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Previous: SHAMAN PHARMACEUTICALS INC, S-8, 1997-06-30 |
Next: BOSTON FINANCIAL TAX CREDIT FUND VII LP, 10-K, 1997-06-30 |
<PAGE>
TCW GALILEO FUNDS, INC.
SEMI-ANNUAL REPORT
APRIL 30, 1997
<PAGE>
TCW GALILEO FUNDS, INC.
Table of Contents
- -----------------
<TABLE>
<CAPTION>
<S> <C>
Letter to Shareholders................................................ 2
Performance Summary................................................... 3
Schedules of Investments:
TCW Galileo Money Market Fund....................................... 4
TCW Galileo Core Fixed Income Fund.................................. 6
TCW Galileo High Yield Bond Fund.................................... 9
TCW Galileo Mortgage Backed Securities Fund......................... 15
TCW Galileo Long-Term Mortgage Backed Securities Fund............... 18
TCW Galileo Convertible Securities Fund............................. 20
TCW Galileo Core Equity Fund........................................ 24
TCW Galileo Earnings Momentum Fund.................................. 27
TCW Galileo Mid-Cap Growth Fund..................................... 31
TCW Galileo Small Cap Growth Fund................................... 34
TCW Galileo Asia Pacific Equity Fund................................ 39
TCW Galileo Emerging Markets Fund................................... 43
TCW Galileo Latin America Equity Fund............................... 49
Statements of Assets and Liabilities.................................. 52
Statements of Operations.............................................. 56
Statements of Changes in Net Assets................................... 60
Notes to Financial Statements......................................... 73
Financial Highlights.................................................. 82
Shareholder Information............................................... 96
</TABLE>
1
<PAGE>
To Our Shareholders
- -------------------
We are pleased to submit the April 30, 1997 Semi-Annual Report for the TCW
Galileo Funds. The Galileo Mutual Funds continue to provide our clients with
targeted investment strategies featuring daily liquidity, competitive management
fees and no front-end loads, 12b-1 or deferred sales charges. On the next page
is a summary of each Fund's net asset value and returns through April 30, 1997.
TCW is committed to providing you with superior professional investment
management and distinctive personal service through the TCW Galileo Funds.
Please call your Account Representative or our Shareholder Relations Department
at (800) FUND TCW [(800) 386-3829] if you have any questions or would like
further information on the TCW Galileo Funds.
Very truly yours,
/s/ Mark I. Stern
Marc I. Stern
Chairman of the Board
May 28, 1997
2
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1997
PERFORMANCE SUMMARY (Unaudited)
- -------------------------------
<TABLE>
<CAPTION>
Net Asset Value Total Return - Annualized
per Share As of April 30, 1997
--------------- ------------------------------------------------------
Latest Twelve
April 30, Months Ended Latest Since Inception
1997 April 30, 1997 5 Years Inception Date
--------------- -------------- ------- --------- ---------
<S> <C> <C> <C> <C> <C>
TCW Galileo Money Market Fund $ 1.00 5.15% 4.37% 5.75% 07/14/88
TCW Galileo Core Fixed Income
Fund 9.31 6.57% 6.08% (1) 7.09% (1) 01/01/90 (2)
TCW Galileo High Yield Bond Fund 9.83 11.65% 10.62% (1) 11.03% (1) 02/01/89 (2)
TCW Galileo Mortgage Backed
Securities Fund 9.66 7.41% 5.80% (1) 7.04% (1) 02/01/90 (2)
TCW Galileo Long-Term Mortgage
Backed Securities Fund 9.44 9.02% N/A 5.81% 06/17/93
TCW Galileo Convertible Securities
Fund (3) 9.76 5.99% (1) 11.67% (1) 12.12% (1) 01/01/89 (2)
TCW Galileo Core Equity Fund 16.74 11.21% 14.46% (1) 15.14% (1) 07/01/91 (2)
TCW Galileo Earnings
Momentum Fund 10.01 (27.67)% N/A 7.27% (1) 05/01/93 (2)
TCW Galileo Mid-Cap
Growth Fund 7.25 (24.50)% (1) N/A 18.05% (1) 11/01/94 (2)
TCW Galileo Small Cap
Growth Fund 13.49 (27.29)% 15.17% (1) 15.13% (1) 12/01/89 (2)
TCW Galileo Asia Pacific
Equity Fund 10.04 0.47% N/A 15.80% (1) 04/01/93 (2)
TCW Galileo Emerging Markets
Fund 9.34 10.55% N/A 9.61% (1) 06/01/93 (2)
TCW Galileo Latin America
Equity Fund 12.53 33.60% 5.80% (1) 14.24% (1) 07/01/91 (2)
</TABLE>
(1) Performance data includes the performance of the predecessor limited
partnership for periods before the TCW Galileo Funds' registration became
effective. The predecessor limited partnerships were not registered under
the Investment Company Act of 1940, as amended ("1940 Act"), and, therefore
were not subject to certain investment restrictions that are imposed by the
1940 Act. If the limited partnerships had been registered under the 1940
Act, the limited partnership's performance may have been lower.
(2) Inception date of predecessor limited partnership.
(3) Inception date of the Fund was January 2, 1997.
3
<PAGE>
TCW Galileo Money Market Fund
SCHEDULE OF INVESTMENTS (Unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
Principal
Amount INVESTMENTS Value
- --------- ----------- -----------
<S> <C> <C>
AGENCY FIXED INCOME SECURITIES (23.4% of Net Assets)
$ 2,000,000 Federal Farm Credit Bank, 5.8%, due 07/29/97 $ 1,999,547
3,740,000 Federal Home Loan Bank, 5.84%, due 07/24/97 3,740,799
2,000,000 Federal Home Loan Bank, 5.89%, due 06/16/97 2,000,536
9,000,000 Federal Home Loan Bank, 7.87%, due 12/15/97 9,118,537
2,415,000 Federal Home Loan Mortgage Corp., 5.37%, due 05/21/97 2,407,795
20,000,000 Federal Home Loan Mortgage Corp., 5.44%, due 05/06/97 19,984,889
10,000,000 Federal Home Loan Mortgage Corp., 5.47%, due 06/13/97 9,934,665
2,000,000 Federal Home Loan Mortgage Corp., 5.64%, due 08/28/97 1,998,090
10,000,000 Federal National Mortgage Association, 5.37%, due 05/19/97 9,973,150
5,000,000 Student Loan Marketing Association, 5.55%, due 07/17/97 5,000,000
-----------
TOTAL AGENCY FIXED INCOME SECURITIES (Cost: $66,158,008) 66,158,008
-----------
COMMERCIAL PAPER (66.5%)
6,200,000 American Express Credit Corp., 5.42%, due 05/01/97 6,200,000
4,000,000 American Express Credit Corp., 5.5%, due 05/07/97 3,996,333
5,000,000 American General Finance Corp., 5.53%, due 05/07/97 4,995,392
3,815,000 Becton Dickinson & Co., 5.53%, due 05/09/97 3,810,312
5,000,000 Cargill, Inc., 5.48%, due 05/01/97 5,000,000
5,000,000 Cargill, Inc., 5.5%, due 05/05/97 4,996,944
5,000,000 Chevron Oil Finance Co., 5.4%, due 05/02/97 4,999,250
5,000,000 Chevron Oil Finance Co., 5.5%, due 05/12/97 4,991,596
5,000,000 CIT Group Holdings, Inc., 5.52%, due 05/28/97 4,979,300
2,000,000 Commercial Credit Co., 5.53%, due 05/07/97 1,998,157
5,400,000 Dean Witter, Discover & Co., 5.5%, due 05/22/97 5,382,675
5,000,000 Dean Witter, Discover & Co., 5.53%, due 05/08/97 4,994,624
4,000,000 Florida Power Corp., 5.45%, due 05/01/97 4,000,000
10,000,000 General Electric Capital Corp., 5.4%, due 05/01/97 10,000,000
5,000,000 International Lease Finance Corp., 5.55%, due 06/03/97 4,974,563
5,000,000 John Deere & Co., 5.45%, due 05/12/97 4,991,674
5,000,000 John Deere & Co., 5.51%, due 05/23/97 4,983,164
8,000,000 Merrill Lynch & Co., Inc., 5.52%, due 05/23/97 7,973,014
2,000,000 Merrill Lynch & Co., Inc., 5.62%, due 07/02/97 1,980,642
7,325,000 Metlife Funding, Inc., 5.5%, due 05/28/97 7,294,784
3,200,000 Metlife Funding, Inc., 5.52%, due 05/29/97 3,186,260
5,000,000 Nations Bank Corp., 5.58%, due 05/30/97 4,977,525
4,190,000 Novartis Finance Corp., 5.47%, due 05/20/97 4,177,904
5,000,000 Novartis Finance Corp., 5.48%, due 05/23/97 4,983,256
5,000,000 Pitney-Bowes Credit Corp., 5.66%, due 09/15/97 4,892,303
5,000,000 Preferred Receivables Funding Corp., 5.55%, due 05/02/97 4,999,229
5,000,000 Preferred Receivables Funding Corp., 5.57%, due 06/11/97 4,968,282
10,000,000 Prudential Funding Corp., 5.5%, due 05/27/97 9,960,278
</TABLE>
See accompanying Notes to Financial Statements.
4
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1997
<TABLE>
<CAPTION>
Principal
Amount INVESTMENTS Value
- ----------- ----------- -----------
<S> <C> <C>
COMMERCIAL PAPER (Continued)
$ 1,900,000 SAFECO Credit Co., Inc., 5.33%, due 05/05/97 $ 1,898,875
4,000,000 Schering Corp., 5.52%, due 06/10/97 3,975,466
6,300,000 Schering Corp., 5.56%, due 05/28/97 6,273,729
9,200,000 Smithkline Beecham Corp., 5.43%, due 05/09/97 9,188,899
2,650,000 Toyota Motor Credit Corp., 5.45%, due 05/20/97 2,642,378
6,400,000 Toyota Motor Credit Corp., 5.5%, due 05/06/97 6,395,110
4,050,000 Transamerica Corp., 5.55%, due 05/01/97 4,050,000
1,600,000 United Parcel Service, 5.43%, due 05/08/97 1,598,311
5,000,000 USAA Capital Corp., 5.51%, due 06/03/97 4,974,746
2,200,000 USAA Capital Corp., 5.52%, due 05/01/97 2,200,000
-----------
TOTAL COMMERCIAL PAPER (Cost: $187,884,975) 187,884,975
-----------
CORPORATE FIXED INCOME SECURITIES (10.1%)
5,500,000 Associates Corp. of North America, 5.875%, due 08/15/97 5,496,492
2,500,000 Associates Corp. of North America, 6.7%, due 06/03/97 2,501,945
2,841,000 Associates Corp. of North America, 8.125%, due 01/15/98 2,889,214
4,500,000 CIT Group Holdings, 8.75%, due 07/01/97 4,521,470
3,100,000 Ford Motor Credit Corp., 7.125%, due 12/01/97 3,125,817
1,000,000 Ford Motor Credit Corp., 8%, due 12/01/97 1,012,096
1,500,000 General Electric Capital Corp., 6.29%, due 11/05/97 1,503,997
5,000,000 International Lease Finance Corp., 5.55%, due 05/05/97 4,999,992
2,500,000 Norwest Financial, Inc., 6.5%, due 11/15/97 2,511,811
-----------
TOTAL CORPORATE FIXED INCOME SECURITIES (Cost: $28,562,834) 28,562,834
-----------
SHORT-TERM INVESTMENT (Cost: $42,508) (0.1%)
--------------------------------------------
42,508 Bank of New York Depositary Reserve, 4.6%, due 05/01/97 42,508
-----------
TOTAL INVESTMENTS (Cost: $282,648,325) (100.1%) 282,648,325
LIABILITIES IN EXCESS OF OTHER ASSETS (-0.1%) (162,417)
-----------
NET ASSETS (100%) $282,485,908
============
</TABLE>
See accompanying Notes to Financial Statements.
5
<PAGE>
TCW Galileo Core Fixed Income Fund
SCHEDULE OF INVESTMENTS (Unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
Principal
Amount CORPORATE FIXED INCOME SECURITIES Value
- ----------- --------------------------------- ------------
<S> <C> <C>
BASIC INDUSTRIES (3.4%)
$ 100,000 AK Steel Corp., 9.125%, due 12/15/06 $ 99,125
25,000 Consumers International, 10.25%, (144A), due 04/01/05 25,375*
25,000 Dyncorp, Inc., (144A), 9.5%, due 03/01/07 24,562*
200,000 Foamex L.P., 11.25%, due 10/01/02 211,250
50,000 Iron Mountain Inc., 10.125%, due 10/01/06 51,750
50,000 Lockheed Martin Corp., 7.25%, due 05/15/06 50,000
100,000 Union Pacific Co., 7.875%, due 02/15/02 102,500
50,000 U. S. Can Corp., Series B, 10.125%, due 10/15/06 52,125
100,000 Whirlpool Corp., 9.1%, due 03/15/04 109,625
------------
TOTAL BASIC INDUSTRIES (Cost: $725,419) 726,312
------------
CONSUMER CYCLICALS (3.0%)
100,000 Coca-Cola Enterprises, Inc., 6.95%, due 11/15/26 91,750
25,000 Foodmaker, 1993A Corp., Series B, 9.75%, due 11/01/03 24,750
100,000 J. C. Penney Co., Inc., 9.05%, due 03/01/01 106,750
90,000 May Department Stores Co., 9.75%, due 02/15/21 106,088
25,000 STC Broadcasting, Inc., (144A), 11%, due 03/15/07 25,500*
250,000 Smith's Food & Drug Centers, Inc., 11.125%, due 05/15/07 278,437
------------
TOTAL CONSUMER CYCLICALS (Cost: $621,206) 633,275
------------
FINANCIAL (3.0%)
100,000 American General Finance Corp., 7.25%, due 05/15/05 99,625
100,000 BHP Finance USA Ltd., (Yankee) 6.69%, due 03/01/06 96,125
100,000 Comdisco Inc., 6.375%, due 11/30/01 97,125
100,000 Fleet Financial Group, Inc. 7.125%, due 04/15/06 98,000
100,000 GE Global Insurance Holdings Corp., 7%, due 02/15/26 92,750
100,000 Lehman Brothers, Inc. 7.125%, due 07/15/02 99,250
60,000 Security Pacific Corp., 11.5%, due 11/15/00 68,475
------------
TOTAL FINANCIAL (Cost: $665,651) 651,350
------------
TECHNOLOGY (Cost: $99,366) (0.5%)
100,000 Northern Telecom Capital Corp., 7.4%, due 06/15/06 101,375
------------
</TABLE>
* Restricted security (See Note 6).
See accompanying Notes to Financial Statements.
6
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1997
<TABLE>
<CAPTION>
Principal
Amount CORPORATE FIXED INCOME SECURITIES Value
- ---------- --------------------------------- -----------
<S> <C> <C>
UTILITY (2.7%)
$ 100,000 California Energy Co., Inc., 10.25%, due 01/15/04 $ 106,000
100,000 Hydro-Quebec (Yankee), 9.4%, due 02/01/21 116,000
100,000 Pacificorp., 6.75%, due 04/01/05 97,000
100,000 Praxair, Inc., 6.75%, due 03/01/03 98,250
50,000 TransTexas Gas Co., 11.5%, due 06/15/02 55,625
100,000 Union Electric Co., 6.75%, due 05/01/08 96,875
-----------
TOTAL UTILITY (Cost: $ 572,591) 569,750
-----------
TOTAL CORPORATE FIXED INCOME SECURITIES
(Cost: $2,684,233) (12.6%) $ 2,682,062
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -
FIXED RATE PASS-THROUGH SECURITIES
----------------------------------
1,421,207 Federal Home Loan Mortgage Association, Pool
#E20246, 7.5%, due 06/01/11 1,434,083
1,320,993 Federal Home Loan Mortgage Association, Pool
#C80409, 8%, due 06/01/26 1,341,217
345,831 Federal Home Loan Mortgage Association - GNMA,
Series 41, Class K, 8%, due 04/25/24 352,747
500,000 Federal National Mortgage Association (96-46-B),
6.5%, due 11/25/23 458,750
2,620,603 Government National Mortgage Association,
Pool #422688, 7%, due 05/15/26 2,534,595
375,428 Government National Mortgage Association, Pool
#432017, 8%, due 08/15/26 380,470
-------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS-FIXED RATE
PASS-THROUGH SECURITIES (Cost: $6,458,314) (30.5%) 6,501,862
-------------
U.S. TREASURY OBLIGATIONS
-------------------------
345,000 United States Treasury Bonds, 5.625%, due 08/15/13 342,236
345,000 United States Treasury Bonds, 7.5%, due 11/15/24 1,492,726
1,050,000 United States Treasury Bonds, 12%, due 08/15/13 1,462,251
2,630,000 United States Treasury Notes, 5.875%, due 01/31/99 2,615,272
690,000 United States Treasury Notes, 6%, due 08/15/99 684,984
1,025,000 United States Treasury Notes, 6.375%, due 08/15/02 1,015,847
350,000 United States Treasury Notes, 7.25%, due 08/15/04 361,291
1,000,000 United States Treasury Notes, 7.5%, due 10/31/99 1,025,490
1,000,000 United States Treasury Notes, 7.75%, due 11/30/99 1,031,550
360,000 United States Treasury Notes, 8%, due 11/15/21 398,956
500,000 United States Treasury Strips, 0%, due 05/15/02 360,815
-------------
TOTAL U. S. TREASURY OBLIGATIONS (Cost:
$10,874,518) (50.5%) 10,791,418
-------------
TOTAL FIXED INCOME SECURITIES (Cost: $20,017,065)
(93.6%) 19,975,342
-------------
</TABLE>
See accompanying Notes to Financial Statements.
7
<PAGE>
TCW Galileo Core Fixed Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount SHORT-TERM INVESTMENT (Cost $1,209,515) (5.6%) Value
- ---------- ---------------------------------------------- -----------
<S> <C> <C>
$1,209,515 Bank of New York Depositary Reserve, 4.6%, due 05/01/97 $ 1,209,515
-----------
TOTAL INVESTMENTS (Cost: $21,226,580) (99.2%) 21,184,857
EXCESS OF OTHER ASSETS OVER LIABILITIES (0.8%) 166,614
-----------
NET ASSETS (100%) $21,351,471
===========
</TABLE>
See accompanying Notes to Financial Statements.
8
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo High Yield Bond Fund
April 30, 1997
SCHEDULE OF INVESTMENTS (Unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
Principal
Amount CORPORATE FIXED INCOME SECURITIES Value
- ----------- --------------------------------- -----------
<S> <C> <C>
CONSUMER NON-CYCLICALS (17.0% of Net Assets)
Cable (1.7%)
$ 1,000,000 Cablevision Systems Corp., 9.875%, due 05/15/06 $ 995,000
175,000 Century Communications Corp., 9.5%, due 08/15/00 177,625
500,000 Comcast Corp., 9.125%, due 10/15/06 506,250
400,000 Comcast Corp., 9.375%, due 05/15/05 408,000
900,000 Jones Intercable, Inc., 8.875%, due 04/01/07 873,000
600,000 Rogers Cablesystems of America, Inc.,
Series B, 10%, due 03/15/05 633,000
-----------
Total Cable 3,592,875
-----------
Food & Drug Retailers (5.4%)
2,000,000 Di Giorgio Corp., 12%, due 02/15/03 2,100,000
125,000 Dominick's Finer Foods, 10.875%, due 05/01/05 136,563
2,920,000 Ralphs Grocery Co., 10.45%, due 06/15/04 3,095,200
5,450,000 Smith's Food & Drug Centers, Inc.,
11.25%, due 05/15/07 6,069,937
-----------
Total Food & Drug Retailers 11,401,700
-----------
Health & Hospital Management (4.4%)
4,075,000 Dade International, Inc., Series B, 11.125%, due 05/01/06 4,462,125
1,760,000 Integrated Health Services, Inc., 10.75%, due 7/15/04 1,883,200
3,000,000 Tenet Healthcare Corp., 8.625%, due 01/15/07 2,962,500
-----------
Total Health & Hospital Management 9,307,825
-----------
Other Consumer Non-Cyclicals (5.5%)
490,000 American Rice, Inc., 13%, due 07/31/02 485,100
155,000 American Safety Razor Co., Series B, 9.875%, due 08/01/05 160,231
1,395,000 Cott Corp., 9.375%, due 07/01/05 1,422,900
600,000 Delta Beverage Group, 9.75%, due 12/15/03 612,000
525,000 E & S Holdings Corp., Series B, 10.375%, due 10/01/06 540,750
675,000 Foodbrands America, Inc., 10.75%, due 05/15/06 776,250
1,500,000 International Home Foods, Inc., 10.375%, due 11/01/06 1,522,500
1,115,000 PMI Acquisition Corp., 10.25%, due 09/01/03 1,159,600
450,000 Remington Arms Co., Inc., (144A), 10%, due 12/01/03 364,500*
250,000 Revlon Consumer Products Corp., 9.5%, due 06/01/99 254,375
4,000,000 Revlon Consumer Products Corp., Series B, 10.5%, due 02/15/03 4,180,000
-----------
Total Other Consumer Non-Cyclicals 11,478,206
-----------
TOTAL CONSUMER NON-CYCLICALS (Cost: $34,563,996) 35,780,606
-----------
CONSUMER CYCLICALS (25.9%)
Autos & Auto Parts (1.6%)
1,250,000 Blue Bird Body Co., Series B, 10.75%, due 11/15/06 1,306,250
2,000,000 Hayes Wheels International, Inc., 11%, due 07/15/06 2,155,000
-----------
Total Autos & Auto Parts 3,461,250
-----------
</TABLE>
* Restricted security. (See Note 6)
See accompanying Notes to Financial Statements.
9
<PAGE>
TCW Galileo High Yield Bond Fund
SCHEDULE OF INVESTMENTS (Unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
Principal
Amount CORPORATE FIXED INCOME SECURITIES Value
- ----------- --------------------------------- -----------
<S> <C> <C>
Entertainment & Leisure (1.4%)
$ 1,150,000 Bally's Health & Tennis, 13%, due 01/15/03 $ 1,135,625
1,750,000 Cinemark, USA Inc., 9.625%, due 08/01/08 1,743,437
-----------
Total Entertainment & Leisure 2,879,062
-----------
Gaming (2.9%)
1,170,000 California Hotel Finance Corp., 11%, due 12/01/02 1,199,250
1,085,000 Fitzgerald's Gaming Corp., 13%, due 12/31/02 868,000
950,000 Griffin Gaming & Entertainment, Inc., Variable Rate,
due 06/30/00 935,750
3,105,000 Trump Atlantic City Funding, Inc., 11.25%, due 05/01/06 3,011,850
-----------
Total Gaming 6,014,850
-----------
Lodging (0.7%)
500,000 HMC Acquisition Properties, Inc., Series B, 9%, due
12/15/07 493,125
488,000 John Q. Hammons Hotels, L.P., 8.875%, due 02/15/04 478,240
525,000 La Quinta Inns, Inc., 9.25%, due 05/15/03 540,094
-----------
Total Lodging 1,511,459
-----------
Media (6.7%)
1,675,000 Ackerley Communications, Inc., Series B, 10.75%, due
10/01/03 1,767,125
3,700,000 Adams Outdoor Advertising, L.P., 10.75%, due 03/15/06 3,838,750
510,000 Chancellor Radio Broadcasting Co., 9.375%, due 10/01/04 502,350
3,750,000 Chancellor Radio Broadcasting Co., 12.5%, due 10/01/04 4,162,500
525,000 Heritage Media Services Corp., 11%, due 06/15/02 555,844
500,000 Jacor Communications, Inc., 9.75%, due 12/15/06 510,000
2,725,000 STC Broadcasting, Inc., (144A), 11%, due 03/15/07 2,779,500*
-----------
Total Media 14,116,069
-----------
Publishing (5.0%)
4,225,000 American Media Operations, 11.625%, due 11/15/04 4,520,750
2,335,000 Garden State Newspapers Co., 12%, due 07/01/04 2,545,150
750,000 Hollinger International Publishing, 8.625%, due 03/15/05 746,250
695,000 K-III Communications Corp., 10.625%, due 05/01/02 722,800
2,000,000 U. S. Banknote Corp., 10.375%, due 06/01/02 1,980,000
-----------
Total Publishing 10,514,950
-----------
Restaurants (0.8%)
1,600,000 Foodmaker, 1993A Corp., Series B, 9.75%, due 11/01/03 1,584,000
-----------
</TABLE>
* Restricted security. (See Note 6)
See accompanying Notes to Financial Statements.
10
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1997
<TABLE>
<CAPTION>
Principal
Amount CORPORATE FIXED INCOME SECURITIES Value
- ----------- --------------------------------- -----------
<S> <C> <C>
Retailers (6.1%)
$ 700,000 Central Rents, Inc., Series B, 12.875%, due 12/15/03 $ 703,500
1,000,000 Cole National Corp., 9.875%, due 12/31/06 1,015,000
2,985,000 Cole National Corp., 11.25%, due 10/01/01 3,257,380
3,000,000 Finlay Fine Jewelry Corp., 10.625%, due 05/01/03 3,116,250
2,343,000 Guitar Center Management, Inc., 11%, due 07/01/06 2,539,226
2,000,000 Michael's Stores, Inc., 10.875%, due 06/15/06 2,080,000
------------
Total Retailers 12,711,356
------------
Transportation (0.7%)
810,000 International Shipholding Corp., 9%, due 07/01/03 814,050
680,000 Moran Transportation Co., Inc., 11.75%, due 07/15/04 724,200
-----------
Total Transportation 1,538,250
-----------
TOTAL CONSUMER CYCLICALS (Cost: $53,242,757) 54,331,246
-----------
BASIC MATERIALS (20.9%)
Chemicals (4.2%)
820,000 Borden Chemical & Plastics, L.P., 9.5%, due 05/01/05 850,750
500,000 Foamex L.P., 9.5%, due 06/01/00 506,875
4,550,000 Foamex L.P., 11.25%, due 10/01/02 4,805,937
875,000 ISP Holdings Inc., 9%, due 10/15/03 883,750
1,765,000 NL Industries, Inc., 11.75%, due 10/15/03 1,884,138
-----------
Total Chemicals 8,931,450
-----------
Energy (7.8%)
1,200,000 Chesapeake Energy Corp., 10.5%, due 06/01/02 1,302,000
1,000,000 Chesapeake Energy Corp., 12%, due 03/01/01 1,121,250
1,225,000 Flores and Rucks, Inc., 13.5%, due 12/01/04 1,439,374
600,000 Forcenergy, Inc., 9.5%, due 11/01/06 606,000
500,000 Giant Industries, Inc., 9.75%, due 11/15/03 507,500
4,150,000 Mesa Operating Co., 10.625%, due 07/01/06 4,523,500
1,000,000 Nuevo Energy Co., 9.5%, due 04/15/06 1,025,000
1,300,000 Plains Resources, Inc., 10.25%, due 03/15/06 1,352,000
2,300,000 TransTexas Gas Co., 11.5%, due 06/15/02 2,558,750
2,000,000 Veritas DGC, Inc., 9.75%, due 10/15/03 2,010,000
-----------
Total Energy 16,445,374
-----------
</TABLE>
See accompanying Notes to Financial Statements.
11
<PAGE>
TCW Galileo High Yield Bond Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount CORPORATE FIXED INCOME SECURITIES Value
- ----------- --------------------------------- -----------
<S> <C> <C>
Forest Products & Paper (5.0%)
$ 2,150,000 Malette, Inc., 12.25%, due 07/15/04 $ 2,365,000
865,000 Rainy River Forest Products, Inc., 10.75%, due 10/15/01 948,256
1,250,000 SD Warren Co., Series B, 12%, due 12/15/04 1,375,000
3,500,000 Specialty Paperboard, Inc., Series B, 9.375%, due 10/15/06 3,500,000
890,000 Stone Consolidated Corp., 10.25%, due 12/15/00 948,963
1,300,000 Stone Container Corp., 10.75%, due 10/01/02 1,309,750
-----------
Total Forest Products & Paper 10,446,969
-----------
Metals & Mining (3.9%)
1,500,000 AK Steel Corp., 9.125%, due 12/15/06 1,486,875
1,289,000 Carbide Graphite Group, Inc., 11.5%, due 09/01/03 1,395,343
700,000 Great Lakes Carbon Corp., 10%, due 01/01/06 721,000
990,000 Northwestern Steel & Wire Co., 9.5%, due 06/15/01 881,100
720,000 Oregon Steel Mills, Inc., 11%, due 06/15/03 774,000
2,250,000 WCI Steel Inc., 10%, due 12/01/04 2,258,438
580,000 Weirton Steel Corp., 11.5%, due 03/01/98 591,600
-----------
Total Metals & Mining 8,108,356
-----------
TOTAL BASIC MATERIALS (Cost: $42,918,365) 43,932,149
-----------
INDUSTRIALS (26.6%)
Building Materials & Construction (3.6%)
2,000,000 Atrium Companies, Inc., (144A), 10.5%, due 11/15/06 2,000,000*
2,250,000 K Hovnanian Entertainment, 11.25%, due 04/15/02 2,306,250
1,000,000 Schuller International Group, 10.875%, due 12/15/04 1,096,250
820,000 Standard Pacific Corp., 10.5%, due 03/01/00 848,700
790,000 Trizec Finance Corp., 10.875%, due 10/15/05 865,050
425,000 U.S. Home Corp., 9.75%, due 06/15/03 431,375
-----------
Total Building Materials & Construction 7,547,625
-----------
Business Services & Distribution (7.7%)
500,000 Allied Waste of North America, (144A), 10.25%, due 12/01/06 526,250*
2,750,000 American Pad & Paper Co., 13%, due 11/15/05 3,176,250
1,400,000 Big Flower Press, Inc., 10.75%, due 08/01/03 1,473,500
1,503,000 Data Documents, Inc., 13.5%, due 7/15/02 1,653,300
3,171,000 Envirosource, Inc., 9.75%, due 06/15/03 2,996,595
4,125,000 Iron Mountain, Inc., 10.125%, due 10/01/06 4,269,375
310,000 Earle M. Jorgensen Co., 10.75%, due 03/01/00 299,150
1,265,000 Mid-American Waste Systems, Inc., 12.25%, due 02/15/03 687,844**
1,000,000 Pierce Leahy Corp., 11.125%, due 07/15/06 1,085,000
-----------
Total Business Services & Distribution 16,167,264
----------
</TABLE>
* Restricted security. (See Note 6)
** Non-income producing.
See accompanying Notes to Financial Statements.
12
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1997
<TABLE>
<CAPTION>
Principal
Amount CORPORATE FIXED INCOME SECURITIES Value
- ----------- --------------------------------- -----------
<S> <C> <C>
Communication Services (3.7%)
$ 660,000 Bell & Howell Operating Co., Inc., Series B, 10.75%,
due 10/01/02 $ 696,300
500,000 PanAmSat, L.P., 9.75%, due 08/01/00 521,875
830,000 Rogers Cantel, Inc., 9.375%, due 06/01/08 852,875
1,250,000 Sprint Spectrum, L.P., 11%, due 08/15/06 1,350,000
2,210,000 Teleport Communications Group, Inc., 9.875%, due 07/01/06 2,298,400
1,025,000 Telex Communications, Inc., (144A), 10.5%, due 05/01/07 1,030,125*
940,000 Telex Communications, Inc., 12%, due 07/15/04 1,052,800
-----------
Total Communication Services 7,802,375
-----------
Containers & Packaging (4.3%)
550,000 Bway Corp., (144A), 10.25%, due 04/15/07 569,250*
1,500,000 Consumers International, (144A), 10.25%, due 04/01/05 1,522,500*
500,000 Container Corp. of America, Series A, 11.25%, due 05/01/04 530,000
350,000 Container Corp. of America, Series B, 10.75%, due 05/01/02 371,000
740,000 Owens-Illinois, Inc., 11%, due 12/01/03 820,475
1,000,000 Plastic Containers, Inc., (144A), 10%, due 12/15/06 1,023,750*
2,360,000 Sweetheart Cup Corp., 9.625%, due 09/01/00 2,395,400
1,725,000 U. S. Can Corp., Series B, 10.125%, due 10/15/06 1,798,313
-----------
Total Containers & Packaging 9,030,688
-----------
Miscellaneous Manufacturing (7.3%)
1,800,000 BE Aerospace, Inc., 9.75%, due 03/01/03 1,858,500
2,570,000 Communications and Power Industries, Inc., Series B, 12%,
due 08/01/05 2,782,025
650,000 Dyncorp, Inc., (144A), 9.5%, due 03/01/07 638,625*
600,000 Mettler-Toledo, Inc., 9.75%, due 10/01/06 619,500
850,000 Neenah Corp., (144A), 11.125%, due 05/01/07 871,250*
695,000 NEWFLO Corp., Series B, 13.25%, due 11/15/02 751,468
1,050,000 Packard Bioscience Co., (144A), 9.375%, due 03/01/07 1,029,000*
1,500,000 Rohr Industries, Inc., 11.625%, due 05/15/03 1,661,250
4,905,000 Talley Manufacturing and Technology, Inc., 10.75%,
due 10/15/03 5,076,675
-----------
Total Miscellaneous Manufacturing 15,288,293
-----------
TOTAL INDUSTRIALS (Cost: $55,496,222) 55,836,245
-----------
</TABLE>
* Restricted security. (See Note 6)
See accompanying Notes to Financial Statements.
13
<PAGE>
TCW Galileo High Yield Bond Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount CORPORATE FIXED INCOME SECURITIES Value
- ----------- --------------------------------- -----------
<S> <C> <C>
CREDIT SENSITIVE (6.8%)
Financial Services & Institutions (4.6%)
$ 1,310,000 Annuity Group, Inc., 11.125%, due 02/01/03 $ 1,388,115
1,250,000 CDV Aquisition Corp., 9.75%, due 02/15/03 1,325,625
1,525,000 First Nationwide Holdings, 10.625%, due 10/01/03 1,601,250
3,205,000 First Nationwide Holdings, 12.25%, due 05/15/01 3,517,488
1,090,000 Homeside, Inc., 11.25%, due 05/15/03 1,242,600
630,000 Reliance Group Holdings, Inc., 9%, due 11/15/00 641,813
-------------
Total Financial Services & Institutions 9,716,891
-------------
Utilities (2.2%)
1,000,000 California Energy Co., Inc., 9.5%, due 09/15/06 1,042,500
492,178 Midland Cogeneration Ventures, L.P., Series C-91,
10.33%, due 07/23/02 519,248
2,694,479 Panda Funding Corp., 11.625%, due 08/20/12 2,748,368
290,000 Texas-New Mexico Power, Inc., 10.75%, due 09/15/03 309,070
-------------
Total Utilities 4,619,186
-------------
TOTAL CREDIT SENSITIVE (Cost: $14,076,517) 14,336,077
-------------
MULTI-INDUSTRY (Cost: $1,420,100) (0.7%)
1,480,000 Valcor, Inc., 9.625%, due 11/01/03 1,480,000
-------------
TOTAL CORPORATE FIXED INCOME SECURITIES
(Cost: $201,717,957) (97.9%) 205,696,323
-------------
Number of
Shares, Rights
or Warrants EQUITY SECURITIES
- --------------- -----------------
10,119 Fitzgerald Gaming Corp., Warrants, expire 12/19/98 25,298 **
100 PST Holdings, Inc., Common Stock 100 **
429 Terex Corp., Stock Appreciation Rights, expire 07/01/97 20 **
2,920 Terex Corp., Stock Appreciation Rights, expire 05/15/02 20,440 **
17,349 Transamerican Refining, Warrants, expire 02/15/02 34,699 **
-------------
TOTAL EQUITY SECURITIES (Cost: $90,581) (0.0%) 80,557
-------------
Principal
Amount SHORT-TERM INVESTMENT (Cost: $1,388,030) (0.7%)
- ------------- -----------------------------------------------
$ 1,388,030 Bank of New York Depositary Reserve, 4.6%, due 05/01/97 1,388,030
- ------------- -------------
TOTAL INVESTMENTS (Cost $203,196,568) (98.6%) 207,164,910
EXCESS OF OTHER ASSETS OVER LIABILITIES (1.4%) 2,989,573
-------------
NET ASSETS (100%) $210,154,483
=============
</TABLE>
** Non-income producing
See accompanying Notes to Financial Statements.
14
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo Mortgage Backed Securities Fund
April 30, 1997
SCHEDULE OF INVESTMENTS (Unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
Principal
Amount FIXED INCOME SECURITIES Value
- ----------- ----------------------- -----------
<S> <C> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS -
FIXED RATE (12.3% of Net Assets)
$ 2,620 CMO Mortgage Investors Trust (6-J), 1752.4%,
due 02/22/21, (I/O) $ 62,234
648,462 Federal Home Loan Mortgage Corp. (1087-G), 8.5%,
due 08/15/20, (PAC) 658,994
750,000 Federal National Mortgage Association (92-152-K), 7%,
due 04/25/99 751,290
3,595,869 Ryland Acceptance Corporation Four (63-D), 8.75%,
due 04/01/19 3,635,423
1,515,622 Sears Mortgage Securities (88-A-A2), 0.658%,
due 05/25/18, (I/O) 15,459
----------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS -
FIXED RATE (Cost: $5,704,692) $5,123,400
----------
COLLATERALIZED MORTGAGE OBLIGATIONS -
VARIABLE RATE (20.3%)
22,897 Columbia Savings and Loan (88-1-A), 6.999%, due 08/25/18 21,967
903 Federal National Mortgage Association (91-130-SQ), 6858.1%,
due 09/25/21, (I/O) (I/F) 135,168
113,008 Guardian Savings and Loan Association (88-1-A), 6.7007%,
due 07/25/18 96,057
265,853 Guardian Savings and Loan Association (88-3-A), 6.8306%,
due 11/25/18 225,975
263,227 Guardian Savings and Loan Association (89-3-A), 7.6573%,
due 05/25/19 223,743
1,333,668 Guardian Savings and Loan Association (89-4-A), 7.7669%,
due 07/25/19 1,266,985
1,401,550 Guardian Savings and Loan Association (89-5-A), 8.0289%,
due 07/25/19 1,331,473
61,981 Merrill Lynch Trust (26-B), 6.325%, due 07/01/16 62,268
366,889 Residential Funding Mortgage Securities I (89-4B-B), 6.9858%,
due 07/25/19 351,984
5,111 Resolution Trust Corp. (91-6-C2), 3,317.8%,
due 09/25/28, (I/O) 206,275
2,721 Resolution Trust Corp. (91-6-D2), 3,121.1%,
due 08/25/20, (I/O) 101,967
4,249,220 Resolution Trust Corp. (92-M4-A3), 7.57%, due 09/25/21 4,249,220
185,196 Western Federal Savings and Loan Association (88-9-A),
6.7603%, due 12/25/18 184,559
----------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS -
VARIABLE RATE (Cost: $9,470,501) $8,457,641
----------
</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.
15
<PAGE>
TCW Galileo Mortgage Backed Securities Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------
<TABLE>
<CAPTION>
Principal
Amount FIXED INCOME SECURITIES Value
- ----------- ----------------------- -----------
<S> <C> <C>
NON-AGENCY VARIABLE RATE PASS-THROUGH
SECURITIES (Cost: $1,125,582) (2.6%)
$ 1,135,965 Greenwich Capital Acceptance, Inc. (91-03),
(Private Placement), 8.3064%, due 08/25/19 $ 1,099,046 *
-------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - FIXED RATE
PASS-THROUGH SECURITIES (1.8%)
628,391 Federal National Mortgage Association, Pool #163492, 8.5%,
due 05/01/16 647,833
94,245 Federal Home Loan Mortgage Corp., Pool #212346, 9.5%,
due 08/01/01 97,721
-------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS -
FIXED RATE PASS-THROUGH SECURITIES (Cost: 749,127) 745,554
-------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - VARIABLE RATE
PASS-THROUGH SECURITIES (58.2%)
4,617,280 Federal Home Loan Mortgage Corp., Pool #410329, 5.405%,
due 05/01/26 4,676,150
2,323,949 Federal Home Loan Mortgage Corp., Pool #785630, 6.753%,
due 07/01/26 2,347,421
92,379 Federal Home Loan Mortgage Corp., Pool #770584, 7.25%,
due 05/01/19 92,935
1,265,878 Federal Home Loan Mortgage Corp., Pool #410013, 7.541%,
due 12/01/24 1,296,069
164,577 Federal Home Loan Mortgage Corp., Pool #865006, 7.851%,
due 08/01/18 171,158
129,782 Federal Home Loan Mortgage Corp., Pool #865009, 8.009%,
due 11/01/18 132,403
215,421 Federal Home Loan Mortgage Corp., Pool #865270, 8.273%,
due 12/01/18 219,867
323,124 Federal Home Loan Mortgage Corp., Pool #865275, 8.532%,
due 02/01/19 337,044
714,287 Federal Home Loan Mortgage Corp., Pool #310005, 9.417%,
due 11/01/19 736,162
1,873,372 Federal National Mortgage Association, Pool #358869,
5.75%, due 09/01/26 1,902,335
3,030,000 Federal National Mortgage Association, Pool #369080,
5.853%, due 04/01/27 3,058,406
2,354,839 Federal National Mortgage Association, Pool #124681,
7.482%, due 01/01/23 2,447,738
2,511,534 Federal National Mortgage Association, Pool #303172,
7.627%, due 12/01/24 2,588,286
</TABLE>
* Restricted security. (See Note 6)
See accompanying Notes to Financial Statements.
16
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1997
<TABLE>
<CAPTION>
Principal
Amount FIXED INCOME SECURITIES Value
- ----------- ----------------------- -----------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS - VARIABLE RATE
PASS-THROUGH SECURITIES (Continued)
$ 1,065,155 Federal National Mortgage Association, Pool #303334,
7.673%, due 04/01/25 $ 1,096,332
125,153 Federal National Mortgage Association, Pool #96193,
7.684%, due 09/01/18 129,670
2,465,497 Federal National Mortgage Association, Pool #303063,
7.87%, due 09/01/24 2,572,524
432,509 Federal National Mortgage Association, Pool #111365,
8.073%, due 09/01/19 451,704
-------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS -
VARIABLE RATE PASS-THROUGH SECURITIES
(Cost: $24,059,970) $ 24,256,204
-------------
TOTAL FIXED INCOME SECURITIES (Cost: $41,109,872) (95.2%) $ 39,681,845
-------------
SHORT-TERM INVESTMENT (Cost: $1,766,440) (4.2%)
-----------------------------------------------
1,766,440 Bank of New York Depositary Reserve, 4.6%, due 05/01/97 1,766,440
-------------
TOTAL INVESTMENTS (Cost: $42,876,312) (99.4%) $ 41,448,285
EXCESS OF OTHER ASSETS OVER LIABILITIES (0.6%) 232,644
-------------
NET ASSETS (100%) $ 41,680,929
=============
</TABLE>
See accompanying Notes to Financial Statements.
17
<PAGE>
TCW Galileo Long-Term Mortgage Backed Securities Fund
SCHEDULE OF INVESTMENTS (Unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
Principal
Amount FIXED INCOME SECURITIES Value
- ----------- ----------------------- -----------
<S> <C> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS -
FIXED RATE (40.6% of Net Assets)
$ 2,000,000 CMC Securities Corporation III (94-A-A12), 6.75%,
due 02/25/24, (PAC) $ 1,900,400
2,133,349 Citicorp Mortgage Securities, Inc. (95-2-A1),
7.5%, due 04/25/25 2,138,672
81,498 Federal Home Loan Mortgage Corp.
(1484-K), 6%, due 01/15/98 81,353
1,640,209 Federal Home Loan Mortgage Corp.
(1796-A-E), 6%, due 09/15/08 1,509,830
1,782,000 Federal Home Loan Mortgage Corp.
(1662-N), 6.25%, due 01/15/09 1,649,045
997,034 Federal Home Loan Mortgage Corp.
(1805-A-A), 6.5%, due 12/15/08 943,194
841,341 Federal Home Loan Mortgage Corp.
(1750-A-BA), 6.5%, due 04/15/09 815,369
1,000,000 Federal Home Loan Mortgage Corp.
(1844-E), 6.5% , due 10/15/13 924,200
1,077,445 Federal Home Loan Mortgage Corp.
(1541-J), 6.5% , due 07/15/23 1,070,560
2,303,759 Federal Home Loan Mortgage Corp. - Government National
Mortgage Association (43-OA), 6.5%, due 07/17/23 2,176,684
3,750,000 Federal Home Loan Mortgage Corp.
(1796-D-G), 6.5%, due 11/15/23 3,563,663
2,000,000 Federal Home Loan Mortgage Corp.
(1665-M), 6.5%, due 01/15/24 1,911,820
3,144,107 Federal Home Loan Mortgage Corp.
(1717-MA), 6.5%, due 04/15/24 2,903,111
356,795 Federal Home Loan Mortgage Corp. (1175
C), 8%, due 01/15/21, (TAC) 363,603
931,613 Federal National Mortgage Association
(95-X-19E-L), 6.25%, due 08/25/08 895,373
2,000,000 Federal National Mortgage Association
(93-X-130A-NA), 6.5%, due 05/25/23 1,826,520
1,894,734 Federal National Mortgage Association
(93-223-EA), 6.5%, due 12/25/23, (PAC) 1,753,197
500,000 Federal National Mortgage Association
(93-2-B), 7.2%, due 11/25/03 503,250
1,000,000 Federal National Mortgage Association
(92-215-PL), 7.25%, due 11/25/21, (PAC) 1,000,400
4,000,000 Federal National Mortgage Association
(G92-29-J), 8%, due 07/25/22 4,020,000
3,983,583 Government National Mortgage Association
(94-2-Z), 7.99125%, due 07/16/24 3,797,829
1,500,000 Residential Funding Mortgage Securities I
(95-S7-A9), 8%, due 05/25/10, (I/O) 303,750
4,358,628 Ryland Acceptance Corporation Four
(63-D), 8.75%, due 04/01/19 4,406,573
2,505,575 Securitized Asset Sales, Inc. (95-B-A2),
7.41%, due 09/25/24 2,512,476
2,145,136 Securitized Asset Sales, Inc. (95-4-A7),
7.5%, due 11/25/25 2,100,531
-------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS -
FIXED RATE (Cost: $45,039,448) 45,071,403
-------------
COLLATERALIZED MORTGAGE OBLIGATIONS -
VARIABLE RATE (10.2%)
1,500,000 CMC Securities Corporation III
(94-A-A22), 7.455%, due 02/25/24, (I/F) 904,266
3,850,112 Countrywide Funding Corp. (94-4-A9),
10.128%, due 04/25/24, (I/F) (PAC) 2,974,212
2,000,000 Federal Home Loan Mortgage Corp.
(1422-SA), 7.3839%, due 11/15/07, (I/F) 1,685,600
2,000,000 Federal Home Loan Mortgage Corp.
(1620-SB), 10%, due 11/15/23, (I/F) 1,404,440
2,288,691 Federal National Mortgage Association
(93-189-S), 7.5097%, due 10/25/23, (I/F) 1,608,927
3,000,000 Federal National Mortgage Association
(94-40-SA), 8.5531%, due 03/25/24, (I/F) 1,925,610
1,000,000 Federal National Mortgage Association
(93-202-SZ), 10%, due 11/25/23, (I/F) (PAC) 805,350
81,570 Northwestern Acceptance Corp. I (A-1),
6%, due 02/20/18 81,153
-------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS -
VARIABLE RATE (Cost: $11,532,936) 11,389,558
-------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -
FIXED RATE PASS-THROUGH SECURITIES (22.2%)
1,529,050 FHA (#000-13002), 7.125%, due 03/01/04 1,448,775
3,123,744 FHA (#012-11218), 7.125%, due 04/01/29 2,936,319
2,875,415 FHA (#012-11216), 7.185%, due 05/01/29 2,710,078
1,919,273 FHA (#044-10592), 7.625%, due 09/01/22 1,871,291
1,360,982 FHA (#081-11017), 7.75%, due 04/01/24 1,340,568
</TABLE>
PAC - Planned Amortization Class. I/O - Interest Only security.
TAC - Target Amortization Class.
I/F - Inverse floating rate security whose interest rate moves in the opposite
direction of prevailing interest rates.
See accompanying Notes to Financial Statements.
18
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1997
<TABLE>
<CAPTION>
Principal
Amount FIXED INCOME SECURITIES Value
-------- ----------------------- -------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -
FIXED RATE PASS-THROUGH SECURITIES (Continued)
$2,561,566 FHA (#112-43055), 9.25%, due 05/25/32 $ 2,676,837
15,643 Federal Home Loan Mortgage Corp., Pool #250685, 6.5%, due 10/01/99 15,594
1,415,824 Federal National Mortgage Association, Pool #310001, 6%, due 09/01/00 1,381,760
13,330 Federal National Mortgage Association, Pool #62420, 7.5%, due 03/01/06 13,422
4,110,539 Federal National Mortgage Association, Pool #303786, 7.5%, due 02/01/11 4,142,642
3,056,886 Federal National Mortgage Association, Pool #364851, 8%, due 02/01/27 3,117,069
16,337 Federal National Mortgage Association, Pool #29542, 8.75%, due 07/01/09 17,156
1,419,571 Government National Mortgage Association, Pool #365618, 7%, due 10/15/33 1,344,604
1,561,422 Government National Mortgage Association, Pool #351003, 7.5%, due 07/15/28 1,516,531
9,978 Government National Mortgage Association, Pool #176192, 8.25%, due 12/15/01 10,221
58,949 Government National Mortgage Association, Pool #3933, 8.25%, due 07/15/04 60,211
11,180 Government National Mortgage Association, Pool #217350, 9.25%, due 08/15/00 11,559
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS - FIXED RATE
PASS-THROUGH SECURITIES (Cost: $25,347,831) 24,614,637
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -VARIABLE
RATE PASS-THROUGH SECURITIES (23.7%)
2,151,039 Federal Home Loan Mortgage Corp., Pool #846317, 6.004%, due 08/01/26 2,194,060
483,387 Federal Home Loan Mortgage Corp., Pool #406874, 7.257%, due 06/01/22 498,192
460,997 Federal Home Loan Mortgage Corp., Pool #846125, 7.53%, due 04/01/25 473,933
778,802 Federal Home Loan Mortgage Corp., Pool #755183, 7.686%, due 12/01/15 804,603
1,459,817 Federal Home Loan Mortgage Corp., Pool #846089, 7.7%, due 09/01/24 1,499,129
2,598,846 Federal National Mortgage Association, Pool #347216, 5.39%, due 06/01/26 2,645,807
3,995,586 Federal National Mortgage Association, Pool #348025, 5.83%, due 06/01/26 4,039,058
4,445,558 Federal National Mortgage Association, Pool #348273, 6.423%, due 01/01/26 4,526,134
674,364 Federal National Mortgage Association, Pool #137064, 7.558%, due 03/01/19 695,647
1,843,398 Federal National Mortgage Association, Pool #124410, 7.614%, due 07/01/22 1,902,350
3,565,405 Government National Mortgage Association II, Pool #8717, 6%, due 10/20/25 3,620,490
3,339,869 Government National Mortgage Association II, Pool #8608, 6.5%, due 03/20/25 3,403,994
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS - VARIABLE
RATE PASS-THROUGH SECURITIES (Cost: $26,092,223) 26,303,397
------------
U.S. TREASURY SECURITIES (0.3%)
197,000 Certificate Accrual Treasury Strip, 0%, due 08/15/01 148,869
177,000 Certificate Accrual Treasury Strip, 0%, due 05/15/06 95,529
112,000 Certificate Accrual Treasury Strip, 0%, due 08/15/08 51,275
------------
TOTAL U.S. TREASURY SECURITIES (Cost: $286,049) 295,673
------------
TOTAL FIXED INCOME SECURITIES (Cost: $108,298,487)(97.0%) 107,674,668
------------
SHORT-TERM INVESTMENT (Cost: $3,075,689) (2.8%)
----------------------------------------------
3,075,689 Bank of New York Depositary Reserve, 4.6%, due 05/01/97 3,075,689
------------
TOTAL INVESTMENTS (Cost: $111,374,176) (99.8%) 110,750,357
EXCESS OF OTHER ASSETS OVER LIABILITIES (0.2% ) 242,189
------------
NET ASSETS (100%) $110,992,546
============
</TABLE>
See accompanying Notes to Financial Statements.
19
<PAGE>
TCW Galileo Convertible Securities Fund
SCHEDULE OF INVESTMENTS (Unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount FIXED INCOME AND EQUITY SECURITIES Value
- ------------ ---------------------------------- -----------
<C> <S> <C>
CONSUMER STAPLES (53.9% of Net Assets)
Drugs & Hospital Supply (4.5%)
$700,000 Sandoz Capital BVI, Ltd., (Switzerland), Euro, 2%, due 10/06/02 $ 878,500
$280,000 Sepracor, Inc., Euro, 7%, due 12/01/02 330,050
----------
Total Drugs & Hospital Supply 1,208,550
----------
Entertainment, Leisure & Media (3.9%)
13,900 Merrill Lynch & Co., Inc., Exchangeable Cox
Communications, Inc., $1.3725 Convertible Preferred 274,525
1,300 SFX Broadcasting, Inc., (144A), $3.25 Convertible Preferred 59,638 *
5,200 TCI Pacific Communications, Inc., $5.00 Convertible Preferred 490,100
$335,000 Tele-Communications International, Inc., 4.5%, due 02/15/06 247,900
----------
Total Entertainment, Leisure & Media 1,072,163
----------
Foods, Hotels & Restaurants (9.1%)
6,900 Apple South, Inc., (144A), $3.50 Convertible Preferred 378,638 *
$685,000 Boston Chicken, Inc., 0%, due 06/01/15 169,537 **
$270,000 Boston Chicken, Inc., 7.75%, due 05/01/04 290,925
$975,000 Hospitality Franchise Service, Inc., 4.75%, due 03/01/03 1,102,969
5,000 Host Marriott Financial Trust, (144A), $3.375
Convertible Preferred 285,000 *
$320,000 Signature Resort, 5.75%, due 01/15/07 251,200
----------
Total Foods, Hotels & Restaurants 2,478,269
----------
Healthcare (13.8%)
7,400 Aetna, Inc., $4.75 Convertible Preferred 629,000
$260,000 Assisted Living Concepts, Inc., (144A), 7%, due 07/31/05 382,200 *
4,800 McKesson Corp., (144A), $2.50 Convertible Preferred 274,200 *
$415,000 Morgan Stanley Group, Inc., Exchangeable Johnson & Johnson,
2%, due 03/29/02 463,762
$300,000 OccuSystems, Inc., (144A), 6%, due 12/15/01 292,125 *
$325,000 PhyMatrix Corp., (144A), 6.75%, due 06/15/03 267,313 *
$300,000 Physician Resource, 6%, due 12/01/01 248,250
$320,000 Quintiles Transnational Corp., (144AI, Reg D), 4.25%, due 05/31/00 303,400 *
$295,000 Tenet Healthcare Corp., Exchangeable Vencor, Inc., 6%, due 12/01/05 360,638
$225,000 Vivra, Inc., 5%, due 07/01/01 216,000
$325,000 Vivra, Inc., (144AI, Reg D), 5%, due 07/01/01 312,000 *
----------
Total Healthcare 3,748,888
----------
Retail (11.0%)
$280,000 Charming Shoppes, Inc., 7.5%, due 07/15/06 288,400
$250,000 Federated Department Stores, Inc., 5%, due 10/01/03 294,375
$425,000 Home Depot, Inc., 3.25%, due 10/01/01 436,156
10,500 Kmart Corp., $3.875 Convertible Preferred 605,062
$235,000 Men's Wearhouse, Inc., 5.25%, due 03/01/03 230,300
</TABLE>
* Restricted security. (See Note 6)
** Non-income producing.
See accompanying Notes to Financial Statements.
20
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1997
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount FIXED INCOME AND EQUITY SECURITIES Value
- ------------ ---------------------------------- -----------
<C> <S> <C>
Retail (Continued)
$290,000 Nine West Group, Inc., (144AI, Reg S), 5.5%, due 07/15/03 $ 263,900 *
$845,000 Staples, Inc., Euro, 4.5%, due 10/01/00 867,181
-----------
Total Retail 2,985,374
-----------
Services - Business (11.6%)
$1,100,000 CUC International, Inc., (144A), 3%, due 02/15/02 1,023,000 *
$235,000 Checkpoint Systems, Inc., Euro, 5.25%, due 11/01/05 222,662
$580,000 Omnicom Group, Inc., (144A), 4.25%, due 01/03/07 635,825 *
$660,000 Safeguard Scientifics, Inc., (144A), 6%, due 02/01/06 603,075 *
$295,000 U.S. Office Products Co., 5.5%, due 05/15/03 248,169
$355,000 U.S. Office Products Co., Euro, 5.5%, due 05/15/03 298,644
3,400 Vanstar Corp., $3.375 Convertible Preferred 108,375
-----------
Total Services - Business 3,139,750
-----------
TOTAL CONSUMER STAPLES (Cost: $14,125,926) 14,632,994
-----------
CONSUMER CYCLICALS (Cost: $286,123) (1.1%)
Automotive (1.1%)
$280,000 Magna International, Inc., (Canada), 5%, due 10/15/02 305,900
-----------
CAPITAL GOODS (28.8%)
Aerospace & Conglomerates (2.6%)
$305,000 Hexcel Corp., 7%, due 08/01/03 399,550
$280,000 Morgan Stanley Group, Exchangeable Boeing Co., 0%, due 09/30/00 312,900 **
-----------
Total Aerospace & Conglomerates 712,450
-----------
Electronics (9.4%)
$285,000 Adaptec, Inc., (144A), 4.75%, due 02/04/04 281,794 *
$245,000 Analog Devices, Inc., 3.5%, due 12/01/00 335,650
$360,000 C-Cube Microsystems, Inc., 5.875%, due 11/01/05 361,800
$270,000 General Instrument Corp., 5%, due 06/15/00 282,150
$205,000 Metricom, Inc., (144AI, Reg D), 8%, due 09/15/03 143,500 *
$280,000 SCI Systems, Inc., 5%, due 05/01/06 386,750
6,600 U. S. West Inc., Exchangeable U.S. West Media Group,
$2.25 Convertible Preferred 292,875
$410,000 XILINX, Inc., (144A), 5.25%, due 11/01/02 467,400 *
-----------
Total Electronics 2,551,919
-----------
Information Processing (2.2%)
6,700 Morgan Stanley Group, Inc., Exchangeable Cisco Systems, Inc.,
$4.00 Convertible Preferred 381,062
5,821 Storage Technology Corp., Common Stock 204,462
-----------
Total Information Processing 585,524
-----------
</TABLE>
* Restricted security. (See Note 6)
** Non-income producing.
See accompanying Notes to Financial Statements.
21
<PAGE>
TCW Galileo Convertible Securities Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount FIXED INCOME AND EQUITY SECURITIES Value
- ------------ ---------------------------------- -----------
<C> <S> <C>
Pollution Control (9.2%)
$ 810,000 Thermo Electron Corp., Euro, 4.25%, due 01/01/03 $ 876,825
$ 515,000 USA Waste Systems, Inc., 4%, due 02/01/02 511,137
$ 850,000 United States Filter Corp., 4.5%, due 12/15/01 841,500
$ 325,000 WMX Technologies, Inc., 2%, due 01/24/05 281,125
----------
Total Pollution Control 2,510,587
----------
Telecommunications Equipment (5.4%)
4,900 Corning Delaware, L.P., $3.00 Convertible Preferred 372,400
$1,455,000 Motorola, Inc., 0%, due 09/27/13 1,083,975 **
----------
Total Telecommunications Equipment 1,456,375
----------
TOTAL CAPITAL GOODS (Cost:$7,694,553) 7,816,855
----------
BASIC INDUSTRIES (3.8%)
Chemicals/Petrochemicals (0.8%)
$ 200,000 Indian Petrochemicals Corp., (144A), 2.5%, due 03/11/02 206,000 *
----------
Oil & Gas - Domestic (2.0%)
$ 215,000 Apache Corp., Euro, 6%, due 01/15/02 257,463
$ 290,000 Morgan Stanley Group, Exchangeable Schlumberger, Ltd.
(Netherlands) (144A), 0%, due 05/01/01 274,050 ***
----------
Total Oil & Gas - Domestic 531,513
----------
Oil & Gas - International (1.0%)
4,000 Occidental Petroleum Corp., Exchangeable Canadian
Occidental Petroleum, $3.00 Convertible Preferred 284,000
----------
TOTAL BASIC INDUSTRIES (Cost:$902,901) 1,021,513
----------
CREDIT SENSITIVE (9.2%)
Real Estate (2.6%)
$ 280,000 Capstone Capital Corp., 6.55%, due 03/14/02 259,000
$ 200,000 LTC Properties, Inc., 8.25%, due 07/01/01 221,750
$ 220,000 LTC Properties, Inc., 8.5%, due 01/01/01 219,725
----------
Total Real Estate 700,475
----------
Insurance (3.5%)
5,400 Allstate Corp., Exchangeable PMI Group, Inc.,
$2.30 Convertible Preferred 233,550
3,300 American Bankers Insurance Group, $3.125 Convertible Preferred 207,488
4,500 PennCorp Financial Group, Inc., (144AI, Reg D), $3.50
Convertible Preferred 258,187 *
8,900 Salomon, Inc., Exchangeable Financial Security
Assurance Holdings, Ltd., $2.30 Convertible Preferred 255,875
----------
Total Insurance 955,100
----------
</TABLE>
* Restricted security. (See Note 6)
** Non-income producing.
See accompanying Notes to Financial Statements.
22
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1997
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount FIXED INCOME AND EQUITY SECURITIES Value
------------- ---------------------------------- ----------
<C> <S> <C>
FINANCIAL SERVICES (3.1%)
$280,000 Berkshire Hathaway, Inc., Exchangeable Salomon, Inc., 1%,
due 12/02/01 $ 268,450
700 Merrill Lynch & Co., Inc., Exchangeable SunAmerica,
$4.087 Convertible Preferred 46,463
10,000 National Australia Bank, Ltd. (Australia),
$1.96875 Convertible Preferred 263,750
6,500 SunAmerica Corp., $3.188 Convertible Preferred 274,625
-----------
Total Financial Services 853,288
-----------
TOTAL CREDIT SENSITIVE (Cost:$2,568,388) 2,508,863
-----------
TOTAL INVESTMENTS (Cost: $25,577,891) (96.8%) 26,286,125
EXCESS OF OTHER ASSETS OVER LIABILITIES (3.2%) 877,231
-----------
NET ASSETS (100%) $27,163,356
===========
</TABLE>
See accompanying Notes to Financial Statements.
23
<PAGE>
TCW Galileo Core Equity Fund
SCHEDULE OF INVESTMENTS (Unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
--------- ----------------- ---------
<S> <C> <C>
CONSUMER STAPLES (28.4% of Net Assets)
Beverages (2.3%)
145,900 PepsiCo, Inc. $ 5,088,262
-----------
Cosmetics & Household Products (3.4%)
97,100 Kimberly-Clark Corp. 4,976,375
19,900 Procter & Gamble Co. 2,502,425
-----------
Total Cosmetics & Household Products 7,478,800
-----------
Healthcare (14.7%)
87,400 Amgen, Inc. 5,145,675
81,100 Johnson & Johnson 4,967,375
44,000 Oxford Health Plans, Inc. 2,898,500
48,400 Pfizer, Inc. 4,646,400
62,600 Lilly (Eli) & Co. 5,500,975
75,000 United Healthcare Corp. 3,646,875
55,700 Warner-Lambert Co. 5,458,600
-----------
Total Healthcare 32,264,400
-----------
Hotels, Restaurants & Media (2.7%)
144,300 Mirage Resorts, Inc. 2,904,038 **
180,691 Westinghouse Electric Corp. 3,071,747
-----------
Total Hotels, Restaurants & Media 5,975,785
-----------
Retailing (4.1%)
96,050 CUC International, Inc. 2,029,056
122,666 Home Depot, Inc. 7,114,628
-----------
Total Retailing 9,143,684
-----------
Tobacco (1.2%)
67,100 Philip Morris Companies, Inc. 2,642,063
-----------
TOTAL CONSUMER STAPLES (Cost: $53,486,908) 62,592,994
-----------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
24
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1997
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
--------- ----------------- ------------
<S> <C> <C>
CONSUMER CYCLICALS (7.8%)
Autos & Auto Parts (7.8%)
195,600 Chrysler Corp. $ 5,868,000
122,826 Ford Motor Co. 4,268,203
104,500 Lear Seating Corp. 3,735,875
61,000 Magna International, Inc. 3,179,625
-----------
TOTAL CONSUMER CYCLICALS (Cost: $15,052,075) 17,051,703
-----------
CAPITAL GOODS & BUSINESS SERVICES (39.4%)
Aerospace (7.2%)
87,000 Boeing Co. 8,580,375
95,700 United Technologies Corp. 7,237,313
-----------
Total Aerospace 15,817,688
-----------
Electronics, Semiconductors & Instruments (10.9%)
82,400 Hewlett Packard Co. 4,326,000
68,100 Honeywell, Inc. 4,809,563
97,500 Intel Corp. 14,929,687
-----------
Total Electronics, Semiconductors & Instruments 24,065,250
-----------
Telecommunications Equipment (7.4%)
88,100 Ascend Communications, Inc. 4,030,575
85,900 Cascade Communications Corp. 2,705,850
108,500 Cisco Systems, Inc. 5,614,875
67,400 Lucent Technologies, Inc. 3,985,025
-----------
Total Telecommunications Equipment 16,336,325
-----------
Information Processing (9.9%)
78,000 Computer Sciences Corp. 4,875,000
84,400 Microsoft Corp. 10,254,600
112,800 Storage Technology Corp. 3,962,100
45,400 Xerox Corp. 2,792,100
-----------
Total Information Processing 21,883,800
-----------
</TABLE>
See accompanying Notes to Financial Statements.
25
<PAGE>
TCW GALILEO CORE EQUITY FUND
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- ----------------------------------------------
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
--------- ----------------- -------------
<C> <S> <C>
Machinery (2.4%)
59,100 Caterpillar, Inc. $ 5,259,900
------------
Services (1.6%)
106,700 Corrections Corp. of America 3,481,088 **
------------
TOTAL CAPITAL GOODS & BUSINESS SERVICES
(Cost: $53,647,375) 86,844,051
------------
BASIC INDUSTRIES (14.0%)
Transportation (14.0%)
60,100 AMR Corp. 5,596,813
38,833 Burlington Northern Santa Fe 3,058,099
193,100 Continental Airlines, Inc., Class B 6,130,925 **
85,900 Delta Air Lines, Inc. 7,913,537
108,600 UAL Corp. 8,077,125
------------
TOTAL BASIC INDUSTRIES (Cost: $21,567,492) 30,776,499
------------
CREDIT SENSITIVE (10.3%)
Financial Services (10.3%)
96,600 Associates First Capital Corp. 4,950,750
53,400 Citicorp 6,014,175
81,300 Green Tree Financial Corp. 2,408,512
30,500 Marsh & McLennan Companies, Inc. 3,675,250
59,500 Merrill Lynch & Co., Inc. 5,667,375
------------
TOTAL CREDIT SENSITIVE (Cost: $13,839,070) 22,716,062
------------
TOTAL EQUITY SECURITIES (Cost: $157,592,920) (99.9%) 219,981,309
------------
<CAPTION>
Principal
Amount SHORT-TERM INVESTMENT (Cost: $216,104) (0.1%)
---------- ---------------------------------------------
<C> <S> <C>
$216,104 Bank of New York Depositary Reserve, 4.6%, due 05/01/97 216,104
------------
TOTAL INVESTMENTS (Cost: $157,809,024) (100.0%) 220,197,413
LIABILITIES IN EXCESS OF OTHER ASSETS (0.0%) (56,819)
------------
NET ASSETS (100%) $220,140,594
============
</TABLE>
** Non-Income Producing.
See accompanying Notes to Financial Statements.
26
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo Earnings Momentum Fund
April 30, 1997
SCHEDULE OF INVESTMENTS (Unaudited)
- ----------------------------------
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
--------- ----------------- -----------
<C> <S> <C>
CONSUMER STAPLES (53.5% of Net Assets)
Drugs & Hospital Supply (9.8%)
66,700 BioChem Pharma, Inc. $1,199,558 **
12,400 Closure Medical Corp. 184,450 **
24,700 Conceptus, Inc. 247,000 **
17,600 Fisher Scientific International, Inc. 745,800 **
41,600 Martek Biosciences Corp. 608,400 **
32,200 Pathogenesis Corp. 845,250 **
48,600 Safeskin Corp. 1,087,425 **
38,500 Selfcare, Inc. 346,500 **
40,500 Vivus, Inc. 1,495,969 **
----------
Total Drugs & Hospital Supply 6,760,352
----------
Foods, Hotels & Restaurants (3.6%)
55,800 Interstate Hotels Co. 1,401,975 **
17,300 Signature Resorts, Inc. 382,763 **
46,300 United Natural Foods, Inc. 717,650 **
----------
Total Foods, Hotels & Restaurants 2,502,388
----------
Healthcare (11.6%)
50,300 ABR Information Services, Inc. 1,012,287 **
12,000 Amerisource Health Corp. 535,500 **
5,400 Arqule, Inc. 76,275 **
39,100 Cytyc Corp. 830,875 **
44,600 Intelligent Medical Imaging, Inc. 195,125 **
24,700 MedCath, Inc. 327,275 **
77,800 NeoPath, Inc. 1,225,350 **
66,600 Neoprobe Corp. 840,825 **
17,000 OEC Medical Systems, Inc. 259,250 **
67,000 OccuSystems, Inc. 1,381,875 **
38,000 Total Renal Care Holdings, Inc. 1,220,750 **
5,900 Urocor, Inc. 54,575 **
----------
Total Healthcare 7,959,962
----------
Leisure, Entertainment, Photo & Media (6.2%)
9,300 Cox Radio, Inc. 188,325 **
60,400 Family Golf Centers, Inc. 1,230,650 **
35,000 Gemstar International Group, Ltd. 446,250 **
34,600 Macrovision Corp. 384,925 **
40,200 Metro Networks, Inc. 1,020,075 **
47,600 Oakley, Inc. 487,900 **
33,700 Rockshox, Inc., 507,606 **
----------
Total Leisure, Entertainment, Photo & Media 4,265,731
----------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
27
<PAGE>
TCW Galileo Earnings Momentum Fund
SCHEDULE OF INVESTMENTS (Unaudited)(Continued)
- ----------------------------------------------
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- --------- ----------------- -----------
<C> <S> <C>
Retail (3.8%)
9,200 Gadzooks, Inc. $ 256,450 **
63,050 Just for Feet, Inc. 1,000,919 **
26,850 K & G Men's Center, Inc. 446,381 **
80,000 Marks Brothers Jewelers, Inc. 890,000 **
------------
Total Retail 2,593,750
------------
Schools (2.4%)
34,600 Firearms Training Systems, Inc. 493,050 **
36,900 Learning Tree International, Inc. 1,162,350 **
------------
Total Schools 1,655,400
------------
Services - Business (16.1%)
59,400 American Residential Services, Inc. 1,121,175 **
94,500 Brightpoint, Inc. 2,067,188 **
92,997 Corporate Express, Inc. 929,970 **
49,800 Envoy Corp. 1,039,575 **
50,000 Fine Host Corp. 1,262,500 **
79,000 Norwood Promotional Products, Inc. 1,106,000 **
28,300 Nova Corp. 509,400 **
55,600 Stericycle, Inc. 472,600 **
21,800 Stewart Enterprises, Inc., Class A 719,400
10,200 Superior Consultant Holdings Corp. 234,600 **
39,700 Wackenhut Corrections Corp., Class B 560,762
60,600 Wilmar Industries, Inc. 999,900 **
------------
Total Services - Business 11,023,070
------------
TOTAL CONSUMER STAPLES (Cost: $36,691,640) 36,760,653
------------
CONSUMER CYCLICALS (2.4%)
Autos & Auto Parts (2.4%)
26,800 Dura Automotive Systems, Inc. 723,600 **
79,900 Miller Industries, Inc. 948,813 **
------------
TOTAL CONSUMER CYCLICALS (Cost: $1,483,296) 1,672,413
------------
CAPITAL GOODS (37.7%)
Aerospace & Defense (1.8%)
51,400 BE Aerospace, Inc. 1,265,725 **
------------
Computer Software & Services (12.7%)
14,000 Aspect Development, Inc. 299,250 **
30,000 BDM International, Inc. 697,500 **
46,600 CSG Systems International, Inc. 827,150 **
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
28
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1997
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- --------- ----------------- -----------
<C> <S> <C>
Computer Software & Services (Continued)
50,500 Ciber, Inc. $1,805,375 **
20,000 Digex, Inc. 162,500 **
8,800 Ecsoft Group, PLC (ADR) (Great Britain) 83,600 **
40,100 Gensym Corp. 260,650 **
20,000 International Network Services 410,000 **
50,400 Legato Systems, Inc. 670,950 **
42,900 Mechanical Dynamics, Inc. 284,213 **
38,000 Pure Atria Corp. 370,500 **
5,600 Radiant Systems, Inc. 66,500 **
25,500 Red Brick Systems, Inc. 197,625 **
23,400 Remedy Corp. 757,575 **
48,000 Select Software Tools, Ltd. (ADR) (Great Britain) 636,000 **
27,000 Transition Systems, Inc. 324,000 **
86,500 Trusted Information Systems, Inc. 778,500 **
7,600 USCS International, Inc. 125,400 **
----------
Total Computer Software & Services 8,757,288
----------
Electronics (11.0%)
34,300 AFC Cable Systems, Inc. 754,600 **
113,400 Anicom, Inc. 935,550 **
44,100 Bolder Technologies Corp. 545,738 **
36,000 C.P. Clare Corp. 324,000 **
68,100 Coherent Communications Systems Corp. 1,115,138 **
55,800 Computer Products, Inc. 955,575 **
39,600 Dialogic Corp. 782,100 **
51,900 ECI Telecommunications, Ltd. 1,135,312 **
42,500 Sheldahl, Inc. 988,125 **
----------
Total Electronics 7,536,138
----------
Information Processing (5.9%)
29,100 Baan Company, N.V. 1,564,125 **
25,600 Citrix Systems, Inc. 382,400 **
58,400 Medic Computer Systems, Inc. 912,500 **
21,400 Saville Systems, PLC (ADR) (Ireland) 880,075 **
15,100 Siebel Systems, Inc. 273,687 **
----------
Total Information Processing 4,012,787
----------
Office Equipment & Building Supplies (1.1%)
56,000 Cameron Ashley, Inc. 756,000 **
----------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
29
<PAGE>
TCW Galileo Earnings Momentum Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- --------- ----------------- -----------
<C> <S> <C>
Pollution Control (5.2%)
15,300 Culligan Water Technologies, Inc. 625,387 **
31,900 Memtec, Ltd. (ADR) (Australia) 737,688
60,500 Molten Metal Technology, Inc. 393,250 **
79,100 Tetra Technologies, Inc. 1,839,075 **
-----------
Total Pollution Control 3,595,400
-----------
TOTAL CAPITAL GOODS (Cost: $25,683,883) 25,923,338
BASIC MATERIALS (2.9%)
Chemicals (0.8%)
105,900 Landec Corp. 555,975 **
Energy & Oil Services (0.5%)
37,600 3DX Technologies, Inc. 329,000 **
-----------
Transportation (1.6%)
17,300 Atlas Air, Inc. 475,750 **
33,400 Wabash National Corp. 597,025
-----------
Total Transportation 1,072,775
-----------
TOTAL BASIC MATERIALS (Cost: $2,416,964) 1,957,750
-----------
CREDIT SENSITIVE (3.2%)
Insurance (2.1%)
23,100 CapMAC Holdings, Inc. 600,600
31,700 PXRE Corp. 804,388
-----------
Total Insurance 1,404,988
-----------
Telecommunications (1.1%)
19,500 McLeod, Inc. 358,312 **
53,000 Omnipoint Corp. 410,750 **
-----------
Total Telecommunications 769,062
-----------
TOTAL CREDIT SENSITIVE (Cost: $2,874,206) 2,174,050
-----------
TOTAL EQUITY SECURITIES (Cost: $69,149,989) 68,488,204
(99.7%) -----------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount SHORT-TERM INVESTMENT (Cost: $1,658,929) (2.4%)
- ---------- ----------------------------------------------
<C> <S>
$ 1,658,929 Bank of New York Depositary Reserve, 4.6%, due
05/01/97 1,658,929
-----------
TOTAL INVESTMENTS (Cost: $70,808,918) (102.1%) 70,147,133
LIABILITIES IN EXCESS OF OTHER ASSETS (-2.1%) (1,457,724)
-----------
NET ASSETS (100%) $68,689,409
===========
</TABLE>
** Non-income producting.
See accompanying Notes to Financial Statements.
30
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo Mid-Cap Growth Fund
April 30, 1997
SCHEDULE OF INVESTMENTS (Unaudited)
- ----------------------------------
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- --------- ----------------- -----------
CONSUMER STAPLES (58.2% of Net Assets)
Foods, Hotels & Restaurants (9.7%)
<S> <C> <C>
39,900 Boston Chicken, Inc. $ 952,613 **
62,700 HFS, Inc. 3,714,975 **
42,800 Mirage Resorts, Inc. 861,350 **
67,800 Signature Resorts, Inc. 1,500,075 **
37,400 Starbucks, Corp. 1,117,325 **
-----------
Total Foods, Hotels & Restaurants 8,146,338
-----------
Healthcare (14.2%)
46,700 Biogen, Inc. 1,494,400 **
107,300 Coventry Corp. 1,388,194 **
41,900 Dura-Pharmaceuticals, Inc. 1,215,100 **
74,000 Health Management Associates, Inc., Class A 1,979,500 **
40,800 Omnicare, Inc. 994,500
21,000 Oxford Health Plans, Inc. 1,383,375 **
73,475 Phycor, Inc. 1,956,272 **
72,300 Safeskin Corp. 1,617,712 **
-----------
Total Healthcare 12,029,053
-----------
Leisure, Entertainment, Photo & Media (7.5%)
77,300 Clear Channel Communications, Inc. 3,749,050 **
4,600 Playboy Enterprises, Inc. 63,825 **
35,400 Regal Cinemas, Inc. 964,650 **
67,100 Westwood One, Inc. 1,602,013 **
-----------
Total Leisure, Entertainment, Photo & Media 6,379,538
-----------
Retail (9.0%)
83,700 Bed, Bath & Beyond, Inc. 2,291,287 **
79,875 CUC International, Inc. 1,687,359 **
57,550 Just for Feet, Inc. 913,606 **
107,100 Petsmart, Inc. 1,800,619 **
28,700 Smith's Food & Drug Centers, Inc. 961,450 **
-----------
Total Retail 7,654,321
-----------
</TABLE>
** Non-income producting.
See accompanying Notes to Financial Statements.
31
<PAGE>
TCW Galileo Mid-Cap Growth Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- ----------------------------------------------
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- --------- ----------------- -----------
<C> <S> <C>
Services-Business (17.8%)
44,975 Apollo Group, Inc., Class A $ 1,208,703 **
60,100 Corrections Corp. of America 1,960,763 **
106,900 National TechTeam, Inc. 1,656,950 **
74,000 Outdoor Systems, Inc. 2,053,500 **
51,400 Paychex, Inc. 2,406,163
55,500 Robert Half International, Inc. 2,178,375 **
99,000 Romac International, Inc. 1,930,500 **
52,600 Snyder Communications, Inc. 1,091,450 **
35,200 Teletech Holdings, Inc. 624,800 **
-----------
Total Services-Business 15,111,204
-----------
TOTAL CONSUMER STAPLES (Cost: 5,750,799) 49,320,454
CAPITAL GOODS (35.8%)
Autos & Auto Parts (1.9%)
135,350 Miller Industries, Inc. 1,607,281 **
-----------
Electronics (11.2%)
17,300 Advanced Fibre Communications 689,837 **
77,800 Ascend Communications, Inc. 3,559,350 **
78,800 Maxim Integrated Products, Inc. 4,166,550 **
43,200 Pairgain Technologies, Inc. 1,123,200 **
-----------
Total Electronics 9,538,937
-----------
Information Processing (20.6%)
45,600 Baan Company, N.V. 2,451,000 **
20,700 CBT Group, PLC (ADR) (Ireland) 1,006,538 **
64,100 Cognex Corp. 1,578,462 **
16,400 Computer Horizons Corp. 713,400 **
16,900 E-Trade Group, Inc. 253,500 **
800 I2 Technologies, Inc. 30,400 **
26,900 Netscape Communications Corp. 727,981 **
52,400 Peoplesoft, Inc. 2,174,600 **
56,400 Remedy Corp. 1,825,950 **
74,900 Security Dynamics Technologies, Inc. 1,891,225 **
115,100 Siebel Systems, Inc. 2,086,188 **
40,000 Transaction Systems Architects, Inc. 1,200,000 **
45,200 Yahoo!, Inc. 1,542,450 **
-----------
Total Information Processing 17,481,694
-----------
</TABLE>
** Non-income producting.
See accompanying Notes to Financial Statements.
32
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1997
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- --------- ----------------- -----------
<C> <S> <C>
Machinery (1.0%)
34,500 Stewart & Stevenson Services, Inc. $ 828,000
-----------
Waste Management (1.1%)
14,100 Btezdearborn Laboratories, Inc. 902,400
-----------
TOTAL CAPITAL GOODS (Cost: $27,265,960) 30,358,312
-----------
CREDIT SENSITIVE (1.5%)
Financial Services (1.5%)
23,400 Credit Acceptance Corp. 253,012 **
21,900 T. Rowe Price Associates 1,012,875
-----------
TOTAL CREDIT SENSITIVE (Cost: $1,424,870) 1,265,887
-----------
TOTAL EQUITY SECURITIES (Cost: 7,441,629) (95.5%) 80,944,653
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount SHORT-TERM INVESTMENT (Cost: $4,830,488) (5.7%)
----------- ------------------------------------------------
<C> <S> <C>
$4,830,488 Bank of New York Depositary Reserve, 4.6%,
due 05/01/97 4,830,488
-----------
TOTAL INVESTMENTS (Cost: $79,272,117) (101.2%) 85,775,141
LIABILITIES IN EXCESS OF OTHER ASSETS (-1.2%) (1,054,997)
-----------
NET ASSETS (100%) $84,720,144
===========
</TABLE>
* Non-income producting.
See accompanying Notes to Financial Statements.
33
<PAGE>
TCW Galileo Small Cap Growth Fund
SCHEDULE OF INVESTMENTS (Unaudited)
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- --------- ----------------- -----------
<C> <S> <C>
CONSUMER STAPLES (53.1% of Net Assets)
Drugs & Hospital Supply (6.1%)
45,700 Capstone Pharmacy Services, Inc. $ 385,594 **
18,300 Cell Therapeutics, Inc. 153,262 **
29,400 Dura Pharmaceuticals, Inc. 852,600 **
25,500 Gulf South Medical Supply, Inc. 363,375 **
169,800 Safeskin Corp. 3,799,275 **
22,600 Vivus, Inc. 834,788 **
-----------
Total Drugs & Hospital Supply 6,388,894
-----------
Foods, Hotels & Restaurants (2.1%)
22,100 Boston Chicken, Inc. 527,638 **
23,400 Einstein/Noah Bagel Corp. 431,437 **
27,200 Interstate Hotels Co. 683,400 **
25,700 Signature Resorts, Inc. 568,613 **
-----------
Total Foods, Hotels & Restaurants 2,211,088
-----------
Healthcare (15.6%)
35,200 ABR Information Services, Inc. 708,400 **
23,600 Amerisource Health Corp. 1,053,150 **
27,400 Cohr, Inc. 609,650 **
78,700 Coventry Corp. 1,018,181 **
31,500 CRA Managed Care, Inc. 1,110,375 **
26,400 Curative Health Services, Inc. 623,700 **
19,300 Cytyc Corp. 410,125 **
33,000 First Commonwealth, Inc. 404,250 **
67,000 HPR, Inc. 946,375 **
75,000 IRIDEX Corp. 450,000 **
64,300 Lumisys, Inc. 425,988 **
29,600 MedCath, Inc. 392,200 **
22,800 NeoPath, Inc. 359,100 **
50,100 Neoprobe Corp. 632,513 **
42,000 Neose Technologies, Inc. 509,250 **
64,600 OccuSystems, Inc. 1,332,375 **
32,000 Omnicare, Inc. 780,000
96,500 Orthodontic Centers of America, Inc. 1,158,000 **
11,500 Oxford Health Plans, Inc. 757,562 **
6,200 Pediatrix Medical Group, Inc. 204,600 **
44,100 Pharmaceutical Product Development, Inc. 738,675 **
35,325 Phycor, Inc. 940,528 **
20,000 Total Renal Care Holdings, Inc. 642,500 **
-----------
Total Healthcare 16,207,497
-----------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
34
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1997
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- --------- ----------------- -----------
<C> <S> <C>
Leisure, Entertainment, Photo & Media (9.2%)
56,000 Clear Channel Communications, Inc. $ 2,716,000 **
25,200 Cox Radio, Inc. 510,300 **
7,800 Emmis Broadcasting Corp., Class A 273,000 **
59,700 Family Golf Centers, Inc. 1,216,388 **
9,100 Heftel Broadcasting Corp. 455,000 **
25,400 International Speedway Corp. 466,725 **
17,400 LIN Television Corp. 719,925 **
28,000 Metro Networks, Inc. 710,500 **
5,900 Penske Motorsports, Inc. 173,312 **
1,500 Playboy Enterprises, Inc. 20,813 **
42,075 Regal Cinemas, Inc. 1,146,544 **
49,900 Westwood One, Inc. 1,191,362 **
-----------
Total Leisure, Entertainment, Photo & Media 9,599,869
-----------
Retail (7.2%)
41,800 Bed, Bath & Beyond, Inc. 1,144,275 **
16,200 Dollar Tree Stores, Inc. 639,900 **
63,150 Just for Feet, Inc. 1,002,506 **
23,700 K & G Men's Center, Inc. 394,013 **
67,000 Kenneth Cole Productions, Inc. 1,113,875 **
29,900 Marks Bros. Jewelers, Inc. 332,637 **
34,800 North Face, Inc. 491,550 **
59,200 Petsmart, Inc. 995,300 **
25,200 Smith's Food & Drug Centers, Inc. 844,200 **
14,200 Tiffany & Co. 562,675
-----------
Total Retail 7,520,931
-----------
Services - Business (12.9%)
58,824 AccuStaff, Inc. 1,073,538 **
25,200 Caribiner International, Inc. 1,335,600 **
22,600 Corrections Corp. of America 737,325 **
49,500 Envoy Corp. 1,033,313 **
22,700 Meta Group, Inc. 385,900 **
19,100 Metzler Group, Inc. 487,050 **
136,800 National TechTeam, Inc. 2,120,400 **
67,400 Outdoor Systems, Inc. 1,870,350 **
37,600 Robert Half International, Inc. 1,475,800 **
51,300 Romac International, Inc. 1,000,350 **
32,900 Snyder Communications, Inc. 682,675 **
20,600 Superior Consultant Holdings Corp. 473,800 **
18,400 Vincam Group, Inc. 598,000 **
14,000 Wackenhut Corrections Corp., Class B 222,250
-----------
Total Services - Business 13,496,351
-----------
TOTAL CONSUMER STAPLES (Cost: $46,537,985) 55,424,630
-----------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
35
<PAGE>
TCW GALILEO SMALL CAP GROWTH FUND
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
---------- ----------------- -------
CONSUMER CYCLICALS (2.6%)
AUTOS & AUTO PARTS (2.6%)
<S> <C> <C>
27,200 Dura Automotive Systems, Inc. $ 734,400 **
130,950 Miller Industries, Inc. 1,555,031 **
12,400 Tower Automotive, Inc. 458,800 **
-----------
TOTAL CONSUMER CYCLICALS (Cost: $2,025,385) 2,748,231
-----------
CAPITAL GOODS (32.8%)
AEROSPACE & DEFENSE (1.0%)
41,000 BE Aerospace, Inc. 1,009,625 **
-----------
COMPUTER SOFTWARE & SERVICES (15.6%)
36,800 Applied Graphics Technologies, Inc. 1,113,200 **
12,900 Aspect Development, Inc. 275,738 **
45,600 Cambridge Technology Partners, Inc. 1,214,100 **
22,900 Ciber, Inc. 818,675 **
12,400 Clarify, Inc. 106,175 **
17,150 Computer Learning Centers, Inc. 456,619 **
55,875 Computer Management Sciences, Inc. 733,359 **
71,700 CSG Systems International, Inc. 1,272,675 **
6,600 Inso Corp. 138,600 **
24,700 International Network Services 506,350 **
57,100 Legato Systems, Inc 760,144 **
21,600 Peoplesoft, Inc. 896,400 **
13,300 Planning Sciences International, PLC (Great Britain) 58,187 **
44,175 Pure Atria Corp. 430,706 **
3,000 Radiant Systems, Inc. 35,625 **
27,100 Red Brick Systems, Inc. 210,025 **
24,000 Remedy Corp. 777,000 **
62,100 Security Dynamics Tech, Inc. 1,568,025 **
43,600 Select Software Tools, Ltd. (ADR) (Great Britain) 577,700 **
4,950 Sykes Enterprises, Inc. 141,075 **
17,255 Synopsys, Inc. 550,003 **
5,900 Tecnomatix Technologies, Ltd. 151,188 **
34,300 Transaction Systems Architects, Inc., Class A 1,029,000 **
10,300 Transition Systems, Inc. 123,600 **
54,600 Viasoft, Inc. 2,320,500 **
-----------
Total Computer Software & Services 16,264,669
-----------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
36
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1997
<TABLE>
<CAPTION>
Number
of Shares
or Warrants EQUITY SECURITIES Value
------------- ------------------ -----------
<S> <C> <C>
ELECTRONICS (6.7%)
3,384 American Satellite Network, Inc., Warrants, expire 06/30/99 $ - **
34,100 Ascend Communications, Inc. 1,560,078 **
37,000 Bolder Technologies Corp. 457,875 **
46,900 Computer Products, Inc. 803,163 **
44,300 Maxim Integrated Products, Inc. 2,342,363 **
39,000 Natural Microsystems Corp. 819,000 **
13,200 Premisys Communications, Inc. 117,150 **
24,400 Sheldahl, Inc 567,300 **
28,700 SRS Labs, Inc. 265,475 **
7,800 Ultrak, Inc. 83,850 **
-----------
Total Electronics 7,016,254
-----------
INFORMATION PROCESSING (7.6%)
49,400 Aspen Technologies, Inc. 1,500,525 **
19,800 CBT Group, PLC (ADR) (Ireland) 962,775 **
38,300 Citrix Systems, Inc. 572,106 **
10,600 Computer Horizons Corp. 461,100 **
31,000 Dendrite International, Inc. 259,625 **
19,600 HNC Software, Inc. 519,400 **
1,000 I2 Technologies, Inc. 38,000 **
11,904 Medic Computer Systems, Inc. 186,000 **
5,600 Network Appliance, Inc. 163,100 **
51,300 Saville Systems, PLC (ADR) (Ireland) 2,109,712 **
44,200 Siebel Systems, Inc. 801,125 **
10,400 Yahoo!, Inc. 354,900 **
-----------
Total Information Processing 7,928,368
-----------
MACHINERY (0.4%)
37,200 Daniel Industries, Inc. 474,300
-----------
POLLUTION CONTROL (1.5%)
24,500 Culligan Water Technologies, Inc. 1,001,437 **
22,700 Memtec, Ltd. (ADR) (Australia) 524,937
-----------
Total Pollution Control 1,526,374
-----------
TOTAL CAPITAL GOODS (Cost: $27,276,790) 34,219,590
-----------
BASIC MATERIALS (1.5%)
TRANSPORTATION (1.5%)
22,900 Atlas Air, Inc. 629,750 **
6,200 Eagle USA Airfreight, Inc. 124,000 **
48,000 Wabash National Corp. 858,000
-----------
TOTAL BASIC MATERIALS (Cost: $1,324,422) 1,611,750
-----------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
37
<PAGE>
TCW GALILEO SMALL CAP GROWTH FUND
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- ----------------------------------------------
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
----------- ----------------- -------------
CREDIT SENSITIVE (5.6%)
FINANCIAL SERVICES (2.4%)
<S> <C> <C>
11,300 First USA Paymentech, Inc. $ 272,612 **
52,800 Imperial Credit Industries, Inc. 768,900 **
24,600 Redwood Trust, Inc. 1,156,200
9,600 Sirrom Capital Corp. 298,800
------------
Total Financial Services 2,496,512
------------
TELECOMMUNICATIONS (3.2%)
52,100 LCI International, Inc. 866,163 **
44,000 McLeod, Inc. 808,500 **
56,600 Telco Communications Group, Inc. 1,103,700 **
54,600 WinStar Communications, Inc. 566,475 **
------------
Total Telecommunications 3,344,838
------------
TOTAL CREDIT SENSITIVE (Cost: $6,146,370) 5,841,350
------------
TOTAL COMMON STOCK (Cost: $83,310,952) (95.6%) 99,845,551
------------
PREFERRED STOCK
---------------
BASIC INDUSTRIES (1.5%)
ENERGY AND OIL SERVICES (COST: $1,191,543)(1.5%)
33,900 Newpark Resources, Inc. 1,521,263 **
------------
TOTAL EQUITY SECURITIES (Cost: $84,502,495) (97.1%) 101,366,814
------------
Principal
Amount SHORT-TERM INVESTMENT (Cost: $3,020,615) (2.9%)
--------- -----------------------------------------------
$3,020,615 Bank of New York Depositary Reserve, 4.6%, due 05/01/97 3,020,615
------------
TOTAL INVESTMENTS (Cost: $87,523,110) (100.0%) 104,387,429
EXCESS OF OTHER ASSETS OVER LIABILITIES (0.0%) 3,413
-------------
NET ASSETS (100%) $104,390,842
=============
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
38
<PAGE>
TCW GALILEO FUNDS, INC.
TCW GALILEO ASIA PACIFIC EQUITY FUND
April 30, 1997
SCHEDULE OF INVESTMENTS (Unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Warrants EQUITY SECURITIES Value
- ----------- ----------------- -----------
COMMON STOCK
HONG KONG (36.2% of Net Assets)
<S> <C> <C>
122,000 Cheung Kong Holdings, Limited $ 1,070,852
192,000 China Light & Power Co., Limited 864,943
276,000 China Merchants Hai Hong Holdings, Limited 295,698
1,452,000 China Overseas Land & Investment, Limited 819,984
319,000 China Resources, Limited 881,181
265,000 Citic Pacific, Limited 1,433,246
136,000 Great Eagle Holdings, Limited 406,397
910,000 Guangdong Investment, Limited 851,609
300,000 Guangnan Holdings, Limited 431,774
1,397,000 Guangzhou Investment Co., Limited 662,696
63,000 GZI Transport, Limited 37,814
12,600 GZI Transport Limited, Warrants, expire 01/29/99 2,017 **
285,600 Hong Kong Telecommunications, Limited 490,310
55,737 HSBC Holdings Public, Limited 1,410,134
186,000 Hutchison Whampoa, Limited 1,380,517
213,000 Hysan Development Co., Limited 588,375
301,000 Min Xin Holdings, Limited 185,524
166,000 New World Development Co., Limited 957,804
204,000 Shanghai Industrial Holdings, Limited 1,148,094
798,000 Shum Yip Investment, Limited 566,535
88,000 Sun Hung Kai Properties, Limited 954,165
124,000 Wheelock & Co., Limited 257,696
-----------
TOTAL HONG KONG (Cost: $11,527,015) 15,697,365
-----------
INDIA (5.7%)
23,600 BSES, Limited (144A) (GDR) 548,700 *
10,500 Indian Hotels (ADR) 244,125
22,000 Mahindra & Mahindra (144A) (GDR) 264,000 *
25,600 State Bank of India (144A) (GDR) 620,800 *
25,000 Tata Engineering & Locomotive (144A) (GDR) 300,000 *
24,900 Videsh Sancher Nigam, Limited (144A) (GDR) 479,325 *
-----------
TOTAL INDIA (Cost: $1,990,712) 2,456,950
-----------
</TABLE>
* Restricted security. (See Note 6)
** Non-income producing.
See accompanying Notes to Financial Statements.
39
<PAGE>
TCW GALILEO ASIA PACIFIC EQUITY FUND
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
Number of
Shares or
Warrants EQUITY SECURITIES Value
--------- ----------------- --------
<S> <C> <C>
INDONESIA (6.6%)
152,000 Astra International (Foreign Registered) $ 556,479
1,315,094 PT Bank International Indonesia (Foreign Registered) 946,695
111,384 PT Bank International Indonesia (Foreign Registered),
Warrants, expire 01/17/00 35,509 **
355,000 PT Bank Negara Indonesia (ADR) 197,140
209,000 PT London Sumatra Indonesia (Foreign Registered) 541,629
160,000 PT Ramayana Lestari Sentosa (Foreign Registered) 388,318
7,380 Telekomunikasi Indonesia (ADR) 210,330
----------
TOTAL INDONESIA (Cost: $2,600,008) 2,876,100
----------
MALAYSIA (19.2%)
143,000 Amway Malaysia Berhad 916,886
114,000 Commerce Asset Holdings Berhad 681,004
178,000 DCB Holding Berhad 577,738
117,000 Gadek Berhad 731,541
47,000 Gadek Berhad, Warrants, expire 12/19/00 112,306 **
400,000 Industrial Oxygen, Inc. Berhad 497,013
315,000 Larut Consolidated Berhad 329,928
155,000 Malakoff Berhad 617,284
122,000 Malaysian Pacific Industries Berhad 485,862
150,000 Nam Fatt Berhad 391,278
53,000 New Straits Times Press Berhad 295,500
334,000 Public Finance Berhad (Foreign Registered) 532,059
200,000 Sime Darby Berhad 617,284
186,000 Tenaga Nasional Berhad 859,259
100,180 United Engineers Malaysia Berhad 710,157
----------
TOTAL MALAYSIA (Cost: $7,778,490) 8,355,099
----------
PHILIPPINES (3.0%)
42,700 Bank of Philippine Islands 229,761
3,156 Far East Bank & Trust Co. 10,046
34,810 Manila Electric Co. 216,326
25,500 Philipine Commerce International Bank 314,039
16,275 Philippine National Bank 106,691
1,569,000 SM Prime Holdings 410,235
----------
TOTAL PHILIPPINES (Cost: $1,350,486) 1,287,098
----------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
40
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1997
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
--------- ----------------- -----------
<S> <C> <C>
SINGAPORE (11.5%)
80,000 City Development, Limited $ 646,186
60,000 Development Bank of Singapore, Limited (Foreign Registered) 712,461
60,000 Far East Levingston Shipbuilding, Limited 187,228
70,000 Fraser & Neave, Limited 507,421
110,000 Keppel Corp., Limited 478,426
114,000 Orchard Parade Holding, Limted 261,291
135,000 Singapore Land, Limited 629,099
77,000 United Overseas Bank, Limited (Foreign Registered) 722,955
321,000 Wing Tai Holdings, Limited 828,816
-----------
TOTAL SINGAPORE (Cost: $5,640,887) 4,973,883
-----------
SOUTH KOREA (2.3%)
28,428 Hyundai Engineering & Construction (GDR) 99,498
1,639 Hyundai Engineering & Construction (New GDR) 14,751
13,800 Korea Electric Power Corp. (ADR) 234,600
57,000 Korea Exchange Bank 367,248
11,000 Pohang Iron & Steel Co., Limited (ADR) 265,376
-----------
TOTAL SOUTH KOREA (Cost: $1,701,600) 981,473
-----------
TAIWAN (5.7%)
54,000 Acer, Inc., Limited (GDR) 702,000
8,200 China Steel, Limited (GDR) 190,650
104,395 The Taiwan Index Fund, Limited 1,592,024
-----------
TOTAL TAIWAN (Cost: $1,832,639) 2,484,674
-----------
THAILAND (3.6%)
57,000 Bangkok Bank, Public Company, Limited (Foreign Registered) 527,697
226,100 Electricity Generating, Public Company, Limited (Foreign Registered) 605,471
187,800 National Finance Public Company, Limited (Foreign Registered) 231,696
102,600 Phatra Thanakit, Public Company, Limited (Foreign Registered) 198,214
-----------
TOTAL THAILAND (Cost: $2,197,642) 1,563,078
-----------
TOTAL COMMON STOCK (Cost: $36,619,479) (93.8%) 40,675,720
-----------
</TABLE>
See accompanying Notes to Financial Statements.
41
<PAGE>
TCW GALILEO ASIA PACIFIC EQUITY FUND
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- ----------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares PREFERRED STOCK Value
- ------------- --------------- ------------
SOUTH KOREA (Cost: $601,931) (1.2%)
<S> <C> <C>
6,730 Samsung Electronics Co., Limited, Non-Voting, Preferred (GDR) $ 541,350
------------
TOTAL EQUITY SECURITIES (Cost: $37,221,410) (95.0%) 41,217,070
------------
Principal
Amount CONVERTIBLE SECURITIES
------------- ----------------------
TAIWAN (3.0%)
<S> <C> <C>
$184,000 Far East Department Stores, Limited, (144A), Convertible Bond, 3%,
due 07/06/02 204,700 *
511,000 United Microelectric Corp., Limited, (144A), Convertible Bond,
1.25%, due 08/06/04 1,098,650 *
------------
TOTAL CONVERTIBLE SECURITIES (Cost: $841,202) (3.0%) 1,303,350
------------
SHORT-TERM INVESTMENT (Cost: $418,633) (1.0%)
--------------------------------------------
<S> <C> <C>
418,633 Bank of New York Depositary Reserve, 4.6%, due 05/01/97 418,633
------------
TOTAL INVESTMENTS (Cost: $38,481,245) (99.0%) 42,939,053
EXCESS OF OTHER ASSETS OVER LIABILITIES (1.0%) 429,590
------------
NET ASSETS (100%) $ 43,368,643
============
</TABLE>
* Restricted security. (See Note 6)
See accompanying Notes to Financial Statements.
42
<PAGE>
TCW GALILEO FUNDS, INC.
TCW GALILEO EMERGING MARKETS FUND
April 30, 1997
<TABLE>
<CAPTION>
SCHEDULE OF INVESTMENTS (Unaudited)
- ----------------------------------
Number
of Shares EQUITY SECURITIES Value
- ------------- ----------------- ---------
COMMON STOCK
------------
ARGENTINA (5.2% of Net Assets)
<S> <C> <C>
8,279 Banco de Galicia y Buenos Aires, S.A. (ADR) $ 201,413
6,716 Banco Frances del Rio de la Plata, S.A. (ADR) 203,999
6,800 Capex, S.A., Series A 67,329
105,263 Compania Naviera Perez Companc S.A.C.F.I.M.F.A., Series B 853,802
3,100 Disco, S.A. (ADR) 96,100
38,339 IRSA Inversiones y Representaciones, S.A. 134,972
85,667 Molinos Rio de la Plata, S.A., Series B 319,583
119,600 Siderca, S.A., Series A 251,195
4,200 Telecom Argentina STET-France Telecom, S.A., Series B (ADR) 210,000
13,400 Telefonica de Argentina Sociedad Anonima, Series B (ADR) 445,550
17,336 Yacimientos Petroliferos Fiscales Sociedad del Estado, Series D (ADR) 478,907
-------------
TOTAL ARGENTINA (Cost: $2,497,320) 3,262,850
-------------
<CAPTION>
BRAZIL (2.5%)
<S> <C> <C>
1,654,373 CENTRAIS ELETRICAS BRASILEIRAS, S.A. (ELETROBRAS) 748,240
872,000 Light Participacoes, S.A. 277,958 **
4,800,000 Telecomunicacoes Brasileiras, S.A. (TELEBRAS) 516,784
165,883 Telecomunicacoes de Sao Paulo, S.A. (TELESP) 45,936
-------------
TOTAL BRAZIL (Cost: $847,873) 1,588,918
<CAPTION> -------------
CHILE (5.6%)
<S> <C> <C>
10,200 Banco BHIF (ADR) 204,000
11,600 Banco Santander Chile (ADR) 185,600
5,000 Chilgener, S.A. (ADR) 142,500
23,797 Compania de Telecomunicaciones de Chile, S.A., Series A (ADR) 770,428
10,260 Embotelladora Andina, S.A. (ADR) 201,353
12,160 Embotelladora Andina, S.A., Series B (ADR) 243,200
10,440 Enersis, S.A. (ADR) 328,860
9,441 Genesis Chile Fund, Limited 431,926
10,000 Madeco, S.A. (ADR) 273,750
4,550 Santa Isabel, S.A. (ADR) 110,906
5,080 Sociedad Quimica y Minera de Chile, S.A., Series B (ADR) 300,990
104,000 The Five Arrows Chile Investment Trust, Limited 335,400
-------------
TOTAL CHILE (Cost: $3,050,382) 3,528,913
-------------
<CAPTION>
COLOMBIA (2.1%)
<S> <C> <C>
13,900 Almacenes Exito, S.A. 44,516
29,146 Banco de Bogota 176,890
9,150 Banco Industrial Colombiano (ADS) 165,844
10,600 Cementos Diamante, S.A. (144A) (ADR) 168,275 *
29,300 Compania de Cemento Argos, S.A. 238,367
22,770 Compania Nacional de Chocolates, S.A. 201,975
12,900 Compania Suramericana de Seguros, S.A. 317,261
-------------
TOTAL COLOMBIA (Cost: $1,346,047) 1,313,128
-------------
</TABLE>
* Restricted security. (See Note 6)
** Non-income producing.
See accompanying Notes to Financial Statements.
43
<PAGE>
TCW GALILEO EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (Unaudited)(Continued)
- ---------------------------------------------
<TABLE>
<CAPTION>
Number of
Shares or
Warrants EQUITY SECURITIES Value
- ------------ ----------------- ------------
<S> <C> <C>
CZECH REPUBLIC (0.7%)
4,150 Komereni Banka (144A) (GDR) $ 107,900 *
968 SPT Telekom 102,197
970 Tabak A.S. 251,512
-------------
TOTAL CZECH REPUBLIC (Cost: $467,630) 461,609
-------------
EGYPT (COST: $358,125) (0.5%)
15,000 Commercial International Bank (144A) (GDR) 337,500 *
-------------
HONG KONG (3.0%)
32,000 Cheung Kong Holdings, Limited 280,879
191,000 China Merchants Hai Hong Holdings, Limited 204,631
282,000 Guangnan Holdings, Limited 405,868
666,000 Guangzhou Investment Co., Limited 315,931
121,000 Shanghai Industrial Holdings, Limited 680,977
-------------
TOTAL HONG KONG (Cost: $1,219,574) 1,888,286
-------------
HUNGARY (1.0%)
4,400 Borsodchem (144A) (GDR) 159,500 *
2,908 Egis 184,807
3,940 Gedeon Richter (144A) 292,348 *
-------------
TOTAL HUNGARY (Cost: $540,936) 636,655
-------------
INDIA (5.9%)
33,900 BSES, Limited (144A) (GDR) 788,175 *
18,500 Hindalco Industries, Limited (144A) (GDR) 592,000 *
16,000 Mahindra & Mahindra (144A) (GDR) 192,000 *
14,000 Ranbaxy Laboratories, Limited (144A) (GDR) 339,500 *
43,600 State Bank of India (144A) (GDR) 1,057,300 *
17,000 Tata Engineering & Locomotive (144A) (GDR) 204,000 *
27,500 Videsh Sanchar Nigam, Limited (144A) (GDR) 529,375 *
-------------
TOTAL INDIA (Cost: $2,836,661) 3,702,350
-------------
INDONESIA (4.7%)
1,631,026 PT Bank International Indonesia (Foreign Registered) 1,174,124
126,224 PT Bank International Indonesia (Foreign Registered),
Warrants, expire 01/17/00 40,240 **
140,000 PT Gudang Garam (Foreign Registered) 587,412
123,000 PT London Sumatra Indonesia (Foreign Registered) 318,758
204,000 PT Ramayana Lestari Sentosa (Foreign Registered) 495,105
242,000 PT Telekomunikasi Indonesia 350,905
-------------
TOTAL INDONESIA (Cost: $2,538,983) 2,966,544
-------------
IRELAND (COST: $275,000) (0.4%)
27,500 Central Asia Investment Co., Limited 240,625
-------------
</TABLE>
* Restricted security. (See Note 6)
** Non-income producing.
See accompanying Notes to Financial Statements.
44
<PAGE>
<TABLE>
<CAPTION>
TCW GALILEO FUNDS, INC.
April 30, 1997
Number of
Shares or
Warrants EQUITY SECURITIES Value
- ------------ ----------------- ----------
<C> <S> <C>
LATIN AMERICAN REGIONAL (Cost: $163,690) (0.4%)
8,220 Panamerican Beverages, Inc. (ADR) $ 238,380
-----------
MALAYSIA (11.9%)
136,000 Commerce Asset Holdings Berhad 812,425
253,000 DCB Holdings Berhad 821,167
38,000 Edaran Otomobil Berhad 358,662
126,000 Gadek Berhad 787,814
69,000 Gadek Berhad, Warrants, expire 12/19/00 164,875 **
423,000 Hicom Holdings Berhad 934,946
73,250 Hicom Holdings Berhad, Warrants, expire 12/18/00 74,096 **
379,000 Industrial Oxygen, Inc. Berhad 470,920
138,000 Kulim Berhad 277,539
388,000 Larut Consolidated Berhad 406,388
78,000 New Straits Times Press Berhad 434,887
199,000 Tenaga Nasional Berhad 919,315
146,000 United Engineers Malaysia Berhad 1,034,965
-----------
TOTAL MALAYSIA (Cost: $7,692,240) 7,497,999
-----------
MEXICO (10.9%)
117,683 Alfa, S.A. De C.V., Series A 645,244
40,600 Apasco, S.A.de C.V. 240,986
151,300 Cemex, S.A. de C.V., Series B 553,676
48,653 Cifra, S.A. de C.V., Series A 73,420
397,800 Cifra, S.A. de C.V., Series C 610,307
37,900 DESC, S.A. de C.V., Series B 247,837
12,200 Empresas ICA Sociedad Controladora, S.A. de C.V. (ADR) 181,475
10,500 Empresas La Moderna, S.A. de C.V. (ADR) 217,875
49,600 Fomento Economica Mexicano, S.A. de C.V., Series B 233,903
74,600 Grupo Carso, S.A. De C.V., Series A1 430,601 **
63,000 Grupo Cementos de Chihuahua, S.A. de C.V., Series B 60,687
82,891 Grupo Financiero Inbursa, S.A. de C.V., Series B 283,530
43,700 Grupo Industrial Bimbo, S.A. de C.V., Series A 274,774
33,900 Grupo Modelo, S.A. de C.V., Series C 205,480
11,960 Grupo Televisa, S.A. de C.V. (ADR) 276,575 **
42,200 Jugos del Valle, S.A. de C.V., Series B 65,062 **
163,500 Kimberly-Clark de Mexico, S.A. de C.V., Series A 606,546
32,145 Telefonos de Mexico, S.A. de C.V. (ADR) 1,325,981
19,150 Tubos de Acero de Mexico, S.A. de C.V. (ADR) 313,581 **
-----------
TOTAL MEXICO (Cost: $6,007,346) 6,847,540
-----------
PERU (3.1%)
115,602 Cementos Lima, S.A., Class T 212,312
245,731 Cerveceria Backus y Johnston, S.A., Class T 213,679
24,158 Compania de Minas Buenaventura, S. A. 226,821
4,600 Compania de Minas Buenaventura, S. A. (ADR) 100,050
4,936 Compania de Minas Buenaventura, S. A., Series B 53,467
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
45
<PAGE>
TCW GALILEO EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (Unaudited)(Continued)
- ---------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- -------------- ----------------- -----------
<S> <C> <C>
PERU (Continued)
16,156 Credicorp, Ltd. (ADR) $ 339,268
12,000 Telefonica del Peru, S.A. (ADR) 288,000
227,056 Telefonica del Peru, S.A., Class B 546,364
-----------
TOTAL PERU (Cost: $1,547,124) 1,979,961
-----------
PHILIPPINES (2.6%)
94,700 Bank of the Philippine Islands 509,564
1,318,000 HI Cement 439,500
63,300 Manila Electric Co. 393,376
1,393,000 Solid Group, Inc. 295,597
-----------
TOTAL PHILIPPINES (Cost: $1,865,780) 1,638,037
-----------
POLAND (3.4%)
13,491 Bank Rozwoju Eksportu, S.A. 321,925
1,580 International Trading & Investments Holdings, S.A. 308,100
45,343 Electrim Spolka Akcyjna, S.A. 406,998
90,905 Mostostal - Export, S.A. 376,377
16,623 Powszechne Swiadectwo Udzialowe 722,396
-----------
TOTAL POLAND (Cost: $2,279,330) 2,135,796
-----------
PORTUGAL (2.1%)
24,079 Corticeira Amorim 234,711
18,600 Espirito Santo Financial Holding, S.A. (ADR) 316,200
9,700 Portugal Telecom 357,286
15,650 Soares da Costa 124,649
8,800 Sonae Investments - Sociedade Gestora de Participacoes
Sociais, S.A. 289,218
-----------
TOTAL PORTUGAL (Cost: $1,276,206) 1,322,064
-----------
RUSSIA (3.0%)
13,406 AO Mosenergo Joint Stock Co. (144A)(ADR) 522,834 *
8,008 Lukoil Holdings (144A)(ADR) 453,453 *
8 Megionneftegaz (144A)(RDC) 424,800 *
13 Rostelecom (144A)(RDC) 492,700 *
-----------
TOTAL RUSSIA (Cost: $1,311,848) 1,893,787
-----------
SOUTH AFRICA (Cost: 100,840) (0.2%)
7,500 Johnnies Industrial Corp., Limited 100,770
-----------
</TABLE>
* Restricted security. (See Note 6)
See accompanying Notes to Financial Statements.
46
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1997
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- ----------------- ----------------- ------------
<S> <C> <C>
SOUTH KOREA (2.9%)
39,800 Korea Electric Power Corp. (New ADR) $ 676,600
38,000 Korea Exchange Bank 244,832
35,200 Pohang Iron & Steel Co., Limited (ADR) 849,200
670 Samsung Electronics Co., Limited 53,894
-----------
TOTAL SOUTH KOREA (Cost: $2,317,122) 1,824,526
-----------
TAIWAN (5.0%)
45,400 Acer, Inc., Limited 590,200
15,375 China Steel, Limited 357,469
100,600 ROC Taiwan Fund, Limited 1,295,225
58,900 The Taiwan Index Fund, Limited 898,225
-----------
TOTAL TAIWAN (Cost: $2,543,071) 3,141,119
-----------
TURKEY (1.2%)
1,856,000 Akcansa Cimento A.S. 242,861
1,431,257 Arcelik A.S. 171,455
457,000 Kordsa Kord Bezi Sanayi Ve Ticaret A.S. 168,448
3,712,121 Sasa Sun I Ve Senetik Ejyaf 164,193
-----------
TOTAL TURKEY (Cost: $816,229) 746,957
-----------
VENEZUELA (4.1%)
1,322,500 C.A. La Electricdad de Caracas, S.A.C.A. 1,432,548
37,550 Compania Anonima Nacional Telefonos de Venezuela 1,126,500 **
-----------
TOTAL VENEZUELA (Cost: $2,456,075) 2,559,048
-----------
VIETNAM (Cost: $343,850)(0.4%)
29,900 Lazard Vietnam Fund, Limited (Preference Shares) 284,050
-----------
TOTAL COMMON STOCK (Cost: $46,699,282)(82.8%) 52,137,412
-----------
PREFERRED STOCK
---------------
BRAZIL (14.6%)
33,488,282 Banco Bradesco, S.A. 277,101
456,500 Banco Itau, S.A. 246,815
270,000 Brasmotor, S.A. 64,739
906,289 CENTRAIS ELETRICAS BRASILEIRAS, S.A. (ELETROBRAS), Series B 422,679
523,677 Companhia Cervejaria Brahma 356,258
354,000 COMPANHIA DE TECIDOS NORTE DE MINAS (COTEMINAS) 148,457
10,325 COMPANHIA ENERGETICA DE MINAS GERIAS (CEMIG)(ADR) 467,852
6,700,000 Companhia Paranaense de Energia (COPEL), Series B 104,264 **
191,554 Compania Riograndense de Telecomunicacoes 252,073
22,058 Companhia Vale do Rio Doce 562,080
584,000 Itausa - Investimentos Itau, S.A. 494,217
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
47
<PAGE>
TCW GALILEO EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (Unaudited)(Continued)
- ----------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares PREFERRED STOCK Value
- --------------- ---------------- --------------
<S> <C> <C>
BRAZIL (Continued)
6,021,000 Petroleo Brasileiro, S.A. (PETROBRAS) $ 1,265,344
20,467,492 Telecomunicacoes Brasileiras, S.A. (TELEBRAS) 2,347,748
11,680 Telecomunicacoes Brasileiras, S.A. (TELEBRAS) (ADR) 1,340,280
1,751,700 Telecomunicacoes de Sao Paulo, S.A. (TELESP) 497,427
273,000,000 Usinas Siderurgicas de Minas Gerais, S.A. (USIMINAS) 323,441
-----------
TOTAL PREFERRED STOCK (Cost: $5,535,329) 9,170,775
-----------
TOTAL EQUITY SECURITIES (Cost: $52,234,611)(97.4%) 61,308,187
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount CONVERTIBLE SECURITIES
-------------- ----------------------
<S> <C> <C>
PHILIPPINES (Cost: $341,000) (0.4%)
$350,000 Bacnotan Consolidated Industries Inc., Convertible Bond, 5.5%,
due 06/21/04 259,000
-----------
TAIWAN (Cost: $226,625)(0.6%)
265,000 United Microelectric Corp., Limited, (144A), Convertible Bond,
1.25%, due 08/06/04 376,250 *
-----------
TOTAL CONVERTIBLE SECURITIES (Cost: $567,625) (1.0%) 635,250
-----------
SHORT-TERM INVESTMENT (Cost: $477,277)(0.8%)
--------------------------------------------
477,277 Bank of New York Depositary Reserve, 4.6%, due 05/01/97 477,277
-----------
TOTAL INVESTMENTS (Cost: $53,279,513)(99.2%) 62,420,714
EXCESS OF OTHER ASSETS OVER LIABILITIES (0.8%) 516,611
-----------
NET ASSETS (100%) $62,937,325
===========
</TABLE>
* Restricted security. (See Note 6)
See accompanying Notes to Financial Statements.
48
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo Latin America Equity Fund
April 30, 1997
SCHEDULE OF INVESTMENTS (Unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- ------------- ----------------- ------------
<S> <C> <C>
COMMON STOCK
ARGENTINA (11.0% of Net Assets)
194,300 Astra Compania Argentina de Petroleo, S.A. $ 336,186
19,826 Banco Frances del Rio de la Plata, S.A. (ADR) 602,215
19,297 Banco de Galicia y Buenos Aires, S.A. (ADR) 469,460
24,400 Capex, S.A. Class A 241,594
369,088 Compania Naviera Perez Companc, S.A.C.I.F.M.F.A., Series B 2,993,723
16,600 Disco, S.A. (ADR) 514,600
54,803 IRSA Inversiones Y Representaciones, S.A. 192,934
131,316 Molinos Rio de la Plata, S.A., Series B 489,877
303,600 Siderca, S.A., Series A 637,649
19,400 Telecom Argentina STET - France Telecom, S.A., Series B 96,042
5,225 Telecom Argentina STET - France Telecom, S.A., Series B (ADR 261,250
23,540 Telefonica de Argentina, Sociedad Anonima, Series B (ADR) 782,705
52,870 Yacimientos Petroliferos Fiscales Sociedad
del Estado, Series D (ADR) 1,460,534
-----------
TOTAL ARGENTINA (Cost: $6,377,999) 9,078,769
-----------
BRAZIL (3.1%)
3,035,033 CENTRAIS ELETRICAS BRASILEIRAS, S.A. (ELETROBRAS) 1,372,685
2,057,900 Light Participacoes, S.A. 655,974 **
5,200,000 Telecomunicacoes Brasileiras, S.A. (TELEBRAS) 559,850
-----------
TOTAL BRAZIL (Cost: $1,580,037) 2,588,509
-----------
CHILE (10.0%)
12,960 Banco BHIF (ADR) 259,200
24,200 Banco Santander Chile (ADR) 387,200
11,240 Chilgener, S.A. (ADR) 320,340
26,700 Compania de Telecomunicaciones de Chile, S.A., Series A (ADR) 864,413
30,500 Embotelladora Andina, S.A. (ADR) 610,000
30,500 Embotelladora Andina, S.A., Series B (ADR) 598,563
24,962 Enersis, S.A. (ADR) 786,303
20,587 Genesis Chile Fund, Limited 941,855
24,700 Madeco, S.A. (ADR) 676,163
22,275 Santa Isabel, S.A. (ADR) 542,953
12,370 Sociedad Quimica Y Minera de Chile, S.A., Series B (ADR) 732,923
458,000 The Five Arrows Chile Investment Trust, Limited 1,477,048
-----------
TOTAL CHILE (Cost: $7,328,985) 8,196,961
-----------
COLOMBIA (3.1%)
48,000 Almacenes Exito, S.A. 483,014
79,585 Banco de Bogota 305,769
16,870 Banco Industrial Colombiano (ADS) 300,038
18,900 Cementos Diamante, S.A. (144A) (ADS) 325,644 *
</TABLE>
* Restricted security. (See Note 6)
** Non-income producing.
See accompanying Notes to Financial Statements.
49
<PAGE>
TCW Galileo Latin America Equity Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- ----------- ----------------- ------------------
<S> <C> <C>
COLOMBIA (Continued)
40,028 Compania de Cemento Argos, S.A. $ 362,419
40,858 Compania Nacional de Chocolates, S.A. 153,725
26,800 Compania Suramericana de Seguros, S.A. 659,115
-------------
TOTAL COLOMBIA (Cost: $2,791,660) 2,589,724
-------------
MEXICO (27.0%)
98,500 Apasco, S.A. de C.V. 584,658
489,500 Cemex, S.A. de C.V., Series B 1,791,304
142,321 Cifra, S.A. de C.V., Series A 214,770
1,163,640 Cifra, S.A. de C.V., Series C 1,785,263
51,030 Corporacion Geo, S.A. de C.V., Series B 237,438 **
13,290 Corporacion Industrial San Luis, S.A. de C.V. 76,712
125,900 DESC, S.A. de C.V., Series B 823,290
38,200 Empresas ICA Sociedad Controladora, S.A. de C.V. (ADR) 568,225
39,100 Empresas La Moderna, S.A. de C.V. (ADR) 811,325
126,900 Fomento Economico Mexicano, S.A. de C.V., Series B 598,434
277,000 Grupo Carso, S.A. de C.V., Series A1 1,598,881 **
144,100 Grupo Cementos de Chihuahua, S.A. de C.V., Series B 138,809
266,239 Grupo Financiero Inbursa, S.A. de C.V., Series B 910,677
386,990 Alfa, S.A. de C.V., Series A 2,121,825
126,100 Grupo Industrial Bimbo, S.A. de C.V., Series A 792,882
9,858 Grupo Industrial Maseca, S.A. de C.V. (ADR) 145,406
93,000 Grupo Modelo, S.A. de C.V., Series C 563,707
39,540 Grupo Televisa, S.A. de C.V. (ADR) 914,363 **
134,700 Jugos Del Valle, S.A. de C.V., Series B 207,674 **
529,500 Kimberly-Clark de Mexico, S.A. de C.V., Series A 1,964,317
104,045 Telefonos de Mexico, S.A. de C.V. (ADR) 4,291,856
66,182 Tubos de Acero de Mexico, S.A. de C.V. (ADR) 1,083,730 **
-------------
TOTAL MEXICO (Cost: $18,459,013) 22,225,546
-------------
LATIN AMERICA REGIONAL (Cost: $677,848) (1.1%)
29,700 Panamerican Beverages, Inc. (ADR) 861,300
-------------
PERU (4.7%)
263,000 Cementos Lima, S.A., Class T 483,021
426,449 Cerveceria Backus y Johnston, S.A., Class T 370,825
46,646 Compania de Minas Buenaventura, S.A. 437,962
11,400 Compania de Minas Buenaventura, S.A. (ADR) 247,950
11,661 Compania de Minas Buenaventura, S.A., Series B 126,313
503,153 Telefonica del Peru, S.A., Series B 787,878
37,518 Credicorp, Ltd. (ADR) 1,210,735
9,100 Telefonica del Peru, S.A., (ADR) 218,400
-------------
TOTAL PERU (Cost: $2,990,848) 3,883,084
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
50
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1997
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- ----------------- ----------------- ------------
<S> <C> <C>
VENEZUELA (3.0%)
1,136,855 C.A. La Eletricidad de Caracas, S.A.C.A. $ 1,231,455
22,850 Compania Anonima Nacional Telefonos de Venezuela 685,500 **
42,700 Mavesa (ADR) 293,563
80,800 Siderurgica Venezolana Sivensa, Saica S.A.C.A. (ADR) 238,360
2,509 Siderurgica Venezolana Sivensa, Saica S.A.C.A., Series B (144A) (ADR) 6,900 * **
-------------
TOTAL VENEZUELA (Cost: $ 2,111,671) 2,455,778
-------------
TOTAL COMMON STOCK (Cost: $42,318,061) (63.0%) 51,879,671
-------------
PREFERRED STOCK
---------------
BRAZIL (34.5%)
102,631,638 Banco Bradesco, S.A. 849,232
1,203,700 Banco Itau, S.A. 650,802
1,707,000 Brasmotor, S.A. 409,295
4,094,180 CENTRAIS ELECTRICAS BRASILEIRAS, S.A. (ELETROBRAS), Series B 1,909,462
2,363,784 Companhia Cervejaria Brahma 1,608,084
1,721,000 Companhia Cimento Portland Itau 606,841
827,400 Companhia de Tecidos Norte de Minas, S.A. (COTEMINAS) 346,987
10,237 COMPANHIA ENERGETICA DE MINAS GERAIS (CEMIG) (144A) (ADR) 463,864 *
25,500 COMPANHIA ENERGETICA DE MINAS GERAIS (CEMIG) (ADR) 1,155,469
15,800,000 Companhia Paranaense de Energia (COPEL), Series B 245,877 **
72,842 Companhia Vale do Rio Doce 1,856,153
325,000 Dixie Toga 244,476
244,000 Industrias Klabin de Papel e Celulose, S.A. 252,374
1,308,000 Itausa - Investimentos Itau, S.A. 1,106,911
15,588,000 Petroleo Brasiliero, S.A. (PETROBRAS) 3,275,898
46,185,257 Telecomunicacoes Brasileiras, S.A. (TELEBRAS) 5,297,733
53,625 Telecomunicacoes Brasileiras, S.A. (TELEBRAS) (ADR) 6,153,469
5,803,800 Telecomunicacoes de Sao Paulo, S.A. (TELESP) 1,648,094
72,000,000 Usinas Siderurgicas de Minas Gerais, S.A. (USIMINAS) 322,257
-------------
TOTAL PREFERRED STOCK (Cost: $16,489,865) 28,403,278
-------------
TOTAL EQUITY SECURITIES (Cost: $58,807,926) (97.5%) 80,282,949
-------------
Principal
Amount SHORT-TERM INVESTMENT (Cost: $1,668,403) (2.0%)
------------- ----------------------------------------------
$1,668,403 Bank of New York Depositary Reserve, 4.6%, due 05/01/97 1,668,403
TOTAL INVESTMENTS (Cost: $60,476,329) (99.5%) 81,951,352
EXCESS OF OTHER ASSETS OVER LIABILITIES (0.5%) 393,761
-------------
NET ASSETS (100%) $82,345,113
=============
</TABLE>
* Restricted security. (See Note 6)
** Non-income producing.
See accompanying Notes to Financial Statements.
51
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES (Unaudited)
<TABLE>
<CAPTION>
TCW GALILEO TCW GALILEO
MONEY MARKET CORE FIXED
FUND INCOME FUND
------------ -----------
<S> <C> <C>
ASSETS
Investments, at Value (1) $ 282,648 $ 21,185
Receivables for Fund Shares Sold - -
Receivables for Securities Sold - -
Accrued Interest and Dividends Receivable 1,110 304
Deferred Organization Costs - 8
------------ -----------
Total Assets 283,758 21,497
------------ -----------
LIABILITIES
Payable for Fund Shares Redeemed - -
Distributions Payable 1,147 103
Payable for Securities Purchased - -
Management Fees and Other Accrued Expenses 125 43
------------ -----------
Total Liabilities 1,272 146
------------ -----------
NET ASSETS $ 282,486 $ 21,351
============ ===========
NET ASSETS CONSIST OF:
Paid-in Capital $ 282,486 $ 24,167
Undistributed (Overdistributed) Net Realized
Gain (Loss) on Investments
and Foreign Currency Transactions - (3,379)
Unrealized Appreciation (Depreciation) on Investments
and Foreign Currency Translations - (42)
Undistributed (Overdistributed) Net Investment Income (Loss) - 605
------------ -----------
NET ASSETS $ 282,486 $ 21,351
============ ===========
CAPITAL SHARES OUTSTANDING 282,485,908 2,292,366
============ ===========
NET ASSET VALUE PER SHARE $1.00 $9.31
============ ===========
</TABLE>
(1) The identified cost for the TCW Galileo Money Market Fund, the TCW Galileo
Core Fixed Income Fund, the TCW Galileo High Yield Bond Fund, the TCW
Galileo Mortgage Backed Securities Fund, the TCW Galileo Long-Term Mortgage
Backed Securities Fund and the TCW Convertible Securities Fund at April 30,
1997, was $282,648, $21,227, $203,197, $42,876, $111,374 and $25,578,
respectively.
See accompanying Notes to Financial Statements.
52
<PAGE>
TCW GALILEO FUNDS, INC.
Dollar Amounts in Thousands
(Except per Share Amounts)
April 30, 1997
<TABLE>
<CAPTION>
TCW Galileo TCW Galileo TCW Galileo Long-Term TCW Galileo
High Yield Mortgage Backed Mortgage Backed Convertible
Bond Fund Securities Fund Securities Fund Securities Fund
- ----------- --------------- --------------------- ---------------
<S> <C> <C> <C>
$ 207,165 $ 41,448 $ 110,750 $ 26,286
278 - - 1,484
- 144 187 -
5,781 361 762 258
8 8 11 -
- ----------- ---------- ----------- ----------
213,232 41,961 111,710 28,028
- ----------- ---------- ----------- ----------
287 - - -
1,549 216 617 -
1,027 - - 819
215 64 100 46
- ----------- ---------- ----------- ----------
3,078 280 717 865
- ----------- ---------- ----------- ----------
$ 210,154 $ 41,681 $ 110,993 $ 27,163
=========== ========== =========== ==========
$ 208,107 $ 49,863 $ 111,473 $ 25,955
(2,094) (5,552) (125) 134
3,968 (1,428) (624) 708
173 (1,202) 269 366
- ----------- ---------- ----------- ----------
$ 210,154 $ 41,681 $ 110,993 $ 27,163
=========== ========== =========== ==========
21,370,994 4,316,330 11,754,851 2,784,156
=========== ========== =========== ==========
$ 9.83 $ 9.66 $ 9.44 $ 9.76
=========== ========== =========== ==========
</TABLE>
53
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES (Unaudited) (Continued)
<TABLE>
<CAPTION>
TCW TCW Galileo
Galileo Core Earnings Momentum
Equity Fund Fund
------------ -----------------
<S> <C> <C>
ASSETS
Investments, at Value (1) $ 220,197 $ 70,147
Receivable for Fund Shares Sold - -
Receivables for Securities Sold - 94
Accrued Interest and Dividends Receivable 204 16
Deferred Organization Costs 8 2
----------- ----------
Total Assets 220,409 70,259
----------- ----------
LIABILITIES
Payables for Fund Shares Redeemed 96 1,341
Payables for Securities Purchased - 133
Management Fees and Other Accrued Expenses 172 96
----------- ----------
Total Liabilities 268 1,570
----------- ----------
NET ASSETS $ 220,141 $ 68,689
=========== ==========
NET ASSETS CONSIST OF:
Paid-in Capital $ 145,173 $ 68,916
Undistributed (Overdistributed) Net Realized Gain (Loss)
on Investments and Foreign Currency Transactions 12,425 1,564
Unrealized Appreciation (Depreciation) on Investments
and Foreign Currency Translations 62,388 (662)
Undistributed (Overdistributed) Net Investment Income (Loss) 155 (1,129)
----------- ----------
NET ASSETS $ 220,141 $ 68,689
=========== ==========
CAPITAL SHARES OUTSTANDING 13,151,324 6,860,204
=========== ==========
NET ASSET VALUE PER SHARE $ 16.74 $ 10.01
=========== ==========
</TABLE>
(1) The identified cost for the TCW Galileo Core Equity Fund, the TCW Galileo
Earnings Momentum Fund, the TCW Galileo Mid-Cap Growth Fund, the TCW
Galileo Small Cap Growth Fund, the TCW Galileo Asia Pacific Equity Fund,
the TCW Galileo Emerging Markets Fund and the TCW Galileo Latin America
Equity Fund at April 30, 1997 was $157,809, $70,809, $79,272, $87,523,
$38,481, $53,280 and $60,476, respectively.
See accompanying Notes to Financial Statements.
54
<PAGE>
TCW GALILEO FUNDS, INC.
Dollar Amounts in Thousands
(Except per Share Amounts)
April 30, 1997
<TABLE>
<CAPTION>
TCW Galileo TCW Galileo TCW Galileo TCW Galileo TCW Galileo
Mid-Cap Small Cap Asia Pacific Emerging Markets Latin America
Growth Fund Growth Fund Equity Fund Fund Equity Fund
- ----------- ----------- ------------ ---------------- -------------
<S> <C> <C> <C> <C>
$ 85,775 $ 104,387 $ 42,939 $ 62,421 $ 81,951
- - - - 117
- 661 423 545 -
37 20 104 204 421
2 4 4 4 8
- ----------- ---------- ---------- ---------- ----------
85,814 105,072 43,470 63,174 82,497
- ----------- ---------- ---------- ---------- ----------
150 3 - - -
839 548 - 101 -
105 130 101 136 152
- ----------- ---------- ---------- ---------- ----------
1,094 681 101 237 152
- ----------- ---------- ---------- ---------- ----------
$ 84,720 $ 104,391 $ 43,369 $ 62,937 $ 82,345
=========== ========== ========== ========== ==========
$ 90,347 $ 89,785 $ 34,748 $ 61,025 $ 88,499
(11,434) (419) 3,882 (7,606) (28,546)
6,503 16,864 4,458 9,141 21,475
(696) (1,839) 281 377 917
- ----------- ---------- ---------- ---------- ----------
$ 84,720 $ 104,391 $ 43,369 $ 62,937 $ 82,345
=========== ========== ========== ========== ==========
11,686,769 7,738,423 4,318,061 6,742,056 6,570,959
=========== ========== ========== ========== ==========
$ 7.25 $ 13.49 $ 10.04 $ 9.34 $ 12.53
=========== ========== ========== ========== ==========
</TABLE>
55
<PAGE>
STATEMENTS OF OPERATIONS (Unaudited)
- ------------------------------------
<TABLE>
<CAPTION>
TCW Galileo TCW Galileo
Money Market Core Fixed
Fund Income Fund
------------ -----------
<S> <C> <C>
INVESTMENT INCOME
Income:
Dividends $ - $ -
Interest 6,275 892
------- ------
Total 6,275 892
------- ------
Expenses:
Management Fees 286 45
Custodian Fees 18 3
Registration Fees 9 5
Transfer Agent Fees 18 15
Directors' Fees and Expenses 5 5
Audit and Tax Fees 8 8
Accounting Service Fees 115 17
Amortization of Deferred Organization Costs - 5
Other 7 5
------- ------
Total Expenses 466 108
Less Expenses Borne by Investment Adviser 8 -
------- ------
Net Expenses 458 108
------- ------
Net Investment Income 5,817 784
------- ------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net Realized Gain (Loss) on Investments During the Period - 79
Change in Unrealized Appreciation (Depreciation)
on Investments During the Period - (445)
------- ------
Net Realized and Unrealized Gain (Loss) on Investments
During the Period - (366)
------- ------
Increase in Net Assets Resulting from
Operations $ 5,817 $ 418
======= ======
</TABLE>
See accompanying Notes to Financial Statements.
56
<PAGE>
TCW GALILEO FUNDS, INC.
Dollar Amounts in Thousands
Six Months Ended April 30, 1997
<TABLE>
<CAPTION>
TCW Galileo TCW Galileo TCW Galileo Long-Term TCW Galileo
High Yield Mortgage Backed Mortgage Backed Convertible
Bond Fund Securities Fund Securities Fund Securities Fund (1)
- ----------- --------------- ---------------------- -------------------
<S> <C> <C> <C>
$ - $ - $ - $ 119
10,472 1,634 4,631 590
- -------- ------- ------- -------
10,472 1,634 4,631 709
- -------- ------- ------- -------
790 118 282 73
9 4 6 5
7 5 4 7
21 15 19 6
5 5 5 3
8 11 12 7
18 17 17 12
5 5 5 -
21 8 11 3
- -------- ------- ------- -------
884 188 361 116
- - - 23
- -------- ------- ------- -------
884 188 361 93
- -------- ------- ------- -------
9,588 1,446 4,270 616
- -------- ------- ------- -------
591 (175) (29) 134
232 155 (1,892) 708
- -------- ------- ------- -------
823 (20) (1,921) 842
- -------- ------- ------- -------
$ 10,411 $ 1,426 $ 2,349 $ 1,458
======== ======= ======= =======
</TABLE>
(1) For the period January 2, 1997 (commencement of operations) through April
30, 1997.
57
<PAGE>
STATEMENTS OF OPERATIONS (Unaudited) (Continued)
- ------------------------------------------------
<TABLE>
<CAPTION>
TCW TCW Galileo
Galileo Core Earnings Momentum
Equity Fund Fund
------------ -----------------
<S> <C> <C>
INVESTMENT INCOME
Income:
Dividends $ 1,102 $ 38
Interest 21 39
-------- ---------
Total 1,123 77
-------- ---------
Expenses:
Management Fees 861 360
Custodian Fees 14 11
Registration Fees 10 6
Transfer Agent Fees 21 16
Directors' Fees and Expenses 5 5
Audit and Tax Fees 8 8
Accounting Service Fees 18 17
Amortization of Deferred Organization Costs 5 -
Other 10 7
-------- ---------
Total Expenses 952 430
Less Expenses Borne by Investment Adviser - -
-------- ---------
Net Expenses 952 430
-------- ---------
Net Investment Income (Loss) 171 (353)
-------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCY
Net Realized Gain (Loss) on Investments and
Foreign Currency Transactions During the Period 12,428 671
Change in Unrealized Appreciation (Depreciation) on
Investments and Foreign Currency Translations
During the Period 2,218 (12,253)
-------- ---------
Net Realized and Unrealized Gain (Loss) on Investments
and Foreign Currency During the Period 14,646 (11,582)
-------- ---------
INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ 14,817 $ (11,935)
======== =========
</TABLE>
See accompanying Notes to Financial Statements.
58
<PAGE>
TCW GALILEO FUNDS, INC.
Dollar Amounts in Thousands
Six Months Ended April 30, 1997
<TABLE>
<CAPTION>
TCW Galileo TCW Galileo TCW Galileo TCW Galileo TCW Galileo
Mid-Cap Small Cap Asia Pacific Emerging Markets Latin America
Growth Fund Growth Fund Equity Fund Fund Equity Fund
- ----------- ----------- ------------ ---------------- -------------
<S> <C> <C> <C> <C>
$ 98 $ 82 $ 281 (1) $ 67 (1) $ 1,040 (1)
19 112 20 481 39
- --------- --------- ------- ------- --------
117 194 301 548 1,079
- --------- --------- ------- ------- --------
479 613 245 318 373
6 11 54 80 86
4 5 4 4 4
18 20 13 13 16
5 5 5 5 5
8 8 8 8 8
17 17 17 17 17
- 1 - 1 5
6 11 6 5 5
- --------- --------- ------- ------- --------
543 691 352 451 519
1 - - - -
- --------- --------- ------- ------- --------
542 691 352 451 519
- --------- --------- ------- ------- --------
(425) (497) (51) 97 560
- --------- --------- ------- ------- --------
(8,785) (1,742) 4,004 1,916 2,988
(13,423) (26,842) (1,563) 6,369 13,877
- --------- --------- ------- ------- --------
(22,208) (28,584) 2,441 8,285 16,865
- --------- --------- ------- ------- --------
$ (22,633) $ (29,081) $ 2,390 $ 8,382 $ 17,425
========= ========= ======= ======= ========
</TABLE>
(1) Net of foreign taxes withheld of $19, $27 and $36 for TCW Galileo Asia
Pacific Equity Fund, TCW Galileo Emerging Markets Fund and TCW Galileo
Latin America Equity Fund, respectively.
59
<PAGE>
TCW Galileo Money Market Fund
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
---------------- ----------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 5,817 $ 9,174
--------- ----------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (5,817) (9,174)
--------- ----------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(619,082,680 shares in 1997 and 1,034,355,297 shares in 1996) 619,083 1,034,355
Proceeds from Shares Issued upon Reinvestment of Dividends
(2,892,548 shares in 1997 and 4,792,741 shares in 1996) 2,892 4,793
Cost of Shares Redeemed
(573,160,423 shares in 1997 and 891,779,229 shares in 1996) (573,160) (891,779)
--------- ----------
Increase in Net Assets Resulting from Capital
Share Transactions 48,815 147,369
--------- ----------
Increase in Net Assets 48,815 147,369
NET ASSETS
Beginning of Period 233,671 86,302
--------- ----------
End of Period $ 282,486 $ 233,671
========= ==========
</TABLE>
60
<PAGE>
TCW GALILEO FUNDS, INC.
TCW GALILEO CORE FIXED INCOME FUND
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
---------------- ----------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 784 $ 1,859
Net Realized Gain on Investments 79 165
Change in Unrealized (Depreciation) on
Investments (445) (887)
------- --------
Increase in Net Assets Resulting from Operations 418 1,137
------- --------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (771) (1,844)
------- --------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(379,149 shares in 1997 and 1,277,842 shares in 1996) 3,568 12,275
Proceeds from Shares Issued upon Reinvestment of Dividends
(79,833 shares in 1997 and 169,477 shares in 1996) 751 1,595
Cost of Shares Redeemed
(813,872 shares in 1997 and 2,570,171 shares in 1996) (7,621) (24,393)
------- --------
(Decrease) in Net Assets Resulting from
Capital Share Transactions (3,302) (10,523)
------- --------
(Decrease) in Net Assets (3,655) (11,230)
NET ASSETS
Beginning of Period 25,006 36,236
------- --------
End of Period $21,351 $ 25,006
======= ========
</TABLE>
See accompanying Notes to Financial Statements.
61
<PAGE>
TCW GALILEO HIGH YIELD BOND FUND
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
---------------- ----------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 9,588 $11,400
Net Realized Gain (Loss) on Investments 591 (1,228)
Change in Unrealized Appreciation
on Investments 232 2,582
-------- --------
Increase in Net Assets Resulting from Operations 10,411 12,754
-------- --------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (9,523) (11,413)
-------- --------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(6,193,214 shares in 1997 and 13,695,295 shares in 1996) 61,380 132,706
Proceeds from Shares Issued upon Reinvestment of Dividends
(829,779 shares in 1997 and 795,733 shares in 1996) 8,194 7,704
Cost of Shares Redeemed
(4,457,504 shares in 1997 and 5,199,280 shares in 1996) (44,123) (50,588)
-------- --------
Increase in Net Assets Resulting from
Capital Share Transactions 25,451 89,822
-------- --------
Increase in Net Assets 26,339 91,163
NET ASSETS
Beginning of Period 183,815 92,652
-------- --------
End of Period $210,154 $183,815
======== ========
</TABLE>
See accompanying Notes to Financial Statements.
62
<PAGE>
TCW GALILEO FUNDS, INC.
TCW GALILEO MORTGAGE BACKED SECURITIES FUND
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
---------------- ----------------
<S> <C> <C>
OPERATIONS
Net Investment Income $1,446 $3,959
Net Realized (Loss) on Investments (175) (861)
Change in Unrealized Appreciation
on Investments 155 2,487
-------- --------
Increase in Net Assets Resulting from Operations 1,426 5,585
-------- --------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (287) (3,794)
Distributions in Excess of Net Investment Income (1,202) (1,159)
-------- --------
Total Distributions to Shareholders ( 1,489) (4,953)
-------- --------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(724,416 shares in 1997 and 5,564,984 shares in 1996) 7,027 53,480
Proceeds from Shares Issued upon Reinvestment of Dividends
(154,380 shares in 1997 and 453,325 shares in 1996) 1,490 4,350
Cost of Shares Redeemed
(2,960,233 shares in 1997 and 8,115,490 shares in 1996) (28,608) (77,993)
-------- --------
(Decrease) in Net Assets Resulting from
Capital Share Transactions (20,091) (20,163)
-------- --------
(Decrease) in Net Assets (20,154) (19,531)
NET ASSETS
Beginning of Period 61,835 81,366
-------- --------
End of Period $ 41,681 $ 61,835
======== ========
</TABLE>
See accompanying Notes to Financial Statements.
63
<PAGE>
TCW GALILEO LONG-TERM MORTGAGE BACKED SECURITIES FUND
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
APRIL 30, 1997 Year Ended
(UNAUDITED) October 31, 1996
---------------- ----------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 4,270 $ 5,912
Net Realized Gain (Loss) on Investments (29) 466
Change in Unrealized Appreciation (Depreciation)
on Investments (1,892) 827
-------- --------
Increase in Net Assets Resulting from Operations 2,349 7,205
-------- --------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (3,789) (5,934)
Distributions in Excess of Net Investment Income - (212)
-------- --------
Total Distributions to Shareholders (3,789) (6,146)
-------- --------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(453,986 shares in 1997 and 5,357,272 shares in 1996) 4,347 50,184
Proceeds from Shares Issued upon Reinvestment of Dividends
(392,654 shares in 1997 and 570,644 shares in 1996) 3,742 5,384
Cost of Shares Redeemed
(832,380 shares in 1997 and 2,572,042 shares in 1996) (7,916) (24,526)
-------- --------
Increase in Net Assets Resulting from
Capital Share Transactions 173 31,042
-------- --------
Increase (Decrease) in Net Assets (1,267) 32,101
NET ASSETS
Beginning of Period 112,260 80,159
-------- --------
End of Period $110,993 $112,260
======== ========
</TABLE>
See accompanying Notes to Financial Statements.
64
<PAGE>
TCW GALILEO FUNDS, INC.
TCW GALILEO CONVERTIBLE SECURITIES FUND
Dollar Amounts in Thousands
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS January 2, 1997
- ---------------------------------- (Commencement of
Operations) through
April 30, 1997
(Unaudited)
-------------------
<S> <C>
OPERATIONS
Net Investment Income $ 616
Net Realized Gain on Investments 134
Change in Unrealized Appreciation 708
-------
Increase in Net Assets Resulting from Operations 1,458
-------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (250)
-------
CAPITAL SHARE TRANSACTIONS
Shares Issued Upon Exchange of Limited Partnership
Interests (2,485,514 shares) (Note 1) 22,997
Proceeds from Shares Sold (688,570 shares) 6,872
Proceeds from Shares Issued upon Reinvestment of Dividends
(20,103 shares) 195
Cost of Shares Redeemed (410,031 shares) (4,109)
-------
Increase in Net Assets Resulting from
Capital Share Transactions 25,955
-------
Increase in Net Assets 27,163
NET ASSETS
Beginning of Period -
-------
End of Period $27,163
=======
</TABLE>
65
<PAGE>
TCW GALILEO CORE EQUITY FUND
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
APRIL 30, 1997 Year Ended
(UNAUDITED) October 31, 1996
---------------- ----------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 171 $ 379
Net Realized Gain on Investments 12,428 11,808
Change in Unrealized Appreciation on Investments 2,218 19,564
-------- --------
Increase in Net Assets Resulting from Operations 14,817 31,751
-------- --------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (291) (722)
Distributions from Net Realized Gains (2,817) -
-------- --------
Total Distributions to Shareholders (3,108) (722)
-------- --------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(602,937 shares in 1997 and 3,809,396 shares in 1996) 9,960 57,075
Proceeds from Shares Issued upon Reinvestment of Dividends
(178,643 shares in 1997 and 39,376 shares in 1996) 2,971 539
Cost of Shares Redeemed
(2,146,746 shares in 1997 and 3,778,090 shares in 1996) (35,801) (55,062)
-------- --------
Increase (Decrease) in Net Assets Resulting from
Capital Share Transactions (22,870) 2,552
-------- --------
Increase (Decrease) in Net Assets (11,161) 33,581
NET ASSETS
Beginning of Period 231,302 197,721
-------- --------
End of Period $220,141 $231,302
======== ========
</TABLE>
See accompanying Notes to Financial Statements.
66
<PAGE>
TCW GALILEO FUNDS, INC.
TCW GALILEO EARNINGS MOMENTUM FUND
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
APRIL 30, 1997 Year Ended
(UNAUDITED) October 31, 1996
---------------- ----------------
<S> <C> <C>
OPERATIONS
Net Investment (Loss) $ (353) $ (608)
Net Realized Gain on Investments 671 6,438
Change in Unrealized Appreciation (Depreciation)
on Investments (12,253) 2,416
-------- --------
Increase (Decrease) in Net Assets Resulting from Operations (11,935) 8,246
-------- --------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions From Net Realized Gains (5,544) (369)
-------- --------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(1,481,243 shares in 1997 and 1,440,632 shares in 1996) 15,202 19,079
Proceeds from Shares Issued upon
Reinvestment of Dividends
(437,177 shares in 1997 and 26,564 shares in 1996) 5,202 357
Cost of Shares Redeemed
(1,052,184 shares in 1997 and 1,002,762 shares in 1996) (12,230) (12,730)
-------- --------
Increase in Net Assets Resulting from
Capital Share Transactions 8,174 6,706
-------- --------
Increase (Decrease) in Net Assets (9,305) 14,583
NET ASSETS
Beginning of Period 77,994 63,411
-------- --------
End of Period $ 68,689 $ 77,994
======== ========
</TABLE>
See accompanying Notes to Financial Statements.
67
<PAGE>
TCW GALILEO MID-CAP GROWTH FUND
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<TABLE>
<CAPTION>
June 3, 1996
SIX MONTHS ENDED (Commencement of
APRIL 30, 1997 Operations) through
(UNAUDITED) October 31, 1996
---------------- -------------------
<S> <C> <C>
OPERATIONS
Net Investment (Loss) $ (425) $ (271)
Net Realized (Loss) on Investments (8,785) (2,649)
Change in Unrealized (Depreciation) on Investments (13,423) (2,861)
-------- -------
(Decrease) in Net Assets Resulting from Operations (22,633) (5,781)
-------- -------
CAPITAL SHARE TRANSACTIONS
Shares Issued upon Exchange of Limited Partnership
Interests (6,603,028 shares) (Note 1) - 66,030
Proceeds from Shares Sold (2,904,322 shares in 1997 and
3,972,481 shares in 1996) 24,544 36,973
Cost of Shares Redeemed (1,277,934 shares in 1997 and
515,128 shares in 1996) (9,621) (4,792)
-------- -------
Increase in Net Assets Resulting from
Capital Share Transactions 14,923 98,211
-------- -------
Increase (Decrease) in Net Assets (7,710) 92,430
NET ASSETS
Beginning of Period 92,430 -
-------- -------
End of Period $ 84,720 $92,430
======== =======
</TABLE>
See accompanying Notes to Financial Statements.
68
<PAGE>
TCW GALILEO FUNDS, INC.
TCW GALILEO SMALL CAP GROWTH FUND
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
APRIL 30, 1997 Year Ended
(UNAUDITED) October 31, 1996
---------------- -------------------
<S> <C> <C>
OPERATIONS
Net Investment (Loss) $ (497) $ (839)
Net Realized Gain (Loss) on Investments (1,742) 1,368
Change in Unrealized Appreciation (Depreciation)
on Investments (26,842) 22,379
-------- --------
Increase (Decrease) in Net Assets Resulting from Operations (29,081) 22,908
-------- --------
Distribution to Shareholders
Distributions from Net Investment Income - (98)
Distributions from Net Realized Gains (371) (1,514)
-------- --------
Total Distributions to Shareholders (371) (1,612)
-------- --------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(1,012,660 shares in 1997 and 3,841,344 shares in 1996) 15,789 62,195
Proceeds from Shares Issued upon Reinvestment of Dividends
(21,695 shares in 1997 and 109,774 shares in 1996) 362 1,531
Cost of Shares Redeemed
(1,008,898 shares in 1997 and 1,121,510 shares in 1996) (14,752) (18,634)
-------- --------
Increase in Net Assets Resulting from Capital
Share Transactions 1,399 45,092
-------- --------
Increase (Decrease) in Net Assets (28,053) 66,388
NET ASSETS
Beginning of Period 132,444 66,056
-------- --------
End of Period $104,391 $132,444
======== ========
</TABLE>
See accompanying Notes to Financial Statements.
69
<PAGE>
TCW Galileo Asia Pacific Equity Fund
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
---------------- ----------------
<S> <C> <C>
OPERATIONS
Net Investment Income (Loss) $ (51) $ 320
Net Realized Gain on Investments and
Foreign Currency Transactions 4,004 1,060
Change in Unrealized Appreciation (Depreciation) on
Investments and Foreign Currency Translations (1,563) 3,103
------- --------
Increase in Net Assets Resulting from Operations 2,390 4,483
------- --------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income - (242)
Distributions from Net Realized Gains - -
Distributions in Excess of Net Realized Gains - -
------- --------
Total Distributions to Shareholders - (242)
------- --------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(87,687 shares in 1997 and 1,653,606 shares in 1996) 925 15,972
Proceeds from Shares Issued Upon Reinvestment of Dividends
(24,113 shares in 1996) - 232
Cost of Shares Redeemed
(792,152 shares in 1997 and 2,040,994 shares in 1996) (8,212) (18,888)
------- --------
(Decrease) in Net Assets Resulting from Capital
Share Transactions (7,287) (2,684)
------- --------
Increase (Decrease) in Net Assets (4,897) 1,557
NET ASSETS
Beginning of Period 48,266 46,709
------- --------
End of Period $43,369 $ 48,266
======= ========
</TABLE>
See accompanying Notes to Financial Statements.
70
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo Emerging Markets Fund
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
---------------- ----------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 97 $ 443
Net Realized Gain (Loss) on Investments and
Foreign Currency Transactions 1,916 (902)
Change in Unrealized Appreciation on Investments and
Foreign Currency Translations 6,369 6,769
------- --------
Increase in Net Assets Resulting from Operations 8,382 6,310
------- --------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (279) (151)
------- --------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(484,200 shares in 1997 and 2,488,039 shares in 1996) 4,445 20,122
Proceeds from Shares Issued Upon Reinvestment of Dividends
(25,004 shares in 1997 and 17,923 shares in 1996) 211 135
Cost of Shares Redeemed (814,712 shares in 1997 and
2,676,057 shares in 1996) (7,461) (20,650)
------- --------
(Decrease) in Net Assets Resulting from Capital
Share Transactions (2,805) (393)
------- --------
Increase in Net Assets 5,298 5,766
NET ASSETS
Beginning of Period 57,639 51,873
------- --------
End of Period $62,937 $ 57,639
======= ========
</TABLE>
See accompanying Notes to Financial Statements.
71
<PAGE>
TCW Galileo Latin America Equity Fund
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
---------------- ----------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 560 $ 688
Net Realized Gain (Loss) on Investments and
Foreign Currency Transactions 2,988 (3,423)
Change in Unrealized Appreciation on Investments
and Foreign Currency Translations 13,877 14,716
------- -------
Increase in Net Assets Resulting from Operations 17,425 11,981
------- -------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (603) (192)
Distributions in Excess of Net Realized Gains - -
------- -------
Total Distributions to Shareholders (603) (192)
------- -------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(196,789 shares in 1997 and 3,090,695 shares in 1996) 2,319 27,546
Proceeds from Shares Issued upon Reinvestment of Dividends
(6,878 shares in 1997 and 5,047 shares in 1996) 70 43
Cost of Shares Redeemed
(461,331 shares in 1997 and 1,181,839 shares in 1996) (5,189) (9,997)
------- -------
Increase (Decrease) in Net Assets Resulting from
Capital Share Transactions (2,800) 17,592
------- -------
Increase in Net Assets 14,022 29,381
NET ASSETS
Beginning of Period 68,323 38,942
------- -------
End of Period $82,345 $68,323
======= =======
</TABLE>
See accompanying Notes to Financial Statements.
72
<PAGE>
TCW GALILEO FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
- -----------------------------------------
Note 1 - Organization
TCW Galileo Funds, Inc., a Maryland corporation (the "Company"), is an open-end
management investment company registered under the Investment Company Act of
1940, as amended, that currently offers a selection of thirteen 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 Core 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), a convertible securities
fund (the TCW Galileo Convertible Securities Fund), and seven non-diversified
equity funds (the TCW Galileo Core Equity Fund, the TCW Galileo Earnings
Momentum Fund, the TCW Galileo Mid-Cap Growth 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 Convertible Securities Fund commenced operations
on January 2, 1997, resulting from the exchange of limited partnership interest.
The assets and liabilities were transferred at historical cost from the limited
partnership to the Fund on January 2, 1997 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 Core Fixed
Income Fund seeks capital appreciation and income through investment principally
in Core 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 Convertible Securities Fund seeks high total
return from current income and capital appreciation through investment
principally in convertible securities; (7) the TCW Galileo Core Equity Fund
emphasizes capital appreciation and preservation with focus on long-term
results; (8) 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; (9) the TCW
Galileo Mid-Cap Growth Fund seeks long-term capital appreciation, primarily by
investing in publicly-traded equity securities of medium capitalization
companies; (10) the TCW Galileo Small Cap Growth Fund seeks long-term capital
appreciation, primarily by investing in publicly-traded equity securities of
smaller capitalization companies; (11) 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; (12) 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 (13) the TCW Galileo Latin America Equity Fund seeks long-term capital
appreciation, primarily by investing in Latin American equity securities.
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.
73
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
- ----------------------------------------------------
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. 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 Core
Fixed Income Fund recognizes as interest income discounts on securities
purchased using a constant yield to maturity accretion method and also amortizes
premiums as a reduction to interest for securities purchased in excess of par
value on a constant yield to maturity amortization method. For all other Funds,
premiums on securities purchased are not amortized, except for mortgage backed
obligations for which amortization has been elected as allowed by federal income
tax regulations. Realized and unrealized gains and losses on investments are
recorded on the basis of specific identification.
Foreign Currency Translation: The books and records of each Fund are maintained
in U.S. dollars as follows: (1) the foreign currency market value of investment
securities, and other assets and liabilities stated in foreign currencies, are
translated using the daily spot rate; and (2) purchases, sales, income and
expenses are translated at the rate of exchange prevailing on the respective
dates of such transactions. The resultant exchange gains and losses are
included in the Statements of Operations with the related net realized gain
(loss). Pursuant to U.S. federal income tax regulations, certain foreign
exchange gains and losses included in realized and unrealized gains and losses
are included in, or are a reduction of, ordinary income for federal income tax
purposes. It is not practicable to separately identify that portion of gains
and losses of the Funds that arise as a result of changes in the exchange rates
from the fluctuations that arise from changes in market prices of investments
during the period.
Forward Foreign Currency Contracts: Certain Funds may enter into forward
foreign currency contracts as a hedge against fluctuations in foreign exchange
rates. Forward foreign currency contracts are marked-to-market daily and the
change in market value is recorded by the Fund as an unrealized gain or loss.
When the contract is closed or delivery is taken, the Fund records a realized
gain or loss equal to the difference between the value of the contract at the
time it was opened and the value at the time it was closed. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of their contracts and from unanticipated
movements in the value of the foreign currency relative to the U.S. dollar. The
Funds have not entered into any forward foreign currency contracts during the
six months ended April 30, 1997.
Dollar Roll Transactions: The Funds may enter into dollar roll transactions with
financial institutions to take advantage of opportunities in the mortgage backed
securities market. A dollar roll transaction involves a simultaneous sale by the
Fund of securities that it holds with an agreement to repurchase substantially
similar securities at an agreed upon price and date, but generally will be
collaterialized at time of delivery by different pools of mortgages with
different prepayment histories than those securities sold. These transactions
are accounted for as financing transactions as opposed to sales and purchases.
The differential between the sale price and the repurchase price is recorded as
deferred income and recognized between the settlement dates of the sale and
repurchase. During the period between the sale and repurchase, the Fund will not
be entitled to receive interest and principal payments on the securities sold.
Dollar roll transactions involve risk that the market value of the security sold
by the Fund may decline below the repurchase price of the security. There were
no such transactions outstanding as of April 30, 1997.
74
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1997
Repurchase Agreements: The Funds may invest in repurchase agreements secured by
U.S. Government obligations and in other securities. Securities pledged as
collateral for repurchase agreements are held by the Funds' custodian bank until
maturity of the repurchase agreements. Provisions of the agreements ensure that
the market value of the collateral is sufficient in the event of default;
however, in the event of default or bankruptcy by the other party to the
agreements, realization and/or retention of the collateral may be subject to
legal proceedings.
Options: Premiums received from call options written are recorded as a
liability. The amount of the liability is subsequently adjusted to reflect the
current market value of the option written. If the option expires unexercised,
premiums received are realized as a gain at expiration date. If the position is
closed prior to expiration, a gain or loss is realized based on premiums
received, less the cost to close the option. When an option is exercised,
premiums received are added to the proceeds from the sale of the underlying
securities and a gain or loss is realized. Call options purchased are accounted
for in the same manner as portfolio securities. The cost of securities acquired
through the exercise of call options is increased by premiums paid. There were
no option contracts entered into during the six months ended April 30, 1997.
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,
$2,200 and $4,400 for the TCW Galileo Earnings Momentum Fund, TCW Galileo Mid-
Cap Growth Fund and the TCW Galileo Convertible Securities Fund, respectively,
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 10,008
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,
TCW Galileo Long-Term Mortgage Backed Securities Fund, the TCW Galileo Mid-Cap
Growth Fund and the TCW Convertible Securities Fund, and 2,000 shares each of
the other five Funds, collectively the "Initial Shares"). In the event the
Adviser redeems any of its Initial Shares from one or more of the Funds prior to
the end of the five-year period, the proceeds of the redemption payable in
respect of such shares will be reduced by any unamortized organization costs in
the same ratio as the number of Initial Shares being redeemed bears to the
number of Initial Shares outstanding at the time of the redemption.
Expense Allocation: Common expenses incurred by the Company are allocated among
the Funds based upon the ratio of net assets of each Fund to the combined net
assets of all the Funds. All other expenses are charged to each Fund as
incurred on a specific identification basis.
Net Asset Value: The Net Asset Value of each Fund's shares is determined by
dividing the net assets of the Fund by the number of issued and outstanding
shares on each business day as of 9:00 A.M. Pacific Time for the TCW Galileo
Money Market Fund and as of 1:00 P.M. Pacific Time for the other Funds.
Dividends and Distributions: Dividends from net investment income of the TCW
Galileo Money Market Fund are declared each business day. It is the policy of
the equity funds to declare and pay, or reinvest, dividends from net investment
income annually and the bond funds to declare and pay, or reinvest, dividends
from net investment income monthly. Distribution of any net long-term and net
short-term capital gains earned by a Fund will be distributed at least annually.
Income and capital gain distributions are determined in accordance with income
tax regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments for foreign currency
transactions, market discount, losses deferred to wash sales and excise tax
regulations. Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may affect
net investment income per share. Undistributed net investment income may include
temporary book and tax basis differences which will reverse in a subsequent
period. Any taxable income or gain remaining at fiscal year end is distributed
in the following year.
75
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
====================================================
USE OF ESTIMATES: The preparation of the accompanying financial statements
requires management to make estimates and assumptions that effect the reported
amount of assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual
results could differ from these estimates.
NOTE 3 - FEDERAL INCOME TAXES
It is the policy of each Fund to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute all
of its net taxable income, including any net realized gains on investments, to
its shareholders. Therefore, no federal income tax provision is required. At
April 30, 1997, net unrealized appreciation (depreciation) on investments for
federal income tax purposes was as follows:
<TABLE>
<CAPTION>
TCW TCW TCW TCW
Galileo Galileo Galileo Galileo Long-Term
Core Fixed High Yield Mortgage Backed Mortgage Backed
Income Fund Bond Fund Securities Fund Securities Fund
------------ ------------ --------------- -----------------
<S> <C> <C> <C> <C>
Unrealized Appreciation $ 99,648 $ 5,428,340 $ 232,533 $ 1,634,186
Unrealized (Depreciation) (141,371) (1,459,998) (1,660,560) (2,258,005)
----------- ------------ ----------- ------------
Net Unrealized Appreciation
(Depreciation) $ (41,723) $ 3,968,342 $(1,428,027) $ (623,819)
=========== ============ =========== ============
Cost of Investments for Federal
Income Tax Purposes $21,226,580 $203,196,568 $42,876,312 $111,374,176
=========== ============ =========== ============
<CAPTION>
TCW Galileo TCW TCW Galileo TCW Galileo
Convertible Galileo Core Earnings Mid-Cap
Securities Fund Equity Fund Momentum Fund Growth Fund
--------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
Unrealized Appreciation $ 1,577,844 $ 66,988,578 $ 9,892,787 $12,863,736
Unrealized (Depreciation) (869,610) (4,600,189) (10,554,572) (6,360,712)
------------- -------------- ------------ -----------
Net Unrealized Appreciation
(Depreciation) $ 708,234 $ 62,388,389 $ (661,785) $ 6,503,024
============= ============== ============ ===========
Cost of Investments for Federal
Income Tax Purposes $ 25,577,891 $ 157,809,024 $ 70,808,918 $79,272,117
============= ============== ============ ===========
<CAPTION>
TCW Galileo TCW Galileo TCW Galileo TCW Galileo
Small Cap Asia Pacific Emerging Latin America
Growth Fund Equity Fund Markets Fund Equity Fund
------------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
Unrealized Appreciation $ 27,397,381 $ 7,842,691 $12,156,062 $ 22,778,562
Unrealized (Depreciation) (10,533,062) (3,384,883) (3,014,861) (1,303,539)
------------ ------------ ----------- ------------
Net Unrealized Appreciation $ 16,864,319 $ 4,457,808 $ 9,141,201 $ 21,475,023
============ ============= =========== ============
Cost of Investments for Federal
Income Tax Purposes $ 87,523,110 $ 38,481,245 $53,279,513 $ 60,476,329
============ ============ =========== ============
</TABLE>
76
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1997
At April 30, 1997, the following Funds had net realized loss carryforwards for
federal income tax purposes:
<TABLE>
<CAPTION>
Expiring in
-----------------------------------------
2002 2003 2004
---------- ----------- ----------
<S> <C> <C> <C>
TCW Galileo Core Fixed Income Fund $1,977,000 $ 203,000 $ -
TCW Galileo High Yield Bond Fund 243,700 1,213,000 1,228,000
TCW Galileo Mortgage Backed Securities Fund 446,000 4,070,000 861,000
TCW Galileo Long-Term Mortgage
Backed Securities Fund - 109,000 109,000
TCW Galileo Mid-Cap Growth Fund - - 2,649,000
TCW Galileo Emerging Markets Fund 483,600 7,490,000 902,000
TCW Galileo Latin America Equity Fund - 26,437,000 3,423,000
</TABLE>
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 Core 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 Convertible Securities Fund 0.75%
TCW Galileo Core Equity Fund 0.75%
TCW Galileo Earnings Momentum Fund 1.00%
TCW Galileo Small Cap Growth Fund 1.00%
TCW Galielo Mid-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. The ordinary
operating expenses of the TCW Galileo Money Market Fund are limited to 0.40% of
the Fund's daily net assets. The ordinary operating expenses of the TCW Galileo
Mid-Cap Growth Fund were limited to 1.20% until December 31, 1996. The ordinary
operating expenses of the TCW Galileo Convertible Securities Fund are limited to
0.95% of the Fund's daily net assets until December 31, 1997.
Certain officers and/or directors of the Company are officers and/or directors
of the Adviser.
77
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
====================================================
NOTE 5 - PURCHASES AND SALES OF SECURITIES
Investment transactions (excluding short-term investments) for the six months
ended April 30, 1997 were as follows:
<TABLE>
<CAPTION>
TCW TCW TCW TCW
Galileo Galileo Galileo Galileo Long-Term
Core Fixed High Yield Mortgage Backed Mortgage Backed
Income Fund Bond Fund Securities Fund Securities Fund
----------- ---------- ---------------- -----------------
<S> <C> <C> <C> <C>
Purchases at Cost $ 4,555,683 $99,133,498 $ 153,780 $ 184,611
=========== =========== =========== =============
Sales Proceeds $ 7,049,824 $58,918,083 $ 6,401,122 $ 1,580,224
=========== =========== =========== =============
U.S. Government Purchases
at Cost $14,285,915 $ - $ 5,877,554 $ 11,181,417
=========== =========== =========== =============
U.S. Government Sales
Proceeds $15,154,506 $ - $15,538,297 $ 5,389,284
=========== =========== =========== =============
<CAPTION>
TCW Galileo TCW TCW Galileo TCW Galileo
Convertible Galileo Core Earnings Mid-Cap
Securities Fund Equity Fund Momentum Fund Growth Fund
---------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
Purchases at Cost $14,900,448 $42,292,039 $34,879,895 $36,143,551
=========== =========== =========== ===========
Sales Proceeds $15,945,277 $66,355,160 $28,713,762 $23,463,785
=========== =========== =========== ===========
<CAPTION>
TCW Galileo TCW Galileo TCW Galileo TCW Galileo
Small Cap Asia Pacific Emerging Latin America
Growth Fund Equity Fund Markets Fund Equity Fund
----------- ------------ ------------ --------------
<S> <C> <C> <C> <C>
Purchases at Cost $27,831,069 $16,518,559 $19,399,943 $ 8,764,177
=========== =========== =========== ===========
Sales Proceeds $27,029,797 $24,171,098 $21,846,099 $13,071,489
=========== =========== =========== ===========
</TABLE>
There were no purchases or sales of U.S. Government Securities for the equity
funds for the six months ended April 30, 1997.
NOTE 6 - RESTRICTED SECURITIES
The following restricted securities held by the Funds as of April 30, 1997, were
valued both at the date of acquisition and April 30, 1997, 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 CORE FIXED INCOME FUND:
Date of
Principal Amount Investment Acquisition Cost
- ---------------- ----------------------------------------------------- ----------- --------
<S> <C> <C> <C>
$25,000 Consumers International, (144A), 10.25%, due 04/01/05 04/10/97 $ 25,000
25,000 Dyncorp, Inc., (144A), 9.5%, due 03/01/07 03/11/97 24,871
25,000 STC Broadcasting, Inc., (144A), 11%, due 03/15/07 03/20/97 25,000
</TABLE>
The total value of restricted securities is $75,437, which represents 0.4% of
net assets of the Fund at April 30, 1997.
78
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1997
TCW Galileo High Yield Bond Fund:
<TABLE>
<CAPTION>
Date of
Principal Amount Investment Acquisition Cost
---------------------- ------------------------------ ------------ ----------
<S> <C> <C> <C>
$ 500,000 Allied Waste of North America,
(144A), 10.25%, due 12/01/06 11/25/96 $ 500,000
2,000,000 Atrium Companies, Inc.,
(144A), 10.5%, due 11/15/06 11/22/96 2,013,125
550,000 Bway Corp.,
(144A), 10.25%, due 04/15/07 04/08/97 550,000
1,500,000 Consumers International,
(144A), 10.25%, due 04/01/05 04/10/97 1,500,000
650,000 Dyncorp, Inc.,
(144A), 9.5%, due 03/01/07 03/11/97 646,646
850,000 Neenah Corp.,
(144A), 11.125%, due 05/01/07 04/23/97 853,375
1,050,000 Packard Bioscience Co.,
(144A), 9.375%, due 03/01/07 02/21/97 1,067,875
1,000,000 Plastic Containers, Inc.,
(144A), 10%, due 12/15/06 12/11/96 1,000,000
450,000 Remington Arms Co., Inc.,
(144A), 10%, due 12/01/03 08/21/96 415,125
2,725,000 STC Broadcasting, Inc.,
(144A), 11%, due 03/15/07 03/20/97 2,725,000
1,025,000 Telex Communications, Inc.,
(144A), 10.5%, due 05/01/07 04/29/97 1,026,750
</TABLE>
The total value of restricted securities is $12,354,750, which represents 5.9%
of net assets of the Fund at April 30, 1997.
<TABLE>
<CAPTION>
TCW Galileo Mortgage Backed Securities Fund:
Date of
Principal Amount Investment Acquisition Cost
----------------- ----------------------------------------- ----------- ------------
<S> <C> <C> <C>
$ 1,135,965 Greenwich Capital Acceptance, Inc. (91-03),
(Private Placement), 8.3064%, due 08/25/19 03/21/91 $1,125,582
</TABLE>
The total value of restricted securities is $1,099,046, which represents 2.6% of
net assets of the Fund at April 30, 1997.
79
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
- ---------------------------------------------------
Note 6 - Restricted Securities (Continued)
TCW Galileo Convertible Securities Fund:
<TABLE>
<CAPTION>
NUMBER OF SHARES DATE OF
OR PRINCIPAL AMOUNT INVESTMENT ACQUISITION COST
- ------------------------ ----------------------------------------- ----------- ----------
<S> <C> <C> <C>
$ 285,000 Adaptec, Inc.,
(144A), 4.75%, due 02/04/04 01/28/97 $ 285,000
6,900 Apple South, Inc.,
(144A), $3.50 Convertible Preferred 03/06/97 345,000
$ 260,000 Assisted Living Concepts, Inc.,
(144A), 7%, due 07/31/05 01/29/97 306,800
$ 1,100,000 CUC International, Inc.,
(144A), 3%, due 02/15/02 02/05/97 1,093,076
5,000 Host Marriott Financial Trust,
(144A), $3.375 Convertible Preferred 01/06/97 267,500
$ 200,000 Indian Petrochemicals Corp.,
(144A), 2.5%, due 03/11/02 02/25/97 200,000
4,800 McKesson Corp., (144A),
$2.50 Convertible Preferred 02/13/97 240,000
$ 205,000 Metricom, Inc.,
(144AI, Reg D), 8%, due 09/15/03 08/20/96 205,000
$ 290,000 Morgan Stanley Group,
Exchangeable Schlumberger, Ltd.,
(Netherlands) (144A), 0%, due 05/01/01 03/13/97 267,206
$ 290,000 Nine West Group, Inc.,
(144AI, Reg S), 5.5%, due 07/15/03 10/07/96 293,857
$ 300,000 OccuSystems, Inc.,
(144A), 6%, due 12/15/01 04/08/97 292,213
$ 580,000 Omnicom Group, Inc.,
(144A), 4.25%, due 01/03/07 01/06/97 606,012
4,500 PennCorp Financial Group, Inc.,
(144A, Reg D), $3.50 Convertible Preferred 08/02/96 225,000
$ 325,000 PhyMatrix Corp.,
(144A), 6.75%, due 06/15/03 01/06/97 275,113
$ 320,000 Quintiles Transnational Corp.,
(144AI, Reg D), 4.25%, due 05/31/00 04/23/96 320,000
$ 660,000 Safeguard Scientifics, Inc.,
(144A), 6%, due 02/01/06 01/07/97 619,913
1,300 SFX Broadcasting, Inc., (144A),
$3.25 Convertible Preferred 01/30/97 60,938
$ 325,000 Vivra, Inc.,
(144AI, Reg D), 5%, due 07/01/01 07/02/96 325,000
$ 410,000 XILINX, Inc.,
(144A), 5.25%, due 11/01/02 04/25/97 464,838
</TABLE>
The total value of restricted securities is $6,711,245, which represents 24.7%
of net assets of the Fund at April 30, 1997.
80
<PAGE>
TCW GALILEO FUNDS, INC.
April 30, 1997
<TABLE>
<CAPTION>
TCW Galileo Asia Pacific Equity Fund:
Number of Shares Date of
or Principal Amount Investment Acquisition Cost
- ------------------- ----------------------------------------------- --------------- ---------
<S> <C> <C> <C>
23,600 BSES, Limited (144A) (GDR) (India) 12/03/96 $490,998
$184,000 Far East Department Stores, Limited (144A),
Convertible Bond, 3%, due 07/06/02 (Taiwan) 07/01/96 182,792
22,000 Mahindra & Mahindra (144A) (GDR) (India) 01/17/97 262,742
25,600 State Bank of India (144A) (GDR) (India) 10/03/96 362,240
25,000 Tata Engineering & Locomotive (144A) (GDR) (India) 02/13/97 259,375
$511,000 United Microelectric Corp., Limited, (144A),
Convertible Bond, 1.25%, due 08/06/04 (Taiwan) 07/05/96 658,410
24,900 Videsh Sancher Nigam, Limited (144A) (GDR) (India) 03/24/97 346,857
</TABLE>
The total value of restricted securities is $3,516,175, which represents 8.1% of
net assets of the Fund at April 30, 1997.
<TABLE>
<CAPTION>
TCW Galileo Emerging Markets Fund:
Number of Shares Date of
or Principal Amount Investment Acquisition Cost
- ------------------- ----------------------------------------------- --------------- ---------
<C> <S> <C> <C>
13,406 AO Mosenergo Joint Stock Co. (144A) (ADR) (Russia) 06/14/96 $339,990
33,900 BSES, Limited (144A) (GDR) (India) 02/29/96 590,755
4,400 Borsodchem (144A) (GDR) (Hungary) 01/16/97 146,080
10,600 Cementos Diamante, S.A. (144A) (ADS) (Colombia) 05/17/94 170,199
15,000 Commercial International Bank (144A) (GDR) (Egypt) 02/25/97 358,125
3,940 Gedeon Richter (144A) (Hungary) 08/02/96 201,997
18,500 Hindalco Industries, Limited (144A) (GDR) (India) 04/03/96 457,565
4,150 Komereni Banka (144A) (GDR) (Czech Republic) 08/23/96 124,600
8,008 Lukoil Holdings (144A) (ADR) (Russia) 06/21/96 332,358
16,000 Mahindra & Mahindra (144A) (GDR) (India) 01/20/97 193,871
8 Megionneftegaz (144A) (RDC) (Russia) 09/03/96 302,000
14,000 Ranbaxy Laboratories, Limited (144A) (GDR) (India) 03/11/97 335,500
13 Rostelecom (144A) (RDC) (Russia) 08/21/96 337,500
43,600 State Bank of India (144A) (GDR) (India) 10/04/96 686,600
17,000 Tata Engineering & Locomotive (144A) (GDR) (India) 02/14/97 189,295
$265,000 United Microelectric Corporation, Limited, (144A),
Convertible Bond, 1.25%, due 08/06/04 (Taiwan) 07/05/96 343,175
27,500 Videsh Sancher Nigam, Limited (144A) (GDR) (India) 03/24/97 383,075
</TABLE>
The total value of restricted securities is $7,037,910, which represents 11.2%
of net assets of the Fund at April 30, 1997.
<TABLE>
<CAPTION>
TCW Galileo Latin America Equity Fund:
Date of
Number of Shares Investment Acquisition Cost
- ------------------- ----------------------------------------------- --------------- ---------
<S> <C> <C> <C>
18,900 Cementos Diamante, S.A. (144A) (ADS) 05/17/94 $311,989
(Colombia)
10,237 COMPANHIA ENERGETICA DE MINAS GERAIS
(CEMIG) (144A) (ADR) (Brazil) 12/14/94 310,142
2,509 Siderurgica Venezolana Sivensa, Saica S.A.C.A.,
Series B (144A) (ADR) (Venezuala) 08/13/96 605
</TABLE>
The total value of restricted securities is $796,408, which
represents 1.0% of net assets of the Fund at April 30, 1997.
81
<PAGE>
TCW GALILEO MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 1997 ----------------------
(Unaudited) 1996 1995
---------------- ------- ---------
<S> <C> <C> <C>
Net Asset Value per Share, Beginning of Period $ 1.00 $ 1.00 $ 1.00
Income from Investment Operations:
Net Investment Income 0.0296 0.0509 0.0549
Less Distributions:
Distributions from Net Investment Income (0.0296) (0.0509) (0.0549)
-------- -------- --------
Net Asset Value per Share, End of Period $ 1.00 $ 1.00 $ 1.00
======== ======== ========
Total Return 2.54% (1) 5.21% 5.67%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $ 282,486 $ 233,671 $ 86,302
Ratio of Net Expenses to Average Net Assets (5) 0.40%(4) 0.40% 0.40%
Ratio of Net Investment Income to Average Net Assets 5.04%(4) 5.04% 5.49%
</TABLE>
(1) For the six months ended April 30, 1997 and not indicative of a full year's
operating results.
(2) For the ten months ended October 31, 1994 and not indicative of a full
year's operating results.
(3) For the period July 14, 1988 (commencement of operations) to December 31,
1988 and not indicative of a full year's operating results.
(4) Annualized.
(5) The Investment Adviser has voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund, to the extent necessary to limit the
annual ordinary operating expenses of the Fund to 0.40% of net assets as
disclosed in Note 4 of the Notes to Financial Statements. Had such action
not been taken, total annualized operating expenses as a percentage of
average net assets would have been 0.42% for the six months ended April 30,
1997, 0.44% for the fiscal year ended October 31, 1996, 0.46% for the
fiscal year ended October 31, 1995, 0.68% for the ten months ended October
31, 1994, 0.52%, 0.49%, 0.47%, 0.51 % and 0.71% for the years ended
December 31, 1993 through 1989, respectively, and 0.47% for the period July
14, 1988 (commencement of operations) through December 31, 1988.
82
<PAGE>
TCW GALILEO FUNDS, INC.
<TABLE>
<CAPTION>
Year Ended December 31, July 14, 1988
Ten Months Ended -------------------------------------------------------------- (Inception) to
October 31, 1994 1993 1992 1991 1990 1989 December 31, 1988
- ----------------- --------- -------- -------- -------- -------- -----------------
<S> <C> <C> <C> <C> <C> <C>
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
0.0304 0.0293 0.0381 0.0620 0.0800 0.0882 0.0379
(0.0304) (0.0293) (0.0381) (0.0620) (0.0800) (0.0882) (0.0379)
---------- -------- -------- -------- -------- ------- -------
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ======== ======== ======== ======== ======= =======
3.04% (2) 2.97% 3.92% 6.35% 8.18% 9.22% 7.68% (3)
$ 124,392 $ 81,204 $183,465 $140,987 $167,572 $88,620 $63,703
0.40% (4) 0.40% 0.40% 0.40% 0.40% 0.40% 0.40% (4)
3.65% (4) 2.93% 3.81% 6.20% 8.00% 8.82% 8.08% (4)
</TABLE>
83
<PAGE>
TCW Galileo Core Fixed Income Fund
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
March 1, 1993
Six Months Ended Year Ended October 31, Ten Months (Commencement of
April 30, 1997 -------------------------- Ended Operations) through
(Unaudited) 1996 1995 October 31, 1994 December 31, 1993
---------------- ------- ------- ---------------- -------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value per Share,
Beginning of Period $ 9.45 $ 9.61 $ 8.94 $ 10.04 $ 10.00
------- ------- ------- ------- -------
Income (Loss) from Investment
Operations:
Net Investment Income 0.34 0.55 0.58 0.44 0.45
Net Realized and Unrealized
Gain (Loss) on Investments
and Foreign Currency
Transactions/Translations (0.19) (0.16) 0.62 (1.16) 0.19
------- ------- ------- ------- -------
Total from Investment
Operations 0.15 0.39 1.20 (0.72) 0.64
------- ------- ------- ------- -------
Less Distributions:
Distributions from Net
Investment Income (0.29) (0.55) (0.53) (0.38) (0.45)
Distributions from Net
Realized Gains - - - - (0.14)
Distributions in Excess
of Net Realized Gains - - - - (0.01)
------- ------- ------- ------- -------
Total Distributions (0.29) (0.55) (0.53) (0.38) (0.60)
------- ------- ------- ------- -------
Net Asset Value per Share,
End of Period $ 9.31 $ 9.45 $ 9.61 $ 8.94 $ 10.04
======= ======= ======= ======= =======
Total Return 1.60%(1) 4.26% 13.92% (7.24)%(2) 6.54%(3)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in
thousands) $21,351 $25,006 $36,236 $50,153 $33,328
Ratio of Expenses to Average
Net Assets 0.87%(4) 0.76% 0.68%(5) 0.50%(4)(5) 0.50%(4)(5)
Ratio of Net Investment Income
to Average Net Assets 6.33%(4) 5.85% 6.38% 6.11%(4) 5.24%(4)
Portfolio Turnover Rate 82.24%(1) 238.73% 223.78% 208.63%(2) 149.96%(3)
</TABLE>
(1) For the six months ended April 30, 1997 and not indicative of a full year's
operating results.
(2) For the ten months ended October 31, 1994 and not indicative of a full
year's operating results.
(3) For the period March 1, 1993 (commencement of operations) to December 31,
1993 and not indicative of a full year's operating results.
(4) Annualized.
(5) The Investment Adviser had voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund, to the extent necessary to limit the
annual ordinary operating expenses of the Fund to 0.50% of net assets
through December 31, 1994. Had such action not been taken, total annualized
operating expenses as a percentage of average net assets would have been
0.72% for the fiscal year ended October 31, 1995, 0.68% for the ten months
ended October 31, 1994 and 0.89% for the period March 1, 1993,
(commencement of operations) through December 31, 1993.
84
<PAGE>
TCW GALILEO FUNDS, INC.
TCW GALILEO HIGH YIELD BOND FUND
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
March 1, 1993
SIX MONTHS ENDED Year Ended October 31, Ten Months (Commencement of
APRIL 30, 1997 ------------------------- Ended Operations) through
(UNAUDITED) 1996 1995 October 31, 1994 December 31, 1993
--------------- ---------- --------- ---------------- -------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value per Share,
Beginning of Period $ 9.77 $ 9.74 $ 9.43 $ 10.12 $ 10.00
---------- ---------- ---------- ---------- ---------
Income (Loss) from Investment
Operations:
Net Investment Income 0.45 0.89 0.92 0.73 0.74
Net Realized and Unrealized Gain
(Loss) on Investments 0.06 0.03 0.39 (0.77) 0.27
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 0.51 0.92 1.31 (0.04) 1.01
---------- ---------- ---------- ---------- ----------
Less Distributions:
Distributions from Net
Investment Income (0.45) (0.89) (1.00) (0.65) (0.74)
Distributions from Net
Realized Gains - - - - (0.15)
---------- ---------- ---------- ---------- ----------
Total Distributions (0.45) (0.89) (1.00) (0.65) (0.89)
---------- ---------- ---------- ---------- ----------
Net Asset Value per Share,
End of Period $ 9.83 $ 9.77 $ 9.74 $ 9.43 $ 10.12
========== ========== ========= ========== =========
Total Return 5.23%(1) 9.92% 14.65% (0.34)%(2) 10.47%(3)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in
thousands) $210,154 $183,815 $ 92,652 $ 90,577 $ 73,737
Ratio of Expenses to Average
Net Assets 0.84%(4) 0.90% 0.87%(5) 0.79%(4)(5) 0.79%(4)(5)
Ratio of Net Investment Income
to Average Net Assets 9.11%(4) 9.21% 9.60% 9.18%(4) 8.60%(4)
Portfolio Turnover Rate 29.70%(1) 82.56% 36.32% 34.01%(2) 47.60%(3)
</TABLE>
(1) For the six months ended April 30, 1997 and not indicative of a full year's
operating results.
(2) For the ten months ended October 31, 1994 and not indicative of a full
year's operating results.
(3) For the period March 1, 1993 (commencement of operations) to December 31,
1993 and not indicative of a full year's operating results.
(4) Annualized.
(5) The Investment Adviser had voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund, to the extent necessary to limit the
annual ordinary operating expenses of the Fund to 0.79% of net assets
through December 31, 1994. Had such action not been taken, total annualized
operating expenses as a percentage of average net assets would have been
0.88% for the fiscal year ended October 31, 1995, 0.91% for the ten months
ended October 31, 1994 and 0.96% for the period March 1, 1993,
(commencement of operations) through December 31, 1993.
85
<PAGE>
TCW Galileo Mortgage Backed Securities Fund
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
March 1, 1993
Six Months Ended Year Ended October 31, Ten Months (Commencement of
April 30, 1997 --------------------------- Ended Operations) through
(Unaudited) 1996 1995 October 31, 1994 December 31, 1993
---------------- ------- ------- ---------------- -------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value per Share,
Beginning of Period $ 9.67 $ 9.58 $ 9.41 $ 9.86 $ 10.00
------- ------- ------- -------- --------
Income (Loss) from Investment
Operations:
Net Investment Income 0.34 0.51 0.67 0.42 0.50
Net Realized and Unrealized
Gain (Loss) on Investments (0.05) 0.22 0.25 (0.48) (0.12)
------- ------- ------- -------- --------
Total from Investment
Operations 0.29 0.73 0.92 (0.06) 0.38
------- ------- ------- -------- --------
Less Distributions:
Distributions from Net
Investment Income (0.07) (0.46) (0.71) (0.39) (0.50)
------- ------- ------- -------- --------
Distributions in Excess of
Net Investment Income (0.23) (0.18) (0.04) - -
Distributions from Net
Realized Gains - - - - (0.02)
------- ------- ------- -------- --------
Total Distributions (0.30) (0.64) (0.75) (0.39) (0.52)
------- ------- ------- -------- --------
Net Asset Value per Share,
End of Period $ 9.66 $ 9.67 $ 9.58 $ 9.41 $ 9.86
======= ======= ======= ======== ========
Total Return 3.04%(1) 7.86% 10.16% (0.61)%(2) 3.89%(3)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in
thousands) $41,681 $61,835 $81,366 $134,948 $147,666
Ratio of Expenses to Average
Net Assets 0.79%(4) 0.69% 0.61%(5) 0.55%(4)(5) 0.55%(4)(5)
Ratio of Net Investment Income
to Average Net Assets 7.71%(1) 5.34% 7.13% 5.18%(4) 5.98%(4)
Portfolio Turnover Rate 13.67%(1) 54.10% 37.83% 65.64%(2) 70.44%(3)
</TABLE>
(1) For the six months ended April 30, 1997 and not indicative of a full year's
operating results.
(2) For the ten months ended October 31, 1994 and not indicative of a full
year's operating results.
(3) For the period March 1, 1993 (commencement of operations) to December 31,
1993 and not indicative of a full year's operating results.
(4) Annualized.
(5) The Investment Adviser had voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund, to the extent necessary to limit the
annual ordinary operating expenses of the Fund to 0.50% of net assets
through December 31, 1994. Had such action not been taken, total annualized
operating expenses as a percentage of average net assets would have been
0.72% for the fiscal year ended October 31, 1995, 0.68% for the ten months
ended October 31, 1994 and 0.89% for the period March 1, 1993,
(commencement of operations) through December 31, 1993.
86
<PAGE>
TCW GALILEO FUNDS, INC.
TCW GALILEO LONG-TERM MORTAGE BACKED SECURITIES FUND
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
- --------------------
June 17, 1993
Six Months Ended Year Ended October 31, Ten Months (Commencement of
April 30, 1997 ---------------------- Ended Operations) through
(Unaudited) 1996 1995 October 31, 1994 December 31, 1993
---------------- --------- --------- ---------------- -------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value per Share,
Beginning of Period $ 9.56 $ 9.56 $ 8.95 $ 10.07 $ 10.00
--------- -------- --------- ---------- ----------
Income (Loss) from
Investment Operations:
Net Investment Income 0.36 0.68 0.72 0.63 0.28
Net Realized and Unrealized
Gain (Loss) on Investments (0.16) 0.02 0.71 (1.26) 0.07
--------- -------- --------- ---------- ----------
Total from Investment
Operations 0.20 0.70 1.43 (0.63) 0.35
--------- -------- --------- ---------- ----------
Less Distributions:
Distributions from Net
Investment Income (0.32) (0.68) (0.82) (0.49) (0.28)
Distributions in Excess of
Net Investment Income - (0.02) - - -
--------- -------- --------- ---------- ----------
Total Distributions (0.32) (0.70) (0.82) (0.49) (0.28)
--------- -------- --------- ---------- ----------
Net Asset Value per Share,
End of Period $ 9.44 $ 9.56 $ 9.56 $ 8.95 $ 10.07
========= ======== ========= ========== ==========
Total Return 2.09% (1) 7.69% 16.84% (6.39)% (2) 3.51% (3)
Ratios/Supplemental Data:
Net Assets, End of Period
(in thousands) $ 110,993 $112,260 $ 80,159 $ 66,632 $ 25,215
Ratio of Expenses to Average
Net Assets 0.64% (4) 0.68% 0.65% (5) 0.65% (4)(5) 0.64% (4)(5)
Ratio of Net Investment Income
to Average Net Assets 7.47% (4) 7.15% 7.88% 8.03% (4) 5.37% (4)
Portfolio Turnover Rate 6.59% (1) 39.28% 23.76% 36.71% (2) 44.47% (3)
</TABLE>
(1) For the six months ended April 30, 1997 and not indicative of a full year's
operating results.
(2) For the ten months ended October 31, 1994 and not indicative of a full
year's operating results.
(3) For the period March 1, 1993 (commencement of operations) to December 31,
1993 and not indicative of a full year's operating results.
(4) Annualized.
(5) The Investment Adviser had voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund, to the extent necessary to limit the
annual ordinary operating expenses of the Fund to 0.50% of net assets
through December 31, 1994. Had such action not been taken, total annualized
operating expenses as a percentage of average net assets would have been
0.72% for the fiscal year ended October 31, 1995, 0.68% for the ten months
ended October 31, 1994 and 0.89% for the period March 1, 1993,
(commencement of operations) through December 31, 1993.
87
<PAGE>
TCW Galileo Convertible Securities Fund
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS January 2, 1997
- -------------------- (Commencement of
Operations) through
April 30, 1997
(Unaudited)
-------------------
<S> <C>
Net Asset Value per Share, Beginning
of Period $ 10.00
-------
Income (Loss) from Investment Operations:
Net Investment Income 0.21
Net Realized and Unrealized (Loss)
on Investments (0.36)
-------
Total from Investment Operations (0.15)
-------
Less Distributions:
Distributions from Net Investment Income (0.09)
-------
Net Asset Value per Share, End of Period $ 9.76
=======
Total Return (1.50)% (1)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $27,163
Ratio of Net Expenses to Average Net Assets 0.95% (2)(3)
Ratio of Net Investment Income to Average
Net Assets 6.31% (2)
Portfolio Turnover Rate 52.36% (1)
Average Commission Rate Paid by the Fund $ 0.04
</TABLE>
(1) For the period January 2, 1997 (commencement of operations) to April 30,
1997 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 0.95% 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 1.19% for the period January 2, 1997
(commencement of operations) through April 30, 1997.
88
<PAGE>
TCW GALILEO FUNDS, INC.
TCW Galileo Core Equity Fund
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
March 1, 1993
Six Months Ended Year Ended October 31, Ten Months (Commencement of
April 30, 1997 ---------------------------- Ended Operations) through
(Unaudited) 1996 1995 October 31, 1994 December 31, 1993
---------------- ---------------------------- ---------------- ------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value per Share,
Beginning of Period $ 15.93 $ 13.69 $ 11.57 $ 11.81 $ 10.00
-------- -------- -------- -------- --------
Income (Loss) from Investment
Operations:
Net Investment Income 0.01 0.11 0.06 0.04 0.03
Net Realized and
Unrealized Gain (Loss)
on Investments 1.02 2.18 2.11 (0.28) 1.81
-------- -------- -------- -------- --------
Total from Investment
Operations 1.03 2.29 2.17 (0.24) 1.84
-------- -------- -------- -------- --------
Less Distributions:
Distributions from Net
Investment Income (0.02) (0.05) (0.05) - (0.03)
Distributions from Net
Realized Gains (0.20) - - - -
-------- -------- -------- -------- --------
Total Distributions (0.22) (0.05) (0.05) - (0.03)
-------- -------- -------- -------- --------
Net Asset Value per Share,
End of Period $ 16.74 $ 15.93 $ 13.69 $ 11.57 $ 11.81
======== ======== ======== ========= ========
Total Return 6.46%(1) 16.79% 18.85% (2.03)%(2) 18.41%(3)
Ratios/Supplemental Data:
Net Assets, End of Period
(in thousands) $220,141 $231,302 $197,721 $136,122 $ 55,885
Ratio of Expenses to
Average Net Assets 0.84%(4) 0.82% 0.85% 0.91%(4) 1.00%(4)(5)
Ratio of Net Investment
Income to Average
Net Assets 0.15%(4) 0.18% 0.48% 0.44%(4) 0.55%(4)
Portfolio Turnover Rate 18.43%(1) 39.58% 53.77% 23.53%(2) 29.67%(3)
Average Commission Rate Paid
by the Fund (6) $ 0.06 $ 0.06 N/A N/A N/A
</TABLE>
(1) For the six months ended April 30, 1997 and not indicative of a full year's
operating results.
(2) For the ten months ended October 31, 1994 and not indicative of a full
year's operating results.
(3) For the period March 1, 1993 (commencement of operations) through December
31, 1993 and not indicative of a full year's operating results.
(4) Annualized.
(5) The Investment Adviser had voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund, to the extent necessary to limit the
annual ordinary operating expenses of the Fund to 1.00% of net assets
through December 31, 1993. 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.
(6) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for security
trades on which commissions are charged. This amount may vary from period
to period and fund to fund depending on the mix of trades executed in
various markets where trading practices and commission rate structures may
differ.
89
<PAGE>
TCW GALILEO FUNDS, INC.
TCW GALILEO EARNINGS MOMENTUM FUND
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
November 1, 1994
Six Months Ended (Commencement of
April 30, 1997 Year Ended Operations) through
(Unaudited) October 31, 1996 October 31, 1995
---------------- ---------------- -------------------
<S> <C> <C> <C>
Net Asset Value per Share, Beginning of Period $ 13.01 $ 11.47 $ 10.00
------- ------- -------
Income (Loss) from Investment Operations:
Net Investment (Loss) (0.06) (0.11) (0.03)
Net Realized and Unrealized Gain (Loss) on
Investments (1.99) 1.72 1.51
------- ------- -------
Total from Investment Operations (2.05) 1.61 1.48
------- ------- -------
Less Distributions:
Distributions in Excess of Net Investment Income - - (0.01)
Distributions From Net Realized Gains (0.95) (0.07) -
------- ------- -------
Total Distributions (0.95) (0.07) (0.01)
------- ------- -------
Net Asset Value per Share, End of Period $10.01 $13.01 $ 11.47
======= ======= =======
Total Return (16.90)%(1) 13.99% 14.76%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $68,689 $77,994 $63,411
Ratio of Net Expenses to Average Net Assets 1.19%(2) 1.13% 1.14%(3)
Ratio of Net Investment (Loss) to Average Net Assets (0.97)%(2) (0.82%) (0.28%)
Portfolio Turnover Rate 40.39%(1) 99.03% 85.91%
Average Commission Rate Paid by the Fund (4) $ 0.06 $ 0.06 N/A
</TABLE>
(1) For the six months ended April 30, 1997 and not indicative of a full year's
operating results.
(2) Annualized.
(3) The Investment Adviser had voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund, to the extent necessary to limit the
annual ordinary operating expenses of the Fund to 1.14% of net assets
through December 31, 1995. Had such action not been taken, total annualized
operating expenses as a percentage of average net assets would have been
1.14% for the year ended October 31, 1996 and November 1, 1994
(commencement of operations) through October 31, 1995.
(4) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for security
trades on which commissions are charged. This amount may vary from period
to period and fund to fund depending on the mix of trades executed in
various markets where trading practices and commission rate structures may
differ.
90
<PAGE>
TCW GALILEO FUNDS, INC.
TCW GALILEO MID-CAP GROWTH FUND
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
June 3, 1996
Six Months Ended (Commencement of
April 30, 1997 Operations) through
(Unaudited) October 31, 1996
---------------- -------------------
<S> <C> <C>
Net Asset Value per Share, Beginning of Period $ 9.19 $ 10.00
------- -------
(Loss) from Investment Operations:
Net Investment (Loss) (0.04) (0.03)
Net Realized and Unrealized (Loss) on Investments (1.90) (0.78)
------- -------
Total from Investments Operations (1.94) (0.81)
------- -------
Net Asset Value per Share, End of Period $ 7.25 $ 9.19
======= =======
Total Return (21.11)%(1) (8.10)%(2)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $84,720 $92,430
Ratio of Net Expenses to Average Net Assets 1.14%(3) 11.20%(3)
Ratio of Net Investment (Loss) to Average Net Assets (4) (0.88)%(3) (0.80%)(3)
Portfolio Turnover Rate 26.36%(1) 19.19%(2)
Average Commission Rate Paid by the Fund $ 0.06 $ 0.06
</TABLE>
(1) For the six months ended April 30, 1997 and not indicative of a full
year's operating results.
(2) For the period June 3, 1996 (commencement of operations) through October
31, 1996 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 1.20% of net assets
through December 31, 1996. Had such action not been taken, total
annualized operating expenses as a percentage of average net assets would
have been 1.16% for the six months ended April 30, 1997 and 1.27% for the
period June 3, 1996 (commencement of operations) through October 31, 1996.
91
<PAGE>
TCW GALILEO FUNDS, INC.
TCW GALILEO SMALL CAP GROWTH FUND
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
March 1, 1994
Six Months Ended Year Ended October 31, (Commencement of
April 30, 1997 --------------------------- Operations) through
(Unaudited) 1996 1995 October 31, 1994
---------------- ---- ---- -------------------
<S> <C> <C> <C> <C>
Net Asset Value per Share, Beginning
of Period $ 17.17 $ 13.53 $ 9.39 $ 10.00
-------- -------- -------- --------
Income (Loss) from Investment Operations:
Net Investment (Loss) (0.06) (0.13) (0.07) (0.04)
Net Realized and Unrealized Gain (Loss)
on Investments (3.57) 4.08 4.72 (0.57)
-------- -------- -------- --------
Total from Investment Operations (3.63) 3.95 4.65 (0.61)
-------- -------- -------- --------
Less Distributions:
Distributions from Net Investment Income - (0.01) - -
Distributions from Net Realized Gains (0.05) (0.30) (0.51) -
-------- -------- -------- --------
Total Distributions (0.05) (0.31) (0.51) -
-------- -------- -------- --------
Net Asset Value per Share, End of Period $ 13.49 $ 17.17 $ 13.53 $ 9.39
======== ======== ======== ========
Total Return (21.21)% (1) 29.73% 49.89% (6.10)% (2)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $104,391 $132,444 $ 66,056 $ 51,089
Ratio of Expenses to Average Net Assets 1.12% (3) 1.14% 1.21% (4) 1.09% (3)(4)
Ratio of Net Investment (Loss) to Average
Net Assets (0.80)% (3) (0.76)% (0.61)% (0.59)% (3)
Portfolio Turnover Rate 22.71% (1) 45.43% 89.73% 88.63% (2)
Average Commission Rate Paid by the Fund (5) $ 0.06 $ 0.06 N/A N/A
</TABLE>
(1) For the six months ended April 30, 1997 and not indicative of a full
year's operating results.
(2) For the period March 1, 1994 (commencement of operations) through October
31, 1994 and not indicative of a full year's operating results.
(3) Annualized.
(4) The Investment Adviser had voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund, to the extent necessary to limit the
annual ordinary operating expenses of the Fund to 1.09% of net assets
through December 31, 1994. Had such action not been taken, total annualized
operating expenses as a percentage of average net assets would have been
1.24% for the fiscal year ended October 31, 1995 and 1.39% for the period
March 1, 1994 (commencement of operations) through October 31, 1994.
(5) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for security
trades on which commissions are charged. This amount may vary from period
to period and fund to fund depending on the mix of trades executed in
various markets where trading practices and commission rate structures may
differ.
92
<PAGE>
TCW GALILEO ASIA PACIFIC EQUITY FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
March 1, 1994
Six Months Ended Year Ended October 31, (Commencement of
April 30, 1997 ------------------------------ Operations) through
(Unaudited) 1996 1995 October 31, 1994
---------------- ------- ------- -------------------
<S> <C> <C> <C> <C>
Net Asset Value per Share, Beginning
of Period $ 9.61 $ 8.67 $ 10.19 $ 10.00
------- ------- ------- -------
Income (Loss) from Investment Operations:
Net Investment Income (Loss) (0.01) 0.06 0.06 0.03
Net Realized and Unrealized Gain (Loss)
on Investments and Foreign Currency 0.44 0.93 (1.19) 0.16
------- ------- ------- -------
Total from Investment Operations 0.43 0.99 (1.13) 0.19
------- ------- ------- -------
Less Distributions:
Distributions from Net Investment Income - (0.05) (0.01) -
Distributions from Net Realized Gains - - (0.16) -
Distributions in Excess of Net Realized Gains - - (0.22) -
------- ------- ------- -------
Total Distributions - (0.05) (0.39) -
------- ------- ------- -------
Net Asset Value per Share, End of Period $ 10.04 $ 9.61 $ 8.67 $ 10.19
======= ======= ======= =======
Total Return 4.47% (1) 11.36% (10.98)% 1.90% (2)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $43,369 $48,266 $46,709 $54,019
Ratio of Expenses to Average Net Assets 1.43% (3) 1.43% 1.47% (4) 1.40% (3)(4)
Ratio of Net Investment Income (Loss) to
Average Net Assets (0.21)% (3) 0.66% 0.74% 0.45% (3)
Portfolio Turnover Rate 34.17% (1) 84.81% 102.01% 46.75% (2)
Average Commission Rate Paid by the Fund (5) $ 0.01 $ 0.01 N/A N/A
</TABLE>
(1) For the six months ended April 30, 1997 and not indicative of a full year's
operating results.
(2) For the period March 1, 1994 (commencement of operations) through October
31, 1994 and not indicative of a full year's operating results.
(3) Annualized.
(4) The Investment Adviser had voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund, to the extent necessary to limit the
annual ordinary operating expenses of the Fund to 1.40% of net assets
through December 31, 1994. Had such action not been taken, total annualized
operating expenses as a percentage of average net assets would have been
1.51% for the fiscal year ended October 31, 1995 and 1.60% for the period
March 1, 1994 (commencement of operations) through October 31, 1994.
(5) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for security
trades on which commissions are charged. This amount may vary from period
to period and fund to fund depending on the mix of trades executed in
various markets where trading practices and commission rate structures may
differ.
93
<PAGE>
TCW Galileo Emerging Markets Fund
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
March 1, 1994
Six Months Ended Year Ended October 31, (Commencement of
April 30, 1997 ---------------------- Operations) through
(Unaudited) 1996 1995 October 31, 1994
---------- -------- ------- ----------------
<S> <C> <C> <C> <C>
Net Asset Value per Share, Beginning
of Period $ 8.18 $ 7.19 $ 9.73 $ 10.00
---------- -------- ------- ----------
Income (Loss) from Investment Operations:
Net Investment Income (Loss) 0.01 0.07 0.04 (0.01)
Net Realized and Unrealized Gain (Loss)
on Investments and Foreign Currency 1.19 0.94 (2.58) (0.26)
---------- -------- ------- ----------
Total from Investment Operations 1.20 1.01 (2.54) (0.27)
---------- -------- ------- ----------
Less Distributions:
Distributions from Net Investment Income (0.04) (0.02) - -
---------- -------- ------- ----------
Net Asset Value per Share, End of Period $ 9.34 $ 8.18 $ 7.19 $ 9.73
========== ======== ======= ==========
Total Return 14.72%(1) 14.14% (26.11)% (2.70)%(2)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $62,937 $57,639 $51,873 $70,212
Ratio of Expenses to Average Net Assets 1.44%(3) 1.41% 1.55% 1.70%(3)
Ratio of Net Investment Income (Loss) to
Average Net Assets 0.31%(3) 0.82% 0.54% (0.09)%(3)
Portfolio Turnover Rate 31.86%(1) 83.76% 74.24% 61.28%(2)
Average Commission Rate Paid by the Fund (4) $ 0.00 $ 0.00 N/A N/A
</TABLE>
(1) For the six months ended April 30, 1997 and not indicative of a full year's
operating results.
(2) For the period March 1, 1994 (commencement of operations) through October
31, 1994 and not indicative of a full year's operating results.
(3) Annualized.
(4) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for security
trades on which commissions are charged. This amount may vary from period
to period and fund to fund depending on the mix of trades executed in
various markets where trading practices and commission rate structures may
differ.
94
<PAGE>
TCW Galileo Latin America Equity Fund
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
March 1, 1993
Six Months Ended Year Ended October 31, Ten Months (Commencement of
April 30, 1997 ----------------------- Ended Operations) through
(Unaudited) 1996 1995 October 31, 1994 December 31, 1993
----------- ---------- ---------- ---------------- -----------------
<S> <C> <C> <C> <C> <C>
Net Asset Value per Share, Beginning
of Period $ 10.01 $ 7.92 $ 14.99 $ 15.11 $ 10.00
------- ------- ------- -------- -------
Income (Loss) from Investment Operations:
Net Investment Income 0.08 0.11 0.06 0.01 0.08
Net Realized and Unrealized Gain (Loss)
on Investments and Foreign Currency 2.53 2.03 (5.92) (0.13) 6.35
------- ------- ------- -------- -------
Total from Investment Operations 2.61 2.14 (5.86) (0.12) 6.43
------- ------- ------- -------- -------
Less Distributions:
Distributions from Net Investment Income (0.09) (0.05) - - (0.08)
Distributions from Net Realized Gains - - - - (1.21)
Distributions in Excess of Net Realized
Gains - - (1.21) - (0.03)
------- ------- ------- --------- -------
Total Distributions (0.09) (0.05) (1.21) - (1.32)
------- ------- ------- --------- -------
Net Asset Value per Share, End of Period $ 12.53 $ 10.01 $ 7.92 $ 14.99 $ 15.11
======= ======= ======= ========= =======
Total Return 26.26%(1) 27.08% (40.95)% (0.79)%(2) 64.27%(3)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $82,345 $68,323 $38,942 $ 122,610 $89,910
Ratio of Expenses to Average
Net Assets 1.39%(4) 1.44% 1.58% 1.36%(4) 1.50%(4)(5)
Ratio of Net Investment Income to Average
Net Assets 1.50%(4) 1.12% 0.59%(5) 0.11%(4)(5) 0.77%(4)(5)
Portfolio Turnover Rate 12.04%(1) 44.32% 75.62% 143.65%(2) 120.06%(3)
Average Commission Rate Paid by the Fund(6) $ 0.00 $ 0.00 N/A N/A N/A
</TABLE>
(1) For the six months ended April 30, 1997 and not indicative of a full year's
operating results.
(2) For the ten months ended October 31, 1994 and not indicative of a full
year's operating results.
(3) For the period March 1, 1993 (commencement of operations) through December
31, 1993 and not indicative of a full year's operating results.
(4) Annualized.
(5) The Investment Adviser had voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund, to the extent necessary to limit the
annual ordinary operating expenses of the Fund to 1.50% of net assets
through December 31, 1994. Had such action not been taken, total annualized
operating expenses as a percentage of average net assets would have been
1.52% for the period March 1, 1993 (commencement of operations) through
December 31, 1993.
(6) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for security
trades on which commissions are charged. This amount may vary from period
to period and fund to fund depending on the mix of trades executed in
various markets where trading practices and commission rate structures may
differ.
95
<PAGE>
TCW GALILEO FUNDS, INC.
SHAREHOLDER INFORMATION
- -----------------------
DIRECTORS AND OFFICERS
Marc I. Stern
Director and Chairman of the Board
Thomas E. Larkin, Jr.
Director and President
John C. Argue
Director
Norman Barker, Jr.
Director
Richard W. Call
Director
Alvin R. Albe, Jr.
Senior Vice President
Michael E. Cahill
Senior Vice President,
General Counsel and Assistant Secretary
Ronald E. Robison
Senior Vice President
David K. Sandie
Senior Vice President and Treasurer
Philip K. Holl
Secretary
Marie M. Bender
Assistant Secretary
Hilary G.D. Lord
Assistant Secretary
INVESTMENT ADVISER
TCW Funds Management, Inc.
865 South Figueroa Street
Los Angeles, California 90017
(213) 244-0000
SUB-ADVISERS
TCW Asia Limited
Suite 1308, One Pacific Place
88 Queensway
Hong Kong
TCW London International, Limited
Birkett House
27 Albemarle Street
London W1X3FA
CUSTODIAN
BNY Western Trust Company
700 South Flower Street
Suite 200
Los Angeles, California 90017
TRANSFER AGENT
DST Systems, Inc.
811 Main Street
Kansas City, Missouri 64105
DISTRIBUTOR
TCW Brokerage Services
865 South Figueroa Street
Los Angeles, California 90017
(213) 244-0000
INDEPENDENT AUDITORS
Deloitte & Touche LLP
1000 Wilshire Boulevard
Los Angeles, California 90017
96
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<PAGE>
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98
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