<PAGE>
TCW Galileo Funds, Inc.
- --------------------------------------------------------------------------------
U.S. Equities
Table of Contents April 30, 1999
<TABLE>
<S> <C>
Letter To Shareholders...................................................... 1
Performance Summary......................................................... 2
Schedules of Investments:
TCW Galileo Aggressive Growth Equities Fund............................... 3
TCW Galileo Convertible Securities Fund................................... 6
TCW Galileo Earnings Momentum Fund........................................ 11
TCW Galileo Large Cap Growth Fund......................................... 14
TCW Galileo Large Cap Value Fund.......................................... 17
TCW Galileo Select Equities Fund.......................................... 21
TCW Galileo Small Cap Growth Fund......................................... 23
TCW Galileo Value Opportunities Fund...................................... 27
Statements of Assets and Liabilities........................................ 30
Statements of Operations.................................................... 32
Statements of Changes in Net Assets......................................... 34
Notes to Financial Statements............................................... 38
Financial Highlights........................................................ 49
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
To Our Shareholders
We are pleased to submit the April 30, 1999 Semi-Annual Reports for the TCW
Galileo Funds. In our new format, we have separated our reports into three cat-
egories; 1) U.S. Equities Funds, 2) U.S. Fixed Income Funds, and 3) Interna-
tional Funds to provide more focused information to our shareholders.
TCW is committed to providing you with superior professional investment manage-
ment and distinctive personal service through the TCW Galileo Funds. On March
1, 1999, we created an additional class of shares (N class) on nine of our Gal-
ileo Funds.
Now individuals can purchase our Select Equities Fund, Aggressive Growth
Equities Fund, Large Cap Growth Fund, Large Cap Value Fund, Small Cap Growth
Fund, European Equities Fund, Core Fixed Income Fund, High Yield Bond Fund or
Total Return Mortgage-Backed Securities Fund with a low initial investment of
$2,000. The Galileo Mutual Funds continue to provide our clients with targeted
investment strategies featuring daily liquidity, competitive management fees
and no front end loads, or deferred sales charges.
Please call our Shareholder Services 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 7, 1999
1
<PAGE>
TCW Galileo Funds, Inc.
- --------------------------------------------------------------------------------
U.S. Equities
Performance Summary (Unaudited) April 30, 1999
<TABLE>
<CAPTION>
Total Return -- Annualized
As of April 30, 1999
-------------------------------------------
Latest 12-Months Latest Since Inception
NAV Ended April 30, 1999 5-Year Inception Date
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TCW Galileo Aggressive
Growth Equities Fund --
Institutional Class $20.10 93.39% N/A 41.29% (/1/) 11/01/94 (/2/)
TCW Galileo Aggressive
Growth Equities Fund --
Advisory Class $20.09 N/A N/A 25.02% (/3/) 03/01/99
TCW Galileo Convertible
Securities Fund $11.79 9.56% 14.55% (/1/) 13.75% (/1/) 01/01/89 (/2/)
TCW Galileo Earnings
Momentum Fund $11.45 (14.75)% 7.52% (/1/) 9.49% (/1/) 05/01/93 (/2/)
TCW Galileo Large Cap
Growth
Fund -- Institutional
Class $14.78 50.67% N/A 42.57% (/1/) 06/19/97 (/2/)
TCW Galileo Large Cap
Growth
Fund -- Advisory Class $14.78 N/A N/A 7.88% (/3/) 03/01/99
TCW Galileo Large Cap
Value
Fund -- Institutional
Class $12.53 22.62% N/A 25.39% (/1/) 12/01/97 (/2/)
TCW Galileo Large Cap
Value
Fund -- Advisory Class $12.52 N/A N/A 13.10% (/3/) 03/01/99
TCW Galileo Select
Equities
Fund -- Institutional
Class $18.88 34.63% 22.35% 20.15% (/1/) 07/01/91 (/2/)
TCW Galileo Select
Equities
Fund -- Advisory Class $18.88 7.15% (/3/) N/A N/A 03/01/99
TCW Galileo Small Cap
Growth
Fund -- Institutional
Class $23.05 13.88% 24.47% 19.40% (/1/) 12/01/89 (/2/)
TCW Galileo Small Cap
Growth
Fund -- Advisory Class $23.03 N/A N/A 11.69% (/3/) 03/01/99
TCW Galileo Value
Opportunities Fund $10.88 (1.00)% N/A 13.82% (/1/) 11/01/96 (/2/)
</TABLE>
(1) Performance data includes the performance of the predecessor limited part-
nership 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 partnership had been registered under the 1940
Act, the limited partnership's performance may have been lower.
(2) Inception date of predecessor limited partnership.
(3) For the period March 1, 1999 (Commencement of offering of Advisory Class
shares) through April 30, 1999 and not indicative of a full year's operat-
ing results.
2
<PAGE>
TCW Galileo Aggressive Growth Equities Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares Common Stock Value
- --------- ------------ -----------
<S> <C> <C>
Banking & Financial Services (8.4% of Net Assets)
94,400 E*Trade Group, Inc. $10,903,199*
42,300 T. Rowe Price Associates 1,594,181
6,700 Trammell Crow Co. 120,600*
-----------
Total Banking & Financial Services 12,617,980
-----------
Commercial Services (6.0%)
97,000 Outdoor Systems, Inc. 2,443,188*
29,575 Paychex, Inc. 1,510,173
50,150 Robert Half International, Inc. 1,197,331*
107,600 Romac International, Inc. 1,210,500*
94,000 Whittman-Hart, Inc. 2,655,500*
-----------
Total Commercial Services 9,016,692
-----------
Computer Services (16.4%)
43,300 At Home Corp. 6,232,493*
73,200 Fore Systems, Inc. 2,470,500*
900 iVillage, Inc. 71,100*
37,500 New Era of Networks, Inc. 1,408,594*
33,900 VeriSign, Inc. 3,898,500*
20,600 Vignette Corp. 1,957,000*
49,400 Yahoo!, Inc. 8,629,562*
-----------
Total Computer Services 24,667,749
-----------
Computer Software (4.0%)
1,700 GeoCities 198,050*
35,700 Rational Software Corp. 1,057,613*
126,200 Siebel Systems, Inc. 4,850,813*
-----------
Total Computer Software 6,106,476
-----------
Electronics (9.9%)
35,700 Altera Corp. 2,579,325*
89,900 Global Crossing Ltd. 4,854,600*
63,800 Maxim Intergrated Products, Inc. 3,572,800*
84,700 XILINX, Inc. 3,864,438*
-----------
Total Electronics 14,871,163
-----------
Energy & Oil Services (1.7%)
150,100 Precision Drilling Corp. 2,589,225*
-----------
Foods, Hotels & Restaurants (1.4%)
93,900 Mirage Resorts, Inc. 2,106,881*
-----------
</TABLE>
3
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Aggressive Growth Equities Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares Value
---------- ------------
<S> <C> <C>
Healthcare (1.0%)
42,825 Health Management Associates, Inc., Class A $ 669,141*
88,900 Safeskin Corp. 866,775*
------------
Total Healthcare 1,535,916
------------
Insurance (1.4%)
31,900 Hartford Life, Inc. 1,668,769
18,200 Mony Group, Inc. 482,300
------------
Total Insurance 2,151,069
------------
Media -- Broadcasting & Publishing (11.3%)
66,600 Cablevision Systems Corp. 5,153,175*
57,600 Clear Channel Communications, Inc. 4,003,200*
29,000 Playboy Enterprises, Inc. 933,438*
45,100 TCA Cable TV, Inc. 2,246,544
48,300 Univision Communications, Inc. 2,795,363*
55,600 Westwood One, Inc. 1,904,300*
------------
Total Media -- Broadcasting & Publishing 17,036,020
------------
Pharmaceuticals (3.4%)
16,600 Andrx Corp. 1,307,250*
25,100 Biogen, Inc. 2,386,069*
16,600 Sepracor, Inc. 1,402,700*
------------
Total Pharmaceuticals 5,096,019
------------
Real Estate (0.2%)
18,000 CB Richard Ellis Services, Inc. 362,250*
------------
Retail (23.2%)
69,900 Amazon.com, Inc. 12,027,168*
82,500 Bed, Bath & Beyond, Inc. 2,944,219*
111,300 Best Buy Company, Inc. 5,314,575*
42,400 Ebay, Inc. 8,824,499*
173,900 Petsmart, Inc. 1,619,444*
17,500 Priceline.com, Inc. 2,841,563*
42,400 Talbots, Inc. 1,335,600
1,700 Ticketmaster Online CitySearch, Inc. 53,763*
------------
Total Retail 34,960,831
------------
Telecommunications (8.4%)
84,000 American Tower Corp. 1,779,750*
43,300 Broadcast.com, Inc. 5,553,224*
17,100 EchoStar Communications Corp. 1,715,344*
64,900 MetroNet Communications Corp. (Canada) 3,601,950*
------------
Total Telecommunications 12,650,268
------------
Total Common Stock (Cost: $62,558,286) (96.7%) 145,768,539
------------
</TABLE>
4
See accompanying notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued) April 30, 1999
<TABLE>
<CAPTION>
Principal
Amount Short-term Investments Value
---------- ---------------------- ------------
<S> <C> <C>
$8,000,000 Bank of Montreal, 4.86%, due 05/17/99 $ 8,000,000**
8,000,000 Bank of Nova Scotia, 4.938%, due 06/07/99 8,000,000**
1,647,328 BankBoston Corp., 5.068%, due 10/29/99 1,647,328**
7,500,000 Frank Russell Money Market Fund 7,500,000**
4,461,926 Merrimac Cash Fund -- Premium Class 4,461,926**
4,000,000 Royal Bank of Scotland, 4.87%, due 07/26/99 4,000,000**
8,000,000 Toronto Dominion, 4.875%, due 06/15/99 8,000,000**
------------
Total Short-term Investments (Cost: $41,609,254) (27.6%) 41,609,254
------------
Total Investments (Cost: $104,167,540) (124.3%) 187,377,793
Liabilities in Excess of Other Assets ( - 24.3)% (36,623,544)
------------
Net Assets (100.0%) $150,754,249
============
</TABLE>
Notes to the Schedule of Investments:
* Non-income producing.
** Represents investments of security lending collateral (Note 2).
5
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Convertible Securities Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) April 30, 1999
<TABLE>
<CAPTION>
Principal
Amount Fixed Income Securities Value
---------- ----------------------- -----------
<S> <C> <C>
Aerospace/Defense (0.9% of Net Assets)
$ 420,000 Hexcel Corp., 7%, due 08/01/03 $ 366,450
-----------
Automotive (2.1%)
230,000 Magna International, Inc., (Canada),
4.875%, due 02/15/05 235,175
150,000 Magna International, Inc., (Canada), (144A),
4.875%, due 02/15/05 153,375*
285,000 Tower Automotive, Inc., 5%, due 08/01/04 302,813
180,000 Tower Automotive, Inc., (144A), 5%, due 08/01/04 191,250*
-----------
Total Automotive 882,613
-----------
Banking & Financial Services (10.1%)
2,505,000 Elan Corp. PLC, (Ireland), (144A), 0%, due 12/14/18 1,227,449*
1,310,000 Merrill Lynch & Company, Inc., 0.25%, due 05/07/06 1,300,205
42,300 Merrill Lynch & Company, Inc., (STRIDES),
5.75%, due 06/01/00 470,587
375,000 Morgan Stanley Dean Witter & Co., 0%, due 09/30/00 368,906
48,695 Morgan Stanley Dean Witter & Co., 6%, due 03/15/01 423,038
460,000 UBS AG Stamford, Exchangable Nikkei 225 Index,
0%, due 12/11/03 477,824
-----------
Total Banking & Financial Services 4,268,009
-----------
Commercial Services (3.8%)
420,000 Interim Services, Inc., 4.5%, due 06/01/05 342,825
905,000 Metamor Worldwide, Inc., 2.94%, due 08/15/04 665,740
570,000 Quintiles Transnational Corp., 4.25%, due 05/31/00 627,712
-----------
Total Commercial Services 1,636,277
-----------
Computer Services (1.8%)
200,000 Comverse Technology, Inc., 4.5%, due 07/01/05 329,250
255,000 Comverse Technology, Inc., (144A), 4.5%, due 07/01/05 419,794*
-----------
Total Computer Services 749,044
-----------
Computer Software (4.0%)
1,985,000 Citrix Systems, Inc., (144A), 0%, due 03/22/19 759,262*
375,000 Hyperion Solutions Corp., 4.5%, due 03/15/05 255,000
1,045,000 Network Associates, Inc., 0%, due 02/13/18 301,744
495,000 Network Associates, Inc., (144A), 0%, due 02/13/18 142,931*
230,000 QuadraMed Corp., 5.25%, due 05/01/05 142,092
190,000 QuadraMed Corp., (144A), 5.25%, due 05/01/05 117,380*
-----------
Total Computer Software 1,718,409
-----------
Electronics (8.7%)
360,000 Adaptec, Inc., 4.75%, due 02/01/04 305,550
140,000 Adaptec, Inc., (144A), 4.75%, due 02/01/04 118,825*
</TABLE>
6
See accompanying notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued) April 30, 1999
<TABLE>
<CAPTION>
Principal
Amount Value
---------- -----------
<S> <C> <C>
Electronics (Continued)
$ 420,000 LSI Logic Corp., (144A), 4.25%, due 03/15/04 $ 542,062*
225,000 Micron Technology, Inc., 7%, due 07/01/04 223,031
665,000 Sanmina Corp., 4.25%, due 05/01/04 694,924
2,635,000 Solectron Corp., (144A), 0%, due 01/27/19 1,294,443*
490,000 STMicroelectronics N.V., 0%, due 06/10/08 499,799
-----------
Total Electronics 3,678,634
-----------
Energy & Oil Services (2.5%)
495,000 Diamond Offshore Drilling, Inc., 3.75%, due 02/15/07 533,362
485,000 PennzEnergy Co., 4.9%, due 08/15/08 510,462
-----------
Total Energy & Oil Services 1,043,824
-----------
Entertainment & Leisure (1.1%)
305,000 Speedway Motorsports, Inc., 5.75%, due 09/30/03 458,643
-----------
Healthcare (8.7%)
810,000 Alternative Living Services, Inc., 5.25%, due 12/15/02 769,499
190,000 Assisted Living Concepts, Inc., 5.625%, due 05/01/03 102,600
230,000 Assisted Living Concepts, Inc., (144A),
5.625%, due 05/01/03 124,200*
415,000 Assisted Living Concepts, Inc., 6%, due 11/01/02 213,725
395,000 Concentra Managed Care, Inc.,
4.5%, due 03/15/03 355,500
390,000 Concentra Managed Care, Inc., (144A),
4.5%, due 03/15/03 351,000*
695,000 Omnicare, Inc., 5%, due 12/01/07 628,974
315,000 Omnicare, Inc., (144A), 5%, due 12/01/07 285,075*
280,000 Sunrise Assisted Living, Inc., 5.5%, due 06/15/02 332,150
640,000 Total Renal Care Holdings, Inc., (144A),
7%, due 05/15/09 518,399*
-----------
Total Healthcare 3,681,122
-----------
Insurance (5.6%)
405,000 American International Group, Inc.,
2.25%, due 07/30/04 563,200
825,000 Berkshire Hathaway, Inc., 1%, due 12/03/01 1,835,063
-----------
Total Insurance 2,398,263
-----------
Media -- Broadcasting & Publishing (6.9%)
1,645,000 Clear Channel Communications,
2.625%, due 04/01/03 2,092,752
1,215,000 News America Holdings, Inc., 0%, due 03/11/13 854,302
-----------
Total Media -- Broadcasting & Publishing 2,947,054
-----------
Office Equipment & Supplies (0.9%)
305,000 Xerox Credit Corp., 2.875%, due 07/01/02 371,719
-----------
</TABLE>
7
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Convertible Securities Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued) April 30, 1999
<TABLE>
<CAPTION>
Principal
Amount Value
---------- -----------
<S> <C> <C>
Pharmaceuticals (6.1%)
$ 80,000 ALZA Corp., 0%, due 07/14/14 $ 39,300
45,000 ALZA Corp., 5%, due 05/01/06 49,050
60,000 Athena Neurosciences, Inc. Exchangable Elan Corp. PLC,
(Ireland), 4.75%, due 11/15/04 62,250
420,000 Athena Neurosciences, Inc., Exchangable Elan Corp. PLC,
(Ireland), (144A), 4.75%, due 11/15/04 435,749*
315,000 Centocor, Inc., 4.75%, due 02/15/05 338,231
60,000 Centocor, Inc., (144A), 4.75%, due 02/15/05 64,425*
1,585,000 Sepracor, Inc., (144A), 7%, due 12/15/05 1,583,018*
-----------
Total Pharmaceuticals 2,572,023
-----------
Pollution Control (2.4%)
760,000 Waste Management, Inc., 4%, due 02/01/02 1,018,399
-----------
Real Estate (0.7%)
415,000 Security Capital Group, Inc., (144A), 2.5%, due 05/22/03 309,175*
-----------
Retail (4.8%)
105,000 Action Performance Companies, Inc., 4.75%, due 04/01/05 100,210
110,000 Action Performance Companies, Inc., (144A),
4.75%, due 04/01/05 104,982*
310,000 Amazon.com, Inc., 4.75%, due 02/01/09 384,788
605,000 Costco Companies, Inc., 0%, due 08/19/17 578,530
200,000 Costco Companies, Inc., (144A), 0%, due 08/19/17 191,250*
380,000 Rite Aid Corp., 5.25%, due 09/15/02 380,238
290,000 Rite Aid Corp., (144A), 5.25%, due 09/15/02 290,181*
-----------
Total Retail 2,030,179
-----------
Telecommunications (4.5%)
525,000 Bell Atlantic Financial Services, Exchangable Cable and
Wireless Co., (144A), 4.25%, due 09/15/05 578,974*
650,000 Level One Communications, Inc., 4%, due 09/01/04 1,326,545
-----------
Total Telecommunications 1,905,519
-----------
Total Fixed Income Securities (Cost: $30,467,080) (75.6%) 32,035,356
-----------
<CAPTION>
Number of
Shares Common Stock (Cost: $481,037) (1.5%)
---------- ------------------------------------
<S> <C> <C>
Media -- Broadcasting & Publishing (1.5%)
10,041 AT&T Corp. -- Liberty Media Group 641,368**
-----------
<CAPTION>
Convertible Preferred Stock
---------------------------
<S> <C> <C>
Aerospace/Defense (1.6%)
12,100 Loral Space & Communications, Ltd., $3.00 667,012
-----------
</TABLE>
8
See accompanying notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares Value
---------- -----------
<S> <C> <C>
Banking & Financial Services (6.2%)
14,300 CNB Capital Trust, $1.50 $ 361,075
3,200 Morgan Stanley Dean Witter & Co., $2.35 357,002
20,025 Morgan Stanley Dean Witter & Co.,
(Reset PERQS), $5.95 893,615
14,000 National Australia Bank, $1.97 476,874
15,000 Westpac Banking Corp., Ltd., (STRYPES), $3.125 520,312
-----------
Total Banking & Financial Services 2,608,878
-----------
Commercial Services (3.6%)
4,000 Cendant Corp., $0.65 104,000
26,900 Cendant Corp., $3.75 852,393
1,400 United Rentals, Inc., $3.25 63,000
11,400 United Rentals, Inc., (144A), $3.25 500,174*
-----------
Total Commercial Services 1,519,567
-----------
Energy & Oil Services (0.4%)
3,100 Occidental Petroleum Corp., $3.00 175,150
-----------
Foods, Hotels & Restaurants (1.0%)
9,400 Host Marriott Financial Trust, $3.375 423,207
-----------
Healthcare (0.9%)
7,400 Laboratory Corp. of America, $4.25 377,400
-----------
Media -- Broadcasting & Publishing (2.5%)
5,600 MediaOne Group, Inc., (PIES), $3.63 448,699
18,200 Reader's Digest Association, Inc., $1.9336 600,599
-----------
Total Media -- Broadcasting & Publishing 1,049,298
-----------
Retail (2.4%)
13,000 Dollar General Corp., $3.35 532,999
8,700 K-Mart Financing, $3.875 488,830
-----------
Total Retail 1,021,829
-----------
Telecommunications (1.2%)
2,600 Adelphia Communications Corp., $11.00 531,699
-----------
Transportation (1.6%)
6,700 Union Pacific Capital Trust, $3.125 355,938
6,100 Union Pacific Capital Trust, (144A), $3.125 328,375*
-----------
Total Transportation 684,313
-----------
Utilities (1.0%)
3,500 Houston Industries, Inc., $3.29 413,000
-----------
Total Convertible Preferred Stock (Cost: $8,257,429)
(22.4%) 9,471,353
-----------
</TABLE>
9
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Convertible Securities Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued) April 30, 1999
<TABLE>
<CAPTION>
Principal Short-term Investment (Cost: $1,167,747)
Amount (2.8%) Value
---------- ---------------------------------------- -----------
<S> <C> <C>
$1,167,747 BankBoston Corp., 5.068%, due 10/29/99 $ 1,167,747***
-----------
Total Investments (Cost: $40,373,293) (102.3%) 43,315,824
Liabilities in Excess of Other Assets (--2.3%) (969,736)
-----------
Net Assets (100.0%) $42,346,088
===========
</TABLE>
Notes to the Schedule of Investments:
* Restricted Security (Note 8).
** Non-income producing.
*** Represents investments of security lending collateral (Note 2).
10
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Earnings Momentum Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares Common Stock Value
- --------- ------------ -----------
<S> <C> <C>
Advertising (1.6% of Net Assets)
11,400 Getty Images, Inc. $ 296,400*
12,350 Ha-Lo Industries, Inc. 145,113*
-----------
Total Advertising 441,513
-----------
Banking & Financial Services (6.5%)
17,100 Profit Recovery Group International, Inc. 624,150*
6,400 Telebanc Financial Corp. 663,199*
30,200 Trammell Crow Co. 543,600*
-----------
Total Banking & Financial Services 1,830,949
-----------
Commercial Services (18.8%)
6,200 Abacus Direct Corp. 458,800*
11,500 Corporate Executive Board Co. 323,438*
15,500 CSG Systems International, Inc. 598,688*
8,500 ECsoft Group PLC (ADR) (United Kingdom) 147,688*
9,100 Forrester Research, Inc. 309,400*
10,900 Information Holdings, Inc. 216,638*
9,200 Intraware, Inc. 281,750*
18,500 MAXIMUS, Inc. 481,000*
14,000 Nova Corp. 364,000*
11,700 Paymentech, Inc. 279,338*
21,000 Pegasus Systems, Inc. 981,749*
40,600 Stericycle, Inc. 477,050*
14,900 Whittman-Hart, Inc. 420,925*
-----------
Total Commercial Services 5,340,464
-----------
Computer Services (14.4%)
11,100 AnswerThink Consulting Group, Inc. 246,281*
500 Critical Path, Inc. 49,750*
11,200 Digital River, Inc. 432,600*
11,300 Eclipsys Corp. 248,600*
4,100 InfoSpace.com, Inc. 587,581*
19,400 International Integration, Inc. 404,975*
500 Mpath Interactive, Inc. 19,688*
12,100 New Era of Networks, Inc. 454,506*
23,000 Security Dynamics Technologies, Inc. 500,250*
5,500 SportsLine USA, Inc. 220,000*
8,100 VeriSign, Inc. 931,499*
-----------
Total Computer Services 4,095,730
-----------
</TABLE>
11
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Earnings Momentum Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares Value
- --------- -----------
<S> <C> <C>
Computer Software (16.7%)
7,800 Bindview Development Corp. $ 167,700*
19,900 Brio Technology, Inc. 278,600*
28,000 Citrix Systems, Inc. 1,189,999*
17,200 Clarify, Inc. 404,200*
9,000 Great Plains Software, Inc. 275,063*
8,700 HNC Software, Inc. 187,050*
6,700 Informatica Corp. 189,275*
14,700 Legato Systems, Inc. 594,431*
100 Marimba, Inc. 6,075*
15,200 Micromuse, Inc. 523,450*
6,900 NEON Systems, Inc. 289,800*
5,300 NetGravity, Inc. 214,319*
28,500 Pervasive Software, Inc. 413,250*
-----------
Total Computer Software 4,733,212
-----------
Electronics (4.1%)
32,700 Bolder Technologies Corp. 298,388*
10,900 Concord Communications, Inc. 487,775*
19,900 Cymer, Inc. 363,175*
-----------
Total Electronics 1,149,338
-----------
Entertainment & Leisure (11.2%)
22,600 Gemstar International Group, Ltd. 2,381,474*
16,600 Macrovision Corp. 780,199*
-----------
Total Entertainment & Leisure 3,161,673
-----------
Foods, Hotels & Restaurants (2.2%)
7,900 Buca, Inc. 143,188*
19,100 O'Charleys, Inc. 266,206*
8,200 P.F. Chang's China Bistro, Inc. 207,050*
-----------
Total Foods, Hotels & Restaurants 616,444
-----------
Healthcare (2.9%)
5,600 Laser Vision Centers, Inc. 235,900*
21,500 Orthodontic Centers of America, Inc. 266,063*
8,600 Perclose, Inc. 326,800*
-----------
Total Healthcare 828,763
-----------
Home Construction, Furnishings & Appliances (0.6%)
10,100 Select Comfort Corp. 163,494*
-----------
Insurance (0.8%)
4,500 Advance Paradigm, Inc. 236,250*
-----------
</TABLE>
12
See accompanying notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares Value
---------- -----------
<S> <C> <C>
Pharmaceuticals (4.1%)
9,100 Algos Pharmaceuticals Corp. $ 265,038*
7,900 Alkermes, Inc. 211,325*
9,000 Biomatrix, Inc. 296,438*
14,100 Pharmaceutical Co., K-V 218,550*
5,400 Transkaryotic Therapies, Inc. 167,400*
-----------
Total Pharmaceuticals 1,158,751
-----------
Pollution Control (3.3%)
27,525 Tetra Tech, Inc. 665,760*
13,500 U. S. Liquids, Inc. 273,375*
-----------
Total Pollution Control 939,135
-----------
Retail (6.6%)
40,300 Guitar Center, Inc. 629,688*
22,400 Hibbet Sporting Goods, Inc. 611,800*
12,900 Insight Enterprises, Inc. 348,300*
7,400 Value America, Inc. 291,838*
-----------
Total Retail 1,881,626
-----------
Telecommunications (3.8%)
7,900 AVT Corp. 214,781*
8,500 Terayon Communication Systems 343,188*
7,500 Verio, Inc. 532,500*
-----------
Total Telecommunications 1,090,469
-----------
Total Common Stock (Cost: $21,181,813) (97.6%) 27,667,811
-----------
<CAPTION>
Principal
Amount Short-term Investments
---------- ----------------------
<S> <C> <C>
$1,600,000 Bank of Montreal, 4.86%, due 05/17/99 1,600,000**
949,100 BankBoston Corp., 5.068%, due 10/29/99 949,100**
1,200,000 Frank Russell Money Market Fund 1,200,000**
1,200,000 Merrimac Cash Fund -- Premium Class 1,200,000**
-----------
Total Short-term Investments (Cost: $4,949,100) (17.4%) 4,949,100
-----------
Total Investments (Cost: $26,130,913) (115.0%) 32,616,911
Liabilities in Excess of Other Assets ( - 15.0%) (4,265,042)
-----------
Net Assets (100.0%) $28,351,869
===========
</TABLE>
Notes to the Schedule of Investments:
* Non-income producing.
** Represents investments of security lending collateral (Note 2).
13
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Large Cap Growth Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares Common Stock Value
- --------- ------------- -----------
<S> <C> <C>
Advertising (2.3% of Net Assets)
6,700 Omnicom Group, Inc. $ 485,750
-----------
Banking & Financial Services (5.2%)
7,300 Charles Schwab Corp. 801,175
2,100 Providian Financial Corp. 271,031
-----------
Total Banking & Financial Services 1,072,206
-----------
Computer Services (9.7%)
3,300 America Online, Inc. 471,075
2,800 At Home Corp. 403,025*
10,500 Dell Computer Corp. 432,469*
1,200 International Business Machines Corp. 251,025
2,600 Yahoo!, Inc. 454,188*
-----------
Total Computer Services 2,011,782
-----------
Computer Software (9.2%)
18,600 Microsoft Corp. 1,512,412*
10,100 Siebel Systems, Inc. 388,219*
-----------
Total Computer Software 1,900,631
-----------
Cosmetics & Household Products (2.3%)
3,400 Gillette Co. 177,438
3,200 Procter & Gamble Co. 300,200
-----------
Total Cosmetics & Household Products 477,638
-----------
Electrical Equipment (6.7%)
13,150 General Electric Co. 1,387,324
-----------
Electronics (8.1%)
14,250 Intel Corp. 871,922
6,700 Maxim Intergrated Products, Inc. 375,200*
9,500 XILINX, Inc. 433,438*
-----------
Total Electronics 1,680,560
-----------
Foods, Hotels & Restaurants (4.1%)
6,850 Bestfoods 343,784
3,200 Coca-Cola Co. 217,600
13,400 Mirage Resorts, Inc. 300,663*
-----------
Total Foods, Hotels & Restaurants 862,047
-----------
Healthcare (2.0%)
4,200 Johnson & Johnson 409,500
-----------
</TABLE>
14
See accompanying notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares Value
- --------- -----------
<S> <C> <C>
Insurance (4.0%)
2,050 American International Group, Inc. $ 240,747
7,775 Marsh & McLennan Companies, Inc. 595,273
-----------
Total Insurance 836,020
-----------
Media -- Broadcasting & Publishing (7.7%)
6,150 Clear Channel Communications, Inc. 427,425*
8,800 Cox Communications, Inc. 698,500*
6,875 Time Warner, Inc. 481,250
-----------
Total Media -- Broadcasting & Publishing 1,607,175
-----------
Pharmaceuticals (15.9%)
5,200 American Home Products Corp. 317,200
5,850 Amgen, Inc. 359,409*
4,900 Bristol-Myers Squibb Co. 311,456
4,600 Eli Lilly & Co. 338,675
5,200 Merck & Company, Inc. 365,300
5,350 Pfizer, Inc. 615,584
6,450 Schering-Plough Corp. 311,616
10,100 Warner-Lambert Co. 686,169
-----------
Total Pharmaceuticals 3,305,409
-----------
Retail (9.1%)
2,400 Amazon.com, Inc. 412,950*
7,150 Home Depot, Inc. 428,553
700 Priceline.com, Inc. 113,663*
20,100 Wal-Mart Stores, Inc. 924,599
-----------
Total Retail 1,879,765
-----------
Telecommunications (11.0%)
3,050 AirTouch Communications, Inc. 284,794*
7,900 Cisco Systems, Inc. 901,094*
8,200 Lucent Technologies, Inc. 493,025
7,300 MCI WorldCom, Inc. 599,969*
-----------
Total Telecommunications 2,278,882
-----------
Tobacco (2.1%)
12,350 Philip Morris Companies, Inc. 433,022
-----------
Transportation (0.5%)
3,350 Southwest Airlines, Inc. 109,084
-----------
Total Common Stock (Cost: $16,096,929) (99.9%) 20,736,795
-----------
</TABLE>
15
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Large Cap Growth Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued) April 30, 1999
<TABLE>
<CAPTION>
Principal
Amount Short-term Investments Value
--------- ---------------------- -----------
<S> <C> <C>
$942,800 BankBoston Corp., 5.068%, due 10/29/99 $ 942,800**
300,000 Frank Russell Money Market Fund 300,000**
600,000 Merrimac Cash Fund -- Premium Class 600,000**
-----------
Total Short-term Investments (Cost: $1,842,800) (8.9%) 1,842,800
-----------
Total Investments (Cost: $17,939,729) (108.8%) 22,579,595
Liabilities in Excess of Other Assets ( - 8.8%) (1,824,253)
-----------
Net Assets (100.0%) $20,755,342
===========
</TABLE>
Notes to the Schedule of Investments:
* Non-income producing.
** Represents investments of security lending collateral (Note 2).
16
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Large Cap Value Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares Common Stock Value
- --------- ------------ -----------
<S> <C> <C>
Aerospace/Defense (6.6% of Net Assets)
38,100 Boeing Co. $ 1,547,813
1,600 Lockheed Martin Corp. 68,900
9,100 Northrop Grumman Corp. 581,831
24,200 Raytheon Co., Class B 1,700,050
7,900 United Technologies Corp. 1,144,513
-----------
Total Aerospace/Defense 5,043,107
-----------
Automotive (5.4%)
85,100 Delphi Automotive Systems Corp. 1,654,131*
17,900 Ford Motor Co. 1,144,481
15,500 General Motors Corp. 1,378,531
-----------
Total Automotive 4,177,143
-----------
Banking & Financial Services (19.0%)
28,900 Associates First Capital Corp., Class A 1,280,631
6,120 Bank One Corp. 361,080
21,100 BankAmerica Corp. 1,519,200
35,900 Citigroup, Inc. 2,701,474
15,400 Federal Home Loan Mortgage Corp. 966,350
5,900 Federal National Mortgage Association 418,531
8,800 Fifth Third Bancorp 630,850
5,100 Golden West Financial Corp. 510,638
9,100 J.P. Morgan & Company, Inc. 1,226,225
16,500 Merrill Lynch & Company, Inc. 1,384,969
13,900 Morgan Stanley Dean Witter & Co. 1,378,706
8,000 Wachovia Corp. 703,000
8,300 Washington Mutual, Inc. 341,338
27,100 Wells Fargo & Co. 1,170,381
-----------
Total Banking & Financial Services 14,593,373
-----------
Chemicals (1.7%)
3,100 Dow Chemical Co. 406,681
11,300 Du Pont (E.I.) De Nemours & Co. 798,063
2,300 Union Carbide Corp. 119,313
-----------
Total Chemicals 1,324,057
-----------
Computer Services (1.6%)
25,100 Compaq Computer Corp. 560,044
9,000 Hewlett-Packard Co. 709,875
-----------
Total Computer Services 1,269,919
-----------
</TABLE>
17
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Large Cap Value Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares Value
- --------- -----------
<S> <C> <C>
Electronics (7.6%)
18,100 Applied Materials, Inc. $ 970,613*
7,200 Emerson Electric Co. 464,400
8,900 Honeywell, Inc. 843,275
19,000 Intel Corp. 1,162,563
15,100 Motorola, Inc. 1,209,888
11,600 Texas Instruments, Inc. 1,184,650
-----------
Total Electronics 5,835,389
-----------
Energy & Oil Services (20.6%)
97,800 Baker Hughes, Inc. 2,921,774
9,600 Chevron Corp. 957,600
4,200 Enron Corp. 316,050
45,000 Exxon Corp. 3,737,812
23,600 Halliburton Co. 1,005,950
11,800 Mobil Corp. 1,236,050
54,600 Royal Dutch Petroleum Co. (Netherlands) 3,204,337
17,800 Schlumberger, Ltd. 1,136,975
21,400 Texaco, Inc. 1,342,850
-----------
Total Energy & Oil Services 15,859,398
-----------
Entertainment & Leisure (0.7%)
17,800 The Walt Disney Co. 565,150
-----------
Foods, Hotels & Restaurants (7.0%)
37,000 McDonald's Corp. 1,567,875
65,000 Mirage Resorts, Inc. 1,458,438*
19,000 PepsiCo, Inc. 701,813
25,115 Tricon Global Restaurants, Inc. 1,616,778*
-----------
Total Foods, Hotels & Restaurants 5,344,904
-----------
Insurance (2.9%)
5,900 Allstate Corp. 214,613
10,500 Marsh & McLennan Companies, Inc. 803,906
8,600 Progressive Corp. 1,234,100
-----------
Total Insurance 2,252,619
-----------
Media -- Broadcasting & Publishing (1.9%)
20,700 Time Warner, Inc. 1,449,000
-----------
Metals (1.0%)
7,400 Alcoa, Inc. 460,650
5,100 Phelps Dodge Corp. 322,575
-----------
Total Metals 783,225
-----------
</TABLE>
18
See accompanying notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares Value
- --------- -----------
<S> <C> <C>
Paper & Forest Products (3.7%)
700 Champion International Corp. $ 38,281
71,000 Fort James Corp. 2,697,999
1,800 Weyerhauser Co. 120,825
-----------
Total Paper & Forest Products 2,857,105
-----------
Retail (2.7%)
35,300 Albertson's, Inc. 1,817,950
2,300 Fred Meyer, Inc. 124,488*
6,600 Supervalu, Inc. 137,775
-----------
Total Retail 2,080,213
-----------
Telecommunications (8.1%)
2,800 Ameritech Corp. 191,625
36,600 AT&T Corp. 1,848,300
16,800 Bell Atlantic Corp. 968,100
40,800 BellSouth Corp. 1,825,800
12,000 GTE Corp. 803,250
5,600 Sprint Corp. 574,350
-----------
Total Telecommunications 6,211,425
-----------
Transportation (4.2%)
6,900 Burlington Northern Santa Fe Corp. 252,713
17,300 Delta Air Lines, Inc. 1,097,469
16,600 FDX Corp. 1,868,537*
-----------
Total Transportation 3,218,719
-----------
Utilities (1.5%)
1,200 American Electric Power Company, Inc. 49,725
11,900 Consolidated Edison, Inc. 540,706
8,600 Duke Energy Corp. 481,600
2,300 Southern Co. 62,244
-----------
Total Utilities 1,134,275
-----------
Total Common Stock (Cost: $65,848,346) (96.2%) 73,999,021
-----------
</TABLE>
19
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Large Cap Value Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued) April 30, 1999
<TABLE>
<CAPTION>
Principal
Amount Short-term Investments Value
---------- ---------------------- -----------
<S> <C> <C>
$ 400,000 Bank of Montreal, 4.86%, due 05/17/99 $ 400,000**
4,161,389 BankBoston Corp., 5.068%, due 10/29/99 4,161,389**
2,099,561 Merrimac Cash Fund -- Premium Class 2,099,561**
-----------
Total Short-term Investments (Cost: $6,660,950) (8.7%) 6,660,950
-----------
Total Investments (Cost: $72,509,296) (104.9%) 80,659,971
Liabilities in Excess of Other Assets ( - 4.9%) (3,757,453)
-----------
Net Assets (100.0%) $76,902,518
===========
</TABLE>
Notes to the Schedule of Investments:
* Non-income producing.
** Represents investments of security lending collateral (Note 2).
20
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Select Equities Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares Common Stock Value
- --------- ------------ ------------
<S> <C> <C>
Banking & Financial Services (11.2% of Net Assets)
137,750 Charles Schwab Corp. $ 15,118,062
53,200 Merrill Lynch & Company, Inc. 4,465,475
227,300 T. Rowe Price Associates 8,566,369
------------
Total Banking & Financial Services 28,149,906
------------
Chemicals (2.7%)
150,800 Monsanto Co. 6,823,700
------------
Commercial Services (4.1%)
95,900 Paychex, Inc. 4,896,894
226,500 Robert Half International, Inc. 5,407,688*
------------
Total Commercial Services 10,304,582
------------
Computer Services (5.7%)
344,700 Dell Computer Corp. 14,197,330*
------------
Computer Software (13.5%)
129,600 Microsoft Corp. 10,538,100*
244,600 Pixar, Inc. 10,150,900*
346,900 Siebel Systems, Inc. 13,333,969*
------------
Total Computer Software 34,022,969
------------
Cosmetics & Household Products (2.0%)
54,200 Procter & Gamble Co. 5,084,638
------------
Electronics (11.0%)
186,200 Applied Materials, Inc. 9,984,975*
214,100 Intel Corp. 13,100,244
79,500 Maxim Intergrated Products, Inc. 4,452,000*
------------
Total Electronics 27,537,219
------------
Foods, Hotels & Restaurants (8.9%)
20,700 Coca-Cola Co. 1,407,600
643,100 Mirage Resorts, Inc. 14,429,555*
291,000 Sodexho Marriott Services, Inc. 6,602,063*
------------
Total Foods, Hotels & Restaurants 22,439,218
------------
Insurance (4.6%)
80,700 Progressive Corp. 11,580,450
------------
Media -- Broadcasting & Publishing (5.9%)
81,200 Cox Communications, Inc. 6,445,250*
120,800 Time Warner, Inc. 8,456,000
------------
Total Media -- Broadcasting & Publishing 14,901,250
------------
</TABLE>
21
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Select Equities Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares Value
- ----------- ------------
<S> <C> <C>
Pharmaceuticals (5.8%)
76,500 Pfizer, Inc. $ 8,802,281
86,100 Warner-Lambert Co. 5,849,419
------------
Total Pharmaceuticals 14,651,700
------------
Retail (6.7%)
165,498 Home Depot, Inc. 9,919,536
129,400 Safeway, Inc. 6,979,513*
------------
Total Retail 16,899,049
------------
Telecommunications (7.9%)
123,725 Cisco Systems, Inc. 14,112,383*
94,400 Lucent Technologies, Inc. 5,675,800
------------
Total Telecommunications 19,788,183
------------
Transportation (5.5%)
231,900 Kansas City Southern Industries, Inc. 13,812,544
------------
Total Common Stock (Cost: $168,829,788) 240,192,738
------------
<CAPTION>
Principal
Amount Short-term Investments
- ----------- ----------------------
<S> <C> <C>
$ 5,471,624 BankBoston Corp., 5.068%, due 10/29/99 5,471,624**
10,700,000 Frank Russell Money Market Fund 10,700,000**
10,124,667 Merrimac Cash Fund -- Premium Class 10,124,667**
7,000,000 Royal Bank of Scotland, 4.87%, due 07/26/99 7,000,000**
------------
Total Short-term Investments (Cost: $33,296,291) (13.3%) 33,296,291
------------
Total Investments (Cost: $202,126,079) (108.8%) 273,489,029
Liabilities in Excess of Other Assets ( - 8.8%) (22,053,479)
------------
Net Assets (100.0%) $251,435,550
============
</TABLE>
Notes to the Schedule of Investments:
* Non-income producing.
** Represents investments of security lending collateral (Note 2).
22
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Small Cap Growth Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares Common Stock Value
- --------- ------------ ------------
<S> <C> <C>
Banking & Financial Services (2.8% of Net Assets)
18,600 Profit Recovery Group International, Inc. $ 678,900*
28,200 Telebanc Financial Corp. 2,922,225*
67,500 Trammell Crow Co. 1,215,000*
------------
Total Banking & Financial Services 4,816,125
------------
Commercial Services (13.2%)
17,100 Abacus Direct Corp. 1,265,400*
64,200 Corporate Executive Board Co. 1,805,625*
94,284 CSG Systems International, Inc. 3,641,720*
19,400 ECsoft Group PLC (ADR) (United Kingdom) 337,075*
14,700 Forrester Research, Inc. 499,800*
96,100 MAXIMUS, Inc. 2,498,600*
149,525 Outdoor Systems, Inc. 3,766,161*
47,700 Pegasus Systems, Inc. 2,229,975*
2,700 ProBusiness Services, Inc. 96,863*
64,650 Robert Half International, Inc. 1,543,519*
102,000 Romac International, Inc. 1,147,500*
27,400 Steiner Leisure, Ltd. 869,950*
103,900 Whittman-Hart, Inc. 2,935,175*
------------
Total Commercial Services 22,637,363
------------
Computer Services (18.0%)
45,100 Applied Graphics Technologies, Inc. 456,638*
12,800 Avid Technology, Inc. 208,000*
81,700 Ciber, Inc. 1,542,088*
1,000 Critical Path, Inc. 99,500*
49,900 Eclipsys Corp. 1,097,800*
7,300 Exchange Applications, Inc. 215,350*
24,200 InfoSpace.com, Inc. 3,468,163*
54,700 International Integration, Inc. 1,141,863*
9,300 International Network Services 353,400*
1,200 iTurf, Inc. 46,800*
2,000 Launch Media, Inc. 50,500*
23,600 Lycos, Inc. 2,352,625*
46,800 Macromedia, Inc. 1,939,275*
34,000 Mercury Interactive Corp. 958,375*
16,900 Mpath Interactive, Inc. 665,438*
4,300 Network Appliance, Inc. 216,344*
102,100 New Era of Networks, Inc. 3,835,131*
17,800 Proxicom, Inc. 399,388*
43,400 SportsLine USA, Inc. 1,736,000*
25,800 USinternetworking, Inc. 1,319,025*
21,000 VeriSign, Inc. 2,415,000*
9,100 VerticalNet Inc. 1,032,850*
</TABLE>
23
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Small Cap Growth Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares or
Warrants Value
- --------- ------------
<S> <C> <C>
Computer Services (Continued)
1,300 Vignette Corp. $ 123,500*
29,500 Yahoo!, Inc. 5,153,281*
------------
Total Computer Services 30,826,334
------------
Computer Software (12.7%)
29,300 CBT Group PLC (ADR) (Ireland) 454,150*
203,600 Citrix Systems, Inc. 8,652,999*
20,700 Genesys Telecommunications Laboratories, Inc. 370,013*
14,900 Great Plains Software, Inc. 455,381*
99,000 HNC Software, Inc. 2,128,500*
16,700 Informatica Corp. 471,775*
75,900 Legato Systems, Inc. 3,069,206*
1,400 Marimba, Inc. 85,050*
12,400 ModaCAD, Inc. 147,250*
51,500 National TechTeam, Inc. 305,781*
27,500 NEON Systems, Inc. 1,155,000*
23,100 NetGravity, Inc. 934,106*
22,900 Pervasive Software, Inc. 332,050*
78,000 Siebel Systems, Inc. 2,998,125*
4,200 SS&C Technologies, Inc. 60,375*
------------
Total Computer Software 21,619,761
------------
Construction (0.5%)
21,400 Astec Industries, Inc. 829,250*
------------
Electronics (5.6%)
3,384 American Satellite Network, Inc., Warrants, expire 06/30/99 17*
2,400 Concord Communications, Inc. 107,400*
28,500 Cymer, Inc. 520,125*
61,400 Maxim Intergrated Products, Inc. 3,438,400*
36,800 Micrel, Inc. 2,166,600*
42,700 Semtech Corp. 1,393,088*
37,100 SIPEX Corp. 519,400*
14,600 Transwitch Corp. 642,400*
21,600 Veeco Intruments, Inc. 831,600*
------------
Total Electronics 9,619,030
------------
Energy & Oil Services (0.2%)
70,700 Eagle Geophysical, Inc. 406,525*
------------
Entertainment & Leisure (6.6%)
66,200 Gemstar International Group, Ltd. 6,975,825*
77,100 Hollywood Entertainment Corp. 1,903,406*
17,200 Macrovision Corp. 808,400*
24,700 SFX Entertainment, Inc. 1,525,225*
------------
Total Entertainment & Leisure 11,212,856
------------
</TABLE>
24
See accompanying notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares Value
- --------- ------------
<S> <C> <C>
Healthcare (4.0%)
134,600 Dendrite International, Inc. $ 3,482,775*
105,700 Diametrics Medical, Inc. 654,019*
51,200 Perclose, Inc. 1,945,600*
71,000 Safeskin Corp. 692,250*
------------
Total Healthcare 6,774,644
------------
Insurance (0.9%)
11,000 Advance Paradigm, Inc. 577,495*
27,600 Provident American Corp. 945,300*
------------
Total Insurance 1,522,795
------------
Media -- Broadcasting & Publishing (5.0%)
69,700 Clear Channel Communications, Inc. 4,844,150*
11,000 Entercom Communications Corp. 408,375*
56,500 Snyder Communications, Inc. 1,659,688*
45,000 Westwood One, Inc. 1,541,250*
------------
Total Media -- Broadcasting & Publishing 8,453,463
------------
Medical Supplies (1.9%)
108,000 Ocular Sciences, Inc. 3,294,000*
------------
Pharmaceuticals (1.3%)
63,800 Alkermes, Inc. 1,706,650*
32,000 Geltex Pharmaceuticals, Inc. 548,000*
------------
Total Pharmaceuticals 2,254,650
------------
Real Estate (0.3%)
24,900 CB Richard Ellis Services, Inc. 501,113*
------------
Retail (9.3%)
31,400 Ann Taylor Stores, Inc. 1,491,500*
77,000 Bed, Bath & Beyond, Inc. 2,747,938*
146,700 Beyond.com Corp. 4,318,481*
49,400 Cost Plus, Inc. 1,741,350*
21,800 DM Management Co. 517,750*
37,925 Dollar Tree Stores, Inc. 1,384,263*
80,700 Guitar Center, Inc. 1,260,938*
15,400 Linens 'N Things Inc. 704,550
79,900 Petsmart, Inc. 744,069*
7,600 RoweCom, Inc 218,500*
20,500 Value America, Inc. 808,469*
------------
Total Retail 15,937,808
------------
</TABLE>
25
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Small Cap Growth Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares Value
---------- ------------
<S> <C> <C>
Telecommunications (13.7%)
23,500 Broadcast.com, Inc. $ 3,013,875*
108,600 Exodus Communications, Inc. 9,787,574*
70,400 GeoTel Communications Corp. 3,960,000*
29,000 MetroNet Communications Corp. (Canada) 1,609,500*
70,300 Verio, Inc. 4,991,300*
------------
Total Telecommunications 23,362,249
------------
Transportation (0.7%)
37,800 Atlantic Coast Airlines Holdings, Inc. 1,167,075*
------------
Total Common Stock (Cost: $91,480,555) (96.7%) 165,235,041
------------
<CAPTION>
Principal
Amount Short-term Investments
---------- ----------------------
<S> <C> <C>
$7,000,000 Bank of Montreal, 4.86%, due 05/17/99 7,000,000**
8,000,000 Bank of Nova Scotia, 4.938%, due 06/07/99 8,000,000**
4,230,919 BankBoston Corp., 5.068%, due 10/29/99 4,230,919**
8,300,000 Frank Russell Money Market Fund 8,300,000**
6,089,089 Merrimac Cash Fund -- Premium Class 6,089,089**
4,000,000 Royal Bank of Scotland, 4.87%, due 07/26/99 4,000,000**
8,000,000 Toronto Dominion, 4.875%, due 06/15/99 8,000,000**
------------
Total Short-term Investments (Cost: $45,620,008) (26.7%) 45,620,008
------------
Total Investments (Cost: $137,100,563) (123.4%) 210,855,049
Liabilities in Excess of Other Assets ( - 23.4%) (39,921,254)
------------
Net Assets (100.0%) $170,933,795
============
</TABLE>
Notes to the Schedule of Investments:
* Non-income producing.
** Represents investments of security lending collateral (Note 2).
26
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Value Opportunities Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares Common Stock Value
- --------- ------------ -----------
<S> <C> <C>
Building Materials (1.9% of Net Assets)
8,000 Southdown, Inc. $ 512,500
-----------
Chemicals (7.6%)
17,800 Crompton & Knowles Corp. 360,450
10,300 Ferro Corp. 285,181
22,800 International Specialty Products, Inc. 188,100*
17,600 Mallinckrodt, Inc. 617,100
23,600 Raychem Corp. 623,925
-----------
Total Chemicals 2,074,756
-----------
Commercial Services (2.3%)
94,800 Olsten Corp. 639,900
-----------
Computer Services (10.0%)
32,500 Data General Corp. 379,844*
38,000 Mentor Graphics Corp. 460,750*
67,000 Read-Rite Corp. 414,563*
13,000 Shared Medical Systems Corp. 706,063
18,200 Wang Laboratories, Inc. 456,138*
38,800 Western Digital Corp. 307,975*
-----------
Total Computer Services 2,725,333
-----------
Construction (1.8%)
37,000 Johns Manville Corp. 497,188
-----------
Electronics (18.4%)
40,000 Anixter International, Inc. 630,000*
46,500 Arrow Electronics, Inc. 845,718*
24,500 Commscope, Inc. 597,188*
65,000 Cypress Semiconductor Corp. 666,250*
49,500 International Rectifier Corp. 482,625*
18,000 Millipore Corp. 552,375
15,000 Molex, Inc., Class A 433,125
45,700 Vishay Intertechnology, Inc. 796,893*
-----------
Total Electronics 5,004,174
-----------
Energy & Oil Services (4.9%)
52,600 Pride International, Inc. 614,763*
27,600 Talisman Energy, Inc. 733,125*
-----------
Total Energy & Oil Services 1,347,888
-----------
</TABLE>
27
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Value Opportunities Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares Value
- --------- -----------
<S> <C> <C>
Foods, Hotels & Restaurants (8.1%)
25,000 CKE Restaurants, Inc. $ 409,375
15,600 Dean Foods Co. 556,725
23,100 Interstate Bakeries Corp. 513,975
31,900 Mirage Resorts, Inc. 715,756*
-----------
Total Foods, Hotels & Restaurants 2,195,831
-----------
Healthcare (4.8%)
83,500 Beverly Enterprises, Inc. 542,750*
22,000 McKesson HBOC, Inc. 769,999
-----------
Total Healthcare 1,312,749
-----------
Household Products (1.1%)
12,000 American Greetings Corp. 314,250
-----------
Insurance (7.6%)
10,500 American Financial Group, Inc. 381,281
15,100 Fremont General Corp. 302,000
10,000 NAC Re Corp. 545,000
17,000 Old Republic International Corp. 332,563
17,000 Orion Capital Corp. 500,438
-----------
Total Insurance 2,061,282
-----------
Machinery (2.0%)
22,395 Albany International Corp., Class A 543,079
-----------
Media -- Broadcasting & Publishing (5.3%)
15,500 Houghton Mifflin Co. 691,688
21,000 Readers Digest Association, Inc., Class A 746,812
-----------
Total Media -- Broadcasting & Publishing 1,438,500
-----------
Metals (3.0%)
26,000 Bethlehem Steel Corp. 237,250*
30,000 Inco Ltd. 575,625
-----------
Total Metals 812,875
-----------
Paper & Forest Products (1.2%)
14,000 Smurfit-Stone Container Corp. 327,250*
-----------
Retail (16.9%)
20,200 Consolidated Stores Corp. 694,375*
41,700 General Nutrition Companies, Inc. 690,656*
77,700 Heilig Meyers Co. 456,488
25,700 Jones Apparel Group, Inc. 848,099*
26,500 Pep Boys-Manny, Moe and Jack, Inc. 379,281
17,400 Polo Ralph Lauren Corp. 387,150*
</TABLE>
28
See accompanying notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares Value
--------- -----------
<S> <C> <C>
Retail (Continued)
25,000 R.H. Donnelley Corp. $ 412,500
27,500 Warnaco Group, Inc., Class A 733,906
-----------
Total Retail 4,602,455
-----------
Transportation (1.4%)
11,000 GATX Corp. 378,125
-----------
Total Common Stock (Cost: $25,950,228) (98.3%) 26,788,135
-----------
<CAPTION>
Principal
Amount Short-term Investments
--------- ----------------------
<S> <C> <C>
$215,674 BankBoston Corp., 5.068%, due 10/29/99 215,674**
490,713 Merrimac Cash Fund -- Premium Class 490,713**
-----------
Total Short-term Investments (Cost: $706,387) (2.6%) 706,387
-----------
Total Investments (Cost: $26,656,615) (100.9%) 27,494,522
Liabilities in Excess of Other Assets (-0.9%) (235,518)
-----------
Net Assets (100.0%) $27,259,004
===========
</TABLE>
Notes to the Schedule of Investments:
* Non-income producing.
** Represents investments of security lending collateral (Note 2).
29
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Funds, Inc.
- --------------------------------------------------------------------------------
U.S. Equities
Statements of Assets and Liabilities (Unaudited) April 30, 1999
<TABLE>
<CAPTION>
TCW Galileo
Aggressive TCW Galileo TCW Galileo
Growth Convertible Earnings
Equities Securities Momentum
Fund Fund Fund
----------- ----------- -----------
Dollar Amounts in Thousands
(Except per Share Amounts)
<S> <C> <C> <C>
ASSETS
Investments, at Value (/1/) $ 187,378 $ 43,316 $ 32,617
Cash 4,372 2,196 960
Receivables for Securities Sold 742 1,901 10
Receivable for Fund Shares Sold 7 -- --
Interest and Dividends Receivable 47 303 7
Deferred Organization Costs 1 2 --
---------- ---------- ----------
Total Assets 192,547 47,718 33,594
---------- ---------- ----------
LIABILITIES
Payables for Securities Purchased -- 2,847 214
Payable for Fund Shares Redeemed -- 1,265 --
Payables Upon Return of Securities Loaned
(Note 2) 41,609 1,168 4,949
Management Fees 122 26 23
Other Accrued Expenses 62 66 56
---------- ---------- ----------
Total Liabilities 41,793 5,372 5,242
---------- ---------- ----------
NET ASSETS $ 150,754 $ 42,346 $ 28,352
========== ========== ==========
NET ASSETS CONSIST OF:
Paid-in Capital $ 41,560 $ 33,636 $ 12,993
Undistributed Net Realized Gain on
Investments 28,750 5,722 11,308
Unrealized Appreciation on Investments 83,210 2,943 6,486
Undistributed Net Investment Income
(Loss) (2,766) 45 (2,435)
---------- ---------- ----------
NET ASSETS $ 150,754 $ 42,346 $ 28,352
========== ========== ==========
NET ASSETS ATTRIBUTABLE TO:
Institutional Class Shares $ 149,807 $ 42,346 $ 28,352
========== ========== ==========
Advisory Class Shares $ 947 $ -- $ --
========== ========== ==========
CAPITAL SHARES OUTSTANDING:
Institutional Class 7,453,524 3,591,292 2,475,397
========== ========== ==========
Advisory Class 47,160 -- --
========== ========== ==========
NET ASSET VALUE PER SHARE:
Institutional Class $ 20.10 $ 11.79 $ 11.45
========== ========== ==========
Advisory Class $ 20.09 $ -- $ --
========== ========== ==========
</TABLE>
(1) The identified cost for the TCW Galileo Aggressive Growth Equities Fund,
TCW Galileo Convertible Securities Fund and the TCW Galileo Earnings Momen-
tum Fund was $104,168, $40,373 and $26,131, respectively.
30
See accompanying notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities (Unaudited) April 30, 1999
<TABLE>
<CAPTION>
TCW TCW TCW TCW TCW
Galileo Galileo Galileo Galileo Galileo
Large Cap Large Cap Select Small Cap Value
Growth Value Equities Growth Opportunities
Fund Fund Fund Fund Fund
---------- ---------- ----------- ---------- -------------
Dollar Amounts in Thousands
(Except per Share Amounts)
<S> <C> <C> <C> <C> <C>
ASSETS
Investments, at Value
(/1/) $ 22,580 $ 80,660 $ 273,489 $ 210,855 $ 27,495
Cash 62 2,843 11,214 5,653 1,509
Receivables for
Securities Sold -- 65 -- 1,980 1,400
Receivables for Fund
Shares Sold -- -- 240 65 --
Interest and Dividends
Receivable 6 71 77 35 13
Deferred Organization
Costs -- -- -- -- 4
---------- ---------- ----------- ---------- ----------
Total Assets 22,648 83,639 285,020 218,588 30,421
---------- ---------- ----------- ---------- ----------
LIABILITIES
Payables for Securities
Purchased -- -- -- 1,824 789
Payables for Fund
Shares Redeemed -- -- 69 10 1,591
Payables Upon Return of
Securities Loaned
(Note 2) 1,843 6,661 33,296 45,620 706
Management Fees 10 31 154 139 18
Other Accrued Expenses 40 44 65 61 58
---------- ---------- ----------- ---------- ----------
Total Liabilities 1,893 6,736 33,584 47,654 3,162
---------- ---------- ----------- ---------- ----------
NET ASSETS $ 20,755 $ 76,903 $ 251,436 $ 170,934 $ 27,259
========== ========== =========== ========== ==========
NET ASSETS CONSIST OF:
Paid-in Capital $ 15,000 $ 67,986 $ 121,021 $ 83,724 $ 25,198
Undistributed Net
Realized Gain on
Investments 1,140 658 59,588 17,874 1,269
Unrealized Appreciation
on Investments 4,640 8,151 71,363 73,754 838
Undistributed Net
Investment Income
(Loss) (25) 108 (536) (4,418) (46)
---------- ---------- ----------- ---------- ----------
NET ASSETS $ 20,755 $ 76,903 $ 251,436 $ 170,934 $ 27,259
========== ========== =========== ========== ==========
NET ASSETS ATTRIBUTABLE TO:
Institutional Class
Shares $ 20,744 $ 76,873 $ 249,562 $ 170,895 $ 27,259
========== ========== =========== ========== ==========
Advisory Class Shares $ 11 $ 30 $ 1,874 $ 39 $ --
========== ========== =========== ========== ==========
CAPITAL SHARES OUTSTANDING:
Institutional Class 1,403,523 6,135,472 13,218,099 7,415,674 2,507,340
========== ========== =========== ========== ==========
Advisory Class 751 2,343 99,274 1,714 --
========== ========== =========== ========== ==========
NET ASSET VALUE PER
SHARE:
Institutional Class $ 14.78 $ 12.53 $ 18.88 $ 23.05 $ 10.88
========== ========== =========== ========== ==========
Advisory Class $ 14.78 $ 12.52 $ 18.88 $ 23.03 $ --
========== ========== =========== ========== ==========
</TABLE>
(1) The identified cost for the TCW Galileo Large Cap Growth Fund, the TCW
Galileo Large Cap Value Fund, the TCW Galileo Select Equities Fund, the TCW
Galileo Small Cap Growth Fund and the TCW Galileo Value Opportunities Fund
was $17,940, $72,509, $202,126, $137,101 and $26,657, respectively.
31
See accompanying notes to financial statements.
<PAGE>
TCW GALILEO FUNDS, INC.
- --------------------------------------------------------------------------------
U.S. Equities
Statements of Operations (Unaudited) Six Months Ended April 30, 1999
<TABLE>
<CAPTION>
TCW
Galileo TCW TCW
Aggressive Galileo Galileo
Growth Convertible Earnings
Equities Securities Momentum
Fund Fund Fund
---------- ----------- --------
Dollar Amounts in Thousands
<S> <C> <C> <C>
INVESTMENT INCOME
Income:
Dividends $ 39 $ 328 $ 1
Interest (Note 2) 136 623 22
------- ------ -------
Total 175 951 23
------- ------ -------
Expenses:
Management Fees 613 154 167
Accounting Service Fees 18 14 14
Custodian Fees 6 10 3
Transfer Agent Fees 19 11 15
Registration Fees 14 14 14
Directors' Fees & Expenses 3 3 3
Audit and Tax Fees 8 8 8
Administration Fees 8 3 3
Other 10 6 12
------- ------ -------
Total Expenses 699 223 239
Less Expenses Borne by Investment Adviser -- -- 1
------- ------ -------
Net Expenses 699 223 238
------- ------ -------
Net Investment Income (Loss) (524) 728 (215)
------- ------ -------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS
Net Realized Gain on Investments 25,630 4,547 6,814
Change in Unrealized Appreciation
(Depreciation) on Investments 56,108 2,360 (2,262)
------- ------ -------
Net Realized and Unrealized Gain on
Investments 81,738 6,907 4,552
------- ------ -------
INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $81,214 $7,635 $ 4,337
======= ====== =======
</TABLE>
32
See accompanying notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
Statements of Operations (Unaudited) Six Months Ended April 30, 1999
<TABLE>
<CAPTION>
TCW TCW TCW TCW TCW
Galileo Galileo Galileo Galileo Galileo
Large Cap Large Cap Select Small Cap Value
Growth Value Equities Growth Opportunities
Fund Fund Fund Fund Fund
--------- --------- -------- --------- -------------
Dollar Amounts in Thousands
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Dividends $ 43 $ 232 $ 299 $ 1 $ 124
Interest (Note 2) 8 45 152 162 27
------ ------ ------- ------- ------
Total 51 277 451 163 151
------ ------ ------- ------- ------
Expenses:
Management Fees 37 96 829 740 109
Accounting Service Fees 13 14 22 19 14
Custodian Fees 3 11 6 14 4
Transfer Agent Fees 6 6 20 20 10
Registration Fees 14 14 13 15 14
Directors' Fees and
Expenses 3 3 3 3 3
Audit and Tax Fees 9 9 8 8 9
Administration Fees 2 3 13 9 2
Amortization of Deferred
Organization Costs -- -- -- 1 --
Other 3 4 23 14 7
------ ------ ------- ------- ------
Total Expenses 90 160 937 843 172
Less Expenses Borne by
Investment Adviser 16 14 -- -- --
------ ------ ------- ------- ------
Net Expenses 74 146 937 843 172
------ ------ ------- ------- ------
Net Investment Income
(Loss) (23) 131 (486) (680) (21)
------ ------ ------- ------- ------
NET REALIZED AND
UNREALIZED GAIN ON
INVESTMENTS
Net Realized Gain on
Investments 1,128 944 25,420 16,327 1,850
Change in Unrealized
Appreciation on
Investments 2,540 7,754 30,159 34,340 2,755
------ ------ ------- ------- ------
Net Realized and
Unrealized Gain on
Investments 3,668 8,698 55,579 50,667 4,605
------ ------ ------- ------- ------
INCREASE IN NET ASSETS
RESULTING FROM
OPERATIONS $3,645 $8,829 $55,093 $49,987 $4,584
====== ====== ======= ======= ======
</TABLE>
33
See accompanying notes to financial statements.
<PAGE>
TCW GALILEO FUNDS, INC.
- --------------------------------------------------------------------------------
U.S. Equities
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
TCW Galileo Aggressive TCW Galileo Convertible
Growth Equities Fund Securities Fund
----------------------- -----------------------
Six Months Six Months
Ended Ended
April 30, Year Ended April 30, Year Ended
1999 October 31, 1999 October 31,
(Unaudited) 1998 (Unaudited) 1998
----------- ----------- ----------- -----------
Dollar Amounts in Thousands
<S> <C> <C> <C> <C>
OPERATIONS
Net Investment Income (Loss) $ (524) $ (1,027) $ 728 $ 1,057
Net Realized Gain on
Investments 25,630 26,267 4,547 2,821
Change in Unrealized
Appreciation (Depreciation)
on Investments 56,108 (5,470) 2,360 (2,652)
-------- -------- ------- -------
Increase in Net Assets
Resulting from Operations 81,214 19,770 7,635 1,226
-------- -------- ------- -------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net
Investment Income -- -- (580) (1,059)
Distributions in Excess of Net
Investment Income -- -- -- (103)
Distributions from Net
Realized Gains (12,024) -- (2,009) (2,114)
-------- -------- ------- -------
Total Distributions to
Shareholders (12,024) -- (2,589) (3,276)
-------- -------- ------- -------
NET CAPITAL SHARE TRANSACTIONS
(NOTE 7):
Institutional Class (4,221) (70,716) 9,912 (7,452)
Advisory Class 881 -- -- --
-------- -------- ------- -------
Increase (Decrease) in Net
Assets Resulting from Net
Capital Share Transactions (3,340) (70,716) 9,912 (7,452)
-------- -------- ------- -------
Increase (Decrease) in Net
Assets 65,850 (50,946) 14,958 (9,502)
NET ASSETS
Beginning of Period 84,904 135,850 27,388 36,890
-------- -------- ------- -------
End of Period $150,754 $ 84,904 $42,346 $27,388
======== ======== ======= =======
</TABLE>
34
See accompanying notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
TCW Galileo Earnings TCW Galileo Large Cap
Momentum Fund Growth Fund
----------------------- ----------------------------
Six Months Six Months June 3, 1998
Ended Ended (Commencement
April 30, Year Ended April 30, of Operations)
1999 October 31, 1999 through
(Unaudited) 1998 (Unaudited) October 31, 1998
----------- ----------- ----------- ----------------
Dollar Amounts in Thousands
<S> <C> <C> <C> <C>
OPERATIONS
Net Investment (Loss) $ (215) $ (650) $ (23) $ (2)
Net Realized Gain on
Investments 6,814 4,544 1,128 451
Change in Unrealized
Appreciation
(Depreciation) on
Investments (2,262) (11,629) 2,540 345
------- -------- ------- ------
Increase (Decrease) in Net
Assets Resulting from
Operations 4,337 (7,735) 3,645 794
------- -------- ------- ------
DISTRIBUTIONS TO
SHAREHOLDERS
Distributions from Net
Realized Gains (1,596) (6,319) (439) --
------- -------- ------- ------
NET CAPITAL SHARE
TRANSACTIONS (NOTE 7):
Institutional Class (6,688) (55,314) 9,738 7,006
Advisory Class -- -- 11 --
------- -------- ------- ------
Increase (Decrease) in Net
Assets Resulting from Net
Capital Share
Transactions (6,688) (55,314) 9,749 7,006
------- -------- ------- ------
Increase (Decrease) in Net
Assets (3,947) (69,368) 12,955 7,800
NET ASSETS
Beginning of Period 32,299 101,667 7,800 --
------- -------- ------- ------
End of Period $28,352 $ 32,299 $20,755 $7,800
======= ======== ======= ======
</TABLE>
35
See accompanying notes to financial statements.
<PAGE>
TCW GALILEO FUNDS, INC.
- --------------------------------------------------------------------------------
U.S. Equities
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
TCW Galileo Large Cap TCW Galileo Select
Value Fund Equities Fund
---------------------------- -----------------------
Six Months June 3, 1998 Six Months
Ended (Commencement Ended
April 30, of Operations) April 30, Year Ended
1999 through 1999 October 31,
(Unaudited) October 31, 1998 (Unaudited) 1998
----------- ---------------- ----------- -----------
Dollar Amounts in Thousands
<S> <C> <C> <C> <C>
OPERATIONS
Net Investment Income
(Loss) $ 131 $ 36 $ (486) $ (215)
Net Realized Gain (Loss)
on Investments 944 (286) 25,420 40,589
Change in Unrealized
Appreciation
(Depreciation) on
Investments 7,754 159 30,159 (9,408)
------- ------ -------- --------
Increase (Decrease) in
Net Assets Resulting
from Operations 8,829 (91) 55,093 30,966
------- ------ -------- --------
DISTRIBUTIONS TO
SHAREHOLDERS
Distributions from Net
Investment Income (59) -- -- --
Distributions from Net
Realized Gains -- -- (27,870) (37,055)
------- ------ -------- --------
Total Distributions to
Shareholders (59) -- (27,870) (37,055)
------- ------ -------- --------
NET CAPITAL SHARE
TRANSACTIONS (NOTE 7):
Institutional Class 60,599 7,596 37,463 34,841
Advisory Class 29 -- 1,885 --
------- ------ -------- --------
Increase (Decrease) in
Net Assets Resulting
from Net Capital Share
Transactions 60,628 7,596 39,348 34,841
------- ------ -------- --------
Increase (Decrease) in
Net Assets 69,398 7,505 66,571 28,752
NET ASSETS
Beginning of Period 7,505 -- 184,865 156,113
------- ------ -------- --------
End of Period $76,903 $7,505 $251,436 $184,865
======= ====== ======== ========
</TABLE>
36
See accompanying notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
TCW Galileo Small Cap TCW Galileo Value
Growth Fund Opportunities Fund
----------------------- ----------------------------
Six Months Six Months November 3, 1997
Ended Ended (Commencement
April 30, Year Ended April 30, of Operations)
1999 October 31, 1999 through
(Unaudited) 1998 (Unaudited) October 31, 1998
----------- ----------- ----------- ----------------
Dollar Amounts in Thousands
<S> <C> <C> <C> <C>
OPERATIONS
Net Investment Income
(Loss) $ (680) $ (1,245) $ (21) $ 16
Net Realized Gain (Loss)
on Investments 16,327 1,477 1,850 (581)
Change in Unrealized
Appreciation
(Depreciation) on
Investments 34,340 (7,110) 2,755 (2,809)
-------- -------- ------- -------
Increase (Decrease) in
Net Assets Resulting
from Operations 49,987 (6,878) 4,584 (3,374)
-------- -------- ------- -------
DISTRIBUTIONS TO
SHAREHOLDERS
Distributions from Net
Investment Income -- -- -- (16)
Distributions in Excess
of Net Investment Income -- -- -- (25)
Distributions from Net
Realized Gains (1,935) (9,228) -- --
-------- -------- ------- -------
Total Distributions to
Shareholders (1,935) (9,228) -- (41)
-------- -------- ------- -------
NET CAPITAL SHARE
TRANSACTIONS (NOTE 7):
Institutional Class 6,793 (12,600) (5,959) 32,049
Advisory Class 39 -- -- --
-------- -------- ------- -------
Increase (Decrease) in
Net Assets Resulting
from Net Capital Share
Transactions 6,832 (12,600) (5,959) 32,049
-------- -------- ------- -------
Increase (Decrease) in
Net Assets 54,884 (28,706) (1,375) 28,634
NET ASSETS
Beginning of Period 116,050 144,756 28,634 --
-------- -------- ------- -------
End of Period $170,934 $116,050 $27,259 $28,634
======== ======== ======= =======
</TABLE>
37
See accompanying notes to financial statements.
<PAGE>
TCW GALILEO FUNDS, INC.
- --------------------------------------------------------------------------------
U.S. Equities
Notes to Financial Statements (Unaudited) April 30, 1999
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 20 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. For the period November 1,
1998 through February 28, 1999, TCW Funds Management, Inc. was also the
administrator of the Funds day-to-day operations. As of March 1, 1999,
Investors Bank & Trust Company became the administrator of the Funds. TCW Asia
Limited and TCW London International, Limited are sub-advisers for the TCW
Galileo Emerging Markets Equities Fund. TCW London International, Limited is
also 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 Equities 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 Total
Return Mortgage-Backed Securities Fund (formerly TCW Galileo Long Term
Mortgage-Backed Securities Fund), one non-diversified fixed income fund (the
TCW Galileo Emerging Markets Income Fund), a convertible securities fund (the
TCW Galileo Convertible Securities Fund), and thirteen non-diversified equity
funds (the TCW Galileo Select Equities Fund (formerly TCW Galileo Core Equities
Fund), the TCW Galileo Earnings Momentum Fund, the TCW Galileo Aggressive
Growth Equities Fund (formerly TCW Galileo Mid-Cap Growth Fund), the TCW
Galileo Small Cap Growth Fund, the TCW Galileo Large Cap Growth Fund, the
TCW Galileo Large Cap Value Fund, the TCW Galileo Asia Pacific Equities Fund,
the TCW Galileo Emerging Markets Equities Fund, the TCW Galileo Latin America
Equities 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.
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 Total Return
Mortgage-Backed Securities Fund seeks income by investing primarily in long-
term mortgage backed securities; (6) the TCW Galileo Convertible Securities
Fund seeks high total return from current income and capital appreciation
through investment principally in convertible securities; (7) the TCW Galileo
Select Equities 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 Aggressive Growth Equities 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 Equities Fund seeks long-term
capital appreciation, primarily by investing in equity securities of companies
in the Asia Pacific
38
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued) April 30, 1999
region; (12) the TCW Galileo Emerging Markets Equities 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 Equities
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; (17)
the 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; (18) the TCW Galileo Emerging Markets Income Fund seeks high total
return from capital appreciation and current income by investing at least 65%
of its total assets in debt securities issued or guaranteed by companies,
financial institutions, and government entities in emerging market countries;
(19) the TCW Galileo Large Cap Growth Fund seeks long-term appreciation by
investing primarily in publicly traded equity securities of large
capitalization U.S. companies with above average earnings prospects; and (20)
the TCW Galileo Large Cap Value Fund seeks long-term capital appreciation by
investing primarily in publicly traded equity securities of large
capitalization companies.
As of March 1, 1999, nine funds (TCW Galileo Select Equities Fund, TCW Galileo
Large Cap Value Fund, TCW Galileo Large Cap Growth Fund, TCW Galileo Aggressive
Growth Equities Fund, TCW Galileo Small Cap Growth Fund, TCW Galileo European
Equities Fund, TCW Galileo Core Fixed Income Fund, TCW Galileo Total Return
Mortgage-Backed Securities Fund and TCW Galileo High Yield Bond Fund) commenced
offering two classes of shares, Institutional Class shares and Advisory Class
shares. Shares of each class of the Funds represent an equal pro rata interest
in the Funds and generally gives the shareholder the same voting, dividend,
liquidation, and other rights. The Institutional Class shares are offered at
the current net asset value. The Advisory Class shares are also offered at the
current net asset value, but are subject to fees imposed under a distribution
plan adopted pursuant to Rule 12b-1 under the 1940 Act.
The following is a summary of significant accounting policies which are in
conformity with generally accepted accounting principles and which are
consistently followed by the Funds in the preparation of their financial
statements. The preparation of the financial statements in accordance with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts and disclosures in the
financial statements
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.
39
<PAGE>
TCW GALILEO FUNDS, INC.
- --------------------------------------------------------------------------------
U.S. Equities
Notes to Financial Statements (Unaudited) (Continued) April 30, 1999
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 un-
der 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 remain-
ing maturity of 60 days, whereupon they will be valued at amortized value using
their value of 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 identifi-
cation.
Repurchase Agreements: The Funds may invest in repurchase agreements secured by
U.S. Government obligations and in other securities. Securities pledged as col-
lateral 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; how-
ever, in the event of default or bankruptcy by the other party to the agree-
ments, realization and/or retention of the collateral may be subject to legal
proceedings.
Security Lending: The Funds may lend their securities to qualified brokers. The
loans are collateralized at all times with cash or securities with a market
value at least equal to the market value of the securities on loan. As with
other extensions of credit, the Funds may bear the risk of delay in recovery or
even loss of rights in the collateral if the borrowers of the securities fail
financially. The Funds receive compensation for lending their securities. At
April 30, 1999, the following Funds loaned securities that were collateralized
in cash which was invested in short-term investments:
<TABLE>
<CAPTION>
Securities
Market Value of Lending
Loaned Securities Collateral Value Fees
----------------- ---------------- ----------
<S> <C> <C> <C>
TCW Galileo Convertible Securi-
ties Fund $ 1,136,765 $ 1,167,747 $ 234
TCW Galileo Select Equities Fund 32,402,116 33,296,291 24,824
TCW Galileo Earnings Momentum
Fund 4,746,131 4,949,100 2,043
TCW Galileo Large Cap Growth
Fund 1,763,069 1,842,800 1,581
TCW Galileo Large Cap Value Fund 6,436,213 6,660,950 2,068
TCW Galileo Aggressive Growth
Equities Fund 40,535,648 41,609,254 59,563
TCW Galileo Small Cap Growth
Fund 44,104,972 45,620,008 17,144
TCW Galileo Value Opportunities
Fund 665,960 706,387 45
</TABLE>
Securities lending fees are included in interest income in the Statements of
Operations.
Options: Premiums received from call options written are recorded as a liabili-
ty. 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 re-
ceived 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 op-
tion contracts entered into during the six months ended April 30, 1999.
40
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued) April 30, 1999
Deferred Organization Costs: Organizational costs of approximately $4,000,
$2,000 and $5,000 for the TCW Galileo Convertible Securities Fund, the TCW Gal-
ileo Aggressive Growth Equities 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. Organi-
zational costs for all other U.S. Equities funds have been fully amortized or
were de minimus and therefore, were not deferred. Those costs were expensed as
incurred.
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 Securi-
ties Fund, the TCW Galileo Aggressive Growth Equities Fund, the TCW Galileo
Small Cap Growth Fund, and the 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 organiza-
tion 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 redemp-
tion.
Allocation of Operating Activity: Investment income, common expenses and real-
ized and unrealized gains and losses are allocated among the classes of shares
of the Funds based on the relative net assets of each class. Distribution fees,
which are directly attributable to a class of shares, are charged to that
class' operations. 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 di-
viding 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 Standard Time.
Dividends and Distributions: The TCW Galileo Convertible Securities Fund de-
clares and pays, or reinvests, dividends from net investment income quarterly.
The other equity funds declare and pay, or reinvest, dividends from net invest-
ment income annually. Distribution of any net long-term and net short-term cap-
ital 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 cur-
rency transactions, market discount, losses deferred to wash sales, excise tax
regulations and employing equalization in determining amounts to be distributed
to Fund shareholders. Permanent book and tax basis differences relating to
shareholder distributions will result in reclassifications to paid-in capital
and may impact 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.
41
<PAGE>
TCW GALILEO FUNDS, INC.
- --------------------------------------------------------------------------------
U.S. Equities
Notes to Financial Statements (Unaudited) (Continued) April 30, 1999
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, 1999, net unrealized appreciation (depreciation) on investments for
federal income tax purposes was as follows:
<TABLE>
<CAPTION>
TCW Galileo TCW Galileo TCW Galileo
Aggressive Growth Convertible Earnings Momentum
Equities Fund Securities Fund Fund
----------------- ------------------- -----------------
<S> <C> <C> <C>
Unrealized Appreciation $ 85,350,870 $ 4,563,911 $ 8,326,044
Unrealized
(Depreciation) (2,140,617) (1,621,380) (1,840,046)
------------ ----------- ------------
Net Unrealized
Appreciation $ 83,210,253 $ 2,942,531 $ 6,485,998
============ =========== ============
Cost of Investments for
Federal Income Tax
Purposes $104,167,540 $40,373,223 $ 26,130,913
============ =========== ============
<CAPTION>
TCW Galileo TCW Galileo TCW Galileo
Large Cap Growth Large Cap Value Select Equities
Fund Fund Fund
----------------- ------------------- -----------------
<S> <C> <C> <C>
Unrealized Appreciation $ 4,964,991 $ 9,124,772 $ 80,866,993
Unrealized
(Depreciation) (325,125) (974,097) (9,504,043)
------------ ----------- ------------
Net Unrealized
Appreciation $ 4,639,866 $ 8,150,675 $ 71,362,950
============ =========== ============
Cost of Investments for
Federal Income Tax
Purposes $ 17,939,729 $72,509,296 $202,126,079
============ =========== ============
<CAPTION>
TCW Galileo TCW Galileo
Small Cap Growth Value Opportunities
Fund Fund
----------------- -------------------
<S> <C> <C> <C>
Unrealized Appreciation $ 77,411,701 $ 3,739,448
Unrealized
(Depreciation) (3,657,215) (2,901,541)
------------ -----------
Net Unrealized
Appreciation $ 73,754,486 $ 837,907
============ ===========
Cost of Investments for
Federal Income Tax
Purposes $137,100,563 $26,656,615
============ ===========
</TABLE>
At April 30, 1999, the following Funds had net realized loss carryforwards for
federal income tax purposes (in thousands):
<TABLE>
<CAPTION>
Expiring in 2006
----------------
<S> <C>
TCW Galileo Large Cap Value Fund $ 11
TCW Galileo Value Opportunities Fund 526
</TABLE>
Note 4 -- Investment Advisory and Accounting Service Fees
The Funds pay to the Adviser, as compensation for services rendered, facilities
furnished and expenses borne by it, the following annual management fees:
<TABLE>
<S> <C>
TCW Galileo Aggressive Growth Equities Fund 1.00%
TCW Galileo Convertible Securities Fund 0.75%
TCW Galileo Earnings Momentum Fund 1.00%
TCW Galileo Large Cap Growth Fund 0.55%
TCW Galileo Large Cap Value Fund 0.55%
TCW Galileo Select Equities Fund 0.75%
TCW Galileo Small Cap Growth Fund 1.00%
TCW Galileo Value Opportunities Fund 0.80%
</TABLE>
42
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued) April 30, 1999
Note 4 -- Investment Advisory and Accounting Service Fees (continued)
For the period November 1, 1998 through February 28, 1999, when the Adviser was
the administrator of the Funds, each equity Fund reimbursed 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,
the TCW Galileo Large Cap Growth Fund, The TCW Galileo Large Cap Value Fund and
the TCW Galileo Value Opportunities Fund were limited to 1.05%, 0.91%, 0.55%
and 1.36%, respectively, of each Fund's daily net assets until March 15, 1999.
Effective March 15, 1999, the ordinary operating expenses for all Funds are
limited to the average total expense ratio as reported by Lipper Analytical
Services, Inc. for each Fund's respective investment objective, which is sub-
ject to change on a monthly basis. At April 30, 1999, the ordinary operating
expenses of the TCW Galileo Aggressive Growth Equities Fund, the TCW Galileo
Convertible Securities Fund, the TCW Galileo Earnings Momentum Fund, the TCW
Galileo Large Cap Growth Fund, the TCW Large Cap Value Fund, the TCW Select Eq-
uities Fund, the TCW Small Cap Growth Fund and the TCW Galileo Value Opportuni-
ties Fund were limited to 1.40%, 1.51%, 1.50%, 1.46%, 1.46%, 1.46%, 1.50% and
1.46%, respectively, of each Fund's daily net assets.
Certain officers and/or directors of the Company are officers and/or directors
of the Adviser.
Note 5 -- Distribution Plan
The Company has a distribution plan pursuant to Rule 12b-1 under the 1940 Act
with respect to the Advisory Class shares of each Fund. Under the terms of the
Distribution Plan, each Fund compensates the Distributor at a rate equal to
0.25% of the average daily net assets of the Fund attributable to its Advisory
Class shares for distribution and related services. Distribution fees for the
period March 1, 1999 (Commencement of offering of Advisory Class shares) were
less than $1,000 for each Fund and as a result, are not disclosed in the State-
ments of Operations.
Note 6 -- Purchases and Sales of Securities
Investment transactions (excluding short-term investments) for the six months
ended April 30, 1999, were as follows:
<TABLE>
<CAPTION>
TCW Galileo TCW Galileo TCW Galileo
Aggressive Growth Convertible Earnings Momentum
Equities Fund Securities Fund Fund
----------------- ------------------- -----------------
<S> <C> <C> <C>
Purchases at Cost $35,200,533 $38,284,760 $20,832,852
=========== =========== ===========
Sales Proceeds $53,527,411 $30,334,858 $27,886,503
=========== =========== ===========
<CAPTION>
TCW Galileo TCW Galileo TCW Galileo
Large Cap Growth Large Cap Value Select Equities
Fund Fund Fund
----------------- ------------------- -----------------
<S> <C> <C> <C>
Purchases at Cost $13,716,875 $67,568,985 $64,973,115
=========== =========== ===========
Sales Proceeds $ 4,322,229 $ 9,274,582 $61,962,177
=========== =========== ===========
<CAPTION>
TCW Galileo TCW Galileo
Small Cap Growth Value Opportunities
Fund Fund
----------------- -------------------
<S> <C> <C> <C>
Purchases at Cost $62,286,284 $12,668,129
=========== ===========
Sales Proceeds $52,817,089 $17,826,413
=========== ===========
</TABLE>
43
<PAGE>
TCW GALILEO FUNDS, INC.
- --------------------------------------------------------------------------------
U.S. Equities
Notes to Financial Statements (Unaudited) (Continued) April 30, 1999
There were no purchases or sales of U.S. Government Securities for the six
months ended April 30, 1999.
Note 7 -- Capital Share Transactions
The Declaration of Trust permits the Trustees to issue an unlimited number of
shares of beneficial interest (without par value). Transaction in each Fund's
shares were as follows:
<TABLE>
<CAPTION>
TCW Galileo Aggressive Six Months Ended
Growth Equities Fund April 30, 1999 Year Ended
(Unaudited) October 31, 1998
-------------------------- --------------------------
Institutional Class Amount Amount
Shares (in thousands) Shares (in thousands)
---------- -------------- ---------- --------------
<S> <C> <C> <C> <C>
Shares Sold 1,283,166 $ 20,917 1,103,927 $ 12,278
Shares Issued Upon
Reinvestment
of Dividends 897,111 11,286 -- --
Shares Redeemed (2,206,459) (36,424) (8,075,267) (82,994)
---------- -------- ---------- --------
Net (Decrease) (26,182) $ (4,221) (6,971,340) $(70,716)
========== ======== ========== ========
<CAPTION>
TCW Galileo Aggressive Period Ended
Growth Equities Fund April 30, 1999(/1/)
(Unaudited)
--------------------------
Advisory Class Amount
Shares (in thousands)
---------- --------------
<S> <C> <C> <C> <C>
Shares Sold 55,603 $ 1,031
Shares Redeemed (8,443) (150)
---------- --------
Net Increase 47,160 $ 881
========== ========
(1) For the period March 1, 1999 (Commencement of offering of Advisory Class
shares) through April 30, 1999.
<CAPTION>
TCW Galileo Convertible Six Months Ended
Securities Fund April 30, 1999 Year Ended
Institutional Class (Unaudited) October 31, 1998
-------------------------- --------------------------
Amount Amount
Shares (in thousands) Shares (in thousands)
---------- -------------- ---------- --------------
<S> <C> <C> <C> <C>
Shares Sold 1,908,885 $ 20,777 703,651 $ 7,530
Shares Issued Upon
Reinvestment
of Dividends 219,802 2,326 259,441 2,773
Shares Redeemed (1,137,123) (13,191) (1,596,336) (17,755)
---------- -------- ---------- --------
Net Increase (Decrease) 991,564 $ 9,912 (633,244) $ (7,452)
========== ======== ========== ========
</TABLE>
44
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued) April 30, 1999
Note 7 -- Capital Share Transactions (continued)
<TABLE>
<CAPTION>
TCW Galileo Earnings Six Months Ended
Momentum Fund April 30, 1999 Year Ended
(Unaudited) October 31, 1998
------------------------- --------------------------
Institutional Class Amount Amount
Shares (in thousands) Shares (in thousands)
--------- -------------- ---------- --------------
<S> <C> <C> <C> <C>
Shares Sold 110,213 $ 1,249 106,293 $ 1,100
Shares Issued Upon
Reinvestment of
Dividends 132,981 1,471 517,955 6,240
Shares Redeemed (825,271) (9,408) (4,894,267) (62,654)
--------- ------- ---------- --------
Net (Decrease) (582,077) $(6,688) (4,270,019) $(55,314)
========= ======= ========== ========
<CAPTION>
TCW Galileo Large Cap June 3, 1998
Growth Fund Six Months Ended (Commencement of
Institutional Class April 30, 1999 Operations) through
(Unaudited) October 31, 1998
------------------------- --------------------------
Amount Amount
Shares (in thousands) Shares (in thousands)
--------- -------------- ---------- --------------
<S> <C> <C> <C> <C>
Shares Issued Upon
Exchange of Limited
Partnership
Interests -- $ -- 721,349 $ 7,213
Shares Sold 855,950 12,099 17,315 201
Shares Issued Upon
Reinvestment of
Dividends 36,640 439 -- --
Shares Redeemed (186,949) (2,800) (40,782) (408)
--------- ------- ---------- --------
Net Increase 705,641 $ 9,738 697,882 $ 7,006
========= ======= ========== ========
<CAPTION>
TCW Galileo Large Cap Period Ended
Growth Fund Advisory April 30, 1999(/1/)
Class (Unaudited)
-------------------------
Amount
Shares (in thousands)
--------- --------------
<S> <C> <C> <C> <C>
Shares Sold 751 $ 11
--------- -------
Net Increase 751 $ 11
========= =======
(1) For the period March 1, 1999 (Commencement of offering of Advisory Class
shares) through April 30, 1999.
<CAPTION>
TCW Galileo Large Cap June 3, 1998
Value Fund Six Months Ended (Commencement of
Institutional Class April 30, 1999 Operations) through
(Unaudited) October 31, 1998
------------------------- --------------------------
Amount Amount
Shares (in thousands) Shares (in thousands)
--------- -------------- ---------- --------------
<S> <C> <C> <C> <C>
Shares Issued Upon
Exchange of Limited
Partnership
Interests -- $ -- 815,447 $ 8,154
Shares Sold 5,715,426 64,255 224,593 2,280
Shares Issued Upon
Reinvestment
of Dividends 2,910 30 -- --
Shares Redeemed (324,489) (3,686) (298,415) (2,838)
--------- ------- ---------- --------
Net Increase 5,393,847 $60,599 741,625 $ 7,596
========= ======= ========== ========
</TABLE>
45
<PAGE>
TCW Galileo Funds, Inc.
- --------------------------------------------------------------------------------
U.S. Equities
Notes to Financial Statements (Unaudited) (Continued) April 30, 1999
Note 7 -- Capital Share Transactions (continued)
<TABLE>
<CAPTION>
TCW Galileo Large Cap Period Ended
Value Fund Advisory April 30, 1999 (/1/)
Class (Unaudited)
--------------------------
Amount
Shares (in thousands)
---------- --------------
<S> <C> <C> <C> <C>
Shares Sold 2,343 $ 29
---------- --------
Net Increase 2,343 $ 29
========== ========
(1) For the period March 1, 1999 (Commencement of offering of Advisory Class
shares) through April 30, 1999.
<CAPTION>
TCW Galileo Select Six Months Ended
Equities Fund April 30, 1999 Year Ended
Institutional Class (Unaudited) October 31, 1998
-------------------------- --------------------------
Amount Amount
Shares (in thousands) Shares (in thousands)
---------- -------------- ---------- --------------
<S> <C> <C> <C> <C>
Shares Sold 3,631,864 $ 66,146 5,447,733 $ 85,536
Shares Issued Upon
Reinvestment
of Dividends 1,613,101 24,632 2,586,870 35,957
Shares Redeemed (2,973,507) (53,315) (5,179,280) (86,652)
---------- -------- ---------- --------
Net Increase 2,271,458 $ 37,463 2,855,323 $ 34,841
========== ======== ========== ========
<CAPTION>
TCW Galileo Select Period Ended
Equities Fund April 30, 1999 (/1/)
Advisory Class (Unaudited)
--------------------------
Amount
Shares (in thousands)
---------- --------------
<S> <C> <C> <C> <C>
Shares Sold 106,726 $ 2,030
Shares Redeemed (7,452) (145)
---------- --------
Net Increase 99,274 $ 1,885
========== ========
(1) For the period March 1, 1999 (Commencement of offering of Advisory Class
shares) through April 30, 1999.
<CAPTION>
TCW Galileo Small Cap Six Months Ended
Growth Fund April 30, 1999 Year Ended
Institutional Class (Unaudited) October 31, 1998
-------------------------- --------------------------
Amount Amount
Shares (in thousands) Shares (in thousands)
---------- -------------- ---------- --------------
<S> <C> <C> <C> <C>
Shares Sold 1,648,927 $ 35,071 2,331,443 $ 43,092
Shares Issued Upon
Reinvestment
of Dividends 100,650 1,878 522,318 8,940
Shares Redeemed (1,377,918) (30,156) (3,533,964) (64,632)
---------- -------- ---------- --------
Net Increase (Decrease) 371,659 $ 6,793 (680,203) $(12,600)
========== ======== ========== ========
</TABLE>
46
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued) April 30, 1999
Note 7 -- Capital Share Transactions (continued)
<TABLE>
<CAPTION>
TCW Galileo
Small Cap Period Ended
Growth Fund April 30, 1999 (/1/)
Advisory (Unaudited)
Class ---------------------
Amount
Shares (in thousands)
------ --------------
<S> <C> <C>
Shares Sold 1,714 $39
----- ---
Net Increase 1,714 $39
===== ===
</TABLE>
(1) For the period March 1, 1999 (Commencement of offering of Advisory Class
shares) through April 30, 1999.
<TABLE>
<CAPTION>
TCW Galileo Value November 3, 1997
Opportunities Fund Six Months Ended (Commencement of
Institutional Class April 30, 1999 Operations) through
(Unaudited) October 31, 1998
------------------------ --------------------------
Amount Amount
Shares (in thousands) Shares (in thousands)
-------- -------------- ---------- --------------
<S> <C> <C> <C> <C>
Shares Issued Upon
Exchange of Limited
Partnership Interests -- $ -- 2,356,794 $ 23,568
Shares Sold 55,188 551 2,590,325 26,409
Shares Issued Upon
Reinvestment of Dividends -- -- 3,727 37
Shares Redeemed (647,299) (6,510) (1,851,395) (17,965)
-------- ------- ---------- --------
Net Increase (Decrease) (592,111) $(5,959) 3,099,451 $ 32,049
======== ======= ========== ========
</TABLE>
Note 8 -- Restricted Securities
The following restricted securities held by the Funds as of April 30, 1999,
were valued both at the date of acquisition and April 30, 1999, in accordance
with the security valuation policy of the Funds described in Note 2. The re-
stricted securities include securities purchased in private placement transac-
tions without registration under the Securities Act of 1933, as well as Rule
144A securities. Such securities generally may be sold only in a privately ne-
gotiated transaction with a limited number of purchasers or in a public offer-
ing registered under the Securities Act of 1933. Each Fund will bear any costs
incurred in connection with the disposition of such securities.
47
<PAGE>
TCW Galileo Funds, Inc.
- --------------------------------------------------------------------------------
U.S. Equities
Notes to Financial Statements (Unaudited) (Continued) April 30, 1999
Note 8 -- Restricted Securities (continued)
TCW Galileo Convertible Securities Fund:
<TABLE>
<CAPTION>
Principal
Amount or
Number of Date of
Shares Investment Acquisition Cost
---------- ------------------------------------ ----------------- ----------
<C> <S> <C> <C>
$ 110,000 Action Performance Companies, Inc., 03/19/98 $ 110,000
(144A), 4.75%, due 04/01/05
140,000 Adaptec, Inc., (144A), 4.75%, due 01/28/97 140,000
02/01/04
230,000 Assisted Living Concepts, Inc., 04/07/98 225,449
(144A), 5.625%, due 05/01/03
420,000 Athena Neurosciences, Inc., 11/05/97 420,000
Exchangeable Elan Corp. PLC,
(Ireland), (144A), 4.75%, due
11/15/04
525,000 Bell Atlantic Financial Services, 08/06/98 535,305
Exchangeable Cable and Wireless Co.,
(144A), 4.25%, due 09/15/05
60,000 Centocor, Inc., (144A), 4.75%, due 02/13/98 60,000
02/15/05
1,985,000 Citrix System, Inc., (144A), 03/16/99-04/21/99 699,590
0%, due 03/22/19
255,000 Comverse Technology, Inc., (144A), 06/25/98 237,480
4.5%, due 07/01/05
390,000 Concentra Managed Care, Inc., 04/08/97 390,500
(144A), 4.5%, due 03/15/03
200,000 Costco Companies, Inc., (144A), 08/14/97 105,963
0%, due 08/19/17
2,505,000 Elan Corp. PLC, (Ireland), (144A), 12/08/98-04/29/99 1,446,227
0%, due 12/14/18
420,000 LSI Logic Corp., (144A), 03/16/99 420,000
4.25%, due 03/15/04
150,000 Magna International, Inc., (Canada), 02/10/98 150,000
(144A), 4.875%, due 02/15/05
495,000 Network Associates, Inc., (144A), 02/10/98 204,892
0%, due 02/13/18
315,000 Omnicare, Inc., (144A), 5%, due 12/04/97-04/27/99 315,000
12/01/07
190,000 QuadraMed Corp., (144A), 5.25%, due 04/28/98 190,000
05/01/05
290,000 Rite Aid Corp., (144A), 5.25%, due 04/23/96 290,000
09/15/02
415,000 Security Capital Group, Inc., 11/02/98 333,262
(144A),
2.5%, due 05/22/03
1,585,000 Sepracor, Inc., (144A), 7%, due 02/05/98 1,687,735
12/15/05
2,635,000 Solectron Corp., (144A), 0%, due 01/21/99 1,232,316
01/27/19
640,000 Total Renal Care Holdings, Inc., 03/04/99-03/12/99 438,701
(144A),
7%, due 05/15/09
180,000 Tower Automotive, Inc., (144A), 5%, 07/24/97 180,000
due 08/01/04
6,100 Union Pacific Capital Trust, (144A), 03/27/98 309,500
$3.13 Convertible Preferred
11,400 United Rentals, Inc., (144A), $3.25 07/30/98-04/16/99 434,950
Convertible Preferred
</TABLE>
The total value of restricted securities is $10,631,748, which represents 25.1%
of net assets of the Fund at April 30, 1999.
48
<PAGE>
TCW Galileo Aggressive Growth Equities Fund
- --------------------------------------------------------------------------------
Institutional Class
Financial Highlights
<TABLE>
<CAPTION>
June 3, 1996
(Commencement
of
Six Months Year Ended Operations)
Ended October 31, through
April 30, 1999 ------------------ October 31,
(Unaudited) 1998 1997 1996
-------------- ------- -------- -------------
<S> <C> <C> <C> <C>
Net Asset Value per
Share,
Beginning of Period $ 11.35 $ 9.40 $ 9.19 $ 10.00
-------- ------- -------- -------
Income (Loss) from
Investment Operations:
Net Investment (Loss) (0.07) (0.11) (0.08) (0.03)
Net Realized and
Unrealized Gain (Loss)
on Investments 10.42 2.06 0.29 (0.78)
-------- ------- -------- -------
Total from Investment
Operations 10.35 1.95 0.21 (0.81)
-------- ------- -------- -------
Less Distributions:
Distributions from Net
Realized Gains (1.60) -- -- --
-------- ------- -------- -------
Net Asset Value per
Share, End of Period $ 20.10 $ 11.35 $ 9.40 $ 9.19
======== ======= ======== =======
Total Return 99.69% (/2/) 20.74% 2.28% (8.10)% (/1/)
Ratios/Supplemental
Data:
Net Assets, End of
Period (in thousands) $149,807 $84,904 $135,850 $92,430
Ratio of Expenses to
Average Net Assets 1.14% (/3/) 1.17% 1.12% 1.20% (/3/)(/4/)
Ratio of Net Investment
(Loss) to Average Net
Assets (0.85)% (/3/) (1.03)% (0.86)% (0.80)% (/3/)
Portfolio Turnover Rate 29.47% (/2/) 55.36% 50.45% 19.19% (/1/)
</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, 1999 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 Oc-
tober 31, 1996.
49
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Aggressive Growth Equities Fund
- --------------------------------------------------------------------------------
Advisory Class
Financial Highlights
<TABLE>
<CAPTION>
March 1, 1999
through
April 30, 1999
(Unaudited)
--------------
<S> <C>
Net Asset Value per Share, Beginning of Period $16.07
------
Income (Loss) from Investment Operations:
Net Investment (Loss) (0.01)
Net Realized and Unrealized Gain on Investments 4.03
------
Total from Investment Operations 4.02
------
Net Asset Value per Share, End of Period $20.09
======
Total Return 25.02% (/1/)
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 947
Ratio of Net Expenses to Average Net Assets 1.40% (/2/)(/3/)
Ratios of Net Investment (Loss) to Average Net Assets (0.80)% (/2/)
Portfolio Turnover Rate 29.47% (/1/)
</TABLE>
(1) For the period March 1, 1999 (Commencement of offering of Advisory Class
shares) through April 30, 1999 and not indicative of a full year's operat-
ing results.
(2) Annualized.
(3) The Investment Adviser had voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund as disclosed in Note 4 in the Notes to
the Financial Statements. Had such action not been taken, total annualized
operating expenses, as a percentage of average net assets, would have been
1.43% for the period ended April 30, 1999.
50
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Convertible Securities Fund
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
January 2, 1997
Six Months (Commencement of
Ended Operations)
April 30, 1999 Year Ended through
(Unaudited) October 31, 1998 October 31, 1997
-------------- ---------------- ----------------
<S> <C> <C> <C>
Net Asset Value per
Share,
Beginning of Period $ 10.53 $ 11.41 $ 10.00
------- ------- -------
Income (Loss) from
Investment Operations:
Net Investment Income 0.21 0.37 0.31
Net Realized and
Unrealized Gain (Loss)
on Investments 1.71 (0.08) 1.43
------- ------- -------
Total from Investment
Operations 1.92 0.29 1.74
------- ------- -------
Less Distributions:
Distributions from Net
Investment Income (0.16) (0.37) (0.33)
Distributions in Excess
of Net
Investment Income -- (0.05) --
Distributions from Net
Realized Gains (0.50) (0.75) --
------- ------- -------
Total Distributions (0.66) (1.17) (0.33)
------- ------- -------
Net Asset Value per
Share, End of Period $ 11.79 $ 10.53 $ 11.41
======= ======= =======
Total Return 19.00% (/2/) 2.69% 17.66% (/1/)
Ratios/Supplemental
Data:
Net Assets, End of
Period (in thousands) $42,346 $27,388 $36,890
Ratio of Expenses to
Average Net Assets 1.08% (/3/) 1.05% (/4/) 0.95% (/3/)(/4/)
Ratio of Net Investment
Income to Average Net
Assets 3.54% (/3/) 3.34% 3.54% (/3/)
Portfolio Turnover Rate 79.33% (/2/) 139.65% 141.43% (/1/)
</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, 1999 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 October 31, 1997 and 1.05% of net assets through March 15, 1999.
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 and
1.16% for the year ended October 31, 1998.
51
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Earnings Momentum Fund
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
November 1, 1994
(Commencement of
Six Months Operations)
Ended Year Ended October 31, through
April 30, 1999 ---------------------------- October 31,
(Unaudited) 1998 1997 1996 1995
-------------- ------- -------- ------- ----------------
<S> <C> <C> <C> <C> <C>
Net Asset Value per
Share, Beginning of
Period $ 10.56 $ 13.87 $ 13.01 $ 11.47 $ 10.00
------- ------- -------- ------- -------
Income (Loss) from
Investment Operations:
Net Investment (Loss) (0.26) (0.14) (0.12) (0.11) (0.03)
Net Realized and
Unrealized Gain (Loss)
on Investments 1.69 (2.20) 1.98 1.72 1.51
------- ------- -------- ------- -------
Total from Investment
Operations 1.43 (2.34) 1.86 1.61 1.48
------- ------- -------- ------- -------
Less Distributions:
Distributions in Excess
of Net Investment
Income -- -- -- -- (0.01)
Distributions from Net
Realized Gains (0.54) (0.97) (1.00) (0.07) --
------- ------- -------- ------- -------
Total Distributions (0.54) (0.97) (1.00) (0.07) (0.01)
------- ------- -------- ------- -------
Net Asset Value per
Share,
End of Period $ 11.45 $ 10.56 $ 13.87 $ 13.01 $ 11.47
======= ======= ======== ======= =======
Total Return 13.77% (/1/) (17.76)% 15.53% 13.99% 14.76%
Ratios/Supplemental
Data:
Net Assets, End of
Period (in thousands) $28,352 $32,299 $101,667 $77,994 $63,411
Ratio of Expenses to
Average Net Assets 1.43% (/2/) 1.27% 1.17% 1.13% 1.14% (/3/)
Ratio of Net Investment
(Loss) to Average Net
Assets (1.29)% (/2/) (1.10)% (0.96)% (0.82)% (0.28)%
Portfolio Turnover Rate 64.50% (/1/) 51.25% 93.06% 99.03% 85.91%
</TABLE>
(1) For the six months ended April 30, 1999 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.
52
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Large Cap Growth Fund
- --------------------------------------------------------------------------------
Institutional Class
Financial Highlights
<TABLE>
<CAPTION>
June 3, 1998
Six Months (Commencement of
Ended Operations)
April 30, 1999 through
(Unaudited) October 31, 1998
-------------- ----------------
<S> <C> <C>
Net Asset Value per Share,
Beginning of Period $ 11.18 $10.00
------- ------
Income (Loss) from Investment
Operations:
Net Investment (Loss) (0.01) --
Net Realized and Unrealized
Gain on Investments 4.12 1.18
------- ------
Total from Investment
Operations 4.11 1.18
------- ------
Less Distributions:
Distributions from Net
Realized Gains (0.51) --
------- ------
Net Asset Value per Share, End
of Period $ 14.78 $11.18
======= ======
Total Return 37.81% (/2/) 11.80% (/1/)
Ratios/Supplemental Data:
Net Assets, End of Period (in
thousands) $20,744 $7,800
Ratio of Expenses to Average
Net Assets 1.10% (/3/)(/4/) 0.91% (/3/)(/4/)
Ratio of Net Investment (Loss)
to Average Net Assets (0.34)% (/3/) (0.07)% (/3/)
Portfolio Turnover Rate 31.35% (/2/) 50.76% (/1/)
</TABLE>
(1) For the period June 3, 1998 (Commencement of operations) through October
31, 1998 and not indicative of a full year's operating results.
(2) For the six months ended April 30, 1999 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 as disclosed in Note 4 of
the Notes to the Financial Statements. Had such actions not been taken, to-
tal annualized operating expenses, as a percentage of average net assets,
would have been 1.35% for the six months ended April 30, 1999 and 2.53% for
the period June 3, 1998 (Commencement of operations) through October 31,
1998.
53
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Large Cap Growth Fund
- --------------------------------------------------------------------------------
Advisory Class
Financial Highlights
<TABLE>
<CAPTION>
March 1, 1999
through
April 30, 1999
(Unaudited)
--------------
<S> <C>
Net Asset Value per Share, Beginning of Period $13.70
------
Income (Loss) from Investment Operations:
Net Investment (Loss) (0.01)
Net Realized and Unrealized Gain on Investments 1.09
------
Total from Investment Operations 1.08
------
Net Asset Value per Share, End of Period $14.78
======
Total Return 7.88% (/1/)
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 11
Ratio of Net Expenses to Average Net Assets 1.32% (/2/)(/3/)
Ratio of Net Investment (Loss) to Average Net Assets (0.82)% (/2/)
Portfolio Turnover Rate 31.35% (/1/)
</TABLE>
(1) For the period March 1, 1999 (Commencement of offering of Advisory Class
shares) through April 30, 1999 and not indicative of a full year's operat-
ing results.
(2) Annualized.
(3) The Investment Adviser had voluntarily agreed to reduce its fee, or pay the
operating expenses of the Fund as disclosed in Note 4 of the Notes to the
Financial Statements. Had such action not been taken, total annualized op-
erating expenses, as a percentage of average net assets, would have been
1.43% for the period ended April 30, 1999.
54
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Large Cap Value Fund
- --------------------------------------------------------------------------------
Institutional Class
Financial Highlights
<TABLE>
<CAPTION>
June 3, 1998
Six Months (Commencement of
Ended Operations)
April 30, 1999 through
(Unaudited) October 31, 1998
-------------- ----------------
<S> <C> <C>
Net Asset Value per Share,
Beginning of Period $ 10.12 $10.00
------- ------
Income from Investment
Operations:
Net Investment Income 0.02 0.04
Net Realized and Unrealized
Gain on Investments 2.44 0.08
------- ------
Total from Investment
Operations 2.46 0.12
------- ------
Less Distributions:
Distributions from Net
Investment Income (0.05) --
------- ------
Net Asset Value per Share, End
of Period $ 12.53 $10.12
======= ======
Total Return 24.35% (/2/) 1.20% (/1/)
Ratios/Supplemental Data:
Net Assets, End of Period (in
thousands) $76,873 $7,505
Ratio of Net Expenses to
Average Net Assets 0.83% (/3/)(/4/) 0.55% (/3/)(/4/)
Ratio of Net Investment Income
to Average Net Assets 0.75% (/3/) 1.04% (/3/)
Portfolio Turnover Rate 25.93% (/2/) 83.84% (/1/)
</TABLE>
(1) For the period June 3, 1998 (Commencement of operations) through October
31, 1998 and not indicative of a full year's operating results.
(2) For the six months ended April 30, 1999 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 as disclosed in Note 4 of
the Notes to the Financial Statements. Had such actions not been taken, to-
tal annualized operating expenses, as a percentage of average net assets,
would have been 0.91% for the six months ended April 30, 1999 and 2.48% for
the period June 3, 1998 (Commencement of operations) through October 31,
1998.
55
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Large Cap Value Fund
- --------------------------------------------------------------------------------
Advisory Class
Financial Highlights
<TABLE>
<CAPTION>
March 1, 1999
through
April 30, 1999
(Unaudited)
--------------
<S> <C>
Net Asset Value per Share, Beginning of Period $11.07
------
Income from Investment Operations:
Net Realized and Unrealized Gain on Investments 1.45
------
Net Asset Value per Share, End of Period $12.52
======
Total Return 13.10% (/1/)
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 30
Ratio of Net Expenses to Average Net Assets 0.97% (/2/)(/3/)
Ratio of Net Investment Income to Average Net Assets 0.54% (/3/)
Portfolio Turnover Rate 25.93% (/1/)
</TABLE>
(1) For the period March 1, 1999 (Commencement of offering of Advisory Class
shares) through April 30, 1999 and not indicative of a full year's operat-
ing results.
(2) Annualized.
(3) The Investment Adviser had voluntarily agreed to reduce its fee, or pay the
operating expenses of the Fund as disclosed in Note 4 of the Notes of the
Financial Statements. Had such action not been taken, total annualized op-
erating expenses, as a percentage of average net assets, would have been
1.07% for the period ended April 30, 1999.
56
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Select Equities Fund
- --------------------------------------------------------------------------------
Institutional Class
Financial Highlights
<TABLE>
<CAPTION>
Six Months Ten Months
Ended Year Ended October 31, Ended
April 30, 1999 --------------------------------------- October 31,
(Unaudited) 1998 1997 1996 1995 1994
-------------- -------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value per
Share, Beginning of
Period $ 16.89 $ 19.29 $ 15.93 $ 13.69 $ 11.57 $ 11.81
-------- -------- -------- -------- -------- --------
Income (Loss) from
Investment Operations:
Net Investment Income
(Loss) (0.03) (0.02) 0.01 0.11 0.06 0.04
Net Realized and
Unrealized Gain (Loss)
on Investments 4.47 3.38 3.57 2.18 2.11 (0.28)
-------- -------- -------- -------- -------- --------
Total from Investment
Operations 4.44 3.36 3.58 2.29 2.17 (0.24)
-------- -------- -------- -------- -------- --------
Less Distributions:
Distributions from Net
Investment Income -- -- (0.02) (0.05) (0.05) --
Distributions from Net
Realized Gains (2.45) (5.76) (0.20) -- -- --
-------- -------- -------- -------- -------- --------
Total Distributions (2.45) (5.76) (0.22) (0.05) (0.05) --
-------- -------- -------- -------- -------- --------
Net Asset Value per
Share, End of Period $ 18.88 $ 16.89 $ 19.29 $ 15.93 $ 13.69 $ 11.57
======== ======== ======== ======== ======== ========
Total Return 29.69% (/2/) 23.83% 22.68% 16.79% 18.85% (2.03)% (/1/)
Ratios/Supplemental
Data:
Net Assets, End of
Period (in thousands) $249,562 $184,865 $156,113 $231,302 $197,721 $136,122
Ratio of Expenses to
Average Net Assets 0.85% (/3/) 0.86% 0.83% 0.82% 0.85% 0.91% (/3/)
Ratio of Net Investment
Income (Loss) to
Average Net Assets (0.44)% (/3/) (0.14)% 0.08% 0.18% 0.48% 0.44% (/3/)
Portfolio Turnover Rate 28.86% (/2/) 103.51% 39.22% 39.58% 53.77% 23.53% (/1/)
</TABLE>
(1) For the ten months ended October 31, 1994 and not indicative of a full
year's operating results.
(2) For the six months ended April 30, 1999 and not indicative of a full year's
operating results.
(3) Annualized.
57
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Select Equities Fund
- --------------------------------------------------------------------------------
Advisory Class
Financial Highlights
<TABLE>
<CAPTION>
March 1, 1999
through
April 30, 1999
(Unaudited)
--------------
<S> <C>
Net Asset Value per Share, Beginning of Period $17.62
------
Income (Loss) from Investment Operations:
Net Investment (Loss) (0.01)
Net Realized and Unrealized Gain on Investments 1.27
------
Total from Investment Operations 1.26
------
Net Asset Value per Share, End of Period $18.88
======
Total Return 7.15% (/1/)
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $1,874
Ratio of Expenses to Average Net Assets 1.14% (/2/)
Ratio of Net Investment (Loss) to Average Net Assets (0.74)% (/2/)
Portfolio Turnover Rate 28.86% (/1/)
</TABLE>
(1) For the period March 1, 1999 (Commencement of offering of Advisory Class
shares) through April 30, 1999 and not indicative of a full year's operat-
ing results.
(2) Annualized.
58
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Small Cap Growth Fund
- --------------------------------------------------------------------------------
Institutional Class
Financial Highlights
<TABLE>
<CAPTION>
March 1, 1994
(Commencement
of
Six Months Operations)
Ended Year Ended October 31, through
April 30, 1999 ---------------------------------------- October 31,
(Unaudited) 1998 1997 1996 1995 1994
-------------- -------- -------- -------- ------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value
per Share,
Beginning of Period $ 16.48 $ 18.74 $ 17.17 $ 13.53 $ 9.39 $ 10.00
-------- -------- -------- -------- ------- -------
Income (Loss) from
Investment Operations:
Net Investment (Loss) (0.06) (0.18) (0.15) (0.13) (0.07) (0.04)
Net Realized and
Unrealized Gain (Loss)
on Investments 6.90 (0.90) 1.91 4.08 4.72 (0.57)
-------- -------- -------- -------- ------- -------
Total from Investment
Operations 6.84 (1.08) 1.76 3.95 4.65 (0.61)
-------- -------- -------- -------- ------- -------
Less Distributions:
Distributions from Net
Investment Income -- -- -- (0.01) -- --
Distributions from Net
Realized Gains (0.27) (1.18) (0.19) (0.30) (0.51) --
-------- -------- -------- -------- ------- -------
Total Distributions (0.27) (1.18) (0.19) (0.31) (0.51) --
-------- -------- -------- -------- ------- -------
Net Asset Value per
Share, End of Period $ 23.05 $ 16.48 $ 18.74 $ 17.17 $ 13.53 $ 9.39
======== ======== ======== ======== ======= =======
Total Return 41.87% (/2/) (5.98)% 10.38% 29.73% 49.89% (6.10)% (/1/)
Ratios/Supplemental Data:
Net Assets, End of
Period (in thousands) $170,895 $116,050 $144,756 $132,444 $66,056 $51,089
Ratio of Expenses to
Average Net Assets 1.14% (/3/) 1.13% 1.14% 1.14% 1.21% (/4/) 1.09% (/3/)(/4/)
Ratio of Net Investment
(Loss) to Average
Net Assets (0.92)% (/3/) (0.95)% (0.89)% (0.76)% (0.61)% (0.59)% (/3/)
Portfolio Turnover Rate 37.41% (/2/) 63.67% 60.52% 45.43% 89.73% 88.63% (/1/)
</TABLE>
(1) For the period March 1, 1994 (Commencement of operations) through October
31, 1994 and not indicative of a full year's operating results.
(2) For the six months ended April 30, 1999 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.
59
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Small Cap Growth Fund
- --------------------------------------------------------------------------------
Advisory Class
Financial Highlights
<TABLE>
<CAPTION>
March 1, 1999
through
April 30, 1999
(Unaudited)
--------------
<S> <C>
Net Asset Value per Share, Beginning of Period $20.62
------
Income (Loss) from Investment Operations:
Net Investment (Loss) (0.01)
Net Realized and Unrealized Gain on Investments 2.42
------
Total from Investment Operations 2.41
------
Net Asset Value per Share, End of Period $23.03
======
Total Return 11.69% (/1/)
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 39
Ratio of Net Expenses to Average Net Assets 1.42% (/2/)(/3/)
Ratios of Net Investment (Loss) to Average Net Assets (1.18)% (/2/)
Portfolio Turnover Rate 37.41% (/1/)
</TABLE>
(1) For the period March 1, 1999 (Commencement of offering of Advisory Class
shares) through April 30, 1999 and not indicative of a full year's operat-
ing results.
(2) Annualized.
(3) The Investment Adviser had voluntarily agreed to reduce its fee, or pay the
operating expenses of the Fund as disclosed in Note 4 of the Notes to the
Financial Statements. Had such action not been taken, total annualized op-
erating expenses, as a percentage of net assets, would have been 1.53% for
the period ended April 30, 1999.
60
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Value Opportunities Fund
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
November 3, 1997
Six Months (Commencement of
Ended Operations)
April 30, 1999 through
(Unaudited) October 31, 1998
-------------- ----------------
<S> <C> <C>
Net Asset Value per Share, Beginning
of Period $ 9.24 $ 10.00
------- -------
Income (Loss) from Investment
Operations:
Net Investment (Loss) (0.01) --
Net Realized and Unrealized Gain
(Loss) on Investments 1.65 (0.75)
------- -------
Total from Investment Operations 1.64 (0.75)
------- -------
Less Distributions:
Distributions in Excess of Net
Investment Income -- (0.01)
------- -------
Net Asset Value per Share, End of
Period $ 10.88 $ 9.24
======= =======
Total Return 17.75% (/2/) (7.49)% (/1/)
Ratios/Supplemental Data:
Net Assets, End of Period (in
thousands) $27,259 $28,634
Ratio of Expenses to Average Net
Assets 1.26% (/3/) 1.16% (/3/)
Ratio of Net Investment Income (Loss)
to Average Net Assets (0.15)% (/3/) 0.05% (/3/)
Portfolio Turnover Rate 47.31% (/2/) 97.30% (/1/)
</TABLE>
(1) For the period November 3, 1997 (Commencement of operations) through Octo-
ber 31, 1998 and not indicative of a full year's operating results.
(2) For the six months ended April 30, 1999 and not indicative of a full year's
operating results.
(3) Annualized.
61
