<C> <S> <C>
COMMON STOCK
ARGENTINA (3.0% OF NET ASSETS)
61,300 Astra Compania Argentina de Petroleo, S.A. $ 94,289
4,000 Banco del Sud, S.A. 23,572
1,400 Banco Frances del Rio de la Plata, S.A. 25,550
5,750 Buenos Aires Embotelladora, S.A. (ADR) 158,125
78,102 Compania Naviera Perez Companc, S.A. C.I.M.F.A. 318,274
15,300 Dycasa Dragados y Construcciones Argentina, S.A. I.C.I. 58,436
26,900 Juan Minetti, S.A. 85,977
16,100 Mirgor, S.A.C.I.F.I.A. (144A ADS) 33,206***
13,046 Molinos Rio de la Plata, S.A. 65,152
20,500 Sociedad Commercial Del Plata, S.A. 46,070
13,400 Transportadora de Gas Del Sur, S.A. 132,324
21,400 Yacimientos Petroliferos Fiscales (ADR) 433,350
-------------
TOTAL ARGENTINA (Cost: $1,667,277) 1,474,325
-------------
BELIZE (COST: $165,000) (0.3%)
10,083 Belize Holdings, Incorporated (ADR) 152,505**
BRAZIL (2.8%)
1,312,473 Centrais Eletricas Brasileiras, S.A. (Eletrobras) 360,287
29,400 Clark Automotive Products Corporation (CAPCO) (ADR) 260,925**
30,020,000 Companhia Brasileira de Petroleo Ipiranga (CEPI) 415,309
10,500,000 Companhia Siderurgica Nacional 265,359
2,700,000 Telecominicaciones Brasileiras, S.A. 80,324
-------------
TOTAL BRAZIL (Cost: $1,688,749) 1,382,204
-------------
CHILE (3.0%)
6,300 Admin. de Fondos de Pensiones Provida, S.A. 133,875
7,600 Banco Osorno (ADR) 91,200
9,000 Chilegener, S.A. (ADR) 252,000
3,500 Compania de Telefonos de Chile, S.A. 241,500
1,500 Embotelladora Andina, S.A. 43,125
9,900 Enersis, S.A. (ADR) 277,200
2,650 Genesis Chile Fund 86,622
4,200 Madeco 122,325
9,850 Maderas y Sinteticos, S.A. (ADR) 172,374
1,500 Sociedad Quimica Y Minera de Chile, S.A. 52,313
-------------
TOTAL CHILE (Cost: $1,411,086) 1,472,534
-------------
</TABLE>
* Restricted security. (See Note 6)
** Non-income producing.
See accompanying Notes to Financial Statements.
40
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1995
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- - ----------------- ----------------- -------------
<C> <S> <C>
CHINA (1.0%)
24,000 Shandong Huaneng Power (ADR) $ 198,000
451,300 Shanghai Dajiang, Series B 210,306
98,200 Shanghai Yaohua Pilkington, Series B 87,005
-------------
TOTAL CHINA (Cost: $650,405) 495,311
-------------
COLOMBIA (2.7%)
27,000 Banco de Bogota 136,989
39,200 Cementos Argos, S.A. 313,939
8,300 Cementos Diamante, S.A. (144A ADS) 176,375*
3,800 Cementos Paz del Rio, S.A. (144A ADS) 61,275*
14,470 Compania Nacional de Chocolates 140,740
30,200 Exito 154,599
15,300 Suramericana de Seguros, S.A. 334,179
-------------
TOTAL COLOMBIA (Cost: $1,500,633) 1,318,096
-------------
GREECE (2.0%)
19,600 Aegek 405,452
5,390 Delta Dairy 101,158
6,230 Ergo Bank 264,072
7,980 Intracommercial 223,152
-------------
TOTAL GREECE (Cost: $1,081,782) 993,834
-------------
HONG KONG (COST: $459,858) (1.0%)
223,000 Consolidated Electric Power Asia 488,164
-------------
INDIA (1.6%)
13,500 Hindalco Industries, Limited (GDR) 351,000
28,000 Larsen & Toubro, Limited (GDR) 462,000
-------------
TOTAL INDIA (Cost: $791,600) 813,000
-------------
INDONESIA (2.9%)
141,000 Astra International 179,879
97,475 PT Indofood Sukses Makmur (For. Reg.) 344,697
8,900 PT Indonesian Satellite Corporation (ADR) 322,625
117,000 PT International Indorayon Utama 235,676
95,680 PT Mayora Indah (For. Reg.) 342,632
-------------
TOTAL INDONESIA (Cost: $1,878,083) 1,425,509
-------------
</TABLE>
* Restricted security. (See Note 6)
See accompanying Notes to Financial Statements.
41
<PAGE>
TCW GALILEO EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
- - -----------------------------------------------
<TABLE>
<CAPTION>
Number of
Shares, Units
or Warrants EQUITY SECURITIES Value
- - ----------------- ----------------- -------------
<C> <S> <C>
EASTERN EUROPE (COST: $275,000) (0.5%)
27,500 Central Asia Investment Company $ 264,000
-------------
MALAYSIA (20.7%)
91,000 Berjaya South Island 677,346
191,000 Commerce Asset Holdings 834,466
408,000 Development & Commercial Bank Holdings Berhad 973,786
56,000 Genting Berhad 509,709
465,000 Industrial Oxygen Incorporated 554,915
315,000 Land & General Holdings 911,104
699,500 Lion Land 806,462
279,000 MBF Capital Berhad 269,745
362,000 Malaysian Resources Corporation 615,049
181,000 Multi Purpose Holdings 259,199
8,200 Multi Purpose Holdings Warrants, expire 05/13/99 5,971**
170,000 New Straits Times Press Berhad 491,708
709,000 Renong Berhad 1,084,150
467,000 Sime Darby Berhad 1,190,170
222,000 Technology Resources Industries Berhad 565,777
81,000 Telekom Malaysia Berhad 557,039
-------------
TOTAL MALAYSIA (Cost: $10,416,947) 10,306,596
-------------
MEXICO (7.2%)
228,200 Cifra, S.A. de C.V., Series C 319,943
37,740 Gruma, S.A. de C.V. 128,775
75,000 Grupo Carso, S.A. de C.V. Series A1 405,405**
92,700 Grupo Cementos Chihuahua, S.A. de C.V., Series B 82,365
69,300 Grupo Financiero Inbur, S.A. de C.V., Series C 133,449**
58,400 Grupo Industria Alfa, S.A. de C.V., Series A 565,257
16,613 Grupo Industrial Maseca, S.A. de C.V. (ADR) 201,433
6,899 Grupo Industria San Luis (CPO units) 102,902
6,030 Grupo Televisa, S.A. de C.V. (ADR) 121,354
10,000 Hylsamex, S.A. de C.V. (144A ADR) 138,125*
217,600 Industria Automotriz, S.A. de C.V., Series B 45,439**
66,600 Jugos del Valle, S.A. de C.V., Series B 180,000
10,400 Kimberly Clark de Mexico, S.A. de C.V., Series A 106,284
22,220 Telefonos de Mexico, S.A. de C.V., Series L (ADR) 669,378
37,700 Transportacion Maritima Mexicana, S.A. de C.V. (TMM),
Series A (ADR) 216,774
36,100 Tubos de Acero de Mexico, S.A. de C.V. (TAMSA) (ADR) 155,681
-------------
TOTAL MEXICO (Cost: $5,587,421) 3,572,564
-------------
</TABLE>
* Restricted security. (See Note 6)
** Non-income producing.
See accompanying Notes to Financial Statements.
42
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1995
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- - ----------------- ----------------- -------------
<C> <S> <C>
PAKISTAN (COST: $713,687) (0.8%)
3,970 Pakistan Telecommunications (GDS) $ 404,940
-------------
PANAMA (1.0%)
15,100 Panamco Beverage (ADR) 392,600
3,700 Banco Latinamericano de Exportaciones, S.A. 114,700
-------------
TOTAL PANAMA (Cost: $666,406) 507,300
-------------
PERU (1.0%)
109,895 Banco de Credito del Peru 230,070
51,800 Cerveceria Backus & Johnson 125,289
9,500 Enrique Ferreyros, S.A. 14,896
21,100 Explosivos, S.A. 109,682
-------------
TOTAL PERU (Cost: $454,488) 479,937
-------------
PHILIPPINES (1.7%)
209,000 Bacnotan Cement Corporation 243,767
60,200 Manila Electric Company 621,568
-------------
TOTAL PHILIPPINES (Cost: $802,078) 865,335
-------------
PORTUGAL (4.3%)
31,100 Corticeira Amorim 482,018
36,157 Espirito Santo Financial Holdings (ADR) 497,159
18,700 Soares da Costa 378,824
5,610 Soares da Costa (issue '94) 110,448
3,000 Somec Bearer Ordinary Shares 30,407
25,450 Sonae Investments, Series A 617,677
-------------
TOTAL PORTUGAL (Cost: $2,059,821) 2,116,533
-------------
SINGAPORE (0.9%)
251,000 Republic Hotels & Resorts, Limited 343,786
31,000 Van der Horst 100,925
-------------
TOTAL SINGAPORE (Cost: $544,520) 444,711
-------------
</TABLE>
See accompanying Notes to Financial Statements.
43
<PAGE>
TCW GALILEO EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
- - -----------------------------------------------
<TABLE>
<CAPTION>
Number of
Shares or
Warrants EQUITY SECURITIES Value
- - ----------------- ----------------- -------------
<C> <S> <C>
SOUTH AFRICA (6.7%)
7,900 Anglo Alpha, Limited $ 246,568
5,100 Anglovaal, Limited (144A ADR) 167,025*
29,500 Barlow, Limited 297,404
18,400 DeBeers Consolidated Mines, Ltd. (ADR) 508,300
60,200 Gencor 195,374
20,339 Murray & Roberts 573,009
16,559 Pretoria Portland Cement 434,499
12,000 South African Breweries, Limited (Ordinary shares) 331,446
21,205 South African Breweries, Limited (ADR) 581,812
-------------
TOTAL SOUTH AFRICA (Cost: $2,975,380) 3,335,437
-------------
SOUTH KOREA (3.0%)
60 Daewoo Corporation Warrants, expire 11/08/96 15,000**
20 Dong Yang Dragon Trust 230,000
16,700 Korea Mobile Telecom CRP (GDR) 480,125
9,784 Pohang Iron & Steel, Limited (ADR) 270,283
3,000 Samsung Electronics Company (GDS) 144,000
21,000 Samsung Engineering & Construction (GDR) 131,250
11,194 Samsung Engineering & Construction (New) (GDR) 133,465
8,079 Samsung Engineering & Construction (New 1995) (GDR) 96,325
-------------
TOTAL SOUTH KOREA (Cost: $2,162,604) 1,500,448
-------------
THAILAND (5.5%)
78,000 PTT Exploration & Production 760,821
16,400 Siam Cement Company, Limited 942,475
60,000 Thai Farmer's Bank (For. Reg.) 526,722
34,000 United Communication Industry 497,460
-------------
TOTAL THAILAND (Cost: $1,905,395) 2,727,478
-------------
TURKEY (0.7%)
1,250,000 Turkiye Ganranti Bankasi 315,434
15,494 Turkiye Ganranti Bankasi (ADR) 38,735
-------------
TOTAL TURKEY (Cost: $318,020) 354,169
-------------
VIETNAM (COST: $338,871) (0.7%)
32,900 Lazard Vietnam Fund - Preference shares 361,900
-------------
TOTAL COMMON STOCK (COST: $40,515,111)(75.0%) 37,256,830
-------------
</TABLE>
* Restricted security. (See Note 6)
** Non-income producing.
See accompanying Notes to Financial Statements.
44
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1995
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- - ----------------- ----------------- -------------
<C> <S> <C>
PREFERRED STOCK
BRAZIL (10.8%)
62,666 Aracruz Cellulose, S.A. $ 122,875
29,182,985 Banco Bradesco, S.A. 222,846
687,800 Banco Itau, S.A. 183,563
1,150 Bardella, S.A. 235,512
1,902,000 Caemi Mindacao e Metalurgra, S.A. 190,614
1,336,893 Casa Anglo, S.A. 167,476**
1,965,389 Centrais Eletricas Brasileiras, S.A. (Eletrobras) 526,673
15,729,600 Companhia Acos Especiais Itabira (Acesita) 133,650
711,600 Companhia Cervejaria Brahma 205,426
7,794,064 Companhia Energetica de Minas Gerais (CEMIG) 181,607
656,900 Companhia de Tecidos Norte de Minas, S.A. (Coteminas) 172,454
2,641,200 Compania Vale do Rio Doce, S.A. (CVRD) 430,101
227,600 Confab 247,930
70,500 Copene Petroquimica do Nordeste, S.A., Series A 50,149
115,017 Industria Klabin de Papel e Cellulose, S.A. (Klabin) 164,131
796,000 Iochpe Maxion, S.A. 411,874
21,800,000 Manufactura de Brinquedos Estrela, S.A. (Estrela) 23,747
116,710,916 Refrigeracao Parana, S.A. 254,272
69,900,000 Tecelagem Kuehnrich, S.A. (Teka) 121,830
16,947,492 Telecomunicacoes Brasileiras, S.A. (Telebras) 603,685
4,518,700 Telecomunicacoes de San Paulo, S.A. (Telesp) 566,118
108,007,000 Usinas Siderurgicas de Minas Gerais, S.A. 130,597
-------------
TOTAL BRAZIL (Cost: $6,357,900) 5,347,130
-------------
PERU (COST: $284,312) (0.6%)
182,655 Compania Peruana de Telefonos (CPT), Series B 305,916
-------------
TOTAL PREFERRED STOCK (COST: $6,642,212)(11.4%) 5,653,046
-------------
TOTAL EQUITY SECURITIES (COST: 47,157,323)(86.4%) 42,909,876
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
45
<PAGE>
TCW GALILEO EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED)
- - -----------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount CONVERTIBLE SECURITIES Value
- - ----------------- ---------------------- -------------
<C> <S> <C>
INDIA (1.1%)
$ 60,000 Essar Gujarat, Convertible Bond, 5.5%, due 08/05/98 $ 68,400
450,000 Reliance Industries, Limited, Convertible Bond,
3.5%, due 11/03/994 450,000
-------------
TOTAL INDIA (Cost: $566,760) 518,400
-------------
PHILIPPINES (COST: $641,000) (1.1%)
650,000 Bacnotan Consolidated, Convertible Bond,
5.5%, due 06/21/04 559,000
-------------
SOUTH KOREA (2.0%)
230,000 Daewoo Electronics, Convertible Bond, 3.5%, due 12/31/07 269,100
150,000 Goldstar, Convertible Bond, 3.25%, due 12/31/06 179,250
165,000 Jinro Limited, Convertible Bond, 0.25%, due 09/30/09 159,225
130,000 Ssangyong Oil Refinery, Convertible Bond, 3.75%, due 12/31/08 127,075
CHF 250,000 Yukong Limited, Convertible Bond, 1%, due 12/31/98 249,455
-------------
TOTAL SOUTH KOREA (Cost: $1,509,050) 984,105
-------------
THAILAND (2.2%)
$ 166,000 Dhana Siam Financial, Convertible Bond, 4%, due 10/06/03 177,620
303,000 Land & House Public Company, Convertible Bond,
5%, due 04/29/03 418,140
640,000 Siam Commercial Bank Company, Convertible Bond,
3.25%, due 01/24/04 499,200*
-------------
TOTAL THAILAND (Cost: $1,275,708) 1,094,960
-------------
TOTAL CONVERTIBLE SECURITIES (COST: $3,992,518)(6.4%) 3,156,465
-------------
SHORT-TERM INVESTMENTS (COST: $3,348,165)(6.7%)
-----------------------------------------------
3,348,165 Bank of New York Depositary Reserve, 5.25%, due 05/01/95 3,348,165
-------------
TOTAL INVESTMENTS (COST: $54,498,006)(99.5%) 49,414,506
EXCESS OF OTHER ASSETS OVER LIABILITIES (0.5%) 269,734
-------------
NET ASSETS (100%) $ 49,684,240
=============
</TABLE>
CHF - Swiss Francs.
* Restricted security. (See Note 6)
See accompanying Notes to Financial Statements.
46
<PAGE>
TCW GALILEO FUNDS, INC.
TCW GALILEO LATIN AMERICA EQUITY FUND
April 30, 1995
SCHEDULE OF INVESTMENTS (UNAUDITED)
- - -----------------------------------
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- - ----------------- ----------------- -------------
<C> <S> <C>
COMMON STOCK
ARGENTINA (9.0% OF NET ASSETS)
130,400 Astra Compania Argentina de Petroleo, S.A. $ 200,575
10,900 Banco del Sud, S.A. 64,233
3,800 Banco Frances del Rio de la Plata, S.A. 69,350
12,300 Buenos Aires Embotelladora, S.A. (ADR) 338,250
27,000 Compania Argentina de Telefonos, S.A. Series B (ARP1) 117,040
242,541 Compania Naviera Perez Companc, S.A.C.I.M.F.A. 988,381
64,700 Dycasa Dragados y Construcciones Argentina, S.A.I.C.I. 247,111
65,795 Juan Minetti, S.A. 210,292
55,300 Mirgor, S.A.C.I.F.I.A. (144A ADS) 114,056*
19,900 Molinos Rio de la Plata, S.A. 99,381
28,300 Sociedad Commercial Del Plata, S.A. 63,599
7,400 Telefonica de Argentina, S.A. 173,900
26,830 Transportadora de Gas Del Sur, S.A. 264,946
57,700 Yacimientos Petroliferos Fiscales (ADR) 1,168,425
-------------
TOTAL ARGENTINA (Cost: $4,583,209) 4,119,539
-------------
BRAZIL (8.7%)
3,405,033 Centrais Eletricas Brasileiras, S.A. (Eletrobras) 934,715
71,900 Clark Automotive Products Corporation (CAPCO) (ADR) 638,113**
78,680,000 Companhia Brasileira de Petroleo Ipiranga (CEPI) 1,088,492
27,405,000 Companhia Siderurgica Nacional 692,588
35,700 Rhodia-Ster, S.A. (144A GDS) 468,563
5,200,000 Telecominicaciones Brasileiras, S.A. 154,697
-------------
TOTAL BRAZIL (Cost: $4,592,391) 3,977,168
-------------
CHILE (8.1%)
20,000 Admin. de Fondos de Pensiones Provida, S.A. 425,000
14,900 Banco Osorno (ADR) 178,800
25,000 Chilegener, S.A. (ADR) 700,000
8,630 Compania de Telefonos de Chile, S.A. 595,470
6,550 Embotelladora Andina, S.A. 188,313
20,382 Enersis, S.A. (ADR) 570,696
8,300 Genesis Chile Fund 271,306
7,000 Madeco 203,875
22,363 Maderas y Sinteticos, S.A. (ADR) 391,352
4,970 Sociedad Quimica Y Minera de Chile, S.A. 173,329
-------------
TOTAL CHILE (Cost: $3,387,271) 3,698,141
-------------
</TABLE>
* Restricted security. (See Note 6)
** Non-income producing.
See accompanying Notes to Financial Statements.
47
<PAGE>
TCW GALILEO LATIN AMERICA EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
- - -----------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Units EQUITY SECURITIES Value
- - ----------------- ----------------- -------------
<C> <S> <C>
COLOMBIA (7.1%)
69,757 Banco de Bogota $ 353,923
104,828 Cementos Argos, S.A. 839,530
22,800 Cementos Diamante, S.A. (144A ADS) 484,500*
29,358 Compania Nacional de Chocolates 285,548
79,700 Exito 407,997
41,100 Suramericana de Seguros, S.A. 897,697
-------------
TOTAL COLOMBIA (Cost: $3,721,209) 3,269,195
-------------
MEXICO (22.8%)
653,140 Cifra, S.A. de C.V., Series C 915,720
166,260 Gruma, S.A. de C.V. 567,306
215,500 Grupo Carso, S.A. de C.V., Series A1 1,164,865**
394,800 Grupo Cementos Chihuahua, S.A. de C.V., Series B 350,785
186,900 Grupo Financiero Inbur, S.A. de C.V., Series C 359,909**
143,659 Grupo Industria Alfa, S.A. de C.V., Series A 1,390,483
59,132 Grupo Industrial Maseca, S.A. de C.V. (ADR) 716,976
26,815 Grupo Industria San Luis (CPO Units) 399,960
23,540 Grupo Televisa, S.A. de C.V. (ADR) 473,743
9,400 Hylsamex, S.A. de C.V. (144A ADR) 129,838*
1,740,800 Industria Automotriz, S.A. de C.V., Series B 363,510**
243,700 Jugos Del Valle, S.A. de C.V., Series B 658,649
23,000 Kimberly Clark de Mexico, S.A. de C.V., Series A 235,051
67,395 Telefonos de Mexico, S.A., de C.V., Series L (ADR) 2,030,274
60,200 Transportacion Maritima Mexicana, S.A. de C.V. (TMM),
Series A (ADR) 346,150
80,382 Tubos de Acero de Mexico, S.A. de C.V. (TAMSA) (ADR) 346,646
-------------
TOTAL MEXICO (Cost: $16,647,935) 10,449,865
-------------
PANAMA (2.9%)
40,200 Panamco Beverage (ADR) 1,045,200
8,300 Banco Latinamericano de Exportaciones, S.A. 257,300
-------------
TOTAL PANAMA (Cost: $1,738,065) 1,302,500
-------------
PERU (2.6%)
182,260 Banco de Credito del Peru 381,569
135,950 Cerveceria Backus & Johnson 328,823
41,500 Enrique Ferreyros, S.A. 65,069
78,000 Explosivos, S.A. 405,461
-------------
TOTAL PERU (Cost: $1,095,895) 1,180,922
-------------
VENEZUELA (COST: $972)(0.1%)
15,328 Electricidad de Caracas 15,847
-------------
TOTAL COMMON STOCK (COST: $35,766,947)(61.2%) 28,013,177
-------------
</TABLE>
* Restricted security. (See Note 6)
** Non-income producing.
See accompanying Notes to Financial Statements.
48
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1995
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- - ----------------- ----------------- -------------
<C> <S> <C>
PREFERRED STOCK
BRAZIL (33.0%)
752,000 Antarctica, S.A. $ 97,465
33,473 Aracruz Cellulose, S.A. (ADR) 322,178
86,178,780 Banco Bradesco, S.A. 658,075
2,083,000 Banco Itau, S.A. 555,920
2,050 Bardella, S.A. 419,826
4,575,000 Caemi Mindacao e Metalurgra, S.A. 458,497
3,827,974 Casa Anglo, S.A. 479,539**
6,148,180 Centrais Eletricas Brasileiras, S.A. (Eletrobras) 1,647,552
49,968,600 Companhia Acos Especiais Itabira (Acesita) 424,570
2,115,897 Companhia Cervejaria Brahma 610,821
30,937 Companhia Energetica de Minas Gerais (CEMIG) 717,352
1,797,400 Companhia de Tecidos Norte de Minas, S.A. (Coteminas) 471,866
8,028,000 Compania Vale do Rio Doce, S.A. (CVRD) 1,307,435
827,200 Confab 901,089
224,000 Copene Petroquimica do Nordeste, S.A., Series A 159,338
359,250 Industria Klabin de Papel e Cellulose, S.A. (Klabin) 512,655
1,506,000 Iochpe Maxion, S.A. 779,248
219,053,207 Refrigeracao Parana, S.A. 477,240
221,400,000 Tecelagem Kuehnrich, S.A. (Teka) 385,882
46,915,257 Telecomunicacoes Brasileiras, S.A. (Telebras) 1,671,164
13,242,800 Telecomunicacoes de San Paulo, S.A. (Telesp) 1,659,102
309,995,000 Usinas Siderurgicas de Minas Gerais, S.A. 374,831
-------------
TOTAL BRAZIL (Cost: $16,859,397) 15,091,645
-------------
PERU (COST: $775,202)(1.9%)
526,423 Compania Peruana de Telefonos (CPT), Series B 881,670
-------------
TOTAL PREFERRED STOCK (COST: $17,634,599)(34.9%) 15,973,315
-------------
TOTAL EQUITY SECURITIES (COST: $53,401,546)(96.1%) 43,986,493
-------------
Principal
Amount SHORT-TERM INVESTMENTS (COST: $2,771,088)(6.1%)
- - ----------------- -----------------------------------------------
$ 2,771,088 Bank of New York Depositary Reserve, 5.25%, due 05/01/95 2,771,088
-------------
TOTAL INVESTMENTS (COST: $56,172,634)(102.2%) 46,757,580
EXCESS OF LIABILITIES OVER OTHER ASSETS (-2.2%) (992,588)
-------------
NET ASSETS (100%) $ 45,764,992
=============
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
49
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
- - ------------------------------------------------
<TABLE>
<CAPTION>
TCW GALILEO
MONEY MARKET
FUND
--------------
<S> <C>
ASSETS
Investments, at Value /(1)/ $ 102,511
Receivables for Securities Sold -
Accrued Interest and Dividends Receivable 148
Deferred Organization Costs -
--------------
Total Assets 102,659
--------------
LIABILITIES
Payable for Fund Shares Redeemed -
Payables for Securities Purchased -
Repurchase of Investments Under Dollar Roll Agreements -
Management Fees and Other Accrued Expenses 501
--------------
Total Liabilities 501
--------------
NET ASSETS $ 102,158
==============
NET ASSETS CONSIST OF:
Paid-in Capital $ 102,158
Undistributed Net Realized Loss on Investments
and Foreign Currency Transactions -
Unrealized Appreciation (Depreciation) on Investments
and Foreign Currency Translations -
Undistributed (Overdistributed) Net Investment Income -
--------------
NET ASSETS $ 102,158
==============
CAPITAL SHARES OUTSTANDING 102,157,707
==============
NET ASSET VALUE PER SHARE $ 1.00
==============
</TABLE>
(1) The identified cost for the TCW Galileo Money Market Fund, the TCW Galileo
High Grade Fixed Income Fund, the TCW Galileo High Yield Bond Fund, the TCW
Galileo Mortgage Backed Securities Fund and the TCW Galileo Long-Term
Mortgage Backed Securities Fund at April 30, 1995 was $102,125, $40,321,
$104,422, $98,299 and $72,270, respectively.
See accompanying Notes to Financial Statements.
50
<PAGE>
TCW GALILEO FUNDS, INC.
Dollar Amounts in Thousands
(Except per Share Amounts)
April 30, 1995
<TABLE>
<CAPTION>
TCW GALILEO TCW GALILEO TCW GALILEO TCW GALILEO LONG-TERM
HIGH GRADE HIGH YIELD MORTGAGE BACKED MORTGAGE BACKED
FIXED INCOME FUND BOND FUND SECURITIES FUND SECURITIES FUND
----------------- ------------- --------------- ---------------------
<S> <C> <C> <C> <C>
ASSETS
Investments, at Value /(1)/ $ 40,476 $ 102,879 $ 90,905 $ 69,104
Receivables for Securities Sold 2,563 - 158 3
Accrued Interest and Dividends Receivable 501 2,348 651 431
Deferred Organization Costs 28 28 28 31
------------ ------------ ------------ -------------
Total Assets 43,568 105,255 91,742 $ 69,569
------------ ------------ ------------ -------------
LIABILITIES
Payable for Fund Shares Redeemed 31 - - -
Payables for Securities Purchased 4,524 840 - -
Repurchase of Investments Under Dollar Roll Agreements 2,090 - - -
Management Fees and Other Accrued Expenses 90 89 114 54
------------ ------------ ------------ -------------
Total Liabilities 6,735 929 114 54
------------ ------------ ------------ -------------
NET ASSETS $ 36,833 $ 104,326 $ 91,628 $ 69,515
============ ============ ============ =============
NET ASSETS CONSIST OF:
Paid-in Capital $ 40,824 $ 106,650 $ 101,930 $ 73,403
Undistributed Net Realized Loss on Investments
and Foreign Currency Transactions (3,799) (650) (3,188) (872)
Unrealized Appreciation (Depreciation) on Investments
and Foreign Currency Translations 155 (1,543) (7,394) (3,166)
Undistributed (Overdistributed) Net Investment Income (347) (131) 280 150
------------ ------------ ------------ -------------
NET ASSETS $ 36,833 $ 104,326 $ 91,628 $ 69,515
============ ============ ============ =============
CAPITAL SHARES OUTSTANDING 4,072,214 10,933,543 9,732,327 7,654,321
============ ============ ============ =============
NET ASSET VALUE PER SHARE $ 9.04 $ 9.54 $ 9.41 $ 9.08
============ ============ ============ =============
</TABLE>
51
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) (CONTINUED)
- - ------------------------------------------------------------
<TABLE>
<CAPTION>
TCW TCW GALILEO
GALILEO CORE EARNINGS MOMENTUM
EQUITY FUND FUND
-------------- -----------------
<S> <C> <C>
ASSETS
Investments, at Value /(1)/ $ 156,469 $ 49,024
Receivables for Securities Sold 1,477 1,683
Receivables for Fund Shares Sold - -
Accrued Interest and Dividends Receivable 172 52
Deferred Organization Costs 28 3
------------- ------------
Total Assets 158,146 50,762
------------- ------------
LIABILITIES
Payable for Fund Shares Redeemed - -
Payables for Securities Purchased 1,444 703
Management Fees and Other Accrued Expenses 131 64
------------- ------------
Total Liabilities 1,575 767
------------- ------------
NET ASSETS $ 156,571 $ 49,995
============= ============
NET ASSETS CONSIST OF:
Paid-in Capital $ 147,161 $ 47,281
Undistributed Net Realized Gain (Loss) on Investments
and Foreign Currency Transactions (11,254) (1,116)
Unrealized Appreciation (Depreciation) on Investments
and Foreign Currency Translations 20,318 3,845
Undistributed Net Investment Income (Loss) 346 (15)
------------- ------------
NET ASSETS $ 156,571 $ 49,995
============= ============
CAPITAL SHARES OUTSTANDING 13,073,052 4,934,273
============= ============
NET ASSET VALUE PER SHARE $ 11.98 $ 10.13
============= ============
</TABLE>
(1) The identified cost for the TCW Galileo Core Equity Fund, the TCW Galileo
Earnings Momentum Fund, the TCW Galileo Small Cap Growth Fund, the TCW
Galileo Asia Pacific Equity Fund, the TCW Galileo Emerging Markets Fund and
the TCW Galileo Latin America Equity Fund at April 30, 1995 was $136,151,
$45,179, $29,147, $41,263, $54,498, $56,173, respectively.
See accompanying Notes to Financial Statements.
52
<PAGE>
TCW GALILEO FUNDS, INC.
Dollar Amounts in Thousands
(Except per Share Amounts)
April 30, 1995
<TABLE>
<CAPTION>
TCW GALILEO TCW GALILEO TCW GALILEO TCW GALILEO
SMALL CAP ASIA PACIFIC EMERGING MARKETS LATIN AMERICA
GROWTH FUND EQUITY FUND FUND EQUITY FUND
----------- ------------ ---------------- -------------
<S> <C> <C> <C> <C>
ASSETS
Investments, at Value /(1)/ $ 36,861 $ 39,813 $ 49,414 $ 46,758
Receivables for Securities Sold 555 522 454 129
Receivables for Fund Shares Sold - 35 - 115
Accrued Interest and Dividends Receivable 11 150 164 41
Deferred Organization Costs 8 8 8 28
----------- ----------- ----------- -----------
Total Assets 37,435 40,528 50,040 47,071
----------- ----------- ----------- -----------
LIABILITIES
Payable for Fund Shares Redeemed 403 6 101 15
Payables for Securities Purchased 48 449 143 1,189
Management Fees and Other Accrued Expenses 62 106 112 102
----------- ----------- ----------- -----------
Total Liabilities 513 561 356 1,306
----------- ----------- ----------- -----------
NET ASSETS $ 36,922 $ 39,967 $ 49,684 $ 45,765
=========== =========== =========== ===========
NET ASSETS CONSIST OF:
Paid-in Capital $ 26,654 $ 40,907 $ 61,439 $ 78,743
Undistributed Net Realized Gain (Loss) on Investments
and Foreign Currency Transactions 2,833 379 (6,706) (23,708)
Unrealized Appreciation (Depreciation) on Investments
and Foreign Currency Translations 7,714 (1,450) (5,084) (9,415)
Undistributed Net Investment Income (Loss) (279) 131 35 145
----------- ----------- ----------- -----------
NET ASSETS $ 36,922 $ 39,967 $ 49,684 $ 45,765
=========== =========== =========== ===========
CAPITAL SHARES OUTSTANDING 3,571,201 4,953,286 6,857,535 5,508,702
=========== =========== =========== ===========
NET ASSET VALUE PER SHARE $ 10.34 $ 8.07 $ 7.25 $ 8.31
=========== =========== =========== ===========
</TABLE>
53
<PAGE>
STATEMENTS OF OPERATIONS (UNAUDITED)
- - ------------------------------------
<TABLE>
<CAPTION>
TCW GALILEO
MONEY MARKET
FUND /(1)/
-----------
<S> <C>
INVESTMENT INCOME
Income:
Interest $ 4,156
-----------
Expenses:
Management Fees 180
Custodian Fees 26
Registration Fees 9
Transfer Agent Fees 21
Directors Fees and Expenses 5
Audit and Tax Fees 9
Accounting Service Fees 72
Legal Fees 2
Amortization of Deferred Organization Costs -
Other 10
-----------
Total Expenses 334
Less Expenses Borne by Investment Adviser 69
-----------
Net Expenses 265
-----------
Net Investment Income 3,891
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY
Net Realized Loss on Investments and
Foreign Currency Transactions During the Period -
Change in Unrealized Appreciation (Depreciation)
on Investments and Foreign Currency
Translations During the Period -
-----------
Net Realized and Unrealized Gain (Loss) on Investments
and Foreign Currency During the Period -
-----------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 3,891
===========
</TABLE>
(1) For the six months ended April 30, 1995.
See accompanying Notes to Financial Statements.
54
<PAGE>
TCW GALILEO FUNDS, INC.
Dollar Amounts in Thousands
<TABLE>
<CAPTION>
TCW GALILEO TCW GALILEO TCW GALILEO TCW GALILEO LONG-TERM
HIGH GRADE FIXED HIGH YIELD MORTGAGE BACKED MORTGAGE BACKED
INCOME FUND/(1)/ BOND FUND/(1)/ SECURITIES FUND/(1)/ SECURITIES FUND/(1)/
---------------- -------------- -------------------- ---------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Interest $ 1,315 $ 4,807 $ 4,789 $ 3,135
-------- -------- -------- --------
Expenses:
Management Fees 74 342 274 163
Custodian Fees 4 6 12 6
Registration Fees 4 3 (19) 7
Transfer Agent Fees 15 15 22 15
Directors Fees and Expenses 5 5 5 5
Audit and Tax Fees 9 9 11 10
Accounting Service Fees 17 17 17 17
Legal Fees 1 3 7 1
Amortization of Deferred Organization Costs 5 5 5 5
Other 3 5 2 1
-------- -------- -------- --------
Total Expenses 137 410 336 230
Less Expenses Borne by Investment Adviser 15 17 21 5
-------- -------- -------- --------
Net Expenses 122 393 315 225
-------- -------- -------- --------
Net Investment Income 1,193 4,414 4,474 2,910
-------- -------- -------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY
Net Realized Loss on Investments and
Foreign Currency Transactions During the Period (2,261) (434) (2,742) (841)
Change in Unrealized Appreciation (Depreciation)
on Investments and Foreign Currency
Translations During the Period 2,768 2,589 2,853 2,455
-------- -------- -------- --------
Net Realized and Unrealized Gain (Loss) on Investments
and Foreign Currency During the Period 507 2,155 111 1,614
-------- -------- -------- --------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 1,700 $ 6,569 $ 4,585 $ 4,524
======== ======== ======== ========
</TABLE>
55
<PAGE>
STATEMENTS OF OPERATIONS (UNAUDITED) (CONTINUED)
- - -----------------------------------------------
<TABLE>
<CAPTION>
TCW TCW GALILEO
GALILEO CORE EARNINGS MOMENTUM
EQUITY FUND /(1)/ FUND /(1)/
----------------- -----------------
<S> <C> <C>
INVESTMENT INCOME
Income:
Dividends $ 953 $ 76
Interest 160 181
--------- --------
Total 1,113 257
--------- --------
Expenses:
Management Fees 518 219
Custodian Fees 7 8
Registration Fees 15 5
Transfer Agent Fees 20 9
Directors Fees and Expenses 5 5
Audit and Tax Fees 9 9
Accounting Service Fees 17 17
Legal Fees 3 2
Amortization of Deferred Organization Costs 5 -
Other 5 3
--------- --------
Total Expenses 604 277
Less Expenses Borne by Investment Adviser - 27
--------- --------
Net Expenses 604 250
--------- --------
Net Investment Income (Loss) 509 7
--------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCY
Net Realized Gain (Loss) on Investments and
Foreign Currency Transactions During the Period (7,993) (1,116)
Change in Unrealized Appreciation (Depreciation) on
Investments and Foreign Currency Translations
During the Period 13,705 (1,674)
--------- --------
Net Realized and Unrealized Gain (Loss) on Investments
and Foreign Currency During the Period 5,712 558
--------- --------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 6,221 $ 565
========= ========
</TABLE>
(1) For the six months ended April 30, 1995.
See accompanying Notes to Financial Statements.
56
<PAGE>
TCW GALILEO FUNDS, INC.
Dollar Amounts in Thousands
<TABLE>
<CAPTION>
TCW GALILEO TCW GALILEO TCW GALILEO TCW GALILEO
SMALL CAP ASIA PACIFIC EMERGING MARKETS LATIN AMERICA
GROWTH FUND /(1)/ EQUITY FUND /(1)/ FUND /(1)/ EQUITY FUND /(1)/
----------------- ----------------- ---------------- -----------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Dividends $ 19 $ 260 $ 353 $ 502
Interest 71 112 153 133
------- -------- --------- ---------
Total 90 372 506 635
------- -------- --------- ---------
Expenses:
Management Fees 188 213 275 381
Custodian Fees 9 78 112 116
Registration Fees 5 7 7 28
Transfer Agent Fees 9 9 9 21
Directors Fees and Expenses 5 5 5 5
Audit and Tax Fees 9 9 9 9
Accounting Service Fees 17 17 17 17
Legal Fees 2 2 2 4
Amortization of Deferred Organization Costs 1 1 1 5
Other 2 3 3 12
------- -------- --------- ---------
Total Expenses 247 344 440 598
Less Expenses Borne by Investment Adviser 15 17 - -
------- -------- --------- ---------
Net Expenses 232 327 440 598
------- -------- --------- ---------
Net Investment Income (Loss) (142) 45 66 37
------- -------- --------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCY
Net Realized Gain (Loss) on Investments and
Foreign Currency Transactions During the Period 2,867 478 (5,929) (23,506)
Change in Unrealized Appreciation (Depreciation) on
Investments and Foreign Currency Translations
During the Period (138) (10,214) (12,637) (23,298)
------- -------- --------- ---------
Net Realized and Unrealized Gain (Loss) on Investments
and Foreign Currency During the Period 2,729 (9,736) (18,566) (46,804)
------- -------- --------- ---------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 2,587 $ (9,691) $ (18,500) $ (46,767)
======= ======== ========= =========
</TABLE>
57
<PAGE>
TCW GALILEO MONEY MARKET FUND
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- - -----------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED Ten Months Ended
APRIL 30, 1995 October 31, 1994
(UNAUDITED) (Note 1)
---------------- ----------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 3,891 $ 2,385
----------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (3,891) (2,385)
----------- -------------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(420,464,890 shares in 1995 and 453,783,500 shares in 1994) 420,465 453,784
Proceeds from Shares Issued upon Reinvestment of Dividends
(1,746,404 shares in 1995 and 1,784,433 shares in 1994) 1,746 1,784
Cost of Shares Redeemed
(444,445,167 shares in 1995 and 412,380,355 shares in 1994) (444,445) (412,380)
----------- -------------
Increase (Decrease) in Net Assets Resulting from
Capital Share Transactions (22,234) 43,188
----------- -------------
Increase (Decrease) in Net Assets (22,234) 43,188
NET ASSETS
Beginning of Period 124,392 81,204
----------- -------------
End of Period $ 102,158 $ 124,392
=========== =============
</TABLE>
See accompanying Notes to Financial Statements.
58
<PAGE>
TCW GALILEO FUNDS, INC.
TCW GALILEO HIGH GRADE FIXED INCOME FUND
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- - -----------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED Ten Months Ended
APRIL 30, 1995 October 31, 1994
(UNAUDITED) (Note 1)
---------------- ----------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 1,193 $ 2,155
Net Realized Loss on Investments and
Foreign Currency Transactions (2,261) (2,038)
Change in Unrealized Appreciation (Depreciation) on
Investments and Foreign Currency Translations 2,768 (2,883)
------------- -------------
Increase (Decrease) in Net Assets Resulting from Operations 1,700 (2,766)
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (1,408) (1,718)
------------- -------------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(1,367,744 shares in 1995 and 3,963,230 shares in 1994) 12,124 37,183
Proceeds from Shares Issued upon Reinvestment of Dividends
(119,425 shares in 1995 and 163,910 shares in 1994) 1,061 1,564
Cost of Shares Redeemed
(3,024,531 shares in 1995 and 1,837,337 shares in 1994) (26,797) (17,438)
------------- -------------
Increase (Decrease) in Net Assets Resulting from
Capital Share Transactions (13,612) 21,309
------------- -------------
Increase (Decrease) in Net Assets (13,320) 16,825
NET ASSETS
Beginning of Period 50,153 33,328
------------- -------------
End of Period $ 36,833 $ 50,153
============= =============
</TABLE>
See accompanying Notes to Financial Statements.
59
<PAGE>
TCW GALILEO HIGH YIELD BOND FUND
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- - -----------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED Ten Months Ended
APRIL 30, 1995 October 31, 1994
(UNAUDITED) (Note 1)
---------------- ----------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 4,414 $ 6,285
Net Realized Loss on Investments (434) (216)
Change in Unrealized Appreciation (Depreciation)
on Investments 2,589 (6,353)
----------- ----------
Increase (Decrease) in Net Assets Resulting from Operations 6,569 (284)
----------- ----------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (5,196) (5,497)
Distributions in Excess of Net Investment Income (131) -
----------- ----------
Total Distributions to Shareholders (5,327) (5,497)
----------- ----------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(3,111,828 shares in 1995 and 3,745,877 shares in 1994) 29,181 36,528
Proceeds from Shares Issued upon Reinvestment of Dividends
(420,542 shares in 1995 and 589,062 shares in 1994) 3,929 5,762
Cost of Shares Redeemed
(2,201,392 shares in 1995 and 2,016,091 shares in 1994) (20,603) (19,669)
----------- ----------
Increase in Net Assets Resulting from
Capital Share Transactions 12,507 22,621
----------- ----------
Increase in Net Assets 13,749 16,840
NET ASSETS
Beginning of Period 90,577 73,737
----------- ----------
End of Period $ 104,326 $ 90,577
=========== ==========
</TABLE>
See accompanying Notes to Financial Statements.
60
<PAGE>
TCW GALILEO FUNDS, INC.
TCW GALILEO MORTGAGE BACKED SECURITIES FUND
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- - -----------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED Ten Months Ended
APRIL 30, 1995 October 31, 1994
(UNAUDITED) (Note 1)
---------------- ----------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 4,474 $ 7,221
Net Realized Loss on Investments (2,742) (446)
Change in Unrealized Appreciation (Depreciation)
on Investments 2,853 (7,605)
------------ ------------
Increase (Decrease) in Net Assets Resulting from Operations 4,585 (830)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (4,739) (6,642)
------------ ------------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(326,119 shares in 1995 and 18,907,101 shares in 1994) 3,058 183,889
Proceeds from Shares Issued upon Reinvestment of Dividends
(483,176 shares in 1995 and 782,691 shares in 1994) 4,508 7,544
Cost of Shares Redeemed
(5,418,441 shares in 1995 and 20,325,505 shares in 1994) (50,732) (196,679)
------------ ------------
Decrease in Net Assets Resulting from
Capital Share Transactions (43,166) (5,246)
------------ ------------
Decrease in Net Assets (43,320) (12,718)
NET ASSETS
Beginning of Period 134,948 147,666
------------ ------------
End of Period $ 91,628 $ 134,948
============ ============
</TABLE>
See accompanying Notes to Financial Statements.
61
<PAGE>
TCW GALILEO LONG-TERM MORTGAGE BACKED SECURITIES FUND
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- - -----------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED Ten Months Ended
APRIL 30, 1995 October 31, 1994
(UNAUDITED) (Note 1)
---------------- ----------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 2,910 $ 2,931
Net Realized Loss on Investments (841) (44)
Change in Unrealized Appreciation (Depreciation)
on Investments 2,455 (5,713)
------------ -------------
Increase (Decrease) in Net Assets Resulting from Operations 4,524 (2,826)
------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (3,484) (2,207)
------------ -------------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(616,819 shares in 1995 and 5,158,471 shares in 1994) 5,425 48,322
Proceeds from Shares Issued upon Reinvestment of Dividends
(387,773 shares in 1995 and 229,472 shares in 1994) 3,437 2,152
Cost of Shares Redeemed
(797,114 shares in 1995 and 445,928 shares in 1994) (7,019) (4,024)
------------ -------------
Increase in Net Assets Resulting from
Capital Share Transactions 1,844 46,450
------------ -------------
Increase in Net Assets 2,883 41,417
NET ASSETS
Beginning of Period 66,632 25,215
------------ -------------
End of Period $ 69,515 $ 66,632
============ =============
</TABLE>
See accompanying Notes to Financial Statements.
62
<PAGE>
TCW GALILEO FUNDS, INC.
TCW GALILEO CORE EQUITY FUND
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- - -----------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED Ten Months Ended
APRIL 30, 1995 October 31, 1994
(UNAUDITED) (Note 1)
---------------- ----------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 509 $ 383
Net Realized Loss on Investments (7,993) (2,535)
Change in Unrealized Appreciation (Depreciation)
on Investments 13,705 (964)
------------- -------------
Increase (Decrease) in Net Assets Resulting from Operations 6,221 (3,116)
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (543) -
------------- -------------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(4,863,973 shares in 1995 and 7,946,014 shares in 1994) 54,059 93,851
Proceeds from Shares Issued upon Reinvestment of Dividends
(40,364 shares in 1995 and 8,694 shares in 1994) 437 102
Cost of Shares Redeemed
(3,601,371 shares in 1995 and 914,855 shares in 1994) (39,725) (10,600)
------------- -------------
Increase in Net Assets Resulting from
Capital Share Transactions 14,771 83,353
------------- -------------
Increase in Net Assets 20,449 80,237
NET ASSETS
Beginning of Period 136,122 55,885
------------- -------------
End of Period $ 156,571 $ 136,122
============= =============
</TABLE>
See accompanying Notes to Financial Statements.
63
<PAGE>
TCW GALILEO EARNINGS MOMENTUM FUND
Dollar Amounts in Thousands
STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
- - ----------------------------------------------
<TABLE>
<CAPTION>
November 1, 1994
(Commencement of
Operations) through
April 30, 1995
-------------------
<S> <C>
OPERATIONS
Net Investment Income $ 7
Net Realized Loss on Investments (1,116)
Change in Unrealized Appreciation on Investments 1,674
-------------
Increase in Net Assets Resulting from Operations 565
-------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (7)
Distributions in Excess of Net Investment Income (15)
-------------
Total Distributions to Shareholders (22)
-------------
CAPITAL SHARE TRANSACTIONS
Shares Issued upon Exchange of Limited Partnership
Interests (4,059,985 shares) (Note 1) 40,600
Proceeds from Shares Sold (2,005,079 shares) 19,741
Proceeds from Shares Issued upon
Reinvestment of Dividends (2,265 shares) 21
Cost of Shares Redeemed (1,133,056 shares) (10,910)
-------------
Increase in Net Assets Resulting from
Capital Share Transactions 49,452
-------------
Increase in Net Assets 49,995
NET ASSETS
Beginning of Period -
-------------
End of Period $ 49,995
=============
</TABLE>
See accompanying Notes to Financial Statements.
64
<PAGE>
TCW GALILEO FUNDS, INC.
TCW GALILEO SMALL CAP GROWTH FUND
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- - -----------------------------------
<TABLE>
<CAPTION>
March 1, 1994
SIX MONTHS ENDED (Commencement of
APRIL 30, 1995 Operations) through
(UNAUDITED) October 31, 1994
---------------- -------------------
<S> <C> <C>
OPERATIONS
Net Investment Loss $ (142) $ (137)
Net Realized Gain (Loss) on Investments 2,867 (34)
Change in Unrealized Depreciation on Investments (138) (1,225)
------------- -------------
Increase (Decrease) in Net Assets Resulting from Operations 2,587 (1,396)
------------- -------------
CAPITAL SHARE TRANSACTIONS
Shares Issued upon Exchange of
Limited Partnership Interests
(3,557,120 shares in 1994) (Note 1) - 35,571
Proceeds from Shares Sold
(570,824 shares in 1995 and 2,394,053 shares in 1994) 5,448 21,442
Cost of Shares Redeemed
(2,440,146 shares in 1995 and 510,650 shares in 1994) (22,202) (4,528)
------------- -------------
Increase (Decrease) in Net Assets Resulting from
Capital Share Transactions (16,754) 52,485
------------- -------------
Increase (Decrease) in Net Assets (14,167) 51,089
NET ASSETS
Beginning of Period 51,089 -
------------- -------------
End of Period $ 36,922 $ 51,089
============= =============
</TABLE>
65
<PAGE>
TCW GALILEO ASIA PACIFIC EQUITY FUND
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- - -----------------------------------
<TABLE>
<CAPTION>
March 1, 1994
SIX MONTHS ENDED (Commencement of
APRIL 30, 1995 Operations) through
(UNAUDITED) October 31, 1994
---------------- -------------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 45 $ 144
Net Realized Gain on Investments and
Foreign Currency Transactions 478 1,288
Change in Unrealized Depreciation on Investments
and Foreign Currency Translations (10,214) (49)
------------ ------------
Increase (Decrease) in Net Assets Resulting from Operations (9,691) 1,383
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (58) -
Distributions from Realized Gains (1,387) -
------------ ------------
Total Distributions to Shareholders (1,445) -
------------ ------------
CAPITAL SHARE TRANSACTIONS
Shares Issued upon Exchange of
Limited Partnership Interests
(4,449,194 shares in 1994) (Note 1) - 44,492
Proceeds from Shares Sold
(836,037 shares in 1995 and 1,329,385 shares in 1994) 7,116 12,575
Proceeds from Shares Issued Upon Reinvestment of Dividends
(165,227 shares) 1,401 -
Cost of Shares Redeemed
(1,349,311 shares in 1995 and 477,246 shares in 1994) (11,433) (4,431)
------------ ------------
Increase (Decrease) in Net Assets Resulting from
Capital Share Transactions (2,916) 52,636
------------ ------------
Increase (Decrease) in Net Assets (14,052) 54,019
NET ASSETS
Beginning of Period 54,019 -
------------ ------------
End of Period $ 39,967 $ 54,019
============ ============
</TABLE>
See accompanying Notes to Financial Statements.
66
<PAGE>
TCW GALILEO FUNDS, INC.
TCW GALILEO EMERGING MARKETS FUND
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- - -----------------------------------
<TABLE>
<CAPTION>
March 1, 1994
SIX MONTHS ENDED (Commencement of
APRIL 30, 1995 Operations) through
(UNAUDITED) October 31, 1994
---------------- -------------------
<S> <C> <C>
OPERATIONS
Net Investment Income (Loss) $ 66 $ (31)
Net Realized Loss on Investments and
Foreign Currency Transactions (5,929) (777)
Change in Unrealized Appreciation (Depreciation) on
Investments and Foreign Currency Translations (12,637) 2,816
------------ ------------
Increase (Decrease) in Net Assets Resulting from Operations (18,500) 2,008
------------ ------------
CAPITAL SHARE TRANSACTIONS
Shares Issued upon Exchange of
Limited Partnership Interests
(3,721,358 shares in 1994) (Note 1) - 37,213
Proceeds from Shares Sold
(1,133,623 shares in 1995 and 4,382,042 shares in 1994) 9,517 39,241
Cost of Shares Redeemed
(1,494,339 shares in 1995 and 885,149 shares in 1994) (11,545) (8,250)
------------ ------------
Increase (Decrease) in Net Assets Resulting from
Capital Share Transactions (2,028) 68,204
------------ ------------
Increase (Decrease) in Net Assets (20,528) 70,212
NET ASSETS
Beginning of Period 70,212 -
------------ ------------
End of Period $ 49,684 $ 70,212
============ ============
</TABLE>
See accompanying Notes to Financial Statements.
67
<PAGE>
TCW GALILEO LATIN AMERICA EQUITY FUND
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- - -----------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED Ten Months Ended
APRIL 30, 1995 October 31, 1994
(UNAUDITED) (Note 1)
---------------- ----------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 37 $ 108
Net Realized Gain (Loss) on Investments and
Foreign Currency Transactions (23,506) 9,404
Change in Unrealized Depreciation on Investments
and Foreign Currency Translations (23,298) (11,092)
----------- -----------
Decrease in Net Assets Resulting from Operations (46,767) (1,580)
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Realized Gains (9,447) -
----------- -----------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(415,877 shares in 1995 and 3,184,275 shares in 1994) 3,869 46,812
Proceeds from Shares Issued upon Reinvestment of Dividends
(867,090 shares in 1995 and 488,821 shares in 1994) 8,922 7,235
Cost of Shares Redeemed
(3,955,834 shares in 1995 and 1,443,344 shares in 1994) (33,422) (19,767)
----------- -----------
Increase (Decrease) in Net Assets Resulting from
Capital Share Transactions (20,631) 34,280
----------- -----------
Increase (Decrease) in Net Assets (76,845) 32,700
NET ASSETS
Beginning of Period 122,610 89,910
----------- -----------
End of Period $ 45,765 $ 122,610
=========== ===========
</TABLE>
See accompanying Notes to Financial Statements.
68
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1995
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- - -----------------------------------------
NOTE 1 - ORGANIZATION
TCW Galileo Funds, Inc., a Maryland corporation (the "Company"), is an open-end
management investment company registered under the Investment Company Act of
1940, as amended, that currently offers a selection of eleven no-load mutual
funds known as the TCW Galileo Funds (the "Funds"). TCW Funds Management, Inc.
(the "Adviser") is the investment adviser to the Funds, as well as the
administrator of their day-to-day operations. The Adviser is a registered
investment adviser under the Investment Advisers Act of 1940. Each Fund has
distinct investment objectives and policies. There is one diversified money
market fund (the TCW Galileo Money Market Fund), four diversified bond funds
(the TCW Galileo High Grade Fixed Income Fund, the TCW Galileo High Yield Bond
Fund, the TCW Galileo Mortgage Backed Securities Fund and the TCW Galileo Long-
Term Mortgage Backed Securities Fund) and six non-diversified equity funds (the
TCW Galileo Core Equity Fund, the TCW Galileo Earnings Momentum Fund, the TCW
Galileo Small Cap Growth Fund, the TCW Galileo Asia Pacific Equity Fund, the TCW
Galileo Emerging Markets Fund, and the TCW Galileo Latin America Equity Fund)
currently offered by the Company. The TCW Galileo Money Market Fund became part
of the Galileo fund series on May 23, 1994, when the net assets of the former
TCW Money Market Portfolio were contributed to TCW Galileo Funds, Inc. by TCW
Investment Funds, Inc. The former TCW Money Market Portfolio originally
commenced operations on July 14, 1988. The TCW Galileo Earnings Momentum Fund
commenced operations on November 1, 1994, resulting from the exchange of limited
partnership interests in a s eparate limited partnership. The assets and
liabilities were transferred at historical cost from the limited partnership to
the Fund on November 1, 1994 and the fair value of which was exchanged for
shares of common stock of each Fund. The transfer was treated as a tax-free
exchange in accordance with the Internal Revenue Code. Except for the TCW
Galileo Long-Term Mortgage Backed Securities Fund, all the other Funds were
formed from the tax-free exchange of limited partnership interests in separate
limited partnerships.
The primary investment objective of each Fund follows: (1) the TCW Galileo Money
Market Fund seeks current income, preservation of capital and liquidity by
investing in short-term money market securities; (2) the TCW Galileo High Grade
Fixed Income Fund seeks capital appreciation and income through investment
principally in high grade fixed income securities emphasizing high quality and
liquid investments; (3) the TCW Galileo High Yield Bond Fund seeks high current
income through investment principally in high yield fixed income securities; (4)
the TCW Galileo Mortgage Backed Securities Fund seeks income by investing
primarily in short-term mortgage backed securities; (5) the TCW Galileo Long-
Term Mortgage Backed Securities Fund seeks income by investing primarily in
long-term mortgage backed securities; (6) the TCW Galileo Core Equity Fund
emphasizes capital appreciation and preservation with focus on long-term
results; (7) the TCW Galileo Earnings Momentum Fund seeks capital appreciation
through investment primarily in publicly-traded equity securities of companies
experiencing or expected to experience accelerating earnings growth; (8) the TCW
Galileo Small Cap Growth Fund seeks long-term capital appreciation, primarily by
investing in publicly-traded equity securities of smaller capitalization
companies; (9) the TCW Galileo Asia Pacific Equity Fund seeks long-term capital
appreciation, primarily by investing in equity securities of companies in the
Asia Pacific region; (10) the TCW Galileo Emerging Markets Fund seeks long-term
capital appreciation by investing in equity securities of companies in emerging
market countries around the world; and (11) the TCW Galileo Latin America Equity
Fund seeks long-term capital appreciation, primarily by investing in Latin
American equity securities.
Effective October 31, 1994, the fiscal year end of each Fund was changed from
December 31 to October 31. As a result, the 1994 financial statement information
covers less than a full twelve month period.
69
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- - -----------------------------------------------------
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
PRINCIPLES OF ACCOUNTING: The Funds use the accrual method of accounting for
financial reporting purposes.
SECURITY VALUATIONS: The value of securities held in the TCW Galileo Money
Market Fund is determined by using the amortized cost method applied to each
individual security unless, due to special circumstances, the use of such a
method would result in a valuation that does not approximate fair market value.
Equity fund securities listed or traded on the New York, American or other stock
exchanges are valued at the latest sale price on that exchange (if there were no
sales that day, the security is valued at the latest bid price). All other
securities, including the bond fund securities, for which over-the-counter
market quotations are readily available, are valued at the latest bid price
prior to the time of valuation. Securities for which market quotations are not
readily available, including circumstances under which it is determined by the
Adviser that sale or bid prices are not reflective of a security's market value,
are valued at their fair value as determined in good faith under procedures
established by and under the general supervision of the Company's Board of
Directors.
Short-term debt securities with remaining maturities of 60 days or less at the
time of purchase are valued at amortized cost. Other short-term debt securities
are valued on a marked-to-market basis until such time as they reach a remaining
maturity of 60 days, whereupon they will be valued at amortized value using
their value on the 61st day prior to maturity.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME: Security transactions are
recorded as of the trade date. Dividend income is recorded on the ex-dividend
date or at the time the relevant ex-dividend date and amounts become known.
Interest income is recorded on the accrual basis. Original issue discount is
amortized as interest income using a constant yield to maturity. Discounts on
securities purchased are recognized as interest income at the time the security
is sold using a constant yield to maturity. Premiums on securities purchased are
not amortized, except for mortgage backed obligations for which amortization has
been elected as allowed by federal income tax regulations. Realized and
unrealized gains and losses on investments are recorded on the basis of specific
identification.
FOREIGN CURRENCY TRANSLATION: The books and records of each Fund are maintained
in U.S. dollars as follows: (1) the foreign currency market value of investment
securities, and other assets and liabilities stated in foreign currencies, are
translated using the daily spot rate; and (2) purchases, sales, income and
expenses are translated at the rate of exchange prevailing on the respective
dates of such transactions. The resultant exchange gains and losses are included
in the Statements of Operations with the related income. Pursuant to U.S.
federal income tax regulations, certain foreign exchange gains and losses
included in realized and unrealized gains and losses are included in, or are a
reduction of, ordinary income for federal income tax purposes. It is not
practicable to separately identify that portion of gains and losses of the Funds
that arise as a result of changes in the exchange rates from the fluctuations
that arise from changes in market prices of investments during the period.
FORWARD FOREIGN CURRENCY CONTRACTS: Certain Funds may enter into forward foreign
currency contracts as a hedge against fluctuations in foreign exchange rates.
Forward foreign currency contracts are marked-to-market daily and the change in
market value is recorded by the Fund as an unrealized gain or loss. When the
contract is closed or delivery is taken, the Fund records a realized gain or
loss equal to the difference between the value of the contract at the time it
was opened and the value at the time it was closed. Risks may arise upon
entering into these contracts from the potential inability of couterparties to
meet the terms of their contracts and from unanticipated movements in the value
of the foreign currency relative to the U.S. dollar.
DOLLAR ROLL TRANSACTIONS: The Funds may enter into dollar roll transactions with
financial institutions to take advantage of opportunities in the mortgage backed
securities market. A dollar roll transaction involves a simultaneous sale by the
Fund of securities that it holds with an agreement to repurchase substantially
similar securities at an agreed upon price and date. These transactions are
accounted for as financing transactions as opposed to sales and purchases. The
differential between the sale price and the repurchase price is recorded as
deferred income and recognized between the settlement dates of the sale and
repurchase. During the period between the sale and repurchase, the Fund will not
be entitled to receive interest and principal payments on the securities sold.
70
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1995
REPURCHASE AGREEMENTS: The Funds may invest in repurchase agreements secured by
U.S. Government obligations and in other securities. Securities pledged as
collateral for repurchase agreements are held by the Funds' custodian bank until
maturity of the repurchase agreements. Provisions of the agreements ensure that
the market value of the collateral is sufficient in the event of default;
however, in the event of default or bankruptcy by the other party to the
agreements, realization and/or retention of the collateral may be subject to
legal proceedings.
OPTIONS: Premiums received from call options written are recorded as a
liability. The amount of the liability is subsequently adjusted to reflect the
current market value of the option written. If the option expires unexercised,
premiums received are realized as a gain at expiration date. If the position is
closed prior to expiration, a gain or loss is realized based on premiums
received, less the cost to close the option. When an option is exercised,
premiums received are added to the proceeds from the sale of the underlying
securities and a gain or loss is realized.
Call options purchased are accounted for in the same manner as portfolio
securities. The cost of securities acquired through the exercise of call options
is increased by premiums paid.
DEFERRED ORGANIZATION COSTS: For those Funds which commenced operations during
1993, organization costs of $50,000 per Fund have been deferred and are being
amortized on a straight line basis over a five-year period from the commencement
of operations of each Fund. Organization costs of $10,000 per Fund for the TCW
Galileo Small Cap Growth Fund, the TCW Galileo Asia Pacific Equity Fund and the
TCW Galileo Emerging Markets Fund have been deferred and are also being
amortized on a straight line basis over a five-year period from the commencement
of operations of each Fund. Organizational costs of approximately $3,800 for the
TCW Galileo Earnings Momentum Fund have been deferred and are also being
amortized on a straight line basis over a five year period from the commencement
of operations. No additional organization costs were incurred in connection with
the exchange. Upon formation of the Funds, the Company sold and issued to the
Adviser 10,006 shares of common stock (one share each of the TCW Galileo Money
Market Fund, the TCW Galileo Small Cap Growth Fund, the TCW Galileo Earnings
Momentum Fund, the TCW Galileo Asia Pacific Equity Fund, the TCW Galileo
Emerging Markets Fund, and the TCW Galileo Long-Term Mortgage Backed Securities
Fund, and 2,000 shares each of the other five Funds, collectively the "Initial
Shares"). In the event the Adviser redeems any of its Initial Shares from one or
more of the Funds prior to the end of the five-year period, the proceeds of the
redemption payable in respect of such shares will be reduced by any unamortized
organization costs in the same ratio as the number of Initial Shares being
redeemed bears to the number of Initial Shares outstanding at the time of the
redemption.
EXPENSE ALLOCATION: Common expenses incurred by the Company are allocated among
the Funds based upon the ratio of net assets of each Fund to the combined net
assets of all the Funds. All other expenses are charged to each Fund as incurred
on a specific identification basis.
NET ASSET VALUE: The Net Asset Value of each Fund's shares is determined by
dividing the net assets of the Fund by the number of issued and outstanding
shares on each business day as of 9:00 A.M. Pacific Time for the TCW Galileo
Money Market Fund and as of 1:00 P.M. Pacific Time for the other Funds.
DIVIDENDS AND DISTRIBUTIONS: Dividends from net investment income of the TCW
Galileo Money Market Fund are declared each business day. It is the policy of
the equity funds to declare and pay, or reinvest, dividends from net investment
income annually and the bond funds to declare and pay, or reinvest, dividends
from net investment income monthly. Distribution of any net long-term and net
short-term capital gains earned by a Fund will be distributed no less frequently
than annually.
Income and capital gain distributions are determined in accordance with income
tax regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments for foreign currency
transactions, market discount, losses deferred to wash sales and excise tax
regulations. Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may affect
net investment income per share. Undistributed net investment income may include
temporary book and tax basis differences which will reverse in a subsequent
period. Any taxable income or gain remaining at fiscal year end is distributed
in the following year.
71
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- - -----------------------------------------------------
NOTE 3 - FEDERAL INCOME TAXES
It is the policy of each Fund to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute all
of its net taxable income, including any net realized gain on investments, to
its shareholders. Therefore, no federal income tax provision is required. At
April 30, 1995, net unrealized appreciation (depreciation) on investments for
federal income tax purposes was as follows:
<TABLE>
<CAPTION>
TCW TCW TCW TCW
GALILEO HIGH GALILEO GALILEO GALILEO LONG-TERM TCW
GRADE FIXED HIGH YIELD MORTGAGE BACKED MORTGAGE BACKED GALILEO CORE
INCOME FUND BOND FUND SECURITIES FUND SECURITIES FUND EQUITY FUND
------------ ------------ ---------------- ----------------- ---------------
<S> <C> <C> <C> <C> <C>
Unrealized Appreciation $ 371,912 $ 1,687,837 $ 248,680 $ 705,239 $ 24,495,934
Unrealized Depreciation (217,176) (3,231,203) (7,643,051) (3,871,191) (4,177,510)
------------ ------------ ---------------- ----------------- ---------------
Net Unrealized Appreciation
(Depreciation) $ 154,736 $ (1,543,366) $ (7,394,371) $ 3,165,952 $ 20,318,424
============ ============ ================ ================= ===============
Cost of Investments for Federal
Income Tax Purposes $ 40,321,219 $104,422,454 $ 98,299,006 $ 72,269,754 $ 136,150,783
============ ============ ================ ================= ===============
</TABLE>
<TABLE>
<CAPTION>
TCW GALILEO TCW GALILEO TCW GALILEO TCW GALILEO TCW GALILEO
EARNINGS SMALL CAP ASIA PACIFIC EMERGING LATIN AMERICA
MOMENTUM FUND GROWTH FUND EQUITY FUND MARKETS FUND EQUITY FUND
------------- ------------ ---------------- ----------------- ---------------
<S> <C> <C> <C> <C> <C>
Unrealized Appreciation $ 6,163,686 $ 8,460,984 $ 2,943,872 $ 2,813,138 $ 1,881,473
Unrealized Depreciation (2,318,803) (683,787) (4,435,948) (8,234,553) (12,655,146)
------------- ------------ ---------------- ----------------- ---------------
Net Unrealized
Appreciation/Depreciation $ 3,844,883 $ 7,777,197 $ (1,492,076) $ (5,421,415) $ (10,773,673)
============= ============ ================ ================= ===============
Cost of Investments for Federal
Income Tax Purposes $ 45,179,243 $ 29,210,091 $ 41,305,023 $ 54,835,921 $ 57,531,253
============= ============ ================ ================= ===============
</TABLE>
At October 31, 1994, the following Funds had net realized loss carryforwards for
federal income tax purposes:
<TABLE>
<CAPTION>
Expiring in
-------------------------------------------
2001 2002
------------ ------------
<S> <C> <C>
TCW Galileo High Grade Fixed Income Fund $ - $ 1,880,000
TCW Galileo High Yield Bond Fund - 216,000
TCW Galileo Mortgage Backed Securities Fund - 446,000
TCW Galileo Long-Term Mortgage Backed Securities Fund - 44,000
TCW Galileo Core Equity Fund 726,000 2,535,000
TCW Galileo Emerging Markets Fund - 620,000
</TABLE>
72
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1995
NOTE 4 - INVESTMENT ADVISORY AND ACCOUNTING SERVICE FEES
The Funds pay to the Adviser, as compensation for services rendered, facilities
furnished and expenses borne by it, the following annual management fees:
TCW Galileo Money Market Fund 0.25%
TCW Galileo High Grade Fixed Income Fund 0.40%
TCW Galileo High Yield Bond Fund 0.75%
TCW Galileo Mortgage Backed Securities Fund 0.50%
TCW Galileo Long-Term Mortgage Backed Securities Fund 0.50%
TCW Galileo Core Equity Fund 0.75%
TCW Galileo Earnings Momentum Fund 1.00%
TCW Galileo Small Cap Growth Fund 1.00%
TCW Galileo Asia Pacific Equity Fund 1.00%
TCW Galileo Emerging Markets Fund 1.00%
TCW Galileo Latin America Equity Fund 1.00%
The TCW Galileo Money Market Fund reimburses the Adviser for the costs of
providing accounting services to the Fund in an amount not exceeding an annual
rate of 0.10% of the Fund's average daily net assets. Each equity and bond Fund
also reimburses the Adviser for the cost of providing accounting services to the
Fund in an amount not exceeding $35,000 for any fiscal year.
In addition to the management and accounting service fees, each Fund bears all
expenses incurred in its operations. The Adviser voluntarily agreed to reduce
its fees from each Fund, or to pay the operating expenses of each Fund, to the
extent necessary to limit the ordinary operating expenses of each Fund to the
following annual percentages of net assets through December 31, 1994:
TCW Galileo Money Market Fund 0.40%
TCW Galileo High Grade Fixed Income Fund 0.50%
TCW Galileo High Yield Bond Fund 0.79%
TCW Galileo Mortgage Backed Securities Fund 0.55%
TCW Galileo Long-Term Mortgage Backed Securities Fund 0.65%
TCW Galileo Core Equity Fund 1.00%
TCW Galileo Earnings Momentum Fund 1.14%
TCW Galileo Small Cap Growth Fund 1.09%
TCW Galileo Asia Pacific Equity Fund 1.40%
TCW Galileo Emerging Markets Fund 1.87%
TCW Galileo Latin America Equity Fund 1.50%
Beginning January 1, 1995, only the ordinary operating expenses of the TCW
Galileo Money Market Fund and the TCW Galileo Earnings Momentum Fund are limited
to the annual percentages reflected above.
Certain officers and/or directors of the Company are officers and/or directors
of the Adviser.
73
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- - -----------------------------------------------------
NOTE 5 - PURCHASES AND SALES OF SECURITIES
Investment transactions (excluding short-term investments) for the six months
ended April 30, 1995 were as follows:
<TABLE>
<CAPTION>
TCW TCW TCW TCW
GALILEO HIGH GALILEO GALILEO GALILEO LONG-TERM TCW
GRADE FIXED HIGH YIELD MORTGAGE BACKED MORTGAGE BACKED GALILEO CORE
INCOME FUND BOND FUND SECURITIES FUND SECURITIES FUND EQUITY FUND
------------ ------------ ---------------- ----------------- ---------------
<S> <C> <C> <C> <C> <C>
Purchases $ 43,143,137 $ 26,058,479 $ 16,396,140 $ 16,193,656 $ 62,260,231
============ ============ ================ ================= ===============
Sales $ 49,193,164 $ 14,148,308 $ 60,901,877 $ 6,659,745 $ 45,294,526
============ ============ ================ ================= ===============
</TABLE>
<TABLE>
<CAPTION>
TCW GALILEO TCW GALILEO TCW GALILEO TCW GALILEO TCW GALILEO
EARNINGS SMALL CAP ASIA PACIFIC EMERGING LATIN AMERICA
MOMENTUM FUND GROWTH FUND EQUITY FUND MARKETS FUND EQUITY FUND
--------------- ------------- -------------- -------------- ---------------
<S> <C> <C> <C> <C> <C>
Purchases $ 29,535,747 $ 15,075,188 $ 18,242,531 $ 20,950,008 $ 32,270,138
=============== ============= ============== ============== ===============
Sales $ 18,092,811 $ 30,824,514 $ 22,165,167 $ 22,918,460 $ 59,091,556
=============== ============= ============== ============== ===============
</TABLE>
NOTE 6 - RESTRICTED SECURITIES
The following restricted securities held by the Funds as of April 30, 1995 were
valued both at the date of acquisition and April 30, 1995, in accordance with
the security valuation policy of the Funds described in Note 2. The restricted
securities include securities purchased in private placement transactions
without registration under the Securities Act of 1933, as well as Rule 144A
securities. Such securities generally may be sold only in a privately negotiated
transaction with a limited number of purchasers or in a public offering
registered under the Securities Act of 1933. Each Fund will bear any costs
incurred in connection with the disposition of such securities.
TCW GALILEO HIGH YIELD BOND FUND:
<TABLE>
<CAPTION>
NUMBER OF SHARES, RIGHTS, DATE OF
UNITS OR PRINCIPAL AMOUNT INVESTMENT ACQUISITION COST
- - ------------------------- -------------------------------------------------- ----------- -----------
<S> <C> <C> <C>
$ 940,000 Dade International, Inc., (144A), 13%,
due 02/01/05 12/12/94 $ 940,000
$ 625,000 Dominick's Finer Foods, Inc., (144A),
10.875%, due 05/01/05 04/27/95 625,000
244 Haynes International Corp., Private Placement,
Common Stock 06/12/90 243,186
56 Haynes International Corp., Private Placement,
Common Stock 02/03/92 55,492
$ 950,000 Rogers Cablesystems, (144A), 10%,
due 03/15/05 03/10/95 945,250
$ 29,000 Terex Corp., Private Placement, 13%, due 08/01/96 07/24/92 28,786
$ 55,000 Terex Corp., Private Placement, 13%, due 08/01/96 07/09/93 44,550
$ 30,000 Terex Corp., Private Placement, 13%, due 08/01/96 12/28/93 25,800
$ 125,000 Terex Corp., Private Placement, 13%, due 08/01/96 04/21/94 119,688
300 Terex Corp., Private Placement, SAR, expires 07/31/96 07/24/92 299
165 Terex Corp., Private Placement, SAR, expires 07/31/96 07/09/93 1
90 Terex Corp., Private Placement, SAR, expires 07/31/96 12/28/93 1
215 Terex Corp., (144A), Units, 13.75%,
due 05/15/02 04/27/95 215,000
</TABLE>
The Fund holds 21,420 shares of Edisto Resources Corp., which are valued at a
discount to the market price of the unrestricted securities of the same class
due to restrictions on the sale of the shares by the Fund. The discount on these
shares totaled $17,553 at April 30, 1995.
The total value of restricted securities is $3,179,403, which represents 3.0% of
net assets of the Fund at April 30, 1995.
74
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1995
NOTE 6 - RESTRICTED SECURITIES (CONTINUED)
- - ------------------------------------------
TCW GALILEO MORTGAGE BACKED SECURITIES FUND:
<TABLE>
<CAPTION>
DATE OF
PRINCIPAL AMOUNT INVESTMENT ACQUISITION COST
-------------------- ------------------------------------------------ --------------- ------------
<S> <C> <C> <C>
$ 1,613,006 Greenwich Capital Acceptance, Inc. (91-03),
(Private Placement), 7.954%, due 08/25/19 03/21/91 $ 1,603,138
148,058 National Bank of Washington,
(Private Placement) 7.7249%, due 01/25/19 06/13/90 146,605
</TABLE>
The total value of restricted securities is $1,738,350, which represents 1.9%
of net assets of the Fund at April 30, 1995.
TCW GALILEO EMERGING MARKETS FUND:
<TABLE>
<CAPTION>
DATE OF
NUMBER OF SHARES INVESTMENT ACQUISITION COST
-------------------- ------------------------------------------------ --------------- ------------
<S> <C> <C> <C>
5,100 Anglovaal, Limited (144A ADR) (South Africa) 06/23/94 $ 139,383
8,300 Cementos Diamante, S.A. (144A ADS)
(Colombia) 05/17/94 136,870
3,800 Cementos Paz del Rio, S.A. (144A ADS)
(Colombia) 09/21/94 79,800
10,000 Hylsamex, S.A. de C.V. (144A ADR) (Mexico) 10/27/94 215,000
16,100 Mirgor, S.A.C.I.F.I.A. (144A ADS) (Argentina) 10/20/94 144,900
</TABLE>
The total value of restricted securities is $576,006, which represents 1.2%
of net assets of the Fund at April 30, 1995.
TCW GALILEO LATIN AMERICA EQUITY FUND:
<TABLE>
<CAPTION>
DATE OF
NUMBER OF SHARES INVESTMENT ACQUISITION COST
-------------------- ------------------------------------------------ --------------- ------------
<S> <C> <C> <C>
22,800 Cementos Diamante, S.A. (144A ADS)
(Colombia) 05/17/94 $ 366,245
30,937 Companhia Energetica de Minas Gerais
(CEMIG) (Brazil) 10/10/94 915,505
9,400 Hylsamex, S.A. de C.V. (144A ADR) (Mexico) 10/27/94 202,100
55,300 Mirgor, S.A.C.I.F.I.A. (144A ADS) (Argentina) 10/20/94 497,700
35,700 Rhodia-Ster, S.A. (144A GDS) (Brazil) 12/19/94 481,950
</TABLE>
The total value of restricted securities is $1,914,309, which represents 4.2%
of net assets of the Fund at April 30, 1995.
75
<PAGE>
TCW GALILEO MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
APRIL 30, 1995 Ten Months Ended
(UNAUDITED) October 31, 1994
---------------- ----------------
<S> <C> <C>
Net Asset Value per Share, Beginning of Period $ 1.00 $ 1.00
Income from Investment Operations:
Net Investment Income 0.0274 0.0304
Less Distributions:
Distributions from Net Investment Income (0.0274) (0.0304)
--------------- ---------------
Net Asset Value per Share, End of Period $ 1.00 $ 1.00
--------------- ---------------
Total Return 2.74% /(1)/ 3.04% /(2)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 102,158 $ 124,392
Ratio of Expenses to Average Net Assets /(5)/ 0.40% /(4)/ 0.40% /(4)/
Ratio of Net Investment Income to Average Net Assets 5.41% /(4)/ 3.65% /(4)/
</TABLE>
(1) For the six months ended April 30, 1995 and not indicative of a full
year's operating results.
(2) For the ten months ended October 31, 1994 and not indicative of a full
year's operating results.
(3) For the period July 14, 1988 (commencement of operations) to December 31,
1988 and not indicative of a full year's operating results.
(4) Annualized.
(5) The Investment Adviser has voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund, to the extent necessary to limit the
annual ordinary operating expenses of the Fund to 0.40% of net assets as
disclosed in Note 4 of the Notes to Financial Statements. Had such action
not been taken, total annualized operating expenses as a percentage of
average net assets would have been 0.46% for the six months ended
April 30, 1995, 0.68% for the ten months ended October 31, 1994, 0.52%,
0.49%, 0.47%, 0.51 % and 0.71% for the years ended December 31, 1993 through
1989, respectively, and 0.47% for the period July 14, 1988 (commencement of
operations) through December 31, 1988.
76
<PAGE>
TCW GALILEO FUNDS, INC.
<TABLE>
<CAPTION>
Year Ended December 31, July 14, 1988
-------------------------------------------------------------- (Inception) to
1993 1992 1991 1990 1989 December 31, 1988
---------- ---------- ---------- ---------- ---------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value per Share, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from Investment Operations:
Net Investment Income 0.0293 0.0381 0.0620 0.0800 0.0882 0.0379
Less Distributions:
Distributions from Net Investment Income (0.0293) (0.0381) (0.0620) (0.0800) (0.0882) (0.0379)
---------- ---------- ---------- ---------- --------- --------
Net Asset Value per Share, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ========= ========
Total Return 2.97% 3.92% 6.35% 8.18% 9.22% 7.68% /(3)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 81,204 $ 183,465 $ 140,987 $ 167,572 $ 88,620 $ 63,703
Ratio of Expenses to Average Net Assets /(5)/ 0.40% 0.40% 0.40% 0.40% 0.40% 0.40% /(4)/
Ratio of Net Investment Income to Average Net Assets 2.93% 3.81% 6.20% 8.00% 8.82% 8.08% /(4)/
</TABLE>
77
<PAGE>
TCW GALILEO HIGH GRADE FIXED INCOME FUND
FINANCIAL HIGHLIGHTS
- - --------------------
<TABLE>
<CAPTION>
SIX MONTHS March 1, 1993
ENDED Ten Months (Commencement of
APRIL 30, 1995 Ended Operations) through
(UNAUDITED) October 31, 1994 December 31, 1993
-------------- ---------------- -------------------
<S> <C> <C> <C>
Net Asset Value per Share, Beginning of Period $ 8.94 $ 10.04 $ 10.00
-------- ---------- -------------
Income (Loss) from Investment Operations:
Net Investment Income 0.28 0.44 0.45
Net Realized and Unrealized Gain (Loss) on Investments
and Foreign Currency Transactions/Translations 0.14 (1.16) 0.19
-------- ---------- -------------
Total from Investment Operations 0.42 (0.72) 0.64
-------- ---------- -------------
Less Distributions:
Distributions from Net Investment Income (0.32) (0.38) (0.45)
Distributions from Realized Gains - - (0.14)
Distributions in Excess of Realized Gains - - (0.01)
-------- ---------- -------------
Total (0.32) (0.38) (0.60)
-------- ---------- -------------
Net Asset Value per Share, End of Period $ 9.04 $ 8.94 $ 10.04
======== ========== =============
Total Return 4.86% /(1)/ (7.24)% /(2)/ 6.54% /(3)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 36,833 $ 50,153 $ 33,328
Ratio of Expenses to Average Net Assets /(4)/ /(5)/ 0.67% 0.50% 0.50%
Ratio of Net Investment Income to Average Net Assets /(4)/ 6.41% 6.11% 5.24%
Portfolio Turnover Rate 125.16% /(1)/ 208.63% /(2)/ 149.96% /(3)/
</TABLE>
(1) For the six months ended April 30, 1995 and not indicative of a full year's
operating results.
(2) For the ten months ended October 31, 1994 and not indicative of a full
year's operating results.
(3) For the period March 1, 1993 (commencement of operations) through December
31, 1993 and not indicative of a full year's operating results.
(4) Annualized.
(5) The Investment Adviser has voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund, to the extent necessary to limit the
annual ordinary operating expenses of the Fund to 0.50% of net assets as
disclosed in Note 4 of the Notes to Financial Statements. Had such action
not been taken, total annualized operating expenses as a percentage of
average net assets would have been 0.74% for the six months ended April 30,
1995, 0.68% for the ten months ended October 31, 1994 and 0.89% for the
period March 1, 1993 (commencement of operations) through December 31, 1993.
78
<PAGE>
TCW GALILEO FUNDS, INC.
TCW GALILEO HIGH YIELD BOND FUND
FINANCIAL HIGHLIGHTS
- - --------------------
<TABLE>
<CAPTION>
SIX MONTHS March 1, 1993
ENDED Ten Months (Commencement of
APRIL 30, 1995 Ended Operations) through
(UNAUDITED) October 31, 1994 December 31, 1993
-------------- ---------------- -------------------
<S> <C> <C> <C>
Net Asset Value per Share, Beginning of Period $ 9.43 $ 10.12 $ 10.00
---------- ------------ ---------------
Income (Loss) from Investment Operations:
Net Investment Income 0.45 0.73 0.74
Net Realized and Unrealized Gain (Loss) on Investments 0.20 (0.77) 0.27
---------- ------------ ---------------
Total from Investment Operations 0.65 (0.04) 1.01
---------- ------------ ---------------
Less Distributions:
Distributions from Net Investment Income (0.53) (0.65) (0.74)
Distribution in Excess of Net Investment Income (0.01) - -
Distributions from Realized Gains - - (0.15)
---------- ------------ ---------------
Total (0.54) (0.65) (0.89)
---------- ------------ ---------------
Net Asset Value per Share, End of Period $ 9.54 $ 9.43 $ 10.12
========== ============ ===============
Total Return 7.13% /(1)/ (0.34)% /(2)/ 10.47% /(3)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 104,326 $ 90,577 $ 73,737
Ratio of Expenses to Average Net Assets /(4)/ /(5)/ 0.86% 0.79% 0.79%
Ratio of Net Investment Income to Average Net Assets /(4)/ 9.67% 9.18% 8.60%
Portfolio Turnover Rate 15.29% /(1)/ 34.01% /(2)/ 47.60% /(3)/
</TABLE>
(1) For the six months ended April 30, 1995 and not indicative of a full
year's operating results.
(2) For the ten months ended October 31, 1994 and not indicative of a full
year's operating results.
(3) For the period March 1, 1993 (commencement of operations) through
December 31, 1993 and not indicative of a full year's operating results.
(4) Annualized.
(5) The Investment Adviser has voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund, to the extent necessary to limit the
annual ordinary operating expenses of the Fund to 0.79% of net assets
through December 31, 1994 as disclosed in Note 4 of the Notes to Financial
Statements. Had such action not been taken, total annualized operating
expenses as a percentage of average net assets would have been 0.89% for
the six months ended April 30, 1995, 0.91% for the ten months ended
October 31, 1994 and 0.96% for the period March 1, 1993 (commencement of
operations) through December 31, 1993.
79
<PAGE>
TCW GALILEO MORTGAGE BACKED SECURITIES FUND
FINANCIAL HIGHLIGHTS
- - --------------------
<TABLE>
<CAPTION>
SIX MONTHS March 1, 1993
ENDED Ten Months (Commencement of
APRIL 30, 1995 Ended Operations) through
(UNAUDITED) October 31, 1994 December 31, 1993
-------------- ---------------- -------------------
<S> <C> <C> <C>
Net Asset Value per Share, Beginning of Period $ 9.41 $ 9.86 $ 10.00
------------ ------------ -------------
Income (Loss) from Investment Operations:
Net Investment Income 0.40 0.42 0.50
Net Realized and Unrealized Gain (Loss) on Investments 0.01 (0.48) (0.12)
------------ ------------ -------------
Total from Investment Operations 0.41 (0.06) 0.38
------------ ------------ -------------
Less Distributions:
Distributions from Net Investment Income (0.41) (0.39) (0.50)
Distributions from Realized Gains - - (0.02)
------------ ------------ -------------
Total (0.41) (0.39) (0.52)
------------ ------------ -------------
Net Asset Value per Share, End of Period $ 9.41 $ 9.41 $ 9.86
============ ============ =============
Total Return 4.42%/(1)/ (0.61)%/(2)/ 3.89%/(3)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 91,628 $ 134,948 $ 147,666
Ratio of Expenses to Average Net Assets /(4)/ /(5)/ 0.58% 0.55% 0.55%
Ratio of Net Investment Income to Average Net Assets /(4)/ 8.10% 5.18% 5.98%
Portfolio Turnover Rate 16.39%/(1)/ 65.64%/(2)/ 70.44%/(3)/
</TABLE>
(1) For the six months ended April 30, 1995 and not indicative of a full year's
operating results.
(2) For the ten months ended October 31, 1994 and not indicative of a full
year's operating results.
(3) For the period March 1, 1993 (commencement of operations) through December
31, 1993 and not indicative of a full year's operating results.
(4) Annualized.
(5) The Investment Adviser has voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund, to the extent necessary to limit the
annual ordinary operating expenses of the Fund to 0.55% of net assets as
disclosed in Note 4 of the Notes to Financial Statements. Had such action
not been taken, total annualized operating expenses as a percentage of
average net assets would have been 0.62% for the six months ended April 30,
1995, 0.62% for the ten months ended October 31, 1994 and 0.70% for the
period March 1, 1993 (commencement of operations) through December 31, 1993.
80
<PAGE>
TCW GALILEO FUNDS, INC.
TCW GALILEO LONG-TERM MORTGAGE BACKED SECURITIES FUND
FINANCIAL HIGHLIGHTS
- - --------------------
<TABLE>
<CAPTION>
SIX MONTHS June 17, 1993
ENDED Ten Months (Commencement of
APRIL 30, 1995 Ended Operations) through
(UNAUDITED) October 31, 1994 December 31, 1993
-------------- ---------------- -------------------
<S> <C> <C> <C>
Net Asset Value per Share, Beginning of Period $ 8.95 $ 10.07 $ 10.00
------------ ------------ ------------
Income (Loss) from Investment Operations:
Net Investment Income 0.39 0.63 0.28
Net Realized and Unrealized Gain (Loss) on Investments 0.21 (1.26) 0.07
------------ ------------ ------------
Total from Investment Operations 0.60 (0.63) 0.35
------------ ------------ ------------
Less Distributions:
Distributions from Net Investment Income (0.47) (0.49) (0.28)
------------ ------------ ------------
Net Asset Value per Share, End of Period $ 9.08 $ 8.95 $ 10.07
============ ============ ============
Total Return 6.94%/(1)/ (6.39)%/(2)/ 3.51%/(3)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 69,515 $ 66,632 $ 25,215
Ratio of Expenses to Average Net Assets /(4)/ /(5)/ 0.69% 0.65% 0.65%
Ratio of Net Investment Income to Average Net Assets /(4)/ 8.83% 8.03% 5.37%
Portfolio Turnover Rate 12.06%/(1)/ 36.71%/(2)/ 44.47%/(3)/
</TABLE>
(1) For the six months ended April 30, 1995 and not indicative of a full year's
operating results.
(2) For the ten months ended October 31, 1994 and not indicative of a full
year's operating results.
(3) For the period June 17, 1993 (commencement of operations) through December
31, 1993 and not indicative of a full year's operating results.
(4) Annualized.
(5) The Investment Adviser has voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund, to the extent necessary to limit the
annual ordinary operating expenses of the Fund to 0.65% of net assets as
disclosed in Note 4 of the Notes to Financial Statements. Had such action
not been taken, total annualized operating expenses as a percentage of
average net assets would have been 0.71% for the six months ended April 30,
1995, 0.78% for the ten months ended October 31, 1994 and 1.13% for the
period June 17, 1993 (commencement of operations) through December 31,
1993.
81
<PAGE>
TCW GALILEO CORE EQUITY FUND
FINANCIAL HIGHLIGHTS
- - --------------------
<TABLE>
<CAPTION>
SIX MONTHS March 1, 1993
ENDED Ten Months (Commencement of
APRIL 30, 1995 Ended Operations) through
(UNAUDITED) October 31, 1994 December 31, 1993
-------------- ---------------- -------------------
<S> <C> <C> <C>
Net Asset Value per Share, Beginning of Period $ 11.57 $ 11.81 $ 10.00
------------ ------------ ------------
Income (Loss) from Investment Operations:
Net Investment Income 0.04 0.04 0.03
Net Realized and Unrealized Gain (Loss) on Investments 0.42 (0.28) 1.81
------------ ------------ ------------
Total from Investment Operations 0.46 (0.24) 1.84
------------ ------------ ------------
Less Distributions:
Distributions from Net Investment Income (0.05) - (0.03)
------------ ------------ ------------
Net Asset Value per Share, End of Period $ 11.98 $ 11.57 $ 11.81
============ ============ ============
Total Return 4.01%/(1)/ (2.03)%/(2)/ 18.41%/(3)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 156,571 $ 136,122 $ 55,885
Ratio of Expenses to Average Net Assets /(4)/ 0.88% 0.91% 1.00%/(5)/
Ratio of Net Investment Income to Average Net Assets /(4)/ 0.74% 0.44% 0.55%
Portfolio Turnover Rate 33.04%/(1)/ 23.53%/(2)/ 29.67%/(3)/
</TABLE>
(1) For the six months ended April 30, 1995 and not indicative of a full year's
operating results.
(2) For the ten months ended October 31, 1994 and not indicative of a full
year's operating results.
(3) For the period March 1, 1993 (commencement of operations) through December
31, 1993 and not indicative of a full year's operating results.
(4) Annualized.
(5) The Investment Adviser has voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund, to the extent necessary to limit the
annual ordinary operating expenses of the Fund to 1.00% of net assets as
disclosed in Note 4 of the Notes to Financial Statements. Had such action
not been taken, total annualized operating expenses as a percentage of
average net assets would have been 1.09% for the period March 1, 1993
(commencement of operations) through December 31, 1993.
82
<PAGE>
TCW GALILEO FUNDS, INC.
TCW GALILEO EARNINGS MOMENTUM FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
- - --------------------------------
<TABLE>
<CAPTION>
NOVEMBER 1, 1994
(COMMENCEMENT OF
OPERATIONS) THROUGH
APRIL 30, 1995
-------------------
<S> <C>
Net Asset Value per Share, Beginning of Period $ 10.00
-------------
Gain from Investment Operations:
Net Investment Income -
Net Realized and Unrealized Gain on Investments 0.13
-------------
Total from Investment Operations 0.13
-------------
Net Asset Value per Share, End of Period $ 10.13
=============
Total Return 1.35/(1)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 49,995
Ratio of Expenses to Average Net Assets/(2)(3)/ 1.14%
Ratio of Net Investment Income to Average Net Assets/(2)/ 0.03%
Portfolio Turnover Rate 46.07%/(1)/
</TABLE>
(1) For the period November 1, 1994 (commencement of operations) through
April 30, 1995 and not indicative of a full year's operating results.
(2) Annualized.
(3) The Investment Adviser has voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund, to the extent necessary to limit the
annual ordinary operating expenses of the Fund to 1.14% of net assets as
disclosed in Note 4 of the Notes to Financial Statements. Had such action
not been taken, total annualized operating expenses as a percentage of
average net assets would have been 1.26% for the period November 1, 1994
(commencement of operations) through April 30, 1995.
83
<PAGE>
TCW GALILEO SMALL CAP GROWTH FUND
FINANCIAL HIGHLIGHTS
- - --------------------
<TABLE>
<CAPTION>
March 1, 1994
SIX MONTHS ENDED (Commencement of
APRIL 30, 1995 Operations) through
(UNAUDITED) October 31, 1994
---------------- -------------------
<S> <C> <C>
Net Asset Value per Share, Beginning of Period $ 9.39 $ 10.00
------------ -------------
Loss from Investment Operations:
Net Investment Loss (0.05) (0.04)
Net Realized and Unrealized Gain (Loss) on Investments 1.00 (0.57)
------------ -------------
Total from Investment Operations 0.95 (0.61)
------------ -------------
Net Asset Value per Share, End of Period $ 10.34 $ 9.39
============ =============
Total Return 10.12/(1)/ (6.10)%/(2)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 36,922 $ 51,089
Ratio of Expenses to Average Net Assets/(3)(4)/ 1.23% 1.09%
Ratio of Net Investment Loss to Average Net Assets/(3)/ (0.75)% (0.59)%
Portfolio Turnover Rate 44.30%/(1)/ 88.63%/(2)/
</TABLE>
(1) For the six months ended April 30, 1995 and not indicative of a full year's
operating results.
(2) For the period March 1, 1994 (commencement of operations) through
October 31, 1994 and not indicative of a full year's operating results.
(3) Annualized.
(4) The Investment Adviser has voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund, to the extent necessary to limit the
annual ordinary operating expenses of the Fund to 1.09% of net assets as
disclosed in Note 4 of the Notes to Financial Statements. Had such action
not been taken, total annualized operating expenses as a percentage of
average net assets would have been 1.31% for the six months ended April 30,
1995 and 1.39% for the period March 1, 1994 (commencement of operations)
through October 31, 1994.
84
<PAGE>
TCW GALILEO FUNDS, INC.
TCW GALILEO ASIA PACIFIC EQUITY FUND
FINANCIAL HIGHLIGHTS
- - --------------------
<TABLE>
<CAPTION>
March 1, 1994
SIX MONTHS ENDED (Commencement of
APRIL 30, 1995 Operations) through
(UNAUDITED) October 31, 1994
---------------- -------------------
<S> <C> <C>
Net Asset Value per Share, Beginning of Period $ 10.19 $ 10.00
------------ -------------
Income from Investment Operations:
Net Investment Income 0.01 0.03
Net Realized and Unrealized Gain (Loss) on Investments
and Foreign Currency Transactions/Translations (1.86) 0.16
------------ -------------
Total from Investment Operations (1.85) 0.19
------------ -------------
Less Distributions:
Distributions from Net Investment Income (0.01) -
Distributions from Realized Gains (0.26) -
------------ -------------
Total (0.27) -
------------ -------------
Net Asset Value per Share, End of Period $ 8.07 $ 10.19
============ =============
Total Return (18.27)/(1)/ 1.90%/(2)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 39,967 $ 54,019
Ratio of Net Expenses to Average Net Assets/(3)/ 1.54% 1.40%
Ratio of Net Investment Income to Average Net Assets/(3)/ 0.21% 0.45%
Portfolio Turnover Rate 44.07%/(1)/ 46.75%/(2)/
</TABLE>
(1) For the six months ended April 30, 1995 and not indicative of a full year's
operating results.
(2) For the period March 1, 1994 (commencement of operations) through
October 31, 1994 and not indicative of a full year's operating results.
(3) Annualized.
(4) The Investment Adviser has voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund, to the extent necessary to limit the
annual ordinary operating expenses of the Fund to 1.40% of net assets
through December 31, 1994 as disclosed in Note 4 of the Notes to Financial
Statements. Had such action not been taken, total annualized operating
expenses as a percentage of average net assets would have been 1.60% for the
six months ended April 30, 1995 and 1.60% for the period March 1, 1994
(commencement of operations) through October 31, 1994, respectively.
85
<PAGE>
TCW GALILEO EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS
- - --------------------
<TABLE>
<CAPTION>
March 1, 1994
SIX MONTHS ENDED (Commencement of
APRIL 30, 1995 Operations) through
(UNAUDITED) October 31, 1994
---------------- ------------------
<S> <C> <C>
Net Asset Value per Share, Beginning of Period $ 9.73 $ 10.00
---------------- ------------------
Loss from Investment Operations:
Net Investment Income (Loss) 0.01 (0.01)
Net Realized and Unrealized Loss on Investments
and Foreign Currency Transactions/Translations (2.49) (0.26)
---------------- ------------------
Total from Investment Operations (2.48) (0.27)
---------------- ------------------
Net Asset Value per Share, End of Period $ 7.25 $ 9.73
================ ==================
Total Return (25.49)% /(1)/ (2.70)% /(2)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 49,684 $ 70,212
Ratio of Expenses to Average Net Assets /(3)/ 1.60% 1.70%
Ratio of Net Investment Income (Loss) to Average Net Assets /(3)/ 0.24% (0.09)%
Portfolio Turnover Rate 39.66% /(1)/ 61.28% /(2)/
</TABLE>
(1) For the six months ended April 30, 1995 and not indicative of a
full year's operating results.
(2) For the period March 1, 1994 (commencement of operations)
through October 31, 1994 and not indicative of a full year's operating
results.
(3) Annualized.
86
<PAGE>
TCW GALILEO FUNDS, INC.
TCW GALILEO LATIN AMERICA EQUITY FUND
FINANCIAL HIGHLIGHTS
- - --------------------
<TABLE>
<CAPTION>
SIX MONTHS March 1, 1993
ENDED Ten Months (Commencement of
APRIL 30, 1995 Ended Operations) through
(UNAUDITED) October 31, 1994 December 31, 1993
-------------- ---------------- --------------------
<S> <C> <C> <C>
Net Asset Value per Share, Beginning of Period $ 14.99 $ 15.11 $ 10.00
------------- ---------------- ----------------
Income (Loss) from Investment Operations:
Net Investment Income 0.02 0.01 0.08
Net Realized and Unrealized Gain (Loss) on Investments
and Foreign Currency Transactions/Translations (5.49) (0.13) 6.35
------------- ---------------- ----------------
Total from Investment Operations (5.47) (0.12) 6.43
------------- ---------------- ----------------
Less Distributions:
Distributions from Net Investment Income - - (0.08)
Distributions from Realized Gains (1.21) - (1.21)
Distributions in Excess of Realized Gains - - (0.03)
------------- ---------------- ----------------
Total (1.21) - (1.32)
------------- ---------------- ----------------
Net Asset Value per Share, End of Period $ 8.31 $ 14.99 $ 15.11
============= ================ ================
Total Return (38.04)% /(1)/ (0.79)% /(2)/ 64.27% /(3)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 45,765 $ 122,610 $ 89,910
Ratio of Expenses to Average Net Assets /(4)/ 1.57% 1.36% 1.50% /(5)/
Ratio of Net Investment Income to Average Net Assets /(4)/ 0.10% 0.11% 0.77%
Portfolio Turnover Rate 43.60% /(1)/ 143.65% /(2)/ 120.06% /(3)/
</TABLE>
(1) For the six months ended April 30, 1995 and not indicative of a
full year's operating results.
(2) For the ten months ended October 31, 1994 and not
indicative of a full year's operating results.
(3) For the period March 1, 1993 (commencement of operations)
through December 31, 1993 and not indicative of a full year's operating
results.
(4) Annualized.
(5) The Investment Adviser has voluntarily agreed to reduce its fee,
or to pay the operating expenses of the Fund, to the extent necessary to
limit the annual ordinary operating expenses of the Fund to 1.50% of net
assets as disclosed in Note 4 of the Notes to Financial Statements. Had
such action not been taken, total annualized operating expenses as a
percentage of average net assets would have been 1.52% for the period
March 1, 1993 (commencement of operations) through December 31, 1993.
87
<PAGE>
REPORT OF SPECIAL MEETING OF SHAREHOLDERS
- - -----------------------------------------
A Special Meeting of Shareholders of the Galileo Asia Pacific Equity and
Galileo Emerging Markets Funds was held on November 15, 1994. At the meeting,
the following matters were submitted to a shareholder vote and approved by a
majority of each Fund's outstanding voting securities: (i) approval of a
sub-investment advisory agreement between the Galileo Asia Pacific Equity
Fund, TCW Funds Management, Inc., the Fund's investment adviser, and TCW Asia
Limited, the proposed sub-adviser (votes for: 2,876,221; votes against:
49,553; abstentions: 99,298), and (ii) approval of sub-investment advisory
agreements between the Galileo Emerging Markets Fund, TCW Funds Management,
Inc., the Fund's investment advisor, and TCW Asia Limited and TCW London
International, Limited, the proposed sub-advisers. (votes for: 3,415,369;
votes against: 222,269; abstentions: 46,082). 5,299,343 and 6,591,818 shares
were outstanding on the record date for the meeting for the Galileo Asia
Pacific Equity and Galileo Emerging Markets Funds, respectively, and
3,025,071 and 3,683,720 shares entitled to vote were present in person or by
proxy at the meeting for the Galileo Asia Pacific Equity and Galileo Emerging
Markets Funds, respectively.
88
<PAGE>
TCW GALILEO FUNDS, INC.
SHAREHOLDER INFORMATION
- - -----------------------
DIRECTORS AND OFFICERS
Marc I. Stern
Director and Chairman of the Board
Thomas E. Larkin, Jr.
Director and President
John C. Argue
Director
Norman Barker, Jr.
Director
Richard W. Call
Director
Alvin R. Albe, Jr.
Senior Vice President
Michael E. Cahill
Senior Vice President,
General Counsel and Assistant Secretary
Ronald E. Robison
Senior Vice President
David K. Sandie
Senior Vice President and Treasurer
Philip K. Holl
Secretary
Marie M. Bender
Assistant Secretary
Hilary G.D. Lord
Assistant Secretary
INVESTMENT ADVISER
TCW Funds Management, Inc.
865 South Figueroa Street
Los Angeles, California 90017
(213) 244-0000
CUSTODIAN
The Bank of New York
Trust Company of California
700 South Flower Street
Suite 200
Los Angeles, California 90017
TRANSFER AGENT
DST Systems, Inc.
811 Main Street
Kansas City, Missouri 64105
DISTRIBUTOR
TCW Brokerage Services
865 South Figueroa Street
Los Angeles, California 90017
(213) 244-0000
INDEPENDENT AUDITORS
Deloitte & Touche llp
1000 Wilshire Boulevard
Los Angeles, California 90017
89
<PAGE>
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