|
|
|
|
|
|
|
|
|
<PAGE>
TCW GALILEO FUNDS, INC.
(U.S. EQUITIES)
SEMI-ANNUAL REPORT
APRIL 30, 1998
<PAGE>
TCW GALILEO FUNDS, INC.
(U.S. Equities)
TABLE OF CONTENTS
- -----------------
<TABLE>
<S> <C>
Letter to Shareholders.......................................... 3
Performance Summary............................................. 4
Schedules of Investments:
TCW Galileo Convertible Securities Fund...................... 5
TCW Galileo Core Equities Fund............................... 10
TCW Galileo Earnings Momentum Fund........................... 13
TCW Galileo Mid-Cap Growth Fund.............................. 16
TCW Galileo Small Cap Growth Fund............................ 19
TCW Galileo Value Opportunities Fund......................... 24
Statements of Assets and Liabilities............................ 28
Statements of Operations........................................ 30
Statements of Changes in Net Assets............................. 32
Notes to Financial Statements................................... 38
Financial Highlights............................................ 45
Shareholder Information......................................... 51
</TABLE>
1
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK.
2
<PAGE>
TCW GALILEO FUNDS, INC.
(U.S. Equities)
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>
April 30, 1998
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 Convertible
Securities Fund $ 11.63 33.23% 14.27% /(1)/ 14.21% /(1)/ 01/01/89 /(2)/
TCW Galileo Core Equities
Fund (3) $ 16.27 37.45% 18.07% 18.17% /(1)/ 07/01/91 /(2)/
TCW Galileo Earnings Momentum
Fund $ 14.14 52.58% 15.11% /(1)/ 15.11% /(1)/ 05/01/93 /(2)/
TCW Galileo Mid-Cap Growth
Fund $ 11.72 61.65% N/A 29.12% /(1)/ 11/01/94 /(2)/
TCW Galileo Small Cap Growth
Fund $ 20.61 64.09% 24.39% /(1)/ 20.08% /(1)/ 12/01/89 /(2)/
TCW Galileo Value Opportunities
Fund $ 10.99 28.52% /(1)/ N/A 24.85% /(1)/ 11/01/96 /(2)/
</TABLE>
(1) Performance data includes the performance of the predecessor limited
partnership for periods before the TCW Galileo Funds' registration became
effective. The predecessor limited partnerships were not registered under
the Investment Company Act of 1940, as amended ("1940 Act"), and, therefore
were not subject to certain investment restrictions that are imposed by the
1940 Act. If the limited partnerships had been registered under the 1940
Act, the limited partnership's performance may have been lower.
(2) Inception date of predecessor limited partnership.
(3) Formerly TCW Galileo Core Equity Fund.
4
<PAGE>
TCW GALILEO FUNDS, INC.
(U.S. Equities)
TCW GALILEO CONVERTIBLE SECURITIES FUND
April 30, 1998
SCHEDULE OF INVESTMENTS (Unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR PRINCIPAL
AMOUNT FIXED INCOME AND EQUITY SECURITIES VALUE
- ------------------- ---------------------------------- -------------
<S> <C> <C>
BASIC INDUSTRIES (9.1% of Net Assets)
CHEMICALS (1.3%)
7,400 Sealed Air Corp., $2.00 Convertible Preferred $ 455,563
-------------
OIL & GAS - DOMESTIC (3.2%)
$ 420,000 Baker Hughes, Inc., 0%, due 05/05/08 346,500
$ 310,000 Diamond Offshore Drilling, 3.75%, due 02/15/07 419,275
$ 70,000 Loews Corp., Exchangeable Diamond Offshore, 3.125%,
due 09/15/07 71,050
5,900 Unocal Corp., $3.125 Convertible Preferred 340,725
-------------
Total Oil & Gas - Domestic 1,177,550
-------------
OIL & GAS - INTERNATIONAL (0.9%)
4,300 Occidental Petroleum Corp., (Canada), Exchangeable
Canadian Occidental Petroleum, $3.00 Convertible Preferred 325,725
-------------
PAPER, FOREST PRODUCTS & CONTAINERS (0.5%)
3,700 Crown Cork and Seal, Inc., $1.88 Convertible Preferred 178,756
-------------
TRANSPORTATION (3.2%)
$ 415,000 Swiss Life Finance, Ltd., Exchangeable Royal Dutch
Petroleum Co., (144A), 2%, due 05/20/05 417,075 *
14,300 Union Pacific Capital Trust, (144A), $3.13 Convertible Preferred 754,325 *
-------------
Total Transportation 1,171,400
-------------
TOTAL BASIC INDUSTRIES (Cost: $3,179,143) 3,308,994
-------------
CAPITAL GOODS (25.8%)
AEROSPACE & CONGLOMERATES (2.6%)
$ 305,000 Hexcel Corp., 7%, due 08/01/03 568,063
$ 350,000 Morgan Stanley Group Inc., Exchangeable Boeing Co.,
0%, due 09/30/00 395,409
-------------
Total Aerospace & Conglomerates 963,472
-------------
ELECTRONICS (3.6%)
$ 120,000 Adaptec, Inc., 4.75%, due 02/01/04 101,400
$ 250,000 Adaptec, Inc., (144A), 4.75%, due 02/01/04 211,250 *
$ 375,000 Premiere Technologies, Inc., (144A), 5.75%, due 07/01/04 437,344 *
$ 295,000 Tel-Save Holdings, Inc., (144A), 4.5%, due 09/15/02 313,438 *
$ 225,000 Thermo Instrument Systems, Inc., 4%, due 01/15/05 236,250
-------------
Total Electronics 1,299,682
-------------
</TABLE>
* Restricted Security. (See Note 6)
See accompanying Notes to Financial Statements.
5
<PAGE>
TCW GALILEO CONVERTIBLE SECURITIES FUND
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR PRINCIPAL
AMOUNT FIXED INCOME AND EQUITY SECURITIES VALUE
- ------------------- ---------------------------------- --------------
<S> <C> <C>
INFORMATION PROCESSING (8.9%)
$ 215,000 Affiliated Computer Services, Inc., (144A), 4%, due 03/15/05 $ 223,331 *
$ 285,000 Arbor Software Corp., (144A), 4.5%, due 03/15/05 308,513 *
$ 375,000 Merrill Lynch & Company, Inc., Exchangable Technology Basket,
(144A), 0%, due 02/02/05 413,438 *
7,400 Morgan Stanley Group, Inc., Exchangeable Cisco Systems, Inc.,
$4.00 Convertible Preferred 742,153
$ 900,000 Network Associates, Inc., (144A), 0%, due 02/13/18 419,625 *
$ 305,000 QuadraMed Corp., (144A), 5.25%, due 05/01/05 329,400 *
$ 535,000 Safeguard Scientifics, Inc., (144A), 6%, due 02/01/06 784,444 *
--------------
Total Information Processing 3,220,904
--------------
MACHINERY/INFRASTRUCTURE (0.5%)
11,300 Cooper Industries, Inc., Exchangeable Wyman Gordon,
$0.81 Convertible Preferred 200,575
--------------
OFFICE EQUIPMENT & SUPPLIES (1.0%)
$ 305,000 Xerox Corp., 2.875%, due 07/01/02 373,625
--------------
POLLUTION CONTROL (6.8%)
$ 500,000 Thermo Electron Corp., Euro, 4.25%, due 01/01/03 573,205
$ 645,000 USA Waste Systems, Inc., 4%, due 02/01/02 803,831
$ 1,045,000 United States Filter Corp., 4.5%, due 12/15/01 1,097,250
--------------
Total Pollution Control 2,474,286
--------------
TELECOMMUNICATION EQUIPMENT (2.4%)
$ 845,000 Bell Atlantic Financial Services, (144A), 5.75%, due 04/01/03 873,781 *
--------------
TOTAL CAPITAL GOODS (Cost: $8,234,353) 9,406,325
--------------
CONSUMER CYCLICALS (COST : $650,000) (2.1%)
AUTOMOTIVE (2.1%)
$ 330,000 Magna International, Inc., (144A), 4.875%, due 02/15/05 375,375 *
$ 320,000 Tower Automotive, Inc., (144A), 5%, due 08/01/04 380,800 *
--------------
TOTAL CONSUMER CYCLICALS 756,175
--------------
</TABLE>
* Restricted Security. (See Note 6)
See accompanying Notes to Financial Statements.
6
<PAGE>
TCW GALILEO FUNDS, INC.
(U.S. Equities)
April 30, 1998
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR PRINCIPAL
AMOUNT FIXED INCOME AND EQUITY SECURITIES VALUE
- ------------------- ---------------------------------- -------------
<S> <C> <C>
CONSUMER STAPLES (55.2%)
DRUGS & HOSPITAL SUPPLY (3.7%)
$ 330,000 Centocor, Inc., (144A), 4.75%, due 02/15/05 $ 359,700 *
$ 240,000 Sandoz Capital BVI, Ltd., (Switzerland), Euro, 2%, due 10/06/02 376,650
$ 500,000 Sepracor, Inc., Euro, (144A), 7%, due 12/01/02 598,125 *
-------------
Total Drugs & Hospital Supply 1,334,475
-------------
ENTERTAINMENT, LEISURE & MEDIA (13.5%)
3,300 Chancellor Media Corp., (144A), $3.00 Convertible Preferred 327,113 *
$ 1,145,000 Clear Channel Communications, 5.625%, due 04/01/03 1,150,725
19,700 Houston Industries, Inc., Exchangeable Time Warner, Inc.,
$3.215 Convertible Preferred 1,366,688
12,900 Merrill Lynch & Company, Inc., Exchangeable
Cox Communications, Inc., $1.3725 Convertible Preferred 482,138
14,200 Readers Digest Association, $1.93 Convertible Preferred 370,975
$ 215,000 Speedway Motorsports, Inc., 5.75%, due 09/30/03 239,188
1,900 TCI Pacific Communications, Inc., $5.00 Convertible Preferred 346,750
8,400 U.S. West, Inc., Exchangeable U.S. West Media Group,
$2.25 Convertible Preferred 640,500
-------------
Total Entertainment, Leisure & Media 4,924,077
-------------
FOODS, HOTELS & RESTAURANTS (3.0%)
6,200 Apple South, Inc., $3.50 Convertible Preferred 373,550
2,100 Host Marriott Financial Trust, $3.375 Convertible Preferred 121,712
4,400 Host Marriott Financial Trust, (144A), $3.375 Convertible Preferred 251,350 *
7,300 Suiza Capital Trust, (144A), $2.75 Convertible Preferred 358,897 *
-------------
Total Foods, Hotels & Restaurants 1,105,509
-------------
HEALTHCARE (15.0%)
$ 515,000 Alternative Living, 5.25%, due 12/15/02 696,538
$ 475,000 Assisted Living Concepts, Inc., 6%, due 11/01/02 509,438
$ 365,000 Assisted Living Concepts, Inc., (144A), 5.625%, due 05/01/03 350,856 *
$ 900,000 Athena Neurosciences, Inc., (144A), 4.75%, due 11/15/04 1,033,875 *
$ 710,000 Concentra Managed Care, Inc., (144A), 6%, due 12/15/01 707,338 *
7,500 Laboratory Corp. of America, $4.25 Convertible Preferred 422,344
$ 270,000 Morgan Stanley Group, Inc., Exchangeable Johnson & Johnson,
2%, due 03/29/02 338,969
$ 50,000 Omnicare, Inc., 5%, due 12/01/07 55,847
$ 575,000 Omnicare, Inc., (144A), 5%, due, 12/01/07 642,235 *
$ 320,000 Quintiles Transnational Corp., (144AI, Reg D), 4.25%,
due 05/31/00 421,200 *
$ 195,000 Sunrise Assisted Living, Inc., (144A), 5.5%, due 06/15/02 264,713 *
-------------
TOTAL HEALTHCARE 5,443,353
-------------
</TABLE>
* Restricted Security. (See Note 6)
See accompanying Notes to Financial Statements.
7
<PAGE>
TCW GALILEO CONVERTIBLE SECURITIES FUND
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR PRINCIPAL
AMOUNT FIXED INCOME AND EQUITY SECURITIES VALUE
- ------------------- ---------------------------------- -------------
<S> <C> <C>
HOUSEHOLD PRODUCTS (1.0%)
$ 1,110,000 Sunbeam Corp., (144A), 0%, due 03/25/18 $ 346,875 *
-------------
RETAIL (10.8%)
$ 190,000 Action Performance Companies, Inc., (144A), 4.75%, due 04/01/05 186,601 *
$ 290,000 Charming Shoppes, Inc., 7.5%, due 07/15/06 274,413
$ 200,000 Costco Companies, Inc., 0%, due 08/19/17 135,750
$ 1,105,000 Costco Companies, Inc., (144A), 0%, due 08/19/17 750,019 *
$ 465,000 Home Depot, Inc., 3.25%, due 10/01/01 725,400
5,400 Kmart Corporation, $3.875 Convertible Preferred 355,050
$ 530,000 Rite Aid Corp., (144A), 5.25%, due 09/15/02 597,575 *
$ 510,000 Staples, Inc., Euro, 4.5%, due 10/01/00 873,768
$ 20,000 Staples, Inc., (144A), 4.5%, due 10/01/00 34,265 *
-------------
Total Retail 3,932,841
-------------
SERVICES - BUSINESS (8.2%)
4,500 Cendant Corp., $3.43 Convertible Preferred 157,500
28,200 Cendant Corp., $3.75 Convertible Preferred 1,161,488
$ 435,000 Corestaff, Inc., 2.94%, due 08/15/04 452,400
$ 405,000 C U C International, Inc., (144A), 3%, due 02/15/02 425,756 *
$ 295,000 Personnel Group of America, Inc., (144A), 5.75%, due 07/01/04 380,181 *
$ 135,000 SmarTalk Teleservices, Inc., 5.75%, due 09/15/04 129,769
$ 295,000 SmarTalk Teleservices, Inc., (144A), 5.75%, due 09/15/04 283,569 *
-------------
TOTAL SERVICES - BUSINESS 2,990,663
-------------
TOTAL CONSUMER STAPLES (Cost: $16,798,061) 20,077,793
-------------
CREDIT SENSITIVE (6.4%)
Real Estate (0.6%)
$ 195,000 LTC Properties, Inc., 8.25%, due 07/01/01 224,981
-------------
INSURANCE (2.3%)
$ 350,000 American International Group, 2.25%, due 07/30/04 413,000
4,300 Life Re Capital Trust, $3.96 Convertible Preferred 310,406
10,800 Philadelphia Consolidated, $0.70 Convertible Preferred 115,425
-------------
Total Insurance 838,831
-------------
FINANCIAL SERVICES (2.7%)
7,400 SunAmerica Corp., $3.188 Convertible Preferred 350,113
17,900 Westpac Banking Corp., Ltd., $3.135 Convertible Preferred 610,829
-------------
Total Financial Services 960,942
-------------
</TABLE>
* Restricted Security. (See Note 6)
See accompanying Notes to Financial Statements.
8
<PAGE>
TCW GALILEO FUNDS, INC.
(U.S. Equities)
April 30, 1998
<TABLE>
<CAPTION>
NUMBER OF
SHARES OR PRINCIPAL
AMOUNT FIXED INCOME AND EQUITY SECURITIES VALUE
- ------------------- ---------------------------------- -------------
<S> <C> <C>
UTILITIES - GAS & ELECTRIC (0.8%)
5,700 El Paso Energy Capital Trust, $2.38 Convertible Preferred $ 299,606
-------------
TOTAL CREDIT SENSITIVE (Cost:$2,139,046) 2,324,360
-------------
TOTAL FIXED INCOME AND EQUITY SECURITIES
(Cost: $31,000,603) (98.6%) 35,873,647
-------------
SHORT-TERM INVESTMENT (Cost: $682,505) (1.9%)
-------------------------------------------------------
$ 682,505 Bank of New York Depository Reserve, 4.6%, due 05/01/98 682,505
-------------
TOTAL INVESTMENTS (Cost: $31,683,108) (100.5%) 36,556,152
LIABILITIES IN EXCESS OF OTHER ASSETS (-0.5%) (163,244)
-------------
NET ASSETS (100%) $ 36,392,908
=============
</TABLE>
See accompanying Notes to Financial Statements.
9
<PAGE>
TCW GALILEO CORE EQUITIES FUND
SCHEDULE OF INVESTMENTS (Unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- ------------ ----------------- -------------
<S> <C> <C>
BASIC INDUSTRIES (8.2% of Net Assets)
TRANSPORTATION (8.2%)
9,700 AMR Corp. $ 1,478,038 **
34,033 Burlington Northern Santa Fe 3,369,267
38,800 Delta Air Lines, Inc. 4,510,500 **
31,000 UAL Corp. 2,702,813 **
-------------
TOTAL BASIC INDUSTRIES (Cost: $8,710,861) 12,060,618
-------------
CAPITAL GOODS (30.0%)
AEROSPACE (2.6%)
75,600 Boeing Co. 3,784,725
-------------
ELECTRONICS, SEMICONDUCTORS & INSTRUMENTS (6.8%)
30,300 Honeywell, Inc. 2,821,688
89,900 Intel Corp. 7,265,044 **
-------------
Total Electronics, Semiconductors & Instruments 10,086,732
-------------
TELECOMMUNICATIONS EQUIPMENT (12.1%)
64,800 Ascend Communications, Inc. 2,822,850 **
105,350 Cisco Systems, Inc. 7,716,888 **
44,900 Lucent Technologies, Inc. 3,418,012 **
115,100 3Com Corp. 3,942,175 **
-------------
Total Telecommunications Equipment 17,899,925
-------------
INFORMATION PROCESSING (7.3%)
92,900 Computer Sciences Corp. 4,900,475 **
64,700 Microsoft Corp. 5,831,087 **
-------------
Total Information Processing 10,731,562
-------------
SERVICES (1.2%)
64,000 Corrections Corp. Of America 1,776,000 **
-------------
TOTAL CAPITAL GOODS (Cost: $27,347,904) 44,278,944
-------------
CONSUMER CYCLICALS (4.4%)
AUTOS & AUTO PARTS (4.4%)
68,100 Lear Corp. 3,647,606 **
38,600 Magna International, Inc. 2,878,112
-------------
TOTAL CONSUMER CYCLICALS (Cost: $4,380,488) 6,525,718
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
10
<PAGE>
TCW GALILEO FUNDS, INC.
(U.S. Equities)
April 30, 1998
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- ------------ ----------------- -------------
<S> <C> <C>
CONSUMER STAPLES (38.8%)
BEVERAGES, DISTRIBUTIONS & RESTAURANTS (1.9%)
69,200 PepsiCo, Inc. $ 2,746,375
-------------
COSMETICS & HOUSEHOLD PRODUCTS (3.4%)
60,100 Procter & Gamble Co. 4,939,469
-------------
HEALTHCARE (12.5%)
28,900 Johnson & Johnson 2,062,737
61,900 Lilly (Eli) & Co. 4,305,919
25,700 Pfizer, Inc. 2,924,981
53,500 United Healthcare Corp. 3,758,375 **
28,700 Warner-Lambert Co. 5,429,681
-------------
Total Healthcare 18,481,693
-------------
LEISURE, ENTERTAINMENT, MEDIA & HOTELS (11.8%)
146,291 CBS Corp. 5,211,617
76,700 Cox Communications, Inc. 3,422,737 **
88,900 Mirage Resorts, Inc. 1,961,356 **
87,300 Time Warner, Inc. 6,853,050
-------------
Total Leisure, Entertainment, Media & Hotels 17,448,760
-------------
RETAIL (7.2%)
89,249 Home Depot, Inc. 6,213,962 **
89,700 Tandy Corp. 4,462,575
-------------
Total Retail 10,676,537
-------------
TOBACCO (2.0%)
78,000 Philip Morris Companies, Inc. 2,910,375
-------------
TOTAL CONSUMER STAPLES (Cost: $43,220,657) 57,203,209
-------------
CREDIT SENSITIVE (18.6%)
FINANCIAL SERVICES (15.2%)
47,400 Associates First Capital Corp. 3,543,150
5,600 Citicorp 842,800
61,200 Federal National Mortgage Association 3,664,350
14,800 Golden West Financial Corp. 1,558,625
38,100 Marsh & McLennan Companies, Inc. 3,471,862
50,100 Merrill Lynch & Co., Inc. 4,396,275
13,600 Wells Fargo & Co. 5,011,600
-------------
Total Financial Services 22,488,662
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
11
<PAGE>
TCW GALILEO CORE EQUITIES FUND
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- ------------ ----------------- -------------
<S> <C> <C>
UTILITIES (3.4%)
27,400 AT&T Corp. $ 1,645,713
51,400 BellSouth Corp. 3,299,238
-------------
Total Utilities 4,944,951
-------------
TOTAL CREDIT SENSITIVE (Cost: $20,017,030) 27,433,613
-------------
TOTAL INVESTMENTS (Cost:$103,676,940) (99.9%) 147,502,102
EXCESS OF OTHER ASSETS OVER LIABILITIES (0.1%) 116,477
-------------
NET ASSETS (100%) $ 147,618,579
=============
</TABLE>
See accompanying Notes to Financial Statements.
12
<PAGE>
TCW GALILEO FUNDS, INC.
(U.S. Equities)
TCW GALILEO EARNINGS MOMENTUM FUND
April 30, 1998
SCHEDULE OF INVESTMENTS (Unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- ------------ ----------------- -------------
<S> <C> <C>
CAPITAL GOODS (37.2% of Net Assets)
COMPUTER SOFTWARE & SERVICES (7.2%)
38,400 Ciber, Inc. $ 1,248,000 **
1,100 Exodus Communications, Inc. 41,800 **
71,800 Legato Systems, Inc. 2,270,675 **
400 Manhattan Associates, Inc. 9,050 **
23,100 Renaissance Worldwide, Inc. 414,356 **
8,400 VeriSign, Inc. 322,350 **
-------------
Total Computer Software & Services 4,306,231
-------------
ELECTRONICS (9.8%)
85,100 Anicom, Inc. 1,329,688 **
52,800 Bolder Technologies Corp. 514,800 **
800 Broadcom Corp. 38,400 **
58,100 C.P. Clare Corp. 748,038 **
50,700 Computer Products, Inc. 1,115,400 **
44,700 MRV Communications, Inc. 1,201,312 **
36,900 Sheldahl, Inc. 387,450 **
24,200 Tollgrade Communications, Inc. 547,525
-------------
Total Electronics 5,882,613
-------------
INFORMATION PROCESSING (13.4%)
23,900 Aspen Technology, Inc. 1,168,113 **
44,450 Citrix Systems, Inc. 2,761,456 **
13,300 Documentum, Inc. 716,538 **
11,100 Genesys Telecommunications Laboratories, Inc. 332,306 **
6,600 Mobius Management Systems, Inc. 122,100 **
10,400 PC Connection, Inc. 225,550 **
31,800 QAD, Inc. 441,225 **
29,700 Radiant Systems, Inc. 668,250 **
32,700 Saville Systems, PLC (ADR) (Ireland) 1,630,912 **
-------------
Total Information Processing 8,066,450
-------------
OFFICE EQUIPMENT & BUILDING SUPPLIES (2.2%)
3,600 CompX International, Inc. 90,450 **
51,200 Daisytek International Corp. 1,241,600 **
-------------
Total Office Equipment & Building Supplies 1,332,050
-------------
POLLUTION CONTROL (4.6%)
9,000 American Disposal Services, Inc. 360,844 **
47,200 Tetra Tech, Inc. 1,144,600 **
52,800 Tetra Technologies, Inc. 1,263,900 **
-------------
Total Pollution Control 2,769,344
-------------
TOTAL CAPITAL GOODS (Cost: $15,194,942) 22,356,688
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
13
<PAGE>
TCW GALILEO EARNINGS MOMENTUM FUND
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- ------------- ----------------- -------------
<S> <C> <C>
CONSUMER STAPLES (56.2%)
COSMETICS & HOUSEHOLD PRODUCTS (0.9%)
54,400 Enamelon, Inc. $ 537,200 **
-------------
DRUGS & HOSPITAL SUPPLY (4.0%)
49,900 BioChem Pharma, Inc. (Canada) 1,269,331 **
26,500 Pharmacyclics, Inc. 718,812 **
36,200 Selfcare, Inc. 393,675 **
-------------
Total Drugs & Hospital Supply 2,381,818
-------------
FOODS, HOTELS & RESTAURANTS (3.8%)
51,700 Fine Host Corp. 248,806 **
22,000 Il Fornaio (America) Corp. 297,000 **
23,900 O'Charley's, Inc. 480,988 **
34,450 Signature Resorts, Inc. 615,794 **
23,100 United Natural Foods, Inc. 652,575 **
-------------
Total Foods, Hotels & Restaurants 2,295,163
-------------
HEALTHCARE (12.3%)
26,600 BioReliance Corp. 412,300 **
32,000 Concentra Managed Care, Inc. 996,000 **
49,200 Healthcare Recoveries, Inc. 1,174,650 **
18,100 Inhale Therapeutic Systems 506,800 **
2,800 K-V Pharmaceutical Co. 60,550 **
13,600 Novoste Corp. 336,600 **
46,600 Ocular Sciences, Inc. 1,304,800 **
51,700 Simione Central Holdings, Inc. 801,350 **
55,033 Total Renal Care Holdings, Inc. 1,822,968 **
-------------
Total Healthcare 7,416,018
-------------
LEISURE, ENTERTAINMENT, PHOTO & MEDIA (7.5%)
62,700 Gemstar International Group, Ltd. 2,421,787 **
47,600 Macrovision Corp. 1,166,200 **
22,600 Metro Networks, Inc. 898,350 **
-------------
Total Leisure, Entertainment, Photo & Media 4,486,337
-------------
RETAIL (5.5%)
20,200 Guitar Center, Inc. 575,700 **
64,750 Just for Feet, Inc. 1,424,500 **
71,300 Marks Brothers Jewelers, Inc. 1,292,313 **
-------------
Total Retail 3,292,513
-------------
SCHOOLS (0.8%)
16,700 EduTrek International, Inc. 463,425 **
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
14
<PAGE>
TCW GALILEO FUNDS, INC.
(U.S. Equities)
April 30, 1998
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- ------------ ----------------- -------------
<S> <C> <C>
SERVICES - BUSINESS (21.4%)
18,200 Administaff, Inc. $ 784,875 **
33,200 Brightpoint, Inc. 647,400 **
38,200 CSG Systems International, Inc. 1,738,100 **
9,700 DoubleClick, Inc. 404,369 **
38,900 Envoy Corp. 1,638,662 **
24,500 Hagler Bailly, Inc. 649,250 **
43,200 Innovative Valve Technologies, Inc. 718,200 **
600 ISS Group, Inc. 26,550 **
4,800 Kroll O'Gara Co. 102,300 **
35,600 MAXIMUS, Inc. 1,121,400 **
21,200 Nova Corp. 720,800 **
49,600 Pegasus Systems, Inc. 1,326,800 **
56,100 Stericycle, Inc. 813,450 **
24,600 Trico Marine Services, Inc. 556,575 **
21,600 USWeb Corp. 492,750 **
1,400 Visual Networks, Inc. 46,375 **
46,500 Wilmar Industries, Inc. 1,110,187 **
-------------
Total Services - Business 12,898,043
-------------
TOTAL CONSUMER STAPLES (Cost: $25,521,341) 33,770,517
-------------
CREDIT SENSITIVE (6.3%)
BANKS & FINANCIAL SERVICES (5.0%)
21,100 American Capital Strategies, Ltd. 477,388 **
19,500 Capital Automotive REIT 303,469 **
34,500 Consolidation Capital Corp. 761,156 **
17,600 Profit Recovery Group International, Inc. 457,600 **
37,800 Trammell Crow Co. 1,001,700 **
-------------
Total Banks & Financial Services 3,001,313
-------------
INSURANCE (1.3%)
10,900 Annuity and Life Re (Holdings), Ltd. 260,238 **
22,000 PAULA Financial, Inc. 528,000 **
Total Insurance 788,238
-------------
TOTAL CREDIT SENSITIVE (Cost: $3,392,453) 3,789,551
-------------
TOTAL INVESTMENTS (Cost: $44,108,736) (99.7%) 59,916,756
EXCESS OF OTHER ASSETS OVER LIABILITIES (0.3%) 210,214
-------------
NET ASSETS (100%) $ 60,126,970
=============
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
15
<PAGE>
TCW GALILEO MID-CAP GROWTH FUND
SCHEDULE OF INVESTMENTS (Unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- ------------ ----------------- -------------
<S> <C> <C>
COMMON STOCK
------------
BASIC MATERIALS (4.4% of Net Assets)
OIL & GAS (4.4%)
154,300 Patterson Energy, Inc. $ 2,160,200 **
95,100 Precision Drilling Corp. 2,270,513 **
-------------
TOTAL BASIC MATERIALS (Cost: $5,406,843) 4,430,713
-------------
CAPITAL GOODS (32.0%)
COMPUTER SOFTWARE & SERVICES (7.5%)
49,700 Cerner Corp. 1,481,681 **
103,100 Peoplesoft, Inc. 4,794,150 **
33,000 VeriSign, Inc. 1,266,375 **
-------------
Total Computer Software & Services 7,542,206
-------------
ELECTRONICS (9.2%)
101,000 Fore Systems, Inc. 2,310,375 **
98,700 Maxim Integrated Products, Inc. 3,985,013 **
50,000 Pairgain Technologies, Inc. 921,875 **
44,900 XILINX, Inc. 2,054,175 **
-------------
Total Electronics 9,271,438
-------------
INFORMATION PROCESSING (15.3%)
12,100 Alteria Corp. 490,050 **
45,900 Avid Technology, Inc. 1,990,913 **
30,000 CBT Group, PLC (ADR) (Ireland) 1,526,250 **
171,000 Siebel Systems, Inc. 4,424,625 **
29,700 Transaction Systems Architects, Inc. 1,247,400 **
48,100 Yahoo!, Inc. 5,720,894 **
-------------
Total Information Processing 15,400,132
-------------
TOTAL CAPITAL GOODS (Cost: $18,713,199) 32,213,776
-------------
CONSUMER STAPLES (56.2%)
BEVERAGES, DISTRIBUTIONS & RESTAURANTS (1.5%)
31,400 Starbucks, Corp. 1,511,125 **
-------------
DRUGS & HOSPITAL SUPPLIES (4.5%)
126,000 Safeskin Corp. 4,488,750 **
-------------
FOODS, HOTELS & RESTAURANTS (2.7%)
64,500 Mirage Resorts, Inc. 1,423,031 **
72,500 Signature Resorts, Inc. 1,295,938 **
-------------
Total Foods, Hotels &Restaurants 2,718,969
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
16
<PAGE>
TCW GALILEO FUNDS, INC.
(U.S. EQUITIES)
April 30, 1998
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- -------------- ----------------- ------------
<S> <C> <C>
HEALTHCARE (5.1%)
25,600 Biogen, Inc. $ 1,136,000 **
80,100 Coventry Health Care, Inc. 1,356,694 **
82,350 Health Management Associates, Inc., Class A 2,594,025 **
------------
Total Healthcare 5,086,719
------------
LEISURE, ENTERTAINMENT, PHOTO & MEDIA (13.1%)
17,600 At Home Corp. 586,300
45,900 Cablevision Systems Corp. 2,819,981 **
54,000 Clear Channel Communications, Inc. 5,089,500 **
54,000 Playboy Enterprises, Inc. 945,000 **
31,900 TCA Cable TV, Inc. 1,969,825
58,200 Westwood One, Inc. 1,746,000 **
------------
Total Leisure, Entertainment, Photo & Media 13,156,606
------------
RETAIL (11.8%)
11,100 AmazonCom, Inc. 1,018,425 **
55,600 Bed, Bath & Beyond, Inc. 2,738,300 **
57,400 Best Buy Company, Inc. 4,032,350 **
13,000 Giant Food, Inc. 484,250
49,600 Just for Feet, Inc. 1,091,200 **
145,700 Petsmart, Inc. 1,711,975 **
89,900 Sunglass Hut International, Inc. 859,669 **
------------
Total Retail 11,936,169 **
------------
SERVICES-BUSINESS (17.5%)
67,263 Apollo Group, Inc., Class A 2,303,741 **
34,300 Corrections Corp. of America 951,825 **
55,100 National TechTeam, Inc. 495,900 **
89,500 Outdoor Systems, Inc. 2,841,625 **
60,850 Paychex, Inc. 3,304,916
71,650 Robert Half International, Inc. 3,878,056 **
148,800 Romac International, Inc. 3,943,200 **
------------
Total Services-Business 17,719,263
------------
TOTAL CONSUMER STAPLES (Cost: $35,450,846) 56,617,601
------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
17
<PAGE>
TCW GALILEO MID-CAP GROWTH FUND
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
CREDIT SENSITIVE (6.5%)
BANKS, FINANCE SERVICES, & BUILDING (5.6%)
10,200 CCA Prison Realty Trust $ 361,463
44,800 E*TRADE Group, Inc. 1,117,200 **
44,100 Hartford Life, Inc. 2,180,190 **
9,000 Trammell Crow Co. 238,500 **
22,500 T. Rowe Price Associates 1,698,750
-------------
Total Banks, Finance Services, & Building 5,596,103
-------------
REAL ESTATE (0.9%)
25,000 CB Commercial Real Estate Services Group, Inc. 917,188 **
-------------
TOTAL CREDIT SENSITIVE (Cost: $5,133,617) 6,513,291
-------------
TOTAL COMMON STOCKS (Cost: $64,704,505) (99.1%) 99,775,381
-------------
PREFERRED STOCK
BASIC INDUSTRIES (Cost: $707,937)
ENERGY & OIL SERVICES (0.9%)
38,600 Newpark Resources, Inc. 928,813 **
-------------
TOTAL INVESTMENTS (Cost: $65,412,442) (100.0%) 100,704,194
LIABILITIES IN EXCESS OF OTHER ASSETS (0.0%) (8,409)
-------------
NET ASSETS (100%) $ 100,695,785
=============
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
18
<PAGE>
TCW GALILEO FUNDS, INC.
(U.S. EQUITIES)
TCW GALILEO SMALL CAP GROWTH FUND
April 30, 1998
SCHEDULE OF INVESTMENTS (Unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
Number of
Shares or
Warrants EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
COMMON STOCK
------------
BASIC MATERIALS (2.2%)
ENERGY & OIL SERVICES (2.2%)
3,700 Cal Dive International, Inc. $ 122,100 **
70,000 Eagle Geophysical, Inc. 1,303,750 **
39,700 Friede Goldman International, Inc. 1,597,925 **
-------------
TOTAL BASIC MATERIALS (Cost: $2,298,448) 3,023,775
-------------
CAPITAL GOODS (43.0%)
COMPUTER SOFTWARE & SERVICES (13.0%)
16,200 Applied Graphics Technologies, Inc. 810,000 **
28,400 Aspect Development, Inc. 1,798,075 **
33,600 Cambridge Technology Partners, Inc. 1,755,600 **
51,800 DAOU Systems, Inc. 932,400 **
13,500 Cerner Corp. 402,469 **
38,600 Ciber, Inc. 1,254,500 **
42,400 Clarify, Inc. 583,000 **
53,250 Computer Horizons Corp. 2,020,172 **
35,875 Computer Management Sciences, Inc. 923,781 **
34,000 International Network Services 1,143,250 **
102,600 Legato Systems, Inc. 3,244,725 **
39,900 Peoplesoft, Inc. 1,855,350 **
16,800 Renaissance Worldwide, Inc. 301,350 **
20,200 VeriSign, Inc. 775,175 **
-------------
Total Computer Software & Services 17,799,847
-------------
ELECTRONICS (6.2%)
11,700 Aavid Thermal Technologies, Inc. 408,769 **
3,384 American Satellite Network, Inc., Warrants, expire 06/30/99 - **
7,700 Bolder Technologies Corp. 75,075 **
50,900 Computer Products, Inc. 1,119,803 **
72,600 Maxim Integrated Products, Inc. 2,931,225 **
51,900 MRV Communications, Inc. 1,394,813 **
5,100 Natural Microsystems Corp. 164,475 **
37,600 Premisys Communications, Inc. 1,097,455 **
46,400 Xylan Corp. 1,320,950 **
-------------
Total Electronics 8,512,565
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
19
<PAGE>
TCW GALILEO SMALL CAP GROWTH FUND
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
INFORMATION PROCESSING (23.6%)
41,900 Aspen Technology, Inc. $ 2,047,863 **
29,400 Avid Technology, Inc. 1,275,225 **
35,400 CBT Group, PLC (ADR)(Ireland) 1,800,975 **
98,850 Citrix Systems, Inc. 6,141,056 **
81,100 Dendrite International, Inc. 2,590,131 **
35,600 Documentum, Inc. 1,917,950 **
19,300 Genesys Telecommunications Laboratories, Inc. 577,794 **
45,400 GeoTel Communications Corp. 1,254,175 **
31,400 HNC Software, Inc. 1,224,600 **
46,800 Macromedia, Inc. 699,075 **
1,200 Micromuse, Inc. 26,700 **
13,400 Network Appliance, Inc. 483,238 **
900 PC Connection, Inc. 19,519 **
21,400 QAD, Inc. 296,925 **
103,400 Saville Systems, PLC (ADR) (Ireland) 5,157,075 **
78,000 Siebel Systems, Inc. 2,018,250 **
77,800 Sigma Designs, Inc. 318,494 **
72,800 TAVA Technologies, Inc. 950,950 **
15,000 THINK New Ideas, Inc. 427,500 **
9,000 TMP Worldwide, Inc. 238,500 **
8,900 Transaction System Architects, Inc. 373,800 **
20,850 Yahoo!, Inc. 2,479,847 **
-------------
Total Information Processing 32,319,642
-------------
OFFICE EQUIPMENT & SUPPLIES (0.2%)
13,600 Daisytek International Corp. 329,800 **
-------------
TOTAL CAPITAL GOODS (Cost: $29,470,100) 58,961,854
-------------
CONSUMER STAPLES (48.9%)
DRUGS & HOSPITAL SUPPLY (3.6%)
8,400 Pharmacyclics, Inc. 227,850 **
131,000 Safeskin Corp. 4,666,875 **
1,700 Sepracor, Inc. 78,625 **
-------------
Total Drugs & Hospital Supply 4,973,350
-------------
FOODS, HOTELS & RESTAURANTS (1.6%)
2,300 Fine Host Corp. 11,069 **
19,900 Il Fornaio (America) Corp. 268,650 **
30,300 Interstate Hotels Co. 999,900 **
37,950 Signature Resorts, Inc. 678,356 **
12,200 Silverleaf Resorts, Inc. 289,750 **
-------------
Total Foods, Hotels & Restaurants 2,247,725
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
20
<PAGE>
TCW GALILEO FUNDS, INC.
(U.S. Equities)
April 30, 1998
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
HEALTHCARE (9.7%)
21,800 BioReliance Corp. $ 337,900 **
49,400 Cell Therapeutics, Inc. 186,794 **
26,900 Columbia Laboratories, Inc. 242,100 **
72,759 Concentra Managed Care, Inc. 2,264,624 **
47,500 Coventry Health Care, Inc. 804,531 **
26,000 Curative Health Services, Inc. 806,000 **
69,300 Diametrics Medical, Inc. 545,738 **
60,800 Hanger Orthopedic Group, Inc. 1,136,200 **
11,100 Healthcare Recoveries, Inc. 265,013 **
22,300 IMPATH, Inc. 830,675 **
75,000 IRIDEX Corp. 679,688 **
13,300 NeoPath, Inc. 185,369 **
75,400 Neose Technologies, Inc. 1,102,725 **
83,000 Ocular Sciences, Inc. 2,324,000 **
73,900 PolyMedica Industries, Inc. 720,525 **
29,500 QuadraMed Corp. 840,750 **
-------------
Total Healthcare 13,272,632
-------------
LEISURE, ENTERTAINMENT, PHOTO & MEDIA (8.2%)
38,600 Clear Channel Communications, Inc. 3,638,050 **
62,800 Gemstar International Group, Ltd. 2,425,650 **
28,900 International Speedway Corp. 1,036,788
28,000 Metro Networks, Inc. 1,113,000 **
87,300 North Face, Inc. 1,958,794 **
36,200 Westwood One, Inc. 1,086,000 **
-------------
Total Leisure, Entertainment, Photo & Media 11,258,282
-------------
RETAIL (6.5%)
38,500 Bed, Bath & Beyond, Inc. 1,896,125 **
58,700 Cost Plus, Inc. 1,900,413 **
20,350 Dollar Tree Stores, Inc. 1,103,988 **
93,450 Just for Feet, Inc. 2,055,900 **
34,900 Marks Brothers Jewelers, Inc. 632,563 **
6,800 Men's Wearhouse, Inc. 286,450 **
11,200 Timberland Co. 959,000 **
-------------
Total Retail 8,834,439
-------------
SCHOOLS (0.7%)
52,100 Computer Learning Centers, Inc. 625,200 **
12,600 EduTrek International, Inc. 349,650 **
-------------
Total Schools 974,850
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
21
<PAGE>
TCW GALILEO SMALL CAP GROWTH FUND
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
SERVICES - BUSINESS (18.6%)
5,000 Administaff, Inc. $ 215,625 **
28,800 Caribiner International, Inc. 576,000 **
43,200 Compass International Services Corp. 577,800 **
49,492 CSG Systems International, Inc. 2,251,886 **
13,100 DoubleClick, Inc. 546,106 **
9,500 Eagle USA Airfreight, Inc. 312,313 **
61,100 Envoy Corp. 2,573,838 **
3,700 First Consulting Group, Inc. 88,800 **
58,400 MAXIMUS, Inc. 1,839,600 **
29,400 Meta Group, Inc. 1,017,975 **
70,500 National TechTeam, Inc. 634,500 **
117,550 Outdoor Systems, Inc. 3,732,213 **
15,800 Pegasus Systems, Inc. 422,650 **
52,050 Robert Half International, Inc. 2,817,206 **
102,000 Romac International, Inc. 2,703,000 **
47,400 Snyder Communications, Inc. 2,014,500 **
26,900 Superior Consultant Holdings Corp. 1,037,331 **
17,700 USWeb Corp. 403,781 **
35,950 Vincam Group, Inc. 975,144 **
1,000 Visual Networks, Inc. 33,125 **
37,600 Youth Services International, Inc. 681,500 **
-------------
Total Services - Business 25,454,893
-------------
TOTAL CONSUMER STAPLES (Cost: $42,486,207) 67,016,171
-------------
CREDIT SENSITIVE (3.9%)
BANKS & FINANCIAL SERVICES (2.3%)
3,000 Bank of Granite Corp. 113,250
39,000 Consolidation Capital Corp. 860,438 **
31,900 E*TRADE Group, Inc. 795,506 **
29,200 Imperial Credit Industries, Inc. 737,300
56,200 United Industrial Corp. 723,575
-------------
Total Banks & Financial Services 3,230,069
-------------
INSURANCE (0.1%)
4,100 Annuity and Life Re (Holdings), Ltd. 97,888 **
-------------
REAL ESTATE (1.2%)
23,700 CB Commercial Real Estate Services Group, Inc. 869,494 **
43,300 Imperial Credit Commercial Mortgage Investment Corp. 625,144 **
2,700 LaSalle Partners, Inc. 92,813 **
-------------
Total Real Estate 1,587,451
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
22
<PAGE>
TCW GALILEO FUNDS, INC.
(U.S. EQUITIES)
April 30, 1998
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- --------------- ----------------- ---------------
<S> <C> <C>
Telecommunications (0.3%)
24,100 SmarTalk Teleservices, Inc. $ 478,988 **
-------------
TOTAL CREDIT SENSITIVE (Cost: $5,377,132) 5,394,396
-------------
TOTAL COMMON STOCK (Cost: $79,631,887) (98.0%) 134,396,196
-------------
PREFERRED STOCK
BASIC INDUSTRIES (Cost: $490,791)
Energy & Oil Services (1.0%)
55,600 Newpark Resources, Inc. 1,337,875 **
-------------
TOTAL EQUITY SECURITIES (Cost: $80,122,678) (99.0%) 135,734,071
-------------
Principal
Amount SHORT-TERM INVESTMENT (Cost: $1,784,722) (1.3%)
- --------------- -----------------------------------------------
$ 1,784,722 Bank of New York Depository Reserve, 4.6%, due 05/01/98 1,784,722
-------------
TOTAL INVESTMENTS (Cost: $81,907,400) (100.3%) 137,518,793
LIABILITIES IN EXCESS OF OTHER ASSETS (-0.3%) (418,790)
-------------
NET ASSETS (100%) $ 137,100,003
=============
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
23
<PAGE>
TCW GALILEO VALUE OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS (Unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- -------------- ----------------- ---------------
<S> <C> <C>
BASIC MATERIALS (17.8% of Net Assets)
CHEMICALS (3.1%)
12,000 Ferro Corp. $ 345,750
7,000 Great Lakes Chemical Corp. 351,750
20,000 Schulman (A.), Inc. 447,500
6,200 Wellman, Inc. 140,275
-------------
Total Chemicals 1,285,275
-------------
CONSTRUCTION (1.2%)
30,000 Johns Manville Corp. 489,375
-------------
ENERGY & OIL SERVICES (11.2%)
20,700 Devon Energy Corp. 825,413
20,000 Enron Oil & Gas Co. 467,500
26,000 Global Marine, Inc. 612,625 **
8,400 Marine Drilling Co., Inc. 204,225 **
6,000 Mitchell Energy & Development Corp. 151,500
15,000 Pioneer National Resources Co. 359,062 **
38,300 Pride International, Inc. 931,169 **
28,000 Triton Energy, Ltd. 1,123,500 **
-------------
Total Energy & Oil Services 4,674,994
-------------
METALS (2.3%)
22,000 Allegheny Teledyne, Inc. 558,250
16,000 Asarco Inc. 399,000
-------------
Total Metals 957,250
-------------
TOTAL BASIC MATERIALS (Cost: $6,954,876) 7,406,894
-------------
CAPITAL GOODS (42.2% )
AEROSPACE/DEFENSE (0.9%)
14,000 Coltec Industries, Inc. 350,000 **
-------------
ELECTRONICS (23.6%)
32,000 Anixter International, Inc. 638,000 **
12,000 AVX Corp. 246,750
130,000 Commscope, Inc. 2,112,500 **
55,000 Cypress Semiconductor Corp. 550,000 **
17,000 EG & G, Inc. 512,125
69,000 General Instrument Corp. 1,548,187 **
51,000 General Semiconductor Corp. 698,063 **
43,500 International Rectifier Corp. 511,125 **
18,000 KLA-Tencor Corp. 725,625 **
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
24
<PAGE>
TCW GALILEO FUNDS, INC.
(U.S. EQUITIES)
April 30, 1998
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- -------------- ----------------- ----------------
<S> <C> <C>
ELECTRONICS (CONTINUED)
9,000 Loral Space & Communications, Ltd. $ 281,813 **
20,000 Memc Electronic Materials, Inc. 281,250 **
19,200 National Semiconductor Corp. 422,400 **
8,000 Scientific Atlanta, Inc. 191,000 **
45,000 S3, Inc. 329,062 **
40,000 Vishay Intertechnology, Inc. 732,500 **
-------------
Total Electronics 9,780,400
-------------
INFORMATION PROCESSING (14.5%)
45,000 Adaptec, Inc. 1,065,938 **
70,000 Komag, Inc. 1,085,000 **
52,000 Mentor Graphics Corp. 546,000 **
13,000 NCR Corp. 476,937 **
40,000 Read Rite Corp. 552,500 **
56,000 Reynolds & Reynolds Co. 1,288,000
51,800 Western Digital Corp. 1,023,050 **
-------------
Total Information Processing 6,037,425
-------------
OFFICE EQUIPMENT & SUPPLIES (0.5%)
9,000 Ikon Office Solutions, Inc. 217,688
------------
MACHINERY (DIVERSIFIED) (0.7%)
14,000 Stewart & Stevenson Services, Inc. 311,500
------------
MANUFACTURING (2.0%)
11,800 Millipore Corp. 407,100
12,000 ITT Industries, Inc. 437,250
-------------
Total Manufacturing 844,350
-------------
TOTAL CAPITAL GOODS (Cost: $16,566,769) 17,541,363
------------
CONSUMER CYCLICALS (2.1%)
AUTO PARTS & EQUIPMENT (1.2%)
20,000 Cooper Tire & Rubber Co. 477,500
-------------
HOUSEHOLD FURNITURE & APPLIANCES (0.9%)
7,500 Black & Decker Corp. 387,188
-------------
TOTAL CONSUMER CYCLICALS (Cost: $736,402) 864,688
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
25
<PAGE>
TCW GALILEO VALUE OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
CONSUMER STAPLES (28.9%)
HOUSEHOLD PRODUCTS (3.5%)
36,000 First Brands Corporation $ 965,250
17,000 Rubbermaid, Inc. 486,625
-------------
Total Household Products 1,451,875
-------------
FOOD, HOTELS, & RESTAURANTS (0.7%)
16,500 Circus Circus Enterprises 298,031 **
-------------
LEISURE, ENTERTAINMENT, PHOTO & MEDIA (7.7%)
17,000 Banta Corp. 544,000
30,100 Cabletron Systems, Inc. 398,825 **
6,000 Cox Communications, Inc. 267,750 **
12,000 Harte-Hanks Communications, Inc. 272,250 **
17,000 Houghton Mifflin Company 553,563
11,000 Polaroid Corporation 484,000
25,000 Reader's Digest Association, Inc. 671,875
-------------
Total Leisure, Entertainment, Photo & Media 3,192,263
-------------
HEALTHCARE (3.1%)
8,600 Allergan, Inc. 357,438
8,500 Beckman Coulter 473,344
19,000 Beverly Enterprises, Inc. 299,250 **
10,000 Novacare Corp. 139,375 **
-------------
Total Healthcare 1,269,407
-------------
RETAIL (6.5%)
9,000 Great Atlantic & Pacific Tea Company, Inc. 280,125
30,000 Heilig-Meyers Co. 421,875
23,000 Pep Boys Manny, Moe, and Jack 500,250
21,000 Saks Holdings, Inc. 468,562 **
15,000 Sotheby's Holdings, Inc. 345,937
35,000 Talbots, Inc. (The) 665,000
-------------
Total Retail 2,681,749
-------------
SERVICES - BUSINESS (4.8%)
8,000 Block (H. & R.), Inc. 360,000
10,000 Dun & Bradstreet 355,000
29,000 Harland (John H.) Company 516,562
57,000 Olsten Corp. 780,188
-------------
Total Services - Business 2,011,750
-------------
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
26
<PAGE>
TCW GALILEO FUNDS, INC.
(U.S. Equities)
April 30, 1998
<TABLE>
<CAPTION>
Number of
Shares EQUITY SECURITIES Value
- -------------- ----------------- -------------
<S> <C> <C>
TEXTILES (2.6%)
17,000 Fruit of the Loom, Inc. $ 635,375 **
8,000 Springs Industries, Inc. 440,500
-------------
Total Textiles 1,075,875
-------------
TOTAL CONSUMER STAPLES (Cost: $11,072,781) 11,980,950
-------------
CREDIT SENSITIVE (8.6%)
FINANCIAL SERVICES, BUILDING & REAL ESTATE (4.7%)
18,000 Champion Enterprises, Inc. 447,750 **
6,000 Gatx Corp. 497,250
10,000 Lennar Corp. 274,375 **
14,000 New Plan Realty Trust 342,125
12,000 Simon Debartolo Group, Inc. 395,250
-------------
Total Financial Services, Building & Real Estate 1,956,750
-------------
INSURANCE (3.9%)
10,500 American Financial Group, Inc. 457,406
6,000 NAC Re Corp. 300,000
10,000 Old Republic International Corp. 452,500
10,000 Penncorp Financial Group, Inc. 260,000
9,000 Reliance Group Holdings, Inc. 155,812
-------------
Total Insurance 1,625,718
-------------
TOTAL CREDIT SENSITIVE (Cost: $2,965,077) 3,582,468
-------------
TOTAL EQUITY SECURITIES (Cost: $38,295,905) (99.6%) 41,376,363
-------------
Principal
Amount SHORT-TERM INVESTMENT (COST: $136,194) (0.3%)
- -------------- ---------------------------------------------
$ 136,194 Bank of New York Depository Reserve, 4.6%, due 05/01/98 136,194
-------------
TOTAL INVESTMENTS (Cost: $38,432,099) (99.9%) 41,512,557
EXCESS OF OTHER ASSETS OVER LIABILITIES (0.1%) 25,587
-------------
NET ASSETS (100%) $ 41,538,144
=============
</TABLE>
** Non-income producing.
See accompanying Notes to Financial Statements.
27
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES (Unaudited)
- ------------------------------------------------
<TABLE>
<CAPTION>
TCW GALILEO TCW GALILEO
CONVERTIBLE SECURITIES CORE EQUITIES
FUND FUND
---------------------- -------------
<S> <C> <C>
ASSETS
Investments, at Value (1) $ 36,556 $ 147,502
Receivables for FundShares Sold 50 50
Receivables for Securities Sold 619 248
Accrued Interest and Dividends Receivable 242 131
Deferred Organization Costs 2 -
---------------- ---------------
Total Assets 37,469 147,931
---------------- ---------------
LIABILITIES
Payables for Fund Shares Redeemed 9 37
Payables for Securities Purchased 998 -
Management Fees and Other Accrued Expenses 69 275
---------------- ---------------
Total Liabilities 1,076 312
---------------- ---------------
NET ASSETS $ 36,393 $ 147,619
================ ===============
NET ASSETS CONSIST OF:
Paid-in Capital $ 29,886 $ 51,274
Undistributed Net Realized Gain on Investments 1,813 52,309
Unrealized Appreciation on Investments 4,873 43,825
Undistributed (Overdistributed) Net Investment Income (179) 211
Net Investment (Loss) - -
---------------- ---------------
NET ASSETS $ 36,393 $ 147,619
================ ===============
CAPITAL SHARES OUTSTANDING 3,128,689 9,070,535
================ ===============
NET ASSET VALUE PER SHARE $ 11.63 $ 16.27
================ ===============
</TABLE>
(1) The identified cost for the TCW Convertible Securities Fund, TCW Galileo
Core Equities Fund, TCW Galileo Earnings Momentum Fund, TCW Galileo Mid-Cap
Growth Fund, TCW Galileo Small Cap Growth Fund and TCW Galileo Value
Opportunities Fund at April 30, 1998, was $31,683, $103,677, $44,109,
$65,412, $81,907 and $38,432, respectively.
See accompanying Notes to Financial Statements.
28
<PAGE>
TCW GALILEO FUNDS, INC.
(U.S. Equities)
Dollar Amounts in Thousands
(Except per Share Amounts)
April 30, 1998
<TABLE>
<CAPTION>
TCW GALILEO TCW GALILEO TCW GALILEO TCW GALILEO
EARNINGS MOMENTUM MID-CAP GROWTH SMALL CAP GROWTH VALUE OPPORTUNITIES
FUND FUND FUND FUND
- ----------------- -------------- ---------------- -----------------
<S> <C> <C> <C>
$ 59,917 $ 100,704 $ 137,519 $ 41,513
25 - 27 57
716 789 171 208
- 6 4 22
- 1 2 4
-------------- -------------- ------------- -------------
60,658 101,500 137,723 41,804
-------------- -------------- ------------- -------------
- - 11 -
425 496 440 207
106 308 172 59
-------------- -------------- ------------- -------------
531 804 623 266
-------------- -------------- ------------- -------------
$ 60,127 $ 100,696 $ 137,100 $ 41,538
============== ============== ============= =============
$ 34,828 $ 57,348 $ 69,620 $ 37,028
11,473 9,833 14,983 1,449
15,808 35,292 55,612 3,081
- - - (20)
(1,982) (1,777) (3,115) -
-------------- -------------- ------------- -------------
$ 60,127 $ 100,696 $ 137,100 $ 41,538
============== ============== ============= =============
4,252,993 8,592,232 6,651,929 3,778,325
============== ============== ============= =============
$ 14.14 $ 11.72 $ 20.61 $ 10.99
============== ============== ============= =============
</TABLE>
29
<PAGE>
STATEMENTS OF OPERATIONS (Unaudited)
- ------------------------------------
<TABLE>
<CAPTION>
TCW GALILEO TCW GALILEO
CONVERTIBLE SECURITIES CORE EQUITIES
FUND FUND
---------------------- -------------
<S> <C> <C>
INVESTMENT INCOME
Income:
Dividends $ 219 $ 603
Interest 486 27
---------------- -------------
Total 705 630
---------------- -------------
Expenses:
Management Fees 126 511
Accounting Service Fees 17 17
Custodian Fees 5 11
Transfer Agent Fees 9 19
Registration Fees 4 3
Directors' Fees and Expenses 4 4
Audit and Tax Fees 9 9
Amortization of Deferred Organization Costs 1 3
Other 1 7
---------------- -------------
Total Expenses 176 584
---------------- -------------
Net Investment Income (Loss) 529 46
---------------- -------------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS
Net Realized Gain on Investments During the Period 1,450 30,860
Change in Unrealized Appreciation (Depreciation)
on Investments During the Period 1,638 (6,787)
---------------- -------------
Net Realized and Unrealized Gain on Investments
During the Period 3,088 24,073
---------------- -------------
INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $ 3,617 $ 24,119
================ =============
</TABLE>
(1) For the period November 3, 1997 (commencement of operations) through April
30, 1998.
See accompanying Notes to Financial Statements.
30
<PAGE>
TCW GALILEO FUNDS, INC.
(U.S. Equities)
Dollar Amounts in Thousands
Six Months Ended April 30, 1998
<TABLE>
<CAPTION>
TCW GALILEO TCW GALILEO TCW GALILEO TCW GALILEO
EARNINGS MOMENTUM MID-CAP GROWTH SMALL CAP GROWTH VALUE OPPORTUNITIES
FUND FUND FUND FUND /(1)/
- ----------------- -------------- ---------------- -------------------
<S> <C> <C> <C>
$ 26 $ 69 $ 88 $ 181
13 6 47 39
-------------- -------------- -------------- ---------------
39 75 135 220
-------------- -------------- -------------- ---------------
384 554 686 143
17 17 17 17
11 17 18 9
15 19 19 6
4 3 - 4
4 4 4 4
9 9 9 10
1 1 1 1
6 13 3 5
-------------- -------------- -------------- ---------------
451 637 757 199
-------------- -------------- -------------- ---------------
(412) (562) (622) 21
-------------- -------------- -------------- ---------------
9,765 20,956 12,423 1,449
(4,569) 2,720 9,088 2,189
-------------- -------------- -------------- ---------------
5,196 23,676 21,511 3,638
-------------- -------------- -------------- ---------------
$ 4,784 $ 23,114 $ 20,889 $ 3,659
============== ============== ============== ===============
</TABLE>
31
<PAGE>
TCW GALILEO CONVERTIBLE SECURITIES FUND
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<TABLE>
<CAPTION>
JANUARY 2, 1997
SIX MONTHS ENDED (COMMENCEMENT OF
APRIL 30, 1998 OPERATIONS) THROUGH
(UNAUDITED) OCTOBER 31, 1997
----------------- -------------------
<S> <C> <C>
OPERATIONS
Net Investment Income $ 529 $ 939
Net Realized Gain on Investments 1,450 2,477
Change in Unrealized Appreciation on Investments 1,638 1,623
---------------- ---------------
Increase in Net Assets Resulting from Operations 3,617 5,039
---------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (710) (937)
Distributions from Net Realized Gains (2,114) -
---------------- ---------------
Total Distributions to Shareholders (2,824) (937)
---------------- ---------------
CAPITAL SHARE TRANSACTIONS
Shares Issued Upon Exchange of Limited Partnership
Interests (2,485,514 shares) _ 24,855
Proceeds from Shares Sold
(259,336 shares in 1998 and 1,575,745 shares in 1997) 2,991 16,632
Proceeds from Shares Issued Upon Reinvestment of Dividends
(227,766 shares in 1998 and 62,882 shares in 1997) 2,430 672
Cost of Shares Redeemed
(591,385 shares in 1998 and 891,169 shares in 1997) (6,711) (9,371)
---------------- ---------------
Increase (Decrease) in Net Assets Resulting from Capital
Share Transactions (1,290) 32,788
---------------- ---------------
Increase (Decrease) in Net Assets (497) 36,890
NET ASSETS
Beginning of Period 36,890 -
---------------- ---------------
End of Period $ 36,393 $ 36,890
================ ===============
</TABLE>
See accompanying Notes to Financial Statements.
32
<PAGE>
TCW GALILEO FUNDS, INC.
(U.S. Equities)
TCW GALILEO CORE EQUITIES 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 $ 46 $ 181
Net Realized Gain on Investments 30,860 58,507
Change in Unrealized (Depreciation) on Investments (6,787) (9,558)
--------------- ---------------
Increase in Net Assets Resulting from Operations 24,119 49,130
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income - (291)
Distributions from Net Realized Gains (37,055) (2,817)
--------------- ---------------
Total Distributions to Shareholders (37,055) (3,108)
--------------- ---------------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(2,515,835 shares in 1998 and 916,772 shares in 1997) 38,285 15,783
Proceeds from Shares Issued Upon Reinvestment of Dividends
(2,586,870 shares in 1998 and 178,643 shares in 1997) 35,958 2,971
Cost of Shares Redeemed
(4,123,488 shares in 1998 and 7,520,587 shares in 1997) (69,801) (139,965)
--------------- ---------------
Increase (Decrease) in Net Assets Resulting from Capital
Share Transactions 4,442 (121,211)
--------------- ---------------
(Decrease) in Net Assets (8,494) (75,189)
NET ASSETS
Beginning of Period 156,113 231,302
--------------- ---------------
End of Period $ 147,619 $ 156,113
=============== ===============
</TABLE>
See accompanying Notes to Financial Statements.
33
<PAGE>
TCW GALILEO EARNINGS MOMENTUM 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 (Loss) $ (412) $ (794)
Net Realized Gain on Investments 9,765 7,257
Change in Unrealized Appreciation (Depreciation)
on Investments (4,569) 8,786
---------------- ----------------
Increase in Net Assets Resulting from Operations 4,784 15,249
---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Realized Gains (6,157) (5,829)
---------------- ----------------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(3,812 shares in 1998 and 2,696,542 shares in 1997) 52 31,271
Proceeds from Shares Issued upon Reinvestment of Dividends
(506,820 shares in 1998 and 458,342 shares in 1997) 6,087 5,474
Cost of Shares Redeemed
(3,585,132 shares in 1998 and 1,821,359 shares in 1997) (46,306) 22,492
---------------- ----------------
Increase (Decrease) in Net Assets Resulting from
Capital Share Transactions (40,167) 14,253
---------------- ----------------
Increase (Decrease) in Net Assets (41,540) 23,673
NET ASSETS
Beginning of Period 101,667 77,994
---------------- ----------------
End of Period $ 60,127 $ 101,667
================ ================
</TABLE>
See accompanying Notes to Financial Statements.
34
<PAGE>
TCW GALILEO FUNDS, INC.
(U.S. Equities)
TCW GALILEO MID-CAP GROWTH 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 (Loss) $ (562) $ (944)
Net Realized Gain (Loss) on Investments 20,956 (8,474)
Change in Unrealized Appreciation on Investments 2,720 12,646
---------------- ----------------
Increase in Net Assets Resulting from Operations 23,114 3,228
---------------- ----------------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(573,629 shares in 1998 and 7,109,713 shares in 1997) 6,371 63,202
Cost of Shares Redeemed
(6,432,443 shares in 1998 and 2,719,048 shares in 1997) (64,639) (23,010)
---------------- ----------------
Increase (Decrease) in Net Assets Resulting from
Capital Share Transactions (58,268) 40,192
---------------- ----------------
Increase (Decrease) in Net Assets (35,154) 43,420
NET ASSETS
Beginning of Period 135,850 92,430
---------------- ----------------
End of Period $ 100,696 $ 135,850
================ ================
</TABLE>
See accompanying Notes to Financial Statements.
35
<PAGE>
TCW GALILEO SMALL CAP GROWTH 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 (Loss) $ (622) $ (1,151)
Net Realized Gain on Investments 12,423 10,965
Change in Unrealized Appreciation on Investments 9,088 2,818
---------------- ----------------
Increase in Net Assets Resulting from Operations 20,889 12,632
---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Realized Gains (8,673) (1,426)
---------------- ----------------
CAPITAL SHARE TRANSACTIONS
Proceeds from Shares Sold
(1,411,371 shares in 1998 and 2,161,818 shares in 1997) 26,619 35,977
Proceeds from Shares Issued upon Reinvestment of Dividends
(497,329 shares in 1998 and 80,731 shares in 1997) 8,400 1,386
Cost of Shares Redeemed
(2,980,989 shares in 1998 and 2,231,297 shares in 1997 (54,891) (36,257)
---------------- ----------------
Increase (Decrease)in Net Assets Resulting from
Capital Share Transactions (19,872) 1,106
---------------- ----------------
Increase (Decrease) in Net Assets (7,656) 12,312
NET ASSETS
Beginning of Period 144,576 132,444
---------------- ----------------
End of Period $ 137,100 $ 144,756
================ ================
</TABLE>
See accompanying Notes to Financial Statements.
36
<PAGE>
TCW GALILEO FUNDS, INC.
(U.S. Equities)
TCW GALILEO VALUE OPPORTUNITIES FUND
Dollar Amounts in Thousands
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<TABLE>
<CAPTION>
November 3, 1997
(Commencement of
Operations) through
April 30, 1998
(Unaudited)
-------------------
<S> <C>
OPERATIONS
Net Investment Income $ 21
Net Realized Gain on Investments 1,449
Change in Unrealized Appreciation on Investments 2,189
-------------------
Increase in Net Assets Resulting from Operations 3,659
-------------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income (41)
-------------------
CAPITAL SHARE TRANSACTIONS
Shares Issued Upon Exchange of Limited Partnership
Interests (2,356,794 shares) (Note 1) 23,568
Proceeds from Shares Sold (2,325,300 shares) 23,658
Proceeds from Shares Issued upon Reinvestment of Dividends
(3,727 shares) 37
Cost of Shares Redeemed (907,496 shares) (9,343)
-------------------
Increase in Net Assets Resulting from Capital
Share Transactions 37,920
-------------------
Increase in Net Assets 41,538
NET ASSETS
Beginning of Period _
-------------------
End of Period $ 41,538
===================
</TABLE>
See accompanying Notes to Financial Statements.
37
<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, TCW London
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 TCW Galileo Core Equity Fund) emphasizes capital appreciation and
preservation with focus on long-term results; (8) the TCW Galileo Earnings
Momentum Fund seeks capital appreciation through investment primarily in
publicly-traded equity securities of companies experiencing or expected to
experience accelerating earnings growth; (9) the TCW Galileo Mid-Cap Growth Fund
seeks long-term capital appreciation, primarily by investing in publicly-traded
equity securities of medium capitalization companies; (10) the TCW Galileo Small
Cap Growth Fund seeks long-term capital appreciation, primarily by investing in
publicly-traded equity securities of smaller capitalization companies; (11) the
TCW Galileo Asia Pacific Equity Fund seeks long-term capital appreciation,
primarily by investing in equity securities of companies in the Asia Pacific
region; (12) the TCW Galileo Emerging Markets Fund seeks long-term capital
appreciation by investing in equity securities of companies in emerging market
countries around the world; (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
38
<PAGE>
TCW GALILEO FUNDS, INC.
(U.S. Equities)
April 30, 1998
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.
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: Organizational costs of approximately $4,000,
$2,000, $10,000 and $5,000 for the TCW Galileo Convertible Securities Fund,
TCW Galileo Mid-Cap Growth Fund, TCW Galileo Small Cap Growth Fund and the
TCW Galileo Value Opportunities Fund, respectively, have been deferred and are
being amortized on a straight line basis over a five year period from the
commencement of operations. The deferred organization costs of $50,000 for the
TCW Galileo Core Equities Fund and the TCW Galileo Earnings Momentum Fund,
respectively, have been completely amortized as of April 30, 1998.
39
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
- -----------------------------------------------------
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 Convertible Securities
Fund, the TCW Galileo Mid-Cap Growth Fund, the TCW Galileo Small Cap Growth Fund
and TCW Galileo Value Opportunities Fund, and 2,000 shares each of the other two
Funds, collectively the "Initial Shares"). In the event the Adviser redeems any
of its Initial Shares from one or more of the Funds prior to the end of the
five-year period, the proceeds of the redemption payable in respect of such
shares will be reduced by any unamortized organization costs in the same ratio
as the number of Initial Shares being redeemed bears to the number of Initial
Shares outstanding at the time of the redemption.
EXPENSE ALLOCATION: Common expenses incurred by the Company are allocated among
the Funds based upon the ratio of net assets of each Fund to the combined net
assets of all the Funds. All other expenses are charged to each Fund as incurred
on a specific identification basis.
NET ASSET VALUE: The Net Asset Value of each Fund's shares is determined by
dividing the net assets of the Fund by the number of issued and outstanding
shares on each business day as of 1:00 P.M. Pacific Time.
DIVIDENDS AND DISTRIBUTIONS: The TCW Galileo Convertible Securities Fund
declares and pays, or reinvests dividends from net investment income quarterly.
The other equity funds 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.
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.
40
<PAGE>
TCW GALILEO FUNDS, INC.
(U.S. Equities)
April 30, 1998
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
Convertible Securities Core Equities Earnings Momentum
Fund Fund Fund
----------------------- -------------- -------------------
<S> <C> <C> <C>
Unrealized Appreciation $ 5,107,760 $ 45,361,242 $ 18,671,622
Unrealized (Depreciation) (234,716) (1,536,080) (2,863,602)
------------- -------------- -------------
Net Unrealized Appreciation $ 4,873,044 $ 43,825,162 $ 15,808,020
============= ============= =============
Cost of Investments for Federal
Income Tax Purposes $ 31,683,108 $ 103,676,940 $ 44,108,736
============= ============= =============
<CAPTION>
TCW Galileo TCW Galileo TCWGalileo
Mid-Cap Growth Small Cap Growth Value Opportunities
Fund Fund Fund
---------------- ---------------- --------------------
<S> <C> <C> <C>
Unrealized Appreciation $ 37,552,638 $ 58,856,651 $ 4,964,323
Unrealized (Depreciation) (2,230,886) (3,245,258) (1,883,865)
--------------- ---------------- -----------------
Net Unrealized Appreciation $ 35,291,752 $ 55,611,393 $ 3,080,458
=============== ================ =================
Cost of Investments for Federal
Income Tax Purposes $ 65,412,442 $ 81,907,400 $ 38,432,099
=============== ================ =================
</TABLE>
At April 30, 1998, the TCW Galileo Mid-Cap Growth Fund had net realized loss
carryforwards for federal income tax purposes expiring as follows:
<TABLE>
<CAPTION>
Expiring in
------------------------------
2004 2005
------------ -------------
<S> <C>
$ 2,649,000 $ 8,154,000
============ =============
</TABLE>
41
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
- -----------------------------------------------------
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 Convertible Securities Fund 0.75%
TCW Galileo Core Equities Fund 0.75%
TCW Galileo Earnings Momentum Fund 1.00%
TCW Galileo Mid-Cap Growth Fund 1.00%
TCW Galileo Small Cap Growth Fund 1.00%
TCW Galileo Value Opportunities Fund 0.80%
</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 TCW Galileo Convertible
Securities Fund and TCW Galileo Value Opportunities Fund are limited to 1.05%
and 1.36%, respectively, of the Funds' 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
Convertible Securities Core Equities Earnings Momentum
Fund Fund Fund
---------------------- -------------- -----------------
<S> <C> <C> <C>
Purchases at Cost $ 25,383,058 $ 59,138,375 $ 19,958,478
============= ============= =============
Sales Proceeds $ 28,011,430 $ 91,703,695 $ 62,917,727
============= ============= =============
<CAPTION>
TCW Galileo TCW Galileo TCW Galileo
Mid-Cap Growth Small Cap Growth Value Opportunities
Fund Fund Fund
----------------- ---------------- -------------------
<S> <C> <C> <C>
Purchases at Cost $ 24,412,382 $ 34,427,065 $ 25,811,743
============= ============= =============
Sales Proceeds $ 83,844,517 $ 57,526,834 $ 9,899,170
============= ============= =============
</TABLE>
There were no purchases or sales of U.S. Government Securities for the funds
for the six months ended April 30, 1998.
42
<PAGE>
TCW GALILEO FUNDS, INC.
(U.S. Equities)
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 CONVERTIBLE SECURITIES FUND:
<TABLE>
<CAPTION>
Number of
Shares or Date of
Principal Amount Investment Acquisition Cost
- ----------------- ------------------------------------------------------------------- ----------- ----------
<S> <C> <C> <C>
$ 190,000 Action Performance Companies, Inc.,(144A), 4.75%, due 04/01/05 03/19/98 $ 190,000
$ 250,000 Adaptec, Inc., (144A), 4.75%, due 02/01/04 01/28/97 250,000
$ 215,000 Affiliated Computer Services, Inc., (144A), 4%, due 03/15/05 03/17/98 215,000
$ 285,000 Arbor Software Corp.,(144A), 4.5%, due 03/15/05 03/11/98 292,000
$ 365,000 Assisted Living Concepts, Inc., (144A), 5.625%, due 05/01/03 04/07/98 365,000
$ 900,000 Athena Neurosciences, Inc., (144A), 4.75%, due 11/15/04 11/05/97 900,000
$ 845,000 Bell Atlantic Financial Services, (144A), 5.75%, due 04/01/03 02/12/98 847,875
$ 330,000 Centocor, Inc., (144A), 4.75%, due 02/15/05 02/13/98 330,000
3,300 Chancellor Media Corp., (144A), $3.00 Convertible Preferred 06/11/97 184,088
$ 710,000 Concentra Managed Care, Inc., (144A), 6%, due 12/15/01 04/08/97 710,500
$ 1,105,000 Costco Companies, Inc., (144A), 0%, due 08/19/17 08/14/97 552,058
$ 405,000 C U C International, Inc., (144A), 3%, due 02/15/02 02/05/97 414,169
4,400 Host Marriott Financial Trust, (144A), $3.375 Convertible Preferred 01/06/97 235,400
$ 330,000 Magna International, Inc., (144A), 4.875%, due 02/15/05 02/10/98 330,000
$ 375,000 Merrill Lynch & Company, Inc., Exchangeable Technology Basket,
(144A), 0%, due 02/02/05 02/02/98 375,000
$ 900,000 Network Associates, Inc., (144A), 0%, due 02/13/18 02/10/98 351,954
$ 575,000 Omnicare, Inc., (144A), 5%, due 12/01/07 12/04/97 575,000
$ 295,000 Personnel Group of America, Inc., (144A), 5.75%, due 07/01/04 06/17/97 310,225
$ 375,000 Premiere Technologies, Inc., (144A), 5.75%, due 07/01/04 06/25/97 378,850
$ 305,000 QuadraMed Corp., (144A), 5.25%, due 05/01/05 04/28/98 308,600
$ 320,000 Quintiles Transnational Corp., (144AI, Reg D), 4.25%, due 05/31/00 04/23/96 320,000
$ 530,000 Rite Aid Corp., (144A), 5.25%, due 09/15/02 04/23/96 530,000
$ 535,000 Safeguard Scientifics, Inc., (144A), 6%, due 02/01/06 01/07/97 540,256
$ 500,000 Sepracor, Inc., Euro, (144A), 7%, due 12/01/02 02/05/98 511,038
$ 295,000 SmarTalk Teleservices, Inc., (144A), 5.75%, due 09/15/04 09/12/97 295,000
</TABLE>
43
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
- -----------------------------------------------------
NOTE 6 - RESTRICTED SECURITIES (Continued)
TCW GALILEO CONVERTIBLE SECURITIES FUND (Continued):
<TABLE>
<CAPTION>
Number of
Shares or Date of
Principal Amount Investment Acquisition Cost
- ----------------- ------------------------------------------------------------------- ------------- ---------
<S> <C> <C> <C>
$ 20,000 Staples, Inc., (144A), 4.5%, due 10/01/00 07/07/97 $ 24,700
7,300 Suiza Capital Trust, (144A), $2.75 Convertible Preferred 03/19/98 365,125
$ 1,110,000 Sunbeam Corp., (144A), 0%, due 03/25/18 03/19/98 413,397
$ 195,000 Sunrise Assisted Living, Inc., (144A), 5.5%, due 06/15/02 06/03/97 199,988
$ 415,000 Swiss Life Finance, Ltd., Exchangeable Royal Dutch
Petroleum Co., (144A), 2%, due 05/20/05 04/08/98 415,638
$ 295,000 Tel-Save Holdings, Inc., (144A), 4.5%, due 09/15/02 09/03/97 295,000
$ 320,000 Tower Automotive, Inc., (144A), 5%, due 08/01/04 07/24/97 320,000
14,300 Union Pacific Capital Trust, (144A), $3.13 Convertible Preferred 03/27/98 719,500
</TABLE>
The total value of restricted securities is $14,562,382, which represents 40% of
net assets of the Fund at April 30, 1998.
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.
44
<PAGE>
TCW GALILEO FUNDS, INC.
(U.S. Equities)
TCW GALILEO CONVERTIBLE SECURITIES FUND
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
JANUARY 2, 1997
SIX MONTHS ENDED (COMMENCEMENT OF
APRIL 30, 1998 OPERATIONS) THROUGH
(UNAUDITED) OCTOBER 31, 1997
--------------- -------------------
<S> <C> <C>
Net Asset Value per Share, Beginning
of Period $ 11.41 $ 10.00
----------- ------------
Income (Loss) from Investment Operations:
Net Investment Income 0.11 0.31
Net Realized and Unrealized Gain
on Investments 1.10 1.43
----------- ------------
Total from Investment Operations 1.21 1.74
----------- ------------
Less Distributions:
Distributions from Net Investment Income (0.24) (0.33)
Distributions from Net Realized Gains (0.75) -
----------- ------------
Total Distributions (0.99) (0.33)
----------- ------------
Net Asset Value per Share, End of Period $ 11.63 $ 11.41
=========== ============
Total Return 11.54%/(2)/ 17.66%/(1)/
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $ 36,393 $ 36,890
Ratio of Expenses to Average Net Assets 1.04%/(3)/ 0.95%/(3)(4)/
Ratio of Net Investment Income to
Average Net Assets 3.14%/(3)/ 3.54%/(3)/
Portfolio Turnover Rate 74.93%/(2)/ 141.43%/(1)/
Average Commission Rate Paid by the Fund /(5)/ $ 0.06 $ 0.06
</TABLE>
(1) For the period January 2, 1997 (commencement of operations) through October
31, 1997 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 0.95% of Net Assets
through December 31, 1997. Had such action not been taken, total annualized
operating expenses as a percentage of average net assets would have been
1.51% for the period January 2, 1997 (commencement of operations) through
October 31, 1997.
(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.
45
<PAGE>
TCW GALILEO CORE EQUITIES FUND
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
Six Months Ten Months March 1, 1993
Ended Ended (Commencement of
April 30, 1998 Year Ended October 31, October 31, Operations) through
-------------------------------
(Unaudited) 1997 1996 1995 1994 December 31, 1993
----------- -------- --------- --------- -------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value per Share, Beginning
of Period $ 19.29 $ 15.93 $ 13.69 $ 11.57 $ 11.81 $ 10.00
-------- -------- -------- -------- -------- -------
Income (Loss) from Investment Operations:
Net Investment Income 0.01 0.01 0.11 0.06 0.04 0.03
Net Realized and Unrealized Gain (Loss)
on Investments 2.73 3.57 2.18 2.11 (0.28) 1.81
-------- -------- -------- -------- -------- -------
Total from Investment Operations 2.74 3.58 2.29 2.17 (0.24) 1.84
-------- -------- -------- -------- -------- -------
Less Distributions:
Distributions from Net Investment Income _ (0.02) (0.05) (0.05) _ (0.03)
Distributions from Net Realized Gains (5.76) (0.20) _ _ _ _
-------- -------- -------- -------- -------- -------
Total Distributions (5.76) (0.22) (0.05) (0.05) _ (0.03)
-------- -------- -------- -------- -------- -------
Net Asset Value per Share, End of Period $ 16.27 $ 19.29 $ 15.93 $ 13.69 $ 11.57 $ 11.81
======== ======== ======== ======== ======== =======
Total Return 19.28%/(3)/ 22.68% 16.79% 18.85% (2.03)%/(1)/ 18.41%/(2)/
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $147,619 $156,113 $231,302 $197,721 $136,122 $55,885
Ratio of Expenses to Average Net Assets 0.85%/(4)/ 0.83% 0.82% 0.85% 0.91%/(4)/ 1.00%/(4)//(5)/
Ratio of Net Investment Income to
Average Net Assets 0.03%/(4)/ 0.08% 0.18% 0.48% 0.44%/(4)/ 0.55%/(4)/
Portfolio Turnover Rate 42.68%/(3)/ 39.22% 39.58% 53.77% 23.53%/(1)/ 29.67%/(2)/
Average Commission Rate Paid by the Fund/(6)/ $ 0.07 $ 0.06 $ 0.06 N/A N/A N/A
</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 1.00% of net assets
through December 31, 1993. Had such action not been taken, total annualized
operating expenses as a percentage of average net assets would have been
1.09% for the period March 1, 1993 (commencement of operations) through
December 31, 1993.
(6) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share for security trades on
which commissions are charged. This amount may vary from period to period
and fund to fund depending on the mix of trades executed in various markets
where trading practices and commission rate structures may differ.
46
<PAGE>
TCW GALILEO FUNDS, INC.
(U.S. Equities)
TCW GALILEO EARNINGS MOMENTUM FUND
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
Six Months November 1, 1994
Ended (Commencement Of
April 30, 1998 Year Ended October 31, Operations) Through
---------------------------
(Unaudited) 1997 1996 October 31, 1995
------------- ----------- --------- ------------------
<S> <C> <C> <C> <C>
Net Asset Value per Share, Beginning
of Period $ 13.87 $ 13.01 $ 11.47 $ 10.00
----------- ----------- --------- -----------
Income (Loss) from Investment Operations:
Net Investment (Loss) (0.07) (0.12) (0.11) (0.03)
Net Realized and Unrealized Gain
on Investments 1.26 1.98 1.72 1.51
----------- ----------- --------- -----------
Total from Investment Operations 1.19 1.86 1.61 1.48
----------- ----------- --------- -----------
Less Distributions:
Distributions in Excess of Net
Investment Income - - - (0.01)
Distributions from Net Realized Gains (0.92) (1.00) (0.07) -
----------- ----------- --------- -----------
Total Distributions (0.92) (1.00) (0.07) (0.01)
----------- ----------- --------- -----------
Net Asset Value per Share, End of Period $ 14.14 $ 13.87 $ 13.01 $ 11.47
=========== =========== ========= ===========
Total Return 9.75%/(1)/ 15.53% 13.99% 14.76%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $ 60,127 $ 101,667 $ 77,994 $ 63,411
Ratio of Expenses to Average Net Assets 1.17%/(2)/ 1.17% 1.13% 1.14%/(3)/
Ratio of Net Investment (Loss) to
Average Net Assets (1.07)%/(2)/ (0.96)% (0.82)% (0.28)%
Portfolio Turnover Rate 25.73%/(1)/ 93.06% 99.03% 85.91%
Average Commission Rate Paid by the Fund/(4)/ $ 0.06 $ 0.06 $ 0.06 N/A
</TABLE>
(1) For the six months ended 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 1.14% of net assets
through December 31, 1995. Had such action not been taken, total annualized
operating expenses as a percentage of average net assets would have been
1.14% for the year ended October 31, 1996 and November 1, 1994 (commencement
of operations) through October 31, 1995.
(4) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share for security trades on
which commissions are charged. This amount may vary from period to period
and fund to fund depending on the mix of trades executed in various markets
where trading practices and commission rate structures may differ.
47
<PAGE>
TCW GALILEO MID-CAP GROWTH FUND
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
Six Months June 3, 1996
Ended Year Ended (Commencement Of
April 30, 1998 October 31, Operations) Through
(Unaudited) 1997 October 31, 1996
-------------- ----------- -------------------
<S> <C> <C> <C>
Net Asset Value per Share, Beginning
of Period $ 9.40 $ 9.19 $ 10.00
-------------- ----------- -------------
Income (Loss) from Investment Operations:
Net Investment Income (Loss) (0.05) (0.08) (0.03)
Net Realized and Unrealized Gain (Loss)
on Investments 2.37 0.29 (0.78)
-------------- ----------- -------------
Total from Investment Operations 2.32 0.21 (0.81)
-------------- ----------- -------------
Net Asset Value per Share, End of Period $ 11.72 $ 9.40 $ 9.19
============== =========== =============
Total Return 24.68%/(2)/ 2.28% (8.10)%/(1)/
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $ 100,696 $ 135,850 $ 92,430
Ratio of Expenses to Average Net Assets 1.15%/(3)/ 1.12% 1.20%/(3)/(4)/
Ratio of Net Investment Income (Loss) to
Average Net Assets 1.01%/(3)/ (0.86)% (0.80)%/(3)/
Portfolio Turnover Rate 21.77%/(2)/ 50.45% 19.19%/(1)/
Average Commission Rate Paid by the Fund/(5)/ $ 0.06 $ 0.06 $ 0.06
</TABLE>
(1) For the period June 3, 1996 (commencement of operations) through October 31,
1996 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 1.20% of net assets
through December 31, 1996. Had such action not been taken, total annualized
operating expenses as a percentage of average net assets would have been
1.27% for the period June 3, 1996 (commencement of operations) through
October 31, 1996.
(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.
48
<PAGE>
TCW GALILEO FUNDS, INC.
(U.S. Equities)
TCW GALILEO SMALL CAP GROWTH 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 $ 18.74 $ 17.17 $ 13.53 $ 9.39 $ 10.00
-------- -------- -------- -------- -----------
Income (Loss) from Investment Operations:
Net Investment (Loss) (0.08) (0.15) (0.13) (0.07) (0.04)
Net Realized and Unrealized Gain (Loss)
on Investments 3.05 1.91 4.08 4.72 (0.57)
-------- -------- -------- -------- -----------
Total from Investment Operations 2.97 1.76 3.95 4.65 (0.61)
-------- -------- -------- -------- -----------
Less Distributions:
Distributions from Net Investment Income _ _ (0.01) _ _
Distributions from Net Realized Gains (1.10) (0.19) (0.30) (0.51) _
-------- -------- -------- -------- -----------
Total Distributions (1.10) (0.19) (0.31) (0.51) _
-------- -------- -------- -------- -----------
Net Asset Value per Share, End of Period $ 20.61 $ 18.74 $ 17.17 $ 13.53 $ 9.39
========= ======== ======== =======- ===========
Total Return 17.13%/(2)/ 10.38% 29.73% 49.89% (6.10)%/(1)/
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $137,100 $144,756 $132,444 $ 66,056 $ 51,089
Ratio of Expenses to Average Net Assets 1.10%/(3)/ 1.14% 1.14% 1.21%/(4)/ 1.09%/(3)/(4)/
Ratio of Net Investment (Loss) to
Average Net Assets (0.91)%/(3)/ (0.89)% (0.76)% (0.61)% (0.59)%/(3)/
Portfolio Turnover Rate 25.18%/(2)/ 60.52% 45.43% 89.73% 88.63%/(1)/
Average Commission Rate Paid by the Fund/(5)/ $ 0.06 $ 0.06 $ 0.06 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 1.09% of net assets
through December 31, 1996. Had such action not been taken, total annualized
operating expenses as a percentage of average net assets would have been
1.24% for the period ended October 31, 1995 and 1.39% for the period March
1, 1994 (commencement of operations) through October 31, 1994.
(5) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share for security trades on
which commissions are charged. This amount may vary from period to period
and fund to fund depending on the mix of trades executed in various markets
where trading practices and commission rate structures may differ.
49
<PAGE>
TCW GALILEO VALUE OPPORTUNITIES FUND
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
November 3, 1997
(Commencement of
Operations) through
April 30, 1998
(Unaudited)
-------------------
<S> <C>
Net Asset Value per Share, Beginning $ 10.00
of Period ------------
Income (Loss) from Investment Operations:
Net Investment Income 0.01
Net Realized and Unrealized Gain
on Investments 0.99
of Period ------------
Total from Investment Operations 1.00
of Period ------------
Less Distributions:
Distributions from Net Investment Income (0.01)
of Period ------------
Net Asset Value per Share, End of Period $ 10.99
of Period ============
Total Return 10.03%/(1)/
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $ 41,538
Ratio of Expenses to Average Net Assets 1.11%/(2)/
Ratio of Net Investment (Loss) to
Average Net Assets (0.10)%/(2)/
Portfolio Turnover Rate 28.79%/(1)/
Average Commission Rate Paid by the/(4)/ $ 0.06
</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.
50
<PAGE>
TCW GALILEO FUNDS, INC.
(U.S. Equities)
SHAREHOLDER INFORMATION
- -----------------------
DIRECTORS AND OFFICERS INVESTMENT ADVISER
Marc I. Stern TCW Funds Management, Inc.
Director and Chairman of the Board 865 South Figueroa Street
Los Angeles, California 90017
Thomas E. Larkin, Jr. (213) 244-0000
Director and President
CUSTODIAN
John C. Argue BNY Western Trust Company
Director 700 South Flower Street
Suite 200
Norman Barker, Jr. Los Angeles, California 90017
Director
Richard W. Call
Director
TRANSFER AGENT
Alvin R. Albe, Jr. DST Systems, Inc.
Senior Vice President and Treasurer 811 Main Street
Kansas City, Missouri 64105
Michael E. Cahill
Senior Vice President,
General Counsel and Assistant Secretary DISTRIBUTOR
TCW Brokerage Services
865 South Figueroa Street
Ronald E. Robison Los Angeles, California 90017
Senior Vice President (213) 244-0000
Philip K. Holl
Secretary
INDEPENDENT AUDITORS
Marie M. Bender Deloitte & Touche LLP
Assistant Secretary 1000 Wilshire Boulevard
Los Angeles, California 90017
Hilary G.D. Lord
Assistant Secretary
Peter C. DiBona
Assistant Treasurer
51
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK.
52
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 13
<NAME> TCW GALILEO CONVERTIBLE SECURITIES 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> 31,683
<INVESTMENTS-AT-VALUE> 36,556
<RECEIVABLES> 911
<ASSETS-OTHER> 2
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 37,469
<PAYABLE-FOR-SECURITIES> 998
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 78
<TOTAL-LIABILITIES> 1076
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 29,886
<SHARES-COMMON-STOCK> 3,129
<SHARES-COMMON-PRIOR> 3,233
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 179
<ACCUMULATED-NET-GAINS> 1,813
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,873
<NET-ASSETS> 36,393
<DIVIDEND-INCOME> 219
<INTEREST-INCOME> 486
<OTHER-INCOME> 0
<EXPENSES-NET> 176
<NET-INVESTMENT-INCOME> 529
<REALIZED-GAINS-CURRENT> 1,450
<APPREC-INCREASE-CURRENT> 1,638
<NET-CHANGE-FROM-OPS> 3,617
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 710
<DISTRIBUTIONS-OF-GAINS> 2,114
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 259
<NUMBER-OF-SHARES-REDEEMED> 591
<SHARES-REINVESTED> 228
<NET-CHANGE-IN-ASSETS> (497)
<ACCUMULATED-NII-PRIOR> 2
<ACCUMULATED-GAINS-PRIOR> 2,477
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 126
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 176
<AVERAGE-NET-ASSETS> 34,545
<PER-SHARE-NAV-BEGIN> 11.41
<PER-SHARE-NII> 0.11
<PER-SHARE-GAIN-APPREC> 1.10
<PER-SHARE-DIVIDEND> 0.24
<PER-SHARE-DISTRIBUTIONS> 0.75
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.63
<EXPENSE-RATIO> 1.04
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> TCW GALILEO CORE 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> 103,677
<INVESTMENTS-AT-VALUE> 147,502
<RECEIVABLES> 429
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 147,931
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 312
<TOTAL-LIABILITIES> 312
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 51,274
<SHARES-COMMON-STOCK> 9,071
<SHARES-COMMON-PRIOR> 8,091
<ACCUMULATED-NII-CURRENT> 211
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 52,309
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 43,825
<NET-ASSETS> 147,619
<DIVIDEND-INCOME> 603
<INTEREST-INCOME> 27
<OTHER-INCOME> 0
<EXPENSES-NET> 584
<NET-INVESTMENT-INCOME> 46
<REALIZED-GAINS-CURRENT> 30,860
<APPREC-INCREASE-CURRENT> (6,787)
<NET-CHANGE-FROM-OPS> 24,119
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 37,055
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,516
<NUMBER-OF-SHARES-REDEEMED> 4,123
<SHARES-REINVESTED> 2,587
<NET-CHANGE-IN-ASSETS> (8,494)
<ACCUMULATED-NII-PRIOR> 165
<ACCUMULATED-GAINS-PRIOR> 58,504
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 511
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 584
<AVERAGE-NET-ASSETS> 140,033
<PER-SHARE-NAV-BEGIN> 19.29
<PER-SHARE-NII> .01
<PER-SHARE-GAIN-APPREC> 2.73
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 5.76
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 16.27
<EXPENSE-RATIO> .85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 11
<NAME> TCW GALILEO EARNINGS MOMENTUM 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> 44,109
<INVESTMENTS-AT-VALUE> 59,917
<RECEIVABLES> 741
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 60,658
<PAYABLE-FOR-SECURITIES> 425
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 106
<TOTAL-LIABILITIES> 531
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 34,828
<SHARES-COMMON-STOCK> 4,253
<SHARES-COMMON-PRIOR> 7,327
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 1,982
<ACCUMULATED-NET-GAINS> 11,473
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 15,808
<NET-ASSETS> 60,127
<DIVIDEND-INCOME> 26
<INTEREST-INCOME> 13
<OTHER-INCOME> 0
<EXPENSES-NET> 451
<NET-INVESTMENT-INCOME> (412)
<REALIZED-GAINS-CURRENT> 9,765
<APPREC-INCREASE-CURRENT> (4,569)
<NET-CHANGE-FROM-OPS> 4,784
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 6,157
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4
<NUMBER-OF-SHARES-REDEEMED> 3,585
<SHARES-REINVESTED> 507
<NET-CHANGE-IN-ASSETS> 41,540
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 7,865
<OVERDISTRIB-NII-PRIOR> 1,570
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 384
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 451
<AVERAGE-NET-ASSETS> 78,579
<PER-SHARE-NAV-BEGIN> 13.87
<PER-SHARE-NII> (0.07)
<PER-SHARE-GAIN-APPREC> 1.26
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0.92
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.14
<EXPENSE-RATIO> 1.17
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 12
<NAME> TCW GALILEO MID-CAP GROWTH 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> 65,412
<INVESTMENTS-AT-VALUE> 100,704
<RECEIVABLES> 795
<ASSETS-OTHER> 1
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 101,500
<PAYABLE-FOR-SECURITIES> 496
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 308
<TOTAL-LIABILITIES> 804
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 57,348
<SHARES-COMMON-STOCK> 8,592
<SHARES-COMMON-PRIOR> 14,451
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 1,777
<ACCUMULATED-NET-GAINS> 9,833
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 35,292
<NET-ASSETS> 100,696
<DIVIDEND-INCOME> 69
<INTEREST-INCOME> 6
<OTHER-INCOME> 0
<EXPENSES-NET> 637
<NET-INVESTMENT-INCOME> (562)
<REALIZED-GAINS-CURRENT> 20,956
<APPREC-INCREASE-CURRENT> 2,720
<NET-CHANGE-FROM-OPS> 23,114
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 573
<NUMBER-OF-SHARES-REDEEMED> 6,432
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (35,154)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 1,215
<OVERDIST-NET-GAINS-PRIOR> 11,123
<GROSS-ADVISORY-FEES> 554
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 637
<AVERAGE-NET-ASSETS> 112,612
<PER-SHARE-NAV-BEGIN> 9.40
<PER-SHARE-NII> (.05)
<PER-SHARE-GAIN-APPREC> 2.37
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.72
<EXPENSE-RATIO> 1.15
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 7
<NAME> TCW GALILEO SMALL CAP GROWTH 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> 81,907
<INVESTMENTS-AT-VALUE> 137,519
<RECEIVABLES> 202
<ASSETS-OTHER> 2
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 137,723
<PAYABLE-FOR-SECURITIES> 440
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 183
<TOTAL-LIABILITIES> 623
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 69,620
<SHARES-COMMON-STOCK> 6,652
<SHARES-COMMON-PRIOR> 7,724
<ACCUMULATED-NII-CURRENT> (3,115)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 14,983
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 55,612
<NET-ASSETS> 137,100
<DIVIDEND-INCOME> 88
<INTEREST-INCOME> 47
<OTHER-INCOME> 0
<EXPENSES-NET> 757
<NET-INVESTMENT-INCOME> (622)
<REALIZED-GAINS-CURRENT> 12,423
<APPREC-INCREASE-CURRENT> 9,088
<NET-CHANGE-FROM-OPS> 20,889
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 8,673
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,412
<NUMBER-OF-SHARES-REDEEMED> 2,981
<SHARES-REINVESTED> 497
<NET-CHANGE-IN-ASSETS> (7,656)
<ACCUMULATED-NII-PRIOR> (2,493)
<ACCUMULATED-GAINS-PRIOR> 11,233
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 686
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 757
<AVERAGE-NET-ASSETS> 139,085
<PER-SHARE-NAV-BEGIN> 18.74
<PER-SHARE-NII> (.08)
<PER-SHARE-GAIN-APPREC> 3.05
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 1.10
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 20.61
<EXPENSE-RATIO> 1.10
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 17
<NAME> TCW GALILEO VALUE OPPORTUNITIES 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> 38,432
<INVESTMENTS-AT-VALUE> 41,513
<RECEIVABLES> 287
<ASSETS-OTHER> 4
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 41,804
<PAYABLE-FOR-SECURITIES> 207
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 59
<TOTAL-LIABILITIES> 266
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 37,028
<SHARES-COMMON-STOCK> 3,778
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 20
<ACCUMULATED-NET-GAINS> 1,449
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,081
<NET-ASSETS> 41,538
<DIVIDEND-INCOME> 181
<INTEREST-INCOME> 39
<OTHER-INCOME> 0
<EXPENSES-NET> 199
<NET-INVESTMENT-INCOME> 21
<REALIZED-GAINS-CURRENT> 1,449
<APPREC-INCREASE-CURRENT> 2,189
<NET-CHANGE-FROM-OPS> 3,659
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 41
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,681
<NUMBER-OF-SHARES-REDEEMED> 907
<SHARES-REINVESTED> 4
<NET-CHANGE-IN-ASSETS> 41,538
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 143
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 199
<AVERAGE-NET-ASSETS> 35,938
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .01
<PER-SHARE-GAIN-APPREC> .99
<PER-SHARE-DIVIDEND> .01
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.99
<EXPENSE-RATIO> 1.11
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
|
|