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Previous: EQUITY INCOME FUND CONCEPT SER TEL GLOBAL TR DEF ASSET FUNDS, 497, 1996-01-02 |
Next: MUNICIPAL INVT TR FD MON PYMT SER 548 DEFINED ASSET FDS, 497, 1996-01-02 |
<PAGE>
TCW GALILEO FUNDS, INC.
ANNUAL REPORT
OCTOBER 31, 1995
<PAGE>
TCW GALILEO FUNDS, INC.
TABLE OF CONTENTS
- -----------------
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 Smal1 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....................................................... 76
Independent Auditors' Report............................................... 88
Shareholder Information.................................................... 89
1
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK.
2
<PAGE>
TCW GALILEO FUNDS, INC.
LETTER TO SHAREHOLDERS TO FOLLOW
3
<PAGE>
LETTER TO SHAREHOLDERS TO FOLLOW
4
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo Money Market Fund
October 31,1995
SCHEDULE OF INVESTMENTS
- -----------------------
<TABLE>
<CAPTION>
Principal
Amount INVESTMENTS Value
- ----------- ----------- ------------
<C> <S> <C>
AGENCY FIXED INCOME SECURITIES (13.4% of Net Assets)
$ 1,000,000 Federal Farm Credit Bank, 5.95%, due 02/23/96 $ 981,158
5,000,000 Federal Farm Credit Bank, 6.1%, due 11/01/95 5,000,000
2,400,000 Federal Home Loan Bank, 5.35%, due 10/21/96 2,273,383
2,000,000 Federal Home Loan Mortgage Corp., 5.57%, due 01/02/96 1,980,815
1,315,000 Federal Home Loan Mortgage Corp., 5.85%, due 11/01/95 1,315,000
-----------
TOTAL AGENCY FIXED INCOME SECURITES (Cost: $11,550,356) 11,550,356
-----------
COMMERCIAL PAPER (69.4%)
2,000,000 American Express Credit Corp., 5.65%, due 12/11/95 1,987,444
2,000,000 Ameritech Corp., 5.51%, due 03/08/96 1,960,818
1,500,000 Ameritech Corp., 5.67%, due 12/22/95 1,487,951
2,500,000 Barclay's U.S. Funding Corp., 5.68%, due 01/12/96 2,471,600
2,000,000 BellSouth Telecommunications, Inc., 5.7%, due 11/07/95 1,998,100
2,000,000 Ciesco L.P., 5.55%, due 01/19/96 1,975,642
1,500,000 Ciesco L.P., 5.63%, due 11/02/95 1,499,765
3,000,000 CIT Group Holdings, Inc., 5.72%, due 11/06/95 2,997,617
3,000,000 Commercial Credit Company, 5.74%, due 11/22/95 2,989,955
2,000,000 Florida Power Corp.,5.73%, due 11/06/95 1,998,408
3,000,000 Ford Motor Credit Co., 5.61%, due 12/18/95 2,978,028
2,000,000 General Electric Capital Corp., 5.72%, due 11/14/95 1,995,869
1,000,000 Hartford Steam Boiler Inspection & Insurance Company,
5.75%, due 11/03/95 999,681
1,000,000 Hartford Steam Boiler Inspection & Insurance Company
5.71%, due 12/20/95 992,228
1,000,000 Illinois Tool Works, Inc., 5.74%, due 11/07/95 999,043
2,000,000 Intel Corp., 5.7%, due 11/10/95 1,997,150
2,415,000 Metlife Funding, Inc., 5.71%, due 11/17/95 2,408,871
2,000,000 Pacific Mutual Life Insurance Company, 5.675%, due 11/07/95 1,998,108
1,000,000 Pitney-Bowes Credit Corp., 5.66%, due 11/13/95 998,113
1,400,000 Pitney-Bowes Credit Corp, 5.75%, due 11/28/95 1,393,963
3,000,000 Prudential Funding Corp, 5.7%, due 11/13/95 2,994,300
1,000,000 Prudential Funding Corp,5.73%, due 11/13/95 998,090
2,000,000 SAFECO Credit Company, 5.66%, due 11/13/95 1,996,227
1,470,000 Sara Lee Corp., 5.71%, due 11/17/95 1,466,270
</TABLE>
See accompanying Notes to Financial Statements.
5
<PAGE>
TCW Galileo Money Market Fund
SCHEDULE OF INVESTMENTS (Continued)
- -----------------------------------
<TABLE>
<CAPTION>
Principal
Amount INVESTMENTS Value
- ----------- ----------- ------------
<C> <S> <C>
COMMERCIAL PAPER (Continued)
$ 1,000,000 Toyota Motor Credit Corp., 6.15%, due 12/29/95 $ 990,092
3,000,000 Toyota Motor Credit Corp., 6.4%, due 11/13/95 2,993,600
3,000,000 Transamerica Finance Corp., 5.72%, due 11/20/95 2,990,943
3,000,000 United Parcel Service of America, Inc., 5.71%, due 11/03/95 2,999,048
1,980,000 USAA Capital Corp., 5.73%, due 11/10/95 1,977,164
2,390,000 Walmart Stores, Inc., 5.65%, due 12/22/95 2,370,870
-----------
TOTAL COMMERCIAL PAPER (Cost: $59,904,958) 59,904,958
-----------
CORPORATE FIXED INCOME SECURITIES (17.3%)
1,720,000 American General Finance Corp., 5%, due 06/15/96 1,710,164
2,000,000 American General Finance Corp., 8.875%, due 03/15/96 2,020,321
1,500,000 Associates Corp. of North America, MTN, 4.94%, due 04/02/96 1,493,845
1,000,000 Associates Corp. of North America, MTN, 8.75%, due 04/04/96 1,009,920
2,500,000 Associates Corp. of North America, 4.5%, due 02/15/96 2,487,774
1,500,000 Bank of New York - Delaware, MTN, 6%, due 09/26/96 1,499,903
4,750,000 Smithkline Beecham Corp., MTN, 5.25%, 01/26/96 4,743,473
-----------
TOTAL CORPORATE FIXED INCOME SECURITIES (Cost: $14,965,400) 14,965,400
-----------
SHORT-TERM INVESTMENTS (Cost: $1,260) (0.0%)
--------------------------------------------
1,260 Bank of New York Depositary Reserve, 5%, due 11/01/95 1,260
-----------
TOTAL INVESTMENTS (Cost: $86,421,974) (100.1%) 86,421,974
LIABILITIES IN EXCESS OF OTHER ASSETS (-0.1%) (119,680)
-----------
NET ASSETS (100%) $86,302,294
===========
</TABLE>
See accompanying Notes to Financial Statements.
6
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo High Grade Fixed Income Fund
October 31, 1995
SCHEDULE OF INVESTMENTS
- -----------------------
<TABLE>
<CAPTION>
Principal
Amount FIXED INCOME SECURITIES Value
- ----------- ----------------------- ------------
<C> <S> <C>
ASSET-BACKED SECURITIES (4.1% of Net Assets)
$ 212,841 AFC Home Equity Loan Trust, Series 1993-2, Class A,
6%, due 01/20/13 $ 208,287
198,849 AFC Home Equity Loan Trust, Series 1992-4, Class A,
6.2%, due 09/15/07 197,397
501,436 Old Stone Credit Corp Home Equity Trust 1992-4A
6.55%, due 11/25/07 500,118
598,639 UCFC Home Equity Loans 1993-D, Class A-l,
5.45%, due 07/10/13 584,547
-----------
TOTAL ASSET-BACKED SECURITIES (Cost: $1,530,420) 1,490,349
-----------
FEDERAL AGENCY OBLIGATIONS
AGENCY PASS-THROUGHS (32.7%)
963,241 Federal National Mortgage Association,
Pool #190264, 8%, due 07/01/24 987,919
1,619,494 Federal National Mortgage Association,
Pool #290364, 8%, due 11/01/24 1,660,986
315,247 Federal National Mortgage Association,
Pool #304278, 8%, due 02/01/25 323,324
887,512 Federal National Mortgage Association,
Pool #307103, 8%, due 03/01/25 910,250
l,971,142 Government National Mortgage Association,
Pool #356363, 7%, due 06/15/23 1,959,434
29,142 Government National Mortgage Association,
Pool #346662, 7%, due 07/15/23 28,969
892,084 Government National Mortgage Association,
Pool #376466, 7%, due 04/15/24 886,785
969,377 Government National Mortgage Association,
Pool #780030, 7%, due 06/15/24 967,254
1,004,850 Government National Mortgage Association,
Pool #395887, 7.5%, due 10/15/25 1,018,978
1,000,000 Government National Mortgage Association,
Pool #414693, 7.5%, due 10/15/25 1,014,060
1,995,249 Government National Mortgage Association,
Pool #409862, 8.5%, due 06/15/25 2,078,171
-----------
TOTAL FEDERAL AGENCY OBLIGATIONS-
AGENCY PASS-THROUGHS (Cost: $11,554,891) 11,836,130
-----------
FINANCIAL (1.6%)
500,000 American General Finance Corp., 7.25%, due 05/15/05 518,750
60,000 Security Pacific Corp., 11.5%, due 11/15/00 72,525
-----------
TOTAL FINANCIAL (Cost: $577,629) 591,275
-----------
</TABLE>
See accompanying Notes to Financial Statements.
7
<PAGE>
TCW GALILEO HIGH GRADE FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
- -----------------------------------
<TABLE>
<CAPTION>
Principal
Amount FIXED INCOME SECURITIES Value
- --------- ----------------------- ----------
<S> <C> <C>
INDUSTRIAL (11.1%)
$ 200,000 Carnival Cruise Lines, Inc., 7.2%, due 10/01/23 $ 198,000
200,000 General Motors Corp., 9.125%, due 07/15/01 224,750
1,000,000 General Motors Corp., 9.4%, due 07/15/21 1,241,250
1,000,000 International Paper Company, 8.125%, due 06/15/24 1,083,750
1,000,000 Northrop Grumman Corp., 9.375%, due 10/15/24 1,168,750
100,000 Whirlpool Corp., 9.1%, due 03/15/04 115,125
-----------
TOTAL INDUSTRIAL (Cost: $3,611,532) 4,031,625
-----------
RETAIL (4.0%)
1,000,000 May Department Stores Company, 8.375%, due 08/01/24 1,108,750
90,000 May Department Stores Company, 9.75%, due 02/15/21 116,437
200,000 J. C. Penney Company, Inc., 9.05%, due 03/01/01 224,250
-----------
TOTAL RETAIL (Cost: $1,297,652) 1,449,437
-----------
TRANSPORTATION (COST: $1,127,182) (3.4%)
1,150,000 United Air Lines, 9.56%, due 10/19/18 1,235,042
-----------
U.S. TREASURY OBLIGATIONS (37.0%)
710,000 United States Treasury Bonds, 8.125%, due 08/15/21 858,972
1,480,000 United States Treasury Bonds, 10.75%, due 08/15/05 1,983,052
750,000 United States Treasury Notes, 6.25%, due 08/31/00 765,075
1,200,000 United States Treasury Notes, 7.5%, due 05/15/02 1,303,464
5,435,000 United States Treasury Notes, 7.5%, due 02/15/05 5,992,794
2,385,000 United States Treasury Notes, 8.125%, due 02/15/98 2,508,686
-----------
TOTAL U. S. TREASURY OBLIGATIONS
(Cost: $13,076,142) 13,412,043
-----------
UTILITY - ELECTRIC & GAS (2.4%)
600,000 ANR Pipeline, 9.625%, due 11/01/21 750,000
90,000 Chugach Electric Association Services A, 9.14 %, due 03/15/22 101,700
-----------
TOTAL UTILITY - ELECTRIC & GAS
(Cost: $832,204) 851,700
-----------
TOTAL FIXED INCOME SECURITIES
(COST: $33,607,652) (96.3%) 34,897,601
-----------
</TABLE>
See accompanying Notes to Financial Statements.
8
<PAGE>
TCW GALILEO FUNDS, INC.
October 31, 1995
<TABLE>
<CAPTION>
Principal
Amount FIXED INCOME SECURITIES Value
- ------------- ----------------------- -----
<S> <C> <C>
SHORT-TERM INVESTMENTS (COST $1,046,659) (2.9%)
$1,046,659 Bank of New York Depositary Reserve, 5%, due 11/01/95 $ 1,046,659
-----------
TOTAL INVESTMENTS (COST: $34,654,311) (99.2%) 35,944,260
EXCESS OF OTHER ASSETS OVER LIABILITIES (0.8%) 291,670
-----------
NET ASSETS (100%) $36,235,930
===========
</TABLE>
See accompanying Notes to Financial Statements.
9
<PAGE>
TCW Galileo High Yield Bond Fund
SCHEDULE OF INVESTMENTS
- -----------------------
<TABLE>
<CAPTION>
Principal
Amount CORPORATE FIXED INCOME SECURITIES Value
- ------------ --------------------------------- -----------
<C> <S> <C>
CONSUMER STAPLES (12.6% OF NET ASSETS)
FOOD AND DRUG RETAILING (2.7%)
$ 125,000 Dominick's Finer Foods, 10.875%, due 05/01/05 $ 131,563
321,000 Homeland Stores, Inc., Series C, 12.25%, due 03/01/99 166,920
1,000,000 Penn Traffic Company, 10.25%, due 02/15/02 913,750
560,000 Ralphs Grocery Company, 10.45%, due 06/15/04 561,400
710,000 Ralphs Grocery Company, 11%, due 06/15/05 685,150
-----------
Total Food and Drug Retailing 2,458,783
-----------
HEALTHCARE AND HOSPITAL MANAGEMENT (4.2%)
940,000 Dade International, Inc., 13%, due 02/01/05 1,024,600
760,000 Integrated Health Services, Inc., 10.75%, due 07/15/04 809,400
120,000 Integrated Health Services, Inc., 9.625%, due 05/31/02 121,800
855,000 Ornda Healthcorp, 12.25%, due 05/15/02 940,500
950,000 Tenet Healthcare Corp., 10.125%, due 03/01/05 1,021,250
-----------
Total Healthcare and Hospital Management 3,917,550
-----------
OTHER CONSUMER STAPLES (5.7%)
590,000 American Safety Razor Company, (144A), 9.875%, due 08/01/05 592,950 *
885,000 Chiquita Brands, Inc., 9.125%, due 03/01/04 885,000
475,000 Cott Corp., 9.375%, due 07/01/05 484,500
1,185,000 Curtice-Burns Foods, Inc., 12.25%, due 02/01/05 1,229,438
950,000 Foodbrands America, Inc., 9.75%, due 07/15/00 926,250
590,000 La Petite Holdings, Inc., 9.625%, due 08/01/01 522,150
250,000 Revlon Consumer Products Corp., 9.5%, 06/01/99 253,437
395,000 Specialty Foods Corp., 10.25%, due 08/15/01 363,400
-----------
Total Other Consumer Staples 5,257,125
-----------
TOTAL CONSUMER STAPLES (Cost: $11,624,442) 11,633,458
-----------
CONSUMER CYCLICALS (33.7%)
AUTO PARTS AND EQUIPMENT (0.8%)
740,000 Motorwheel Corp., 11.5%, due 03/01/00 695,600
-----------
</TABLE>
* Restricted security. (See Note 6)
See accompanying Notes to Financial Statements.
10
<PAGE>
TCW GALILEO FUNDS, INC.
October 31, 1995
<TABLE>
<CAPTION>
Principal
Amount CORPORATE FIXED INCOME SECURITIES Value
- ------------ --------------------------------- -----------
<C> <S> <C>
ENTERTAINMENT AND LEISURE (8.6%)
$ 860,000 AMC Entertainment, Inc., 11.875%, due 08/01/00 $ 936,325
915,000 Aztar Corp., 11%, due 10/01/02 896,700
485,000 Aztar Corp., 13.75%, due 10/01/04 523,800
900,000 Bally's Grand, Inc., Series B, 10.375%, due 12/15/03 897,750
1,135,000 Bally's Park Place, Inc., 9.25%, due 03/15/04 1,119,394
1,150,000 California Hotel Finance Corp., 11%, due 12/01/02 1,201,750
950,000 Griffin Gaming, Inc., Variable Rate, due 06/30/00 855,000
1,060,000 Harrah's Operations, Inc., 10.875%, due 04/15/02 1,158,050
325,000 United Artists Theatre Circuit, Inc., 11.5%, due 05/01/02 347,750
-----------
Total Entertainment and Leisure 7,936,519
-----------
LODGING (3.0%)
750,000 John Q. Hammons Hotels, L.P., 8.875%, due 02/15/04 727,500
725,000 La Quinta Motor Inns, 9.25%, due 05/15/03 768,500
1,260,000 Red Roof Inns, Inc., Series B, 9.625%, due 12/15/03 1,253,700
-----------
Total Lodging 2,749,700
-----------
MEDIA (10.2%)
1,200,000 Ackerley Communications, Inc., 10.75%, due 10/01/03 1,260,000
850,000 Argyle Television, Inc., 9.75%, due 11/01/05 847,875
500,000 Century Communications Corp., 9.5% , due 08/15/00 510,000
500,000 Comcast Corp., 9.125%, due 10/15/06 508,750
400,000 Comcast Corp., 9.375%, due 05/15/05 410,000
685,000 Continental Cablevision, Inc., 8.875%, due 09/15/05 717,538
1,085,000 Garden State Newspaper Company, 12%, due 07/01/04 1,087,712
870,000 Heritage Media Corp., 11%, due 06/15/02 933,075
800,000 Jones Intercable, Inc., 11.5%, due 07/15/04 878,000
695,000 K-III Communications Corp., 10.625%, due 05/01/02 741,912
950,000 Rogers Cablesystems, 10%, due 03/15/05 995,125
635,000 Telemundo Group, Inc., 10.25%, due 12/30/01 603,250
-----------
Total Media 9,493,237
-----------
RESTAURANTS (1.7%)
1,040,000 Flagstar Companies, Inc., 10.75%, due 09/15/01 967,200
465,000 Flagstar Companies, Inc., 10.875%, due 12/01/02 423,150
200,000 Foodmaker, Inc., 9.25%, due 03/01/99 185,000
-----------
Total Restaurants 1,575,350
-----------
</TABLE>
See accompanying Notes to Financial Statements.
11
<PAGE>
TCW Galileo High Yield Bond Fund
SCHEDULE OF INVESTMENTS (CONTINUED)
- -----------------------------------
<TABLE>
<CAPTION>
Principal
Amount CORPORATE FIXED INCOME SECURITIES Value
- ----------- --------------------------------- -----------
<C> <S> <C>
RETAILERS (3.4%)
$ 1,130,000 Brylane, L.P., 10%, due 09/01/03 $ 1,050,900
500,000 Finlay Fine Jewelry, Inc., 10.625%, due 05/01/03 493,125
815,000 Hills Stores Company, 10.25%, due 09/30/03 709,050
1,025,000 Orchard Supply Hardware Stores Corp., 9.375%, due 02/15/02 940,438
-----------
Total Retailers 3,193,513
-----------
TEXTILES AND APPAREL (3.0%)
765,000 Ithaca Industries, Inc., 11.125%, due 12/15/02 673,200
920,000 Reeves Industries, Inc., 11%, due 07/15/02 901,600
360,000 Salant Corp., 10.5%, due 12/31/98 313,200
1,040,000 United States Leather, Inc., 10.25%, due 07/31/03 852,800
-----------
Total Textiles and Apparel 2,740,800
-----------
TRANSPORTATION (1.9%)
810,000 International Shipholding Corp., 9%, due 07/01/03 810,000
680,000 Moran Transportation, Inc., 11.75%, due 07/15/04 635,800
101,488 US Air, Inc., Equipment Trust Certificate 90-A, 11.2%,
due 03/19/05 96,413
230,000 US Air, Inc., Senior Secured Pass Thru Certificate,
9.625%, due 09/01/03 218,500
-----------
Total Transportation 1,760,713
-----------
OTHER CONSUMER CYCLICALS (1.1%)
1,050,000 Sealy Corp., 9.5%, due 05/01/03 1,053,936
-----------
TOTAL CONSUMER CYCLICALS (Cost: $31,396,830) 31,199,368
-----------
BASIC MATERIALS (16.8%)
CHEMICALS (3.2%)
320,000 Borden Chemical and Plastics, L.P., 9.5%, due 05/01/05 328,000
1,275,000 NL Industries, Inc., 11.75%, due 10/15/03 1,354,688
1,300,000 Sherritt Gordon Limited, 9.75%, due 04/01/03 1,326,000
-----------
Total Chemicals 3,008,688
-----------
ENERGY (3.6%)
815,000 Energy Ventures, Inc., 10.25%, due 03/15/04 849,637
970,000 Flores and Rucks, Inc., 13.5%, due 12/01/04 1,086,400
1,270,000 Maxus Energy Corp., 9.875%, due 10/15/02 1,254,125
120,000 Tuboscope Corp., 10.75%, due 04/15/03 121,200
-----------
Total Energy 3,311,362
-----------
</TABLE>
See accompanying Notes to Financial Statements.
12
<PAGE>
TCW GALILEO FUNDS, INC.
OCTOBER 31, 1995
<TABLE>
<CAPTION>
Principal
Amount CORPORATE FIXED INCOME SECURITIES Value
- ----------- --------------------------------- -----------
<C> <S> <C>
FOREST PRODUCTS AND PAPER (6.7%)
$ 740,000 Container Corporation of America, 9.75%, due 04/01/03 $ 743,700
350,000 Container Corporation of America, 10.75%, due 05/01/02 365,750
500,000 Container Corporation of America, 11.25%, due 05/01/04 526,250
900,000 Malette, Inc., 12.25%, due 07/15/04 1,005,750
865,000 Rainy River Forest Products, Inc., 10.75%, due 10/15/01 951,500
995,000 Repap Wisconsin, Inc., 9.25%, due 02/01/02 966,394
790,000 Stone Consolidated Corp., 10.25%, due 12/15/00 843,325
800,000 Stone Container Corp., 10.75%, due 10/01/02 838,000
-----------
Total Forest Products and Paper 6,240,669
-----------
METALS AND MINING (3.3%)
850,000 Carbide Graphite Group, Inc., 11.5%, due 09/01/03 918,000
990,000 Northwestern Steel and Wire Company, 9.5%, due 06/15/01 970,200
1,235,000 Republic Engineering Steel, 9.875%, due 12/15/01 1,139,288
-----------
Total Metals and Mining 3,027,488
-----------
TOTAL BASIC MATERIALS (Cost: $14,894,562) 15,588,207
-----------
INDUSTRIAL (23.9%)
BUSINESS SERVICES AND DISTRIBUTORS (7.9%)
1,320,000 Big Flower Press, Inc., 10.75%, due 08/01/03 1,399,200
1,055,000 Earle M. Jorgensen Company, 10.75%, due 03/01/00 1,012,800
900,000 Envirosource, Inc., 9.75%, due 06/15/03 804,375
1,165,000 Fleming Companies, Inc., 10.625%, due 12/15/01 1,229,075
1,265,000 Mid-American Waste Systems, Inc., 12.25%, due 02/15/03 1,277,650
1,050,000 Webcraft Technologies, Inc., 9.375%, due 02/15/02 992,250
610,000 Williamhouse Regency of Delaware, Inc., 11.5%, due 06/15/05 616,100
-----------
Total Business Services and Distributors 7,331,450
-----------
CAPITAL GOODS (0.8%)
855,000 Terex Corp., Units, (144A), 13.75%, due 05/15/02 724,613 *
-----------
COMMUNICATION SERVICES (5.3%)
755,000 MFS Communications, Inc., 0/9.375%, Step-up, due 01/15/04 586,069
1,115,000 Mobile Telecommunications Corp., 13.5%, due 12/15/02 1,257,162
415,000 Paging Network, Inc., 11.75%, due 05/15/02 458,056
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 11/01/01 869,425
940,000 Telex Communications, Inc., 12%, due 07/15/04 972,900
205,000 USA Mobile Communications, Inc., 9.5%, due 02/01/04 195,263
-----------
Total Communication Services 4,863,875
-----------
</TABLE>
* Restricted security. (See Note 6)
See accompanying Notes to Financial Statements.
13
<PAGE>
TCW GALILEO FUNDS, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
- -----------------------------------
<TABLE>
<CAPTION>
Principal
Amount CORPORATE FIXED INCOME SECURITIES Value
- ----------- --------------------------------- -----------
<C> <S> <C>
CONTAINERS AND PACKAGING (2.1%)
$ 830,000 Plastic Containers, Inc., 10.75%, due 04/01/01 $ 863,200
1,110,000 Sweetheart Cup Corp., 9.625%, due 09/01/00 1,110,000
-----------
Total Containers and Packaging 1,973,200
-----------
MISCELLANEOUS MANUFACTURING (7.8%)
580,000 American Rice, Inc. 13%, due 07/31/02 545,200
500,000 BE Aerospace, 9.75%, due 03/01/03 501,250
570,000 Communications and Power Industries, Inc.,
(144A), 12%, due 08/01/05 582,825 *
420,000 Dictaphone Corp., 11.75%, due 08/01/05 417,900
1,156,000 Foamex L.P., 9.5%, due 06/01/00 1,156,000
695,000 NEWFLO Corp., 13.25%, due 11/15/02 712,375
1,115,000 PMI Acquisition Corp., 10.25%, due 09/01/03 1,142,875
955,000 Talley Manufacturing and Technology, Inc.,
10.75%, due 10/15/03 964,550
1,100,000 Waters Corp., Series B, 12.75%, due 09/30/04 1,210,000
-----------
Total Miscellaneous Manufacturing 7,232,975
-----------
TOTAL INDUSTRIAL (Cost: $21,548,745) 22,126,113
-----------
CREDIT SENSITIVE (6.0%)
FINANCIAL SERVICES AND INSTITUTIONS (4.9%)
560,000 American Annuity Group, Inc., 11.125%, due 02/01/03 604,800
1,150,000 Bankers Life Holding Corp., 13%, due 11/01/02 1,311,000
1,250,000 CDV Acquisition, 9.75%, due 02/15/03 1,293,750
630,000 Reliance Group Holdings, Inc., 9%, due 11/15/00 642,600
690,000 Trizec Finance Corp., 10.875%, due 10/15/05 697,762
-----------
Total Financial Services and Institutions 4,549,912
-----------
UTILITIES (1.1%)
578,946 Midland Cogeneration Ventures, L.P., Series
C-91, 10.33%, due 07/23/02 604,998
129,875 Midland Cogeneration Ventures, L.P., Series
C-94, 10.33%, due 07/23/02 135,719
290,000 Texas New Mexico Power, 10.75%, due 09/15/03 306,719
-----------
Total Utilities 1,047,436
-----------
TOTAL CREDIT SENSITIVE (Cost: $5,445,992) 5,597,348
-----------
MULTI-INDUSTRY (1.5%)
660,000 Bell and Howell Group, Inc., 10.75%, due 10/01/02 706,200
730,000 Valcor, Inc., 9.625%, due 11/01/03 678,900
-----------
TOTAL MULTI-INDUSTRY (Cost: $1,411,726) 1,385,100
-----------
TOTAL CORPORATE FIXED INCOME SECURITIES
(COST: $86,322,297) (94.5%) 87,529,594
-----------
</TABLE>
* Restricted security. (See Note 6)
See accompanying Notes to Financial Statements.
14
<PAGE>
TCW GALILEO FUNDS, INC.
October 31, 1995
<TABLE>
<CAPTION>
Principal
Amount U.S. TREASURY Value
- ----------- ------------- ------------
<C> <S> <C>
$ 58,000 U.S. Treasury Security Stripped, due 02/15/96 $ 57,085
58,000 U.S. Treasury Security Stripped, due 08/15/96 55,411
58,000 U.S. Treasury Security Stripped, due 02/15/97 54,054
58,000 U.S. Treasury Security Stripped, due 08/15/97 52,589
58,000 U.S. Treasury Security Stripped, due 02/15/98 51,036
58,000 U.S. Treasury Security Stripped, due 08/15/98 49,582
58,000 U.S. Treasury Security Stripped, due 02/15/99 48,127
-----------
TOTAL U.S. TREASURY SECURITIES
(COST: $357,511) (0.4%) 367,884
-----------
<CAPTION>
Number of
Shares, Rights
or Warrants EQUITY SECURITIES
- -------------- -----------------
<C> <S> <C>
21,420 Edisto Resources Corp., (Restricted Security), Common Stock 117,810 * **
300 Haynes International Corp., (Private Placement), Common Stock 300 * **
100 PST Holdings, Inc., Common Stock 100 **
3,654 Salant Corp., Common Stock 15,073 **
555 Terex Corp., Stock Appreciation Rights, (144A),
expires 07/31/96 56 * **
429 Terex Corp., Stock Appreciation Rights, expires 07/01/97 21 **
17,349 Transamerican Refining, Warrants, expires 02/15/02 60,721 **
-----------
TOTAL EQUITY SECURITIES (COST: $258,193) (0.2%) 194,081
-----------
<CAPTION>
Principal
Amount SHORT-TERM INVESTMENTS (COST: $2,169,101) (2.3%)
- ----------- ------------------------------------------------
<C> <S> <C>
$ 2,169,101 Bank of New York Depositary Reserve, 5%, due 11/01/95 2,169,101
-----------
TOTAL INVESTMENTS (COST $89,107,102) (97.4%) 90,260,660
EXCESS OF OTHER ASSETS OVER LIABILITIES (2.6%) 2,391,701
-----------
NET ASSETS (100%) $92,652,361
===========
</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
- -----------------------
<TABLE>
<CAPTION>
Principal
Amount FIXED INCOME SECURITIES Value
- ---------- ----------------------- -----------
<S> <C> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS -
FIXED RATE (28.1% OF NET ASSETS)
$ 2,130 CMO Mortgage Investors Trust (5-J), 1225.2%, due 12/22/20, (I/O) $ 59,282
3,565 CMO Mortgage Investors Trust (6-J), 1752.4%, due 02/22/21, (I/O) 121,648
1,867,461 Federal Home Loan Mortgage Corp. (1238-E), 6.5%, due 02/15/04, (PAC) 1,864,286
3,767,254 Federal Home Loan Mortgage Corp. (1298-E), 7%, due 06/15/04, (PAC) 3,777,576
1,439,168 Federal Home Loan Mortgage Corp. (1087-G), 8.5%, due 08/15/20, (PAC) 1,466,857
1,534,527 Federal National Mortgage Association (93-201-BA), 4.625%, due 0/25/08, (PAC) 1,513,535
750,000 Federal National Mortgage Association (92-152-K), 7%, due 04/25/99 758,558
9,000,000 Federal National Mortgage Association (91-83-G), 8.8%, due 11/25/19, (PAC) 9,117,720
837,274 Prudential Home Mortgage Securities (92-36-A2), 6.5%, due 11/25/99, (PAC) 833,950
3,158,037 Ryland Acceptance Corporation Four (63-D), 8.75%, due 04/01/19 3,290,706
73,768 Ryland Acceptance Corporation Four (61-A), 8.9%, due 12/01/08 73,768
1,604,041 Sears Mortgage Securities (88-A-A2), 0.656%, due 05/25/18, (I/O) 15,880
-----------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS -
FIXED RATE (Cost: 24,195,667) 22,893,766
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS -
VARIABLE RATE (25.6%)
118,754 Columbia Savings and Loan (88-1A), 6.606%, due 08/25/18 118,160
3,260,472 Federal Home Loan Mortgage Corp. (1573-GC), 8.562%, due 01/15/23, (I/F) 2,230,065
166,625 Guardian Savings and Loan Association (88-1-A), 6.68%, due 07/25/18 141,631
372,988 Guardian Savings and Loan Association (88-3-A), 7.127%, due 11/25/18 317,040
400,155 Guardian Savings and Loan Association (89-3-A), 7.731%, due 05/25/19 340,132
2,036,270 Guardian Savings and Loan Association (89-5-A), 8.063%, due 07/25/19 1,934,457
1,981,541 Guardian Savings and Loan Association (89-4-A), 8.263%, due 07/25/19 1,882,464
102,256 Merrill Lynch Trust (26-B), 6.638%, due 07/01/16 102,831
368,948 Residential Funding Mortgage Securities I (89-4B-B), 6.051%, due 07/25/19 359,033
4,848,287 Resolution Trust Corp. (92-1-A2), 7.532%, due 08/25/20 4,860,408
8,104,086 Resolution Trust Corp. (92-M4-A3), 8.23%, due 09/25/21 7,875,551
3,690 Resolution Trust Corp. (91-6-D2), 3,152%, due 08/25/20, (I/O) 107,493
6,751 Resolution Trust Corp. (91-6-C2), 3,390.6%, due 09/25/28, (I/O) 266,136
309,607 Western Federal Savings and Loan Association (88-9-A), 6.48%, due 12/25/18 306,801
-----------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS -
VARIABLE RATE (Cost: 23,569,653) 20,842,202
-----------
</TABLE>
I/F - Inverse floating rate security whose interest rate moves in the opposite
direction of prevailing interest rates.
I/O - Interest Only security.
PAC - Planned Amortization Class.
See accompanying Notes to Financial Statements.
16
<PAGE>
<TABLE>
<CAPTION>
TCW GALILEO FUNDS, INC.
October 31, 1995
Principal
Amount FIXED INCOME SECURITIES Value
- ---------- ----------------------- ----------
<S> <C> <C>
NON-AGENCY VARIABLE RATE
PASS-THROUGH SECURITIES (2.0%)
$ 1,482,274 Greenwich Capital Acceptance, Inc. (91-03), (Private Placement),
8.494%, due 08/25/19 $ 1,448,923 *
144,545 National Bank of Washington, (Private Placement), 7.989%,
due 01/25/19 145,990 *
----------
TOTAL NON-AGENCY VARIABLE RATE PASS-
THROUGH SECURITIES (Cost: $1,615,615) 1,594,913
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS - FIXED RATE
PASS-THROUGH SECURITIES (3.8%)
1,416,553 Federal Home Loan Mortgage Corp., Gold Pool #M19147, 8.5%,
due 12/01/96 1,426,738
484,171 Federal Home Loan Mortgage Corp., Gold Pool #M11777, 9%,
due 11/01/96 488,558
200,346 Federal Home Loan Mortgage Corp., Pool #212346, 9.5%,
due 08/01/01 209,989
930,905 Federal National Mortgage Association, Pool #163492, 8.5%,
due 05/01/16 959,120
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS -
FIXED RATE PASS-THROUGH SECURITIES (Cost: $3,168,681) 3,084,405
U.S. GOVERNMENT AGENCY OBLIGATIONS - VARIABLE RATE
PASS-THROUGH SECURITIES (32.8%)
86,890 Federal Home Loan Mortgage Corp., Pool #770584, 7%, due 05/01/19 88,592
182,028 Federal Home Loan Mortgage Corp., Pool #405877, 7.698%, due 12/01/20 185,203
4,681,163 Federal Home Loan Mortgage Corp., Pool #846024, 7.737%, due 07/01/24 4,757,466
179,541 Federal Home Loan Mortgage Corp., Pool #865006, 7.807%, due 08/01/18 182,232
4,797,989 Federal Home Loan Mortgage Corp., Pool #407166, 8.004%, due 09/01/22 4,885,457
270,899 Federal Home Loan Mortgage Corp., Pool #865270, 8.053%, due 12/01/18 274,210
223,438 Federal Home Loan Mortgage Corp., Pool #865009, 8.184%, due 11/01/18 227,734
303,932 Federal Home Loan Mortgage Corp., Pool #865275, 8.531%, due 02/01/19 312,345
702,189 Federal Home Loan Mortgage Corp., Pool #310005, 9.918%, due 11/01/19 725,668
4,898,051 Federal National Mortgage Association, Pool #318764, 6.12%, due 08/01/25 5,009,139
2,179,246 Federal National Mortgage Association, Pool #303334, 6.755%, due 04/01/25 2,236,909
497,793 Federal National Mortgage Association, Pool #111365, 7.508%, due 09/01/19 513,225
3,970,014 Federal National Mortgage Association, Pool #303063, 7.621%, due 09/01/24 4,055,885
167,778 Federal National Mortgage Association, Pool #96193, 7.728%, due 09/01/18 169,398
3,000,000 Federal National Mortgage Association, Pool #328747, 7.839%, due 10/01/24 3,075,469
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS -
VARIABLE RATE PASS-THROUGH SECURITIES (Cost: $26,634,208) 26,698,932
----------
TOTAL FIXED INCOME SECURITIES (COST: $79,183,824) (92.3%) 75,114,218
----------
</TABLE>
* Restricted security. (See Note 6)
See accompanying Notes to Financial Statements.
17
<PAGE>
TCW Galileo Mortgage Backed Securities Fund
SCHEDULE OF INVESTMENTS (Continued)
- -----------------------------------
Principal
Amount SHORT-TERM INVESTMENTS (COST: $5,202,783)(6.4%) Value
- ---------- ---------------------------------------------- -----------
$5,202,783 Bank of New York Depositary Reserve, 5%, due 11/01/95 $ 5,202,783
-----------
TOTAL INVESTMENTS (COST: $84,386,607) (98.7%) 80,317,001
EXCESS OF OTHER ASSETS OVER LIABILITIES (1.3%) 1,048,738
-----------
NET ASSETS (100%) $81,365,739
===========
See accompanying Notes to Financial Statements.
18
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo Long-Term Mortgage Backed Securities Fund
October 31, 1995
SCHEDULE OF INVESTMENTS
- -----------------------
<TABLE>
<CAPTION>
Principal
Amount FIXED INCOME SECURITIES Value
- --------- ----------------------- ----------
<S> <C> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS -
FIXED RATE (41.3% OF NET ASSETS)
$ 2,000,000 CMC Securities Corporation III (94-A-A12), 6.75%,
due 02/25/24 (PAC) $ 1,909,460
250,281 Federal Home Loan Mortgage Corp. (1484-K), 6%,
due 01/15/98 250,069
1,875,170 Federal Home Loan Mortgage Corp. (1688-M), 6%, due 08/15/13 1,779,255
2,000,000 Federal Home Loan Mortgage Corp. (1665-M), 6.5%, due 01/15/24 1,949,140
3,144,107 Federal Home Loan Mortgage Corp. (1717-MA), 6.5%, due 04/15/24 3,046,985
3,281,909 Federal Home Loan Mortgage Corp. -
Government National Mortgage Association(43-OA), 6.5%, due 07/17/23 3,231,532
3,038,000 Federal National Mortgage Association (92-194-D), 5.75%, due 09/25/13, (PAC) 3,019,468
2,000,000 Federal National Mortgage Association (93-X-130A-NA), 6.5%, due 05/25/23 1,857,980
1,894,734 Federal National Mortgage Association (93-223-EA), 6.5%, due 12/25/23, (PAC) 1,807,197
1,423,329 Federal National Mortgage Association (93-114-K), 6.5%, due 07/25/08, (PAC) 1,394,791
1,911,450 Federal National Mortgage Association (94-27-DA), 6.5%, due 11/25/23, (PAC) 1,852,845
500,000 Federal National Mortgage Association (93-2-B), 7.2%, due 11/25/03 518,060
1,541,264 Federal National Mortgage Association (94-36-UB), 7.5%, due 08/25/23, (TAC) 1,528,564
2,190,368 GE Capital Mortgage Services, Inc. (91-3-G), 9.5%, due 05/25/21 2,336,203
2,668,624 Prudential Home Mortgage Securities (93-54-A5), 6.5%, due 01/25/24, (PAC) 2,650,797
3,827,923 Ryland Acceptance Corporation Four (63-D), 8.75%, due 04/01/19 3,988,734
-----------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS -
FIXED RATE (Cost: $31,462,618) 33,121,080
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS -
VARIABLE RATE (14.2%)
1,500,000 CMC Securities Corporation III (94-A-A22), 6.441%, due 02/25/24, (I/F) 714,375
1,820,539 Federal Home Loan Mortgage Corp. (1646-MC), 6.489%, due 10/15/22 (I/F) (PAC) 1,307,001
1,098,461 Federal Home Loan Mortgage Corp. (1637-VB), 10.152%, due 12/15/23 (I/F) 963,943
2,000,000 Federal National Mortgage Association (93-X-225C-VS), 5.907%, due 12/25/23, (I/F) 1,202,860
2,288,691 Federal National Mortgage Association (93-189-S), 6.862%, due 10/25/23, (I/F) 1,402,556
1,952,082 Federal National Mortgage Association (93-110-SE), 9.387%, due 5/25/23, (I/F) 1,809,775
1,000,000 Federal National Mortgage Association (93-202-SZ), 10%, due 11/25/23, (I/F)(PAC) 697,160
2,886,645 Federal National Mortgage Association (93-179-SL), 10.5%, due 10/25/23, (I/F) 2,452,869
975,414 Prudential Home Mortgage Securities (93-47-A8), 10.063%, due 12/25/23, (I/F) 817,163
837 TMAC Mortgage Securities Corp. (3-A), 6.538%, due 04/20/13 838
----------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS - VARIABLE RATE (Cost: $12,348,568) 11,368,540
</TABLE>
I/F - Inverse floating rate security whose interest rate moves in the opposite
direction of prevailing interest rates.
PAC - Planned Amortization Class.
TAC - Targeted Amortization Class.
See accompanying Notes to Financial Statements.
19
<PAGE>
TCW Galileo Long-term Mortgage Backed Securities Fund
SCHEDULE OF INVESTMENTS (CONTINUED)
- ----------------------------------
<TABLE>
<CAPTION>
Principal
Amount FIXED INCOME SECURITIES Value
- --------- ---------------------- -----
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -
FIXED RATE PASS-THROUGH SECURITIES (23.2%)
$3,224,551 FHA (#012-11218), 7.125%, due 04/01/29 $ 3,162,091
1,771,271 FHA (#000-13002), 7.125%, due 03/01/04 1,714,431
2,907,867 FHA (#012-11216), 7.185%, due 05/01/29 2,855,177
1,953,086 FHA (#044-10592), 7.625%, due 09/01/22 1,968,965
1,381,637 FHA (#081-11017), 7.75%, due 04/01/24 1,379,482
2,574,908 FHA (#112-43055), 9.25%, due 05/25/32 2,671,467
34,989 Federal Home Loan Mortgage Corp., Pool #250685, 6.5%, due 10/01/99 34,027
1,738,120 Federal National Mortgage Association, Pool #310001, 6%, due 09/01/00 1,713,144
22,251 Federal National Mortgage Association, Pool #62420, 7.5%, due 03/01/06 22,759
32,130 Federal National Mortgage Association, Pool #29542, 8.75%, due 07/01/09 33,411
1,430,090 Government National Mortgage Association, Pool #365618, 7%, due 10/15/33 1,389,876
1,578,205 Government National Mortgage Association, Pool #351003, 7.5%, due 07/15/28 1,565,390
67,691 Government National Mortgage Association, Pool #3933, 8.25%, due 07/15/04 70,028
21,081 Government National Mortgage Association, Pool #176192, 8.25%, due 12/15/01 21,523
19,620 Government National Mortgage Association, Pool #217350, 9.25%, due 08/15/00 20,429
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS - FIXED RATE
PASS-THROUGH SECURITIES (Cost: $18,883,966) 18,622,200
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -
VARIABLE RATE PASS-THROUGH SECURITIES (10.7%)
2,421,842 Federal Home Loan Mortgage Corp., Pool #846089, 7.688%, due 09/01/24 2,468,656
3,019,137 Federal National Mortgage Association, Pool #293181, 7.187%, due 10/01/24 3,072,817
2,999,239 Federal National Mortgage Association, Pool #124410, 7.893%, due 07/01/22 3,060,274
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS -
VARIABLE RATE PASS-THROUGH SECURITIES (Cost: $8,576,958) 8,601,747
----------
TOTAL FIXED INCOME SECURITIES (COST: $71,272,110) (89.4 %) 71,713,567
----------
SHORT-TERM INVESTMENTS (COST: $7,821,021) (9.8%)
7,821,021 Bank of New York Depositary Reserve, 5%, due 11/01/95 7,821,021
----------
TOTAL INVESTMENTS (COST: $79,093,131) (99.2%) 79,534,588
EXCESS OF OTHER ASSETS OVER LIABILITIES (0.8% ) 624,578
----------
NET ASSETS (100%) $80,159,166
===========
</TABLE>
See accompanying Notes to Financial Statements.
20
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo Core Equity Fund
October 31, 1995
<TABLE>
<CAPTION>
SCHEDULE OF INVESTMENTS
- -----------------------
Number
of Shares EQUITY SECURITIES Value
- --------- ----------------- -----
<S> <C> <C>
CONSUMER STAPLES (17.3% OF NET ASSETS)
COSMETICS - HOUSEHOLD PRODUCTS (1.1%)
27,800 Proctor & Gamble Co. $ $2,251,800
--------------
LEISURE, ENTERTAINMENT, PHOTO AND MEDIA (7.3%)
100,000 Electronic Arts, Inc. 3,662,500 **
176,600 News Corp. Ltd. 3,509,925
145,766 Viacom, Inc. Class B 7,288,300 **
--------------
Total Leisure, Entertainment, Photo and Media 14,460,725
--------------
DRUGS & HOSPITAL SUPPLY (1.2%)
99,000 Ivax Corp. 2,252,250
--------------
HEALTHCARE (6.0%)
82,000 Amgen, Inc. 3,936,000 **
161,000 Columbia/HCA Healthcare Corp. 7,909,125
--------------
Total Healthcare 11,845,125
--------------
RETAIL (1.7%)
89,666 Home Depot, Inc. 3,340,059
--------------
TOTAL CONSUMER STAPLES (Cost: $28,693,455) 34,149,959
--------------
CONSUMER CYCLICALS (10.1%)
AUTOS AND AUTO PARTS (10.1%)
127,100 Chrysler Corp. 6,561,538
183,435 Ford Motor Company 5,273,756
159,600 Lear Seating Corp. 4,428,900 **
84,200 Magna International, Inc. 3,641,650
--------------
Total Autos and Auto Parts 19,905,844
--------------
TOTAL CONSUMER CYCLICALS (Cost: $20,348,711) 19,905,844
--------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
21
<PAGE>
TCW Galileo Core Equity Fund
SCHEDULE OF INVESTMENTS (CONTINUED)
- -----------------------------------
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- --------- ----------------- -----------
<S> <C> <C>
CAPITAL GOODS (47.7%)
AEROSPACE AND CONGLOMERATES (6.4%)
101,000 Boeing Company $ 6,628,125
67,200 United Technologies Corp. 5,964,000
-----------
Total Aerospace and Conglomerates 12,592,125
-----------
ELECTRONICS - SEMICONDUCTORS AND INSTRUMENTS (9.3%)
127,300 Intel Corp. 8,895,088
238,000 National Semiconductor Corp. 5,801,250 **
55,100 Texas Instruments, Inc. 3,760,575
-----------
Total Electronics - Semiconductors and Instruments 18,456,913
-----------
ELECTRICAL INSTRUMENTS AND TELECOMMUNICATION EQUIPMENT (5.0%)
118,500 Motorola, Inc. 7,776,562
56,500 Northern Telecom Ltd. 2,034,000
-----------
Total Electrical Instruments and Telecommunication Equipment 9,810,562
-----------
INFORMATION PROCESSING (23.4%)
51,700 America Online, Inc. 4,136,000 **
114,900 Computer Sciences Corp. 7,683,938 **
78,300 First Data Corp. 5,177,588
110,200 General Motors Corp. Class E 5,193,175
87,900 Hewlett-Packard Company 8,141,737
50,700 Microsoft Corp. 5,070,000 **
118,600 Storage Technology Corp. 2,920,525 **
62,500 Xerox Corp. 8,109,375
-----------
Total Information Processing 46,432,338
-----------
MACHINERY AND INFRASTRUCTURE (3.6%)
126,000 America Standard Companies 3,370,500 **
66,100 Caterpillar, Inc. 3,709,862
-----------
Total Machinery and Infrastructure 7,080,362
-----------
TOTAL CAPITAL GOODS (Cost: $68,720,644) 94,372,300
-----------
BASIC INDUSTRIES (14.1%)
PAPER, FOREST PRODUCTS & CONTAINERS (1.4%)
51,500 Champion International Corp. 2,755,250
-----------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
22
<PAGE>
TCW GALILEO FUNDS, INC.
October 31, 1995
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- --------- ----------------- -----
<S> <C> <C>
TRANSPORTATION (12.7%)
79,800 AMR Corp. 5,266,800**
86,961 Burlington Northern Santa Fe 7,293,854
94,500 Delta Airlines, Inc. 6,201,563
68,500 Northwest Airlines Corp. 2,748,562**
20,900 UAL Corp. 3,675,787**
------------
Total Transportation 25,186,566
------------
TOTAL BASIC INDUSTRIES (Cost: $21,607,956) 27,941,816
------------
CREDIT SENSITIVE (6.9%)
BANKS, FINANCIAL SERVICES AND BUILDING (6.9%)
111,100 Citicorp 7,207,612
106,600 Green Tree Financial Corp. 2,838,225
64,300 Merrill Lynch & Co., Inc. 3,568,650
------------
Total Banks, Financial Services and Building 13,614,487
------------
TOTAL CREDIT SENSITIVE (Cost: $10,008,112) 13,614,487
------------
TOTAL EQUITY SECURITIES (COST: $149,378,878) (96.1%) 189,984,406
------------
Principal
Amount TOTAL SHORT-TERM INVESTMENTS (COST: $8,328,211) (4.2%)
- --------- ------------------------------------------------------
$8,328,211 Bank of New York Depositary Reserve, 5%, due 11/01/95 8,328,211
------------
TOTAL INVESTMENTS (COST: $157,707,089)(100.3%) 198,312,617
LIABILITIES IN EXCESS OF OTHER ASSETS (-0.3%) (591,795)
------------
NET ASSETS (100.0%) $197,720,822
============
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
23
<PAGE>
TCW Galileo Earnings Momentum Fund
SCHEDULE OF INVESTMENTS
- -----------------------
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- --------- ----------------- -------------
<S> <C> <C>
CONSUMER STAPLES (35.2% OF NET ASSETS)
BEVERAGES, TOBACCO AND DISTRIBUTION (2.1%)
27,500 Canadaigua Wine Company, Inc., Class A $1,320,000 **
----------
COSMETICS AND HOUSEHOLD PRODUCTS (0.9%)
37,900 First Alert, Inc. 587,450 **
----------
DRUGS & HOSPITAL SUPPLY (7.0%)
21,900 Biochem Pharma, Inc. 837,675 **
15,700 Dura-Pharmaceuticals, Inc. 459,225 **
21,900 Liposome Company, Inc. 336,712 **
52,300 Matrix Pharmaceuticals, Inc. 758,350 **
6,500 Myriad Genetics, Inc. 175,500 **
8,900 Neurogen Corp. 198,025 **
37,200 Noven Pharmaceuticals, Inc. 381,300 **
55,700 Pharmacyclics, Inc. 807,650 **
27,900 Sepracor, Inc. 470,813 **
----------
Total Drugs & Hospital Supply 4,425,250
----------
FOODS, HOTELS AND RESTAURANTS (1.2%)
58,200 Landry's Seafood Restaurants, Inc. 785,700 **
----------
HEALTHCARE (11.6%)
10,200 AHI Healthcare Systems, Inc. 142,800 **
30,300 Alpharma, Inc., Class A 727,200
43,900 AmeriSource Health Corp., Class A 1,196,275 **
54,700 Apria Healthcare Group, Inc. 1,182,888 **
24,000 Depotech Corp. 348,000 **
26,100 Inphynet Medical Management, Inc. 469,800 **
31,500 Integrated Health Services, Inc. 720,563
19,300 Medic Computer Systems, Inc. 1,027,725 **
50,000 Perrigo Company 612,500 **
10,097 Summit Care Corp. 209,513 **
10,600 Total Renal Care Holdings, Inc. 215,975 **
3,700 United Dental Care, Inc. 112,850 **
13,700 Vencor, Inc. 380,175 **
----------
Total Healthcare 7,346,264
----------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
24
<PAGE>
TCW GALILEO FUNDS, INC.
October 31, 1995
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- --------- ----------------- -----
<S> <C> <C>
LEISURE, ENTERTAINMENT, PHOTO AND MEDIA (2.9%)
11,800 Franklin Electronic Publishers, Inc. $ 488,225 **
34,500 Heritage Media Corp. 974,625 **
13,100 Hollywood Entertainment Corp. 350,425 **
----------
Total Leisure, Entertainment, Photo and Media 1,813,275
RETAIL (6.5%)
30,000 Bed, Bath & Beyond, Inc. 937,500 **
15,000 De Rigo S.p.A. (ADR) (Italy) 309,375 **
21,300 Gymboree Corp. 481,912 **
9,100 Oakley, Inc. 313,950 **
25,500 OfficeMax, Inc. 631,125 **
24,975 Staples, Inc. 664,959 **
34,400 Stein Mart, Inc. 378,400 **
23,200 Williams-Sonoma, Inc. 403,100 **
----------
Total Retail 4,120,321
----------
SERVICES - BUSINESS (3.0%)
7,900 CBT Group, PLC (ADR) (Ireland) 356,488 **
31,500 Corporate Express, Inc. 822,938 **
21,200 Stewart Enterprises, Inc., Class A 715,500
----------
Total Services - Business 1,894,926
----------
TOTAL CONSUMER STAPLES (Cost:$19,042,269) 22,293,186
----------
CONSUMER CYCLICALS (1.1%)
AUTOMOTIVE AND AUTOMOTIVE PARTS (1.1%)
25,100 ABS Industries, Inc. 232,175
30,600 Titan Wheel International, Inc. 443,700
----------
TOTAL CONSUMER CYCLICALS (Cost:$652,797) 675,875
----------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
25
<PAGE>
TCW Galileo Earnings Momentum Fund
SCHEDULE OF INVESTMENTS (CONTINUED)
- -----------------------------------
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- --------- ----------------- -----
<S> <C> <C>
CAPITAL GOODS (45.8%)
COMPUTER SOFTWARE AND SERVICES (9.9%)
47,700 American Management Systems, Inc. $1,377,337 **
8,300 Computron Software, Inc. 141,100 **
17,700 Filenet Corp. 803,137 **
32,100 FIserv, Inc. 826,575 **
4,700 Logic Works, Inc. 71,675 **
11,500 NETCOM On-Line Communication Services, Inc. 669,875 **
21,800 Nimbus CD International, Inc. 174,400 **
26,200 Open Environment Corp. 255,450 **
14,600 Progress Software Corp. 956,300 **
7,800 Remedy Corp. 335,400 **
11,300 Zebra Technologies Corp. 672,350 **
----------
Total Computer Software and Services 6,283,599
----------
ELECTRICAL EQUIPMENT (2.8%)
29,300 AFC Cable Systems, Inc. 344,275 **
27,300 Brooktree Corp. 327,600 **
15,400 Kemet Corp. 531,300 **
59,000 Magnetek, Inc. 582,625 **
----------
Total Electrical Equipment 1,785,800
----------
ELECTRONICS - COMMUNICATION EQUIPMENT (8.1%)
28,100 Cidco, Inc. 832,462 **
38,100 Comverse Technology, Inc. 866,775 **
23,500 Digital Link Corp. 373,062 **
48,600 ECI Telecommunications, Ltd. 923,400
25,600 Octel Communications Corp. 873,600 **
20,100 Plantronics, Inc. 670,838 **
2,500 Premisys Communications, Inc. 223,750 **
26,700 Tekelec 387,150 **
----------
Total Electronics - Communication Equipment 5,151,037
----------
ELECTRONICS - SEMICONDUCTORS AND INSTRUMENTS (6.6%)
26,600 ASM Lithography Holding N.V. 1,320,025 **
33,000 Digital Biometrics, Inc. 206,250 **
31,500 Electro Scientific Industries, Inc. 976,500 **
7,500 EPIC Design Technology, Inc. 345,000 **
24,400 Methode Electronics, Inc., Class A 561,200
17,300 SDL, Inc. 441,150 **
14,600 Veeco Instruments, Inc. 350,400 **
----------
Total Electronics - Semiconductors and Instruments 4,200,525
----------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
26
<PAGE>
TCW GALILEO FUNDS, INC.
October 31, 1995
<TABLE>
<CAPTION>
Principal
Amount EQUITY SECURITIES Value
- --------- ------------------ -----
<S> <C> <C>
INFORMATION PROCESSING (9.9%)
14,820 Adobe Systems, Inc. $ 844,740
25,100 Baan Company, N.V. 1,066,750 **
23,700 BDM International, Inc. 592,500 **
22,100 Cadmus Communications Corp. 535,925
5,600 Checkfree Corp. 118,300 **
4,700 Firefox Communications, Inc. 81,075 **
38,200 FTP Software, Inc. 1,031,400 **
1,700 Netscape Communications Corp. 149,600 **
30,000 Quickresponse Services, Inc. 750,000 **
46,700 Symantec Corp. 1,135,394 **
-------------
Total Information Processing 6,305,684
-------------
MACHINERY AND INFRASTRUCTURE (1.8%)
30,000 Indresco, Inc. 513,750 **
33,800 Thermo Power Corp. 485,875 **
15,400 Westinghouse Air Brake Company 134,750 **
-------------
Total Machinery and Infrastructure 1,134,375
-------------
OFFICE EQUIPMENT AND BUILDING SUPPLIES (0.4%)
34,800 Cameron Ashley, Inc. 269,700 **
-------------
POLLUTION CONTROL (6.3%)
30,000 Molten Metal Technologies, Inc. 1,155,000 **
61,200 Tetra Technologies, Inc. 810,900 **
74,200 USA Waste Services, Inc. 1,558,200 **
20,800 U.S. Filter Corp. 483,600 **
-------------
Total Pollution Control 4,007,700
-------------
TOTAL CAPITAL GOODS (Cost: $23,244,596) 29,138,420
-------------
BASIC INDUSTRIES (4.4%)
CHEMICALS (1.1%)
28,300 Mississippi Chemical Corp. 682,737
-------------
ENERGY AND OIL SERVICES (1.3%)
31,900 United Meridian Corp. 538,312 **
11,500 Weatherford Enterra, Inc. 277,438 **
-------------
Total Energy and Oil Services 815,750
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
27
<PAGE>
TCW Galileo Earnings Momentum Fund
SCHEDULE OF INVESTMENTS
- -----------------------
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- --------- ----------------- -----
<S> <C> <C>
METALS (0.6%)
15,300 Schnitzer Steel Industries, Inc. $ 405,450
----------
TRANSPORTATION (1.4%)
53,200 Arkansas Best Corp. 485,450
28,600 Atlas Air, Inc. 425,425 **
----------
Total Transportation 910,875
----------
TOTAL BASIC INDUSTRIES (Cost: $2,909,678) 2,814,812
----------
CREDIT SENSITIVE (3.0%)
BANKS (0.8%)
27,800 Vallicorp Holdings, Inc. 361,400
7,300 WFS Financial, Inc. 121,362 **
----------
Total Banks 482,762
----------
INSURANCE (2.2%)
22,000 PartnerRe Holdings, Ltd. 585,750
31,700 PXRE Corp. 808,349
----------
Total Insurance 1,394,099
----------
TOTAL CREDIT SENSITIVE (Cost: $1,775,275) 1,876,861
----------
TOTAL EQUITY SECURITIES (COST: $47,624,615) (89.5%) 56,799,154
----------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
28
<PAGE>
TCW GALILEO FUNDS, INC.
October 31, 1995
<TABLE>
<CAPTION>
Principal
Amount SHORT-TERM INVESTMENTS (COST: $5,299,744) (8.4%) Value
- -------------- ------------------------------------------------ --------------
<S> <C> <C>
$ 5,299,744 Bank of New York Depositary Reserve, 5%, due 11/01/95 $ 5,299,744
---------------
TOTAL INVESTMENTS (COST: $52,924,359) (97.9%) 62,098,898
EXCESS OF OTHER ASSETS OVER LIABILITIES (2.1%) 1,312,332
---------------
NET ASSETS (100%) $63,411,230
===============
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
29
<PAGE>
TCW Galileo Small Cap Growth Fund
SCHEDULE OF INVESTMENTS
- -----------------------
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- --------- ----------------- -----
<S> <C> <C>
CONSUMER STAPLES (49.9% OF NET ASSETS)
BEVERAGES, TOBACCO AND DISTILLERY (1.6%)
17,000 Canandaigua Wine Company, Inc., Class A $ 816,000 **
11,700 Odwalla, Inc. 236,925 **
----------
Total Beverages, Tobacco and Distillery 1,052,925
----------
COSMETICS AND HOUSEHOLD PRODUCTS (2.4%)
29,500 Sola International, Inc. 722,750 **
43,800 Thermolase Corp. 892,425 **
----------
Total Cosmetics and Household Products 1,615,175
----------
DRUGS AND HOSPITAL SUPPLY (2.2%)
26,300 Dura-Pharmaceuticals, Inc. 769,275 **
19,700 Gulf South Medical Supply, Inc. 408,775 **
17,300 Safeskin Corp. 311,400 **
----------
Total Drugs and Hospital Supply 1,489,450
----------
FOODS, HOTELS AND RESTAURANTS (2.0%)
8,000 Apple South, Inc. 164,000
16,600 Boston Chicken, Inc. 561,287 **
15,000 Papa John's International, Inc. 577,500 **
----------
Total Foods, Hotels and Restaurants 1,302,787
----------
HEALTHCARE (13.7%)
20,200 American Oncology Resources, Inc. 707,000 **
25,600 AmeriSource Health Corp., Class A 697,600 **
17,800 CRA Managed Care, Inc. 427,200 **
8,200 Compdent Corp. 255,225 **
17,400 HealthPlan Services Corp. 358,875 **
6,800 Healthwise of America, Inc. 200,600 **
24,600 Lincare Holdings, Inc. 611,925 **
39,700 Medaphis Corp. 1,260,475 **
15,600 Medic Computer Systems, Inc. 830,700 **
29,300 MedPartners, Inc. 820,400 **
16,000 Omnicare, Inc. 580,000
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
30
<PAGE>
TCW GALILEO FUNDS, INC.
October 31, 1995
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- --------- ----------------- -----
<C> <S> <C>
HEALTHCARE (CONTINUED)
10,800 Orthodontic Centers of America, Inc. $ 345,600 **
3,500 Oxford Health Plans, Inc. 273,875 **
23,550 PhyCor, Inc. 865,462 **
21,000 Rotech Medical Corp. 477,750 **
4,200 Summit Medical Systems, Inc. 69,300 **
1,000 Thermo Cardiosystems, Inc. 48,500 **
2,600 United Dental Care, Inc. 79,300 **
5,400 Vencor, Inc. 149,850 **
------------
Total Healthcare 9,059,637
------------
LEISURE, ENTERTAINMENT, PHOTO AND MEDIA (8.5%)
600 American Radio Systems Corp. 13,500 **
10,800 Anchor Gaming 237,600 **
10,200 Clear Channel Communication, Inc. 836,400 **
25,400 Hollywood Entertainment Corp. 679,450 **
18,200 Learning Company (The) 1,073,800 **
9,100 Lin Television Corp. 260,487 **
6,100 Premiere Radio Networks, Inc. 106,750 **
18,700 Regal Cinemas, Inc. 733,975 **
19,800 Scientific Games Holdings Corp. 648,450 **
48,500 Westwood One, Inc. 763,875 **
8,200 Young Broadcasting Corp. 250,100 **
-------------
Total Leisure, Entertainment, Photo and Media 5,604,387
-------------
RETAIL (10.7%)
14,900 Bed, Bath & Beyond, Inc. 465,625 **
11,000 Blyth Industries, Inc. 555,500 **
11,600 Department 56, Inc. 526,350 **
7,800 Gymboree Corp. 176,475 **
38,100 Just for Feet, Inc. 900,112 **
18,900 Kenneth Cole Productions, Inc. 772,537 **
19,050 OfficeMax, Inc. 471,488 **
27,000 Petsmart, Inc. 904,500 **
36,300 Renters Choice, Inc. 608,025 **
33,000 Stein Mart, Inc. 363,000 **
24,800 Sunglass Hut International, Inc. 675,800 **
14,300 Tiffany & Company 623,837
-------------
Total Retail 7,043,249
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
31
<PAGE>
TCW Galileo Small Cap Growth Fund
SCHEDULE OF INVESTMENTS (CONTINUED)
- -------------------------------------
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- --------- ----------------- -----
<S> <C> <C>
SERVICES - BUSINESS (8.8%)
9,600 Alternative Resources Corp. $ 297,600 **
9,900 CBT Group, PLC (ADR)(Ireland) 446,738 **
34,200 Corporate Express, Inc. 893,475 **
3,600 Corrections Corporation of America 196,200 **
18,900 Filenet Corp. 857,588 **
50,000 Gartner Group, Inc., Class A 2,181,250 **
16,500 Information Resources, Inc. 179,438 **
9,800 Robert Half International, Inc. 357,700 **
21,400 Romac International, Inc. 395,900 **
------------
Total Services - Business 5,805,889
------------
TOTAL CONSUMER STAPLES (Cost:$22,219,506) 32,973,499
------------
CONSUMER CYCLICALS (0.5%)
AUTOMOTIVE AND AUTOMOTIVE PARTS (0.5%)
22,650 Titan Wheel International, Inc. 328,425
------------
TOTAL CONSUMER CYCLICALS (Cost:$282,693) 328,425
------------
CAPITAL GOODS (37.1%)
COMPUTER SOFTWARE AND SERVICES (16.1%)
28,600 Atria Software, Inc. 1,022,450 **
2,500 Broderbund Software, Inc. 173,437 **
13,600 Cambridge Technology Partners, Inc. 771,800 **
13,900 Computron Software, Inc. 236,300 **
21,000 Datastream Systems, Inc. 467,250 **
6,400 Discreet Logic, Inc. 364,800 **
1,200 Imnet Systems, Inc. 30,450 **
7,800 Inso Corp. 278,850 **
14,000 Logic Works, Inc. 213,500 **
60,000 Macromedia, Inc. 2,220,000 **
6,300 Maxis, Inc. 278,775 **
11,800 NETCOM On-Line Communication Services, Inc. 687,350 **
30,400 Netmanage, Inc. 619,400 **
3,600 Peoplesoft, Inc. 309,600 **
53,200 Platinum Software Corp. 352,450 **
18,100 Premenos Technology Corp. 710,425 **
11,400 Remedy Corp. 490,200 **
31,400 Security Dynamics Technologies, Inc. 989,100 **
900 Verity, Inc. 33,075 **
5,700 Xylogics, Inc. 394,015 **
------------
Total Computer Software and Services 10,643,227
------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
32
<PAGE>
TCW GALILEO FUNDS, INC.
October 31, 1995
<TABLE>
<CAPTION>
Number of
Shares or
Warrants EQUITY SECURITIES Value
- -------- ----------------- -----
<S> <C> <C>
ELECTRICAL EQUIPMENT (1.3%)
14,100 Baldor Electric Company $ 338,400
20,400 C.P. Clare Corp. 527,850 **
-------------
Total Electrical Equipment 866,250
-------------
ELECTRONICS - COMMUNICATION EQUIPMENT (7.1%)
3,384 American Satellite Network, Inc., Warrants, expires 06/30/99 3 **
12,800 Ascend Communications, Inc. 832,000 **
16,000 Cascade Communications Corp. 1,140,000 **
10,900 Centennial Cellular Corp. 198,925 **
36,800 Cidco, Inc. 1,090,200 **
42,000 LCI International, Inc. 756,000 **
7,100 Premisys Communications, Inc. 635,450 **
-------------
Total Electronics - Communication Equipment 4,652,578
-------------
ELECTRONICS - SEMICONDUCTORS AND INSTRUMENTS (6.7%)
5,800 ArcSys, Inc. 243,600 **
12,300 ASM Lithography Holding N.V. 610,387 **
22,300 EPIC Design Technology, Inc. 1,025,800 **
2,300 ESS Technology, Inc. 69,000 **
20,000 Maxim Integrated Products, Inc. 1,495,000 **
14,000 Methode Electronics, Inc., Class A 322,000
14,200 Microchip Technology, Inc. 563,563 **
12,400 TelCom Semiconductor, Inc. 97,650 **
--------------
Total Electronics - Semiconductors and Instruments 4,427,000
--------------
INFORMATION PROCESSING (5.9%)
12,948 Adobe Systems, Inc. 738,036
24,700 Aspen Technology, Inc. 679,250 **
23,600 Astea International, Inc. 424,800 **
3,000 Business Objects S.A. (ADR)(France) 129,750 **
25,500 Computer Management Sciences, Inc. 522,750 **
25,700 HNC Software, Inc. 655,350 **
6,700 Oak Technology, Inc. 366,825 **
7,400 Peak Technologies Group (The) 186,850 **
10,700 Performance Systems International, Inc 189,925 **
--------------
Total Information Processing 3,893,536
--------------
TOTAL CAPITAL GOODS (Cost:$14,052,090) 24,482,591
--------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
33
<PAGE>
TCW Galileo Small Cap Growth Fund
SCHEDULE OF INVESTMENTS (CONTINUED)
- -----------------------------------
Number
of Shares EQUITY SECURITIES Value
- ------------ ----------------- ----------
BASIC INDUSTRIES (1.9%)........
ENERGY AND OIL SERVICES (0.1%).
2,600 Global Industries, Ltd. $ 68,250 **
-----------
TRANSPORTATION (1.8%)
54,700 Atlas Air, Inc. 813,662 **
10,000 Fritz Companies, Inc. 350,000 **
-----------
Total Transportation 1,163,662
-----------
TOTAL BASIC INDUSTRIES (Cost: $1,179,538) 1,231,912
-----------
CREDIT SENSITIVE (1.0%)
BANKS (0.0%)
500 Jayhawk Acceptance Corp 6,000 **
-----------
INSURANCE (1.0%)
21,900 Crop Growers Corp. 284,700 **
10,600 Gallagher (Arthur J.) & Company 374,975
-----------
Total Insurance 659,675
-----------
TOTAL CREDIT SENSITIVE (Cost: $620,951) 665,675
-----------
TOTAL EQUITY SECURITIES (COST:$38,354,778)(90.4%) 59,682,102
-----------
Principal
Amount SHORT-TERM INVESTMENTS (COST: $8,024,583) (12.1%)
- ----------- ------------------------------------------------
$8,024,583 Bank of New York Depositary Reserve, 5%, due
11/01/95 8,024,583
-----------
TOTAL INVESTMENTS (COST: $46,379,361) (102.5%) 67,706,685
LIABILITIES IN EXCESS OF OTHER ASSETS (-2.5%) (1,650,670)
-----------
NET ASSETS (100%) 66,056,015
===========
** Non-income producing.
See accompanying Notes to Financial Statements.
34
34
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo Asia Pacific Equity Fund
October 31, 1995
SCHEDULE OF INVESTMENTS
- -----------------------
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- -------- ----------------- -----
<S> <C> <C>
CHINA (COST: $276,988) (0.5% OF NET ASSETS)
250,000 Shanghai Yaohua Pilkington Glass Company Limited, Series B $ 245,000
-----------
HONG KONG (38.3%)
235,000 Amoy Properties, Limited 226,435
408,000 ASM Pacific Technology, Limited 385,214
282,000 Cheung Kong Holdings, Limited 1,590,211
159,500 China Light & Power Company, Limited 849,919
110,000 Citic Pacific, Limited 343,581
313,400 Consolidated Electric Power Asia, Limited 634,356
156,000 Dao Heng Bank Group, Limited 572,001
218,000 Guoco Group, Limited 1,009,390
113,800 Hang Seng Bank, Limited 953,019
242,000 Hong Kong Electric Holdings, Limited 823,172
262,400 Hong Kong Telecommunications, Limited 458,160
305,000 Hong Kong & China Gas Company, Limited 495,066
155,437 HSBC Holdings Public, Limited 2,261,654
269,000 Hutchison Whampoa, Limited 1,482,113
330,000 Hysan Development Company, Limited 840,813
21,000 Jardine Matheson Holdings, Limited 128,100
350,000 New World Development Company, Limited 1,362,555
1,480,000 Ng Fung Hong, Limited 660,390
186,000 Sun Hung Kai Properties, Limited 1,485,488
130,000 Swire Pacific, Limited, Class A 975,193
174,000 Varitronix International, Limited 331,941
-----------
TOTAL HONG KONG (Cost: $15,579,953) 17,868,771
-----------
INDIA (2.3%)
12,000 Bajaj Auto, Limited (GDS) 318,000
30,000 India Cement, Limited (GDR) 228,900
31,000 Larsen & Toubro Limited (GDR) 550,250
-----------
TOTAL INDIA (Cost: $1,075,160) 1,097,150
-----------
INDONESIA (5.5%)
270,000 PT Astra International 540,713
145,450 PT Bank Bali 339,298
90,000 PT HM Sampoerna 831,866
81,470 PT Indofood Sukses Makmur 376,512
177,000 PT Semen Gresik 459,639
-----------
TOTAL INDONESIA (Cost: $2,080,143) 2,548,028
-----------
</TABLE>
See accompanying Notes to Financial Statements.
35
<PAGE>
TCW Galileo Asia Pacific Equity Fund
SCHEDULE OF INVESTMENTS (CONTINUED)
- -----------------------------------
<TABLE>
<CAPTION>
Number of
Shares
or Warrants EQUITY SECURITIES Value
- ----------- ----------------- -------
<S> <C> <C>
MALAYSIA (14.3%)
81,000 Berjaya South Island (Prime Utilities Berhad) $ 748,820
176,000 Commerce Asset Holdings 872,384
319,000 DCB Holdings Berhad 903,540
466,000 Faber Group Berhad 395,972
594,500 Lion Land Berhad 643,145
175,000 Malakoff Berhad 519,768
32,000 MBF Capital Berhad 30,212
235,000 New Straits Times Press Berhad 739,575
80,000 Petronas Gas Berhad 270,653
80,000 Petronas Gas Berhad Warrants, expires 08/17/00 139,732 **
445,000 Renong Berhad 679,229
18,000 Sime Darby Berhad 44,965
100,000 Telekom Malaysia Berhad 715,972
----------
TOTAL MALAYSIA (Cost: $6,630,538) 6,703,967
----------
PAKISTAN (COST: $541,108) (0.6%)
3,010 Pakistan Telecommunications Corporation (GDS) 281,435
----------
PHILIPPINES (2.5%)
1,501,500 Belle Corporation 227,762
46,900 Manila Electric Company, Series B 349,409
345,100 Pilipino Telephone Corporation 304,812
148,000 Security Bank Corporation 272,811
----------
TOTAL PHILIPPINES (Cost: $1,325,501) 1,154,794
----------
SINGAPORE (11.7%)
80,000 City Development, Limited 495,225
104,000 Development Bank of Singapore, Limited 1,191,935
97,000 Far East Levingston Shipbuilding, Limited 418,606
30,000 Fraser & Neave Limited 354,439
110,000 Keppel Corporation, Limited 902,724
195,000 Parkway Holdings, Limited, Warrants, expires 10/13/98 248,320 **
115,000 Singapore Land, Limited 642,731
91,000 United Overseas Bank, Limited 798,302
80,000 Van der Horst, Limited 410,329
----------
TOTAL SINGAPORE (Cost: $5,025,645) 5,462,611
----------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
36
<PAGE>
TCW GALILEO FUNDS, INC.
October 31, 1995
<TABLE>
<CAPTION>
Number of
Shares Warrants
or Rights EQUITY SECURITIES Value
- --------------- ----------------- -------
<S> <C> <C>
SOUTH KOREA (8.1%)
115 Daewoo Corporation Warrants, expires 11/08/96 $ 28,750 **
35 Dong Yang Dragon Trust 525,000
9,000 Halla Engineering & Construction Company, Limited 451,647
9,000 Halla Engineering & Construction Rights, expires 11/22/95 26,252 **
11,000 Korea Electric Power Corporation (New ADR) 270,875
14,500 Korea Electric Power Corporation (ADR) 358,875
60,000 Korea Exchange Bank (IN) 666,492
13,000 L.G. Chemical, Limited (GDR) 308,750
13,500 L.G. Securities, Limited 296,393
7,400 Pohang Iron & Steel Comapny, Limited (ADR) 190,550
2 Samsung Electronics Company, Limited (1/2 Voting GDR) 210
5,500 Samsung Electronics Company, Limited (144A) (1/2 Voting GDR) 643,500 *
130 Tong Yang Cement Corporation, Warrants, expires 08/18/96 19,500 **
----------
TOTAL SOUTH KOREA (Cost: $4,141,984) 3,786,794
----------
TAIWAN (COST: 948,718) (1.8%)
93,300 The Taiwan Index Fund, Limited 863,025
----------
THAILAND (7.1%)
162,100 Bank of Ayudhya Public Company, Limited 933,829
243,780 Electricity Generating Public Company, Limited 832,939
9,600 Mathicon Public Company, Limited 48,057
35,800 Phatra Thanakit Public Company, Limited 280,199
63,500 PTT Exploration & Production Public Company, Limited 575,209
8,700 The Siam Cement Company, Limited Public Company, Limited 474,231
36,000 Swedish Motor Corp. Public Company, Limited 160,191
----------
TOTAL THAILAND (Cost: $2,724,985) 3,304,655
----------
TOTAL EQUITY SECURITIES (COST: $40,351,723) (92.7%) 43,316,230
----------
</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 (CONTINUED)
- -----------------------------------
<TABLE>
<CAPTION>
Principal
Amount CONVERTIBLE SECURITIES Value
- ----------- ---------------------- ------------
<S> <C> <C>
$ 365,000 PHILIPPINES (COST: $365,000) (0.8%)
Bacnotan Consolidated Industries, Inc., Convertible Bond, 5.5%, due 06/21/04 $ 368,650
------------
SOUTH KOREA (COST: 340,734) (0.6%)
210,000 Daewoo Electronics Public Company, Limited, Convertible Bond,
3.5%, due 12/31/07 268,800
------------
THAILAND (2.7%)
315,000 Land & House Public Company, Limited, Convertible Bond,
5%, due 04/29/03 384,300
905,000 Siam Commercial Bank Public Company, Limited, Convertible Bond,
3.25%, due 01/24/04 907,263
------------
TOTAL THAILAND (Cost: $1,269,400) 1,291,563
------------
TOTAL CONVERTIBLE SECURITIES (COST: $1,975,134) (4.1%) 1,929,013
------------
SHORT-TERM INVESTMENTS (COST: $1,797,438) (3.9%)
------------------------------------------------
1,797,438 Bank of New York Depositary Reserve, 5%, due 11/01/95 1,797,438
------------
TOTAL INVESTMENTS (COST: $44,124,295) (100.7%) 47,042,681
LIABILITIES IN EXCESS OF OTHER ASSETS (-0.7%) (333,274)
------------
NET ASSETS (100%) $46,709,407
============
</TABLE>
See accompanying Notes to Financial Statements.
38
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo Emerging Markets Fund
October 31, 1995
SCHEDULE OF INVESTMENTS
- -----------------------
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- --------- ----------------- -----
<S> <C> <C>
ARGENTINA (3.3% OF NET ASSETS)
38,400 Astra Compania Argentina de Petroleo, S.A. $ 56,809
2,600 Banco Frances del Rio de la Plata, S.A. (ADR) 56,875
5,000 Banco de Galicia y Buenos Aires, S.A., Series B 23,591
4,800 Banco de Galicia y Buenos Aires, S.A. (ADR) 91,800
3,300 Buenos Aires Embotelladora, S.A. (ADR) 75,488
8,900 Compania Interamericana de Automoviles, S.A. 32,472
99,702 Compania Naviera Perez Companc S.A.C.F.I.M.F.A. 439,510
8,300 IRSA Inversiones y Representaciones, S.A. 17,423
14,040 Juan Minetti, S.A. 34,384
8,846 Molinos Rio de la Plata, S.A. 55,265
10,800 Nobleza Piccardo 41,563
26,500 Sociedad Comercial del Plata Sociedad Anonima 53,509
8,400 Telecom Argentina STET-France Telecom, S.A., Series B 32,327
4,200 Telecom Argentina STET-France Telecom, S.A., Series B (ADR) 161,175
12,600 Telefonica de Argentina Sociedad Anonima 261,450
9,700 TRANSPORTADORA DE GAS DEL SUR, S.A. (ADR) 99,425
10,401 Yacimientos Petroliferos Fiscales Sociedad del Estado (ADR) 178,117
-------------
TOTAL ARGENTINA (Cost: $1,889,118) 1,711,183
-------------
BRAZIL (2.9%)
355,600 Brasmotor, S.A. 83,205
1,552,473 CENTRAIS ELETRICAS BRASILEIRAS, S.A. (ELETROBRAS) 440,750
3,500 Clark Automotive Products Corporation (CAPCO) (ADR) 26,688**
9,220,000 Companhia Brasileira de Petroleo Ipiranga 87,732
17,500 Companhia Energetica de Sao Paulo 173,906
4,300,000 Companhia Paranaense de Energia (COPEL) 31,749
7,400,000 Companhia Siderurgica Nacional 158,527
7,500 Companhia Souza Cruz Industria e Comercio 53,661
760,000 Light-Servicos de Electricidade, S.A. 229,596
4,850,000 Lojas Americanas, S.A. 116,005
2,700,000 Telecomunicacoes Brasileiras, S.A. (Telebras) 89,682
-------------
TOTAL BRAZIL (Cost: $1,971,885) 1,491,501
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
39
<PAGE>
TCW Galileo Emerging Markets Fund
SCHEDULE OF INVESTMENTS (CONTINUED)
- ----------------------------------
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- ----------- ----------------- ----------
<S> <C> <C>
CHILE (3.6%)
3,300 Administradora de Fondos de Pensiones Provida, S.A. 80,850
1,900 Banco O'Higgins 40,613
3,000 Chilectra, S.A. 125,250
6,800 Chilgener, S.A. (ADR) 163,200
5,400 Compania Cervecerias Unidas, S.A. 124,875
2,300 Compania de Telecomunicaciones de Chile, S.A. 165,600
4,900 Embotelladora Andina, S.A. 162,925
11,100 Enersis, S.A. (ADR) 278,888
7,650 Genesis Chile Fund Limited 291,656
5,100 Madeco, S.A. 126,862
9,850 Maderas y Sinteticos Sociedad Anonima (MASISA) (ADR) 176,069
2,650 Santa Isabel, S.A. 59,956
1,500 Sociedad Quimica y Minera de Chile, S.A. 65,062
-----------
TOTAL CHILE (Cost: $1,857,199) 1,861,806
-----------
CHINA (1.2%)
24,000 Shandong Huaneng Power (ADR) 192,000
586,690 Shanghai Dajiang, Series B 344,974
98,200 Shanghai Yaohua Pilkington Glass Company Limited, Series B 96,236
-----------
TOTAL CHINA (Cost: $650,405) 633,210
-----------
COLOMBIA (2.0%)
30,200 Almacenes Exito, S.A. 109,014
12,400 Banco Industrial Colombiano 168,950
28,246 Banco de Bogota 130,850
8,300 Cementos Diamante, S.A., (144A) (ADS) 141,100*
14,470 Compania Nacional de Chocolates, S.A. 115,348
9,000 Compania Suramericana de Seguros, S.A. 158,829
39,200 Compania de Cemento Argos, S.A. 235,837
-----------
TOTAL COLOMBIA (Cost: $1,440,880) 1,059,928
-----------
GREECE (1.3%)
34,760 Aegek 366,249
7,230 Ergo Bank 311,571
-----------
TOTAL GREECE (Cost: $619,459) 677,820
-----------
HONG KONG (COST: $459,858) (0.9%)
223,000 Consolidated Electric Power Asia, Limited 451,376
-----------
</TABLE>
* Restricted security. (See Note 6)
See accompanying Notes to Financial Statements.
40
<PAGE>
TCW GALILEO FUNDS, INC.
October 31, 1995
<TABLE>
<CAPTION>
Number
or Shares EQUITY SECURITIES Value
- --------- ----------------- -----
<S> <C> <C>
INDIA (1.8%)
6,000 Hindalco Industries, Limited (GDR) $ 186,000
43,000 Larsen & Toubro Limited (GDR) 763,250
----------
TOTAL INDIA (Cost: $892,850) 949,250
INDONESIA (2.7%) ----------
141,000 PT Astra International 282,372
104,000 PT Bank International Indonesia 'Foreign' 363,908
72,475 PT Indofood Sukses Makmur 334,942
8,900 PT Indonesian Satellite Corporation (ADR) 294,813
190,080 PT Mayora Indah 135,951
----------
TOTAL INDONESIA (Cost: $1,415,239) 1,411,986
IRELAND (COST: $275,000) (0.5%) ----------
27,500 Central Asia Investment Company Limited 275,000 +
MALAYSIA (16.5%) ----------
94,000 Berjaya South Island (Prime Utilities Berhad) 869,001
252,000 Commerce Asset Holdings 1,249,095
445,000 Development & Commercial Bank Holdings Berhad 1,260,425
128,000 Genting Berhad 1,102,754
20,000 Land & General Holdings Berhad 46,420
794,500 Lion Land Berhad 859,510
523,000 MBF Capital Berhad 493,784
265,000 New Straits Times Press Berhad 833,989
620,000 Renong Berhad 946,341
113,000 Technology Resources Industries Berhad 286,723
81,000 Telekom Malaysia Berhad 579,937
----------
TOTAL MALAYSIA (Cost: $8,393,073) 8,527,979
----------
</TABLE>
+ Security valued at fair value by the Adviser. (See Note 2)
See accompanying Notes to Financial Statements.
41
<PAGE>
TCW Galileo Emerging Markets Fund
SCHEDULE OF INVESTMENTS (CONTINUED)
- -----------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Units EQUITY SECURITIES Value
- ----------- ----------------- -----
<S> <C> <C>
MEXICO (13.3%).
165,600 Cemex, S.A. de C.V. $ 513,850
386,700 Cifra, S.A. de C.V., Series C 395,972
3,600 Coca Cola FEMSA, S.A. de C.V. (ADR) 64,800
21,000 DESC, S.A. de C.V., Serices B 67,828
13,400 Empresas ICA Sociedad Controladora, S.A. de C.V. (ADR) 127,300
12,500 Empresas La Moderna, S.A. de C.V., (ADR) 175,000
99,600 Fomento Economica Mexicano, S.A. de C.V., Series B 207,348
22,440 Gruma, S.A. de C.V. 66,465
143,800 GRUPO CARSO, S.A. de C.V. Series A1 756,522 **
182,700 Grupo Cementos de Chihuahua, S.A. de C.V., Series B 128,843
4,300 Grupo Embotellador de Mexico (GDR) 44,613
95,900 Grupo Financiero Inbursa, S.A. de C.V., Series B 261,054 **
63,000 Grupo Industria Alfa, S.A. de C.V., Series A 724,189
26,394 Grupo Industrial San Luis, S.A. de C.V., Units 124,711
43,700 Grupo Industrial Bimbo, S.A. de C.V., Series A 166,417
10,613 Grupo Industrial Maseca, S.A. de C.V. (ADR) 102,150
14,030 Grupo Televisa, S.A. (ADR) 242,018
217,600 Industria Automotriz, S.A. Series B 62,272 + **
66,600 Jugos del Valle, S.A. de C.V., Series B 116,292
26,600 Kimberly-Clark de Mexico, S.A. de C.V., Series A 348,914
11,500 Panamerican Beverage (ADR) 314,813
55,745 Telefonos de Mexico, S.A. de C.V., Series L (ADR) 1,532,987
17,300 Transportacion Maritima Mexicana, S.A. de C.V. (TMM), Series A (ADR) 108,125
27,100 Tubos de Acero de Mexico, S.A. de C.V. (TAMSA) (ADR) 182,925
------------
TOTAL MEXICO (Cost: $9,192,704) 6,835,408
------------
PAKISTAN (COST: $713,687) (0.7%)
3,970 Pakistan Telecommunications (GDS) 371,195
-------------
PANAMA (COST: $96,875) (0.2%)
3,100 Banco Latinamericano de Exportaciones, S.A. (ADR) 129,425
-------------
PERU (1.0%)
14,859 Credicorp, Limited 245,174
83,344 Cerveceria Backus y Johnson, S.A. 149,130
5,647 Compania de Minas Buenaventura, S.A. 30,985
19,890 Enrique Ferreyros, S.A. 22,792
34,751 Explosivos, S.A. 92,965
------------
TOTAL PERU (Cost: $530,085) 541,046
------------
</TABLE>
+ Security valued at fair value by the Adviser. (See Note 2)
** Non-income producing.
See accompanying Notes to Financial Statements.
42
<PAGE>
TCW GALILEO FUNDS, INC.
October 31, 1995
<TABLE>
<CAPTION>
Number of
Shares or
Units EQUITY SECURITIES Value
- ---------- ----------------- -----
<S> <C> <C>
PHILIPPINES (1.7%)
209,000 Bacnotan Cement Corporation $ 200,653
94,000 Manila Electric Company, Series B 700,307
----------
TOTAL PHILIPPINES (Cost: $905,948) 900,960
----------
PORTUGAL (2.9%)
25,590 Corticeira Amorim 249,802
28,467 Espirito Santo Financial Holding, S.A. (ADR) 313,137
15,750 Portugal Telecom 297,950
20,650 Soares da Costa 287,771
15,000 Sonae Investments, Series A 346,371
----------
TOTAL PORTUGAL (Cost: $1,802,225) 1,495,031
----------
SINGAPORE (Cost: $385,647)(0.8%)
80,000 Van der Horst, Limited 410,329
----------
SOUTH AFRICA (10.0%)
8,300 Anglo Alpha Limited 295,778
5,100 Anglovaal Limited (144A) (ADR) 192,844 *
29,500 Barlow Limited 380,071
18,400 DeBeers Consolidated Mines Limited (ADR) 506,000
20,000 Malbak Limited 132,950
45,591 Malbak Limited (144A) 303,065 *
103,281 Murray & Roberts Holdings Limited 721,948
10,500 Nedcor Limited, Units (144A) (GDR) 582,750 *
54,700 Pick 'n Pay Stores Limited 198,677
16,559 Pretoria Portland Cement Company Limited 453,920
33,525 Sasol Limited 289,484
21,546 The South African Breweries, Limited (ADR) 702,938
12,200 The South African Breweries, Limited (Ordinary Shares) 400,480
----------
TOTAL SOUTH AFRICA (Cost: $4,095,436) 5,160,905
----------
</TABLE>
* Restricted security. (See Note 6)
See accompanying Notes to Financial Statements.
43
<PAGE>
TCW Galileo Emerging Markets Fund
SCHEDULE OF INVESTMENTS (CONTINUED)
- -----------------------------------
<TABLE>
<CAPTION>
Number
of shares
or Warrants EQUITY SECURITIES Value
- ------------ ----------------- ----------
<S> <C> <C>
SOUTH KOREA (4.1%)
60 Daewoo Corporation Warrants, expires 11/08/96 $ 15,000 **
20 Dong Yang Dragon Trust 300,000
25,000 Korea Electric Power Corporation (New ADR) 615,625
38,000 Korea Exchange Bank (IN) 422,112
11,800 L.G. Chemical, Limited (GDR) 280,250
9,784 Pohang Iron & Steel Company, Limited (ADR) 251,938
42 Samsung Electronics Company, Limited (1/2
Voting GDR) 4,326
60 Samsung Electronics Company, Limited (1/2
Voting GDR) 6,300
593 Samsung Electronics Company, Limited (1/2
Non-Voting GDR) 32,615
3,000 Samsung Electronics Company, Limited (144A)
(1/2 Non-Voting GDR) 195,750 *
-----------
TOTAL SOUTH KOREA (Cost: $2,245,246) 2,123,916
-----------
TAIWAN (COST: $430,352) (0.8%)
43,000 The Taiwan Index Fund, Limited 397,750
-----------
THAILAND (3.8%)
54,000 PTT Exploration & Production Public
Company, Limited 489,154
13,200 The Siam Cement Company, Limited Public
Company, Limited 719,523
94,000 Thai Farmer's Bank 776,798
-----------
TOTAL THAILAND (Cost: $1,992,153) 1,985,475
-----------
TURKEY (1.5%)
444,000 Cimentas, A.S. 268,356
1,898,000 Eczacibasi Yapi 225,732
808,000 Netas Telekomunik 279,626
3,098 Turkiye Garanti Bankasi (ADR) 27,882
-----------
TOTAL TURKEY (Cost: $895,624) 801,596
-----------
VIETNAM (COST: $378,350) (0.7%)
32,900 Lazard Vietnam Fund Limited (Preference Shares) 378,350
-----------
TOTAL COMMON STOCK (Cost: $43,529,298) (78.2%) 40,582,425
-----------
</TABLE>
* Restricted Security. (See Note 6)
** Non-income producing.
See accompanying Notes to Financial Statements.
44
<PAGE>
TCW GALILEO FUNDS, INC.
October 31, 1995
<TABLE>
<CAPTION>
Number of
Shares or
Rights PREFERRED STOCK Value
- ------------ ----------------- ----------
<S> <C> <C>
BRAZIL (12.7%)
46,582,985 Banco Bradesco, S.A $ 426,300
915,800 Banco Itau, S.A 271,426
535 BARDELLA S/A INDUSTRIAS MECANICAS 77,891
1,192,000 Caemi Mineracao e Metalurgia, S.A 67,558
2,626,289 CENTRAIS ELETRICAS BRASILEIRAS, S.A. (ELETROBRAS) 748,340
1,013,677 Companhia Cervejaria Brahma 386,875
7,794,064 COMPANHIA ENERGETICA DE MINAS GERAIS (CEMIG) 166,969
372,164 COMPANHIA ENERGETICA DE MINAS GERAIS (CEMIG), Rights,
expires 11/24/95 - **
656,900 COMPANHIA DE TECIDOS NORTE DE MINAS (COTEMINAS) 204,940
5,739,300 Compania Vale do Rio Doce 925,116
227,600 Confab Industrial, S.A 120,711
2,600,000 Duratex, S.A 127,080
143,771 Industrias Klabin de Papel e Celulose, S.A 134,561
354,600 Itausa - Investimentos Itau, S.A 202,818
5,887,000 Petroleo Brasileiro, S.A. (PETROBRAS) 508,195
13,110,916 Refrigeracao Parana, S.A 30,950
31,947,492 Telecomunicacoes Brasileiras, S.A. (Telebras) 1,295,375
5,668,700 Telecomunicacoes de San Paulo, S.A. (Telesp) 813,579
79,807,000 Usinas Siderurgicas de Minas Gerais, S.A. (USIMINAS) 74,695 **
----------
TOTAL BRAZIL (Cost: $7,127,608) 6,583,379
----------
PERU (COST: $359,653) (0.8%)
227,056 CPT - Telefonica del Peru, S.A 405,278
----------
TOTAL PREFERRED STOCK (Cost: $7,487,261) (13.5%) 6,988,657
----------
TOTAL EQUITY SECURITIES (COST: $51,016,559) (91.7%) 47,571,082
----------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
45
<PAGE>
TCW Galileo Emerging Markets Fund
SCHEDULE OF INVESTMENTS (CONTINUED)
- -----------------------------------
<TABLE>
<CAPTION>
Principal
Amount CONVERTIBLE SECURITIES Value
- --------- ---------------------- -----
<S> <C> <C>
INDIA (COST: $509,760) (0.9%)
$ 450,000 Reliance Industries, Limited, Convertible Bond, 3.5%, due 11/03/99 $ 456,750
------------------
PHILIPPINES (COST: $641,000) (1.3%)
650,000 Bacnotan Consolidated Industries, Inc., Convertible Bond, 5.5%, due 06/21/04 656,500
------------------
SOUTH KOREA (1.4%)
230,000 Daewoo Electronics Public Company, Limited, Convertible Bond, 3.5%,
due 12/31/07 294,400
150,000 Goldstar, Convertible Bond, 3.25%, due 12/31/06 189,000
CHF 250,000 Yukong Limited, Convertible Bond, 1%, due 12/31/98 233,172
------------------
TOTAL SOUTH KOREA (Cost: $1,192,690) 716,572
------------------
THAILAND (1.9%)
$ 303,000 Land & House Public Company, Limited, Convertible Bond, 5%, due 04/29/03 369,660
640,000 Siam Commercial Bank Public Company, Limited, Convertible Bond,
3.25%, due 01/24/04 641,600
------------------
TOTAL THAILAND (Cost: $1,049,629) 1,011,260
------------------
TOTAL CONVERTIBLE SECURITIES (COST: $3,393,079) (5.5%) 2,841,082
------------------
SHORT-TERM INVESTMENTS (COST: $1,580,516) (3.0%)
1,580,516 Bank of New York Depositary Reserve, 5%, due 11/01/95 1,580,516
------------------
TOTAL INVESTMENTS (COST: $55,990,154) (100.2%) 51,992,680
LIABILITIES IN EXCESS OF OTHER ASSETS (-0.2%) (119,496)
------------------
NET ASSETS (100%). $ 51,873,184
==================
</TABLE>
CHF Swiss Franc.
See accompanying Notes to Financial Statements.
46
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo Latin America Equity Fund
October 31, 1995
SCHEDULE OF INVESTMENTS
- -----------------------
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- ------------ ----------------- ----------
<S> <C> <C>
COMMON STOCK
ARGENTINA (9.3% OF NET ASSETS)
97,400 Astra Compania Argentina de Petroleo, S.A $ 144,094
8,600 Banco Frances del Rio de la Plata, S.A. (ADR) 188,125
11,200 Banco de Galicia y Buenos Aires, S.A. (ADR) 214,200
6,600 Buenos Aires Embotelladora, S.A. (ADR) 150,975
20,000 Compania Interamericana de Automoviles, S.A 72,971
224,441 Compania Naviera Perez Companc S.A.C.F.I.M.F.A 989,389
40,050 IRSA Inversiones y Representaciones, S.A 84,071
31,107 Juan Minetti, S.A 76,182
19,900 Molinos Rio de la Plata, S.A 124,325
24,500 Nobleza Piccardo 94,287
47,500 Sociedad Comercial del Plata Sociedad Anonima 95,912
40,500 Telecom Argentina STET - France Telecom, S.A., Series B 155,863
5,600 Telecom Argentina STET - France Telecom, S.A.,
Series B (ADR) 214,900
23,500 Telefonica de Argentina Sociedad Anonima 487,625
16,255 TRANSPORTADORA DE GAS DEL SUR, S.A. (ADR) 166,614
21,900 Yacimientos Petroliferos Fiscales Sociedad
del Estado (ADR) 375,038
----------
TOTAL ARGENTINA (Cost: $3,797,211) 3,634,571
----------
BRAZIL (5.8%)
3,035,033 CENTRAIS ELETRICAS BRASILEIRAS, S.A. (ELETROBRAS) 861,651
6,700 Clark Automotive Products Corporation (CAPCO) (ADR) 51,088 **
16,837 COMPANHIA ENERGETICA DE MINAS GERAIS (CEMIG) (144A) 354,629 *
4,300,000 Companhia Paranaense de Energia (COPEL) 31,749
12,400,000 Companhia Siderurgica Nacional 265,641
16,900 Companhia Souza Cruz Industria e Comercio 120,915
1,337,900 Light-Servicos de Electricidade, S.A 404,180
5,200,000 Telecomunicacoes Brasileiras, S.A. (Telebras) 172,720
----------
TOTAL BRAZIL (Cost: $3,102,176) 2,262,573
----------
CHILE (6.9%)
4,770 Administradora de Fondos de Pensiones
Provida, S.A 116,865
16,000 Chilgener, S.A. (ADR) 384,000
3,700 Compania Cervecerias Unidas, S.A 85,560
5,600 Compania de Telecomunicaciones de Chile, S.A 403,200
4,850 Embotelladora Andina, S.A 161,263
16,782 Enersis, S.A. (ADR) 421,648
8,300 Genesis Chile Fund Limited 316,438
6,300 Madeco, S.A 156,713
22,363 Maderas y Sinteticos Sociedad Anonima (MASISA) (ADR) 399,739
5,625 Santa Isabel, S.A 127,266
2,370 Sociedad Quimica y Minera de Chile, S.A 102,799
----------
TOTAL CHILE (Cost: $2,645,947) 2,675,491
----------
</TABLE>
* Restriced security. (See Note 6)
** Non-income producing.
See accompanying Notes to Financial Statements.
47
<PAGE>
TCW Galileo Latin America Equity Fund
SCHEDULE OF INVESTMENTS (CONTINUED)
- -----------------------------------
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- ------------ ----------------- ----------
<S> <C> <C>
COLOMBIA (5.9%)
69,400 Almacenes Exito, S.A $ 250,516
72,979 Banco de Bogota 338,076
9,770 Banco Industrial Colombiano 133,116
18,900 Cementos Diamante, S.A. (144A) (ADS) 321,300 *
104,828 Compania de Cementos Argos, S.A 630,671
29,358 Compania Nacional de Chocolates, S.A 234,028
22,600 Compania Suramericana de Seguros, S.A 398,837
----------
TOTAL COLOMBIA (Cost: $3,296,251) 2,306,544
----------
MEXICO (31.7%)
275,500 Cemex, S.A. de C.V 854,866
790,040 Cifra, S.A. de C.V., Series C 808,983
2,300 Coca Cola FEMSA, S.A. de C.V. (ADR) 41,400
49,290 Corporacion Industrial San Luis, S.A. de C.V 232,894
32,700 DESC, S.A. de C.V., Series B 105,618
23,300 Empresas ICA Sociedad Controladora, S.A. de C.V. (ADR) 221,350
19,200 Empresas La Moderna, S.A. de C.V. (ADR) 268,800
125,300 Fomento Economico Mexicano, S.A. de C.V., Series B 260,850
41,760 Gruma, S.A. de C.V 123,690
234,200 GRUPO CARSO, S.A. de C.V., Series A1 1,232,110 **
143,100 Grupo Cementos de Chihuahua, S.A. de C.V., Series B 100,917
186,900 Grupo Financiero Inbursa, S.A. de C.V., Series B 508,769
121,359 Grupo Industrial Alfa, S.A., Series A 1,395,029
83,600 Grupo Industrial Bimbo, S.A. de C.V., Series A 318,364
11,358 Grupo Industrial Maseca, S.A. de C.V. (ADR) 109,321
28,040 Grupo Televisa, S.A. (ADR) 483,690
1,740,800 Industria Automotriz, S.A. Series B 498,179 +**
134,700 Jugos Del Valle, S.A. de C.V., Series B 235,200
52,600 Kimberly-Clark de Mexico, S.A. de C.V., Series A 689,958
21,200 Panamerican Beverages, Inc. (ADR) 580,350
101,345 Telefonos de Mexico, S.A., de C.V., Series L (ADR) 2,786,988
28,700 Transportacion Maritima Mexicana, S.A. de C.V. (TMM),
Series A (ADR) 179,375
45,882 Tubos de Acero de Mexico, S.A. de C.V. (TAMSA) (ADR) 309,704
----------
TOTAL MEXICO (Cost: $17,016,462) 12,346,405
----------
PANAMA (COST: $151,563) (0.5%)
4,850 Banco Latinoamericano de Exportaciones, S.A. (ADR) 202,488
----------
PERU (2.9%)
167,197 Cerveceria Backus y Johnston, S.A 299,171
18,072 Compania de Minas Buenaventura, S.A 99,161
19,339 Credicorp, Limited 319,094
53,642 Enrique Ferreyros, S.A 61,467
128,466 Explosivos, S.A 343,671
----------
TOTAL PERU (Cost: $1,122,597) 1,122,564
----------
</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.
October 31, 1995
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- ------------ ----------------- ----------
<C> <S> <C>
VENEZUELA (COST: $971) (0.1%)
18,920 C.A. La Electricidad de Caracas, S.A.C.A $ 21,591
-----------
TOTAL COMMON STOCK (Cost: $31,133,178)(63.1%) 24,572,227
-----------
PREFERRED STOCK
BRAZIL (34.2%)
23,473 Aracruz Celulose, S.A. (ADR) 217,125
86,178,780 Banco Bradesco, S.A 788,658
1,586,000 Banco Itau, S.A 470,060
1,160 BARDELLA, S/A INDUSTRIAS MECANICAS 168,885
475,000 Brasmotor, S.A 111,143
3,175,000 Caemi Mineracao e Metalurgia, S.A 179,947
5,188,180 CENTRAIS ELECTRICAS BRASILEIRAS, S.A. (ELETROBRAS) 1,478,329
9,830,000 Companhia Brasileira de Petroleo Ipiranga 93,536
2,434,784 Companhia Cervejaria Brahma 929,249
1,403,400 COMPANHIA DE TECIDOS NORTE DE MINAS (COTEMINAS) 437,833
34,200 Companhia Energetica de Sao Paulo (ADR) 339,863
10,028,800 Compania Vale do Rio Doce 1,616,539
827,200 Confab Industrial, S.A 438,719
288,062 Industrias Klabin de Papel e Celulose, S.A 269,609
486,000 Itausa - Investimentos Itau, S.A 277,974
5,900,000 Lojas Americanas, S.A 141,119
10,389,999 Petroleo Brasileiro, S.A. (PETROBRAS) 896,915
20,353,207 Refrigeracao Parana, S.A 48,047
58,825,257 Telecomunicacoes Brasileiras, S.A. (Telebras) 2,385,188
13,102,800 Telecomunicacoes de San Paulo, S.A. (Telesp) 1,880,530
161,395,000 Usinas Siderurgicas de Minas Gerais, S.A. (USIMINAS) 151,056
-----------
TOTAL BRAZIL (Cost: $14,001,907) 13,320,324
-----------
PERU (COST: $600,882) (1.9%)
406,676 CPT -Telefonica del Peru, S.A 725,887
-----------
TOTAL PREFERRED STOCK (Cost: $14,602,790)(36.1%) 14,046,211
-----------
TOTAL EQUITY SECURITIES (COST: $45,735,968) (99.2%) 38,618,438
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount SHORT-TERM INVESTMENTS (COST: $361,443)(0.9%) Value
- ------------ --------------------------------------------- ----------
<C> <S> <C>
$ 361,443 Bank of New York Depositary Reserve, 5%, due 11/01/95 361,443
-----------
TOTAL INVESTMENTS (COST: $46,097,411) (100.1%) 38,979,881
LIABILITIES IN EXCESS OF OTHER ASSETS (-0.1%) (37,960)
-----------
NET ASSETS (100%) $38,941,921
===========
</TABLE>
See accompanying Notes to Financial Statements.
49
<PAGE>
<TABLE>
<CAPTION>
TCW GALILEO
MONEY MARKET
STATEMENTS OF ASSETS AND LIABILITIES FUND
- ------------------------------------ -------------
<S> <C>
ASSETS
Investments, at Value(1) $ 86,422
Receivables for Fund Shares Sold --
Receivables for Fund Shares Issued upon Reinvestment of Dividends --
Receivables for Securities Sold --
Accrued Interest and Dividends Receivable 388
Deferred Organization Costs --
--------------
Total Assets 86,810
--------------
LIABILITIES
Distribution Payable 408
Payables for Securities Purchased --
Management Fees and Other Accrued Expenses 100
--------------
Total Liabilities 508
--------------
NET ASSETS $ 86,302
==============
NET ASSETS CONSIST OF:
Paid-in Capital $ 86,302
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 $ 86,302
==============
CAPITAL SHARES OUTSTANDING 86,302,294
==============
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 October 31, 1995 was $86,422, $34,654,
$89,107, $84,387 and $79,093, respectively.
See accompanying Notes to Financial Statements.
50
<PAGE>
TCW GALILEO FUNDS, INC.
Dollar Amounts in Thousands
(Except per Share Amounts)
October 31, 1995
<TABLE>
<CAPTION>
TCW GALILEO TCW GALILEO TCW GALILEO TCW GALILEO LONG-TERM
HIGH GRADE HIGH YIELD MORTGAGE BACKED MORTGAGE BACKED
FIXED INCOME FUND BOND FUND SECURITIES FUND SECURITIES FUND
- ----------------- ----------- --------------- ---------------------
<S> <C> <C> <C>
$ 35,944 $ 90,261 $ 80,317 $ 79,534
2 74 100 --
104 556 395 411
- 213 410 134
466 2,388 631 556
23 23 23 26
---------- ---------- ---------- ----------
36,539 93,515 81,876 80,661
---------- ---------- ---------- ----------
113 756 422 417
133 - -- --
57 107 88 85
---------- ---------- ---------- ----------
303 863 510 502
---------- ---------- ---------- ----------
$ 36,236 $ 92,652 $ 81,366 $ 80,159
========== ========== ========== ==========
$ 37,992 $ 92,834 $ 90,117 $ 80,258
(3,623) (1,457) (4,516) (562)
1,290 1,154 (4,070) 441
577 121 (165) 22
---------- ---------- ---------- ----------
$ 36,236 $ 92,652 $ 81,366 $ 80,159
========== ========== ========== ==========
3,770,108 9,513,757 8,494,948 8,384,717
========== ========== ========== ==========
$ 9.61 $ 9.74 $ 9.58 $ 9.56
========== ========== ========== ==========
</TABLE>
51
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
- ------------------------------------------------
<TABLE>
<CAPTION>
TCW TCW GALILEO
GALILEO CORE EARNINGS MOMENTUM
EQUITY FUND FUND
------------ -----------------
<S> <C> <C>
ASSETS
Investments, at Value (1) $198,313 $62,099
Receivables for Fund Shares Sold -- 425
Receivables for Securities Sold -- 1,722
Accrued Interest and Dividends Receivable 179 21
Deferred Organization Costs 23 3
---------- ---------
Total Assets 198,515 64,270
---------- ---------
LIABILITIES
Payable for Fund Shares Redeemed -- 100
Payables for Securities Purchased 600 648
Management Fees and Other Accrued Expenses 194 111
---------- ---------
Total Liabilities 794 859
---------- ---------
NET ASSETS $197,721 $63,411
========== =========
NET ASSETS CONSIST OF:
Paid-in Capital $165,491 $54,036
Undistributed (Overdistributed) Net Realized
Gain (Loss) on Investments and Foreign
Currency Transactions (8,994) 368
Unrealized Appreciation (Depreciation) on
Investments and Foreign Currency
Translations 40,606 9,175
Undistributed (Overdistributed) Net Investment
Income (Loss) 618 (168)
---------- ---------
NET ASSETS $197,721 $63,411
========== =========
CAPITAL SHARES OUTSTANDING 14,445,808 5,529,534
========== =========
NET ASSET VALUE PER SHARE $13.69 $11.47
========== =========
</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 October 31, 1995 was $157,707,
$52,924, $46,379, $44,124, $55,990, $46,098, respectively.
See accompanying Notes to Financial Statements.
52
<PAGE>
TCW GALILEO FUNDS, INC.
Dollar Amounts in Thousands
(Except per Share Amounts)
October 31, 1995
<TABLE>
<CAPTION>
TCW GALILEO TCW GALILEO TCW GALILEO TCW GALILEO
SMALL CAP ASIA PACIFIC EMERGING MARKETS LATIN AMERICA
GROWTH FUND EQUITY FUND FUND EQUITY FUND
----------- ----------- ---------------- -------------
<S> <C> <C> <C> <C>
ASSETS
Investments, at Value (1) $ 67,706 $ 47,042 $ 51,993 $ 38,980
Receivables for Fund Shares Sold -- 23 -- --
Receivables for Securities Sold 1,380 129 -- 205
Accrued Interest and Dividends Receivable 29 49 77 25
Deferred Organization Costs 7 7 7 23
------------- ------------- --------------- ---------------
Total Assets 69,122 47,250 52,077 39,233
------------- ------------- --------------- ---------------
LIABILITIES
Payable for Fund Shares Redeemed -- 247 -- 178
Payables for Securities Purchased 2,968 179 73 --
Management Fees and Other Accrued Expenses 98 115 131 113
---------- ------------- --------------- ---------------
Total Liabilities 3,066 541 204 291
---------- ------------- --------------- ---------------
NET ASSETS $ 66,056 $ 46,709 $ 51,873 $38,942
========== ============= =============== ===============
NET ASSETS CONSIST OF:
Paid-in Capital $ 43,294 $ 44,719 $ 64,223 $ 73,707
Undistributed (Overdistributed) Net Realized
Gain (Loss) on Investments and Foreign
Currency Transactions 1,840 (1,182) (8,620) (28,111)
Unrealized Appreciation (Depreciation) on
Investments and Foreign Currency
Translations 21,327 2,918 (3,997) (7,118)
Undistributed (Overdistributed) Net Investment
Income (Loss) (405) 254 267 464
------------- ------------- --------------- ---------------
NET ASSETS $ 66,056 $46,709 $ 51,873 $ 38,942
============= ============= =============== ===============
CAPITAL SHARES OUTSTANDING 4,883,358 5,385,801 7,217,659 4,914,720
============= ============= =============== ===============
NET ASSET VALUE PER SHARE $ 13.53 $ 8.67 $7.19 $ 7.92
============= ============= =============== ===============
</TABLE>
53
<PAGE>
STATEMENTS OF OPERATIONS
- ------------------------
<TABLE>
<CAPTION>
TCW GALILEO
MONEY MARKET
FUND
------------
<S> <C>
INVESTMENT INCOME
Income:
Interest $7,122
------
Expenses:
Management Fees 304
Custodian Fees 44
Registration Fees 9
Transfer Agent Fees 36
Directors Fees and Expenses 10
Audit and Tax Fees 24
Accounting Service Fees 117
Legal Fees 3
Amortization of Deferred Organization Costs --
Other 10
------
Total Expenses 557
Less Expenses Borne by Investment Adviser 95
------
Net Expenses 462
------
Net Investment Income 6,660
------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY
Net Realized (Loss) on Investments and
Foreign Currency Transactions During the Year --
Change in Unrealized Appreciation (Depreciation)
on Investments and Foreign Currency
Translations During the Year --
------
Net Realized and Unrealized Gain (Loss) on Investments
and Foreign Currency During the Year --
------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $6,660
======
</TABLE>
See accompanying Notes to Financial Statements.
54
<PAGE>
TCW GALILEO FUNDS, INC.
Dollar Amounts in Thousands
Year Ended October 31, 1995
<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> <C>
INVESTMENT INCOME
Income:
Interest $ 2,528 $ 9,880 $ 7,647 $ 6,042
------------- ----------- ----------- ------------
Expenses:
Management Fees 143 708 494 353
Custodian Fees 7 10 15 10
Registration Fees -- 1 -- 10
Transfer Agent Fees 27 32 37 28
Directors Fees and Expenses 10 10 10 10
Audit and Tax Fees 21 18 29 27
Accounting Service Fees 35 35 35 35
Legal Fees 1 -- -- 1
Amortization of Deferred Organization Costs 10 10 10 10
Other 4 9 7 2
------------ ----------- ----------- -----------
Total Expenses 258 833 637 486
Less Expenses Borne by Investment Adviser 15 17 21 5
------------ ----------- ----------- ------------
Net Expenses 243 816 616 481
------------ ----------- ----------- -----------
Net Investment Income 2,285 9,064 7,031 5,561
------------ ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY
Net Realized (Loss) on Investments and
Foreign Currency Transactions During the Year
Change in Unrealized Appreciation (Depreciation) (1,514) (1,241) (4,070) (531)
on Investments and Foreign Currency
Translations During the Year 3,904 5,286 6,177 6,062
------------ ----------- ----------- -----------
Net Realized and Unrealized Gain (Loss) on Investments
and Foreign Currency During the Year 2,390 4,045 2,107 5,531
------------ ----------- ----------- -----------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 4,675 $ 13,109 $ 9,138 $ 11,092
============ =========== =========== ===========
</TABLE>
55
<PAGE>
STATEMENTS OF OPERATIONS (CONTINUED)
- ------------------------------------
<TABLE>
<CAPTION>
TCW TCW GALILEO
GALILEO CORE EARNINGS MOMENTUM
EQUITY FUND FUND
------------ -----------------
<S> <C> <C>
INVESTMENT INCOME
Income:
Dividends $1,874 $ 132
Interest 280 311
------ -----
Total 2,154 443
------ -----
Expenses:
Management Fees 1,214 517
Custodian Fees 16 16
Registration Fees 13 19
Transfer Agent Fees 42 19
Directors Fees and Expenses 10 10
Audit and Tax Fees 18 18
Accounting Service Fees 35 35
Legal Fees 2 3
Amortization of Deferred Organization Costs 10 1
Other 13 4
------ -----
Total Expenses 1,373 642
Less Expenses Borne by Investment Adviser -- 53
------ -----
Net Expenses 1,373 589
------ -----
Net Investment Income (Loss) 781 (146)
------ -----
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCY
Net Realized Gain (Loss) on Investments and
Foreign Currency Transactions During the Year (5,733) 368
Change in Unrealized Appreciation (Depreciation) on
Investments and Foreign Currency Translations
During the Year 33,993 7,003
------ -----
Net Realized and Unrealized Gain(Loss)on Investments
and Foreign Currency During the Year 28,260 7,371
------ -----
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $29,041 $7,225
======= ======
</TABLE>
See accompanying Notes to Financial Statements.
56
<PAGE>
TCW GALILEO FUNDS, INC.
Dollar Amounts in Thousands
Year Ended October 31, 1995
<TABLE>
<CAPTION>
TCW GALILEO TCW GALILEO TCW GALILEO TCW GALILEO
SMALL CAP ASIA PACIFIC EMERGING MARKETS LATIN AMERICA
GROWTH FUND EQUITY FUND FUND EQUITY FUND
----------- ------------ ---------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Dividends $ 78 $ 789(1) $ 902(1) $ 164(1)
Interest 190 186 257 150
---------- ---------- ----------- -----------
Total 268 975 1,159 1,314
---------- ---------- ----------- -----------
Expenses:
Management Fees 444 441 555 610
Custodian Fees 16 133 207 202
Registration Fees -- -- 2 28
Transfer Agent Fees 22 20 23 28
Directors Fees and Expenses 10 10 10 10
Audit and Tax Fees 19 19 19 18
Accounting Service Fees 35 35 35 35
Legal Fees 1 1 1 --
Amortization of Deferred Organization Costs 2 2 2 10
Other 2 3 7 17
---------- ---------- ----------- -----------
Total Expenses 551 664 861 958
Less Expenses Borne by Investment Adviser 15 17 -- --
---------- ---------- ------------ -----------
Net Expenses 536 647 861 958
---------- ---------- ----------- -----------
Net Investment Income (Loss) (268) 328 298 356
---------- ---------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCY
Net Realized Gain (Loss) on Investments and
Foreign Currency Transactions During the Year
Change in Unrealized Appreciation (Depreciation) on 4,011 (612) (7,843) (27,909)
Investments and Foreign Currency Translations
During the Year 13,475 (5,846) (11,550) (21,001)
---------- ---------- ----------- -----------
Net Realized and Unrealized Gain(Loss)on Investments
and Foreign Currency During the Year 17,486 (6,458) (19,393) (48,910)
---------- ---------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 17,218 $ (6,130) $ (19,095) $ (48,554)
========== ========== =========== ===========
</TABLE>
(1) Net of foreign taxes withheld of $63, $92 and $94 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>
Ten Months Ended
YEAR ENDED October 31, 1994
OCTOBER 31, 1995 (Note 1)
---------------- -----------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 6,660 $ 2,385
------------ --------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (6,660) (2,385)
------------ --------------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(666,989,130 shares in 1995 and 453,783,500 shares in 1994) 666,989 453,784
Proceeds from Shares Issued upon Reinvestment of Dividends
(4,274,516 shares in 1995 and 1,784,433 shares in 1994) 4,274 1,784
Cost of Shares Redeemed
(709,352,932 shares in 1995 and 412,380,355 shares in 1994) (709,353) (412,380)
------------ --------------
Increase (Decrease) in Net Assets Resulting from
Capital Share Transactions (38,090) 43,188
------------ --------------
Increase (Decrease) in Net Assets (38,090) 43,188
NET ASSETS
Beginning of Period 124,392 81,204
------------ --------------
End of Period $ 86,302 $ 124,392
============ ==============
</TABLE>
58
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo High Grade Fixed Income Fund
Dollar Amounts in Thousands
STATMENT OF CHANGES IN NET ASSETS
- ---------------------------------
<TABLE>
<CAPTION>
Ten Months Ended
Year Ended October 31, 1994
October 31, 1995 (Note 1)
---------------- ----------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 2,285 $ 2,155
Net Realized (Loss) on Investments and
Foreign Currency Transactions (1,514) (2,038)
Change in Unrealized Appreciation (Depreciation) on
Investments and Foreign Currency Translations 3,904 (2,883)
------- -------
Increase (Decrease) in Net Assets Resulting from Operations 4,675 (2,766)
------- -------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (2,147) (1,718)
------- -------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(2,119,508 shares in 1995 and 3,963,230 shares in 1994) 19,224 37,183
Proceeds from Shares Issued upon Reinvestment of Dividends
(189,055 shares in 1995 and 163,910 shares in 1994) 1,718 1,564
Cost of Shares Redeemed
(4,148,031 shares in 1995 and 1,837,337 shares in 1994) (37,387) (17,438)
------- -------
Increase (Decrease) in Net Assets Resulting from
Capital Share Transactions (16,445) 21,309
------- -------
Increase (Decrease) in Net Assets (13,917) 16,825
NET ASSETS
Beginning of Period 50,153 33,328
------- -------
End of Period $36,236 $50,153
======= =======
</TABLE>
See accompanying Notes to Financial Statements.
59
<PAGE>
TCW Galileo High Yield Bond Fund
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<TABLE>
<CAPTION>
Ten Months Ended
YEAR ENDED October 31, 1994
OCTOBER 31, 1995 (Note 1)
---------------- ----------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 9,064 $ 6,285
Net Realized (Loss) on Investments (1,241) (216)
Change in Unrealized Appreciation (Depreciation)
on Investments 5,286 (6,353)
------- -------
Increase (Decrease) in Net Assets Resulting from Operations 13,109 (284)
------- -------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (9,725) (5,497)
------- -------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(4,675,533 shares in 1995 and 3,745,877 shares in 1994) 44,410 36,528
Proceeds from Shares Issued upon Reinvestment of Dividends
(753,663 shares in 1995 and 589,062 shares in 1994) 7,155 5,762
Cost of Shares Redeemed
(5,518,004 shares in 1995 and 2,016,091 shares in 1994) (52,874) (19,669)
------- -------
Increase (Decrease) in Net Assets Resulting from
Capital Share Transactions (1,309) 22,621
------- -------
Increase in Net Assets 2,075 16,840
NET ASSETS
Beginning of Period 90,577 73,737
------- -------
End of Period $92,652 $90,577
======= =======
</TABLE>
See accompanying Notes to Financial Statements.
60
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo Mortgage Backed Securities Fund
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<TABLE>
<CAPTION>
Ten Months Ended
YEAR ENDED October 31, 1994
OCTOBER 31, 1995 (Note 1)
---------------- ----------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 7,031 $ 7,221
Net Realized (Loss) on Investments (4,070) (446)
Change in Unrealized Appreciation (Depreciation)
on Investments 6,177 (7,605)
------- ----------
Increase (Decrease) in Net Assets Resulting from Operations 9,138 (830)
------- ----------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (7,576) (6,642)
Distributions in Excess of Net Investment Income (165) --
------- ---------
Total Distributions to Shareholders (7,741) (6,642)
------- ---------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(1,303,201 shares in 1995 and 18,907,101 shares in 1994) 12,379 183,889
Proceeds from Shares Issued upon Reinvestment of Dividends
(779,171 shares in 1995 and 782,691 shares in 1994) 7,325 7,544
Cost of Shares Redeemed
(7,928,897 shares in 1995 and 20,325,505 shares in 1994) (74,683) (196,679)
------- -----------
(Decrease) in Net Assets Resulting from
Capital Share Transactions (54,979) (5,246)
------- -----------
(Decrease) in Net Assets (53,582) (12,718)
NET ASSETS
Beginning of Period 134,948 147,666
------- -----------
End of Period $81,366 $134,948
======= ===========
</TABLE>
See accompanying Notes to Financial Statements.
61
<PAGE>
TCW Galileo Long-term Mortgage Backed Securities Fund
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<TABLE>
<CAPTION>
Ten Months Ended
YEAR ENDED October 31, 1994
OCTOBER 31, 1995 (Note 1)
---------------- ----------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 5,561 $ 2,931
Net Realized (Loss) on Investments (531) (44)
Change in Unrealized Appreciation (Depreciation)
on Investments 6,062 (5,713)
---------- -------------
Increase (Decrease) in Net Assets Resulting from Operations 11,092 (2,826)
---------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (6,263) (2,207)
---------- -------------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(1,550,163 shares in 1995 and 5,158,471 shares in 1994) 14,209 48,322
Proceeds from Shares Issued upon Reinvestment of Dividends
(681,560 shares in 1995 and 229,472 shares in 1994) 6,205 2,152
Cost of Shares Redeemed
(1,293,849 shares in 1995 and 445,928 shares in 1994) (11,716) (4,024)
---------- -------------
Increase in Net Assets Resulting from
Capital Share Transactions 8,698 46,450
Increase in Net Assets 13,527 41,417
NET ASSETS
Beginning of Period 66,632 25,215
---------- -------------
End of Period $ 80,159 $ 66,632
========== =============
</TABLE>
See accompanying Notes to Financial Statements.
62
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo Core Equity Fund
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<TABLE>
<CAPTION>
Ten Months Ended
YEAR ENDED October 31, 1994
OCTOBER 31, 1995 (Note 1)
---------------- ----------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 781 $ 383
Net Realized (Loss) on Investments (5,733) (2,535)
Change in Unrealized Appreciation (Depreciation)
on Investments 33,993 (964)
------- -------
Increase (Decrease) in Net Assets Resulting from Operations 29,041 (3,116)
------- -------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (543) --
------- -------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(7,935,518 shares in 1995 and 7,946,014 shares in 1994) 94,454 93,851
Proceeds from Shares Issued upon Reinvestment of Dividends
(40,364 shares in 1995 and 8,694 shares in 1994) 437 102
Cost of Shares Redeemed
(5,300,160 shares in 1995 and 914,855 shares in 1994) (61,790) (10,600)
------- -------
Increase in Net Assets Resulting from
Capital Share Transactions 33,101 83,353
------- -------
Increase in Net Assets 61,599 80,237
NET ASSETS
Beginning of Period 136,122 55,885
------- -------
End of Period $197,721 $136,122
======= =======
</TABLE>
See accompanying Notes to Financial Statements.
63
<PAGE>
TCW Galileo Earnings Momentum Fund
Dollar Amounts in Thousands
STATEMENT OF CHANGES IN NET ASSETS
- ----------------------------------
<TABLE>
<CAPTION>
Year Ended
October 31, 1995
----------------
<S> <C>
OPERATIONS
Net Investment (Loss) $ (146)
Net Realized Gain on Investments 368
Change in Unrealized Appreciation on Investments 7,003
-------
Increase in Net Assets Resulting from Operations 7,225
-------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions in Excess of Net Investment Income (22)
-------
CAPITAL SHARE TRANSACTIONS
Shares Issued upon Exchange of Limited Partnership
Interests (4,059,985 shares) (Note 1) 40,600
Proceeds from Shares Sold (3,047,975 shares) 31,464
Proceeds from Shares Issued upon
Reinvestment of Dividends (2,265 shares) 21
Cost of Shares Redeemed (1,580,691 shares) (15,877)
-------
Increase in Net Assets Resulting from
Capital Share Transactions 56,208
-------
Increase in Net Assets 63,411
NET ASSETS
Beginning of Period --
-------
End of Period $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>
March 1, 1994
(Commencement of
Year Ended Operations) through
October 31, 1995 October 31, 1994
---------------- -------------------
<S> <C> <C>
OPERATIONS
Net Investment (Loss) $ (268) $ (137)
Net Realized Gain (Loss) on Investments 4,011 (34)
Change in Unrealized Appreciation (Depreciation)
on Investments 13,475 (1,225)
------- -------
Increase (Decrease) in Net Assets Resulting from Operations 17,218 (1,396)
------- -------
DISTRIBUTION TO SHAREHOLDERS
Distributions from Realized Gains (2,137) --
------- -------
CAPITAL SHARE TRANSACTIONS
Shares Issued upon Exchange of Limited Partnership Interests
(3,557,120 shares in 1994) (Note 1) -- 35,571
Proceeds from Shares Sold
(1,983,967 shares in 1995 and 2,394,053 shares in 1994) 23,244 21,442
Proceeds from Shares Issued upon Reinvestment of Dividends
(163,629 shares in 1995) 2,073 --
Cost of Shares Redeemed
(2,704,761 shares in 1995 and 510,650 shares in 1994) (25,431) (4,528)
------- -------
Increase (Decrease) in Net Assets Resulting from
Capital Share Transactions (114) 52,485
------- -------
Increase in Net Assets 14,967 51,089
NET ASSETS
Beginning of Period 51,089 --
------- -------
End of Period $66,056 $51,089
======= =======
</TABLE>
65
<PAGE>
TCW Galileo Asia Pacific Equity Fund
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<TABLE>
<CAPTION>
March 1, 1994
(Commencement of
Year Ended Operations) through
October 31, 1995 October 31, 1994
---------------- -------------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 328 $ 144
Net Realized Gain (Loss) on Investments and
Foreign Currency Transactions (612) 1,288
Change in Unrealized Appreciation (Depreciation) on Investments
and Foreign Currency Translations (5,846) (49)
------- -------
Increase (Decrease) in Net Assets Resulting from Operations (6,130) 1,383
------- -------
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
Shares Issued upon Exchange of
Limited Partnership Interests
(4,449,194 shares in 1994) (Note 1) -- 44,492
Proceeds from Shares Sold
(1,755,040 shares in 1995 and 1,329,385 shares in 1994) 15,396 12,575
Proceeds from Shares Issued Upon Reinvestment of Dividends
(234,996 shares in 1995) 2,01 --
Cost of Shares Redeemed
(1,905,568 shares in 1995 and 477,246 shares in 1994) (16,54) (4,431)
------- -------
Increase in Net Assets Resulting from
Capital Share Transactions 896 52,636
------- -------
Increase (Decrease) in Net Assets (7,310) 54,019
NET ASSETS
Beginning of Period 54,019 --
------- -------
End of Period $46,709 $54,019
======= =======
</TABLE>
See Accompanying Notes to Financial Statements.
66
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo Emerging Markets Fund
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<TABLE>
<CAPTION>
March 1, 1994
(Commencement of
Year Ended Operations) through
October 31, 1995 October 31, 1994
------------------ --------------------
<S> <C> <C>
OPERATIONS
Net Investment Income (Loss) $ 298 $ (31)
Net Realized (Loss) on Investments and
Foreign Currency Transactions (7,843) (777)
Change in Unrealized Appreciation (Depreciation) on
Investments and Foreign Currency Translations (11,550) 2,816
---------------- ---------------
Increase (Decrease) in Net Assets Resulting from Operations (19,095) 2,008
---------------- ---------------
CAPITAL SHARE TRANSACTIONS
Shares Issued upon Exchange of
Limited Partnership Interests
(3,721,358 shares in 1994) (Note 1) -- 37,213
Proceeds from Shares Sold
(2,180,661 shares in 1995 and 4,382,042 shares in 1994) 17,546 39,241
Cost of Shares Redeemed
(2,181,253 shares in 1995 and 885,149 shares in 1994) (16,790) (8,250)
----------------- ---------------
Increase (Decrease) in Net Assets Resulting from
Capital Share Transactions 756 68,204
---------------- ---------------
Increase (Decrease) in Net Assets (18,339) 70,212
NET ASSETS
Beginning of Period 70,212 --
---------------- ---------------
End of Period $51,873 $70,212
================= ===============
</TABLE>
See accompanying Notes to Financial Statements.
67
<PAGE>
TCW Galileo Latin America Equity Fund
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<TABLE>
<CAPTION>
Ten Months Ended
Year Ended October 31, 1994
October 31, 1995 (Note 1)
---------------- ----------------
<S> <C> <C>
OPERATIONS
Net Investment Income................................ $ 356 $ 108
Net Realized Gain (Loss) on Investments and
Foreign Currency Transactions (27,909) 9,404
Change in Unrealized Appreciation (Depreciation) on
Investments and Foreign Currency Translations (21,001) (11,092)
------------- -----------
(Decrease) in Net Assets Resulting from Operations (48,554) (1,580)
------------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions in Excess of Realized Gains (9,447) --
------------- -----------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(467,985 shares in 1995 and 3,184,275 shares in 1994) 4,319 46,812
Proceeds from Shares Issued upon Reinvestment of Dividends
(867,090 shares in 1995 and 488,821 shares in 1994) 8,922 7,235
Cost of Shares Redeemed
(4,601,924 shares in 1995 and 1,443,344 shares in 1994) (38,908) (19,767)
------------- -----------
Increase (Decrease) in Net Assets Resulting from
Capital Share Transactions (25,667) 34,280
------------- -----------
Increase (Decrease) in Net Assets (83,668) 32,700
NET ASSETS
Beginning of Period 122,610 89,910
------------- -----------
End of Period $ 38,942 $ 122,610
============ =============
</TABLE>
See accompanying Notes to Financial Statements.
68
<PAGE>
TCW GALILEO FUNDS, INC.
October 31, 1995
NOTES TO FINANCIAL STATEMENTS
- -----------------------------
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 TCW
Galileo Earnings Momentum Fund commenced operations on November 1, 1994,
resulting from the exchange of limited partnership interests in a separate
limited partnership. The assets and liabilities were transferred at historical
cost from the limited partnership to the Fund on November 1, 1994 and the fair
value of which was exchanged for shares of common stock of the Fund. The
transfer was treated as a tax-free exchange in accordance with the Internal
Revenue Code.
The primary investment objective of each Fund follows: (1) the TCW Galileo Money
Market Fund seeks current income, preservation of capital and liquidity by
investing in short-term money market securities; (2) the TCW Galileo High Grade
Fixed Income Fund seeks capital appreciation and income through investment
principally in high grade fixed income securities emphasizing high quality and
liquid investments; (3) the TCW Galileo High Yield Bond Fund seeks high current
income through investment principally in high yield fixed income securities; (4)
the TCW Galileo Mortgage Backed Securities Fund seeks income by investing
primarily in short-term mortgage backed securities; (5) the TCW Galileo Long-
Term Mortgage Backed Securities Fund seeks income by investing primarily in
long-term mortgage backed securities; (6) the TCW Galileo Core Equity Fund
emphasizes capital appreciation and preservation with focus on long-term
results; (7) the TCW Galileo Earnings Momentum Fund seeks capital appreciation
through investment primarily in publicly-traded equity securities of companies
experiencing or expected to experience accelerating earnings growth; (8) the TCW
Galileo Small Cap Growth Fund seeks long-term capital appreciation, primarily by
investing in publicly-traded equity securities of smaller capitalization
companies; (9) the TCW Galileo Asia Pacific Equity Fund seeks long-term capital
appreciation, primarily by investing in equity securities of companies in the
Asia Pacific region; (10) the TCW Galileo Emerging Markets Fund seeks long-term
capital appreciation by investing in equity securities of companies in emerging
market countries around the world; and (11) the TCW Galileo Latin America Equity
Fund seeks long-term capital appreciation, primarily by investing in Latin
American equity securities.
Effective October 31, 1994, the fiscal year end of each Fund was changed from
December 31 to October 31. As a result, the 1994 financial statement
information covers less than a full twelve month period.
69
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- -----------------------------------------
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
PRINCIPLES OF ACCOUNTING: The Funds use the accrual method of accounting for
financial reporting purposes.
SECURITY VALUATIONS: The value of securities held in the TCW Galileo Money
Market Fund is determined by using the amortized cost method applied to each
individual security unless, due to special circumstances, the use of such a
method would result in a valuation that does not approximate fair market value.
Equity fund securities listed or traded on the New York, American or other stock
exchanges are valued at the latest sale price on that exchange (if there were no
sales that day, the security is valued at the latest bid price). All other
securities, including the bond fund securities, for which over-the-counter
market quotations are readily available, are valued at the latest bid price
prior to the time of valuation. Securities for which market quotations are not
readily available, including circumstances under which it is determined by the
Adviser that sale or bid prices are not reflective of a security's market value,
are valued at their fair value as determined in good faith under procedures
established by and under the general supervision of the Company's Board of
Directors.
Short-term debt securities with remaining maturities of 60 days or less at the
time of purchase are valued at amortized cost. Other short-term debt securities
are valued on a marked-to-market basis until such time as they reach a remaining
maturity of 60 days, whereupon they will be valued at amortized value using
their value on the 61st day prior to maturity.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME: Security transactions are
recorded as of the trade date. Dividend income is recorded on the ex-dividend
date or at the time the relevant ex-dividend date and amounts become known.
Interest income is recorded on the accrual basis. Original issue discount is
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. 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 did not enter
into any forward foreign currency contracts during fiscal 1995.
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 October 31, 1995.
70
<PAGE>
TCW GALILEO FUNDS, INC.
October 31, 1995
REPURCHASE AGREEMENTS: The Funds may invest in repurchase agreements secured by
U.S. Government obligations and in other securities. Securities pledged as
collateral for repurchase agreements are held by the Funds' custodian bank until
maturity of the repurchase agreements. Provisions of the agreements ensure that
the market value of the collateral is sufficient in the event of default;
however, in the event of default or bankruptcy by the other party to the
agreements, realization and/or retention of the collateral may be subject to
legal proceedings.
OPTIONS: Premiums received from call options written are recorded as a
liability. The amount of the liability is subsequently adjusted to reflect the
current market value of the option written. If the option expires unexercised,
premiums received are realized as a gain at expiration date. If the position is
closed prior to expiration, a gain or loss is realized based on premiums
received, less the cost to close the option. When an option is exercised,
premiums received are added to the proceeds from the sale of the underlying
securities and a gain or loss is realized. There were no option contracts
outstanding as of October 31, 1995.
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 no less frequently
than annually.
Income and capital gain distributions are determined in accordance with income
tax regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments for foreign currency
transactions, market discount, losses deferred to wash sales and excise tax
regulations. Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may affect
net investment income per share. Undistributed net investment income may include
temporary book and tax basis differences which will reverse in a subsequent
period. Any taxable income or gain remaining at fiscal year end is distributed
in the following year.
71
<PAGE>
NOTES TO FINANCIAL STATEMENTS (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
October 31, 1995, net unrealized appreciation (depreciation) on investments for
federal income tax purposes was as follows:
<TABLE>
<CAPTION>
TCW TCW TCW TCW
GALILEO HIGH GALILEO GALILEO GALILEO LONG-TERM TCW
GRADE FIXED HIGH YIELD MORTGAGE BACKED MORTGAGE BACKED GALILEO CORE
INCOME FUND BOND FUND SECURITIES FUND SECURITIES FUND EQUITY FUND
------------ ---------- ---------------- --------------- ------------
<S> <C> <C> <C> <C> <C>
Unrealized Appreciation $ 1,336,944 $ 2,684,724 $ 186,296 $ 2,401,352 $44,300,605
Unrealized (Depreciation) (46,995) (1,531,166) (4,255,902) (1,959,895) (3,695,077)
----------- ----------- ----------- ----------- -----------
Net Unrealized Appreciation
(Depreciation) $ 1,289,949 $ 1,153,558 $(4,069,606) $ 441,457 $40,605,528
=========== =========== =========== =========== ============
Cost of Investments for Federal
Income Tax Purposes $34,654,311 $89,107,102 $84,386,607 $79,093,131 $ 157,707,089
=========== =========== =========== =========== ============
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
------------- ------------ ------------- ------------- ------------
Unrealized Appreciation $12,344,959 $22,098,802 $ 4,500,339 $ 3,067,962 $ 1,984,073
Unrealized (Depreciation) (3,170,420) (771,138) (1,663,958) (7,376,190) (10,488,696)
----------- ----------- ----------- ----------- ------------
Net Unrealized Appreciation
(Depreciation) $ 9,174,539 $21,327,664 $ 2,836,381 $(4,308,228) $ (8,504,623)
=========== =========== =========== =========== ============
Cost of Investments for Federal
Income Tax Purposes $52,924,359 $46,379,021 $44,206,300 $56,300,908 $ 47,484,504
=========== =========== =========== =========== ============
</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 Emerging Markets Fund -- 483,600 7,490,000
TCW Galileo Latin America Equity Fund -- -- 26,437,000
TCW Galileo Asia Pacific Fund -- -- 914,000
</TABLE>
72
<PAGE>
TCW GALILEO FUNDS, INC.
October 31, 1995
NOTE 4 - INVESTMENT ADVISORY AND ACCOUNTING SERVICE FEES
The Funds pay to the Adviser, as compensation for services rendered, facilities
furnished and expenses borne by it, the following annual management fees:
TCW Galileo Money Market Fund 0.25%
TCW Galileo High Grade Fixed Income Fund 0.40%
TCW Galileo High Yield Bond Fund 0.75%
TCW Galileo Mortgage Backed Securities Fund 0.50%
TCW Galileo Long-Term Mortgage Backed Securities Fund 0.50%
TCW Galileo Core Equity Fund 0.75%
TCW Galileo Earnings Momentum Fund 1.00%
TCW Galileo Small Cap Growth Fund 1.00%
TCW Galileo Asia Pacific Equity Fund 1.00%
TCW Galileo Emerging Markets Fund 1.00%
TCW Galileo Latin America Equity Fund 1.00%
The TCW Galileo Money Market Fund reimburses the Adviser for the costs of
providing accounting services to the Fund in an amount not exceeding an annual
rate of 0.10% of the Fund's average daily net assets. Each equity and bond Fund
also reimburses the Adviser for the cost of providing accounting services to the
Fund in an amount not exceeding $35,000 for any fiscal year.
In addition to the management and accounting service fees, each Fund bears all
expenses incurred in its operations. The Adviser voluntarily agreed to reduce
its fees from each Fund, or to pay the operating expenses of each Fund, to the
extent necessary to limit the ordinary operating expenses of each Fund to the
following annual percentages of net assets through December 31, 1994:
TCW Galileo Money Market Fund 0.40%
TCW Galileo High Yield Bond Fund 0.79%
TCW Galileo Mortgage Backed Securities Fund 0.55%
TCW Galileo Long-Term Mortgage Backed Securities Fund 0.65%
TCW Galileo Core Equity Fund 1.00%
TCW Galileo Earnings Momentum Fund 1.14%
TCW Galileo Small Cap Growth Fund 1.09%
TCW Galileo Asia Pacific Equity Fund 1.40%
TCW Galileo Emerging Markets Fund 1.87%
TCW Galileo Latin America Equity Fund 1.50%
Beginning January 1, 1995, the ordinary operating expenses of the TCW Galileo
Money Market Fund and the TCW Galileo Earnings Momentum Fund are limited to the
annual percentages reflected above. Such limitation will cease as of December
31, 1995 for the TCW Galileo Earnings Momentum Fund.
Certain officers and/or directors of the Company are officers and/or directors
of the Adviser.
73
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- ----------------------------------------
NOTE 5 - PURCHASES AND SALES OF SECURITIES
Investment transactions (excluding short-term investments) for the Year ended
October 31, 1995 were as follows:
<TABLE>
<CAPTION>
TCW TCW TCW TCW
GALILEO HIGH GALILEO GALILEO GALILEO LONG-TERM TCW
GRADE FIXED HIGH YIELD MORTGAGE BACKED MORTGAGE BACKED GALILEO CORE
INCOME FUND BOND FUND SECURITIES FUND SECURITIES FUND EQUITY FUND
----------- ----------- ---------------- ----------------- ------------
<S> <C> <C> <C> <C> <C>
Purchases $75,120,299 $31,680,339 $34,108,880 $31,394,805 $112,430,867
Sales $83,227,900 $36,058,308 $90,114,114 $14,713,779 $ 84,411,448
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
------------- ----------- ------------ ------------ -------------
Purchases $58,896,909 $36,906,367 $42,255,212 $42,236,922 $ 44,534,719
Sales $40,584,024 $42,159,184 $43,255,244 $39,237,744 $ 74,768,179
</TABLE>
NOTE 6 - RESTRICTED SECURITIES
The following restricted securities held by the Funds as of October 31, 1995
were valued both at the date of acquisition and October 31, 1995, in accordance
with the security valuation policy of the Funds described in Note 2. The
restricted securities include securities purchased in private placement
transactions without registration under the Securities Act of 1933, as well as
Rule 144A securities. Such securities generally may be sold only in a privately
negotiated transaction with a limited number of purchasers or in a public
offering registered under the Securities Act of 1933. Each Fund will bear any
costs incurred in connection with the disposition of such securities.
<TABLE>
<CAPTION>
TCW GALILEO HIGH YIELD BOND FUND:
NUMBER OF SHARES, RIGHTS, DATE OF
UNITS OR PRINCIPAL AMOUNT INVESTMENT ACQUISITION COST
------------------------- ------------------------------------------ ------------ --------
<S> <C> <C> <C>
$ 290,000 American Safety Razor Company,
(144A), 9.875%, due 08/01/05 07/27/95 $290,000
$ 75,000 American Safety Razor Company,
(144A), 9.875%, due 08/01/05 07/28/95 75,469
$ 225,000 American Safety Razor Company,
(144A), 9.875%, due 08/01/05 07/31/95 226,406
$ 570,000 Communications and Power Industries, Inc.,
(144A), 12%, due 08/01/05 08/02/95 570,000
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
$ 215,000 Terex Corp., Units, (144A),
13.75%, due 05/15/02 04/27/95 215,000
$ 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 07/09/93 1
90 Terex Corp., Stock Appreciation Rights, (144A),
expires 07/31/96 12/28/93 1
</TABLE>
The Fund holds 21,420 shares of Edisto Resources Corp., which are valued at a
discount to the market price of the unrestricted securities of the same class
due to restrictions on the sale of the shares by the Fund. The discount on these
shares totaled $13,090 at October 31, 1995.
The total value of restricted securities is $2,018,554, which represents 2.2% of
net assets of the Fund at October 31, 1995.
74
<PAGE>
TCW GALILEO FUNDS, INC.
October 31, 1995
NOTE 6 - RESTRICTED SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
TCW Galileo Mortgage Backed Securities Fund:
DATE OF
NUMBER OF SHARES INVESTMENT ACQUISITION COST
- --------------------- ---------------------------------------- ------------ ---------
<S> <C> <C> <C>
$ 1,482,274 Greenwich Capital Acceptance, Inc. (91-03),
(Private Placement), 8.494%, due 08/25/19 03/21/91 $ 1,472,552
144,545 National Bank of Washington,
(Private Placement), 7.989%, due 01/25/19 06/13/90 143,063
</TABLE>
The total value of restricted securities is $1,594,913, which represents 2.0% of
net assets of the Fund at October 31, 1995.
TCW Galileo Asia Pacific Equity Fund:
<TABLE>
<CAPTION>
DATE OF
NUMBER OF SHARES INVESTMENT ACQUISITION COST
- --------------------- ---------------------------------------- ------------ ---------
<S> <C> <C> <C>
5,500 Samsung Electronics Company, Limited (144A)
(1/2 Voting GDR)(South Korea) 7/7/95 $ 576,050
</TABLE>
The total value of restricted securities is $643,500, which represents 1.4% of
net assets of the Fund at October 31, 1995.
TCW Galileo Emerging Markets Fund:
<TABLE>
<CAPTION>
DATE OF
NUMBER OF SHARES INVESTMENT ACQUISITION COST
- --------------------- ---------------------------------------- ------------ ---------
<S> <C> <C> <C>
5,100 Anglovaal Limited (144A) (ADR), (South Africa) 6/23/94 $ 139,383
8,300 Cementos Diamante, S.A. (144A) (ADS) (Colombia) 5/17/94 136,870
45,591 Malbak Limited (144A) (South Africa) 7/25/95 262,365
10,500 Nedcor Limited Units, (144A) (GDR) (South Africa) 5/23/95 472,500
3,000 Samsumg Electronics Company, Limited (144A)
(1/2 Non-Voting GDR)(South Korea) 9/1/95 205,056
</TABLE>
The total value of restricted securities is $1,415,509, which represents 2.7% of
net assets of the Fund at October 31, 1995.
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) 5/17/94 $ 311,989
16,837 COMPANHIA ENERGETICA DE MINAS GERAIS
(CEMIG)(144A) 12/14/94 $ 510,097
</TABLE>
The total value of restricted securities is $675,929, which represents 1.7% of
net assets of the Fund at October 31, 1995.
75
<PAGE>
TCW Galileo Money Market Fund
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
Ten Months Ended
YEAR ENDED October 31, 1994
OCTOBER 31, 1995 (Note 1)
---------------- -----------------
<S> <C> <C>
Net Asset Value per Share, Beginning of Period $ 1.00 $ 1.00
Income from Investment Operations:
Net Investment Income 0.0549 0.0304
Less Distributions:
Distributions from Net Investment Income (0.0549) (0.0304)
-------- ----------
Net Asset Value per Share, End of Period $ 1.00 $ 1.00
======== ==========
Total Return 5.67% 3.04% /(1)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 86,302 $ 124,392
Ratio of Expenses to Average Net Assets (4) 0.40% 0.40% /(3)/
Ratio of Net Investment Income to Average Net Assets 5.49% 3.65% /(3)/
</TABLE>
(1) For the ten months ended October 31, 1994 and not indicative of a full
year's operating results.
(2) For the period July 14, 1988 (commencement of operations) to December 31,
1988 and not indicative of a full year's operating results.
(3) Annualized.
(4) The Investment Adviser has voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund, to the extent necessary to limit the
annual ordinary operating expenses of the Fund to 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 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.
76
<PAGE>
TCW GALILEO FUNDS, INC.
<TABLE>
<CAPTION>
Year Ended December 31,
------------------------------------------------------
1993 1992 1991 1990 1989
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net Asset Value per Share, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from Investment Operations:
Net Investment Income 0.0293 0.0381 0.0620 0.0800 0.0882
Less Distributions:
Distributions from Net Investment Income (0.0293) (0.0381) (0.0620) (0.0800) (0.0882)
--------- ---------- ---------- ---------- ---------
Net Asset Value per Share, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========== ========== ========== =========
Total Return
2.97% 3.92% 6.35% 8.18% 9.22%
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 81,204 $ 183,465 $ 140,987 $ 167,572 $ 88,620
Ratio of Expenses to Average Net Assets (4) 0.40% 0.40% 0.40% 0.40% 0.40%
Ratio of Net Investment Income to Average Net Assets 2.93% 3.81% 6.20% 8.00% 8.82%
<CAPTION>
July 14, 1988
(Inception) to
December 31, 1988
-----------------
<S> <C>
Net Asset Value per Share, Beginning of Period $ 1.00
Income from Investment Operations:
Net Investment Income 0.0379
Less Distributions:
Distributions from Net Investment Income (0.0379)
---------
Net Asset Value per Share, End of Period $ 1.00
=========
Total Return
7.68% /(2)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 63,703
Ratio of Expenses to Average Net Assets (4) 0.40% /(3)/
Ratio of Net Investment Income to Average Net Assets 8.08% /(3)/
</TABLE>
77
<PAGE>
TCW Galileo High Grade Fixed Income Fund
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
March 1, 1993
Ten Months (Commencement of
YEAR ENDED Ended Operations) through
OCTOBER 31, 1995 October 31, 1994 December 31, 1993
---------------- ---------------- -------------------
<S> <C> <C> <C>
Net Asset Value per Share, Beginning of Period $ 8.94 $ 10.04 $ 10.00
--------- ---------- ----------
Income (Loss) from Investment Operations:
Net Investment Income 0.58 0.44 0.45
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currency 0.62 (1.16) 0.19
--------- ---------- ----------
Total from Investment Operations 1.20 (0.72) 0.64
--------- ---------- ----------
Less Distributions:
Distributions from Net Investment Income (0.53) (0.38) (0.45)
Distributions from Realized Gains -- -- (0.14)
Distributions in Excess of Realized Gains -- -- (0.01)
--------- ---------- ----------
Total Distributions (0.53) (0.38) (0.60)
--------- ---------- ----------
Net AssetValue per Share, End of Period $ 9.61 $ 8.94 $ 10.04
========= ========== ==========
Total Return 13.92% (7.24)% /(1)/ 6.54% /(2)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 36,236 $ 50,153 $ 33,328
Ratio of Expenses to Average Net Assets /(4)/ 0.68% 0.50% /(3)/ 0.50% /(3)/
Ratio of Net Investment Income to Average Net Assets 6.38% 6.11% /(3)/ 5.24% /(3)/
Portfolio Turnover Rate 223.78% 208.63% /(1)/ 149.96% /(2)/
</TABLE>
(1) For the ten months ended October 31, 1994 and not indicative of a full
year's operating results.
(2) For the period March 1, 1993 (commencement of operations) through December
31, 1993 and not indicative of a full year's operating results.
(3) Annualized.
(4) The Investment Adviser has voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund, to the extent necessary to limit the
annual ordinary operating expenses of the Fund to 0.50% of net assets
through December 31, 1994, as disclosed in Note 4 of the Notes to Financial
Statements. Had such action not been taken, total annualized operating
expenses as a percentage of average net assets would have been 0.72% for the
fiscal year ended October 31, 1995, 0.68% for the ten months ended October
31, 1994 and 0.89% for the period March 1, 1993 (commencement of operations)
through December 31, 1993.
78
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo High Yield Bond Fund
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
March 1, 1993
Ten Months (Commencement of
YEAR ENDED Ended Operations) through
OCTOBER 31, 1995 October 31, 1994 December 31, 1993
---------------- ---------------- -------------------
<S> <C> <C> <C>
Net Asset Value per Share, Beginning of Period $ 9.43 $ 10.12 $ 10.00
------------- ---------------- -------------------
Income (Loss) from Investment Operations:
Net Investment Income 0.92 0.73 0.74
Net Realized and Unrealized Gain (Loss) on Investments 0.39 (0.77) 0.27
------------- ---------------- -------------------
Total from Investment Operations 1.31 (0.04) 1.01
------------- ---------------- ------------------
Less Distributions:
Distributions from Net Investment Income (1.00) (0.65) (0.74)
Distributions from Realized Gains -- -- (0.15)
------------- ---------------- ------------------
Total Distributions (1.00) (0.65) (0.89)
------------- ---------------- ------------------
Net Asset Value per Share, End of Period $ 9.74 $ 9.43 $ 10.12
============= ================ ==================
Total Return 14.65% (0.34)%(1) 10.47%(2)
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 92,652 $ 90,577 $ 73,737
Ratio of Expenses to Average Net Assets /(4)/ 0.87% 0.79%(3) 0.79%(3)
Ratio of Net Investment Income to Average Net Assets 9.60% 9.18%(3) 8.60%(3)
Portfolio Turnover Rate 36.32% 34.01%(1) 47.60%(2)
</TABLE>
(1) For the ten months ended October 31, 1994 and not indicative of a full
year's operating results.
(2) For the period March 1, 1993 (commencement of operations) through December
31, 1993 and not indicative of a full year's operating results.
(3) Annualized.
(4) The Investment Adviser has voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund, to the extent necessary to limit the
annual ordinary operating expenses of the Fund to 0.79% of net assets
through December 31, 1994, as disclosed in Note 4 of the Notes to Financial
Statements. Had such action not been taken, total annualized operating
expenses as a percentage of average net assets would have been 0.88% 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.
79
<PAGE>
TCW Galileo Mortgage Backed Securities Fund
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
March 1, 1993
Ten Months (Commencement of
YEAR ENDED Ended Operations) through
OCTOBER 31, 1995 October 31, 1994 December 31, 1993
------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value per Share, Beginning of Period $ 9.41 $ 9.86 $ 10.00
------------ -------------- ------------------
Income (Loss) from Investment Operations:
Net Investment Income 0.67 0.42 0.50
Net Realized and Unrealized Gain (Loss) on Investments 0.25 (0.48) (0.12)
------------ -------------- ------------------
Total from Investment Operations 0.92 (0.06) 0.38
------------ -------------- ------------------
Less Distributions:
Distributions from Net Investment Income (0.71) (0.39) (0.50)
Distributions in Excess of Net Investment Income (0.04) -- --
Distributions from Realized Gains -- -- (0.02)
------------ -------------- ------------------
Total Distributions (0.75) (0.39) (0.52)
------------ -------------- ------------------
Net Asset Value per Share, End of Period $ 9.58 $ 9.41 $ 9.86
============ ============== ==================
Total Return 10.16% (0.61)%(1) 3.89%(2)
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 81,366 $ 134,948 $ 147,666
Ratio of Expenses to Average Net Assets(4) 0.61% 0.55%(3) 0.55%(3)
Ratio of Net Investment Income to Average Net Assets 7.13% 5.18%(3) 5.98%(3)
Portfolio Turnover Rate 37.83% 65.64%(1) 70.44%(2)
</TABLE>
(1) For the ten months ended October 31, 1994 and not indicative of a full
year's operating results.
(2) For the period March 1, 1993 (commencement of operations) through December
31, 1993 and not indicative of a full year's operating results.
(3) Annualized.
(4) The Investment Adviser has voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund, to the extent necessary to limit the
annual ordinary operating expenses of the Fund to 0.55% of net assets
through December 31, 1994, as disclosed in Note 4 of the Notes to Financial
Statements. Had such action not been taken, total annualized operating
expenses as a percentage of average net assets would have been 0.63% 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.
80
<PAGE>
TCW GALILEO FUNDS,INC.
TCW Galileo Long-term Mortgage Backed Securities Fund
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
June 17, 1993
Ten Months (Commencement of
YEAR ENDED Ended Operations) through
OCTOBER 31, 1995 October 31, 1994 December 31, 1993
---------------- ---------------- -------------------
<S> <C> <C> <C>
Net Asset Value per Share, Beginning of Period $ 8.95 $ 10.07 $ 10.00
------------- ------------- ----------------
Income (Loss) from Investment Operations:
Net Investment Income 0.72 0.63 0.28
Net Realized and Unrealized Gain (Loss) on Investments 0.71 (1.26) 0.07
------------- ------------- ----------------
Total from Investment Operations 1.43 (0.63) 0.35
------------- ------------- ----------------
Less Distributions:
Distributions from Net Investment Income (0.82) (0.49) (0.28)
------------- ------------- ----------------
Net Asset Value per Share, End of Period $ 9.56 $ 8.95 $ 10.07
============= ============= ================
Total Return 16.84% (6.39)%(1) 3.51%(2)
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 80,159 $ 66,632 $ 25,215
Ratio of Expenses to Average Net Assets(4) 0.68% 0.65%(3) 0.65%(3)
Ratio of Net Investment Income to Average Net Assets 7.88% 8.03%(3) 5.37%(3)
Portfolio Turnover Rate 23.76% 36.71%(1) 44.47%(2)
</TABLE>
(1) For the ten months ended October 31, 1994 and not indicative of a full
year's operating results.
(2) For the period June 17, 1993 (commencement of operations) through December
31, 1993 and not indicative of a full year's operating results.
(3) Annualized.
(4) The Investment Adviser has voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund, to the extent necessary to limit the
annual ordinary operating expenses of the Fund to 0.65% of net assets
through December 31, 1994, as disclosed in Note 4 of the Notes to Financial
Statements. Had such action not been taken, total annualized operating
expenses as a percentage of average net assets would have been 0.69% 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.
81
<PAGE>
TCW Galileo Core Equity Fund
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
March 1, 1993
Ten Months (Commencement of
YEAR ENDED Ended Operations) through
OCTOBER 31, 1995 October 31, 1994 December 31, 1993
---------------- ---------------- -------------------
<S> <C> <C> <C>
Net Asset Value per Share, Beginning of Period $ 11.57 $ 11.81 $ 10.00
------------ ------------ ------------
Income (Loss) from Investment Operations:
Net Investment Income 0.06 0.04 0.03
Net Realized and Unrealized Gain (Loss) on Investments 2.11 (0.28) 1.81
------------ ------------ ------------
Total from Investment Operations 2.17 (0.24) 1.84
------------ ------------ ------------
Less Distributions:
Distributions from Net Investment Income (0.05) -- (0.03)
------------ ------------ ------------
Net Asset Value per Share, End of Period $ 13.69 $ 11.57 $ 11.81
============ ============ ============
Total Return 18.85% (2.03)% /(1)/ 18.41% /(2)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 197,721 $ 136,122 $ 55,885
Ratio of Expenses to Average Net Assets 0.85% 0.91% /(3)/ 1.00% /(3)(4)/
Ratio of Net Investment Income to Average Net Assets 0.48% 0.44% /(3)/ 0.55% /(3)/
Portfolio Turnover Rate 53.77% 23.53% /(1)/ 29.67% /(2)/
</TABLE>
(1) For the ten months ended October 31, 1994 and not indicative of a full
year's operating results.
(2) For the period March 1, 1993 (commencement of operations) through December
31, 1993 and not indicative of a full year's operating results.
(3) Annualized.
(4) The Investment Adviser 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, as disclosed in Note 4 of the Notes to Financial
Statements. Had such action not been taken, total annualized operating
expenses as a percentage of average net assets would have been 1.09% for the
period March 1, 1993 (commencement of operations) through December 31, 1993.
82
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo Earnings Momentum Fund
FINANCIAL HIGHLIGHTS
- --------------------
NOVEMBER 1, 1994
(COMMENCEMENT OF
OPERATIONS) THROUGH
OCTOBER 31, 1995
-------------------
Net Asset Value per Share, Beginning of Period $ 10.00
---------
Income from Investment Operations:
Net Investment (Loss) (0.03)
Net Realized and Unrealized Gain on Investments 1.51
---------
Total from Investment Operations 1.48
---------
Less Distributions:
Distributions in Excess of Net Investment Income (0.01)
---------
Net Asset Value per Share, End of Period $ 11.47
=========
Total Return 14.76%
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 63,411
Ratio of Expenses to Average Net Assets /(1)/ 1.14%
Ratio of Net Investment (Loss) to Average Net Assets (0.28%)
Portfolio Turnover Rate 85.91%
(1) The Investment Adviser has voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund, to the extent necessary to limit the
annual ordinary operating expenses of the Fund to 1.14% of net assets as
disclosed in Note 4 of the Notes to Financial Statements. Had such action
not been taken, total annualized operating expenses as a percentage of
average net assets would have been 1.24% for the period November 1, 1994
(commencement of operations) through October 31, 1995.
83
<PAGE>
TCW Galileo Small Cap Growth Fund
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
March 1, 1994
(Commencement of
YEAR ENDED Operations) through
OCTOBER 31, 1995 October 31, 1994
---------------- -------------------
<S> <C> <C>
Net Asset Value per Share, Beginning of Period $ 9.39 $ 10.00
------------ -------------
Income (Loss) from Investment Operations:
Net Investment (Loss) (0.07) (0.04)
Net Realized and Unrealized Gain (Loss) on Investments 4.72 (0.57)
------------ -------------
Total from Investment Operations 4.65 (0.61)
------------ -------------
Less Distribuions:
Distribution for Net Realized Gains (0.51) --
------------ -------------
Net Asset Value per Share, End of Period $ 13.53 $ 9.39
============ =============
Total Return 49.89% (6.10)% /(1)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 66,056 $ 51,089
Ratio of Expenses to Average Net Assets /(3)/ 1.21% 1.09% /(2)/
Ratio of Net Investment Loss to Average Net Assets (0.61)% (0.59)% /(2)/
Portfolio Turnover Rate 89.73% 88.63% /(1)/
</TABLE>
(1) For the period March 1, 1994 (commencement of operations) through October
31, 1994 and not indicative of a full year's operating results.
(2) Annualized.
(3) The Investment Adviser has voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund, to the extent necessary to limit the
annual ordinary operating expenses of the Fund to 1.09% of net assets
through December 31, 1994, as disclosed in Note 4 of the Notes to Financial
Statements. Had such action not been taken, total annualized operating
expenses as a percentage of average net assets would have been 1.24% for the
fiscal year ended October 31, 1995 and 1.39% for the period March 1, 1994
(commencement of operations) through October 31, 1994.
84
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo Asia Pacific Equity Fund
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
March 1, 1994
(Commencement of
YEAR ENDED Operations) through
OCTOBER 31, 1995 October 31, 1994
---------------- -------------------
<S> <C> <C>
Net Asset Value per Share, Beginning of Period $ 10.19 $ 10.00
------------- --------------
Income from Investment Operations:
Net Investment Income 0.06 0.03
Net Realized and Unrealized Gain (Loss) on Investments
and Foreign Currency (1.19) 0.16
------------- --------------
Total from Investment Operations (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 $ 8.67 $ 10.19
============= ==============
Total Return (10.98)% 1.90% /(1)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 46,709 $ 54,019
Ratio of Expenses to Average Net Assets /(3)/ 1.47% 1.40% /(2)/
Ratio of Net Investment Income to Average Net Assets 0.74% 0.45% /(2)/
Portfolio Turnover Rate 102.01% 46.75% /(1)/
</TABLE>
(1) For the period March 1, 1994 (commencement of operations) through October
31, 1994 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 1.40% of net assets
through December 31, 1994 as disclosed in Note 4 of the Notes to Financial
Statements. Had such action not been taken, total annualized operating
expenses as a percentage of average net assets would have been 1.51% for the
fiscal year ended October 31, 1995 and 1.60% for the period March 1, 1994
(commencement of operations) through October 31, 1994, respectively.
85
<PAGE>
TCW Galileo Emerging Markets Fund
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
March 1, 1994
(Commencement of
YEAR ENDED Operations) through
OCTOBER 31, 1995 October 31, 1994
---------------- -------------------
<S> <C> <C>
Net Asset Value per Share, Beginning of Period $ 9.73 $ 10.00
----------- ------------
(Loss) from Investment Operations:
Net Investment Income (Loss) 0.04 (0.01)
Net Realized and Unrealized (Loss) on Investments
and Foreign Currency Transactions/Translations (2.58) (0.26)
----------- ------------
Total from Investment Operations (2.54) (0.27)
----------- ------------
Net Asset Value per Share, End of Period $ 7.19 $ 9.73
=========== ============
Total Return (26.11)% (2.70)% /(1)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 51,873 $ 70,212
Ratio of Expenses to Average Net Assets 1.55% 1.70% /(2)/
Ratio of Net Investment Income (Loss) to Average Net Assets 0.54% (0.09)% /(2)/
Portfolio Turnover Rate 74.24% 61.28% /(1)/
</TABLE>
(1) For the period March 1, 1994 (commencement of operations) through October
31, 1994 and not indicative of a full year's operating results.
(2) Annualized.
86
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo Latin America Equity Fund
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
March 1, 1993
Ten Months (Commencement of
YEAR ENDED Ended Operations) through
OCTOBER 31, 1995 October 31, 1994 December 31, 1993
---------------- ---------------- -------------------
<S> <C> <C> <C>
Net Asset Value per Share, Beginning of Period $ 14.99 $ 15.11 $ 10.00
----------- ----------- -----------
Income (Loss) from Investment Operations:
Net Investment Income 0.06 0.01 0.08
Net Realized and Unrealized Gain (Loss) on Investments
and Foreign Currency (5.92) (0.13) 6.35
----------- ----------- -----------
Total from Investment Operations (5.86) (0.12) 6.43
----------- ----------- -----------
Less Distributions:
Distributions from Net Investment Income -- -- (0.08)
Distributions from Realized Gains -- -- (1.21)
Distributions in Excess of Realized Gains (1.21) -- (0.03)
----------- ----------- -----------
Total Distributions (1.21) -- (1.32)
----------- ----------- -----------
Net Asset Value per Share, End of Period $ 7.92 $ 14.99 $ 15.11
=========== =========== ===========
Total Return (40.95)% (0.79)% /(1)/ 64.27% /(2)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 38,942 $ 122,610 $ 89,910
Ratio of Expenses to Average Net Assets 1.58% 1.36% /(3)/ 1.50% /(3) (4)/
Ratio of Net Investment Income to Average Net Assets 0.59% 0.11% /(3)/ 0.77% /(3)/
Portfolio Turnover Rate 75.62% 143.65% /(1)/ 120.06% /(2)/
</TABLE>
(1) For the ten months ended October 31, 1994 and not indicative of a full
year's operating results.
(2) For the period March 1, 1993 (commencement of operations) through December
31, 1993 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 1.50% of net assets
through December 31, 1994, as disclosed in Note 4 of the Notes to Financial
Statements. Had such action not been taken, total annualized operating
expenses as a percentage of average net assets would have been 1.52% for the
period March 1, 1993 (commencement of operations) through December 31, 1993.
87
<PAGE>
TCW GALILEO FUNDS, INC.
INDEPENDENT AUDITORS' REPORT
- ----------------------------
To the Board of Directors and Shareholders of TCW Galileo Funds, Inc.:
We have audited the accompanying statements of assets and liabilities of the
Funds comprising TCW Galileo Funds, Inc. (TCW Galileo Money Market Fund, TCW
Galileo High Grade Fixed Income Fund, TCW Galileo High Yield Bond Fund, TCW
Galileo Mortgage Backed Securities Fund, TCW Galileo Long-Term Mortgage Backed
Securities Fund, TCW Galileo Core Equity Fund, TCW Galileo Earnings Momentum
Fund, TCW Galileo Small Cap Growth Fund, TCW Galileo Asia Pacific Equity Fund,
TCW Galileo Emerging Markets Fund, and TCW Galileo Latin America Equity Fund)
(the "Funds"), including the schedules of investments, as of October 31, 1995
and the related statements of operations for the year ended October 31, 1995
and of changes in net assets for the year ended October 31, 1995 and periods
ended October 31, 1994 and the financial highlights for the year ended October
31, 1995, each of the periods ended October 31, 1994 and December 31, 1993, the
years ended December 31, 1992, 1991, 1990, 1989, and the period ended December
31, 1988. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based upon our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1995 by correspondence with the custodians and brokers. Where
confirmations were not received, we performed alternative procedures. An audit
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Funds as of October 31, 1995 and the results of their operations, the changes in
their net assets, and the financial highlights for the respective stated periods
in conformity with generally accepted accounting principles.
/s/ Deloitte & Touche LLP
December 14, 1995
Los Angeles, California
88
<PAGE>
TCW GALILEO FUNDS, INC.
SHAREHOLDER INFORMATION
- -----------------------
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
Thomas E. Larkin, Jr. (213) 244-0000
Director and President
John C. Argue SUB-ADVISERS
Director
TCW Asia Limited
Norman Barker, Jr. Suite 1308, One Pacific Place
Director 88 Queensway
Hong Kong
Richard W. Call
Director TCW London International, Limited
Birkett House
Alvin R. Albe, Jr. 27 Albemarle Street
Senior Vice President London W1X3FA
Michael E. Cahill
Senior Vice President, CUSTODIAN
General Counsel and Assistant Secretary BNY Western Trust Company
700 South Flower Street
Ronald E. Robison Suite 200
Senior Vice President Los Angeles, California 90017
David K. Sandie
Senior Vice President and Treasurer TRANSFER AGENT
Philip K. Holl DST Systems, Inc.
Secretary 811 Main Street
Kansas City, Missouri 64105
Marie M. Bender
Assistant Secretary
DISTRIBUTOR
Hilary G.D. Lord
Assistant Secretary TCW Brokerage Services
865 South Figueroa Street
Los Angeles, California 90017
(213) 244-0000
INDEPENDENT AUDITORS
Deloitte & Touche LLP
1000 Wilshire Boulevard
Los Angeles, California 90017
89
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