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Previous: TCW GALILEO FUNDS INC, N-30D, 1998-06-29 |
Next: EVERGREEN FIXED INCOME TRUST, NSAR-B, 1998-06-29 |
<PAGE>
TCW GALILEO FUNDS, INC.
(INTERNATIONAL)
SEMI-ANNUAL REPORT
APRIL 30, 1998
<PAGE>
TCW GALILEO FUNDS, INC.
(International)
TABLE OF CONTENTS
- -----------------
Letter to Shareholders.................................................. 3
Performance Summary..................................................... 4
Schedules of Investments:
TCW Galileo Asia Pacific Equity Fund................................. 5
TCW Galileo Emerging Markets Fund.................................... 7
TCW Galileo European Equities Fund................................... 13
TCW Galileo International Equities Fund.............................. 16
TCW Galileo Japanese Equities Fund................................... 17
TCW Galileo Latin America Equity Fund................................ 19
Statements of Assets and Liabilities.................................... 22
Statements of Operations................................................ 24
Statements of Changes in Net Assets..................................... 26
Notes to Financial Statements........................................... 32
Financial Highlights.................................................... 39
Shareholder Information................................................. 46
1
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK.
2
<PAGE>
TCW GALILEO FUNDS, INC.
(International)
TO OUR SHAREHOLDERS
- -------------------
We are pleased to submit the April 30, 1998 Semi-Annual Reports for the
TCW Galileo Funds. In our new format, we have separated our reports into three
categories; 1) U.S. Equities Funds, 2) U.S. Fixed Income Funds, and 3)
International Funds to provide more focused information to our shareholders. On
the next page is a summary of each category's respective funds' net asset value
and performance data through April 30, 1998.
TCW is committed to providing you with superior professional investment
management and distinctive personal service through 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 June 1, 1998, we started four new Galileo Mutual Funds; TCW Galileo Large Cap
Growth Fund, TCW Galileo Large Cap Value Fund, TCW Galileo Enhanced 500 Fund and
TCW Galileo Emerging Markets Income Fund. A fifth new Galileo Fund, TCW Galileo
Small Cap Value Fund will commence operations in the next few months. With a
total of 22 Galileo Funds, our shareholders have a wide diversity of Funds to
accomplish their investment objectives.
Please call your Account Representative or our Investor Relations Department at
(800) FUND TCW [(800) 386-3829] if you have any questions or would like further
information on the TCW Galileo Funds.
/s/ Marc I. Stern
Marc I. Stern
Chairman of the Board
June 3, 1998
3
<PAGE>
PERFORMANCE SUMMARY (Unaudited)
- ------------------------------
<TABLE>
<CAPTION>
Net Asset Value Total Return - Annualized
per Share As of April 30, 1998
--------------- ---------------------------------------------------------------
Latest Twelve
April 30, Months Ended Latest Since Inception
1998 April 30, 1998 5 Years Inception Date
--------------- -------------- ------- ----------- --------------
<S> <C> <C> <C> <C> <C>
TCW Galileo Asia Pacific Equity
Fund $ 5.62 (31.95)% 3.49% 4.30% /(1)/ 04/01/93 /(2)/
TCW Galileo Emerging Markets
Fund $ 8.56 (7.79)% N/A 5.82% /(1)/ 06/01/93 /(2)/
TCW Galileo European Equities
Fund $ 12.73 N/A N/A 62.05% 11/01/97
TCW Galileo International Equities
Fund $ 11.68 21.74% /(1)/ N/A 8.92% /(1)/ 12/01/93 /(2)/
TCW Galileo Japanese Equities
Fund $ 8.58 (24.42)% /(1)/ N/A (18.64)% /(1)/ 05/01/95 /(2)/
TCW Galileo Latin America Equity
Fund $ 13.53 8.13% 9.73% 13.33% /(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 the predecessor limited partnership.
4
<PAGE>
TCW GALILEO FUNDS, INC.
(International)
TCW GALILEO ASIA PACIFIC EQUITY FUND
April 30, 1998
SCHEDULE OF INVESTMENTS (Unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
Number of
Shares or
Warrants EQUITY SECURITIES VALUE
- --------- ----------------- --------------
<S> <C> <C>
HONG KONG (45.5% of Net Assets)
395,000 Beijing Datang Power Generation Company, Limited $ 160,569
111,000 Cheung Kong Holdings, Limited 737,708
115,000 CLP Holdings, Limited 552,071
455,000 China Telecom (Hong Kong), Limited 863,144 **
105,000 Citic Pacific, Limited 322,493
11,000 Hang Seng Bank, Limited 92,625
285,200 Hong Kong Telecommunications, Limited 533,669
31,400 HSBC Holdings Public Company, Limited 895,522
113,000 Hutchison Whampoa, Limited 698,503
17,000 Legend Holdings, Limited 7,294 **
29,000 New World Development Company, Limited 82,520 **
94,200 New World Infrastructure, Limited 202,404 **
26,000 Shanghai Industrial Holdings, Limited 89,083 **
88,000 Smartone Telecommunications 231,101
63,000 Sun Hung Kai Properties, Limited 373,984
--------------
TOTAL HONG KONG (Cost: $6,460,153) 5,842,690
--------------
INDIA (4.4%)
16,100 Mahindra & Mahindra Limited (GDR) 119,945 **
17,600 State Bank of India (GDR) 334,400 **
8,800 Videsh Sanchar Nigam, Limited (GDR) 107,800 **
--------------
TOTAL INDIA (Cost: $563,903) 562,145
--------------
PHILIPPINES (3.5%)
259,200 Ayala Land, Inc. 101,426
247,000 Jollibee Foods Corporation,Warrants, expire 03/25/03 111,994 **
8,700 Philippine Long Distance Telephone Company 232,360
--------------
TOTAL PHILIPPINES (Cost: $481,926) 445,780
--------------
SINGAPORE (9.1%)
19,500 Development Bank of Singapore, Limited (Foreign Registered) 129,180
22,000 Electrical & Eltek International Company, Limited 127,600
100,000 Keppel Corporation, Limited 118,612
25,520 Singapore Press Holdings, Limited 281,767
315,397 Singapore Technologies Engineering, Limited 270,625
139,000 Singapore Telecommunications, Limited 238,536
---------------
TOTAL SINGAPORE (Cost: $1,189,431) 1,166,320
---------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
5
<PAGE>
TCW GALILEO ASIA PACIFIC EQUITY FUND
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
Number of
Shares or
Rights EQUITY SECURITIES Value
- ------------ ----------------- -------------
<S> <C> <C>
SOUTH KOREA (5.4%)
8,000 L.G. Chemical, Limited $ 61,584 **
1,000 Pohang Iron & Steel Company, Limited 53,251 **
3,000 Samsung Display Devices Company 149,103 **
3,000 Samsung Display Devices Company, Rights, expire 5/13/98 7,529 **
4,600 Samsung Electronics Company, Limited 254,410 **
365 Samsung Electronics Company, Limited, Rights, expire 06/01/98 7,038 **
565 Samsung Fire & Marine Insurance 166,798 **
-----------
TOTAL SOUTH KOREA (Cost: $632,054) 699,713
-----------
TAIWAN (16.4%)
34,000 Asustek Computer, Inc. (GDR) 697,000 **
25,000 Fubon Insurance Company (144A) (GDR) 507,500 * **
37,000 Taiwan Semiconductor Manufacturing Company, Limited (ADR) 908,831 **
-----------
TOTAL TAIWAN (Cost: $2,112,460) 2,113,331
-----------
THAILAND (7.1%)
78,000 Electricity Generating Public Company, Limited (Foreign Registered) 151,163 **
25,000 Hana Microelectronics Public Company, Limited (Foreign Registered) 109,173 **
257,727 MBK Properties and Development Public Company, Limited (Foreign Registered) 183,139 **
507,000 National Finance & Securities Public Company, Limited (Foreign Registered) 225,988 **
108,100 Thai Farmer's Bank Public Company, Limited (Foreign Registered) 247,206 **
-----------
TOTAL THAILAND (Cost: $849,872) 916,669
-----------
TOTAL EQUITY SECURITIES (Cost: $12,289,799) (91.4%) 11,746,648
-----------
Principal
Amount SHORT-TERM INVESTMENT (Cost: $898,678) (7.0%)
- ------------ -------------------------------------------------------
$ 898,678 Bank of New York Depository Reserve, 4.6%, due 05/01/98 898,678
-----------
TOTAL INVESTMENTS (Cost: $13,188,477) (98.4%) 12,645,326
EXCESS OF OTHER ASSETS OVER LIABILITIES (1.6%) 210,614
-----------
NET ASSETS (100%) $12,855,940
===========
</TABLE>
* Restricted Security. (See Note 6)
** Non-income producing.
See accompanying Notes to Financial Statements.
6
<PAGE>
TCW GALILEO FUNDS, INC.
(International)
TCW GALILEO EMERGING MARKETS FUND
April 30, 1998
SCHEDULE OF INVESTMENTS (Unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- -------------- ----------------- --------------
<S> <C> <C>
COMMON STOCK
------------
ARGENTINA (5.7% of Net Assets)
9,327 Banco de Galicia y Buenos Aires, S.A. (ADR) $ 228,512
29,178 CEI Citicorp Holdings, S.A. 122,562 **
38,693 Perez Companc, S.A., Series B 232,573
79,198 Siderca, S.A., Series A 190,890
8,300 Telecom Argentina, STET-France Telecom, S.A., Series B (ADR) 298,800
11,150 Telefonica de Argentina, Sociedad Anonima, Series B (ADR) 429,972
10,000 Transportadora de Gas del Sur, S.A., (ADR) 115,625 **
13,126 Yacimientos Petroliferos Fiscales Sociedad del Estado, Series D (ADR) 457,769
-------------
TOTAL ARGENTINA (Cost: $1,791,992) 2,076,703
-------------
BRAZIL (8.7%)
18,325 Companhia Energetica De Minas Gerais (CEMIG) (ADR) 883,036
200,000 Light-Servicos de Electricidade, S.A. 80,448
7,380,000 Telecomunicacoes Brasileiras, S.A. (TELEBRAS) 732,450
11,580 Telecomunicacoes Brasileiras, S.A. (TELEBRAS) (ADR) 1,410,589 **
165,883 Telecomunicacoes de Sao Paulo, S.A. (TELESP) 43,298
-------------
TOTAL BRAZIL (Cost: $2,383,060) 3,149,821
-------------
CHILE (3.6%)
8,300 Banco Santander Chile, Series A (ADR) 116,200 **
5,500 Chilectra, S.A. (144A) (ADR) 151,594 *
7,847 Compania de Telecomunicaciones de Chile, S.A., Series A (ADR) 196,665
13,860 Embotelladora Andina, S.A., Series A (ADR) 312,716
9,060 Embotelladora Andina, S.A., Series B (ADR) 183,465
8,440 Laboratorio Chile, S.A. (ADR) 166,690 **
5,600 Vina Concha y Toro, S.A. (ADR) 182,000
-------------
TOTAL CHILE (Cost: $1,212,168) 1,309,330
-------------
COLOMBIA (2.2%)
13,900 Almacenes Exito, S.A. 34,623
31,613 Banco de Bogota 132,010
7,450 BanColombia, S.A. (ADR) 112,681
31,850 Bavaria CB 202,977
22,770 Compania Nacional de Chocolates, S.A. 116,769
9,000 Suramericana de Inversiones, S.A. 138,462
31,850 Valores Bavaria, S.A. 79,333 **
-------------
TOTAL COLOMBIA (Cost: $1,102,855) 816,855
-------------
</TABLE>
* Restricted Security. (See Note 6)
** Non-income producing.
See accompanying Notes to Financial Statements.
7
<PAGE>
TCW GALILEO EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares EQUITY SECURITIES Value
- --------------- ----------------- -------------
<S> <C> <C>
EGYPT (0.9%)
8,250 Commercial International Bank (144A) (GDR) $ 139,425 * **
9,500 Suez Cement Company (144A) (GDR) 193,325 * **
-------------
TOTAL EGYPT (Cost: $388,394) 332,750
-------------
GREECE (4.7%)
4,860 Alpha Credit Bank 512,950
22,900 Hellenic Telecommunication Organization, S.A. 656,077
6,300 Titan Cement Company, S.A. 539,473 **
-------------
TOTAL GREECE (Cost: $1,166,388) 1,708,500
-------------
HONG KONG (2.5%)
588,000 Beijing Datang Power Generation Company, Limited 239,024
160,000 China Telecom (Hong Kong), Limited 303,523 **
221,000 Legend Holdings, Limited 94,828 **
59,400 New World Infrastructure, Limited 127,631 **
46,000 Shanghai Industrial Holdings, Limited 157,607 **
-------------
TOTAL HONG KONG (Cost: $1,026,436) 922,613
-------------
HUNGARY (2.6%)
2,200 Gedeon Richter (144A) (ADR) 234,300 * **
9,700 Magyar Tavkozlesi (Matav) Rt. 286,150 **
14,383 Mol Magyar Olaj-es Gazipari Rt. (144A) (GDR) 440,120 * **
-------------
TOTAL HUNGARY (Cost: $638,638) 960,570
-------------
INDIA (3.0%)
13,500 Hindalco Industries, Limited (GDR) 263,250 **
24,000 Mahanagar Telephone Nigam, Limited (144A) (GDR) 387,000 * **
12,300 State Bank of India (GDR) 233,700 **
17,500 Videsh Sanchar Nigam, Limited (GDR) 214,375 **
-------------
TOTAL INDIA (Cost: $1,073,419) 1,098,325
-------------
IRELAND (COST: $275,000) (0.4%)
27,500 Central Asia Investment Company, Limited 137,500 **
-------------
ISRAEL (1.4%)
2,990 NICE-Systems, Limited, (ADR) 128,570 **
8,580 Teva Pharmaceutical Industries, Limited, (ADR) 366,795
-------------
TOTAL ISRAEL (Cost: $509,882) 495,365
-------------
</TABLE>
* Restricted Security. (See Note 6)
** Non-income producing.
See accompanying Notes to Financial Statements.
8
<PAGE>
TCW GALILEO FUNDS, INC.
(International)
April 30, 1998
<TABLE>
<CAPTION>
Number of
Shares
or Warrants EQUITY SECURITIES Value
- --------------- ----------------- -------------
<S> <C> <C>
LATIN AMERICAN REGIONAL (Cost: $129,512) (0.7%)
6,370 Panamerican Beverages, Inc. (ADR) $ 254,004 **
-------------
MEXICO (14.7%)
41,700 Apasco, S.A.de C.V. 282,745
95,000 Cemex, S.A. de C.V., Series B 570,335 **
294,100 Cifra, S.A. de C.V., Series C 499,226 **
18,300 DESC, S.A. de C.V., Series B 127,098 **
35,700 Fomento Economico Mexicano, S.A. de C.V., Series B 263,915 **
45,600 GRUPO CARSO, S.A. De C.V., Series A1 286,644 **
56,791 Grupo Financiero Inbursa, S.A. de C.V., Series B 173,147 **
112,200 Grupo Industrial Bimbo, S.A. de C.V., Series A 281,325
34,300 Grupo Modelo, S.A. de C.V., Series C 323,821 **
12,710 Grupo Televisa, S.A. de C.V. (ADR) 521,110 **
123,700 Kimberly-Clark de Mexico, S.A. de C.V., Series A 606,487
11,000 Organizacion Soriana, S.A. de C.V., Series B 41,501 **
19,935 Telefonos de Mexico, S.A. de C.V. (ADR) 1,128,819
11,780 Tubos de Acero de Mexico, S.A. de C.V. (ADR) 216,458 **
-------------
TOTAL MEXICO (Cost: $3,978,293) 5,322,631
-------------
PERU (1.3%)
88,725 Cementos Lima, S.A., Class T 193,303
186,734 Union de Cerveceria Peruanas Backus y Johnston, S.A., Class T 145,062
15,094 Compania de Minas Buenaventura, S. A., Series B 117,256
-------------
TOTAL PERU (Cost: $386,925) 455,621
-------------
PHILIPPINES (2.2%)
674,000 Jollibee Foods Corporation, Warrants, expire 03/25/03 305,602 **
17,800 Philippine Long Distance Telephone Company 475,404
-------------
TOTAL PHILIPPINES (Cost: $842,929) 781,006
-------------
POLAND (2.2%)
1,580 International Trading & Investments Holdings, S.A. (GDR) 395,000 **
42,500 Polifarb Cieszyn-Wroclaw, S.A. 157,546 **
4,428 Powszechne Swiadectwo Udzialowe 146,558 **
1,064 Zaklady Piwowarskie w Zywcu, S.A. (ZYWIEC) 105,805 **
-------------
TOTAL POLAND (Cost: $812,941) 804,909
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
9
<PAGE>
TCW GALILEO EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Rights EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
PORTUGAL (1.0%)
3,700 Banco Espirito Santo e Comercial de Lisboa, S.A. $ 176,937 **
6,800 Banco Pinto & Sotto Mayor 171,090 **
-------------
TOTAL PORTUGAL (Cost: $371,031) 348,027
-------------
RUSSIA (2.5%)
26,500 Gazprom (144A) (ADR) 488,925 * **
1,600 Gorkovsky Auto Plant 221,280 **
58,000 Rostelecom 209,612 **
-------------
TOTAL RUSSIA (Cost: $1,042,584) 919,817
-------------
SOUTH AFRICA (8.8%)
6,400 Anglo American Corporation of South Africa 378,444 **
5,550 Anglogold, Limited 294,156 **
27,860 Barlow, Limited 269,151 **
6,720 De Beers Centenary, A.G. 174,097 **
16,222 Johnnies Industrial Corp., Limited 234,195
12,480 Liberty Life Association of Africa, Limited 422,047
12,100 Nedcor, Limited 344,586
97,000 New Africa Investments, Limited, Series N 120,854 **
115,260 New Clicks Holdings, Limited 182,355 **
15,185 South African Breweries, Limited 509,320 **
69,400 Wooltru, Limited, Series N 247,048
-------------
TOTAL SOUTH AFRICA (Cost: $2,934,795) 3,176,253
-------------
SOUTH KOREA (4.4%)
25,000 L.G. Chemical, Limited 192,451 **
5,500 Pohang Iron & Steel Company, Limited 292,881 **
12,000 Samsung Electronics Company, Limited 663,677 **
954 Samsung Electronics Company, Limited, Rights, expire 06/01/98 18,396 **
1,470 Samsung Fire & Marine Insurance 433,969 **
-------------
TOTAL SOUTH KOREA (Cost: $1,551,106) 1,601,374
-------------
TAIWAN (5.8%)
33,300 Asustek Computer, Inc. (GDR) 682,650 **
7,000 Fubon Insurance Company (144A) (GDR) 142,100 * **
7,800 Synnex Technology International Corp. (GDR) 177,450 **
25,000 Taiwan Index Fund, Limited 306,250 **
31,900 Taiwan Semiconductor Manufacturing Company, Limited (ADR) 783,560 **
-------------
TOTAL TAIWAN (Cost: $2,127,929) 2,092,010
-------------
</TABLE>
* Restricted Security. (See Note 6)
** Non-income producing.
See accompanying Notes to Financial Statements.
10
<PAGE>
TCW GALILEO FUNDS, INC.
(International)
April 30, 1998
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
THAILAND (2.9%)
40,000 Hana Microelectronics Public Company, Limited (Foreign Registered) $ 174,677 **
339,954 MBK Properties and Development Public Company, Limited (Foreign Registered) 241,569 **
446,000 National Finance & Securities Public Company, Limited (Foreign Registered) 198,798 **
194,400 Thai Farmer's Bank Public Company, Limited (Foreign Registered) 444,558 **
-------------
TOTAL THAILAND (Cost: $944,438) 1,059,602
-------------
TURKEY (5.6%)
3,200,000 Akbank, A.S. 271,783 **
7,500,000 Aksigorta, A.S. 554,556 **
2,100,000 Efes Sinai Yatirim Holdings, A.S., Series B 402,878 **
783,000 KOC Holdings, A.S. 165,863 **
1,230,000 Netas Northern Electric Telekomunikasyon, A.S. 457,194 **
3,629,999 Trakya Cam Sanayii, A.S. 181,355 **
-------------
TOTAL TURKEY (Cost: $1,848,002) 2,033,629
-------------
TOTAL COMMON STOCK (Cost: $28,538,717) (87.8%) 31,857,215
-------------
PREFERRED STOCK
---------------
ARGENTINA (Cost: $163,555) (0.4%)
12,750 Quilmes Industrial, S.A. (ADR) 141,047 **
-------------
BRAZIL (4.6%)
2,728,890 Centrais Eletricas Brasileiras, S.A. (ELECTROBRAS), Series B 121,721
354,677 Companhia Cervejaria Brahma 231,055
6,822 Compania Riograndense de Telecomunicacoes 9,008 **
8,108 Companhia Vale do Rio Doce 191,427
262,000 Itausa - Investimentos Itau, S.A. 222,228
1,617,000 Petroleo Brasileiro, S.A. (PETROBRAS) 410,047
1,292,166 Telecomunicacoes Brasileiras, S.A. (TELEBRAS) 157,736
946,282 Telecomunicacoes de Sao Paulo, S.A. (TELESP) 321,882
-------------
TOTAL BRAZIL (Cost: $1,176,396) 1 ,665,104
-------------
TOTAL PREFERRED STOCK (Cost: $1,339,951) (5.0%) 1 ,806,151
-------------
TOTAL EQUITY SECURITIES (Cost: $29,878,668) (92.8%) 33,663,366
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
11
<PAGE>
TCW GALILEO EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount OTHER INVESTMENTS Value
- -------------- ----------------- -------------
<S> <C> <C>
SHORT-TERM INVESTMENT (Cost: $2,503,229) (6.9%)
-----------------------------------------------
$ 2,503,229 Bank of New York Depository Reserve, 4.6%, due 05/01/98 $ 2,503,229
-------------
TOTAL INVESTMENTS (Cost: $32,381,897) (99.7%) 36,166,595
EXCESS OF OTHER ASSETS OVER LIABILITIES (0.3%) 118,928
-------------
NET ASSETS (100%) $ 36,285,523
=============
</TABLE>
See accompanying Notes to Financial Statements.
12
<PAGE>
TCW GALILEO FUNDS, INC.
(International)
TCW GALILEO EUROPEAN EQUITIES FUND
April 30, 1998
SCHEDULE OF INVESTMENTS (Unaudited)
<TABLE>
<CAPTION>
Number of
Shares
or Warrants EQUITY SECURITIES Value
- ------------- ----------------- -------------
<S> <C> <C>
COMMON STOCK
------------
FINLAND (2.4% of NET ASSETS)
4,402 Nokia, OYJ $ 292,325
17,684 Nokia, Series A 1,184,081
-------------
TOTAL FINLAND (Cost: $765,568) 1,476,406
-------------
FRANCE (16.4%)
3,569 Accor, S.A. 971,935
5,895 Alcatel Alsthom (Cie Gen El) 1,092,120
11,197 Axa, S.A. 1,313,464
12,190 Banque Nationale De Paris 1,026,889
8,896 Cap Gemini, S.A. 1,154,403
9,875 Compagnie Generale Des Eaux 1,834,386
4,341 Compagnie Generale Des Eaux, Warrants, expire 05/02/01 6,311 **
140 Michelin (C.G.D.E.), Class B 8,814
14,631 Total, S.A., Class B 1,738,168
9,721 Valeo, S.A. 965,882
-------------
TOTAL FRANCE (Cost: $6,810,593) 10,112,372
-------------
GERMANY (9.8%)
5,087 Adidas-Salomon AG 843,110
799 Bayer AG 881,348
37,477 Commerzbank AG 1,444,796
1,241 Mannesmann AG 984,504
2,179 SAP AG 1,031,838
24,935 Tarkett Sommer AG 861,265 **
-------------
TOTAL GERMANY (Cost: $4,332,025) 6,046,861
-------------
GREAT BRITAIN (29.1%)
85,773 Abbey National, PLC 1,610,485
60,909 British Aerospace, PLC 2,034,713
114,860 British Airways, PLC 1,207,941
97,082 Dixons Group, PLC 926,183
78,338 General Electric Company, PLC 644,085
82,602 Kingfisher, PLC 1,500,536
60,635 Land Securities, PLC 1,082,732
280,823 Lucas Variety, PLC 1,258,327
61,536 National Westminster Bank, PLC 1,224,629
69,983 Pearson, PLC 1,097,543
41,318 PizzaExpress, PLC 539,704
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
13
<PAGE>
TCW GALILEO EUROPEAN EQUITIES FUND
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
Number of
Shares, Rights
or Warrants EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
GREAT BRITAIN (Continued)
46,672 Reckitt & Coleman, PLC $ 940,307
109,646 Royal & Sun Alliance Insurance Group, PLC 1,217,729
103,612 SmithKline Beecham, PLC 1,236,900
122,052 Vodafone Group, PLC 1,340,205
-------------
TOTAL GREAT BRITAIN (Cost: $14,155,711) 17,862,019
-------------
IRELAND (Cost: $448,648) (0.9%)
8,962 Elan Corp., PLC (ADR) 556,764
-------------
ITALY (8.6%)
129,112 Banco Ambrosiano, Warrants, expire 05/31/02 156,634 **
134,326 Eni, S.p.A. 899,548
202,050 Credito Italiano 1,056,930
199,500 Fiat, S.p.A. 793,498
795,000 Seat, S.p.A. 596,082 **
238,550 Telecom Italia Mobile, S.p.A. 1,796,022 **
-------------
TOTAL ITALY (Cost: $4,727,107) 5,298,714
-------------
NETHERLANDS (9.7%)
5,050 Akzo, N.V. 1,026,585
14,934 ASM Lithography 1,354,682 **
30,029 Internationale Nederlanden Groep 1,950,147 **
18,395 Philips Electronics, N.V. 1,619,502
-------------
TOTAL NETHERLANDS (Cost: $4,451,698) 5,950,916
-------------
SPAIN (4.7%)
23,021 Repsol, S.A. 1,260,742
38,142 Telefonica de Espana, S.A. 1,591,022
38,142 Telefonica de Espana, S.A., Rights, expire 05/07/98 30,929 **
-------------
TOTAL SPAIN (Cost: $2,040,336) 2,882,693
-------------
SWEDEN (4.5%)
105,750 ABB AB 1,638,265
17,625 Autoliv, Inc. 534,711
77,341 Nordbanken Holding AB 569,124
-------------
TOTAL SWEDEN (Cost: $2,502,214) 2,742,100
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
14
<PAGE>
TCW GALILEO FUNDS, INC.
(International)
April 30, 1998
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- ---------------- ----------------- -------------
<S> <C> <C>
SWITZERLAND (11.0%)
3,314 Adecco, S.A. $ 1,445,957
6,721 Ciba Specialty Chemicals Holding Inc. 812,591 **
613 Nestle, S.A. 1,188,269
894 Novartis AG 1,476,898
88 Roche Holding AG Genussshein 891,314
1,506 Zurich Insurance 916,922
-------------
TOTAL SWITZERLAND (Cost: $5,198,344) 6,731,951
-------------
TOTAL COMMON STOCK (Cost: $45,432,244) (97.1%) 59,660,796
-------------
PREFERRED STOCK (Cost: $311,194)
--------------------------------
GERMANY (0.5%)
180 Hugo Boss 328,412
-------------
TOTAL EQUITY SECURITIES (Cost: $45,743,438) (97.6%) 59,989,208
-------------
Principal
Amount CONVERTIBLE SECURITIES (Cost: $62,903)
- ----------------- ---------------------------------------
ITALY (0.1%)
ITL 112,973,000 Banco Ambrosiano, 3.15%, due 01/01/03 63,418
-------------
SHORT-TERM INVESTMENTS
----------------------
$ 1,014,438 Bank of New York Depository Reserve, 4.6%, due 05/01/98 1,014,438
1,488,504 Foreign Currency Call Accounts 1,491,516
-------------
TOTAL SHORT-TERM INVESTMENTS (Cost: $2,502,942) (4.1%) 2,505,954
-------------
TOTAL INVESTMENTS (Cost: $48,309,283) (101.8%) 62,558,580
LIABILITIES IN EXCESS OF OTHER ASSETS (-1.8%) (1,092,285)
-------------
NET ASSETS (100%) $ 61,466,295
=============
</TABLE>
ITL - Italian Lira.
** Non-income producing.
See accompanying Notes to Financial Statements.
15
<PAGE>
TCW GALILEO INTERNATIONAL EQUITIES FUND
SCHEDULE OF INVESTMENTS (Unaudited)
<TABLE>
<CAPTION>
Number
of Shares INVESTMENT COMPANIES Value
- -------------- -------------------- -------------
<S> <C> <C>
TCW GALILEO MUTUAL FUNDS
628,326 TCW Galileo Asia Pacific Equity Fund $ 3,531,192
4,727,655 TCW Galileo European Equities Fund 60,183,048
1,290,374 TCW Galileo Japanese Equities Fund 11,071,409
177,564 TCW Galileo Latin America Equity Fund 2,402,441
360,000 TCW Galileo Money Market Fund 360,000
-------------
TOTAL TCW GALILEO MUTUAL FUNDS (Cost: $67,000,307) (97.0%) 77,548,090
-------------
Principal
Amount SHORT-TERM INVESTMENT (Cost: $2,402,610) (3.0%)
- -------------- -----------------------------------------------
$ 2,402,610 Bank of New York Depository Reserve, 4.6%, due 05/01/98 2,402,610
-------------
TOTAL INVESTMENTS (Cost: $69,402,917) (100.0%) 79,950,700
EXCESS OF OTHER ASSETS OVER LIABILITIES (0.0%) 7,384
-------------
NET ASSETS (100%) $ 79,958,084
=============
</TABLE>
See accompanying Notes to Financial Statements.
16
<PAGE>
TCW GALILEO FUNDS, INC.
(International)
TCW GALILEO JAPANESE EQUITIES FUND
April 30, 1998
SCHEDULE OF INVESTMENTS (Unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
Number of
Shares
or Warrants EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
COMMON STOCK
JAPAN (77.8% of Net Assets)
7,000 Autobacs Seven Company, Limited $ 232,225
42,000 Cleanup Corporation 158,969 **
7,000 Fuji Photo Film Company 248,586 **
27,000 Fujisawa Pharmaceutical Company, Limited 262,407
55,000 Fuso Pharmaceutical Industries, Limited 163,387 **
1,000 Gunze, Limited 2,224
35,000 Heiwa Corporation 368,129 **
65,000 Hitachi, Limited 465,091 **
100,000 Kawasaki Steel Corporation 135,716
80,000 Meiji Seika 254,543
40,000 Mitsubishi Estate Company, Limited 386,036 **
100,000 Mitsubishi Heavy Industries, Limited 369,449 **
80,000 Mitsui Marine and Fire Insurance Company, Limited 409,560 **
16,000 Murata Manufacturing Company, Limited 459,625 **
75,000 NCR Japan, Limited 337,028
45,000 NEC Corporation 505,542 **
2,000 Nintendo Company, Limited 180,351 **
70 Nippon Telegraph & Telephone Corporation 612,230
77,000 Nissan Fire & Marine Insurance Company, Limited 278,670
35,000 Nomura Securities Company, Limited 426,185
5 NTT Data Corporation 215,637 **
30,000 S.T. Chemical Company, Limited 108,120
39,000 Sagami Company, Limited 88,509 **
10,000 Satori Electric Company, Limited 110,081 **
28,000 Seikagaku Corporation 152,002
40,000 Shimadzu Corporation 127,875
40 Shin Nippon Air Technologies Company, Limited 200
23,000 Shin-etsu Chemical Company, Limited 447,410 **
21,000 Shiseido Company, Limited 276,295 **
6,000 Sony Corporation 498,077
21,000 Tasaki Shinju Company, Limited 72,834
750 Tasaki Shinju Company, Limited, Warrants, expire 10/09/99 1,998 **
68,000 Toshiba Coporation 314,801
48,000 Toshiba Plant Kensetsu Company, Limited 144,764 **
-------------
TOTAL EQUITY SECURITIES (Cost: $10,332,040) 8,814,556
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
17
<PAGE>
TCW GALILEO JAPANESE EQUITIES FUND
SCHEDULE OF INVESTMENTS (Unaudited)(Continued)
- ----------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount CONVERTIBLE SECURITIES Value
- -------------- ---------------------- -------------
<S> <C> <C>
JAPAN (20.3%)
(Y)100,000,000 AB International Cayman, Convertible Bond, 0.5%, due 08/01/07 $ 580,562
21,000,000 Matsushita Electric Industries, Convertible Bond, 1.4%, due 03/31/04 214,544
53,000,000 Nippon Ceramic Company, Convertible Bond, 1%, due 12/30/02 397,610
70,000,000 Nitto Denko Corporation, Convertible Bond, 2.2%, due 03/31/99 570,535
60,000,000 Ricoh Company, Limited, Convertible Bond, 0.35%, due 03/31/03 543,316
-------------
TOTAL CONVERTIBLE SECURITIES (Cost: $2,355,452) 2,306,567
-------------
TOTAL INVESTMENTS (Cost: $12,687,492) (98.1%) 11,121,123
EXCESS OF OTHER ASSETS OVER LIABILITIES (1.9%) 214,728
-------------
NET ASSETS (100%) $ 11,335,851
=============
</TABLE>
(Y) - Japanese Yen.
See accompanying Notes to Financial Statements.
18
<PAGE>
TCW GALILEO FUNDS, INC.
(International)
TCW GALILEO LATIN AMERICA EQUITY FUND
April 30, 1998
SCHEDULE OF INVESTMENTS (Unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
----------- ----------------- ------------
<S> <C> <C>
COMMON STOCK
------------
ARGENTINA (8.9% of Net Assets)
13,073 Banco de Galicia y Buenos Aires, S.A. (ADR) $ 320,288
81,967 Perez Companc, S.A., Series B 492,681
139,238 Siderca, S.A., Series A 335,604
12,723 Telecom Argentina STET - France Telecom, S.A., Series B 91,617
9,850 Telecom Argentina STET - France Telecom, S.A., Series B (ADR) 354,600
14,190 Telefonica de Argentina, Sociedad Anonima, Series B (ADR) 547,202
1,600 Transportadora de Gas del Sur, S.A. (ADR) 18,500 **
22,570 Yacimientos Petroliferos Fiscales Sociedad del Estado, Series D (ADR) 787,129
------------
TOTAL ARGENTINA (Cost: $2,163,921) 2,947,621
------------
BRAZIL (15.1%)
8,720,330 Centrais Electricas Brasileiras, S.A., (ELECTROBRAS) 358,391
1,949,000 Companhia de Saneamento Basico de Estado de Sao Paulo 443,109
610,000 Light-Servicos de Electricidade, S.A. 245,365
32,425 Telecomunicacoes Brasileiras, S.A. (TELEBRAS) (ADR) 3,949,770 **
------------
TOTAL BRAZIL (Cost: $2,798,584) 4,996,635
------------
CHILE (4.0%)
8,440 Banco Santander Chile, Series A (ADR) 118,160 **
9,300 Chilectra, S.A. (144A) (ADR) 256,331 *
7,300 Compania de Telecomunicaciones de Chile, S.A., Series A (ADR) 182,956
30,500 Embotelladora Andina, S.A., Series A (ADR) 329,413
8,250 Laboratorio Chile, S.A.(ADR) 162,938 **
12,191 The Five Arrows Chile Investment Trust, Limited 28,100
7,200 Vina Concha y Toro, S.A. (ADR) 234,000
------------
TOTAL CHILE (Cost: $1,260,432) 1,311,898
------------
COLOMBIA (3.5%)
27,676 Almacenes Exito, S.A. 68,937
41,087 Banco de Bogota 171,572
12,980 BanColombia, S.A. (ADR) 196,322
37,550 Bavaria CB 239,302
23,009 Compania Nacional de Chocolates, S.A. 117,995
17,300 Suramericana de Inversiones, S.A. 266,154
35,850 Valores Bavaria, S.A. 89,297 **
------------
TOTAL COLOMBIA (Cost: $1,587,227) 1,149,579
------------
</TABLE>
* Restricted Security. (See Note 6)
** Non-income producing.
See accompanying Notes to Financial Statements.
19
<PAGE>
TCW GALILEO LATIN AMERICA EQUITY FUND
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
----------- ----------------- ------------
<S> <C> <C>
LATIN AMERICA REGIONAL (Cost: $328,751) (1.3%)
11,100 Panamerican Beverages, Inc. (ADR) $ 443,011 **
------------
MEXICO (38.5%)
95,800 Apasco, S.A. de C.V. 649,568
230,300 Cemex, S.A. de C.V., Series B 1,382,613 **
666,940 Cifra, S.A. de C.V., Series C 1,132,110 **
121,046 Cifra, S.A. de C.V., Series V 212,311 **
49,400 DESC, S.A. de C.V., Series B 343,096 **
83,900 Fomento Economico Mexicano, S.A. de C.V., Series B 620,238 **
105,200 GRUPO CARSO, S.A. de C.V., Series A1 661,292 **
122,239 Grupo Financiero Inbursa, S.A. de C.V., Series B 372,689 **
254,800 Grupo Industrial Bimbo, S.A. de C.V., Series A 638,875
75,700 Grupo Modelo, S.A. de C.V., Series C 714,672 **
31,840 Grupo Televisa, S.A. de C.V. (ADR) 1,305,440 **
288,800 Kimberly-Clark de Mexico, S.A. de C.V., Series A 1,415,953
105,000 Organizacion Soriana, S.A., de C.V., Series B 399,163 **
41,345 Telefonos de Mexico, S.A. de C.V. (ADR) 2,341,161
28,513 Tubos de Acero de Mexico, S.A. de C.V. (ADR) 523,926 **
------------
TOTAL MEXICO (Cost: $8,705,263) 12,713,107
------------
PERU (1.8%)
90,456 Cementos Lima, S.A., Class T 197,074
191,989 Union de Cerveceria Peruanas Backus y Johnston, S.A., Class T 149,144
29,646 Compania de Minas Buenaventura, S.A., Series B 230,301
------------
TOTAL PERU (Cost: $504,123) 576,519
------------
VENEZUELA (1.4%)
159,582 C.A. La Eletricidad de Caracas, S.A.C.A. 97,770
10,310 Compania Anonima Nacional Telefonos de Venezuela (ADR) 345,385
------------
TOTAL VENEZUELA (Cost: $408,470) 443,155
------------
TOTAL COMMON STOCK (Cost: $17,756,771) (74.5%) 24,581,525
------------
PREFERRED STOCK
---------------
ARGENTINA (Cost: $195,251) (0.5%)
15,500 Quilmes Industrial, S.A. (ADR) 171,469 **
------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
20
<PAGE>
TCW GALILEO FUNDS, INC.
(International)
April 30, 1998
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
------------- ----------------- -------------
<S> <C> <C>
BRAZIL (20.7%)
357,700 Banco Itau, S.A. $ 240,844
6,641,800 CENTRAIS ELECTRICAS BRASILEIRAS, S.A. (ELECTROBRAS), Series B 296,256
743,491 Companhia Cervejaria Brahma 484,348
36,260 COMPANHIA ENERGETICA DE MINAS GERAIS (CEMIG) (ADR) 1,747,279
22,080,000 Companhia Paranaense de Energia (COPEL), Series B 308,919
28,942 Companhia Vale do Rio Doce 683,311
827,400 Empresa Nacional de Comercio Redito e Participacoes, S.A. 2,250
569,000 Itausa - Investimentos Itau, S.A. 482,625
4,603,000 Petroleo Brasiliero, S.A. (PETROBRAS) 1,167,252
5,200,000 Telecomunicacoes Brasileiras, S.A. (TELEBRAS) 516,089
2,598,800 Telecomunicacoes de Sao Paulo, S.A. (TELESP) 883,992
-------------
TOTAL BRAZIL (Cost: $5,184,965) 6,813,165
-------------
TOTAL PREFERRED STOCK (Cost: $5,380,216) (21.2%) 6,984,634
-------------
TOTAL EQUITY SECURITIES (Cost: $23,136,987) (95.7%) 31,566,159
-------------
Principal
Amount SHORT-TERM INVESTMENT (Cost: $1,234,289) (3.7%)
------------ -----------------------------------------------
$ 1,234,289 Bank of New York Depository Reserve, 4.6%, due 05/01/98 1,234,289
-------------
TOTAL INVESTMENTS (Cost: $24,371,276) (99.4%) 32,800,448
EXCESS OF OTHER ASSETS OVER LIABILITIES (0.6%) 200,175
-------------
NET ASSETS (100%) $ 33,000,623
=============
</TABLE>
See accompanying Notes to Financial Statements.
21
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES (Unaudited)
- ------------------------------------------------
<TABLE>
<CAPTION>
TCW Galileo TCW Galileo
Asia Pacific Emerging Markets
Equity Fund Fund
-------------- --------------
<S> <C> <C>
ASSETS
Investments, at Value /(1)/ $ 12,645 $ 36,167
Receivables for FundShares Sold - 10
Receivables for Securities Sold 269 583
Accrued Interest and Dividends Receivable 34 93
Deferred Organization Costs 1 1
-------------- --------------
Total Assets 12,949 36,854
-------------- --------------
LIABILITIES
Payables for Fund Shares Redeemed 16 10
Payables for Securities Purchased - 445
Management Fees and Other Accrued Expenses 77 113
-------------- --------------
Total Liabilities 93 568
-------------- --------------
NET ASSETS $ 12,856 $ 36,286
============== ==============
NET ASSETS CONSIST OF:
Paid-in Capital $ 16,279 $ 39,113
Undistributed Net Realized Gain (Loss) on Investments
and Foreign Currency Transactions (2,663) (6,997)
Unrealized Appreciation (Depreciation) on Investments
and Foreign Currency Translations (543) 3,785
Undistributed (Overdistributed) Net Investment Income (217) 385
-------------- --------------
NET ASSETS $ 12,856 $ 36,286
============== ==============
CAPITAL SHARES OUTSTANDING 2,288,777 4,238,437
============== ==============
NET ASSET VALUE PER SHARE $ 5.62 $ 8.56
============== ==============
</TABLE>
(1) The identified cost for the TCW Galileo Asia Pacific Equity Fund, the TCW
Galileo Emerging Markets Fund, the TCW Galileo European Equities Fund, the
TCW Galileo International Equities Fund, the TCW Galileo Japanese Equities
Fund, and the TCW Galileo Latin America Equity Fund at April 30, 1998, was
$13,188, $32,382, $48,310, $69,403, $12,687 and $24,371, respectively.
See accompanying Notes to Financial Statements.
22
<PAGE>
TCW GALILEO FUNDS, INC.
(International)
Dollar Amounts in Thousands
(Except per Share Amounts)
April 30, 1998
<TABLE>
<CAPTION>
TCW GALILEO TCW GALILEO TCW GALILEO TCW GALILEO
EUROPEAN EQUITIES INTERNATIONAL EQUITIES JAPANESE EQUITIES LATIN AMERICA
FUND FUND FUND EQUITY FUND
------------------- ------------------------ ------------------- ---------------
<S> <C> <C> <C>
$ 62,559 $ 79,951 $ 11,121 $ 32,800
25 15 - 25
525 - 523 153
202 8 39 159
6 8 6 -
---------------- --------------- ---------------- --------------
63,317 79,982 11,689 33,137
---------------- --------------- ---------------- --------------
- - - 25
1,764 - 287 -
87 24 66 111
---------------- --------------- ---------------- --------------
1,851 24 353 136
---------------- --------------- ---------------- --------------
$ 61,466 $ 79,958 $ 11,336 $ 33,001
================ =============== ================ ==============
$ 46,399 $ 69,438 $ 18,067 $ 32,373
761 (281) (5,092) (8,861)
14,249 10,548 (1,566) 8,429
57 253 (73) 1,060
---------------- --------------- ---------------- --------------
$ 61,466 $ 79,958 $ 11,336 $ 33,001
================ =============== ================ ==============
4,828,931 6,848,267 1,321,114 2,439,495
================ =============== ================ ==============
$ 12.73 $ 11.68 $ 8.58 $ 13.53
================ =============== ================ ==============
</TABLE>
23
<PAGE>
STATEMENTS OF OPERATIONS
- ------------------------
<TABLE>
<CAPTION>
TCW GALILEO TCW GALILEO
ASIA PACIFIC EQUITY EMERGING MARKETS
FUND FUND
------------------- ----------------
<S> <C> <C>
INVESTMENT INCOME
Income:
Dividends $ 75 /(2)/ $ 480 /(2)/
Interest 93 97
-------------- ------------
Total 168 577
-------------- ------------
Expenses:
Management Fees 68 206
Accounting Service Fees 17 17
Custodian Fees 32 45
Transfer Agent Fees 15 15
Registration Fees 4 4
Directors' Fees and Expenses 4 4
Audit and Tax Fees 9 9
Amortization of Deferred Organization Costs 1 1
Other 2 1
-------------- ------------
Total Expenses 152 302
Less Expenses Borne by Investment Adviser - -
-------------- ------------
Net Expenses 152 302
-------------- ------------
Net Investment Income (Loss) 16 275
-------------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCY
Net Realized Gain (Loss) on Investments and
Foreign Currency Transactions During the Period (4,496) (1,977)
Change in Unrealized Appreciation (Depreciation)
on Investments and Foreign Currency Translations
During the Period 2,799 2,486
-------------- ------------
Net Realized and Unrealized Gain (Loss) on Investments
and Foreign Currency During the Period (1,697) 509
-------------- ------------
INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ (1,681) $ 784
============== ============
</TABLE>
(1) For the period November 3, 1997 (commencement of operations) through April
30, 1998.
(2) Net of foreign taxes withheld of $3, $14, $29, $1, and $33 for TCW Galileo
Asia Pacific Equity Fund, TCW Galileo Emerging Markets Fund, TCW Galileo
European Equities Fund, TCW Galileo Japanese Equities Fund, and TCW Galileo
Latin America Equity Fund, respectively.
See accompanying Notes to Financial Statements.
24
<PAGE>
TCW GALILEO FUNDS, INC.
(International)
Dollar Amounts in Thousands
Six Months Ended April 30, 1998
<TABLE>
<CAPTION>
TCW Galileo TCW Galileo TCW Galileo TCW Galileo
European Equities International Equities Japanese Equities Latin America
Fund /(1)/ Fund /(1)/ Fund /(1)/ Equity Fund
------------------- ------------------------ ------------------- --------------
<S> <C> <C> <C>
$ 6 /(2)/ $ 280 $ 12 /(2)/ $ 432 /(2)/
287 21 17 24
---------------- --------------- ---------------- -------------
293 301 29 456
---------------- --------------- ---------------- -------------
165 - 31 207
17 17 17 17
25 1 5 23
6 11 6 18
4 4 4 4
5 4 4 4
10 6 10 9
1 1 1 3
3 4 3 3
---------------- --------------- ---------------- -------------
236 48 81 288
- - 31 -
---------------- --------------- ---------------- -------------
236 48 50 288
---------------- --------------- ---------------- -------------
57 253 (21) 168
---------------- --------------- ---------------- -------------
761 (281) (5,092) 5,597
10,804 10,548 3,861 (3,167)
---------------- --------------- ---------------- -------------
11,565 10,267 (1,231) 2,430
---------------- --------------- ---------------- -------------
$ 11,622 $ 10,520 $ (1,252) $ 2,598
================ =============== ================ =============
</TABLE>
25
<PAGE>
TCW GALILEO ASIA PACIFIC EQUITY FUND
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1998 Year Ended
(Unaudited) October 31, 1997
--------------- ------------------
<S> <C> <C>
OPERATIONS
Net Investment Income (Loss) $ 16 $ (10)
Net Realized Gain (Loss) on Investments and
Foreign Currency Transactions (4,496) 4,190
Change in Unrealized Appreciation (Depreciation) on
Investments and Foreign Currency Translations 2,799 (9,363)
-------------- ---------------
(Decrease) in Net Assets Resulting from Operations (1,681) (5,183)
-------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income - (322)
Distributions in Excess of Net Investment Income - (233)
Distributions from Net Realized Gains (2,235) -
-------------- ---------------
Total Distributions to Shareholders (2,235) (555)
-------------- ---------------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(1,325,322 shares in 1998 and 671,147 shares in 1997) 8,333 7,355
Proceeds from Shares Issued Upon Reinvestment of Dividends
(388,551 shares in 1998 and 47,638 Shares in 1997) 2,199 540
Cost of Shares Redeemed
(2,316,974 shares in 1998 and 2,849,433 shares in 1997) (15,087) (29,096)
-------------- ---------------
(Decrease) in Net Assets Resulting from Capital
Share Transactions (4,555) (21,201)
-------------- ---------------
(Decrease) in Net Assets (8,471) (26,939)
NET ASSETS
Beginning of Period 21,327 48,266
-------------- ---------------
End of Period $ 12,856 $ 21,327
============== ===============
</TABLE>
See accompanying Notes to Financial Statements.
26
<PAGE>
TCW GALILEO FUNDS, INC.
(International)
TCW GALILEO EMERGING MARKETS FUND
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1998 Year Ended
(Unaudited) October 31, 1997
------------------ -----------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 275 $ 221
Net Realized Gain (Loss) on Investments and
Foreign Currency Transactions (1,977) 4,502
Change in Unrealized Appreciation (Depreciation) on
Investments and Foreign Currency Translations 2,486 (1,473)
---------------- ---------------
Increase in Net Assets Resulting from Operations 784 3,250
---------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income - (670)
---------------- ---------------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(301,922 shares in 1998 and 775,118 shares in 1997) 2,417 7,428
Proceeds from Shares Issued Upon Reinvestment of Dividends
(49,995 shares in 1997) - 483
Cost of Shares Redeemed
(1,801,104 shares in 1998 and 2,135,058 shares in 1997) (14,641) (20,404)
---------------- ---------------
(Decrease) in Net Assets Resulting from Capital
Share Transactions (12,224) (12,493)
---------------- ---------------
(Decrease) in Net Assets (11,440) (9,913)
NET ASSETS
Beginning of Period 47,726 57,639
---------------- ---------------
End of Period $ 36,286 $ 47,726
================ ===============
</TABLE>
See accompanying Notes to Financial Statements.
27
<PAGE>
TCW GALILEO EMERGING MARKETS FUND
Dollar Amounts in Thousands
STATEMENT OF CHANGES IN NET ASSETS
- ----------------------------------
<TABLE>
<CAPTION>
November 3, 1997
(Commencement of
Operations) through
April 30, 1998
(Unaudited)
-------------------
<S> <C>
OPERATIONS
Net Investment Income $ 57
Net Realized Gain on Investments and Foreign Currency Transactions 761
Change in Unrealized Appreciation on Investments
and Foreign Currency Translations 10,804
---------------
Increase in Net Assets Resulting from Operations 11,622
---------------
CAPITAL SHARE TRANSACTIONS
Shares Issued upon Exchange of Limited Partnership Interests
(3,226,833 shares) (Note 1) 32,268
Proceeds from Shares Sold (1,683,267 shares) 18,576
Cost of Shares Redeemed (81,169 shares) (1,000)
---------------
Increase in Net Assets Resulting from
Capital Share Transactions 49,844
---------------
Increase in Net Assets 61,466
NET ASSETS
Beginning of Period _
---------------
End of Period $ 61,466
===============
</TABLE>
See accompanying Notes to Financial Statements.
28
<PAGE>
TCW GALILEO FUNDS, INC.
(International)
TCW GALILEO INTERNATIONAL EQUITIES FUND
Dollar Amounts in Thousands
STATEMENT OF CHANGES IN NET ASSETS
- ----------------------------------
<TABLE>
<CAPTION>
November 3, 1997
(Commencement of
Operations) through
April 30, 1998
(Unaudited)
--------------------
<S> <C>
OPERATIONS
Net Investment Income $ 253
Net Realized (Loss) on Investments (281)
Change in Unrealized Appreciation on Investments 10,548
---------------
Increase in Net Assets Resulting from Operations 10,520
---------------
CAPITAL SHARE TRANSACTIONS
Shares Issued upon Exchange of Limited Partnership
Interests (4,670,385 shares) (Note 1) 46,704
Proceeds from Shares Sold (2,484,526 shares) 26,059
Cost of Shares Redeemed (306,644 shares) (3,325)
---------------
Increase in Net Assets Resulting from
Capital Share Transactions 69,438
---------------
Increase in Net Assets 79,958
NET ASSETS
Beginning of Period -
---------------
End of Period $ 79,958
===============
</TABLE>
See accompanying Notes to Financial Statements.
29
<PAGE>
TWC GALILEO JAPANESE EQUITIES FUND
Dollar Amounts in Thousands
<TABLE>
<CAPTION>
STATMENTS OF CHANGES IN NET ASSETS
- ----------------------------------
November 3, 1997
(Commencement of
Operations) through
April 1998
(unaudited)
-------------------
<S> <C>
OPERATIONS
Net Investment (Loss) $ (21)
Net Realized (Loss) on Investments and Foreign Currency
Transactions (5,092)
Change in Unrealized Appreciation on Investments
and Foreign Currency Translations 3,861
-----------------
(Decrease) in Net Assets Resulting from Operations (1,252)
-----------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (52)
-----------------
CAPITAL SHARE TRANSACTIONS
Shares Issued upon Exchange of Limited Partnership
Interests (960,559 shares) (Note 1) 9,606
Proceeds from Shares Sold (645,940 shares) 5,450
Proceeds from Shares Issued upon Reinvestment of
Dividends (7,216 shares) 52
Cost of Shares Redeemed (292,601 shares) (2,468)
-----------------
Increase in Net Assets Resulting from
Capital Share Transactions 12,640
-----------------
Increase in Net Assets 11,336
NET ASSETS
Beginning of Period -
-----------------
End of Period $ 11,336
=================
</TABLE>
See accompanying Notes to Financial Statements.
30
<PAGE>
TCW GALILEO FUNDS, INC.
(International)
TWC GALILEO LATIN AMERCIA EQUITY FUND
Dollar Amounts in Thousands
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
Six Months Ended
April 30, 1998 Year Ended
(Unaudited) October 31, 1997
---------------- ----------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 168 $ 658
Net Realized Gain on Investments and
Foreign Currency Transactions 5,597 17,076
Change in Unrealized Appreciation (Depreciation)
on Investments and Foreign Currency Translations (3,167) 3,998
-------------- ----------------
Increase in Net Assets Resulting from Operations 2,598 21,732
-------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income - (726)
-------------- ----------------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(781,893 shares in 1998 and 879,898 shares in 1997) 10,315 11,912
Proceeds from Shares Issued upon Reinvestment of Dividends
(8,386 shares in 1997) - 94
Cost of Shares Redeemed
(2,766,970 shares in 1998 and 3,292,335 shares in 1997) (35,248) (45,999)
------------- ----------------
(Decrease) in Net Assets Resulting from
Capital Share Transactions (24,933) (33,993)
------------- ----------------
(Decrease) in Net Assets (22,335) (12,987)
NET ASSETS
Beginning of Period 55,336 68,323
------------- ----------------
End of Period $ 33,001 $ 55,336
============= ================
</TABLE>
See accompanying Notes to Financial Statements.
31
<PAGE>
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 17 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, TCWLondon
International, Limited is a sub-adviser to the TCW Galileo International
Equities Fund, TCW Galileo European Equities Fund and TCW Galileo Japanese
Equities Fund. 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 fixed income 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 eleven
non-diversified equity funds (the TCW Galileo Core Equities 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, the TCW Galileo Latin America Equity Fund, the
TCW Galileo International Equities Fund, the TCW Galileo European Equities Fund,
the TCW Galileo Japanese Equities Fund and the TCW Galileo Value Opportunities
Fund) currently offered by the Company. On November 3, 1997, TCW Galileo
International Equities Fund, TCW Galileo Japanese Equities Fund and TCW Galileo
Value Opportunities Fund commenced operations resulting from the exchange of
Limited Partnership interests. The assets and liabilities were transferred at
historical cost from the respective predecessor limited partnerships to the
Funds on November 3, 1997, and the fair values of which were exchanged for
commons shares of the Funds. The transfers were treated as tax-free exchanges in
accordance with the Internal Revenue Code. The TCW Galileo European Equities
Fund commenced operations on November 3, 1997, as a new Galileo Fund.
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 Equities Fund
(formerly TCWGalileo 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; (13) the TCW Galileo Latin America Equity Fund seeks
long-term capital appreciation, primarily by investing in Latin American equity
securities; (14) the TCW Galileo International Equities Fund seeks long-term
capital appreciation by investing in a mix of underlying TCW Galileo Funds; (15)
the TCW Galileo European Equities Fund seeks long-term capital appreciation by
investing primarily in the securities of issuers located in Europe; (16) the
TCW Galileo Japanese Equities Fund seeks long-term capital appreciation by
investing primarily in Japanese equity securities; and (17) the
32
<PAGE>
TWC GALILEO FUNDS, INC,
(International)
TCW Galileo Value Opportunities Fund seeks capital appreciation by investing at
least 65% of its total assets, under normal circumstances, in publicly traded
equity securities issued by small and medium companies with market
capitalization at the time of purchase between $500 million and $2.5 billion.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
PRINCIPLES OF ACCOUNTING: The Funds use the accrual method of accounting for
financial reporting purposes.
SECURITY VALUATIONS: 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 for which over-the-counter market quotations
are readily available, are valued at the latest bid price prior to the time of
valuation.
Securities for which market quotations are not readily available, including
circumstances under which it is determined by the Adviser that sale or bid
prices are not reflective of a security's market value, are valued at their fair
value as determined in good faith under procedures established by and under the
general supervision of the Company's Board of Directors.
Short-term debt securities with remaining maturities of 60 days or less at the
time of purchase are valued at amortized cost. Other short-term debt securities
are valued on a marked-to-market basis until such time as they reach a remaining
maturity of 60 days, whereupon they will be valued at amortized value using
their value on the 61st day prior to maturity.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME: Security transactions are
recorded as of the trade date. Dividend income is recorded on the ex-dividend
date. Interest income is recorded on the accrual basis. 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
year.
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. There were no forward
foreign currency contracts outstanding on April 30, 1998.
33
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
- ----------------------------------------------------
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, 1998.
DEFERRED ORGANIZATION COSTS: Organization costs of $10,000 per Fund for 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 $7,000, $9,000 and $7,000 for the
TCW Galileo European Equities Fund, TCW Galileo International Equities Fund and
the TCWGalileo Japanese Equities Fund, respectively, have been deferred and are
also being amortized on a straight line basis over a give year period from the
commencement of operations. Organizational costs for the TCW Galileo Latin
America Equity Fund of $50,000 have been completely amortized as of April 30,
1998.
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 Asia Pacific Equity
Fund, the TCWGalileo Emerging Markets Fund, the TCW Galileo European Equities
Fund, the TCW Galileo International Equities Fund, and the TCW Galileo Japanese
Equities Fund, and 2,000 shares of the TCW Galileo Latin America Equity Fund,
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 1:00 P.M. Pacific Time.
DIVIDENDS AND DISTRIBUTIONS: It is the policy of the Funds to declare and pay,
or reinvest, dividends from net investment income annually. Distribution of any
net long-term and net short-term capital gains earned by a Fund will be
distributed at least annually.
34
<PAGE>
TCW GALILEO FUNDS, INC.
(International)
April 30, 1998
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.
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, 1998, net unrealized appreciation (depreciation) on investments for
federal income tax purposes was as follows:
<TABLE>
<CAPTION>
TCW GALILEO TCW GALILEO TCW GALILEO
ASIA PACIFIC EQUITY EMERGING MARKETS EUROPEAN EQUITIES
FUND FUND FUND
------------------- ---------------- -----------------
<S> <C> <C> <C>
Unrealized Appreciation $ 428,184 $ 5,174,556 $ 14,570,922
Unrealized (Depreciation) (971,335) (1,389,858) (321,625)
-------------- -------------- ---------------
Net Unrealized Appreciation (Depreciation) $ (543,151) $ 3,784,698 $ 14,249,297
============== ============== ===============
Cost of Investments for Federal
Income Tax Purposes $ 13,188,477 $ 32,381,897 $ 48,309,283
============== ============== ===============
<CAPTION>
TCW GALILEO TCW GALILEO TCW GALILEO
INTERNATIONAL EQUITIES JAPANESE EQUITIES LATIN AMERICA EQUITY
FUND FUND FUND
---------------------- ----------------- --------------------
<S> <C> <C> <C>
Unrealized Appreciation $ 11,486,140 $ 190,482 $ 9,108,788
Unrealized (Depreciation) (938,357) (1,756,851) (679,616)
------------- ------------- -------------
Net Unrealized Appreciation (Depreciation) $ 10,547,783 $ (1,566,369) $ 8,429,172
============= ============= =============
Cost of Investments for Federal
Income Tax Purposes $ 69,402,917 $ 12,687,492 $ 24,371,276
============= ============= ==============
</TABLE>
35
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
- ----------------------------------------------------
At April 30, 1998, 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 Emerging Markets Fund $ - $ 3,478,000 $ 902,000
TCW Galileo Latin America Equity Fund - 10,558,000 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:
<TABLE>
<S> <C>
TCW Galileo Asia Pacific Equity Fund 1.00%
TCW Galileo Emerging Markets Fund 1.00%
TCWGalileo European Equities Fund 0.75%
TCWGalileo International Equities Fund 0.00%
TCWGalileo Japanese Equities Fund 0.75%
TCW Galileo Latin America Equity Fund 1.00%
</TABLE>
Each equity 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 TCWGalileo International
Equities Fund and the TCW Galileo Japanese Equities Fund are limited to 1.16%
and 1.20%, respectively, of the Fund's daily net assets until October 31, 1998.
Certain officers and/or directors of the Company are officers and/or directors
of the Adviser.
NOTE 5 - PURCHASES AND SALES OF SECURITIES
Investment transactions (excluding short-term investments) for the six months
ended April 30, 1998 were as follows:
<TABLE>
<CAPTION>
TCW Galileo TCW Galileo TCW Galileo
Asia Pacific Equity Emerging Markets European Equities
Fund Fund Fund
------------------- ---------------- -----------------
<S> <C> <C> <C>
Purchases at Cost $ 13,232,933 $ 17,125,100 $ 26,811,813
=================== ================ =================
Sales Proceeds $ 12,109,364 $ 26,366,542 $ 10,315,741
=================== ================ =================
</TABLE>
<TABLE>
<CAPTION>
TCW Galileo TCW Galileo TCW Galileo
International Equities Japanese Equities Latin America Equity
Fund Fund Fund
--------------------- ------------------- --------------------
<S> <C> <C> <C>
Purchases at Cost $ 32,451,209 $ 12,170,205 $ 6,000,482
=================== =================== ===================
Sales Proceeds $ 5,362,000 $ 9,841,640 $ 30,102,036
=================== =================== ===================
</TABLE>
There were no purchases or sales of U.S. Government Securities for the funds for
the six months ended April 30, 1998.
36
<PAGE>
TCW GALILEO FUNDS, INC.
(International)
April 30, 1998
NOTE 6 - RESTRICTED SECURITIES
The following restricted securities held by the Funds as of April 30, 1998, were
valued both at the date of acquisition and April 30, 1998, in accordance with
the security valuation policy of the Funds described in Note 2. The restricted
securities include securities purchased in private placement transactions
without registration under the Securities Act of 1933, as well as Rule 144A
securities. Such securities generally may be sold only in a privately negotiated
transaction with a limited number of purchasers or in a public offering
registered under the Securities Act of 1933. Each Fund will bear any costs
incurred in connection with the disposition of such securities.
TCW GALILEO ASIA PACIFIC EQUITY FUND:
<TABLE>
<CAPTION>
Number of Date of
Shares Investment Acquisition Cost
- ----------------- ------------------------------------------------------- ------------- -----------
<S> <C> <C> <C>
25,000 Fubon Insurance Company (144A) (GDR)(Taiwan) 04/08/98 $ 501,750
</TABLE>
The total value of restricted securities is $507,500, which represents 3.9% of
net assets of the Fund at April 30, 1998.
TCW GALILEO EMERGING MARKETS FUND:
<TABLE>
<CAPTION>
Number of Date of
Shares Investment Acquisition Cost
- ----------------- ------------------------------------------------------- ------------- -----------
<S> <C> <C> <C>
5,500 Chilectra, S.A. (144A) (ADR) (Chile) 06/24/97 $ 164,250
8,250 Commercial International Bank (144A) (GDR) (Egypt) 02/25/97 196,969
7,000 Fubon Insurance Company (144A) (GDR) (Taiwan) 04/08/98 140,490
26,500 Gazprom (144A) (ADR) (Russia) 11/18/97 612,284
2,200 Gedeon Richter (144A) (ADR) (Hungary) 08/02/96 121,435
24,000 Mahanagar Telephone Nigam, Limited (144A) (GDR) (India) 12/04/97 286,992
14,383 Mol Magyar Olaj-es Gazipari Rt. (144A) (GDR) (Hungary) 10/17/97 336,298
9,500 Suez Cement Company (144A) (GDR) (Egypt) 07/14/97 191,425
</TABLE>
The total value of restricted securities is $2,176,789, which represents 6% of
net assets of the Fund at April 30, 1998.
TCW GALILEO LATIN AMERICA EQUITY FUND:
<TABLE>
<CAPTION>
Number of Date of
Shares Investment Acquisition Cost
- ----------------- ------------------------------------------------------- ------------- -----------
<S> <C> <C> <C>
9,300 Chilectra, S.A. (144A) (ADR) (Chile) 06/24/97 $ 289,213
</TABLE>
The total value of restricted securities is $256,331, which represents 0.8% of
net assets of the Fund at April 30, 1998.
37
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
- ---------------------------------------------------
Note 7 - Subsequent Event
On October 24, 1997, the Board of Directors of the Company approved the exchange
of four limited partnerships into the TCW Galileo Enhanced 500 Fund, TCW Galileo
Large Cap Growth Fund, TCW Galileo Large Cap Value Fund and TCW Galileo Emerging
Markets Income Fund and the organization of a new fund, the TCW Galileo Small
Cap Value Fund. The transfers will be treated as tax-free exchanges in
accordance with the Internal Revenue Code. The assets and liabilities will be
transferred at historical cost from the respective predecessor limited
partnerships to the Funds on June 1, 1998 and the fair values of which will be
exchanged for common shares of the Funds.
38
<PAGE>
TCW GALILEO FUNDS, INC.
(International)
TCW GALILEO ASIA PACIFIC EQUITY FUND
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
Six Months March 1, 1994
Ended (Commencement of
April 30, 1998 Year Ended October 31, Operations) through
------------------------------------
(Unaudited) 1997 1996 1995 October 31, 1994
---------- ------- -------- -------- -------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value per Share, Beginning
of Period $ 7.37 $ 9.61 $ 8.67 $ 10.19 $ 10.00
-------- ------- -------- -------- --------
Income (Loss) from Investment Operations:
Net Investment Income (Loss) 0.01 (0.01) 0.06 0.06 0.03
Net Realized and Unrealized Gain (Loss)
on Investments and Foreign Currency (0.62) (2.10) 0.93 (1.19) 0.16
-------- ------- -------- -------- --------
Total from Investment Operations (0.61) (2.11) 0.99 (1.13) 0.19
-------- ------- -------- -------- --------
Less Distributions:
Distributions from Net Investment Income - (0.08) (0.05) (0.01) -
Distributions from Net Realized Gains (1.14) (0.05) - (0.22) -
Distributions in Excess of Net Realized Gains - - - (0.16) -
-------- ------- -------- -------- --------
Total Distributions (1.14) (0.13) (0.05) (0.39) -
Net AssetValue per Share, End of Period $ 5.62 $ 7.37 $ 9.61 $ 8.67 $10.19
======== ======= ======== ======== ========
Total Return (8.38)%/(2)/ (22.40)% 11.36% (10.98)% 1.90%/(1)/
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $ 12,856 $21,327 $ 48,266 $ 46,709 $ 54,019
Ratio of Expenses to Average Net Assets 2.22%/(3)/ 1.49% 1.43% 1.47%/(4)/ 1.40%/(3)/(4)/
Ratio of Net Investment Income (Loss) to
Average Net Assets 0.22%/(3)/ (0.02)% 0.66% 0.74% 0.45%/(3)/
Portfolio Turnover Rate 111.29%/(2)/ 81.92% 84.81% 102.01% 46.75%/(1)/
Average Commission Rate Paid by the Fund/(5)/ $ 0.01 $ 0.00 $ 0.01 N/A N/A
</TABLE>
(1) For the period March 1, 1994 (commencement of operations) through October
31, 1994 and not indicative of a full year's operating results.
(2) For the six months ended April 30, 1998 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.
39
<PAGE>
TCW GALILEO EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Six Months March 1, 1994
Ended (Commencement of
April 30, 1998 Year Ended October 31, Operations) through
-----------------------------------
(Unaudited) 1997 1996 1995 October 31, 1994
---------- -------- -------- -------- -------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value per Share, Beginning
of Period $ 8.32 $ 8.18 $ 7.19 $ 9.73 $ 10.00
---------- -------- -------- -------- --------
Income (Loss) from Investment Operations:
Net Investment Income (Loss) 0.05 0.03 0.07 0.04 (0.01)
Net Realized and Unrealized Gain (Loss)
on Investments and Foreign Currency 0.19 0.22 0.94 (2.58) (0.26)
---------- -------- -------- -------- --------
Total from Investment Operations 0.24 0.25 1.01 (2.54) (0.27)
---------- -------- -------- -------- --------
Less Distributions:
Distributions from Net Investment Income - (0.11) (0.02) - -
---------- -------- -------- -------- --------
Net AssetValue per Share, End of Period $ 8.56 $ 8.32 $ 8.18 $ 7.19 $ 9.73
========== ======== ======== ======== ========
Total Return 2.88%/(2)/ 2.82% 14.14% (26.11)% (2.70)%/(1)/
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $ 36,286 $47,726 $57,639 $51,873 $ 70,212
Ratio of Expenses to Average Net Assets 1.47%/(3)/ 1.50% 1.41% 1.55% 1.70%/(3)/
Ratio of Net Investment Income (Loss) to
Average Net Assets 1.33%/(3)/ 0.36% 0.82% 0.54% (0.09)%/(3)/
Portfolio Turnover Rate 45.76%/(2)/ 79.80% 83.76% 74.24% 61.28%/(1)/
Average Commission Rate Paid by the Fund/(4)/ $ 0.00 $ 0.00 $ 0.00 N/A N/A
</TABLE>
(1) For the period March 1, 1994 (commencement of operations) through October
31, 1994 and not indicative of a full year's operating results.
(2) For the six months ended April 30, 1998 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.
40
<PAGE>
TCW GALILEO FUNDS, INC.
(International)
TCW GALILEO EUROPEAN EQUITIES FUND
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
November 3,1997
(Commencement of
Operations) through
April 30, 1998
(Unaudited)
-------------------
<S> <C>
Net Asset Value per Share, Beginning
of Period $ 10.00
----------
Income (Loss) from Investment Operations:
Net Investment Income 0.01
Net Realized and Unrealized Gain
on Investments and Foreign Currency 2.72
----------
Total from Investment Operations 2.73
----------
Net AssetValue per Share, End of Period $ 12.73
==========
Total Return 27.30%/(1)/
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $ 61,466
Ratio of Expenses to Average Net Assets 1.07%/(2)/
Ratio of Net Investment Income to
Average Net Assets 0.26%/(2)/
Portfolio Turnover Rate 23.91%/(1)/
Average Commission Rate Paid by the Fund/(3)/ $ 0.02
</TABLE>
(1) For the period November 3, 1997 (commencement of operations) through April
30, 1998 and not indicative of a full year's operating results.
(2) Annualized.
(3) 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.
41
<PAGE>
TCW GALILEO INTERNATIONAL EQUITIES FUND
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
November 3,1997
(Commencement of
Operations) through
April 30, 1998
(Unaudited)
-------------------
<S> <C>
Net Asset Value per Share, Beginning
of Period $ 10.00
----------
Income (Loss) from Investment Operations:
Net Investment Income 0.04
Net Realized and Unrealized Gain
on Investments and Foreign Currency 1.64
----------
Total from Investment Operations 1.68
----------
Net AssetValue per Share, End of Period $ 11.68
==========
Total Return 16.80%/(1)/
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $ 79,958
Ratio of Expenses to Average Net Assets 0.16%/(2)/
Ratio of Net Investment Income to
Average Net Assets 0.85%/(2)/
Portfolio Turnover Rate 10.70%/(1)/
Average Commission Rate Paid by the Fund/(3)/ $ 0.00
</TABLE>
(1) For the period November 3, 1997 (commencement of operations) through April
30, 1998 and not indicative of a full year's operating results.
(2) Annualized.
(3) 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.
42
<PAGE>
TCW GALILEO FUNDS, INC.
(International)
TCW GALILEO JAPANESE EQUITIES FUND
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
November 3,1997
(Commencement Of
Operations) Through
April 30, 1998
(Unaudited)
-------------------
<S> <C>
Net Asset Value per Share, Beginning
of Period $ 10.00
---------
Income (Loss) from Investment Operations:
Net Investment (Loss) (0.02)
Net Realized and Unrealized (Loss)
on Investments and Foreign Currency (1.33)
---------
Total from Investment Operations (1.35)
---------
Less Distributions:
Distributions from Net Investment Income (0.07)
---------
Net Asset Value per Share, End of Period $ 8.58
=========
Total Return (13.37)% /(1)/
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $ 11,336
Ratio of Net Expenses to Average Net Assets 1.20% /(2)(3)/
Ratio of Net Investment (Loss) to
Average Net Assets (0.50)% /(2)/
Portfolio Turnover Rate 122.55% /(1)/
Average Commission Rate Paid by the Fund /(4)/ $ 0.00
</TABLE>
(1) For the period November 3, 1997 (commencement of operations) through April
30, 1998 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 1.20% of net assets
through October 31, 1998. Had such action not been taken, total annualized
operating expenses as a percentage of average net assets would have been
1.94% for the period November 3, 1997 (commencement of operations) through
April 30, 1998.
(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.
43
<PAGE>
TCW GALILEO LATIN AMERICAN EQUITY FUND
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
Six Months
Ended
April 30, 1998
(Unaudited)
--------------
<S> <C>
Net Asset Value per Share, Beginning
of Period $ 12.51
-------
Income (Loss) from Investment Operations:
Net Investment Income 0.08
Net Realized and Unrealized Gain (Loss)
on Investments and Foreign Currency 0.94
-------
Total from Investment Operations 1.02
-------
Less Distributions:
Distributions from Net Investment Income -
Distributions from Net Realized Gains -
Distributions in Excess of Net Realized
Gains -
-------
Total Distributions -
-------
Net Asset Value per Share, End of Period $ 13.53
=======
Total Return 8.15% /(3)/
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $33,001
Ratio of Expenses to Average Net Assets 1.39% /(4)/
Ratio of Net Investment Income to Average
Net Assets 0.81% /(4)/
Portfolio Turnover Rate 14.63% /(3)/
Average Commission Rate Paid by the Fund /(5)/ $ 0.00
</TABLE>
(1) For the ten months ended October 31, 1994 and not indicative of a full
year's operating results.
(2) For the period March 1, 1993 (commencement of operations) through December
31, 1993 and not indicative of a full year's operating results.
(3) For the six months ended April 30, 1998 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.
44
<PAGE>
TCW GALILEO FUNDS, INC.
(International)
<TABLE>
<CAPTION>
March 1, 1993
Year Ended October 31, Ten Months (Commencement of
- --------------------------------------------------------------- Ended Operations) through
1997 1996 1995 October 31, 1994 December 31, 1993
- ----------------------- ------------------ ------------ ---------------- -------------------
<S> <C> <C> <C> <C>
$ 10.01 $ 7.92 $ 14.99 $ 15.11 $ 10.00
- ----------------------- ------------------ ------------ ---------------- -------------------
0.11 0.11 0.06 0.01 0.08
2.50 2.03 (5.92) (0.13) 6.35
- ----------------------- ------------------ ------------ ---------------- -------------------
2.61 2.14 (5.86) (0.12) 6.43
- ----------------------- ------------------ ------------ ---------------- -------------------
(0.11) (0.05) _ _ (0.08)
_ _ _ _ (1.21)
_ _ (1.21) _ (0.03)
- ----------------------- ------------------ ------------ ---------------- -------------------
(0.11) (0.05) (1.21) _ (1.32)
- ----------------------- ------------------ ------------ ---------------- -------------------
$ 12.51 $ 10.01 $ 7.92 $ 14.99 $ 15.11
======================= ================== ============ ================ ===================
26.24% 27.08% (40.95)% (0.79)%/(1)/ 64.27%/(2)/
$ 55,336 $ 68,323 $ 38,942 $ 122,610 $ 89,910
1.46% 1.44% 1.58%/(5)/ 1.36%/(4)(5)/ 1.50%/(4)(5)/
0.87% 1.12% 0.59% 0.11%/(4)/ 0.77%/(4)/
21.17% 44.32% 75.62% 143.65%/(1)/ 120.06%/(2)/
$ 0.00 $ 0.00 N/A N/A N/A
</TABLE>
45
<PAGE>
TCW GALILEO FUNDS, INC.
(International)
SHAREHOLDER INFORMATION
- -----------------------
DIRECTORS AND OFFICERS INVESTMENT ADVISER
Marc I. Stern TCW Funds Management, Inc.
Director and Chairman of the Board 865 South Figueroa Street
Los Angeles, California 90017
(213) 244-0000
Thomas E. Larkin, Jr.
Director and President
SUB-ADVISERS
John C. Argue
Director TCW Asia Limited
Suite 1308, One Pacific Place
88 Queensway
Norman Barker, Jr. Hong Kong
Director
TCW London International, Limited
Richard W. Call 16 Charles II Street
Director London, England SW1Y4QU
Alvin R. Albe, Jr.
Senior Vice President and Treasurer CUSTODIAN
BNY Western Trust Company
Michael E. Cahill 700 South Flower Street
Senior Vice President, Suite 200
General Counsel and Assistant Secretary Los Angeles, California 90017
Ronald E. Robison
Senior Vice President TRANSFER AGENT
DST Systems, Inc.
Philip K. Holl 811 Main Street
Secretary Kansas City, Missouri 64105
Marie M. Bender
Assistant Secretary DISTRIBUTOR
TCW Brokerage Services
Hilary G.D. Lord 865 South Figueroa Street
Assistant Secretary Los Angeles, California 90017
(213) 244-0000
Peter C. DiBona
Assistant Treasurer
INDEPENDENT AUDITORS
Deloitte & Touche LLP
1000 Wilshire Boulevard
Los Angeles, California 90017
46
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK.
47
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK.
48
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 9
<NAME> TCW GALILEO ASIA PACIFIC EQUITY FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-START> NOV-01-1997
<PERIOD-END> APR-30-1998
<INVESTMENTS-AT-COST> 13,188
<INVESTMENTS-AT-VALUE> 12,645
<RECEIVABLES> 303
<ASSETS-OTHER> 1
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 12,949
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 93
<TOTAL-LIABILITIES> 93
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 16,279
<SHARES-COMMON-STOCK> 2,289
<SHARES-COMMON-PRIOR> 2,892
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 217
<ACCUMULATED-NET-GAINS> (2,663)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (543)
<NET-ASSETS> 12,856
<DIVIDEND-INCOME> 75
<INTEREST-INCOME> 93
<OTHER-INCOME> 0
<EXPENSES-NET> 152
<NET-INVESTMENT-INCOME> 16
<REALIZED-GAINS-CURRENT> (4,496)
<APPREC-INCREASE-CURRENT> 2,799
<NET-CHANGE-FROM-OPS> (1,681)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 2,235
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,325
<NUMBER-OF-SHARES-REDEEMED> 2,317
<SHARES-REINVESTED> 389
<NET-CHANGE-IN-ASSETS> (8,471)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 4,068
<OVERDISTRIB-NII-PRIOR> 233
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 68
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 152
<AVERAGE-NET-ASSETS> 14,004
<PER-SHARE-NAV-BEGIN> 7.37
<PER-SHARE-NII> 0.01
<PER-SHARE-GAIN-APPREC> (0.62)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 1.14
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 5.62
<EXPENSE-RATIO> 2.22
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 8
<NAME> TCW GALILEO EMERGING MARKETS FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-START> NOV-01-1997
<PERIOD-END> APR-30-1998
<INVESTMENTS-AT-COST> 32,382
<INVESTMENTS-AT-VALUE> 36,167
<RECEIVABLES> 686
<ASSETS-OTHER> 1
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 36,854
<PAYABLE-FOR-SECURITIES> 445
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 123
<TOTAL-LIABILITIES> 568
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 39,113
<SHARES-COMMON-STOCK> 4,238
<SHARES-COMMON-PRIOR> 5,738
<ACCUMULATED-NII-CURRENT> 385
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (6,997)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,785
<NET-ASSETS> 36,286
<DIVIDEND-INCOME> 480
<INTEREST-INCOME> 97
<OTHER-INCOME> 0
<EXPENSES-NET> 302
<NET-INVESTMENT-INCOME> 275
<REALIZED-GAINS-CURRENT> (1,977)
<APPREC-INCREASE-CURRENT> 2,486
<NET-CHANGE-FROM-OPS> 784
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 301
<NUMBER-OF-SHARES-REDEEMED> 1,801
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (11,440)
<ACCUMULATED-NII-PRIOR> 110
<ACCUMULATED-GAINS-PRIOR> (5,020)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 206
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 302
<AVERAGE-NET-ASSETS> 41,797
<PER-SHARE-NAV-BEGIN> 8.32
<PER-SHARE-NII> .05
<PER-SHARE-GAIN-APPREC> .19
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.56
<EXPENSE-RATIO> 1.47
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 14
<NAME> TCW GALILEO EUROPEAN EQUITIES FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-START> NOV-01-1997
<PERIOD-END> APR-30-1998
<INVESTMENTS-AT-COST> 48,310
<INVESTMENTS-AT-VALUE> 62,559
<RECEIVABLES> 752
<ASSETS-OTHER> 6
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 63,317
<PAYABLE-FOR-SECURITIES> 1,764
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 87
<TOTAL-LIABILITIES> 1,851
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 46,399
<SHARES-COMMON-STOCK> 4,829
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 57
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 761
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 14,249
<NET-ASSETS> 61,466
<DIVIDEND-INCOME> 6
<INTEREST-INCOME> 287
<OTHER-INCOME> 0
<EXPENSES-NET> 236
<NET-INVESTMENT-INCOME> 57
<REALIZED-GAINS-CURRENT> 761
<APPREC-INCREASE-CURRENT> 10,804
<NET-CHANGE-FROM-OPS> 11,622
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,910
<NUMBER-OF-SHARES-REDEEMED> 81
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 61,466
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 165
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 236
<AVERAGE-NET-ASSETS> 44,230
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .01
<PER-SHARE-GAIN-APPREC> 2.72
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.73
<EXPENSE-RATIO> 1.07
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 16
<NAME> TCW GALILEO INTERNATIONAL EQUITIES FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-START> NOV-01-1997
<PERIOD-END> APR-30-1998
<INVESTMENTS-AT-COST> 69,403
<INVESTMENTS-AT-VALUE> 79,951
<RECEIVABLES> 23
<ASSETS-OTHER> 8
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 79,982
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 24
<TOTAL-LIABILITIES> 24
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 69,438
<SHARES-COMMON-STOCK> 6,848
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 253
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (281)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 10,548
<NET-ASSETS> 79,958
<DIVIDEND-INCOME> 280
<INTEREST-INCOME> 21
<OTHER-INCOME> 0
<EXPENSES-NET> 48
<NET-INVESTMENT-INCOME> 253
<REALIZED-GAINS-CURRENT> (281)
<APPREC-INCREASE-CURRENT> 10,548
<NET-CHANGE-FROM-OPS> 10,520
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 7,155
<NUMBER-OF-SHARES-REDEEMED> 307
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 79,958
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 48
<AVERAGE-NET-ASSETS> 53,845
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .04
<PER-SHARE-GAIN-APPREC> 1.64
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.68
<EXPENSE-RATIO> .16
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 15
<NAME> TCW GALILEO JAPANESE EQUITIES FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-START> NOV-01-1997
<PERIOD-END> APR-30-1998
<INVESTMENTS-AT-COST> 12,687
<INVESTMENTS-AT-VALUE> 11,121
<RECEIVABLES> 562
<ASSETS-OTHER> 6
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 11,689
<PAYABLE-FOR-SECURITIES> 287
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 66
<TOTAL-LIABILITIES> 393
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 18,067
<SHARES-COMMON-STOCK> 1,321
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 73
<ACCUMULATED-NET-GAINS> (5,092)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (1,566)
<NET-ASSETS> 11,336
<DIVIDEND-INCOME> 12
<INTEREST-INCOME> 17
<OTHER-INCOME> 0
<EXPENSES-NET> 50
<NET-INVESTMENT-INCOME> (21)
<REALIZED-GAINS-CURRENT> (5,092)
<APPREC-INCREASE-CURRENT> 3,861
<NET-CHANGE-FROM-OPS> (1,292)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 52
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,607
<NUMBER-OF-SHARES-REDEEMED> 293
<SHARES-REINVESTED> 7
<NET-CHANGE-IN-ASSETS> 11,336
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 31
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 81
<AVERAGE-NET-ASSETS> 8,542
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> (0.02)
<PER-SHARE-GAIN-APPREC> (1.33)
<PER-SHARE-DIVIDEND> 0.07
<PER-SHARE-DISTRIBUTIONS> 0
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<TABLE> <S> <C>
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<NAME> TCW GALILEO LATIN AMERICA EQUITY FUND
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