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Previous: AMERICAN HONDA RECEIVABLES CORP, 8-K, 1996-07-16 |
Next: CARRAMERICA REALTY CORP, 8-K/A, 1996-07-16 |
<PAGE>
TCW GALILEO FUNDS, INC.
SEMI-ANNUAL REPORT
APRIL 30, 1996
<PAGE>
TCW GALILEO FUNDS, INC.
TABLE OF CONTENTS
- -----------------
<TABLE>
<S> <C>
Letter to Shareholders...................................................... 3
Schedule of Investments:
TCW Galileo Money Market Fund............................................ 5
TCW Galileo High Grade Fixed Income Fund................................. 7
TCW Galileo High Yield Bond Fund......................................... 10
TCW Galileo Mortgage Backed Securities Fund.............................. 16
TCW Galileo Long-Term Mortgage Backed Securities Fund.................... 19
TCW Galileo Core Equity Fund............................................. 21
TCW Galileo Earnings Momentum Fund....................................... 24
TCW Galileo Small Cap Growth Fund........................................ 30
TCW Galileo Asia Pacific Equity Fund..................................... 35
TCW Galileo Emerging Markets Fund........................................ 39
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........................................................ 78
Shareholder Information..................................................... 90
</TABLE>
1
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK
2
<PAGE>
TCW GALILEO FUNDS, INC.
TO OUR SHAREHOLDERS
- -------------------
We are pleased to submit the April 30, 1996 Semi-Annual Report for the TCW
Galileo Funds. The Galileo Mutual Funds continue to provide our clients with
targeted investment strategies featuring daily liquidity, competitive management
fees and no front-end loads, 12b-1 or deferred sales charges. Below is a summary
of each Fund's net asset value and returns through April 30, 1996.
<TABLE>
<CAPTION>
Net Asset Value Total Return - Annualized
per Share As of April 30, 1996
--------------- ---------------------------------------------------------
Latest Twelve
April 30, Months Ended Latest Since Inception
1996 April 30, 1996 5 Years Inception Date
--------------- ---------------- --------- ------------ -----------
<S> <C> <C> <C> <C> <C>
TCW Galileo Money Market Fund $ 1.00 5.53% 4.45% 5.83% 07/14/88
TCW Galileo High Grade Fixed
Income Fund 9.28 7.99% 6.82% (1) 7.17% (1) 01/01/90 (2)
TCW Galileo High Yield Bond Fund 9.63 10.87% 12.23% (1) 10.94% (1) 02/01/89 (2)
TCW Galileo Mortgage Backed
Securities Fund 9.57 9.17% 6.27% (1) 6.98% (1) 02/01/90 (2)
TCW Galileo Long-Term Mortgage
Backed Securities Fund 9.30 10.17% 4.72% 06/17/93
TCW Core Equity Fund 15.25 27.77% 15.97% (1) 07/01/91 (2)
TCW Galileo Earnings
Momentum Fund 14.99 48.28% 22.31% (1) 05/01/93 (2)
TCW Galileo Small Cap
Growth Fund 18.62 91.37% 28.47%(1) 23.66% (1) 12/01/89 (2)
TCW Galileo Asia Pacific
Equity Fund 10.04 26.13% 21.25% (1) 04/01/93 (2)
TCW Galileo Emerging Markets
Fund 8.49 17.46% 9.28% (1) 06/01/93 (2)
TCW Galileo Latin America
Equity Fund 9.46 14.46% 10.60% (1) 07/01/91 (2)
</TABLE>
(1) Performance data includes the performance of the predecessor limited
partnership for periods before the TCW Galileo Funds' registration became
effective. The predecessor limited partnerships were not registered under
the Investment Company Act of 1940, as amended ("1940 Act"), and, therefore
were not subject to certain investment restrictions that are imposed by the
1940 Act. If the limited partnerships had been registered under the 1940
Act, the limited partnership's performance may have been adversely affected.
(2) Inception date of predecessor limited partnership.
3
<PAGE>
TCW is committed to providing you with superior professional investment
management and distinctive personal service through the TCW Galileo Funds.
Please call your Account Representative or our Shareholder Relations Department
at (800) FUND TCW [(800) 386-3829] if you have any questions or would like
further information on the TCW Galileo Funds.
Very truly yours,
/s/ Marc I. Stern
Marc I. Stern
Chairman of the Board
June 7, 1996
4
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo Money Market Fund
April 30, 1996
SCHEDULE OF INVESTMENTS (Unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
Principal
Amount INVESTMENTS Value
- -------------- ----------- -------------
<S> <C> <C>
AGENCY FIXED INCOME SECURITIES (17.1% of Net Assets)
$ 2,000,000 Federal Farm Credit Bank, 5.4%, due 11/08/96 $ 1,997,999
2,400,000 Federal Home Loan Bank, 5.35%, due 10/21/96 2,338,297
2,000,000 Federal Home Loan Bank, 8.25%, due 05/27/96 2,003,705
9,000,000 Federal National Mortgage Association, 4.82%, due 08/09/96 8,879,500
6,000,000 Federal National Mortgage Association, 4.85%, due 08/09/96 5,919,167
3,000,000 Federal National Mortgage Association, 5.47%, due 11/14/96 2,998,972
3,000,000 Federal National Mortgage Association, 8.5%, due 06/10/96 3,009,538
5,000,000 Student Loan Marketing Association, 5.22%, due 10/10/96 4,998,230
-------------
TOTAL AGENCY FIXED INCOME SECURITIES (Cost: $32,145,408) 32,145,408
-------------
COMMERCIAL PAPER (67.0%)
5,000,000 American Express Credit Corp., 5.28%, due 05/07/96 4,995,600
5,000,000 Associates Corp. of North America, 5.35%, due 05/01/96 5,000,000
2,000,000 Becton Dickinson & Company, 5.27%, due 05/06/96 1,998,536
2,942,000 BellSouth Telecommunications, Inc., 5.27%, due 05/02/96 2,941,569
5,000,000 BellSouth Telecommunications, Inc., 5.3%, due 05/21/96 4,985,278
2,000,000 Ciba-Gergy Corp., 5.25%, due 05/01/96 2,000,000
1,800,000 Ciba-Gergy Corp., 5.28%, due 05/08/96 1,798,152
3,000,000 Ciba-Gergy Corp., 5.31%, due 05/13/96 2,994,690
3,000,000 Ciesco L.P., 5.27%, due 06/06/96 2,984,190
5,000,000 Ciesco L.P., 5.32%, due 05/22/96 4,984,483
2,785,000 Dean Witter, Discover, 5.31%, due 05/06/96 2,782,946
2,100,000 Dean Witter, Discover, 5.32%, due 05/06/96 2,098,448
1,800,000 Dupont (E.I.) de Nemours & Company, 5.3%, due 05/31/96 1,792,050
6,500,000 Florida Power Corp., 5.3%, due 05/07/96 6,494,258
2,200,000 Ford Motor Credit Corp., 5.31%, due 05/24/96 2,192,537
1,650,000 Illinois Tools Works, Inc., 5.31%, due 06/18/96 1,638,318
3,000,000 John Deere Company, 5.32%, due 05/03/96 2,999,113
3,000,000 John Deere Company, 5.32%, due 05/08/96 2,996,897
3,150,000 Metlife Funding Inc., 5.14%, due 05/06/96 3,147,751
5,000,000 NationsBank Corp., 5.3%, due 05/28/96 4,980,125
3,000,000 Nestle Capital Corp., 5.27%, due 05/13/96 2,994,730
3,000,000 Nestle Capital Corp., 5.33%, due 05/01/96 3,000,000
1,245,000 Nordstrom Credit Corp., 5.32%, due 05/09/96 1,243,528
3,000,000 Pacific Mutual Life Insurance Company, 5.27%, due 05/20/96 2,991,656
4,000,000 Pacific Mutual Life Insurance Company, 5.28%, due 05/29/96 3,983,573
2,000,000 Pitney-Bowes Credit Corp, 5.3%, due 05/14/96 1,996,172
1,000,000 Pitney Bowes Credit Corp., 5.3%, due 06/19/96 992,786
3,000,000 Prudential Funding Corp., 5.23%, due 05/02/96 2,999,564
3,500,000 Raytheon Company, 5.25%, due 05/10/96 3,495,406
1,000,000 SAFECO Credit Company, 5.26%, due 05/23/96 996,786
5,000,000 SAFECO Credit Company, 5.28%, due 05/29/96 4,979,467
5,000,000 Student Loan Corp., 5.31%, due 05/23/96 4,983,775
</TABLE>
See accompanying Notes to Financial Statements.
5
<PAGE>
TCW Galileo Money Market Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount INVESTMENTS Value
- -------------- ----------- -------------
<S> <C> <C>
COMMERCIAL PAPER (Continued)
$ 2,000,000 Toyota Motor Credit Corp., 5.3%, due 06/03/96 $ 1,990,283
3,900,000 Toys R Us, Inc., 5.32%, due 05/20/96 3,889,050
2,445,000 Transamerica Finance Corp., 5.29%, due 05/24/96 2,436,737
1,500,000 Transamerica Finance Corp., 5.3%, due 05/28/96 1,494,038
5,000,000 United Parcel Service of America, Inc., 5.02%, due 06/03/96 4,976,992
2,900,000 United Parcel Service of America, Inc., 5.08%, due 06/03/96 2,886,496
5,000,000 USAA Capital Corp., 5%, due 06/27/96 4,960,417
2,485,000 Wal-Mart Stores, Inc., 5.25%, due 05/08/96 2,482,463
-------------
TOTAL COMMERCIAL PAPER (Cost: $125,578,860) 125,578,860
-------------
CORPORATE FIXED INCOME SECURITIES (15.8%)
3,000,000 American Express Credit Corp., 7.875%, due 12/01/96 3,041,182
1,720,000 American General Finance Corp., 5%, due 06/15/96 1,718,050
1,500,000 Associates Corp of North America, MTN, 4.75%, due 08/01/96 1,498,202
1,000,000 Associates Corp of North America, MTN, 6.875%, due 01/15/97 1,008,112
500,000 C.I.T. Group Holdings, 7.125%, due 11/15/96 503,834
2,500,000 C.I.T. Group Holdings, 7.625%, due 12/05/96 2,530,654
2,000,000 Dupont (E.I.) De Nemours & Company, 8.45%, due 10/15/96 2,028,600
2,500,000 Ford Motor Credit Corp., 8%, due 10/01/96 2,525,879
1,000,000 Ford Motor Credit Corp., 8%, due 12/01/96 1,015,169
4,000,000 General Electric Capital Corp., 7.85%, due 02/01/97 4,080,234
4,000,000 Norwest Financial, Inc., 8.875%, due 07/01/96 4,025,175
2,000,000 Toyota Motor Credit Corp., 6.875%, due 10/15/96 2,010,546
3,500,000 Toyota Motor Credit Corp., 7.7%, due 01/23/97 3,561,648
-------------
TOTAL CORPORATE FIXED INCOME SECURITIES (Cost: $29,547,285) 29,547,285
-------------
SHORT-TERM INVESTMENTS (Cost: $3,757) (0.0%)
--------------------------------------------
3,757 Bank of New York Depositary Reserve, 4.4%, due 05/01/96 3,757
-------------
TOTAL INVESTMENTS (Cost: $187,275,310) (99.9%) 187,275,310
EXCESS OF OTHER ASSETS OVER LIABILITIES (0.1%) 197,397
-------------
NET ASSETS (100%) $ 187,472,707
=============
</TABLE>
See accompanying Notes to Financial Statements.
6
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo High Grade Fixed Income Fund
April 30, 1996
SCHEDULE OF INVESTMENTS (Unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
Principal
Amount FIXED INCOME SECURITIES Value
- -------------- ----------------------- -------------
<S> <C> <C>
ASSET-BACKED SECURITIES (3.8% of Net Assets)
$ 181,467 AFC Home Equity Loan Trust, Series 1993-2, Class A,
6%, due 01/20/13 $ 175,179
170,914 AFC Home Equity Loan Trust, Series 1992-4, Class A,
6.2%, due 09/15/07 166,906
411,967 Old Stone Credit Corp Home Equity Trust 1992-4A,
6.55%, due 11/25/07 403,978
487,577 UCFC Home Equity Loans 1993-D, Class A-1, 5.45%, due 07/10/13 467,543
-------------
TOTAL ASSET-BACKED SECURITIES (Cost: $1,267,421) 1,213,606
-------------
FEDERAL AGENCY OBLIGATIONS-
AGENCY PASS-THROUGHS (42.4%)
790,219 Federal Home Loan Mortgage Association, Pool #E20228, 6%,
due 03/01/11 748,733
1,402,971 Federal Home Loan Mortgage Association, Pool #D66491, 6.5%,
due 12/01/25 1,317,039
1,476,399 Federal Home Loan Mortgage Association, Pool #D66570, 6.5%,
due 12/01/25 1,385,970
3,219,756 Federal Home Loan Mortgage Association, Pool #E63316, 6.5%,
due 03/01/11 3,124,161
996,938 Federal Home Loan Mortgage Association, Pool #D66030, 7%,
due 12/01/25 962,663
1,196,230 Federal Home Loan Mortgage Association, Pool #D66679, 7%,
due 01/01/26 1,155,104
2,049,832 Federal Home Loan Mortgage Association, Pool #D66964, 7%,
due 01/01/26 1,979,359
1,577,397 Government National Mortgage Association, Pool #G28146, 6.5%,
due 02/20/23 1,587,748
1,300,000 Government National Mortgage Association, TBA, 7.5%,
due 05/01/26 1,282,528
-------------
TOTAL FEDERAL AGENCY OBLIGATIONS-
AGENCY PASS-THROUGHS (Cost: $13,871,939) 13,543,305
-------------
</TABLE>
See accompanying Notes to Financial Statements.
7
<PAGE>
TCW Galileo High Grade Fixed Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount FIXED INCOME SECURITIES Value
- -------------- ----------------------- -------------
<S> <C> <C>
FINANCIAL (3.3%)
$ 500,000 American General Finance Corp., 7.25%, due 05/15/05 $ 499,375
500,000 BHP Finance USA Ltd., 6.69%, due 03/01/06 478,125
60,000 Security Pacific Corp., 11.5%, due 11/15/00 70,425
-------------
TOTAL FINANCIAL (Cost: $1,076,727) 1,047,925
-------------
INDUSTRIAL (3.2%)
200,000 General Motors Corp., 9.125%, due 07/15/01 218,000
675,000 Northrop-Grumman Corp., 9.375%, due 10/15/24 702,000
100,000 Whirlpool Corp., 9.1%, due 03/15/04 110,875
-------------
TOTAL INDUSTRIAL (Cost: $979,918) 1,030,875
-------------
RETAIL (1.0%)
90,000 May Department Stores Company, 9.75%, due 02/15/21 106,875
200,000 J. C. Penney Company, Inc., 9.05%, due 03/01/01 217,000
-------------
TOTAL RETAIL (Cost: $297,580) 323,875
-------------
TRANSPORTATION (Cost: $1,127,320) (4.0%)
1,150,000 United Air Lines, 9.56%, due 10/19/18 1,264,241
-------------
U.S. TREASURY OBLIGATIONS (38.1%)
1,570,000 United States Treasury Bonds, 7.5%, due 12/31/96 1,590,300
1,875,000 United States Treasury Bonds, 7.5%, due 02/15/05 1,971,938
815,000 United States Treasury Bonds, 12%, due 08/15/13 1,151,546
1,480,000 United States Treasury Bonds, 10.75%, due 08/15/05 1,884,750
4,570,000 United States Treasury Notes, 5%, due 01/31/98 4,492,493
290,000 United States Treasury Notes, 5.5%, due 11/15/98 285,421
470,000 United States Treasury Notes, 8.125%, due 02/15/98 486,224
500,000 United States Treasury Strips, 0%, due 05/15/02 339,780
-------------
TOTAL U. S. TREASURY OBLIGATIONS (Cost: $12,407,878) 12,202,452
-------------
UTILITY - ELECTRIC & GAS (Cost: $458,955) (1.4%)
460,000 Pacificorp., 6.75%, due 04/01/05 445,050
-------------
TOTAL FIXED INCOME SECURITIES (Cost: $31,487,738) (97.2%) 31,071,329
-------------
</TABLE>
See accompanying Notes to Financial Statements.
8
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1996
<TABLE>
<CAPTION>
Principal
Amount FIXED INCOME SECURITIES Value
- -------------- ----------------------- -------------
<S> <C> <C>
SHORT-TERM INVESTMENTS (Cost $1,881,089) (5.9%)
-----------------------------------------------
$ 1,881,089 Bank of New York Depositary Reserve, 4.4%, due 05/01/96 $ 1,881,089
-------------
TOTAL INVESTMENTS (Cost: $33,368,827) (103.1%) 32,952,418
LIABILITIES IN EXCESS OF OTHER ASSETS (-3.1%) (1,001,170)
-------------
NET ASSETS (100%) $ 31,951,248
=============
</TABLE>
See accompanying Notes to Financial Statements.
9
<PAGE>
TCW Galileo High Yield Bond Fund
SCHEDULE OF INVESTMENTS (Unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
Principal
Amount CORPORATE FIXED INCOME SECURITIES Value
- -------------- --------------------------------- -------------
<S> <C> <C>
CONSUMER NON-CYCLICALS (12.1% of Net Assets)
Cable (3.0%)
$ 500,000 Century Communications Corp., 9.5%, due 08/15/00 $ 505,625
500,000 Comcast Corp., 9.125%, due 10/15/06 492,500
400,000 Comcast Corp., 9.375%, due 05/15/05 402,000
685,000 Continental Cablevision, Inc., 8.875%, due 09/15/05 729,525
950,000 Rogers Cablesystems, 10%, due 03/15/05 967,813
-------------
Total Cable 3,097,463
-------------
Food and Drug Retailers (3.3%)
125,000 Dominick's Finer Foods, 10.875%, due 05/01/05 130,937
1,000,000 Penn Traffic Company, 10.25%, due 02/15/02 965,000
1,000,000 Penn Traffic Company, 11.5%, due 04/15/06 1,027,500
560,000 Ralphs Grocery Company, 10.45%, due 06/15/04 550,200
710,000 Ralphs Grocery Company, 11%, due 06/15/05 662,075
-------------
Total Food and Drug Retailers 3,335,712
-------------
Health and Hospital Management (2.9%)
825,000 Dade International, Inc., (144A), 11.125%, due 05/01/06 825,000 *
760,000 Integrated Health Services, Inc., 10.75%, due 07/15/04 790,400
370,000 Ornda Healthcorp, 11.375%, due 08/15/04 413,475
855,000 Ornda Healthcorp, 12.25%, due 05/15/02 927,675
-------------
Total Health and Hospital Management 2,956,550
-------------
Other Consumer Non-Cyclicals (2.9%)
155,000 American Safety Razor Company, 9.875%, due 08/01/05 158,100
475,000 Cott Corp., 9.375%, due 07/01/05 464,313
1,090,000 La Petite Holdings, Inc., 9.625%, due 08/01/01 1,013,700
250,000 Revlon Consumer Products Corp., 9.5%, due 06/01/99 253,125
1,000,000 Revlon Consumer Products Corp., 10.5%, due 02/15/03 1,022,500
-------------
Total Other Consumer Non-Cyclicals 2,911,738
-------------
TOTAL CONSUMER NON-CYCLICALS (Cost: $12,251,531) 12,301,463
-------------
CONSUMER CYCLICALS (26.2%)
Auto Parts (1.0%)
920,000 Motorwheel Corp., 11.5%, due 03/01/00 972,900
-------------
Entertainment & Leisure (0.8%)
770,000 United Artists Theatre Circuit, Inc., 11.5%, due 05/01/02 823,145
-------------
</TABLE>
* Restricted security. (See Note 6)
See accompanying Notes to Financial Statements.
10
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1996
<TABLE>
<CAPTION>
Principal
Amount CORPORATE FIXED INCOME SECURITIES Value
- -------------- --------------------------------- -------------
<S> <C> <C>
Gaming (10.1%)
$ 485,000 Aztar Corp., 13.75%, due 10/01/04 $ 543,200
1,735,000 Bally's Grand, Inc., Series B, 10.375%, due 12/15/03 1,793,556
1,635,000 Bally's Park Place, Inc., 9.25%, due 03/15/04 1,655,438
1,170,000 California Hotel Finance Corp., 11%, due 12/01/02 1,235,812
1,285,000 Fitzgerald's Gaming Corp., 13%, due 12/31/02 1,207,900
760,000 Grand Casinos, Inc., 10.125%, due 12/01/03 798,000
950,000 Griffin Gaming, Inc., Variable Rate, due 06/30/00 902,500
1,060,000 Harrah's Operations, Inc., 10.875%, due 04/15/02 1,142,150
1,000,000 Trump Atlantic City Funding, Inc., 11.25%, due 05/01/06 1,022,500
-------------
Total Gaming 10,301,056
-------------
Lodging (3.0%)
500,000 HMC Acquisition Properties, Inc., (144A), 9%, due 12/15/07 462,500 *
488,000 John Q. Hammons Hotels, L.P., 8.875%, due 02/15/04 468,480
1,025,000 La Quinta Motor Inns, 9.25%, due 05/15/03 1,060,875
1,070,000 Red Roof Inns, Inc., Series B, 9.625%, due 12/15/03 1,032,550
-------------
Total Lodging 3,024,405
-------------
Media (7.4%)
1,675,000 Ackerley Communications, Inc., 10.75%, due 10/1/03 1,742,000
700,000 Adams Outdoor Advertising, L.P., 10.75%, due 03/15/06 710,500
2,000,000 American Media Operation, 11.625%, due 11/15/04 2,000,000
900,000 Chancellor Radio Broadcasting Company, 9.375%, due 10/01/04 864,000
1,085,000 Garden State Newspaper Company, 12%, due 07/01/04 1,122,975
975,000 Heritage Media Corp., 11%, due 06/15/02 1,039,594
-------------
Total Media 7,479,069
-------------
Publishing (0.7%)
695,000 K-III Communications Corp., 10.625%, due 05/01/02 729,750
-------------
Restaurants (0.7%)
800,000 Foodmaker, 1993A Corp., Series B, 9.75%, due 11/01/03 736,000
-------------
Retailers (0.5%)
585,000 Orchard Supply Hardware Stores Corp., 9.375%, due 02/15/02 565,988
-------------
</TABLE>
* Restricted security. (See Note 6)
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
- -------------- --------------------------------- -------------
<S> <C> <C>
Transportation (1.7%)
$ 810,000 International Shipholding Corp., 9%, due 07/01/03 $ 789,750
680,000 Moran Transportation, Inc., 11.75%, due 07/15/04 673,200
230,000 US Air, Inc., Senior Secured Pass Thru Certificate, 9.625%, due 09/01/03 220,800
-------------
Total Transportation 1,683,750
-------------
Other Consumer Cyclicals (0.3%)
300,000 Sealy Corp., 9.5%, due 05/01/03 291,750
-------------
TOTAL CONSUMER CYCLICALS (Cost: $26,228,218) 26,607,813
-------------
BASIC MATERIALS (21.1%)
Chemicals (4.9%)
820,000 Borden Chemical and Plastics, L.P., 9.5%, due 05/01/05 828,200
1,775,000 NL Industries, Inc., 11.75%, due 10/15/03 1,837,125
1,000,000 Plains Resources, Inc., (144A), Senior Subordinated Notes, 10.25%,
due 03/15/06 1,015,000 *
1,300,000 Viridian, Inc., 9.75%, due 04/01/03 1,342,250
-------------
Total Chemicals 5,022,575
-------------
Energy (7.2%)
1,200,000 Chesapeake Energy Corp., 10.5%, due 06/01/02 1,267,500
1,000,000 Chesapeake Energy Corp., 12%, due 03/01/01 1,087,500
970,000 Flores and Rucks, Inc., 13.5%, due 12/01/04 1,110,650
1,000,000 Giant Industries, Inc., 9.75%, due 11/15/03 997,500
1,200,000 Maxus Energy Corp., 9.875%, due 10/15/02 1,182,000
1,500,000 Petroleum Heat & Power Company, Inc., 12.25%, due 02/01/05 1,650,000
-------------
Total Energy 7,295,150
-------------
Forest Products and Paper (6.1%)
350,000 Container Corporation of America, 10.75%, due 05/01/02 353,500
500,000 Container Corporation of America, 11.25%, due 05/01/99 515,000
2,150,000 Malette, Inc., 12.25%, due 07/15/04 2,214,500
865,000 Rainy River Forest Products, Inc., 10.75%, due 10/15/01 919,062
890,000 Stone Consolidated Corp., 10.25%, due 12/15/00 927,825
1,300,000 Stone Container Corp., 10.75%, due 10/01/02 1,309,750
-------------
Total Forest Products and Paper 6,239,637
-------------
</TABLE>
* Restricted security. (See Note 6)
See accompanying Notes to Financial Statements.
12
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1996
<TABLE>
<CAPTION>
Principal
Amount CORPORATE FIXED INCOME SECURITIES Value
- -------------- --------------------------------- -------------
<S> <C> <C>
Metals and Mining (2.9%)
$ 789,000 Carbide Graphite Group, Inc., 11.5%, due 09/01/03 $ 846,203
700,000 Great Lakes Carbon Corp., 10%, due 01/01/06 714,000
345,000 Inland Steel, Inc., 12.75%, due 12/15/02 384,675
990,000 Northwestern Steel and Wire Company, 9.5%, due 06/15/01 962,775
-------------
Total Metals and Mining 2,907,653
-------------
TOTAL BASIC MATERIALS (Cost: $21,234,945) 21,465,015
-------------
INDUSTRIALS (28.6%)
Building Materials and Construction (0.4%)
425,000 U.S. Home Corp., 9.75%, due 06/15/03 421,812
-------------
Business Services and Distribution (8.6%)
2,185,000 Allied Waste Industries, Inc., 12%, due 02/01/04 2,365,263
930,000 Big Flower Press, Inc., 10.75%, due 08/01/03 930,000
720,000 Data Documents, Inc., 13.5%, due 07/15/02 806,400
660,000 Earle M. Jorgensen Company, 10.75%, due 03/01/00 656,700
630,000 Envirosource, Inc., 9.75%, due 06/15/03 567,000
1,265,000 Mid-American Waste Systems, Inc., 12.25%, due 02/15/03 809,600 **
2,315,000 Williamhouse Regency of Delaware, Inc., (144A), 13%, due 11/15/05 2,598,587 *
-------------
Total Business Services and Distribution 8,733,550
-------------
Capital Goods (0.7%)
730,000 Terex Corp., Units, (144A), 13.75%, due 05/15/02 733,650 *
-------------
Communication Services (7.2%)
755,000 MFS Communications, Inc., 9.375%, Step-up, due 01/15/04 575,688
1,730,000 Mobile Telecommunications Corp., 13.5%, due 12/15/02 1,807,850
1,000,000 Mobilemedia Communications Corp., 9.375%, due 11/01/07 957,500
415,000 Paging Network, Inc., 11.75%, due 05/15/02 453,387
500,000 Pan Am Sat, L.P., 9.75%, due 08/01/00 525,000
830,000 Rogers Cantel Mobile Communications, Inc., 10.75%, due 11/01/01 865,275
1,000,000 Rogers Communications, Inc., 9.125%, due 01/15/06 952,500
940,000 Telex Communications, Inc., 12%, due 07/15/04 1,001,100
205,000 USA Mobile Communications, Inc., 9.5%, due 02/01/04 197,825
-------------
Total Communication Services 7,336,125
-------------
</TABLE>
* Restricted security. (See Note 6)
** Non-income producing.
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
- -------------- --------------------------------- -------------
<S> <C> <C>
Containers and Packaging (4.1%)
$ 2,000,000 Owens-Illinois, Inc., 11%, due 12/01/03 $ 2,185,000
830,000 Plastic Containers, Inc., 10.75%, due 04/01/01 834,150
1,110,000 Sweetheart Cup Corp., 9.625%, due 09/01/00 1,121,100
-------------
Total Containers and Packaging 4,140,250
-------------
Miscellaneous Manufacturing (7.6%)
580,000 American Rice, Inc. 13%, due 07/31/02 527,800
800,000 BE Aerospace, 9.75%, due 03/01/03 818,000
570,000 Communications and Power Industries, Inc., 12%, due 08/01/05 604,200
1,500,000 Foamex L.P., 11.25%, due 10/01/02 1,515,000
695,000 NEWFLO Corp., 13.25%, due 11/15/02 733,225
1,115,000 PMI Acquisition Corp., 10.25%, due 09/01/03 1,106,638
1,000,000 Rohr Industries, Inc., 11.625%, due 05/15/03 1,101,250
1,255,000 Talley Manufacturing and Technology, Inc., 10.75%, due 10/15/03 1,267,550
-------------
Total Miscellaneous Manufacturing 7,673,663
-------------
TOTAL INDUSTRIALS (Cost: $29,223,153) 29,039,050
-------------
CREDIT SENSITIVE (6.0%)
Financial Services and Institutions (5.0%)
1,310,000 American Annuity Group, Inc., 11.125%, due 02/01/03 1,421,350
1,250,000 CDV Acquisition, 9.75%, due 02/15/03 1,317,187
1,000,000 First Nationwide Holdings, (144A), 12.5%, due 04/15/03 1,020,000 *
630,000 Reliance Group Holdings, Inc., 9%, due 11/15/00 628,425
690,000 Trizec Finance Corp., 10.875%, due 10/15/05 699,488
-------------
Total Financial Services and Institutions 5,086,450
-------------
Utilities (1.0%)
555,487 Midland Cogeneration Ventures, L.P., Series C-91, 10.33%, due 07/23/02 579,095
124,612 Midland Cogeneration Ventures, L.P., Series C-94, 10.33%, due 07/23/02 129,908
290,000 Texas New Mexico Power, 10.75%, due 09/15/03 305,950
-------------
Total Utilities 1,014,953
-------------
TOTAL CREDIT SENSITIVE (Cost: $5,964,274) 6,101,403
-------------
MULTI-INDUSTRY (1.4%)
660,000 Bell & Howell Group, Inc., 10.75%, due 10/01/02 707,850
730,000 Valcor, Inc., 9.625%, due 11/01/03 684,375
-------------
TOTAL MULTI-INDUSTRY (Cost: $1,411,726) 1,392,225
-------------
TOTAL CORPORATE FIXED INCOME SECURITIES
(Cost: $96,313,847) (95.4%) 96,906,969
-------------
</TABLE>
* Restricted security. (See Note 6)
See accompanying Notes to Financial Statements.
14
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1996
<TABLE>
<CAPTION>
Number of
Shares, Rights
or Warrants EQUITY SECURITIES Value
- ---------------- ----------------- -------------
<S> <C> <C>
19,220 Edisto Resources Corp., (Restricted Security), Common Stock $ 144,150 * **
300 Haynes International Corp., (Private Placement), Common Stock 1,200 * **
100 PST Holdings, Inc., Common Stock 100 **
3,654 Salant Corp., Common Stock 15,073 **
429 Terex Corp., Stock Appreciation Rights, expires 07/01/97 21 **
555 Terex Corp., Stock Appreciation Rights, (144A), expires 07/31/96 56 * **
17,349 Transamerican Refining, Warrants, expires 02/15/02 39,035 **
-------------
TOTAL EQUITY SECURITIES (Cost: $239,444) (0.2%) 199,635
-------------
Principal
Amount SHORT-TERM INVESTMENTS (Cost: $5,686,660) (5.6%)
- --------------- ------------------------------------------------
$ 5,686,660 Bank of New York Depositary Reserve, 4.4%, due 05/01/96 5,686,660
-------------
TOTAL INVESTMENTS (Cost $102,239,951) (101.2%) 102,793,264
LIABILITIES IN EXCESS OF OTHER ASSETS (-1.2%) (1,261,591)
-------------
NET ASSETS (100%) $ 101,531,673
=============
</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
- --------------- ----------------------- -------------
<S> <C> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS -
FIXED RATE (19.3% of Net Assets)
$ 1,813 CMO Mortgage Investors Trust (5-J), 1225.2%, due 12/22/20, (I/O) $ 50,390
3,189 CMO Mortgage Investors Trust (6-J), 1752.4%, due 02/22/21, (I/O) 117,384
2,598,799 Federal Home Loan Mortgage Corp. (1298-E), 7%, due 06/15/04, (PAC) 2,602,489
1,102,376 Federal Home Loan Mortgage Corp. (1087-G), 8.5%, due 08/15/20, (PAC) 1,119,903
1,011,586 Federal National Mortgage Association (93-201-BA), 4.625%,
due 05/25/08, (PAC) 1,002,401
750,000 Federal National Mortgage Association (92-152-K), 7%, due 04/25/99 753,878
6,900,487 Federal National Mortgage Association (91-83-G), 8.8%,
due 11/25/19, (PAC) 6,980,602
3,297,712 Ryland Acceptance Corporation Four (63-D), 8.75%, due 04/01/19 3,390,048
12,160 Ryland Acceptance Corporation Four (61-A), 8.9%, due 12/01/08 12,134
1,462,254 Sears Mortgage Securities (88-A-A2), 0.658%, due 05/25/18, (I/O) 14,915
-------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS -
FIXED RATE (Cost: $16,932,657) 16,044,144
-------------
COLLATERALIZED MORTGAGE OBLIGATIONS -
VARIABLE RATE (18.9%)
86,123 Columbia Savings and Loan (88-1A), 7.06%, due 08/25/18 85,692
142,507 Guardian Savings and Loan Association (88-1-A),
6.8684%, due 07/25/18 121,131
331,591 Guardian Savings and Loan Association (88-3-A),
7.1087%, due 11/25/18 281,853
356,830 Guardian Savings and Loan Association (89-3-A),
7.7333%, due 05/25/19 303,306
1,712,262 Guardian Savings and Loan Association (89-4-A),
7.6336%, due 07/25/19 1,626,649
1,678,407 Guardian Savings and Loan Association (89-5-A),
7.7914%, due 07/25/19 1,594,487
88,662 Merrill Lynch Trust (26-B), 6.2%, due 07/01/16 88,205
355,197 Residential Funding Mortgage Securities I (89-4B-B), 6.97%,
due 07/25/19 342,987
4,233,904 Resolution Trust Corp. (92-1-A2), 7.5415%, due 08/25/20 4,227,553
6,641,714 Resolution Trust Corp. (92-M4-A3), 8.23%, due 09/25/21 6,467,369
5,820 Resolution Trust Corp. (91-6-C2), 2,442.8%, due 09/25/28, (I/O) 245,922
3,323 Resolution Trust Corp. (91-6-D2), 3,135.7%, due 08/25/20, (I/O) 125,541
216,473 Western Federal Savings and Loan Association (88-9-A),
6.9322%, due 12/25/18 216,067
-------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS-
VARIABLE RATE (Cost: $17,335,113) 15,726,762
-------------
</TABLE>
I/O - Interest Only security.
PAC - Planned Amortization Class.
See accompanying Notes to Financial Statements.
16
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1996
<TABLE>
<CAPTION>
Principal
Amount FIXED INCOME SECURITIES Value
- -------------- ----------------------- -------------
<S> <C> <C>
NON-AGENCY VARIABLE RATE
PASS-THROUGH SECURITIES (1.7%)
$ 1,347,790 Greenwich Capital Acceptance, Inc. (91-03),
(Private Placement), 8.1953%, due 08/25/19 $ 1,307,357 *
119,741 National Bank of Washington, (Private Placement),
7.9412%, due 01/25/19 120,938 *
-------------
TOTAL NON-AGENCY VARIABLE RATE PASS-
THROUGH SECURITIES (Cost: $1,457,458) 1,428,295
-------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - FIXED RATE
PASS-THROUGH SECURITIES (1.2%)
177,628 Federal Home Loan Mortgage Corp., Gold Pool #M11777,
9%, due 11/01/96 179,183
153,970 Federal Home Loan Mortgage Corp., Pool #212346,
9.5%, due 08/01/01 161,620
640,037 Federal National Mortgage Association, Pool #163492,
8.5%, due 05/01/16 654,041
-------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS -
FIXED RATE PASS-THROUGH SECURITIES (Cost: $1,010,185) 994,844
-------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - VARIABLE RATE
PASS-THROUGH SECURITIES (48.5%)
5,000,000 Federal Home Loan Mortgage Corp., TBA, 5.375% 4,979,700 (a)
86,246 Federal Home Loan Mortgage Corp., Pool #770584,
7.375%, due 05/01/19 86,230
2,438,181 Federal Home Loan Mortgage Corp., Pool #410013,
7.522%, due 12/01/24 2,484,043
3,044,170 Federal Home Loan Mortgage Corp., Pool #124681,
7.531%, due 01/01/23 3,102,100
3,391,301 Federal Home Loan Mortgage Corp., Pool #303172,
7.597%, due 12/01/24 3,465,571
180,968 Federal Home Loan Mortgage Corp., Pool #405877,
7.749%, due 12/01/20 186,357
165,465 Federal Home Loan Mortgage Corp., Pool #865006,
7.851%, due 08/01/18 169,223
3,769,993 Federal Home Loan Mortgage Corp., Pool #407166,
7.961%, due 09/01/22 3,839,248
158,561 Federal Home Loan Mortgage Corp., Pool #865009,
8.009%, due 11/01/18 160,430
229,512 Federal Home Loan Mortgage Corp., Pool #865270,
8.042%, due 12/01/18 233,567
301,172 Federal Home Loan Mortgage Corp., Pool #865275,
8.532%, due 02/01/19 310,306
686,572 Federal Home Loan Mortgage Corp., Pool #310005,
9.615%, due 11/01/19 709,529
4,707,167 Federal National Mortgage Association, Pool #318764,
6.144%, due 08/01/25 4,860,856
</TABLE>
* Restricted security. (See Note 6)
(a) Securities purchased on a forward commitment with an approximate principal
amount. The actual principal amount and maturity date will be determined
upon settlement when the securities are delivered to the Fund.
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
- -------------- ----------------------- --------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS - VARIABLE RATE
PASS-THROUGH SECURITIES (continued)
$ 1,640,311 Federal National Mortgage Association, Pool #303334,
7.606%, due 04/01/25 $ 1,681,073
2,421,431 Federal National Mortgage Association, Pool #328747,
7.645%, due 10/01/24 2,478,044
136,804 Federal National Mortgage Association, Pool #96193,
7.728%, due 09/01/18 138,752
3,005,645 Federal National Mortgage Association, Pool #303063,
7.808%, due 09/01/24 3,078,261
472,901 Federal National Mortgage Association, Pool #111365,
8.059%, due 09/01/19 488,176
3,874,342 Government National Mortgage Association II, Pool #8699,
6%, due 09/20/25 3,878,022
3,965,732 Government National Mortgage Association II, Pool #8595,
6.5%, due 02/20/25 3,975,607
-------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS -
VARIABLE RATE PASS-THROUGH SECURITIES (Cost: $40,280,323) 40,305,095
-------------
TOTAL FIXED INCOME SECURITIES (Cost: $77,015,736) (89.6%) 74,499,140
-------------
SHORT-TERM INVESTMENTS (Cost: $20,638,805) (24.8%)
--------------------------------------------------
20,638,805 Bank of New York Depositary Reserve, 4.4%, due 05/01/96 20,638,805
-------------
TOTAL INVESTMENTS (Cost: $97,654,541) (114.4%) 95,137,945
LIABILITIES IN EXCESS OF OTHER ASSETS (-14.4%) (11,957,944)
-------------
NET ASSETS (100%) $ 83,180,001
=============
</TABLE>
See accompanying Notes to Financial Statements.
18
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo Long-Term Mortgage Backed Securities Fund
April 30, 1996
SCHEDULE OF INVESTMENTS (Unaudited)
- ----------------------------------
<TABLE>
<CAPTION>
Principal
Amount FIXED INCOME SECURITIES Value
- -------------- ----------------------- -------------
<S> <C> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS -
FIXED RATE (45.6% of Net Assets)
$ 2,000,000 CMC Securities Corporation III (94-A-A12), 6.75%,
due 02/25/24 (PAC) $ 1,828,500
195,695 Federal Home Loan Mortgage Corp. (1484-K), 6%,
due 01/15/98 195,239
1,875,170 Federal Home Loan Mortgage Corp. (1688-M), 6%, due 08/15/13 1,778,580
3,750,000 Federal Home Loan Mortgage Corp. (1796-D), 6.5%, due 11/15/23 3,397,238
2,000,000 Federal Home Loan Mortgage Corp. (1665-M), 6.5%, due 01/15/24 1,875,240
3,144,107 Federal Home Loan Mortgage Corp. (1717-MA), 6.5%, due 04/15/24 2,904,117
2,959,618 Federal Home Loan Mortgage Corp. - Government National Mortgage
Association (43-OA), 6.5%, due 07/17/23 2,834,456
1,532,245 Federal National Mortgage Association (92-194-D), 5.75%,
due 09/25/13, (PAC) 1,525,564
2,000,000 Federal National Mortgage Association (93-X-130A-NA), 6.5%, due 05/25/23 1,809,580
1,894,734 Federal National Mortgage Association (93-223-EA), 6.5%,
due 12/25/23, (PAC) 1,706,227
500,000 Federal National Mortgage Association (93-2-B), 7.2%, due 11/25/03 504,865
2,873,912 Government National Mortgage Association (94-2-Z), 7.9913%,
due 07/16/24 2,700,988
2,094,803 Prudential Home Mortgage Securities (93-54-A5), 6.5%,
due 01/25/24, (PAC) 2,087,722
3,997,226 Ryland Acceptance Corporation Four (63-D), 8.75%, due 04/01/19 4,109,149
2,656,155 Securitized Asset Sales, Inc.(95-4-A7), 7.5%, due 11/25/25 2,521,464
-------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS -
FIXED RATE (Cost: $31,736,440) 31,778,929
-------------
COLLATERALIZED MORTGAGE OBLIGATIONS -
VARIABLE RATE (10.7%)
1,500,000 CMC Securities Corporation III (94-A-A22), 6.986%, due 02/25/24, (I/F) 786,563
711,172 Federal Home Loan Mortgage Corp. (1646-MC), 7.2829%,
due 10/15/22 (I/F) (PAC) 520,635
2,000,000 Federal National Mortgage Association (93-X-225C-VS),
6.4074%, due 12/25/23, (I/F) 1,070,820
2,288,691 Federal National Mortgage Association (93-189-S), 7.423%,
due 10/25/23 (I/F) 1,350,785
1,000,000 Federal National Mortgage Association (93-202-SZ),
10%, due 11/25/23, (I/F) (PAC) 714,300
2,886,645 Federal National Mortgage Association (93-179-SL),
10.5%, due 10/25/23, (I/F) 2,183,689
975,414 Prudential Home Mortgage Securities (93-47-A8), 10.063%,
due 12/25/23, (I/F) 834,330
237 TMAC Mortgage Securities Corp. (3-A), 6.1%, due 04/20/13 237
-------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS -
VARIABLE RATE (Cost: $8,855,771) 7,461,359
-------------
</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.
19
<PAGE>
TCW Galileo Long-Term Mortgage Backed Securities Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount FIXED INCOME SECURITIES Value
- -------------- ----------------------- -------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -
FIXED RATE PASS-THROUGH SECURITIES (31.2%)
$ 1,693,430 FHA (#000-13002), 7.125%, due 03/01/04 $ 1,594,771
3,192,155 FHA (#012-11218), 7.125%, due 04/01/29 3,065,491
2,897,442 FHA (#012-11216), 7.185%, due 05/01/29 2,786,093
1,942,255 FHA (#044-10592), 7.625%, due 09/01/22 1,908,867
1,375,021 FHA (#081-11017), 7.75%, due 04/01/24 1,355,688
2,570,667 FHA (#112-43055), 9.25%, due 05/25/32 2,678,300
27,531 Federal Home Loan Mortgage Corp., Pool #250685, 6.5%, due 10/01/99 26,017
1,635,640 Federal National Mortgage Association, Pool #310001, 6%, due 09/01/00 1,605,478
18,215 Federal National Mortgage Association, Pool #62420, 7.5%, due 03/01/06 18,113
3,743,090 Federal National Mortgage Association, Pool #303786, 7.5%, due 02/01/11 3,765,324
24,686 Federal National Mortgage Association, Pool #29542, 8.75%, due 07/01/09 25,905
1,426,714 Government National Mortgage Association, Pool #365618, 7%, due 10/15/33 1,342,452
1,572,825 Government National Mortgage Association, Pool #351003, 7.5%, due 07/15/28 1,520,230
64,825 Government National Mortgage Association, Pool #3933, 8.25%, due 07/15/04 67,074
18,583 Government National Mortgage Association, Pool #176192, 8.25%, due 12/15/01 18,821
14,378 Government National Mortgage Association, Pool #217350, 9.25%, due 08/15/00 14,989
-------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS - FIXED RATE
PASS-THROUGH SECURITIES (Cost: $22,453,106) 21,793,613
-------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -
VARIABLE RATE PASS-THROUGH SECURITIES (6.3%)
1,965,352 Federal Home Loan Mortgage Corp., Pool #846089, 7.485%, due 09/01/24 2,004,541
2,364,239 Federal National Mortgage Association, Pool #124410, 7.808%, due 07/01/22 2,415,354
-------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS - VARIABLE RATE
PASS-THROUGH SECURITIES (Cost: $4,410,443) 4,419,895
-------------
TOTAL FIXED INCOME SECURITIES (Cost: $67,455,760) (93.8%) 65,453,796
-------------
SHORT-TERM INVESTMENTS (Cost: $3,828,918) (5.5%)
------------------------------------------------
3,828,918 Bank of New York Depositary Reserve, 4.4%, due 05/01/96 3,828,918
-------------
TOTAL INVESTMENTS (Cost: $71,284,678) (99.3%) 69,282,714
EXCESS OF OTHER ASSETS OVER LIABILITIES (0.7% ) 519,806
-------------
NET ASSETS (100%) $ 69,802,520
=============
</TABLE>
See accompanying Notes to Financial Statements.
20
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo Core Equity Fund
April 30, 1996
SCHEDULE OF INVESTMENTS (Unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
CONSUMER STAPLES (22.9% of Net Assets)
Cosmetics and Household Products (2.6%)
50,000 Kimberly-Clark Corp. $ 3,631,250
23,100 Procter & Gamble Company 1,951,950
-------------
Total Cosmetics and Household Products 5,583,200
-------------
Foods, Hotels And Restaurants (0.9%)
57,800 Boston Chicken, Inc. 1,849,600 **
-------------
Leisure, Entertainment, Photo and Media (7.1%)
174,900 Brunswick Corp. 3,847,800
111,000 Electronic Arts, Inc. 2,969,250
133,400 News Corp. Ltd. 3,134,900
122,366 Viacom, Inc. Class B 5,017,006
-------------
Total Leisure, Entertainment, Photo and Media 14,968,956
-------------
Drugs & Hospital Supply (1.5%)
111,700 Ivax Corp. 3,253,263
-------------
Healthcare (7.4%)
82,000 Amgen, Inc. 4,715,000
125,600 Columbia/HCA Healthcare Corp. 6,672,500
27,000 Johnson & Johnson 2,497,500
35,500 Oxford Health Plans, Inc. 1,792,750
-------------
Total Healthcare 15,677,750
-------------
Retail (2.7%)
54,700 CUC International, Inc. 1,798,262
81,466 Home Depot, Inc. 3,859,452
-------------
Total Retail 5,657,714
-------------
Services - Business (0.7%)
36,600 Corporate Express, Inc. 1,367,925
-------------
TOTAL CONSUMER STAPLES (Cost: $42,910,034) 48,358,408
-------------
CONSUMER CYCLICALS (9.0%)
Autos and Auto Parts (9.0%)
127,800 Chrysler Corp. 8,019,450
62,235 Ford Motor Co. 2,232,681
153,300 Lear Seating Corp. 5,058,900
79,200 Magna International, Inc. 3,672,900
-------------
TOTAL CONSUMER CYCLICALS (Cost: $16,521,559) 18,983,931
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
21
<PAGE>
TCW Galileo Core Equity Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
CAPITAL GOODS (47.9%)
Aerospace and Conglomerates (6.8%)
96,300 Boeing Company $ 7,908,638
57,600 United Technologies Corp. 6,364,800
-------------
Total Aerospace and Conglomerates 14,273,438
-------------
Electronics - Semiconductors and Instruments (5.7%)
132,900 Intel Corp. 9,003,975
55,100 Texas Instruments, Inc. 3,113,150
-------------
Total Electronics - Semiconductors and Instruments 12,117,125
-------------
Electrical Instruments and Telecommunication Equipment (5.2%)
36,000 Ascend Communications, Inc. 2,214,000
49,200 Lucent Technologies, Inc. 1,728,150
116,100 Motorola, Inc. 7,111,125
-------------
Total Electrical Instruments and Telecommunication Equipment 11,053,275
-------------
Electrical Equipment (0.9%)
18,500 Cascade Communications Corp. 1,854,625
-------------
Information Processing (25.7%)
89,900 America Online, Inc. 5,753,600
121,400 Cisco Systems, Inc. 6,297,625
89,200 Computer Sciences Corp. 6,600,800
84,300 First Data Corp. 6,406,800
110,200 General Motors, Corp. 6,212,525
84,600 Hewlett Packard Company 8,957,025
51,500 Microsoft Corp. 5,838,812
118,600 Storage Technology Corp. 3,646,950
30,800 Xerox Corp. 4,512,200
-------------
Total Information Processing 54,226,337
-------------
Machinery and Infrastructure (3.6%)
69,700 American Standard Companies 1,969,025
42,200 Applied Materials, Inc. 1,688,000
60,200 Caterpillar, Inc. 3,852,800
-------------
Total Machinery and Infrastructure 7,509,825
-------------
TOTAL CAPITAL GOODS (Cost: $69,206,193) 101,034,625
-------------
</TABLE>
See accompanying Notes to Financial Statements.
22
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1996
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
BASIC INDUSTRIES (13.0%)
Transportation (13.0%)
79,800 AMR Corp. $ 7,122,150
74,561 Burlington Northern Santa Fe 6,524,088
87,900 Delta Air Lines, Inc. 7,064,962
43,300 Northwest Airlines Corp. 1,970,150
22,000 UAL Corp. 4,719,000
-------------
TOTAL BASIC INDUSTRIES (Cost: $17,933,275) 27,400,350
-------------
CREDIT SENSITIVE (7.2%)
Financial Services (7.2%)
86,300 Citicorp 6,796,125
95,500 Green Tree Financial Corp. 3,223,125
14,400 Marsh & McLennan Companies, Inc. 1,353,600
64,300 Merrill Lynch & Co., Inc. 3,882,112
-------------
TOTAL CREDIT SENSITIVE (Cost: $10,061,461) 15,254,962
-------------
TOTAL INVESTMENTS (Cost: $156,632,523) (100.0%) 211,032,276
EXCESS OF OTHER ASSETS OVER LIABILITIES (0.0%) 23,291
-------------
NET ASSETS (100.0%) $ 211,055,567
=============
</TABLE>
See accompanying Notes to Financial Statements.
23
<PAGE>
TCW Galileo Earnings Momentum Fund
SCHEDULE OF INVESTMENTS (Unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
CONSUMER STAPLES (44.1% of Net Assets)
Cosmetics and Household Products (0.5%)
11,000 USA Detergents, Inc. $ 451,000 **
-------------
Drugs & Hospital Supply (9.3%)
21,900 Biochem Pharma, Inc. 996,450 **
55,300 Chronimed, Inc. 1,375,587 **
15,700 Dura-Pharmaceuticals, Inc. 839,950 **
6,900 GalaGen, Inc. 62,100 **
27,300 Intelligent Medical Imaging, Inc. 273,000 **
52,300 Matrix Pharmaceuticals, Inc. 1,359,800 **
58,900 Noven Pharmaceuticals, Inc. 721,525 **
8,700 Perclose, Inc. 178,350 **
9,200 Pharmaceutical Products Development, Inc. 388,700 **
51,900 Safeskin Corp. 1,518,075 **
-------------
Total Drugs & Hospital Supply 7,713,537
-------------
Foods, Hotels and Restaurants (2.0%)
70,200 Landry's Seafood Restaurants, Inc. 1,649,700 **
-------------
Healthcare (13.9%)
30,300 Alpharma, Inc., Class A 738,562
43,900 AmeriSource Health Corp., Class A 1,580,400 **
54,700 Apria Healthcare Group, Inc. 1,859,800 **
28,000 Depotech Corp. 686,000 **
8,700 Housecall Medical Resources, Inc. 189,225 **
26,100 Inphynet Medical Management, Inc. 489,375 **
60,300 Isolyser Company, Inc. 1,070,325 **
12,200 MedCath, Inc. 475,800 **
8,000 NCS Healthcare, Inc. 268,000 **
24,700 Neoprobe Corp. 422,988 **
37,500 OccuSystems, Inc. 1,087,500 **
28,200 Total Renal Care Holdings, Inc. 1,078,650 **
15,600 Transition Systems, Inc. 378,300 **
39,300 Veterinary Centers of America, Inc. 1,198,650 **
-------------
Total Healthcare 11,523,575
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
24
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1996
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
Leisure, Entertainment, Photo and Media (4.1%)
64,300 CAI Wireless Systems, Inc. $ 442,063 **
11,300 Chancellor Corp. 288,150 **
11,800 Franklin Electronic Publishers, Inc. 296,475 **
34,500 Heritage Media Corp. 1,323,937 **
24,900 Norwood Promotional Products, Inc. 566,475 **
20,600 World Color Press, Inc. 494,400 **
-------------
Total Leisure, Entertainment, Photo and Media 3,411,500
-------------
Retail (9.5%)
30,000 Bed, Bath & Beyond, Inc. 1,771,875 **
46,800 Central Garden and Pet Company 497,250 **
4,300 Cost Plus, Inc. 102,125 **
25,100 Just for Feet, Inc. 1,201,662 **
28,700 Mossimo, Inc. 1,090,600 **
23,500 Oakley, Inc. 1,081,000 **
27,600 Proffitt's, Inc. 903,900 **
37,462 Staples, Inc. 711,778 **
21,800 Wilmar Industries, Inc. 517,750 **
-------------
Total Retail 7,877,940
-------------
Services - Business (4.8%)
31,500 Corporate Express, Inc. 1,177,313 **
20,400 Learning Tree International, Inc. 510,000 **
16,500 PIA Merchandising Services, Inc. 433,125 **
21,200 Stewart Enterprises, Inc., Class A 969,900
33,700 United Transnet, Inc. 897,263 **
-------------
Total Services - Business 3,987,601
-------------
TOTAL CONSUMER STAPLES (Cost:$24,091,709) 36,614,853
-------------
CAPITAL GOODS (44.9%)
Computer Software and Services (14.6%)
41,850 American Management Systems, Inc. 1,114,256 **
24,600 AXENT Technologies, Inc. 442,800 **
23,700 BDM International, Inc. 1,102,050 **
11,600 Ciber, Inc. 461,100 **
33,600 DecisionOne Corp. 848,400 **
18,900 Dialogic Corp. 878,850 **
1,600 Excite, Inc. 27,600 **
17,700 Filenet Corp. 991,200 **
11,800 Gensym Corp. 243,375 **
6,400 Infonautics, Inc. 84,800 **
14,300 ISOCOR 286,000 **
</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
- -------------- ----------------- -------------
<S> <C> <C>
Computer Software and Services (continued)
21,100 Madge Networks N.V. $ 622,450 **
12,000 Medic Computer Systems, Inc. 1,122,000 **
31,500 MDL Information Systems, Inc. 874,125 **
49,800 Nimbus CD International, Inc. 410,850 **
11,200 Planning Sciences International, PLC 270,200 **
11,700 Remedy Corp. 918,450 **
7,100 Security Dynamics Technologies, Inc. 599,950 **
22,000 Segue Software, Inc. 649,000 **
4,700 Sykes Enterprises, Inc. 166,850 **
-------------
Total Computer Software and Services 12,114,306
-------------
Electrical Equipment (2.4%)
29,300 AFC Cable Systems, Inc. 461,475 **
31,900 Memtec Ltd. (ADR) (Australia) 873,263
29,600 Sheldahl Company 662,300 **
-------------
Total Electrical Equipment 1,997,038
-------------
Electronics - Communication Equipment (9.2%)
51,700 Anicom, Inc. 788,425 **
29,000 Cidco, Inc. 1,036,750 **
51,900 ECI Telecommunications, Ltd. 1,355,887
29,900 Octel Communications Corp. 1,338,025 **
22,800 Omnipoint Corp. 684,000 **
27,900 Plantronics, Inc. 1,119,488 **
29,700 Premiere Technologies, Inc. 1,121,175 **
5,000 Premisys Communications, Inc. 218,750 **
-------------
Total Electronics - Communication Equipment 7,662,500
-------------
Electronics - Semiconductors and Instruments (4.3%)
33,500 ASM Lithography Holding N.V. (ADR) (Netherlands) 1,482,375 **
33,500 C.P. Clare Corp. 707,687 **
25,700 Digi International, Inc. 726,025 **
17,500 EPIC Design Technology, Inc. 599,375 **
-------------
Total Electronics - Semiconductors and Instruments 3,515,462
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
26
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1996
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
Information Processing (6.3%)
4,800 Affinity Technology $ 112,800 **
25,100 Baan Company N.V 1,506,000 **
19,600 CSG Systems International, Inc. 627,200 **
12,400 Citrix Systems, Inc. 967,200 **
2,000 Engineering Animation, Inc. 46,500 **
13,800 Individual, Inc. 327,750 **
4,300 Objective Systems Integrators, Inc. 191,350 **
7,100 Raptor Systems, Inc. 234,300 **
11,700 Saville Systems, PLC (ADR) (Ireland) 318,825 **
11,300 Sync Research, Inc. 223,175 **
14,300 Visioneer, Inc. 214,500 **
35,300 Worldtalk Communications Corp. 458,900 **
-------------
Total Information Processing 5,228,500
-------------
Office Equipment and Building Supplies (1.4%)
44,800 Cameron Ashely, Inc. 436,800
32,500 Xeikon N.V. (ADR) (Belgium) 751,563
-------------
Total Office Equipment and Building Supplies 1,188,363
-------------
Pollution Control (6.7%)
18,600 Culligan Water Technologies, Inc. 627,750 **
30,000 Molten Metal Technologies, Inc. 967,500 **
71,400 Tetra Technologies, Inc. 1,410,150 **
74,200 USA Waste Services, Inc. 1,929,200 **
20,800 U.S. Filter Corp. 639,600 **
-------------
Total Pollution Control 5,574,200
-------------
TOTAL CAPITAL GOODS (Cost: $24,977,336) 37,280,369
-------------
</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
- -------------- ----------------- -------------
<S> <C> <C>
BASIC INDUSTRIES (6.4%)
Chemicals (1.5%)
32,400 Landec Corp. $ 615,600 **
32,300 Mississippi Chemical Corp. 650,038
-------------
Total Chemicals 1,265,638
-------------
Energy and Oil Services (2.6%)
98,700 Carbo Ceramics, Inc. 2,122,050 **
-------------
Transportation (2.3%)
19,400 Atlas Air, Inc. 875,425 **
4,400 Eagle USA Airfreight, Inc. 133,375 **
33,200 Pittston Brink's Group 925,450
-------------
Total Transportation 1,934,250
-------------
TOTAL BASIC INDUSTRIES (Cost: $4,294,244) 5,321,938
-------------
CREDIT SENSITIVE (4.7%)
Banks/Financial Services (1.9%)
900 First USA Paymentech, Inc. 39,150 **
48,800 Glendale Federal Bank FSB 854,000 **
43,100 Vallicorp Holdings, Ltd. 635,725
-------------
Total Banks/Financial Services 1,528,875
-------------
Insurance (2.8%)
16,800 Amerin Corp. 380,100 **
23,100 CapMAC Holdings, Inc. 672,787
15,400 Meadowbrook Insurance Group, Inc. 479,325
31,700 PXRE Corp. 808,350
-------------
Total Insurance 2,340,562
-------------
TOTAL CREDIT SENSITIVE (Cost: $3,463,565) 3,869,437
-------------
TOTAL EQUITY SECURITIES (Cost: $56,826,854) (100.1%) 83,086,597
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
28
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1996
<TABLE>
<CAPTION>
Principal
Amount SHORT-TERM INVESTMENTS (Cost:$1,092,224) (1.3%) Value
- -------------- ----------------------------------------------- -------------
<S> <C> <C>
$ 1,092,224 Bank of New York Depositary Reserve, 4.4%, due 05/01/96 $ 1,092,224
-------------
TOTAL INVESTMENTS (Cost: $57,919,078) (101.4%) 84,178,821
LIABILITIES IN EXCESS OF OTHER ASSETS (-1.4%) (1,153,263)
-------------
NET ASSETS (100%) $ 83,025,558
=============
</TABLE>
See accompanying Notes to Financial Statements.
29
<PAGE>
TCW Galileo Small Cap Growth Fund
SCHEDULE OF INVESTMENTS (Unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
CONSUMER STAPLES (56.4% of Net Assets)
Beverages, Tobacco and Distillery (0.7%)
727 Boston Beer Company, Inc., Class A $ 13,723 **
43,300 Odwalla, Inc. 887,650 **
-------------
Total Beverages, Tobacco and Distillery 901,373
-------------
Cosmetics and Household Products (1.6%)
31,500 Sola International, Inc. 1,031,625 **
33,400 Thermolase Corp. 1,106,375 **
-------------
Total Cosmetics and Household Products 2,138,000
-------------
Drugs and Hospital Supply (4.4%)
26,300 Dura-Pharmaceuticals, Inc. 1,407,050 **
25,500 Gulf South Medical Supply, Inc. 1,032,750 **
16,000 Matrix Pharmaceuticals, Inc. 416,000 **
14,000 Pharmaceutical Products Development, Inc. 591,500 **
84,900 Safeskin Corp. 2,483,326 **
-------------
Total Drugs and Hospital Supply 5,930,626
-------------
Foods, Hotels and Restaurants (2.0%)
27,100 Apple South, Inc. 704,600
27,400 Boston Chicken, Inc. 876,800 **
22,500 Papa John's International, Inc. 1,109,532 **
-------------
Total Foods, Hotels and Restaurants 2,690,932
-------------
Healthcare (19.2%)
38,800 Access Health, Inc. 2,148,551 **
38,900 American Oncology Resources, Inc. 1,857,471 **
27,600 AmeriSource Health Corp., Class A 993,600 **
27,800 CRA Managed Care, Inc. 1,209,300 **
40,800 Genzyme Corp. Tissue Repair 561,000 **
3,700 Housecall Medical Resources, Inc. 80,475 **
17,300 IRIDEX Corp. 259,500 **
38,600 Isolyser Company, Inc. 685,150 **
30,600 Lincare Holdings, Inc. 1,187,663 **
44,700 Medaphis Corp. 2,061,788 **
32,400 MedCath, Inc. 1,263,600 **
32,000 Medpartners, Inc. 924,000 **
14,500 NCS HealthCare, Inc., Class A 485,750 **
26,500 Neoprobe Corp. 453,813 **
52,000 OccuSystems, Inc. 1,508,000 **
16,000 Omnicare, Inc. 960,000
35,600 Orthodontic Centers of America, Inc. 1,406,200 **
15,200 Oxford Health Plans, Inc. 767,600 **
17,500 Pediatrix Medical Group, Inc. 835,625 **
23,550 PhyCor, Inc. 1,159,838 **
34,400 Rotech Medical Corp. 1,427,600 **
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
30
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1996
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
Healthcare (Continued)
27,900 Summit Medical Systems, Inc. $ 624,262 **
1,000 Thermo Cardiosystems, Inc. 71,125 **
20,000 Total Renal Care Holdings, Inc. 765,000 **
11,000 Transition Systems, Inc. 266,750 **
2,600 United Dental Care, Inc. 102,050 **
52,000 Veterinary Centers of America, Inc. 1,586,000 **
-------------
Total Healthcare 25,651,711
-------------
Leisure, Entertainment, Photo and Media (6.8%)
600 American Radio Systems Corp. 20,250 **
10,800 Anchor Gaming 477,225 **
28,000 Clear Channel Communications, Inc. 1,897,000 **
49,700 Family Golf Centers, Inc. 1,416,450 **
17,400 Lin Television Corp. 578,550 **
24,400 Oakley, Inc. 1,122,400 **
3,800 Penske Motorsports, Inc. 114,950 **
15,100 Premiere Radio Networks, Inc. 222,725 **
15,950 Premiere Radio Networks, Inc., Class A 235,262 **
28,050 Regal Cinemas, Inc. 1,143,037 **
24,500 Scientific Games Holdings Corp. 802,375 **
49,900 Westwood One, Inc. 873,250 **
8,200 Young Broadcasting Corp. 243,950 **
-------------
Total Leisure, Entertainment, Photo and Media 9,147,424
-------------
Retail (11.2%)
20,900 Bed, Bath & Beyond, Inc. 1,234,407 **
22,000 Blyth Industries, Inc. 874,500 **
4,000 Cost Plus, Inc. 95,000 **
47,000 Heilig-Meyers Company 969,375
54,400 Just for Feet, Inc. 2,604,400 **
67,000 Kenneth Cole Productions, Inc. 1,340,000 **
29,800 K & G Men's Center, Inc. 543,850 **
42,600 Lewis Galoob Toys, Inc. 905,250 **
25,200 Marisa Christina, Inc. 648,900 **
51,800 Mossimo, Inc. 1,968,400 **
29,600 Petsmart, Inc. 1,313,500 **
16,300 Proffitt's, Inc. 533,825 **
33,000 Sunglass Hut International, Inc. 965,250 **
14,300 Tiffany & Company 933,075
-------------
Total Retail 14,929,732
-------------
Services - Business (10.5%)
36,600 AccuStaff, Inc. 1,088,850 **
27,800 Alternative Resources Corp. 1,007,750 **
20,800 Career Horizons, Inc. 733,200 **
9,900 CBT Group, PLC (ADR)(Ireland) 732,600 **
1,400 CKS Group, Inc. 43,750 **
</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
- -------------- ----------------- -------------
<S> <C> <C>
Services - Business (Continued)
52,200 Corporate Express, Inc. $ 1,950,975 **
11,300 Corrections Corporation of America 720,375 **
100,000 Gartner Group, Inc., Class A 3,425,000 **
21,700 Meta Group, Inc. 645,575 **
20,900 Outdoor Systems, Inc. 480,700 **
18,800 Robert Half International, Inc. 1,081,000 **
21,900 Romac International, Inc. 804,825 **
14,600 Sylvan Learning Systems, Inc. 565,750 **
27,400 United Transnet, Inc. 729,525 **
-------------
Total Services - Business 14,009,875
-------------
TOTAL CONSUMER STAPLES (Cost: $46,108,642) 75,399,673
-------------
CONSUMER CYCLICALS (0.6%)
Automotive and Automotive Parts (0.6%)
27,900 Miller Industries, Inc. 777,713 **
-------------
TOTAL CONSUMER CYCLICALS (Cost: $524,226) 777,713
-------------
CAPITAL GOODS (37.3%)
Computer Software and Services (12.0%)
14,400 ABR Information Services, Inc. 900,000 **
400 Arbor Software Corp. 30,800 **
28,600 Atria Software, Inc. 1,558,700 **
15,200 Cambridge Technology Partners, Inc. 1,022,200 **
29,300 Datastream Systems, Inc. 952,250 **
7,600 DecisionOne Corp. 191,900 **
9,601 Discreet Logic, Inc. 159,617 **
2,000 Excite, Inc. 34,500 **
20,900 Filenet Corp. 1,170,400 **
13,300 Inso Corp. 721,525 **
1,000 I2 Technologies, Inc. 40,750 **
61,900 Logic Works, Inc. 1,052,300 **
1,100 Lycos, Inc. 19,250 **
60,000 Macromedia, Inc. 2,261,250 **
22,600 Maxis, Inc. 553,700 **
10,800 Peoplesoft, Inc. 680,400 **
5,400 Planning Sciences International, PLC 130,275 **
17,100 Remedy Corp. 1,342,350 **
31,600 Security Dynamics Technologies, Inc. 2,670,200 **
12,000 Segue Software, Inc. 354,000 **
3,300 Sykes Enterprises, Inc. 117,150 **
600 Verity, Inc. 20,625 **
-------------
Total Computer Software and Services 15,984,142
-------------
Electrical Equipment (0.8%)
18,900 Memtec Ltd. (ADR) (Australia) 517,388
24,400 Sheldahl Company 545,950 **
-------------
Total Electrical Equipment 1,063,338
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
32
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1996
<TABLE>
<CAPTION>
Number of
Shares or
Warrants EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
Electronics - Communication Equipment (7.8%)
3,384 American Satellite Network, Inc., Warrants, expires 6/30/99 - **
34,100 Ascend Communications, Inc. $ 2,097,150 **
24,000 Cascade Communications Corp. 2,406,000 **
36,800 Cidco, Inc. 1,315,600 **
55,700 LCI International, Inc. 1,448,200 **
18,600 Microcom, Inc. 453,378 **
70,600 National TechTeam, Inc. 613,338
36,600 Premisys Communications, Inc. 1,601,250 **
15,000 TCSI Corp. 491,250 **
-------------
Total Electronics - Communication Equipment 10,426,166
-------------
Electronics - Semiconductors and Instruments (4.2%)
16,500 ASM Lithography Holding N.V. (ADR) (Netherlands) 730,125 **
49,800 C.P. Clare Corp. 1,052,025 **
56,600 EPIC Design Technology, Inc. 1,938,550 **
44,300 Maxim Integrated Products, Inc. 1,517,275 **
21,000 Methode Electronics, Inc., Class A 351,750
-------------
Total Electronics - Semiconductors and Instruments 5,589,725
-------------
Information Processing (12.1%)
3,000 Affinity Technology Group 70,500 **
24,700 Aspen Technology, Inc. 1,370,850 **
18,563 Astea International, Inc. 547,608 **
4,200 Business Objects S.A. (ADR)(France) 363,300 **
19,000 Citrix Systems, Inc. 1,482,000 **
6,200 Clarify, Inc. 247,225 **
27,500 Computer Management Sciences, Inc. 749,375 **
61,700 CSG Systems International, Inc. 1,974,400 **
12,200 Engineering Animation, Inc. 283,650 **
19,600 HNC Software, Inc. 730,100 **
18,200 HPR, Inc. 782,600 **
700 IDX Systems Corp. 25,725 **
20,400 Individual, Inc. 484,500 **
46,800 Lumisys, Inc. 1,380,600 **
15,600 Medic Computer Systems, Inc. 1,458,600 **
39,700 Mercury Interactive Corp. 545,875 **
8,300 MetaTools, Inc. 232,400 **
1,100 Network Appliance, Inc. 35,200 **
13,400 Oak Technology, Inc. 239,525 **
766 Objective Systems Integrators, Inc. 34,087 **
10,700 Prism Solutions, Inc. 349,087 **
20,600 Raptor Systems, Inc. 679,800 **
51,300 Saville Systems, PLC (ADR) (Ireland) 1,397,925 **
16,500 Sync Research, Inc. 325,875 **
14,500 Workgroup Technology Corp. 380,625 **
-------------
Total Information Processing 16,171,432
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
33
<PAGE>
TCW Galileo Small Cap Growth Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
Office Equipment and Building Supplies (0.4%)
25,900 Xeikon N.V. (ADR) (Belgium) $ 598,937 **
-------------
TOTAL CAPITAL GOODS (Cost: $28,269,499) 49,833,740
-------------
BASIC INDUSTRIES (2.2%)
Pollution Control (0.6%)
24,500 Culligan Water Technologies, Inc. 826,875 **
-------------
Energy and Oil Services (0.1%)
5,200 Global Industries, Ltd. 133,900 **
-------------
Transportation (1.5%)
22,900 Atlas Air, Inc. 1,033,362 **
10,000 Fritz Companies, Inc. 367,500 **
19,500 Pittston Brink's Group 543,562
-------------
Total Transportation 1,944,424
-------------
TOTAL BASIC INDUSTRIES (Cost: $1,741,868) 2,905,199
-------------
CREDIT SENSITIVE (2.4%)
Banks/Financial Services (1.3%)
10,100 First USA Paymentech, Inc. 439,350 **
26,400 Imperial Credit Industries, Inc. 686,400 **
28,100 Redwood Trust, Inc. 653,325
-------------
Total Banks/Financial Services 1,779,075
-------------
Insurance (1.1%)
23,400 Amerin Corp. 529,425 **
32,600 First Commonwealth, Inc. 888,350 **
-------------
Total Insurance 1,417,775
-------------
TOTAL CREDIT SENSITIVE (Cost: $3,012,317) 3,196,850
-------------
TOTAL EQUITY SECURITIES (Cost: $79,656,552) (98.9%) 132,113,175
-------------
Principal
Amount SHORT-TERM INVESTMENTS (Cost: $1,730,799) (1.3%)
- -------------- ------------------------------------------------
$ 1,730,799 Bank of New York Depositary Reserve, 4.4%, due 05/01/96 1,730,799
-------------
TOTAL INVESTMENTS (Cost: $81,387,351) (100.2%) 133,843,974
LIABILITIES IN EXCESS OF OTHER ASSETS (-0.2%) (214,602)
-------------
NET ASSETS (100%) $ 133,629,372
=============
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
34
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo Asia Pacific Equity Fund
April 30, 1996
SCHEDULE OF INVESTMENTS Unaudited)
- ----------------------------------
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
HONG KONG (27.2% of Net Assets)
572,500 Amoy Properties, Limited $ 643,824
245,000 Cheung Kong Holdings, Limited 1,749,729
137,500 China Light & Power Company, Limited 648,736
755,000 China Resources, Limited 466,007
249,000 Citic Pacific, Limited 978,465
910,000 Guangdong Investment, Limited 561,678
218,000 Guoco Group, Limited 1,084,900
103,000 Hang Seng Bank, Limited 1,045,151
73,137 HSBC Holdings Public, Limited 1,091,921
171,000 Hutchison Whampoa, Limited 1,060,986
425,000 Hysan Development Company, Limited 1,365,173
236,000 New World Development Company, Limited 1,058,556
1,334,000 Ng Fung Hong, Limited 638,013 **
123,000 Qingling Motors Company, Limited 40,146
142,000 Sun Hung Kai Properties, Limited 1,353,701
67,500 Swire Pacific, Limited, Class A 575,864
115,000 Varitronix International, Limited 211,086
-------------
TOTAL HONG KONG (Cost: $12,472,406) 14,573,936
-------------
INDIA (2.5%)
12,000 Bajaj Auto, Limited (GDS) 420,000
8,000 Hindalco Industries, Limited (GDR) 348,000
60,000 India Cement, Limited (GDR) 315,000
13,000 Larsen & Toubro Limited (GDR) 240,500
-------------
TOTAL INDIA (Cost: $1,124,060) 1,323,500
-------------
INDONESIA (5.6%)
165,450 PT Bank Bali (Foreign Registered) 426,234
488,000 PT Barito Pacific Timber (Foreign Registered) 492,400
68,000 PT HM Sampoerna (Foreign Registered) 751,825
66,970 PT Indofood Sukses Makmur (Foreign Registered) 308,396
115,000 PT Semen Gresik (Foreign Registered) 398,724
18,000 PT Telekomunikasi Indonesia (ADR) 612,000
-------------
TOTAL INDONESIA (Cost: $2,048,002) 2,989,579
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
35
<PAGE>
TCW Galileo Asia Pacific Equity Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
Number of
Shares, Warrants
or Rights EQUITY SECURITIES Value
- ---------------- ----------------- -------------
<S> <C> <C>
MALAYSIA (23.5%)
1,060,000 Berjaya Group Berhad $ 777,724
174,000 Commerce Asset Holdings 1,185,951
322,000 DCB Holding Berhad 1,174,806
65,000 Edarar Otomobil 555,088
430,000 Faber Group Berhad 431,000 **
70,000 Gadek Berhad 460,268
70,000 Gadek Berhad, Rights, expire 05/17/96 179,617 **
70,000 Gadek Berhad, Warrants, expire 05/17/96 101,287 **
44,000 Gadek Capital Berhad 129,661
182,000 Ho Hup Construction 591,051
190,000 Kwong Yik Bank 457,060
315,000 Larut Consolidated 505,172
207,000 Malakoff Berhad 979,312
155,000 New Straits Times Press Berhad 832,732
13,000 Petronas Gas Berhad 34,400
78,000 Prime Utilities Berhad 781,814
39,000 Prime Utilities, Warrants, expire 06/30/96 90,690 **
515,000 Renong Berhad 896,119
103,000 Renong Berhad, Rights, expire 05/03/96 619 **
64,375 Renong Berhad, Warrants, expire 05/03/96 17,360 **
93,000 Sistem Television Malaysia Berhad 413,880
289,000 Technology Resources Industries Berhad 984,885
105,000 Telekom Malaysia Berhad 989,295
-------------
TOTAL MALAYSIA (Cost: $9,982,943) 12,569,791
-------------
PAKISTAN (Cost: $541,108) (0.6%)
3,010 Pakistan Telecommunications Corporation (GDS) 304,010
-------------
PHILIPPINES (3.1%)
2,100 Far East Bank and Trust Company 76,546
34,000 Manila Electric Company, Series B 316,641
21,000 Philipine Commerce International Bank 280,534
372,100 Pilipino Telephone Corporation 546,788 **
133,000 San Miguel Corporation 416,260
-------------
TOTAL PHILIPPINES (Cost: $1,519,614) 1,636,769
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
36
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1996
<TABLE>
<CAPTION>
Number of
Shares or
Warrants EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
SINGAPORE (11.4%)
85,000 City Development, Limited $ 743,335
60,000 Development Bank of Singapore, Limited 759,332
80,000 Far East Levingston Shipbuilding, Limited 466,406
78,000 Fraser & Neave, Limited 865,126
88,000 Keppel Corporation, Limited 794,596
64,000 L & M Group Investments, Limited 147,430
57,000 Orchard Parade Holding, Limted 261,394
135,000 Singapore Land, Limited 959,829
370,000 ST Capital, Limited 576,111
56,000 United Overseas Bank, Limited 545,467
-------------
TOTAL SINGAPORE (Cost: $5,128,538) 6,119,026
-------------
SOUTH KOREA (7.4%)
115 Daewoo Corporation, Warrants, expire 11/08/96 575 **
12,026 Halla Engineering & Construction Company, Limited 562,439
28,000 Hyundau Engineering & Construsction 381,640
11,000 Korea Electric Power Corporation (New ADR) 305,250
2,800 Korea Electric Power Corporation (ADR) 77,700
57,000 Korea Exchange Bank 799,304
12,000 L.G. Securities, Limited 289,862
29,400 Pohang Iron & Steel, Limited (ADR) 808,500
9,050 Samsung Electronics Company, Limited (144A) (1/2 Voting GDR) 674,225 *
1,093 Samsung Electronics Company, Limited (1/2 Voting GDR) 81,428
130 Tong Yang Cement Corporation, Warrants, expire 08/18/96 650 **
-------------
TOTAL SOUTH KOREA (Cost: $4,122,407) 3,981,573
-------------
TAIWAN (Cost: $948,718) (2.0%)
93,300 The Taiwan Index Fund, Limited 1,072,950
-------------
</TABLE>
* Restricted security. (See Note 6)
** 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 EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
THAILAND (12.7%)
37,000 Bangkok Bank, Public Company, Limited (Foreign Registered) $ 536,126
161,000 Bank of Ayudhya, Public Company, Limited (Foreign Registered) 949,721
243,100 Electricity Generating, Public Company, Limited (Foreign Registered) 952,805
66,000 Industrial Finance Corporation, Public Company, Limited (Foreign Registered) 266,519
150,000 Krunghai Thanakit, Public Company, Limited (Foreign Registered) 766,063 **
33,430 Land & House, Public Company, Limited (Foreign Registered) 516,161
77,000 Mathicon, Public Company, Limited (Foreign Registered) 597,490
62,300 Phatra Thanakit, Public Company, Limited (Foreign Registered) 542,618
38,500 PTT Exploration & Production, Public Company, Limited (Foreign Registered) 536,522
17,800 The Siam Cement Company, Public Company, Limited (Foreign Registered) 916,109
63,000 Swedish Motor Corporation, Public Company, Limited (Foreign Registered) 236,945
-------------
TOTAL THAILAND (Cost: $5,885,738) 6,817,079
-------------
TOTAL EQUITY SECURITIES (Cost: $43,773,534) (96.0%) 51,388,213
-------------
Principal
Amount CONVERTIBLE SECURITIES
-------------- ----------------------
PHILIPPINES (Cost: $135,000) (0.2%)
$ 135,000 Bacnotan Consolidated Industries, Inc., Convertible Bond,
5.5%, due 06/21/04 130,275
-------------
THAILAND (Cost $168,375) (0.4%)
160,000 Siam Commercial Bank, Public Company, Limited,
Convertible Bond, 3.25%, due 01/24/04 197,600
-------------
TOTAL CONVERTIBLE SECURITIES (Cost: $303,375) (0.6%) 327,875
-------------
FIXED INCOME SECURITIES
-----------------------
MALAYSIA (Cost $30,658) (0.1%)
78,000 Prime Utilities Berhad, 1%, due 03/11/01 21,265
-------------
SHORT-TERM INVESTMENTS (Cost: $2,205,296) (4.1%)
------------------------------------------------
2,205,296 Bank of New York Depositary Reserve, 4.4%, due 05/01/96 2,205,296
-------------
TOTAL INVESTMENTS (Cost: $46,312,864) (100.8%) 53,942,649
LIABILITIES IN EXCESS OF OTHER ASSETS (-0.8%) (402,345)
-------------
NET ASSETS (100%) $ 53,540,304
=============
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
38
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo Emerging Markets Fund
April 30, 1996
SCHEDULE OF INVESTMENTS (Unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
COMMON STOCK
ARGENTINA (4.3% of Net Assets)
14,300 Aracruz Celulose, S.A. $ 128,700
73,500 Astra Compania Argentina de Petroleo, S.A. 156,203
5,240 Banco Frances del Rio de la Plata, S.A. 150,650
7,364 Banco de Galicia y Buenos Aires, S.A. (ADR) 173,054
5,900 Banco de Galicia y Buenos Aires, S.A., Series B (ADR) 35,286
8,900 Compania Interamericana de Automoviles, S.A. 51,625 **
112,663 Compania Naviera Perez Companc, S.A.C.F.I.M.F.A. 700,834
29,339 IRSA Inversiones y Representaciones, S.A. 88,613
14,040 Juan Minetti, S.A. 56,587
6,846 Molinos Rio de la Plata, S.A. 71,206
16,745 Nobleza Piccardo 54,427
4,195 Siderar, S.A. (144A) (ADR) 78,237 *
83,600 Siderca, S.A. 96,986
8,400 Telecom Argentina STET-France Telecom S.A. Series B 37,972
2,850 Telecom Argentina STET-France Telecom S.A. Series B (ADR) 128,963
8,600 Telefonica de Argentina, S.A. 251,550
3,100 TRANSPORTADORA DE GAS DEL SUR, S.A. (ADR) 39,912
10,401 Yacimientos Petroliferos Fiscales Sociedad del Estado, Series D (ADR) 227,522
-------------
TOTAL ARGENTINA (Cost: $2,018,848) 2,528,327
-------------
BRAZIL (1.7%)
1,552,473 CENTRAIS ELETRICAS BRASILEIRAS, S.A. (ELETROBRAS) 373,995
760,000 Light Participaceos, S.A. 97,082
2,700,000 Telecomunicacoes Brasileiras, S.A. (TELEBRAS) 114,575
7,500 Telecomunicacoes Brasileiras, S.A. (TELEBRAS) (ADR) 405,938
-------------
TOTAL BRAZIL (Cost: $1,055,799) 991,590
-------------
</TABLE>
* Restricted security. (See Note 6)
** Non-income producing.
See accompanying Notes to Financial Statements.
39
<PAGE>
TCW Galileo Emerging Markets Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
CHILE (4.7%)
3,000 Chilectra, S.A.(144A) (ADR) $ 163,875 *
5,000 Chilgener, S.A. (ADR) 111,875
6,200 Compania Cervecerias Unidas, S.A. (ADR) 131,750
4,700 Compania de Telecomunicaciones de Chile, S.A. (ADR) 428,875
9,300 Enersis, S.A. (ADR) 276,675
7,060 Embotelladora Andina, S.A. (ADR) 247,100
11,300 Empresa Nacional de Electricdad, S.A. (ADR) 220,350
104,000 The Five Arrows Chile Investment Trust, Limited 298,480
7,650 Genesis Chile Fund, Limited 303,131
8,400 Madeco, S.A. (ADR) 210,000
7,850 Maderas y Sinteticos Sociedad Anonima (MASISA) (ADR) 124,619
5,550 Santa Isabel S.A. (ADR) 160,256 **
1,730 Sociedad Quimica y Minera de Chile, S.A. (ADR) 92,555
-------------
TOTAL CHILE (Cost: $2,666,938) 2,769,541
-------------
CHINA (Cost: $213,750) (0.2%)
15,000 Shandong Huaneng Power (ADR) 138,750
-------------
COLOMBIA (1.3%)
30,200 Almacenes Exito, S.A. 88,138
28,649 Banco de Bogota 165,874
2,900 Banco Industrial Colombiano (ADR) 56,913
6,400 Cementos Diamante, S.A., (144A) (ADS) 124,000 *
23,900 Compania de Cemento Argos, S.A. 132,978
10,770 Compania Nacional de Chocolates, S.A. 90,240
5,900 Compania Suramericana de Seguros, S.A. 108,868
-------------
TOTAL COLOMBIA (Cost: $1,004,860) 767,011
-------------
GREECE (1.1%)
1,830 Hellenic Bottling Company 65,544
34,760 Aegek 220,540
7,230 Ergo Bank 362,832
-------------
TOTAL GREECE (Cost: $685,489) 648,916
-------------
</TABLE>
* Restricted security. (See Note 6)
** Non-income producing.
See accompanying Notes to Financial Statements.
40
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1996
<TABLE>
<CAPTION>
Number of
Shares, Warrants
or Rights EQUITY SECURITIES Value
- ---------------- ----------------- -------------
<S> <C> <C>
HONG KONG (Cost: $354,288) (0.4%)
157,800 Consolidated Electric Power Asia, Limited $ 261,089
-------------
INDIA (3.2%)
30,500 BSES, Limited (GDR) 598,715
22,000 Hindalco Industries, Limited (144A) (GDR) 957,000 *
16,000 Larsen & Toubro, Limited (GDR) 296,000
-------------
TOTAL INDIA (Cost: $1,522,935) 1,851,715
-------------
INDONESIA (3.8%)
104,000 PT Bank International Indonesia (Foreign Registered) 512,409
72,475 PT Indofood Sukses Makmur (Foreign Registered) 333,746
86,000 PT Gundag Garam (Foreign Registered) 618,506
22,100 PT Telekomunikasi Indonesia (ADR) 751,400
-------------
TOTAL INDONESIA (Cost: $1,519,073) 2,216,061
-------------
IRELAND (Cost: $275,000) (0.5%)
27,500 Central Asia Investment Company, Limited 288,750
-------------
MALAYSIA (23.7%)
220,000 Commerce Asset Holdings 1,499,479
400,000 Development & Commercial Bank Holdings Berhad 1,459,386
103,000 Edarar Otomobil 879,601
128,000 Genting Berhad 1,149,547
80,000 Gadek Berhad 526,020
80,000 Gadek Berhad, Rights, expire 05/17/96 205,276 **
80,000 Gadek Berhad, Warrants expire 05/17/96 115,756 **
53,333 Gadek Capital Berhad Rights, expire 05/17/96 157,164 **
475,000 Hicom Holdings Berhad 1,399,747
73,250 Hicom Holdings Berhad, Warrants, expire 06/03/96 34,860 **
355,000 Larut Consolidated 569,321
100,500 Lion Land 127,327
265,000 New Straits Times Press Berhad 1,423,703
94,000 Prime Utilities Berhad 942,186
47,000 Prime Utilities Berhad Warrants, expire 06/03/96 109,293 **
655,000 Renong Berhad 1,139,724
131,000 Renong Berhad, Rights, expire 05/03/96 788 **
81,875 Renong Berhad, Warrants, expire 05/03/96 22,079
327,000 Technology Resources Industries Berhad 1,114,385
108,000 Telekom Malaysia Berhad 1,017,561
-------------
TOTAL MALAYSIA (Cost: $10,643,998) 13,893,203
-------------
</TABLE>
* Restricted security. (See Note 6)
** Non-income producing.
See accompanying Notes to Financial Statements.
41
<PAGE>
TCW Galileo Emerging Markets Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Units EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
MEXICO (12.3%)
35,000 Apasco, S.A.de C.V., Series A $ 190,223
164,200 Cemex, S.A. de C.V., Series B 701,974
384,700 Cifra, S.A. de C.V., Series C 512,587
10,020 Corporacion Industrial San Luis, S.A. de C.V. (CPO units) 58,917
21,000 DESC, S.A. de C.V., Series B 105,071
13,400 Empresas ICA Sociedad Controladora, S.A. de C.V. (ADR) 185,925
10,400 Empresas La Moderna, S.A. de C.V. (ADR) 193,700
63,500 Fomento Economica Mexicano, S.A. de C.V., Series B 191,827
105,800 GRUPO CARSO, S.A. de C.V., Series A1 809,017 **
86,000 Grupo Cementos de Chihuahua, S.A. de C.V., Series B 80,955
93,900 Grupo Financiero Inbursa, S.A. de C.V., Series B 365,976
57,700 Grupo Industria Alfa, S.A. de C.V., Series A 845,074
43,700 Grupo Industrial Bimbo, S.A. de C.V., Series A 200,378
3,013 Grupo Industrial Maseca, S.A. de C.V. (ADR) 44,065
11,430 Grupo Televisa, S.A. de C.V. (ADR) 354,330
217,600 Industria Automotriz, S.A. de C.V., Series B 33,748 + **
66,600 Jugos del Valle, S.A. de C.V., Series B 88,022 **
30,200 Kimberly-Clark de Mexico, S.A. de C.V., Series A 553,904
40,045 Telefonos de Mexico, S.A. de C.V., Series L (ADR) 1,361,530
17,300 Transportacion Maritima Mexicana, S.A. de C.V., Series A (ADR) 127,588
24,650 Tubos de Acero de Mexico, S.A. de C.V. (ADR) 209,525
-------------
TOTAL MEXICO (Cost: $6,614,853) 7,214,336
-------------
PAKISTAN (Cost: $800,537) (0.8%)
4,870 Pakistan Telecommunications Corporation (GDS) 491,870
-------------
PANAMA (Cost: $123,186 ) (0.3%)
3,440 Panamco Beverage (ADR) 150,930
-------------
PERU (0.9%)
83,344 Cerveceria Backus y Johnson, S.A. 111,593
19,743 Compania de Minas Buenaventura, S.A. 166,257
10,763 Credicorp, Limited (ADR) 182,971
13,926 Enrique Ferreyros, S.A. 18,763
34,753 Explosivos, S.A. 30,583
-------------
TOTAL PERU (Cost: $514,822) 510,167
-------------
</TABLE>
+ Security valued at fair value by the Advisor. (See Note 2)
** Non-income producing.
See accompanying Notes to Financial Statements.
42
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1996
<TABLE>
<CAPTION>
Number of
Shares or
Warrants EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
PHILIPPINES (2.2%)
94,000 Manila Electric Company, Series B $ 875,420
124,000 San Miguel Corporation 388,092
-------------
TOTAL PHILIPPINES (Cost: $1,240,052) 1,263,512
-------------
PORTUGAL (2.5%)
25,590 Corticeira Amorim 289,203
28,467 Espirito Santo Financial Holding, S.A. (ADR) 334,487
15,750 Portugal Telecom 342,156
20,650 Soares da Costa 140,682
15,000 Sonae Investments, Series A 346,396
-------------
TOTAL PORTUGAL (Cost: $1,802,225) 1,452,924
-------------
SINGAPORE (Cost: $385,647) (0.7%)
80,000 Van der Horst, Limited 395,308
-------------
SOUTH AFRICA (2.4%)
18,400 DeBeers Consolidated Mines, Limited (ADR) 584,200
15,600 Driefontein Consolidated, Limited 247,650
16,200 Kloof Gold Mining Company, Limited 192,375
3,600 Vaal Reefs Exploration and Mining Company, Limited 352,111
-------------
TOTAL SOUTH AFRICA (Cost: $1,111,344) 1,376,336
-------------
SOUTH KOREA (4.7%)
60 Daewoo Corporation, Warrants, expire 11/08/96 300 **
34,000 Korea Electric Power Corporation (New ADR) 943,500
38,000 Korea Exchange Bank 532,869
11,800 L.G. Chemical, Limited (GDR) 253,700
32,500 Pohang Iron & Steel Company, Limited (ADR) 893,750
117 Samsung Electronics Company, Limited (144A), (1/2 Voting GDR) 4,797 *
3,000 Samsung Electronics Company, Limited (144A), (1/2 Non-Voting GDR) 123,000 *
-------------
TOTAL SOUTH KOREA (Cost: $2,725,800) 2,751,916
-------------
</TABLE>
* Restricted security. (See Note 6)
** Non-income producing.
See accompanying Notes to Financial Statements.
43
<PAGE>
TCW Galileo Emerging Markets Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Rights EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
TAIWAN (Cost: $463,414) (0.9%)
46,400 The Taiwan Index Fund, Limited $ 533,600
-------------
THAILAND (5.7%)
41,000 Bankok Bank, Public Company, Limited (Foreign Registered) 594,085
36,000 Krunghai Thanakit, Public Company, Limited (Foreign Registered) 183,855
24,846 Land & House, Public Company, Limited (Foreign Registered) 383,623
48,000 PTT Exploration & Production, Public Company, Limited (Foreign Registered) 668,910
12,000 The Siam Cement Company, Public Company, Limited (Foreign Registered) 617,602
76,000 Thai Farmer's Bank, Public Company, Limited (Foreign Registered) 872,560
-------------
TOTAL THAILAND (Cost: $2,904,426) 3,320,635
-------------
TURKEY (2.3%)
444,000 Cimentas A.S. 114,934 **
444,000 Cimentas A.S., Rights, expire 05/22/96 86,886 **
444,000 Cimentas A.S. (New Shares) 104,561 **
2,015,000 Eczacibasi Yapi 222,016
890,000 Ege Biracilik Ve Malt Sanayi 318,996
2,670,000 Eregli Demir Ve Celik Fabrik 290,641
708,000 KOC Holdings, AS 206,770
4,647 Turkiye Garanti Bankasi (ADR) 25,559
-------------
TOTAL TURKEY (Cost: $1,430,337) 1,370,363
-------------
VIETNAM (Cost: $343,850) (0.5%)
29,900 Lazard Vietnam Fund, Limited (Preference shares) 299,000
-------------
TOTAL COMMON STOCK (Cost: $42,421,471) (81.2%) 47,485,850
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
44
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1996
<TABLE>
<CAPTION>
Number of
Shares PREFERRED STOCK Value
- -------------- --------------- -------------
<S> <C> <C>
BRAZIL (9.7%)
47,672,188 Banco Bradesco, S.A. $ 538,180
410,000 Banco Itau, S.A. 160,346
235,600 Brasmotor S.A. 64,119
1,514,289 CENTRAIS ELETRICAS BRASILEIRAS, S.A. (ELETROBRAS) 373,955
1,343,677 Companhia Cervejaria Brahma 646,038
7,794,064 COMPANHIA ENERGETICA DE MINAS GERAIS (CEMIG) 196,403
7,300 COMPANHIA ENERGETICA DE MINAS GERAIS (CEMIG) (ADR) 182,044
18,458 Compania Vale do Rio Doce 338,618
52,771 Industrias Klabin de Papel e Celulose, S.A. 52,127
190,600 Itausa - Investimentos Itau, S.A. 130,640
2,850,000 Lojas Americanas, S.A. 66,072
4,000,000 Petroleo Brasileiro, S.A. (PETROBRAS) 465,679
13,110,916 Refrigeracao Parana, S.A. 32,642
31,947,492 Telecomunicacoes Brasileiras, S.A. (TELEBRAS) 1,729,241
3,870,700 Telecomunicacoes de San Paulo, S.A. (TELESP) 690,569
-------------
TOTAL BRAZIL (Cost: $5,041,439) 5,666,673
-------------
PERU (Cost: $359,653) (0.9%)
227,056 CPT - Telefonica del Peru, S.A. 506,693
-------------
SOUTH KOREA (Cost: None) (0.0%)
904 Samsung Electronics Company, Limited, (144A),
(Non-Voting Preferred Shares) 37,064 *
-------------
TOTAL PREFERRED STOCK (Cost: $5,401,092) (10.6%) 6,210,430
-------------
TOTAL EQUITY SECURITIES (Cost: $47,822,563) (91.8%) 53,696,280
-------------
</TABLE>
* Restricted security. (See Note 6)
See accompanying Notes to Financial Statements.
45
<PAGE>
TCW Galileo Emerging Markets Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount CONVERTIBLE SECURITIES Value
- -------------- ---------------------- -------------
<S> <C> <C>
PHILIPPINES (Cost: $601,000) (1.0%)
$ 610,000 Bacnotan Consolidated Industries Inc., Convertible Bond,
5.5%, due 06/21/04 $ 588,650
-------------
SOUTH KOREA (Cost: $244,800) (0.3%)
150,000 Goldstar, Convertible Bond, 3.25%, due 12/31/06 187,500
-------------
THAILAND (Cost: $449,799) (1.0%)
490,000 Siam Commercial Bank, Public Company, Limited,
Convertible Bond, 3.25%, due 01/24/04 605,150
-------------
TOTAL CONVERTIBLE SECURITIES (Cost: $1,295,599) (2.4%) 1,381,300
-------------
FIXED INCOME SECURITIES
-----------------------
MALAYSIA (Cost: $36,947) (0.0%)
94,000 Prime Utilities Berhad, 1%, due 03/11/01 25,627
-------------
SHORT-TERM INVESTMENTS (Cost: $3,220,202) (5.6%)
------------------------------------------------
3,220,202 Bank of New York Depositary Reserve, 4.4%, due 05/01/96 3,220,202
-------------
TOTAL INVESTMENTS (Cost: $52,375,311) (99.7%) 58,323,409
EXCESS OF OTHER ASSETS OVER LIABILITIES (0.3%) 174,030
-------------
NET ASSETS (100%) $ 58,497,439
=============
</TABLE>
See accompanying Notes to Financial Statements.
46
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo Latin America Equity Fund
April 30, 1996
SCHEDULE OF INVESTMENTS (Unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
COMMON STOCK
ARGENTINA (11.6% of Net Assets)
127,000 Astra Compania Argentina de Petroleo, S.A. $ 269,902
34,234 Bagley, S.A., Series B 72,583
16,990 Banco Frances del Rio de la Plata, S.A. 488,462
23,256 Banco de Galicia y Buenos Aires, S.A. (ADR) 546,516
20,000 Compania Interamericana de Automobiles, S.A. 116,012 **
413,988 Compania Naviera Perez Companc, S.A.C.I.M.F.A. 2,575,263
89,103 IRSA Inversiones Y Representaciones, S.A. 269,118
39,107 Juan Minetti, S.A. 157,617
20,200 Molinos Rio de la Plata, S.A. 210,101
39,500 Nobleza Piccardo 128,388
13,060 Siderar, S.A. (144A) (ADR) 243,569 *
284,800 Siderca, S.A. 330,401
52,800 Telecom Argentina STET - France Telecom, S.A., Series B 238,680
5,225 Telecom Argentina STET - France Telecom, S.A., Series B (ADR) 236,431
25,880 Telefonica de Argentina, S.A. 756,990
12,955 TRANSPORTDORA DE GAS DEL SUR, S.A. 166,796
34,400 Yacimientos Petroliferos Fiscales Sociedad del Estado, Series D (ADR) 752,500
-------------
TOTAL ARGENTINA (Cost: $6,111,593) 7,559,329
-------------
BRAZIL (6.5%)
3,035,033 CENTRAIS ELETRICAS BRASILEIRAS, S.A. (ELETROBRAS) 731,149
31,900 Companhia Souza Cruz Industria e Comercio 249,194
1,177,900 Light Participacoes, S.A. 150,464
5,200,000 Telecomunicacoes Brasileiras, S.A. (TELEBRAS) 220,663
53,500 Telecomunicacoes Brasileiras, S.A. (TELEBRAS) (ADR) 2,895,688
-------------
TOTAL BRAZIL (Cost: $4,277,295) 4,247,158
-------------
CHILE (13.3%)
14,000 Chilectra, S.A. (144A) (ADR) 764,750 *
14,600 Chilegener, S.A. (ADR) 326,675
13,600 Compania Cervecerias Unidas, S.A. (ADR) 289,000
12,290 Compania de Telecomunicaciones de Chile, S.A. (ADR) 1,121,463
23,950 Embotelladora Andina, S.A. (ADR) 838,250
39,482 Enersis, S.A. (ADR) 1,174,590
458,000 The Five Arrows Chile Investment Trust, Limited 1,314,460
20,280 Genesis Chile Fund, Limited 803,595
26,900 Madeco, S.A. (ADR) 672,500
20,013 Maderas y Sinteticos Sociedad Anonima (MASISA) (ADR) 317,706
25,725 Santa Iasabel (ADR) 742,809 **
6,870 Sociedad Quimica Y Minera de Chile, S.A. (ADR) 367,545
-------------
TOTAL CHILE (Cost: $8,417,745) 8,733,343
-------------
</TABLE>
* Restricted security. (See Note 6)
** Non-income producing.
see accompanying Notes to Financial Statements.
47
<PAGE>
TCW Galileo Latin America Equity Fund
<TABLE>
<CAPTION>
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
Number of
Shares EQUITY SECURITIES Value
----------- ----------------- -------------
<S> <C> <C>
COLOMBIA (3.5%)
69,400 Almacenes Exito, S.A. $ 202,542
42,521 Banco de Bogota 246,191
16,870 Banco Industrial Colombiano (ADS) 331,074
18,900 Cementos Diamante, S.A., (144A) (ADS) 366,188 *
85,828 Compania de Cemento Argos, S.A. 477,540
29,358 Compania Nacional de Chocolates, S.A. 245,986
22,600 Compania Suramericana de Seguros, S.A. 417,021
-------------
TOTAL COLOMBIA (Cost: $3,033,130) 2,286,542
-------------
MEXICO (34.6%)
98,500 Apasco, S.A. de C.V., Series A 535,340
449,500 Cemex, S.A. de C.V., Series B 1,921,665
1,141,540 Cifra, S.A. de C.V., Series C 1,521,027
13,290 Corporacion Industria San Luis, S.A. de C.V. 78,145
84,000 DESC, S.A. de C.V. 420,283
36,700 Empresas ICA Sociedad Controladora, S.A. de C.V., (ADR) 509,212
40,300 Empresas La Moderna, S.A. de C.V., (ADR) 750,587
30,100 Empresas Nacional, S.A. de C.V., (ADR) 586,950
180,300 Fomento Economica Mexicano, S.A. de C.V., Series B 544,669
366,200 GRUPO CARSO, S.A. de C.V., Series A1 2,800,208 **
86,100 Grupo Cementos de Chihuahua, S.A. de C.V., Series B 81,049
264,100 Grupo Financiero Inbursa, S.A. de C.V., Series C 1,029,331
167,059 Grupo Industria Alfa, S.A. de C.V., Series A 2,446,744
118,600 Groupo Industrial Bimbo, S.A. de C.V., Series A 543,817
9,858 Grupo Industrial Maseca, S.A. de C.V., (ADR) 144,173
39,340 Grupo Televisa, S.A. de C.V., (ADR) 1,219,540
1,740,800 Industria Automotriz, S.A. de C.V., Series B 269,982 +**
134,700 Jugos del Valle, S.A. de C.V., Series B 178,026 **
86,600 Kimberly-Clark de Mexico, S.A. de C.V., Series A 1,588,348
4,650 Panamerican Beverages, Inc., (ADR) 204,019
127,345 Telefonos de Mexico, S.A., de C.V., Series L, (ADR) 4,329,730
44,200 Transportacion Maritima Mexicana, S.A. de C.V. , Series A, (ADR) 325,975
69,282 Tubos de Acero de Mexico, S.A. de C.V., (ADR) 588,897
-------------
TOTAL MEXICO (Cost: $21,767,177) 22,617,717
-------------
PERU (4.0%)
341,336 Cerveceria Backus y Johnston, S.A. 457,031
46,644 Companhia de Minas Buenaventura, S.A. 392,792
33,065 Credicorp, Limited (ADR) 562,105
128,470 Explosivos, S.A. 113,054
503,153 Peruviana Telefonos, Series B 1,122,825
-------------
TOTAL PERU (Cost: $2,595,854) 2,647,807
-------------
</TABLE>
+ Security valued at fair value by the Advisor. (See Note 2)
* Restricted security. (See Note 6)
** Non-income producing.
See accompanying Notes to Financial Statements.
48
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1996
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
----------- ----------------- -------------
<S> <C> <C>
VENEZUELA (Cost: $972) (0.1%)
21,316 Electricidad de Caracas, S.A. $ 16,770
-------------
TOTAL COMMON STOCK (Cost: $46,203,766) (73.6%) 48,108,666
-------------
PREFERRED STOCK
---------------
BRAZIL (25.1%)
46,400 Aracruz Cellulose, S.A. (ADR) 417,600
150,287,759 Banco Bradesco, S.A. 1,696,626
1,186,000 Banco Itau, S.A. 463,832
505,000 Brasmotor, S.A. 137,436
6,338,180 CENTRAIS ELETRICAS BRASILEIRAS, S.A. (ELETROBRAS) 1,565,219
4,285,784 Companhia Cervejaria Brahma 2,060,598
380,000 Companhia Cimento Portland Itau 109,162
59,142 Compania Vale do Rio Doce 1,084,963
531,400 Companhia de Tecidos Norte de Minas, S.A. (Coteminas) 222,823
12,900 COMPANHIA ENERGETICA DE MINAS GERAIS (CEMIG) (ADR) 321,694
16,837 COMPANHIA ENERGETICA DE MINAS GERAIS (CEMIG) (144A) (ADR) 419,873 *
247,200 Confab Industrial, S.A. 97,176
200,000 Industria Klabin de Papel e Cellulose, S.A. 197,561
656,000 Itausa - Investmentos Itau, S.A. 449,632
8,465,000 Lojas Americanas, S.A. 196,245
13,955,000 Petroleo Brasiliero, S.A. (PETROBRAS) 1,624,637
45,853,207 Refrigeracao Parana, S.A. 114,159
67,825,257 Telecomunicacoes Brasileiras, S.A. (TELEBRAS) 3,671,219
9,112,800 Telecomunicacoes de San Paulo, S.A. (TELESP) 1,625,810
-------------
TOTAL PREFERRED STOCK (Cost: $14,626,778) 16,476,265
-------------
TOTAL EQUITY SECURITIES (Cost: $60,830,544) (98.7%) 64,584,931
-------------
Principal
Amount SHORT-TERM INVESTMENTS (Cost: $913,612) (1.4%)
---------- -----------------------------------------------
$ 913,612 Bank of New York Depositary Reserve, 4.4%, due 05/01/96 913,612
-------------
TOTAL INVESTMENTS (Cost: $61,744,156) (100.1%) 65,498,543
LIABILITIES IN EXCESS OF OTHER ASSETS (-0.1%) (40,649)
-------------
NET ASSETS (100%) $ 65,457,894
=============
</TABLE>
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/ $ 187,275
Receivables for FundShares Sold -
Receivables for Fund Shares Issued upon Reinvestment of Dividends -
Receivables for Securities Sold -
Accrued Interest and Dividends Receivable 1,016
Deferred Organization Costs -
---------------
Total Assets 188,291
---------------
LIABILITIES
Payable for Fund Shares Redeemed -
Distribution Payable 726
Payables for Securities Purchased -
Management Fees and Other Accrued Expenses 92
---------------
Total Liabilities 818
---------------
NET ASSETS $ 187,473
===============
NET ASSETS CONSIST OF:
Paid-in Capital $ 187,473
Undistributed (Overdistributed) Net Realized Gain (Loss) on Investments
and Foreign Currency Transactions -
Unrealized Appreciation (Depreciation) on Investments
and Foreign Currency Translations -
Undistributed (Overdistributed) Net Investment Income (Loss) -
---------------
NET ASSETS $ 187,473
===============
CAPITAL SHARES OUTSTANDING 187,472,707
===============
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, 1996 was $187,275, $33,369,
$102,240, $97,655, and $71,285, respectively.
See accompanying Notes to Financial Statements.
50
<PAGE>
TCW GALILEO FUNDS, INC.
Dollar Amounts in Thousands
(Except per Share Amounts)
April 30, 1996
<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>
$ 32,953 $ 102,793 $ 95,138 $ 69,283
- 441 291 -
142 545 446 436
1,573 110 172 60
334 2,608 556 505
18 18 18 21
---------------- --------------- ---------------- ---------------
35,020 106,515 96,621 70,305
---------------- --------------- ---------------- ---------------
- 64 - -
154 732 474 448
2,882 4,099 12,905 -
33 88 62 54
---------------- --------------- ---------------- ---------------
3,069 4,983 13,441 502
---------------- --------------- ---------------- ---------------
$ 31,951 $ 101,532 $ 83,180 $ 69,803
================ =============== ================ ===============
$ 34,899 $ 103,020 $ 91,914 $ 71,833
(2,538) (1,907) (5,292) (101)
(416) 553 (2,517) (2,002)
6 (134) (925) 73
---------------- --------------- ---------------- ---------------
$ 31,951 $ 101,532 $ 83,180 $ 69,803
================ =============== ================ ===============
3,444,075 10,547,310 8,688,405 7,508,863
================ =============== ================ ===============
$ 9.28 $ 9.63 $ 9.57 $ 9.30
================ =============== ================ ===============
</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/ $ 211,032 $ 84,179
Receivables for Fund Shares Sold - -
Receivables for Securities Sold 628 -
Accrued Interest and Dividends Receivable 121 16
Deferred Organization Costs 18 2
---------------- ---------------
Total Assets 211,799 84,197
---------------- ---------------
LIABILITIES
Payable for Fund Shares Redeemed - 45
Payables for Securities Purchased 430 1,034
Management Fees and Other Accrued Expenses 313 92
---------------- ---------------
Total Liabilities 743 1,171
---------------- ---------------
NET ASSETS $ 211,056 $ 83,026
================ ===============
NET ASSETS CONSIST OF:
Paid-in Capital $ 156,572 $ 54,437
Undistributed (Overdistributed) Net Realized Gain (Loss)
on Investments and Foreign Currency Transactions (38) 2,755
Unrealized Appreciation (Depreciation) on Investments
and Foreign Currency Translations 54,400 26,260
Undistributed (Overdistributed) Net Investment Income (Loss) 122 (426)
---------------- ---------------
NET ASSETS $ 211,056 $ 83,026
================ ===============
CAPITAL SHARES OUTSTANDING 13,838,028 5,538,711
================ ===============
NET ASSET VALUE PER SHARE $ 15.25 $ 14.99
================ ===============
</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, 1996 was $156,632,
$57,919, $81,387, $46,313, $52,375, and $61,744, respectively.
See accompanying Notes to Financial Statements.
52
<PAGE>
TCW GALILEO FUNDS, INC.
Dollar Amounts in Thousands
(Except per Share Amounts)
April 30, 1996
<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>
$ 133,844 $ 53,943 $ 58,323 $ 65,498
13 224 249 31
1,498 221 233 498
27 107 130 71
6 6 6 18
---------------- --------------- ---------------- ---------------
135,388 54,501 58,941 66,116
---------------- --------------- ---------------- ---------------
42 6 - -
1,579 857 308 554
138 98 136 104
---------------- --------------- ---------------- ---------------
1,759 961 444 658
---------------- --------------- ---------------- ---------------
$ 133,629 $ 53,540 $ 58,497 $ 65,458
================ =============== ================ ===============
$ 78,456 $ 44,990 $ 62,564 $ 92,233
3,402 628 (10,197) (31,079)
52,457 7,630 5,948 3,754
(686) 292 182 550
---------------- --------------- ---------------- ---------------
$ 133,629 $ 53,540 $ 58,497 $ 65,458
================ =============== ================ ===============
7,176,907 5,333,028 6,893,265 6,921,195
================ =============== ================ ===============
$ 18.62 $ 10.04 $ 8.49 $ 9.46
================ =============== ================ ===============
</TABLE>
53
<PAGE>
STATEMENTS OF OPERATIONS (Unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
TCW Galileo
Money Market
Fund
---------------
<S> <C>
INVESTMENT INCOME
Income:
Interest $ 3,912
---------------
Expenses:
Management Fees 178
Custodian Fees 14
Registration Fees 21
Transfer Agent Fees 23
Directors' Fees and Expenses 5
Audit and Tax Fees 19
Accounting Service Fees 71
Amortization of Deferred Organization Costs -
Other -
---------------
Total Expenses 331
Less Expenses Borne by Investment Adviser 47
---------------
Net Expenses 284
---------------
Net Investment Income 3,628
---------------
</TABLE>
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY
<TABLE>
<S> <C>
Net Realized Gain (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 (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ 3,628
===============
</TABLE>
See accompanying Notes to Financial Statements.
54
<PAGE>
TCW GALILEO FUNDS, INC.
Dollar Amounts in Thousands
Six Months Ended April 30, 1996
<TABLE>
<CAPTION>
TCW Galileo TCW Galileo TCW Galileo TCW Galileo Long-Term
High Grade Fixed High Yield Mortgage Backed Mortgage Backed
Income Fund Bond Fund Securities Fund Securities Fund
---------------- --------------- ----------------- ---------------------
<S> <C> <C> <C>
$ 507 $ 4,873 $ 2,354 $ 2,944
---------------- --------------- ---------------- ---------------
66 371 202 185
2 5 6 5
1 4 1 -
13 20 16 16
5 5 5 5
8 8 13 12
17 17 17 17
5 5 5 5
4 7 8 4
---------------- --------------- ---------------- ---------------
121 442 273 249
- - - -
---------------- --------------- ---------------- ---------------
121 442 273 249
---------------- --------------- ---------------- ---------------
386 4,431 2,081 2,695
---------------- --------------- ---------------- ---------------
1,085 (450) (776) 461
(1,706) (601) 1,553 (2,443)
---------------- --------------- ---------------- ---------------
(621) (1,051) 777 (1,982)
---------------- --------------- ---------------- ---------------
$ (235) $ 3,380 $ 2,858 $ 713
================ =============== ================ ===============
</TABLE>
55
<PAGE>
STATEMENTS OF OPERATIONS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
TCW TCW Galileo
Galileo Core Earnings Momentum
Equity Fund Fund
---------------- -----------------
<S> <C> <C>
INVESTMENT INCOME
Income:
Dividends $ 953 $ 44
Interest 80 87
---------------- ---------------
Total 1,033 131
---------------- ---------------
Expenses:
Management Fees 743 337
Custodian Fees 9 10
Registration Fees - -
Transfer Agent Fees 20 13
Directors' Fees and Expenses 5 5
Audit and Tax Fees 8 8
Accounting Service Fees 17 17
Amortization of Deferred Organization Costs 5 1
Other - 3
---------------- ---------------
Total Expenses 807 394
Less Expenses Borne by Investment Adviser - 5
---------------- ---------------
Net Expenses 807 389
---------------- ---------------
Net Investment Income (Loss) 226 (258)
---------------- ---------------
</TABLE>
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS AND FOREIGN CURRENCY
<TABLE>
<S> <C> <C>
Net Realized Gain (Loss) on Investments and
Foreign Currency Transactions During the Period 8,956 2,517
Change in Unrealized Appreciation on
Investments and Foreign Currency Translations
During the Period 13,794 17,085
---------------- ---------------
Net Realized and Unrealized Gain on Investments
and Foreign Currency During the Period 22,750 19,602
---------------- ---------------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 22,976 $ 19,344
================ ===============
</TABLE>
See accompanying Notes to Financial Statements.
56
<PAGE>
TCW GALILEO FUNDS, INC.
Dollar Amounts in Thousands
Six Months Ended April 30, 1996
<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>
$ 37 $ 369 /(1)/ $ 372 /(1)/ $ 648 /(1)/
180 34 82 27
---------------- --------------- ---------------- ---------------
217 403 454 675
---------------- --------------- ---------------- ---------------
432 238 257 268
7 83 97 69
11 - 1 6
15 12 13 13
5 5 5 5
8 8 8 8
17 17 17 17
1 1 1 5
2 1 3 6
---------------- --------------- ---------------- ---------------
498 365 402 397
- - - -
---------------- --------------- ---------------- ---------------
498 365 402 397
---------------- --------------- ---------------- ---------------
(281) 38 52 278
3,076 1,810 (1,577) (2,968)
31,130 4,712 9,945 10,872
---------------- --------------- ---------------- ---------------
34,206 6,522 8,368 7,904
---------------- --------------- ---------------- ---------------
$ 33,925 $ 6,560 $ 8,420 $ 8,182
================ =============== ================ ===============
</TABLE>
(1) Net of foreign taxes withheld of $26, $30 and $53 for TCW Galileo Asia
Pacific Equity Fund, TCW Galileo Emerging Markets Fund and TCW Galileo Latin
America Equity Fund, respectively.
57
<PAGE>
TCW Galileo Money Market Fund
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1996 Year Ended
(Unaudited) October 31, 1995
----------------- ------------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 3,628 $ 6,660
---------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (3,628) (6,660)
---------------- ---------------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(502,819,362 shares in 1996 and 666,989,130 shares in 1995) 502,819 666,989
Proceeds from Shares Issued upon Reinvestment of Dividends
(2,090,433 shares in 1996 and 4,274,516 shares in 1995) 2,091 4,274
Cost of Shares Redeemed
(403,739,382 shares in 1996 and 709,352,932 shares in 1995) (403,739) (709,353)
---------------- ---------------
Increase (Decrease) in Net Assets Resulting from
Capital Share Transactions 101,171 (38,090)
---------------- ---------------
Increase (Decrease) in Net Assets 101,171 (38,090)
---------------- ---------------
NET ASSETS
Beginning of Period 86,302 124,392
---------------- ---------------
End of Period $ 187,473 $ 86,302
================ ===============
</TABLE>
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
April 30, 1996 Year Ended
(Unaudited) October 31, 1995
------------------ ------------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 386 $ 2,285
Net Realized Gain (Loss) on Investments and
Foreign Currency Transactions 1,085 (1,514)
Change in Unrealized Appreciation (Depreciation) on
Investments and Foreign Currency Translations (1,706) 3,904
---------------- ---------------
Increase (Decrease) in Net Assets Resulting from Operations (235) 4,675
---------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (957) (2,147)
---------------- ---------------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(944,954 shares in 1996 and 2,119,508 shares in 1995) 9,193 19,224
Proceeds from Shares Issued upon Reinvestment of Dividends
(91,385 shares in 1996 and 189,055 shares in 1995) 874 1,718
Cost of Shares Redeemed
(1,362,372 shares in 1996 and 4,148,031 shares in 1995) (13,160) (37,387)
---------------- ---------------
(Decrease) in Net Assets Resulting from
Capital Share Transactions (3,093) (16,445)
---------------- ---------------
(Decrease) in Net Assets (4,285) (13,917)
NET ASSETS
Beginning of Period 36,236 50,153
---------------- ---------------
End of Period $ 31,951 $ 36,236
================ ===============
</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
April 30, 1996 Year Ended
(Unaudited) October 31, 1995
------------------ -----------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 4,431 $ 9,064
Net Realized (Loss) on Investments (450) (1,241)
Change in Unrealized Appreciation (Depreciation)
on Investments (601) 5,286
---------------- ---------------
Increase in Net Assets Resulting from Operations 3,380 13,109
---------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (4,552) (9,725)
Distributions in Excess of Net Investment Income (134) -
---------------- ---------------
Total Distributions to Shareholders (4,686) (9,725)
---------------- ---------------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(4,511,116 shares in 1996 and 4,675,533 shares in 1995) 44,126 44,410
Proceeds from Shares Issued upon Reinvestment of Dividends
(350,290 shares in 1996 and 753,663 shares in 1995) 3,394 7,155
Cost of Shares Redeemed
(3,827,853 shares in 1996 and 5,518,004 shares in 1995) (37,334) (52,874)
---------------- ---------------
Increase (Decrease) in Net Assets Resulting from
Capital Share Transactions 10,186 (1,309)
---------------- ---------------
Increase in Net Assets 8,880 2,075
NET ASSETS
Beginning of Period 92,652 90,577
---------------- ---------------
End of Period $ 101,532 $ 92,652
================ ===============
</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
April 30, 1996 Year Ended
(Unaudited) October 31, 1995
------------------ ----------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 2,081 $ 7,031
Net Realized (Loss) on Investments (776) (4,070)
Change in Unrealized Appreciation
on Investments 1,553 6,177
---------------- ---------------
Increase in Net Assets Resulting from Operations 2,858 9,138
---------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (1,916) (7,576)
Distributions in Excess of Net Investment Income (925) (165)
---------------- ---------------
Total Distributions to Shareholders (2,841) (7,741)
---------------- ---------------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(3,490,871 shares in 1996 and 1,303,201 shares in 1995) 33,522 12,379
Proceeds from Shares Issued upon Reinvestment of Dividends
(278,282 shares in 1996 and 779,171 shares in 1995) 2,668 7,325
Cost of Shares Redeemed
(3,575,696 shares in 1996 and 7,928,897 shares in 1995) (34,393) (74,683)
---------------- ---------------
Increase (Decrease) in Net Assets Resulting from
Capital Share Transactions 1,797 (54,979)
---------------- ---------------
Increase (Decrease) in Net Assets 1,814 (53,582)
NET ASSETS
Beginning of Period 81,366 134,948
---------------- ---------------
End of Period $ 83,180 $ 81,366
================ ===============
</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
April 30, 1996 Year Ended
(Unaudited) October 31, 1995
------------------ ----------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 2,695 $ 5,561
Net Realized Gain (Loss) on Investments 461 (531)
Change in Unrealized Appreciation (Depreciation)
on Investments (2,443) 6,062
---------------- ---------------
Increase in Net Assets Resulting from Operations 713 11,092
---------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (2,644) (6,263)
---------------- ---------------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(548,016 shares in 1996 and 1,550,163 shares in 1995) 5,295 14,209
Proceeds from Shares Issued upon Reinvestment of Dividends
(273,027 shares in 1996 and 681,560 shares in 1995) 2,612 6,205
Cost of Shares Redeemed
(1,696,897 shares in 1996 and 1,293,849 shares in 1995) (16,332) (11,716)
---------------- ---------------
Increase (Decrease) in Net Assets Resulting from
Capital Share Transactions (8,425) 8,698
---------------- ---------------
Increase (Decrease) in Net Assets (10,356) 13,527
NET ASSETS
Beginning of Period 80,159 66,632
---------------- ---------------
End of Period $ 69,803 $ 80,159
================ ===============
</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
April 30, 1996 Year Ended
(Unaudited) October 31, 1995
------------------ ----------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 226 $ 781
Net Realized Gain (Loss) on Investments 8,956 (5,733)
Change in Unrealized Appreciation on Investments 13,794 33,993
---------------- ---------------
Increase in Net Assets Resulting from Operations 22,976 29,041
---------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (722) (543)
---------------- ---------------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(1,746,775 shares in 1996 and 7,935,518 shares in 1995) 24,577 94,454
Proceeds from Shares Issued upon Reinvestment of Dividends
(39,376 shares in 1996 and 40,364 shares in 1995) 539 437
Cost of Shares Redeemed
(2,393,931 shares in 1996 and 5,300,160 shares in 1995) (34,035) (61,790)
---------------- ---------------
Increase (Decrease) in Net Assets Resulting from
Capital Share Transactions (8,919) 33,101
---------------- ---------------
Increase in Net Assets 13,335 61,599
NET ASSETS
Beginning of Period 197,721 136,122
---------------- ---------------
End of Period $ 211,056 $ 197,721
================ ===============
</TABLE>
See accompanying Notes to Financial Statements.
63
<PAGE>
TCW Galileo Earnings Momentum Fund
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<TABLE>
<CAPTION>
November 1, 1994
Six Months Ended (Commencement of
April 30, 1996 Operations) through
(Unaudited) October, 1995
----------------- -------------------
<S> <C> <C>
OPERATIONS
Net Investment (Loss) $ (258) $ (146)
Net Realized Gain on Investments 2,517 368
Change in Unrealized Appreciation on Investments 17,085 7,003
---------------- ---------------
Increase in Net Assets Resulting from Operations 19,344 7,225
---------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions From Realized Gains (130) (22)
---------------- ---------------
CAPITAL SHARE TRANSACTIONS
Shares Issued upon exchange of Limited Partnership
Interests (4,059,985 shares in 1995) - 40,600
Proceeds from Shares Sold
(677,394 shares in 1996 and 3,047,975 shares in 1995) 8,490 31,464
Proceeds from Shares Issued upon
Reinvestment of Dividends
(10,720 shares in 1996 and 2,265 shares in 1995) 126 21
Cost of Shares Redeemed
(678,937 shares in 1996 and 1,580,691 shares in 1995) (8,215) (15,877)
---------------- ---------------
Increase in Net Assets Resulting from
Capital Share Transactions 401 56,208
---------------- ---------------
Increase in Net Assets 19,615 63,411
NET ASSETS
Beginning of Period 63,411 -
---------------- ---------------
End of Period $ 83,026 $ 63,411
================ ===============
</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>
Six Months Ended
April 30, 1996 Year Ended
(Unaudited) October 31, 1995
------------------ -----------------
<S> <C> <C>
OPERATIONS
Net Investment (Loss) $ (281) $ (268)
Net Realized Gain on Investments 3,076 4,011
Change in Unrealized Appreciation on Investments 31,130 13,475
---------------- ---------------
Increase in Net Assets Resulting from Operations 33,925 17,218
---------------- ---------------
DISTRIBUTION TO SHAREHOLDERS
Distributions from Realized Gains (1,514) (2,137)
---------------- ---------------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(2,677,838 shares in 1996 and 1,983,967 shares in 1995) 41,193 23,244
Proceeds from Shares Issued upon Reinvestment of Dividends
(105,139 shares in 1996 and 163,629 shares in 1995) 1,446 2,073
Cost of Shares Redeemed
(489,428 shares in 1996 and 2,704,761 shares in 1995) (7,477) (25,431)
---------------- ---------------
Increase (Decrease) in Net Assets Resulting from
Capital Share Transactions 35,162 (114)
---------------- ---------------
Increase in Net Assets 67,573 14,967
NET ASSETS
Beginning of Period 66,056 51,089
---------------- ---------------
End of Period $ 133,629 $ 66,056
================ ===============
</TABLE>
See accompanying Notes to Financial Statements.
65
<PAGE>
TCW Galileo Asia Pacific Equity Fund
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1996 Year Ended
(Unaudited) October 31, 1995
----------------- -----------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 38 $ 328
Net Realized Gain (Loss) on Investments and
Foreign Currency Transactions 1,810 (612)
Change in Unrealized Appreciation (Depreciation) on
Investments and Foreign Currency Translations 4,712 (5,846)
---------------- ---------------
Increase (Decrease) in Net Assets Resulting from Operations 6,560 (6,130)
---------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income - (218)
Distributions from Realized Gains - (676)
Distributions in Excess of Realized Gains - (1,182)
---------------- ---------------
Total Distributions to Shareholders - (2,076)
---------------- ---------------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(1,230,459 shares in 1996 and 1,755,040 shares in 1995) 11,903 15,396
Proceeds from Shares Issued Upon Reinvestment of Dividends
(234,996 shares in 1995) - 2,014
Cost of Shares Redeemed
(1,283,232 shares in 1996 and 1,905,568 shares in 1995) (11,632) (16,514)
---------------- ---------------
Increase in Net Assets Resulting from
Capital Share Transactions 271 896
---------------- ---------------
Increase (Decrease) in Net Assets 6,831 (7,310)
NET ASSETS
Beginning of Period 46,709 54,019
---------------- ---------------
End of Period $ 53,540 $ 46,709
================ ===============
</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>
Six Months Ended
April 30, 1996 Year Ended
(Unaudited) October 31, 1995
----------------- -----------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 52 $ 298
Net Realized (Loss) on Investments and
Foreign Currency Transactions (1,577) (7,843)
Change in Unrealized Appreciation (Depreciation) on
Investments and Foreign Currency Translations 9,945 (11,550)
---------------- ---------------
Increase in Net Assets Resulting from Operations 8,420 19,095
---------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (137) -
---------------- ---------------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(1,422,489 shares in 1996 and 2,180,661 shares in 1995) 11,183 17,546
Proceeds from Shares Issued Upon Reinvestment of Dividends
(16,668 shares in 1996) 124 -
Cost of Shares Redeemed
(1,763,551 shares in 1996 and 2,181,253 shares in 1995) (12,966) (16,790)
---------------- ---------------
Increase (Decrease) in Net Assets Resulting from
Capital Share Transactions (1,659) 756
---------------- ---------------
Increase (Decrease) in Net Assets 6,624 (18,339)
NET ASSETS
Beginning of Period 51,873 70,212
---------------- ---------------
End of Period $ 58,497 $ 51,873
================ ===============
</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
April 30, 1996 Year Ended
(Unaudited) October 31, 1995
----------------- ------------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 278 $ 356
Net Realized (Loss) on Investments and
Foreign Currency Transactions (2,968) (27,909)
Change in Unrealized Appreciation (Depreciation) on
Investments and Foreign Currency Translations 10,872 (21,001)
---------------- ---------------
Increase (Decrease) in Net Assets Resulting from Operations 8,182 (48,554)
---------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (192) -
Distributions in Excess of Realized Gains - (9,447)
---------------- ---------------
Total Distributions to Shareholders (192) (9,447)
---------------- ---------------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(3,022,482 shares in 1996 and 467,985 shares in 1995) 26,868 4,319
Proceeds from Shares Issued upon Reinvestment of Dividends
(5,047 shares in 1996 and 867,090 shares in 1995) 43 8,922
Cost of Shares Redeemed
(1,021,054 shares in 1996 and 4,601,924 shares in 1995) (8,385) (38,908)
---------------- ---------------
Increase (Decrease) in Net Assets Resulting from
Capital Share Transactions 18,526 (25,667)
---------------- ---------------
Increase (Decrease) in Net Assets 26,516 (83,668)
NET ASSETS
Beginning of Period 38,942 122,610
---------------- ---------------
End of Period $ 65,458 $ 38,942
================ ===============
</TABLE>
See accompanying Notes to Financial Statements.
68
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1996
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. TCW Asia Limited and TCW London
International, Limited are sub-advisers for the TCW Galileo Emerging Markets
Fund and TCW Asia Limited is a sub-adviser to the TCW Galileo Asia Pacific
Equity Fund. The advisers are registered 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 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.
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.
69
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
- -----------------------------------------------------
Security Valuations (cont'd): 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
accreted as interest income using a constant yield to maturity method. The TCW
Galileo High Yield Bond Fund recognizes as interest income discounts on
securities purchased at the time the security is sold. The TCW Galileo High
Grade Fixed Income Fund recognizes as interest income discounts on securities
purchased using a constant yield to maturity accretion method. TCW Galileo High
Grade Fixed Income Fund amortizes premiums as a reduction to interest for
securities purchased in excess of par value on a constant yield to maturity
amortization method. For all other Funds, 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 net realized gain (loss).
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. The Funds have not entered
into any forward foreign currency contracts during the six months ended April
30, 1996.
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, but generally will be
collaterialized at time of delivery by different pools of mortgages with
different prepayment histories than those securities sold. 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.
Dollar roll transactions involve risk that the market value of the security sold
by the Fund may decline below the repurchase price of the security. There were
no such transactions outstanding as of April 30, 1996.
70
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1996
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. There were no option contracts
outstanding as of April 30, 1996.
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.
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 at least 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 gains on investments, to
its shareholders. Therefore, no federal income tax provision is required. At
April 30, 1996, 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 $ 232,375 $ 1,943,548 $ 182,808 $ 1,058,224 $ 56,481,237
Unrealized (Depreciation) (648,784) (1,390,235) (2,699,404) (3,060,188) (2,081,484)
------------ ------------- ------------- ------------- ------------
Net Unrealized Appreciation
(Depreciation) $ (416,409) $ 553,313 $ (2,516,596) $ (2,001,964) $ 54,399,753
============ ============= ============= ============= ============
Cost of Investments for Federal
Income Tax Purposes $ 33,368,827 $ 102,239,951 $ 97,654,541 $ 71,284,678 $156,632,523
============ ============= ============= ============= ============
</TABLE>
<TABLE>
<CAPTION>
TCW Galileo TCW Galileo TCW Galileo TCW Galileo TCWGalileo
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 $ 27,420,753 $ 53,341,778 $ 8,725,508 $ 9,346,776 $ 7,970,510
Unrealized (Depreciation) (1,161,010) (885,155) (1,095,723) (3,398,678) (4,216,123)
------------ ------------- ------------- ------------- ------------
Net Unrealized Appreciation
(Depreciation) $ 26,259,743 $ 52,456,623 $ 7,629,785 $ 5,948,098 $ 3,754,387
============ ============= ============= ============= ============
Cost of Investments for Federal
Income Tax Purposes $ 57,919,078 $ 81,387,351 $ 46,312,864 $ 52,375,311 $ 61,744,156
============ ============= ============= ============= ============
</TABLE>
At October 31, 1995, the following Funds had net realized loss carryforwards for
federal income tax purposes:
<TABLE>
<CAPTION>
Expiring in
------------------------------------------------------
2001 2002 2003
--------------- ------------- -------------
<S> <C> <C> <C>
TCW Galileo High Grade Fixed Income Fund $ - $ 2,712,000 $ 203,000
TCW Galileo High Yield Bond Fund - 243,700 1,213,000
TCW Galileo Mortgage Backed Securities Fund - 446,000 4,070,000
TCW Galileo Long-Term Mortgage
Backed Securities Fund - 44,000 531,000
TCW Galileo Core Equity Fund 726,000 6,864,000 1,403,000
TCW Galileo Asia Pacific Fund - - 914,000
TCW Galileo Emerging Markets Fund - 483,600 7,490,000
TCW Galileo Latin America Equity Fund - - 26,437,000
</TABLE>
72
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1996
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:
<TABLE>
<S> <C>
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%
</TABLE>
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. The ordinary
operating expenses of the TCW Galileo Money Market Fund are limited to 0.40% of
the Fund's daily net assets.
Certain officers and/or directors of the Company are officers and/or directors
of the Adviser.
Note 5 - Purchases and Sales of Securities
Investment transactions (excluding short-term investments) for the six months
ended April 30, 1996 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 $ 46,622,844 $ 57,412,956 $ 30,943,348 $ 13,470,235 $ 36,649,280
============ ============= ============== ================ =============
Sales $ 49,250,715 $ 47,362,612 $ 31,597,744 $ 17,921,555 $ 38,351,102
============ ============= ============== ================ =============
</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 $ 40,306,278 $ 55,406,559 $ 21,069,451 $ 16,629,689 $ 32,790,834
============ ============= ============== ================ =============
Sales $ 33,620,772 $ 17,180,647 $ 21,098,355 $ 20,122,815 $ 14,727,748
============ ============= ============== ================ =============
</TABLE>
73
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
- ----------------------------------------------------
Note 6 - Restricted Securities
The following restricted securities held by the Funds as of April 30, 1996 were
valued both at the date of acquisition and April 30, 1996, 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>
$ 825,000 Dade International, Inc, (144A),
11.125%, due 05/01/06 04/30/96 $ 825,000
$ 1,000,000 First Nationwide Holdings, (144A),
12.5%, due 04/15/03 04/12/96 988,630
$ 500,000 HMC Acquisition Properties, Inc., (144A),
9%, due 12/15/07 12/15/95 500,000
244 Haynes International Corp.,
(Private Placement), Common Stock 06/12/90 2,432
56 Haynes International Corp.,
(Private Placement), Common Stock 02/03/92 555
$ 1,000,000 Plains Resources, Inc., (144A),
Senior Subordinated Notes, 10.25%, 03/14/96 993,850
due 03/15/06
$ 90,000 Terex Corp., Units, (144A),
13.75%, due 05/15/02 04/27/95 90,000
$ 640,000 Terex Corp., Units, (144A),
13.75%, due 05/15/02 06/16/95 569,600
300 Terex Corp., Stock Appreciation Rights,
(144A), expires 07/31/96 07/24/92 299
165 Terex Corp., Stock Appreciation Rights,
(144A), expires 07/31/96 10/07/93 1
90 Terex Corp., Stock Appreciation Rights,
(144A), expires 07/31/96 12/28/93 1
$ 190,000 Williamhouse Regency of Delaware, Inc.,
(144A), 13%, due 11/15/05 11/17/95 190,000
$ 375,000 Williamhouse Regency of Delaware, Inc.,
(144A), 13%, due 11/15/05 11/20/95 383,438
$ 750,000 Williamhouse Regency of Delaware, Inc.,
(144A), 13%, due 11/15/05 12/13/95 785,625
$ 1,000,000 Williamhouse Regency of Delaware, Inc.,
(144A), 13%, due 11/15/05 03/27/96 1,116,250
</TABLE>
74
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1996
Note 6 - Restricted Securities (Continued)
The Fund holds 19,220 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 $16,017 at April 30, 1996.
The total value of restricted securities is $6,800,143, which represents 6.7% of
net assets of the Fund at April 30, 1996.
TCW Galileo Mortgage Backed Securities Fund:
<TABLE>
<CAPTION>
Date of
Principal Amount Investment Acquisition Cost
---------------- --------------------------------------------- ----------- --------------
<S> <C> <C> <C>
$ 1,347,790 Greenwich Capital Acceptance, Inc.. (91-03),
(Private Placement), 8.1953%, due 08/25/19 03/21/91 $ 1,338,951
119,741 National Bank of Washington,
(Private Placement), 7.9412%, due 01/25/19 06/13/90 118,507
</TABLE>
The total value of restricted securities is $1,428,295, which represents 1.7% of
net assets of the Fund at April 30, 1996.
TCW Galileo Asia Pacific Equity Fund:
<TABLE>
<CAPTION>
Date of
Number of Shares Investment Acquisition Cost
---------------- --------------------------------------------- ----------- --------------
<S> <C> <C> <C>
3,400 Samsung Electronics Company, Limited (144A),
(1/2 Voting GDR) (South Korea) 07/07/95 $ 357,650
2,200 Samsung Electronics Company, Limited (144A),
(1/2 Voting GDR) (South Korea) 04/16/96 144,760
3,450 Samsung Electronics Company, Limited (144A),
(1/2 Voting GDR) (South Korea) 04/26/96 277,380
</TABLE>
The total value of restricted securities is $674,225, which represents 1.3% of
net assets of the Fund at April 30, 1996.
TCW Galileo Emerging Markets Fund:
<TABLE>
<CAPTION>
Date of
Number of Shares Investment Acquisition Cost
---------------- -------------------------------------------- ----------- --------------
<S> <C> <C> <C>
6,400 Cementos Diamante, S.A., (144A) (ADS) (Colombia) 05/17/94 $ 107,724
3,000 Chilectra, S.A., (144A) (ADR) (Chile) 08/17/95 206,690
22,000 Hindalco Industries, Limited (144A) (GDR) (India) 07/08/94 746,821
3,000 Samsung Electronics Company, Limited (144A),
(1/2 Non-Voting GDR) (South Korea) 09/01/95 205,056
117 Samsung Electronics Company, Limited (144A) 04/24/96 -
(1/2 Voting GDR) (South Korea)
904 Samsung Electronics Company, Limited (144A), 04/24/96 -
(Non-Voting Preferred Shares) (South Korea)
4,195 Siderar, S.A., (144A) (ADR) (Argentina) 04/30/96 71,315
</TABLE>
The total value of restricted securities is $1,487,973, which represents 2.5% of
net assets of the Fund at April 30, 1996.
75
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
- ----------------------------------------------------
Note 6 - Restricted Securities (Continued)
TCW Galileo Latin America Equity Fund:
<TABLE>
<CAPTION>
Date of
Number of Shares Investment Acquisition Cost
---------------- ---------------------------------------------- ------------- -----------
<S> <C> <C> <C>
18,900 Cementos Diamante, S.A. (144A) (ADS) (Colombia) 05/17/94 $ 311,989
14,000 Chilectra, S.A. (144A) (ADR) (Chile) 12/01/95 700,350
16,837 COMPANHIA ENERGETICA DE MINAS GERAIS
(CEMIG)(144A) (ADR) (Brazil) 12/14/94 510,097
13,060 Siderar, S.A. (144A) (ADR) (Argentina) 04/30/96 222,020
</TABLE>
The total value of restricted securities is $1,794,380, which represents 2.7% of
net assets of the Fund at April 30, 1996.
Note 7 - Disclosure of Galileo Funds Voting Results
A Special Meeting of Shareholders of the TCW Galileo Asia Pacific Equity and TCW
Galileo Emerging Markets Funds was held on November 1, 1995. 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 an
amended and restated sub-investment advisory agreement between the TCW Galileo
Asia Pacific Equity Fund, TCW Funds Management, Inc., the Fund's investment
adviser, and TCW Asia Limited, the sub-adviser (votes for: 3,322,546; votes
against: 0; abstentions: 163,973), and (ii) approval of amended and restated
sub-investment advisory agreements between the TCW Galileo Emerging Markets
Fund, TCW Funds Management, Inc., the fund's investment advisor, and TCW Asia
Limited and TCW London International, Limited, the sub-advisers. (both
sub-advisory agreements were approved with votes for: 3,683,240; votes against:
46,531; abstentions: 151,200). 5,304,333 and 7,227,618 shares were outstanding
on the record date of the meeting for the TCW Galileo Asia Pacific Equity and
TCW Galileo Emerging Markets Funds, respectively, and 3,486,519 and 3,812,748
shares entitled to vote were present in person or by proxy at the meeting for
the TCW Galileo Asia Pacific Equity and TCW Galileo Emerging Markets Funds,
respectively.
A Special Meeting of Shareholders of the TCW Galileo Long-Term Mortgage Backed
Securities and TCW Galileo Mortgage Backed Securities Funds was held on February
1, 1996. 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 modification to the investment objective of the TCW Galileo
Long-Term Mortgage Backed Securities Fund (votes for: 4,273,794; votes against
95,669; abstentions: 0), and (ii) approval of a modification to the investment
objective of the TCW Galileo Mortgage Backed Securities Fund (votes for:
6,116,571; votes against: 0; abstentions: 73,282). 7,900,072 and 9,557,864
shares were outstanding on the record date of the meeting for the TCW Galileo
Long-Term Mortgage Backed Securities and TCW Galileo Mortgage Backed Securities
Funds, respectively, and 4,369,463 and 6,189,854 shares entitled to vote were
present in person or by proxy at the meeting for the TCW Galileo Long-Term
Mortgage Backed Securities and TCW Galileo Mortgage Backed Securities Funds,
respectively.
Note 8 - Subsequent Event
On February 15, 1996, the Board of Directors approved the proposed exchange of
limited partnership interests of the TCW Mid-Cap Growth Stocks Limited
Partnership in exchange for a new TCW Galileo Fund. The new Fund which is called
the TCW Galileo Mid-Cap Growth Fund commenced operations on June 1, 1996.
76
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK
77
<PAGE>
TCW Galileo Money Market Fund
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1996 Year Ended
(Unaudited) October 31, 1995
---------------- ----------------
<S> <C> <C>
Net Asset Value per Share, Beginning of Period $ 1.00 $ 1.00
Income from Investment Operations:
Net Investment Income 0.0258 0.0549
Less Distributions:
Distributions from Net Investment Income (0.0258) (0.0549)
-------------- ---------------
Net Asset Value per Share, End of Period $ 1.00 $ 1.00
============== ===============
Total Return 2.60% /(1)/ 5.67%
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 187,473 $ 86,302
Ratio of Net Expenses to Average Net Assets /(5)/ 0.40% /(4)/ 0.40%
Ratio of Net Investment Income to Average Net Assets 5.07% /(4)/ 5.49%
</TABLE>
(1) For the six months ended April 30, 1996 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,
1996, 0.46% for the fiscal year ended October 31, 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.
78
<PAGE>
TCW GALILEO FUNDS, INC.
<TABLE>
<CAPTION>
Ten Months Ended Year Ended December 31, July 14, 1988
-----------------------------------------------------------------
October 31, 1994 (Inception) to
(Note 1) 1993 1992 1991 1990 1989 December 31, 1988
---------------- --------- --------- --------- --------- --------- -------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
0.0304 0.0293 0.0381 0.0620 0.0800 0.0882 0.0379
(0.0304) (0.0293) (0.0381) (0.0620) (0.0800) (0.0882) (0.0379)
---------------- --------- --------- --------- --------- --------- ---------
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
================ ========= ========= ========= ========= ========= =========
3.04% /(2)/ 2.97% 3.92% 6.35% 8.18% 9.22% 7.68% /(3)/
$ 124,392 81,204 $ 183,465 $ 140,987 $ 167,572 $ 88,620 $ 63,703
0.40%/(4)/ 0.40% 0.40% 0.40% 0.40% 0.40% 0.40% /(4)/
3.65%/(4)/ 2.93% 3.81% 6.20% 8.00% 8.82% 8.08% /(4)/
</TABLE>
79
<PAGE>
TCW Galileo High Grade Fixed Income Fund
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
March 1, 1993
Six Months Ended Ten Months (Commencement of
April 30, 1996 Year Ended Ended Operations) through
(Unaudited) October 31, 1995 October 31, 1994 December 31, 1993
---------------- ---------------- ---------------- -------------------
<S> <C> <C> <C> <C>
Net Asset Value per Share, Beginning
of Period $ 9.61 $ 8.94 $ 10.04 $ 10.00
---------- --------- --------- ---------
Income (Loss) from Investment Operations:
Net Investment Income 0.28 0.58 0.44 0.45
Net Realized and Unrealized Gain (Loss)
on Investments and Foreign Currency
Transactions/Translations (0.33) 0.62 (1.16) 0.19
---------- --------- --------- ---------
Total from Investment Operations (0.05) 1.20 (0.72) 0.64
---------- --------- --------- ---------
Less Distributions:
Distributions from Net Investment Income (0.28) (0.53) (0.38) (0.45)
Distributions from Realized Gains - - - (0.14)
Distributions in Excess of Realized Gains - - - (0.01)
---------- --------- --------- ---------
Total Distributions (0.28) (0.53) (0.38) (0.60)
---------- --------- --------- ---------
Net Asset Value per Share, End of Period $ 9.28 $ 9.61 $ 8.94 $ 10.04
========== ========= ========= =========
Total Return (0.60%) /(1)/ 13.92% (7.24)% /(2)/ 6.54% /(3)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 31,951 $ 36,236 $ 50,153 $ 33,328
Ratio of Expenses to Average Net Assets /(5)/ 0.73% /(4)/ 0.68% 0.50% /(4)/ 0.50% /(4)/
Ratio of Net Investment Income to Averag
Net Assets 5.74% /(4)/ 6.38% 6.11% /(4)/ 5.24% /(4)/
Portfolio Turnover Rate 149.52% /(1)/ 223.78% 208.63% /(2)/ 149.96% /(3)/
</TABLE>
(1) For the six months ended April 30, 1996 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) to December 31,
1993 and not indicative of a full year's operating results.
(4) Annualized.
(5) The Investment Adviser had 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
through December 31, 1994. Had such action not been taken, total annualized
operating expenses as a percentage of average net assets would have been
0.72% for the fiscal year ended October 31, 1995, 0.68% for the ten months
ended October 31, 1994, 0.89% for the period March 1, 1993, (commencement
of operations) through December 31, 1993.
80
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo High Yield Bond Fund
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
March 1, 1993
Six Months Ended Ten Months (Commencement of
April 30, 1996 Year Ended Ended Operations) through
(Unaudited) October 31, 1995 October 31, 1994 December 31, 1993
---------------- ---------------- ---------------- -------------------
<S> <C> <C> <C> <C>
Net Asset Value per Share, Beginning
of Period $ 9.74 $ 9.43 $ 10.12 $ 10.00
------------ ---------- ---------- ----------
Income (Loss) from Investment Operations:
Net Investment Income 0.43 0.92 0.73 0.74
Net Realized and Unrealized Gain (Loss)
on Investments (0.09) 0.39 (0.77) 0.27
------------ ---------- ---------- ----------
Total from Investment Operations 0.34 1.31 (0.04) 1.01
------------ ---------- ---------- ----------
Less Distributions:
Distributions from Net Investment Income (0.44) (1.00) (0.65) (0.74)
Distributions in Excess of Net Investment Income (0.01) - - -
Distributions from Realized Gains - - - (0.15)
------------ ---------- ---------- ----------
Total Distributions (0.45) (1.00) (0.65) (0.89)
------------ ---------- ---------- ----------
Net Asset Value per Share, End of Period $ 9.63 $ 9.74 $ 9.43 $ 10.12
============ ========== ========== ==========
Total Return 3.60% /(1)/ 14.65% (0.34)% /(2)/ 10.47% /(3)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 101,532 $ 92,652 $ 90,577 $ 73,737
Ratio of Expenses to Average Net Assets /(5)/ 0.89% /(4)/ 0.87% 0.79% /(4)/ 0.79% /(4)/
Ratio of Net Investment Income to Average
Net Assets 8.92% /(4)/ 9.60% 9.18% /(4)/ 8.60% /(4)/
Portfolio Turnover Rate 51.07% /(1)/ 36.32% 34.01% /(2)/ 47.60% /(3)/
</TABLE>
(1) For the six months ended April 30, 1996 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 had 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. Had such action not been taken, total annualized
operating expenses as a percentage of average net assets would have been
0.88% for the fiscal year ended October 31, 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.
81
<PAGE>
TCW Galileo Mortgage Backed Securities Fund
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
March 1, 1993
Six Months Ended Ten Months (Commencement of
April 30, 1996 Year Ended Ended Operations) through
(Unaudited) October 31, 1995 October 31, 1994 December 31, 1993
---------------- ---------------- ---------------- -------------------
<S> <C> <C> <C> <C>
Net Asset Value per Share, Beginning
of Period $ 9.58 $ 9.41 $ 9.86 $ 10.00
---------- ----------- ---------- ------------
Income (Loss) from Investment Operations:
Net Investment Income 0.25 0.67 0.42 0.50
Net Realized and Unrealized Gain (Loss)
on Investments 0.08 0.25 (0.48) (0.12)
---------- ----------- ---------- ------------
Total from Investment Operations 0.33 0.92 (0.06) 0.38
---------- ----------- ---------- ------------
Less Distributions:
Distributions from Net Investment Income (0.23) (0.71) (0.39) (0.50)
Distributions in Excess of Net Investment Income (0.11) (0.04) - -
Distributions from Realized Gains - - - (0.02)
---------- ----------- ---------- ------------
Total Distributions (0.34) (0.75) (0.39) (0.52)
---------- ----------- ---------- ------------
Net Asset Value per Share, End of Period $ 9.57 $ 9.58 $ 9.41 $ 9.86
========== =========== ========== ============
Total Return 3.48% /(1)/ 10.16% (0.61)% /(2)/ 3.89% /(3)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 83,180 $ 81,366 $ 134,948 $ 147,666
Ratio of Expenses to Average Net Assets /(5)/ 0.67% /(4)/ 0.61% 0.55% /(4)/ 0.55% /(4)/
Ratio of Net Investment Income to Average
Net Assets 5.11% /(4)/ 7.13% 5.18% /(4)/ 5.98% /(4)/
Portfolio Turnover Rate 42.33 /(1)/ 37.83% 65.64% /(2)/ 70.44% /(3)/
</TABLE>
(1) For the six months ended April 30, 1996 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 had 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
through December 31, 1994. Had such action not been taken, total annualized
operating expenses as a percentage of average net assets would have been
0.63% for the fiscal year ended October 31, 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.
82
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo Long-Term Mortgage Backed Securities Fund
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
June 1, 1993
Six Months Ended Ten Months (Commencement of
April 30, 1996 Year Ended Ended Operations) through
(Unaudited) October 31, 1995 October 31, 1994 December 31, 1993
---------------- ---------------- ---------------- -------------------
<S> <C> <C> <C> <C>
Net Asset Value per Share, Beginning
of Period $ 9.56 $ 8.95 $ 10.07 $ 10.00
----------- ----------- ----------- -----------
Income (Loss) from Investment Operations:
Net Investment Income 0.35 0.72 0.63 0.28
Net Realized and Unrealized Gain (Loss)
on Investments (0.27) 0.71 (1.26) 0.07
----------- ----------- ----------- -----------
Total from Investment Operations 0.08 1.43 (0.63) 0.35
----------- ----------- ----------- -----------
Less Distributions:
Distributions from Net Investment Income (0.34) (0.82) (0.49) (0.28)
----------- ----------- ----------- -----------
Net Asset Value per Share, End of Period $ 9.30 $ 9.56 $ 8.95 $ 10.07
=========== =========== =========== ===========
Total Return 8.40% /(1)/ 16.84% (6.39)% /(2)/ 3.51% /(3)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 69,803 $ 80,159 $ 66,632 $ 25,215
Ratio of Expenses to Average Net Assets /(5)/ 0.67% /(4)/ 0.68% 0.65% /(4)/ 0.65% /(4)/
Ratio of Net Investment Income to Average
Net Assets 7.27% /(4)/ 7.88% 8.03% /(4)/ 5.37% /(4)/
Portfolio Turnover Rate 19.38% /(1)/ 23.76% 36.71% /(2)/ 44.47% /(3)/
</TABLE>
(1) For the six months ended April 30, 1996 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 had 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
through December 31, 1994. Had such action not been taken, total annualized
operating expenses as a percentage of average net assets would have been
0.69% for the fiscal year ended October 31, 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.
83
<PAGE>
TCW Galileo Core Equity Fund
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
March 1, 1993
Six Months Ended Ten Months (Commencement of
April 30, 1996 Year Ended Ended Operations) through
(Unaudited) October 31, 1995 October 31, 1994 December 31, 1993
---------------- ---------------- ---------------- -------------------
<S> <C> <C> <C> <C>
Net Asset Value per Share, Beginning
of Period $ 13.69 $ 11.57 $ 11.81 $ 10.00
-------- -------- -------- ---------
Income (Loss) from Investment Operations:
Net Investment Income 0.02 0.06 0.04 0.03
Net Realized and Unrealized Gain (Loss)
on Investments 1.59 2.11 (0.28) 1.81
-------- -------- -------- ---------
Total from Investment Operations 1.61 2.17 (0.24) 1.84
-------- -------- -------- ---------
Less Distributions:
Distributions from Net Investment Income (0.05) (0.05) - (0.03)
-------- -------- -------- ---------
Net Asset Value per Share, End of Period $ 15.25 $ 13.69 $ 11.57 $ 11.81
======== ======== ======== =========
Total Return 11.81%/(1)/ 18.85% (2.03)%/(2)/ 18.41%/(3)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $211,056 $197,721 $136,122 $ 55,885
Ratio of Expenses to Average Net Assets 0.81%/(4)/ 0.85% 0.91%/(4)/ 1.00%/(4)//(5)/
Ratio of Net Investment Income to Average
Net Assets 0.23%/(4)/ 0.48% 0.44%/(4)/ 0.55%/(4)/
Portfolio Turnover Rate 18.55%/(1)/ 53.77% 23.53%/(2)/ 29.67%/(3)/
Average Commission Rate Paid by the Fund $ 0.06
</TABLE>
(1) For the six months ended April 30, 1996 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 had 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
through December 31, 1994. 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.
84
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo Earnings Momentum Fund
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
November 1, 1994
Six Months Ended (Commencement of
April 30, 1996 Operations) through
(Unaudited) October 31, 1995
---------------- -------------------
<S> <C> <C>
Net Asset Value per Share, Beginning of Period $ 11.47 $ 10.00
---------- ----------
Income from Investment Operations:
Net Investment (Loss) (0.05) (0.03)
Net Realized and Unrealized Gain on Investments 3.59 1.51
---------- ----------
Total from Investment Operations 3.54 1.48
---------- ----------
Less Distributions:
Distributions From Realized Gains (0.02) (0.01)
---------- ----------
Net Asset Value per Share, End of Period $ 14.99 $ 11.47
========== ==========
Total Return 30.96%/(1)/ 14.76%
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 83,026 $ 63,411
Ratio of Expenses to Average Net Assets 1.10%/(2)/ 1.14%/(3)/
Ratio of Net Investment (Loss) to Average Net Assets (0.76%)/(2)/ (0.28%)
Portfolio Turnover Rate 50.27%/(1)/ 85.91%
Average Commission Rate Paid by the Fund $ 0.06 85.91%
</TABLE>
(1) For the six months ended April 30, 1996 and not indicative of a full year's
operating results.
(2) Annualized.
(3) The Investment Adviser had 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
through December 31, 1995. Had such action not been taken, total annualized
operating expenses as a percentage of average net assets would have been
1.24% for the period November 1, 1994 (commencement of operations) through
October 31, 1995.
85
<PAGE>
TCW Galileo Small Cap Growth Fund
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
March 1, 1994
Six Months Ended (Commencement of
April 30, 1996 Year Ended Operations) through
(Unaudited) October 31, 1995 October 31, 1994
---------------- ---------------- -------------------
<S> <C> <C> <C>
Net Asset Value per Share, Beginning of Period $ 13.53 $ 9.39 $ 10.00
------------ ----------- ------------
Income (Loss) from Investment Operations:
Net Investment (Loss) (0.03) (0.07) (0.04)
Net Realized and Unrealized Gain (Loss) on Investments 5.42 4.72 (0.57)
------------ ----------- ------------
Total from Investment Operations 5.39 4.65 (0.61)
------------ ----------- ------------
Less Distribuions:
Distribution from Net Realized Gains (0.30) (0.51) -
------------ ----------- ------------
Net Asset Value per Share, End of Period $ 18.62 $ 13.53 $ 9.39
============ =========== ============
Total Return 40.59% /(1)/ 49.89% (6.10%) /(2)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 133,629 $ 66,056 $ 51,089
Ratio of Expenses to Average Net Assets (4) 1.14% /(3)/ 1.21% 1.09% /(3)/
Ratio of Net Investment (Loss) to Average Net Assets (0.64)%/(3)/ (0.61)% (0.59%)/(3)/
Portfolio Turnover Rate 20.60%/(1)/ 89.73% 88.63%/(2)/
Average Commission Rate Paid by the Fund $ 0.06
</TABLE>
(1) For the six months ended April 30, 1996 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 had 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
through December 31, 1994. Had such action not been taken, total annualized
operating expenses as a percentage of average net assets would have been
1.24% for the fiscal year ended October 31, 1995 and 1.39% for the period
March 1, 1994 (commencement of operations) through October 31, 1994.
86
<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, 1996 Year Ended Operations) through
(Unaudited) October 31, 1995 October 31, 1994
---------------- ---------------- -------------------
<S> <C> <C> <C>
Net Asset Value per Share, Beginning of Period $ 8.67 $ 10.19 $ 10.00
------------- ------------- -------------
Income (Loss) from Investment Operations:
Net Investment Income 0.03 0.06 0.03
Net Realized and Unrealized Gain (Loss) on Investments
and Foreign Currency 1.34 (1.19) 0.16
------------- ------------- -------------
Total from Investment Operations 1.37 (1.13) 0.19
------------- ------------- -------------
Less Distributions:
Distributions from Net Investment Income - (0.01) -
Distributions from Realized Gains - (0.38) -
------------- ------------- -------------
Total Distributions - (0.39) -
------------- ------------- -------------
Net Asset Value per Share, End of Period $ 10.04 $ 8.67 $ 10.19
============= ============= =============
Total Return 15.80% /(1)/ (10.98%) 1.90%/(2)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 53,540 $ 46,709 54,019
Ratio of Expenses to Average Net Assets /(4)/ 1.53%/(3)/ 1.47% 1.40%/(3)/
Ratio of Net Investment Income to Average Net Assets 0.33%/(3)/ 0.74% 0.45%/(3)/
Portfolio Turnover Rate 45.08%/(1)/ 102.01% 46.75%/(2)/
Average Commission Rate Paid by the Fund $ 0.02
</TABLE>
(1) For the six months ended April 30, 1996 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 had 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. Had such action not been taken, total annualized
operating expenses as a percentage of average net assets would have been
1.51% for the fiscal year ended October 31, 1995 and 1.60% for the period
March 1, 1994 (commencement of operations) through October 31, 1994.
87
<PAGE>
TCW Galileo Emerging Markets Fund
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
March 1, 1994
Six Months Ended (Commencement of
April 30, 1996 Year Ended Operations) through
(Unaudited) October 31, 1995 October 31, 1994
---------------- ---------------- -------------------
<S> <C> <C> <C>
Net Asset Value per Share, Beginning of Period $ 7.19 $ 9.73 $ 10.00
------------- ------------- -------------
Income (Loss) from Investment Operations:
Net Investment Income (Loss) 0.02 0.04 (0.01)
Net Realized and Unrealized Gain (Loss) on Investments
and Foreign Currency 1.30 (2.58) (0.26)
------------- ------------- -------------
Total from Investment Operations 1.32 (2.54) (0.27)
------------- ------------- -------------
Less Distributions:
Distributions from Net Investment Income (0.02) - -
------------- ------------- -------------
Net Asset Value per Share, End of Period $ 8.49 $ 7.19 $ 9.73
============= ============= =============
Total Return 18.43%/(1)/ (26.11%) (2.70%)/(2)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 58,497 $ 51,873 $ 70,212
Ratio of Expenses to Average Net Assets 1.57%/(3)/ 1.55% 1.70%/(3)/
Ratio of Net Investment Income (Loss) to Average Net Assets 0.80%/(3)/ 0.54% (0.09)/(3)/
Portfolio Turnover Rate 33.48%/(1)/ 74.24% 61.28/(2)/
Average Commission Rate Paid by the Fund $ 0.00
</TABLE>
(1) For the six months ended April 30, 1996 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.
88
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo Latin America Equity Fund
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
March 1, 1993
Six Months Ended Ten Months (Commencement of
April 30, 1996 Year Ended Ended Operations) through
(Unaudited) October 31, 1995 October 31, 1994 October 31, 1993
---------------- ---------------- ---------------- -------------------
<S> <C> <C> <C> <C>
Net Asset Value per Share, Beginning
of Period $ 7.92 $ 14.99 $ 15.11 $ 10.00
---------- ----------- ----------- -----------
Income (Loss) from Investment Operations:
Net Investment Income 0.05 0.06 0.01 0.08
Net Realized and Unrealized Gain (Loss)
on Investments and Foreign Currency 1.54 (5.92) (0.13) 6.35
---------- ----------- ----------- -----------
Total from Investment Operations 1.59 (5.86) (0.12) 6.43
---------- ----------- ----------- -----------
Less Distributions:
Distributions from Net Investment Income (0.05) - - (0.08)
Distributions from Realized Gains - - - (1.21)
Distributions in Excess of Realized Gains - (1.21) - (0.03)
---------- ----------- ----------- -----------
Total Distributions (0.05) (1.21) - (1.32)
---------- ----------- ----------- -----------
Net Asset Value per Share, End of Period $9.46 $7.92 $14.99 $15.11
========== =========== =========== ===========
Total Return 20.10%/(1)/ (40.95)% (0.79)%/(2)/ 64.27%/(3)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $65,458 $38,942 $122,610 $89,910
Ratio of Expenses to Average Net Assets 1.48%/(4)/ 1.58% 1.36%/(4)/ 1.50%/(4)//(5)/
Ratio of Net Investment Income to Average
Net Assets 0.68%/(4)/ 0.59% 0.11/(4)/% 0.77%/(4)/
Portfolio Turnover Rate 24.40%/(1)/ 75.62% 143.65%/(2)/ 120.06%/(3)/
Average Commission Rate Paid by the Fund $ 0.00
</TABLE>
(1) For the six months ended April 30, 1996 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 had 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
through December 31, 1994. 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.
89
<PAGE>
SHAREHOLDER INFORMATION
- -----------------------
<TABLE>
<CAPTION>
<S> <C>
DIRECTORS AND OFFICERS INVESTMENT ADVISER
Marc I. Stern TCW Funds Management, Inc.
Director and Chairman of the Board 865 South Figueroa Street
Los Angeles, California 90017
(213) 244-0000
Thomas E. Larkin, Jr.
Director and President
SUB-ADVISERS
John C. Argue
Director TCW Asia Limited
Suite 1308, One Pacific Plaza
88 Queensway
Norman Barker, Jr. Hong Kong
Director
TCW London International, Limited
Richard W. Call Birkett House
Director 27 Albemarle Street
London W1X3FA
Alvin R. Albe, Jr.
Senior Vice President
CUSTODIAN
Michael E. Cahill
Senior Vice President, BNY Western Trust Company
General Counsel and Assistant Secretary 700 South Flower Street
Suite 200
Los Angeles, California 90017
Ronald E. Robison
Senior Vice President
David K. Sandie TRANSFER AGENT
Senior Vice President and Treasurer
DST Systems, Inc.
811 Main Street
Philip K. Holl Kansas City, Missouri 64105
Secretary
Marie M. Bender
Assistant Secretary DISTRIBUTOR
TCW Brokerage Services
Kevin A. Dickson 865 South Figueroa Street
Assistant Treasurer Los Angeles, California 90017
(213) 244-0000
Hilary G.D. Lord
Assistant Secretary
INDEPENDENT AUDITORS
Deloitte & Touche LLP
1000 Wilshire Boulevard
Los Angeles, California 90017
</TABLE>
90
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