<PAGE>
TCW Galileo Funds, Inc.
- --------------------------------------------------------------------------------
Table of Contents April 30, 1999
International
<TABLE>
<S> <C>
Letter To Shareholders...................................................... 1
Performance Summary......................................................... 2
Schedules of Investments:
TCW Galileo Asia Pacific Equities Fund.................................... 3
TCW Galileo Emerging Markets Equities Fund................................ 6
TCW Galileo Emerging Markets Income Fund.................................. 11
TCW Galileo European Equities Fund........................................ 14
TCW Galileo International Equities Fund................................... 17
TCW Galileo Japanese Equities Fund........................................ 18
TCW Galileo Latin America Equities Fund................................... 21
Statements of Assets and Liabilities........................................ 24
Statements of Operations.................................................... 26
Statements of Changes in Net Assets......................................... 28
Notes to Financial Statements............................................... 32
Financial Highlights........................................................ 43
</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
categories; 1) U.S. Equities Funds, 2) U.S. Fixed Income Funds, and 3)
International Funds to provide more focused information to our shareholders.
TCW is committed to providing you with superior professional investment
management 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 Galileo 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.
- --------------------------------------------------------------------------------
Performance Summary (Unaudited) April 30, 1999
International
<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 Asia Pacific
Equities Fund $ 6.95 26.98 % (0.20)% 7.71 % (1) 04/01/93 (2)
TCW Galileo Emerging
Markets Equities Fund $ 6.84 (20.00)% (4.49)% 0.93 % (1) 06/01/93 (2)
TCW Galileo Emerging
Markets Income Fund $ 7.86 (17.57)% N/A 2.55 % (1) 09/04/96 (2)
TCW Galileo European
Equities Fund --
Institutional Class $12.64 1.87 % N/A 19.02 % 11/01/97
TCW Galileo European
Equities Fund --
Advisory Class $12.63 N/A N/A 2.10 % (3) 03/01/99
TCW Galileo
International Equities
Fund $12.60 8.07 % 6.44 % (1) 8.77 % (1) 12/01/93 (2)
TCW Galileo Japanese
Equities Fund $11.98 39.63 % N/A (6.87)% (1) 05/01/95 (2)
TCW Galileo Latin
America Equities Fund $10.21 (22.77)% (1.80)% 7.91 % (1) 07/01/91 (2)
</TABLE>
(1) Performance data includes the performance of the predecessor limited part-
nership for periods before the TCW Galileo Funds' registration became ef-
fective. 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 limted 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 Asia Pacific Equities Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares or
Warrants Common Stock Value
- --------- ------------ ----------
<S> <C> <C>
China (Cost: $221,998) (2.5% of Net Assets)
1,532,000 Zhenhai Refining & Chemical Corporation $ 336,013
----------
Hong Kong (35.8%)
72,000 Cheung Kong Holdings, Limited 654,892
39,000 Dao Heng Bank Group, Limited 158,498
326,800 Hong Kong Telecommunications 879,096
16,457 HSBC Holdings Public Company, Limited 611,492
132,000 Hutchison Whampoa, Limited 1,183,605
600,000 Midlands Realty Holdings, Limited 123,082
69,000 Sun Hung Kai Properties, Limited 605,349
230,000 Wharf Holdings, Limited 563,806
----------
Total Hong Kong (Cost: $3,762,729) 4,779,820
----------
India (2.3%)
4,800 Infosystems Technologies Limited (ADR) 198,300*
8,800 Videsh Sanchar Nigam,Limited (GDR) 105,600
----------
Total India (Cost: $285,784) 303,900
----------
Philippines (3.5%)
247,000 Jollibee Foods Corporation, Warrants, expire 03/25/03 148,912*
33,900 Manila Electric Company 128,847
5,870 Philippine Long Distance Telephone Company 189,256
----------
Total Philippines (Cost: $346,212) 467,015
----------
Singapore (14.1%)
55,500 City Developments, Limited 369,825
67,000 Natsteel Electronics, Limited 225,203
84,000 Oversea-Chinese Banking Corporation, Limited 787,594*
15,268 Singapore Press Holdings, Limited 225,086
117,397 Singapore Technologies Engineering, Limited 125,995
84,000 Singapore Telecommunications, Limited 155,537
----------
Total Singapore (Cost: $1,269,018) 1,889,240
----------
South Korea (22.0%)
17,000 Housing & Commercial Bank, Korea 400,336*
15,200 Korea Electric Power Corporation 437,208
6,300 Korea Telecom Corporation 325,120*
19,498 L.G. Chemical, Limited 336,172
25,000 Mirae Company 118,797
2,310 Pohang Iron & Steel Company, Limited 194,941
8,165 Samsung Display Devices Company 418,894
9,107 Samsung Electronics Company, Limited 700,067
----------
Total South Korea (Cost: $2,036,463) 2,931,535
----------
</TABLE>
3
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Asia Pacific Equities Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares Value
- --------- -----------
<S> <C> <C>
Taiwan (14.4%)
115 Asustek Computer, Inc. (144A) (GDR) $ 1,555**
43,334 Asustek Computer, Inc. (GDR) 586,092*
12,307 Siliconware Precision Industries Company (GDR) 136,915*
18,068 Synnex Tech International (GDR) 354,585*
136,405 Taiwan Semiconductor Manufacturing Company
(Local Shares) 460,237**
6,590 Winbond Electronics Corporation (144A) (GDR) 67,877**
31,000 Winbond Electronics Corporation (GDR) 319,300*
-----------
Total Taiwan (Cost: $1,601,305) 1,926,561
-----------
Thailand (4.4%)
14,900 Advanced Information Services Public Company, Foreign 158,109*
14,486 Advanced Semiconducter Engineering, Inc. (GDR) 229,965*
68,100 Bangkok Bank Company, Limited, Foreign 203,585*
-----------
Total Thailand (Cost: $410,986) 591,659
-----------
Total Investments (Cost: $9,934,495) (99.1%) 13,225,743
Excess of Other Assets over Liabilities (0.9%) 127,555
-----------
Net Assets (100.0%) $13,353,298
===========
</TABLE>
Notes to the Schedule of Investments:
* Non-income producing.
** Restricted Security (Note 8).
4
See accompanying notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
Investments by Industry (Unaudited) April 30, 1999
<TABLE>
<CAPTION>
Percentage of
Industry Net Assets
- -------------------------------- -------------
<S> <C>
Aerospace/Defense 0.9%
Banking 16.3
Chemicals 2.5
Commercial Services 8.9
Computer Software & Services 9.4
Electronics 19.2
Energy & Oil Services 2.5
Media--Broadcasting & Publishing 1.7
Metals 1.5
Real Estate 17.3
Restaurants 1.1
Telecommunications 13.6
Utilities 4.2
----
Total 99.1%
====
</TABLE>
5
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Emerging Markets Equities Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares Common Stock Value
- --------- ------------ ---------
<S> <C> <C>
Argentina (4.0% of Net Assets)
1,780 Banco de Galicia y Buenos Aires, S.A. (ADR) $ 41,051
28,600 Perez Companc, S.A., Series B 177,677*
2,180 Telecom Argentina STET--France Telecom, S.A., Series B (ADR) 75,210
2,980 Telefonica de Argentina, Sociedad Anonima, Series B (ADR) 111,378
2,675 Transportadora de Gas del Sur, S.A. (ADR) 25,580
9,031 Yacimientos Petroliferos Fiscales Sociedad del Estado, Series D (ADR) 379,302
---------
Total Argentina (Cost: $659,801) 810,198
---------
Asia (Cost: $275,002) (0.0%)
27,500 Central Asian Investment Company, Limited --* **
---------
Brazil (2.7%)
3,725 Companhia Energetica de Minas Gerais (CEMIG), S.A. (ADR) 86,606
5,360,000 Gerdau, S.A. 82,238
4,240 Telebras (ADR) 386,105*
4,820 Telecomunicacoes Brasileiras (ADR) 377*
---------
Total Brazil (Cost: $462,689) 555,326
---------
Chile (2.8%)
7,347 Compania de Telecomunicaciones de Chile, S.A., Series A (ADR) 194,236
2,600 Distribucion y Servicio, S.A. (ADR) 39,325
320 Enersis, S.A. (ADR) 6,140
7,190 Laboratorio Chile, S.A. (ADR) 128,521
1,600 Quimica Y Minera Chile (ADR) 59,000
4,340 Vina Concha y Toro, S.A. (ADR) 140,779
---------
Total Chile (Cost: $506,527) 568,001
---------
China (Cost: $39,029) (0.3%)
312,000 Zhenhai Refining & Chemical Corporation 68,431
---------
Colombia (0.7%)
4,950 BanColombia, S.A. (ADR) 33,413
18,173 Bavaria CB 99,470
---------
Total Colombia (Cost: $197,267) 132,883
---------
Greece (6.5%)
5,240 Credit Bank 374,480
1,500 Ergo Bank, S.A. 131,099
7,300 Hellenic Petroleum, S.A. 58,928*
17,096 Hellenic Telecommunication Organization, S.A. 397,078
2,000 Intracom, S.A. 132,439
1,000 National Bank of Greece, S.A. 68,234
2,700 Panafon, S.A. 72,008*
970 Titan Cement Company, S.A. 74,994
---------
Total Greece (Cost: $1,256,344) 1,309,260
---------
</TABLE>
6
See accompanying notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares Value
- --------- ---------
<S> <C> <C>
Hong Kong (Cost: $105,600) (0.8%)
309,000 Legend Holdings, Limited $ 159,465
---------
Hungary (2.6%)
47,600 Magyer Taukoz lesi Rt. 265,383
4,783 Mol Magyar Olaj-es Gazipari Rt. (144A) (GDR) 107,618**
3,600 OTP Bank Rt. 151,673
---------
Total Hungary (Cost: $484,747) 524,674
---------
India (2.5%)
8,800 Infosystems Technologies Limited (ADR) 363,550*
12,000 Reliance Industries, Limited (GDR) 90,000
4,000 Videsh Sanchar Nigam, Limited (GDR) 48,000
---------
Total India (Cost: $420,084) 501,550
---------
Israel (4.2%)
46,300 Bank Hapoalim, Limited 110,299
27,500 Bank Leumi Le-Israel 46,974*
23,200 Bezeq Israel Telecommunications Corporation, Limited 89,888*
4,215 Blue Square Chain Investments & Properties, Limited 62,391*
2,670 ECI Telecommunications, Limited 98,456
10,305 Elbit Systems 144,873
28,800 Makhteshim-Agan Industries, Limited 66,329*
5,310 NICE-Systems, Limited (ADR) 152,663*
1,900 Teva Pharmaceutical Industries, Limited 86,925
---------
Total Israel (Cost: $922,215) 858,798
---------
Mexico (12.8%)
18,880 Apasco, S.A. de C.V. 111,023
202,700 Cifra, S.A. de C.V., Series C 378,368*
3,300 Coca Cola Femsa, S.A. (ADR) 68,269
6,250 Fomento Economico Mexicano, S.A. de C.V., Series B (ADR) 227,344
78,600 Grupo Industrial Bimbo, S.A. de C.V., Series A 168,768
14,200 Grupo Mexico, S.A., Series B 54,851
88,300 Grupo Modelo, S.A. de C.V., Series C 231,992
7,760 Grupo Televisa, S.A. de C.V. (ADR) 318,160*
65,500 Kimberly-Clark de Mexico, S.A. de C.V., Series A 254,424
31,600 Organizacion Soriana, S.A., Series B 141,839
8,355 Telefonos de Mexico, S.A. de C.V. (ADR) 632,890
---------
Total Mexico (Cost: $1,905,666) 2,587,928
---------
Peru (1.1%)
51,463 Cementos Lima S.A., Class T 71,712
9,894 Compania de Minas Buenaventura, S.A., Series B 77,088
4,220 Telefonica del Peru (ADR) 63,564
---------
Total Peru (Cost: $202,785) 212,364
---------
</TABLE>
7
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Emerging Markets Equities Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares or
Warrants Value
- --------- ----------
<S> <C> <C>
Philippines (2.3%)
106,000 Jollibee Foods Corporation, Warrants, expire 3/25/03 $ 63,906*
68,900 Manila Electric Company 261,874
4,070 Philippine Long Distance Telephone Company 131,222
----------
Total Philippines (Cost: $320,412) 457,002
----------
Poland (5.0%)
1,100 Bank Przemyslowo-Handlowy, S.A. 56,125
2,600 Bank Slaski, S.A. 117,555
28,000 Electrim Spolka Akcyjna, S.A. 332,407
1,580 International Trading and Investments Holdings, S.A. 355,500*
23,000 Telekomunikacja Polska, S.A. (144A) (GDR) 143,175* **
----------
Total Poland (Cost: $942,870) 1,004,762
----------
Russia (Cost: $93,752) (0.5%)
3,000 Lukoil Oil Company (ADR) 103,547
----------
South Africa (10.4%)
40,200 Allied Technologies, Limited 105,703
7,500 Anglo American Corporation of South Africa 387,017
7,751 Anglo American Platinum Corporation, Limited 141,390
5,072 Anglogold, Limited 238,388
766 Edgars Stores, Limited 3,902
40,000 Johnnies Industrial Corporation, Limited 257,354
19,820 Liberty Life Association of Africa, Limited 285,656
14,246 Nedcor, Limited 311,375
210,000 Sanlam, Limited, Foreign 203,098*
20,948 South African Breweries, Limited 175,045
----------
Total South Africa (Cost: $2,066,316) 2,108,928
----------
South Korea (13.6%)
19,500 Korea Electric Power Corporation 560,891
6,300 Korea Telecom Corporation 325,120*
13,404 L.G. Chemical, Limited 231,103
32,000 Mirae Company 152,061
6,800 Pohang Iron & Steel Company, Limited 573,853
6,450 Samsung Display Devices Company 330,908
7,590 Samsung Electronics Company, Limited 583,452
----------
Total South Korea (Cost: $1,945,572) 2,757,388
----------
Taiwan (12.0%)
45,433 Acer, Inc. (GDR) 329,389*
14,250 ASE Test Limited 299,250*
22,862 Asustek Computer, Inc. (GDR) 309,209*
116 Asustek Computer, Inc. (144A) (GDR) 1,569**
29,948 Siliconware Precision Industries Company (GDR) 333,172*
6,242 Synnex Tech International (GDR) 122,499*
3,100 Taiwan Semiconductor Manufacturing Company, Limited (ADR) 74,400
240,000 Taiwan Semiconductor Manufacturing Company
(Local Shares) 809,770**
</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>
Taiwan (continued)
10,600 Winbond Electronics Corporation (GDR) $ 109,180*
3,780 Winbond Electronics Corporation (144A) (GDR) 38,934* **
-----------
Total Taiwan (Cost: $2,130,362) 2,427,372
-----------
Thailand (1.3%)
7,398 Advanced Semiconducter Engineering, Inc. (GDR) 117,443*
48,500 Bangkok Bank Company, Limited, Foreign 144,991*
-----------
Total Thailand (Cost: $254,504) 262,434
-----------
Turkey (4.9%)
6,508,500 Akbank, T.A.S. 207,351
7,461,100 Akcansa Cimento 190,160
3,900,000 Arcelik, A.S. 154,068
158,000 Migros Turk, T.A.S. 217,453
4,376,000 Turkiye Is Bankasi, A.S., Series C 214,696
-----------
Total Turkey (Cost: $692,570) 983,728
-----------
Venezuela (Cost: $180,815) (1.1%)
514,000 Electricidad de Caracas 213,228*
-----------
Total Common Stock (Cost: $16,064,929) (92.1%) 18,607,267
-----------
Preferred Stock
---------------
Argentina (Cost: $48,299) (0.3%)
4,980 Quilmes Industrial, S.A. (ADR) 54,469
-----------
Brazil (7.1%)
1,570,000 Banco Estada de Sao Paulo S.A. 69,431
230,000 Banco Itau, S.A. 121,781
8,650,000 Cia Paranaense de Energia (COPEL), Series B 69,481
13,018 Compania Vale do Rio Doce 246,731
6,430,000 Embratel Participacoes, S.A. 104,652*
113,400 Itausa-Investimentos Itau, S.A. 61,408
1,246,000 Petroleo Brasileiro, S.A. (PETROBRAS) 201,669
13,370,000 Tele Centro Sul Participacoes, S.A. 144,801
4,920,000 Tele Norte Leste Paricipacoes, S.A. 85,848*
8,311,000 Telesp Participacoes, S.A. 209,025
5,010,000 Votorantim Celulose Papel, S.A. 126,878
-----------
Total Brazil (Cost: $1,205,556) 1,441,705
-----------
Total Preferred Stock (Cost: $1,253,855) (7.4%) 1,496,174
-----------
Total Investments (Cost: $17,318,784) (99.5%) 20,103,441
Excess Of Other Assets Over Liabilities (0.5%) 100,373
-----------
Net Assets (100.0%) $20,203,814
===========
</TABLE>
Notes to the Schedule of Investments:
* Non-income producing.
** Restricted Security (Note 8).
9
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Emerging Markets Equities Fund
- --------------------------------------------------------------------------------
Investments by Industry (Unaudited) April 30, 1999
<TABLE>
<CAPTION>
Percentage of
Industry Net Assets
- ------------------------------------------- -------------
<S> <C>
Aerospace/Defense 0.7%
Banking 10.9
Beverages, Food & Tobacco 5.8
Building Materials 2.2
Chemicals 2.2
Computer Software & Services 7.1
Conglomerates 0.3
Electronics 15.0
Energy & Oil Services 5.6
Entertainment & Leisure 3.0
Home Construction, Furnishings & Appliances 0.8
Insurance 2.4
Media--Broadcasting & Publishing 1.6
Metals 3.2
Mining 5.7
Paper & Forest Products 1.9
Pharmaceuticals 1.1
Restaurants 0.3
Retail 4.2
Telecommunications 19.6
Utilities 5.9
----
Total 99.5%
====
</TABLE>
10
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Emerging Markets Income Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) April 30, 1999
<TABLE>
<CAPTION>
Principal
Amount Fixed Income Securities Value
- ------------ ----------------------- -----------
<S> <C> <C>
Algeria (2.6% of Net Assets) (Cost: $1,780,900)
$ 3,128,963 The People's Democratic Republic of Algeria, U.B.A.F.
as Agent, Rescheduling Deed dated June 27, 1996,
Tranche 3, Variable Rate based on Six Month
LIBOR +0.8125%, due 2000-2010 $ 1,525,370
-----------
Argentina (Cost: $3,905,439) (6.9%)
4,000,000 Republic of Argentina, 11.75%, due 04/07/09 4,120,000
-----------
Brazil (17.5%)
1,185,000 Globopar Communications, (Reg. S), 10.625%, due 12/05/08 948,000*
435,000 Republic of Brazil, 9.375%, due 04/07/08 367,575
3,725,000 Republic of Brazil, 11.625%, due 04/15/04 3,594,998
8,670,000 Republic of Brazil Debt Conversion Bond,
Six Month LIBOR +0.875%, due 04/15/12 5,440,424
-----------
Total Brazil (Cost: $9,882,633) 10,350,997
-----------
Bulgaria (5.5%)
1,073,000 Republic of Bulgaria Discount Bonds, Series A,
Variable Rate based on Six Month Libor +0.8125%,
due 07/28/24 735,005
4,140,000 Republic of Bulgaria Front Loaded Interest Reduction
Bonds, Series A, 2.5%, due 07/28/12 2,509,875
-----------
Total Bulgaria (Cost: $3,007,184) 3,244,880
-----------
China (Cost: $314,175) (0.4%)
360,000 AES China Generating Company, 10.125%, due 12/15/06 241,200
-----------
Colombia (5.5%)
2,835,000 Republic of Colombia, 8.625%, due 04/01/08 2,572,763
725,000 Republic of Colombia, 9.75%, due 04/23/09 697,813
-----------
Total Colombia (Cost: $2,918,050) 3,270,576
-----------
Croatia (Cost: $1,119,188) (1.9%)
1,410,000 Croatia Government National, Series A, Variable Rate
based on Six Month LIBOR +0.8125%, due 07/31/10 1,099,800
-----------
Dominican Republic (Cost: $502,599) (0.9%)
600,000 Tricom S.A., 11.375%, due 09/01/04 552,000
-----------
</TABLE>
11
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Emerging Markets Income Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued) April 30, 1999
<TABLE>
<CAPTION>
Principal
Amount Value
- --------- ----------
<S> <C> <C>
Ecuador (3.0%)
$ 375,000 Republic of Ecuador, (Reg. S), Variable Rate
based on Six month LIBOR + 4.75%, due 04/25/04 $ 195,000*
3,085,000 Republic of Ecuador, Discount Bonds, Variable Rate
based on Six Month LIBOR + 0.8125%, due 02/28/25 1,573,350
----------
Total Ecuador (Cost: $1,965,825) 1,768,350
----------
Mexico (15.4%)
888,000 Cemex International Capital, LLC, (Reg. S), 9.66%,
due 11/29/49 841,380*
900,000 Grupo Minero Mexico, Series A, 8.25%, due 04/01/08 767,250
6,605,000 United Mexico States Global Bond, 11.375%, due 09/15/16 7,496,674
----------
Total Mexico (Cost: $8,069,923) 9,105,304
----------
Panama (Cost: $2,458,437) (4.2%)
2,630,000 Republic of Panama, 8.875%, due 09/30/27 2,487,980
----------
Peru (Cost: $1,726,333) (3.4%)
3,260,000 Republic of Peru Front Loaded Interest Reduction Bonds,
3.75%, due 03/07/17 2,008,975
----------
Philippines (2.7%)
720,000 Ce Casecnan Water & Energy, Series A, 11.45%,
due 11/15/05 637,200*
1,035,000 JG Summit Philippines, (Reg. S), 8.375%, due 03/17/04 936,675*
----------
Total Philippines (Cost: $1,343,168) 1,573,875
----------
Poland (Cost: $450,000) (0.8%)
500,000 Poland Communication, Series B, 9.875%, due 11/01/03 477,500
----------
Russia (7.7%)
9,467,000 Russia OFZ--Federal Loan Bond, Series 5023,
14%, due 09/12/01 19,048
640,000 Russian Federation, (144A), 11%, due 07/24/18 257,600*
530,000 Russian Federation, (Reg. S), 11%, due 07/24/18 213,325*
820,000 Russian Federation, (144A), 12.75%,
due 06/24/28, Par Put 06/24/08 360,800*
8,395,000 Russian Federation, (Reg. S), 12.75%,
due 06/24/28, Par Put 06/24/08 3,693,800*
----------
Total Russia (Cost: $4,296,549) 4,544,573
----------
Slovakia (Cost: $523,600) (0.9%)
550,000 Slovak Republic (Reg. S), 9.5%, due 05/28/03 536,250*
----------
South Korea (Cost: $2,359,106) (4.6%)
2,505,000 Republic of Korea, 8.875%, due 04/15/08 2,727,319
----------
Tunisia (Cost: $713,100) (1.4%)
905,000 Banque Cent de Tunisie, 8.25%, due 09/19/27 800,925
----------
</TABLE>
12
See accompanying notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued) April 30, 1999
Investments by Industry (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
---------- -----------
<S> <C> <C>
Turkey (2.7%)
$ 305,000 Cellco Finance N.V., (144A), 15%, due 08/01/05 $ 304,238*
440,000 Cellco Finance N.V., (Reg. S), 15%, due 08/01/05 438,900*
910,000 Republic of Turkey, (Reg. S), 9.875%, due 02/23/05 857,675*
-----------
Total Turkey (Cost: $1,472,563) 1,600,813
-----------
Venezuela (6.5%)
2,940,000 Republic of Venezuela, 13.625%, due 08/15/18 2,793,000
1,090,000 Venezuela PDVSA Finance, Limited (Reg. S), 9.375%, 1,085,749
due 02/15/10
-----------
Total Venezuela (Cost: $3,320,360) 3,878,749
-----------
Vietnam (Cost: $1,033,522) (1.9%)
2,895,000 Socialist Republic of Vietnam, Past Due Interest Bonds,
3.5%, due 03/14/16 1,100,100
-----------
Total Investments (Cost: $53,161,654) (96.1%) 57,015,536
Excess Of Other Assets Over Liabilities (3.9%) 2,309,325
-----------
Net Assets (100.0%) $59,324,861
===========
</TABLE>
Notes to the Schedule of Investments:
* Restricted Security (Note 8).
<TABLE>
<CAPTION>
Percentage of
Industry Net Assets
------------------ -------------
<S> <C>
Banking 5.2%
Building Materials 1.4
Government 82.1
Metals 1.3
Telecommunications 4.6
Utilities 1.5
----
Total 96.1%
====
</TABLE>
13
See accompanying notes to financial statements.
<PAGE>
TCW Galileo European Equities Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares or warrants Value
- --------------------- -----------
<S> <C> <C>
Common Stock
------------
Finland (Cost: $372,807) (2.1% of Net Assets)
19,300 Nokia, Series A $ 1,492,940
-----------
France (14.8%)
5,861 Accor, S.A. 1,547,426
30,500 Alstom 1,044,906
12,299 Axa, S.A. 1,590,409
7,400 Cap Gemini, S.A. 1,133,099
1,300 Galaries Lafayette 1,499,469
35,500 Lagardere Groupe 1,407,977
11,866 Valeo, S.A. 1,004,528
5,400 Vivendi 1,263,427*
4,341 Vivendi, Warrants, expire 05/02/01 9,601*
-----------
Total France (Cost: $8,623,428) 10,500,842
-----------
Germany (11.2%)
12,700 Bayerische Hypo-Und Vereinsbank AG 826,373
1,380 Bayerische Motoren Werke AG 987,320
15,320 Daimler-Chrysler AG 1,514,166*
30,000 Lufthansa AG 695,237
12,917 Mannesmann AG 1,697,661
3,200 SAP AG 1,031,110
17,400 Volkswagen AG 1,229,967
-----------
Total Germany (Cost: $7,993,252) 7,981,834
-----------
Great Britain (29.8%)
77,698 Abbey National, PLC 1,754,680
171,000 BP Amoco, PLC 3,242,882
136,000 British Aerospace, PLC 1,017,215
60,000 British Telecommunications, PLC 1,007,564
164,000 Canary Wharf Finance, PLC 1,007,693*
693,000 Centrica, PLC 1,407,297
87,000 Commercial Union, PLC 1,373,506
115,510 Computacenter, PLC 840,735
102,500 General Electric Company, PLC 1,085,677
127,992 Kingfisher, PLC 1,914,640
53,000 Orange, PLC 721,219*
73,975 Pearson, PLC 1,573,032
56,700 PizzaExpress, PLC 829,938
125,100 SmithKline Beecham, PLC 1,654,056
97,418 Vodafone Group, PLC 1,794,180
-----------
Total Great Britain (Cost: $17,013,803) 21,224,314
-----------
Ireland (3.5%)
77,723 Bank of Ireland 1,558,571
17,197 Elan Corp. PLC (ADR) 885,646*
-----------
Total Ireland (Cost: $2,499,340) 2,444,217
-----------
Italy (7.1%)
232,702 Eni, S.p.A. 1,532,138
567,597 Seat-Pagine Gialle, S.p.A 703,339
128,500 Telecom Italia, S.p.A 1,361,827
286,286 Unicredito Italiano, S.p.A. 1,458,391
-----------
Total Italy (Cost: $4,091,814) 5,055,695
-----------
Luxembourg (Cost: $1,189,849) (1.6%)
7,441 Societe Europeenne des Satellites 1,140,755*
-----------
</TABLE>
14
See accompanying notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares or Rights Value
- ---------------- -----------
<S> <C> <C>
Netherlands (11.7%)
20,522 Equant, N.V. $ 1,865,438*
26,467 Fortis (NL), N.V. 980,258
22,646 Getronics, N.V. 931,001
26,499 International Nerderlanden Groep 1,634,804
19,000 Philips Electronics, N.V. 1,638,623
25,000 United Pan-Europe Communications 1,294,972*
-----------
Total Netherlands (Cost: $6,869,970) 8,345,096
-----------
Portugal (2.3%)
40,633 Banco Portugues do Atlantico 654,857*
7,370 Telecel Comunicacoes Pessoais 961,917
-----------
Total Portugal (Cost: $2,230,471) 1,616,774
-----------
Spain (2.6%)
38,230 Telefonica de Espana, S.A. 1,794,179
38,230 Telefonica de Espana, S.A.; Rights, expire 05/20/99 35,600*
-----------
Total Spain (Cost: $1,131,525) 1,829,779
-----------
Sweden (Cost: $1,078,567) (1.5%)
31,000 Autoliv, Inc. 1,078,818
-----------
Switzerland (7.6%)
3,200 Adecco, S.A. 1,615,228
660 Novartis AG 967,365
1,150 Roche Holding AG 1,354,184
2,204 Zurich Allied AG 1,422,075
-----------
Total Switzerland (Cost: $5,131,470) 5,358,852
-----------
Total Common Stock (Cost: $58,226,296) (95.7%) 68,069,916
-----------
Preferred Stock
Germany (Cost: $872,742) (1.2%)
349 Porsche AG 864,190
-----------
Total Equity Securities (Cost: $59,099,038) (96.9%) 68,934,106
-----------
Principal
Amount Short-term Investments
---------- ----------------------
$4,037,058 BankBoston Corp., 5.068%, due 10/29/99 4,037,058**
3,000,000 Frank Russell Money Market Fund 3,000,000**
2,700,000 Merrimac Cash Fund--Premium Class 2,700,000**
-----------
Total Short-term Investments (Cost $9,737,058) (13.7%) 9,737,058
-----------
Total Investments (Cost: $68,836,096) (110.6%) 78,671,164
Liabilities in Excess of Other Assets (-10.6%) (7,509,811)
-----------
Net Assets (100.0%) $71,161,353
===========
</TABLE>
Notes to the Schedule of Investments:
*Non-income producing.
**Represents investments of security lending collateral (Note 2).
15
See accompanying notes to financial statements.
<PAGE>
TCW Galileo European Equities Fund
- --------------------------------------------------------------------------------
Investments by Industry (Unaudited) April 30, 1999
<TABLE>
<CAPTION>
Percentage of
Industry Net Assets
- ------------------------------------------------ -------------
<S> <C>
Aerospace/Defense 1.4%
Automotive 9.4
Banking 11.1
Commercial Services 6.0
Computer Software & Services 8.1
Electronics 3.8
Energy & Oil Services 4.6
Foods, Hotels & Restaurants 2.2
Insurance 7.5
Machinery 3.9
Media--Broadcasting & Publishing 6.8
Pharmaceuticals 6.8
Real Estate 1.4
Restaurants 1.2
Retail 7.0
Short-term Investments 13.7
Telecommunications 14.7
Transportation 1.0
-----
Total 110.6%
=====
</TABLE>
16
See accompanying notes to financial statements.
<PAGE>
TCW Galileo International Equities Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares TCW Galileo Funds (97.2% of Net Assets) Value
- --------- --------------------------------------------- -----------
<S> <C> <C>
294,763 TCW Galileo Asia Pacific Equities Fund $ 2,048,603
4,618,613 TCW Galileo European Equities Fund 58,379,274
1,419,226 TCW Galileo Japanese Equities Fund 17,002,322
84,493 TCW Galileo Latin America Equities Fund 863,524
1,609,467 TCW Galileo Money Market Fund 1,609,467
-----------
Total TCW Galileo Funds (Cost: $66,757,128)
(97.2%) 79,903,190
Excess Of Other Assets Over Liabilities (2.8%) 2,289,010
-----------
Net Assets (100.0%) $82,192,200
===========
</TABLE>
17
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Japanese Equities Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares or
Warrants Common Stock Value
- ---------- ------------ ---------
<S> <C> <C>
Japan (80.9% of Net Assets)
500 Aloka Company Limited, Warrants 1997, expire 09/25/01 $ 109,944*
29,000 Amano Corporation 223,600
100,000 Asahi Diamond Industrial Company, Limited 498,659
50,000 CMK Corporation 536,373
40,000 Daiwa House Industry Company, Limited 477,707
21,000 Fuji Photo Film Company 793,748
20,000 Futaba Corporation 844,787
99,000 Gun-Ei Chemical 199,128
111,000 Hitachi Cable, Limited 547,000
20,000 Hitachi Information Systems 254,609
21,000 Hitachi Maxell, Limited 424,154
70,000 Hitachi, Limited 511,566
27,000 INES Corporation 357,526
78,000 Japan Radio Company, Limited 379,149
150,000 JSR Corporation 923,986
32,000 Kansei Corporation 84,479
19,000 Kissel Pharmaceutical Company 405,255
122,000 Koito Manufacturing Company, Limited 568,488
77,300 Kyokuto Kaihatsu Kogyo Company, Limited 485,878
25,000 Matsushita Electric 475,612
40,000 Mitsubishi Estate Company, Limited 409,319
186,000 Mitsubishi Heavy Industries, Limited $ 815,270
185,000 Mitsui Marine and Fire Insurance Company, Limited 1,026,400
12,000 Murata Manufacturing Company, Limited 694,938
5,000 Nichiei Company, Limited 433,708*
100,000 Nippon Express Company 653,704
2,220 Nippon Telegraph & Telephone Corporation 2,418,707
100,000 Nippon Thompson Company, Limited 538,049
149,000 Nisshin Oil Mills, Limited 420,826
50,000 Nomura Securities Company, Limited 539,725
20,000 Noritz Corporation 235,836
260 NTT Mobile Communcation Network, Incorporated 1,525,310
115,000 Osaka Steel Company, Limited 501,173
17,000 Promise Company, Limited 968,823
14,600 Riso Kagaku Corporation 697,452
6,000 Rohm Company 724,103
54,000 Sagami Company, Limited 127,171
50,000 Sanwa Bank, Limited 561,515
14,400 Sanyo Shinpan Finance Company, Limited 652,900
26,000 Satori Electric Company, Limited 281,093
225,000 Senko Company, Limited 556,277
150,000 Shin Maywa Industries, Limited 380,908*
40 Shin Nippon Air Techologies Company, Limited 181
17,000 Sony Corporation 1,588,586
74,000 Takiron Company, Limited 218,304
34,000 Tasaki Shinju Company, Limited 139,625
750 Tasaki Shinju Company, Limited, Warrants, expire 09/10/99 985*
</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>
Japan (continued)
8,000 TDK Corporation $ 605,431
40,000 Tokyo Broadcasting System, Incorporated 520,617
7,200 Tokyo Cathode Laboratory Company 66,376
15,000 Tokyo Ohka Kogyo Company, Limited 416,108
117,000 Toppan Printing Company, Limited 1,408,079
172,000 Toshiba Plant Kensetsu Company 474,254
140,000 Yamaha Motor Company, Limited 1,127,556
50,000 Yamatake Corporation 474,774
105,000 Yodogawa Steel Works, Limited 442,633
-----------
Total Common Stock (Cost: $26,242,255) (80.9%) 31,748,364
-----------
<CAPTION>
Principal
Amount Convertible Securities
- ----------- ----------------------
<S> <C> <C>
Japan (17.4%)
JPY Catena Corporation, Convertible Bond,
35,000,000 0%, due 12/17/02 674,656
JPY Fuji Heavy Industries, Limited, Convertible Bond,
100,000,000 0.9%, due 09/30/03 1,324,170
JPY Minebea Company, Limited, Convertible Bond,
115,000,000 0.65%, due 03/31/05 1,191,250
JPY Nichiei Company, Limited, Convertible Bond,
100,000,000 1.75%, due 03/31/14 1,064,365
JPY Ricoh Company, Limited, Series 8, Convertible Bond,
70,000,000 1.5%, due 03/29/02 764,004
JPY Sumitomo Bakelite Company, Limited, Series 6,
75,000,000 Convertible Bond, 1.2%, due 09/29/06 817,130
JPY Sumitomo Bank International Finance N.V.,
90,000,000 Convertible Bond, 0.75%, due 05/31/01 990,362
-----------
Total Convertible Securities (Cost: $5,308,744)(17.4%) 6,825,937
-----------
Short-term Investments (2.9%)
----------------------------
$ 180,905 BankBoston Corp., 5.068%, due 10/29/99 180,905**
960,595 Merrimac Cash Fund -- Premium Class 960,595**
-----------
Total Short-term Investments (Cost: $1,141,500) 1,141,500
-----------
Total Investments (Cost: $32,692,499) (101.2%) 39,715,801
Liabilities in Excess of Other Assets ( - 1.2%) (485,582)
-----------
Net Assets (100.0%) $39,230,219
===========
</TABLE>
Notes to the Schedule of Investments:
JPY -- Japanese Yen.
* Non-income producing.
** Represents investments of security lending collateral (Note 2).
19
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Japanese Equities Fund
- --------------------------------------------------------------------------------
Investments by Industry (Unaudited) April 30, 1999
<TABLE>
<CAPTION>
Percentage of
Industry Net Assets
- ------------------------------------------- -------------
<S> <C>
Automotive 6.5%
Banking 10.6
Beverages, Food & Tobacco 1.1
Chemicals 5.5
Commercial Services 4.8
Computer Software & Services 7.9
Electrical Equipment 6.6
Electronics 11.9
Entertainment & Leisure 4.0
Home Construction, Furnishings & Appliances 5.9
Insurance 2.6
Machinery 8.7
Media--Broadcasting & Publishing 1.3
Metals 2.7
Pharmaceuticals 1.0
Real Estate 1.0
Retail 0.7
Short-term Investments 2.9
Telecommunications 12.4
Transportation 3.1
-----
Total 101.2%
=====
</TABLE>
20
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Latin America Equities Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares Common Stock Value
- --------- ------------ --------
<S> <C> <C>
Argentina (14.9% of Net Assets)
4,760 Astra Compania Argentina de Petroleo, S.A. $ 6,952*
2,102 Banco de Galicia y Buenos Aires, S.A. (ADR) 48,477
2,180 Banco Frances, S.A. (ADR) 56,135
5,000 Juan Minetti, S.A. 14,506
19,908 Perez Companc, S.A., Series B 123,678*
2,330 Telecom Argentina STET--France Telecom,
S.A., Series B (ADR) 80,385
2,050 Telefonica de Argentina, Sociedad Anonima,
Series B (ADR) 76,619
1,705 Transportadora de Gas del Sur, S.A. (ADR) 16,304
6,190 Yacimientos Petroliferos Fiscales Sociedad
del Estado, Series D (ADR) 259,980
--------
Total Argentina (Cost: $520,063) 683,036
--------
Brazil (9.2%)
1,090 Aracruz Celulose, S.A. (ADR) 21,800
7,450,000 Banco Bradesco, S.A. 39,446
2,424 Companhia Energetica de Minas Gerais
(CEMIG), S.A. (ADR) 56,358
3,220,000 Gerdau, S.A. 49,404
5,950 Souza Cruz, S.A. 39,738
440 Tele Centro Sul Participacoes, S.A. (ADR) 23,375
2,080 Telebras (ADR) 189,410*
2,080 Telecomunicacoes Brasileiras (ADR) 163*
--------
Total Brazil (Cost: $389,663) 419,694
--------
Chile (5.3%)
630 Banco Santander Chile (ADR) 10,868
1,480 Banco Santiago (ADR) 26,270
3,180 Compania de Telecomunicaciones de Chile,
S.A., Series A (ADR) 84,071
970 Distribucion y Servicio, S.A. (ADR) 14,671
1,226 Enersis, S.A. (ADR) 23,524
1,000 Gener, S.A., (ADR) 20,000
1,960 Laboratorio Chile, S.A. (ADR) 35,035
300 Quimica Y Minera Chile (ADR) 11,063
590 Vina Concha y Toro, S.A. (ADR) 19,138
--------
Total Chile (Cost: $218,016) 244,640
--------
Colombia (2.0%)
5,325 Banco de Bogota 19,346
1,930 BanColombia, S.A. (ADR) 13,028
10,859 Bavaria CB 59,437
--------
Total Colombia (Cost: $109,895) 91,811
--------
Mexico (40.9%)
8,800 Apasco, S.A. de C.V. 51,748
150,122 Cifra, S.A. de C.V., Series C 280,223*
1,540 Coca Cola Femsa, S.A. (ADR) 31,859
4,230 Fomento Economico Mexicano, S.A. de C.V.,
Series B (ADR) 153,866
6,800 Grupo CARSO, S.A. de C.V., Series Al 32,687
</TABLE>
21
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Latin America Equities Fund
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued) April 30, 1999
<TABLE>
<CAPTION>
Number of
Shares Value
- --------- ----------
<S> <C> <C>
Mexico (continued)
57,544 Grupo Industrial Bimbo, S.A. de C.V., Series A $ 123,557
460 Grupo Industrial Maseca, S.A. (ADR) 4,859
17,100 Grupo Industrial Maseca, Series B 11,808*
10,900 Grupo Mexico, S.A., Series B 42,104
61,900 Grupo Modelo, S.A. de C.V., Series C 162,631
6,430 Grupo Televisa, S.A. de C.V. (ADR) 263,630*
36,900 Kimberly-Clark de Mexico, S.A. de C.V., Series A 143,332
26,300 Organizacion Soriana, S.A., Series B 118,049
6,028 Telefonos de Mexico, S.A. de C.V. (ADR) 456,621
----------
Total Mexico (Cost: $1,397,925) 1,876,974
----------
Peru (2.5%)
20,879 Cementos Lima S.A., Class T 29,094
5,056 Compania de Minas Buenaventura, S.A., Series B 39,393
2,920 Telefonica del Peru (ADR) 43,983
----------
Total Peru (Cost: $96,343) 112,470
----------
Venezuela (0.9%)
770 Cia Anonima Telefonos de Venezuela (ADR) 22,013
50,000 Electricidad de Caracas 20,742*
----------
Total Venezuela (Cost: $40,257) 42,755
----------
Total Common Stock (Cost: $2,772,162) 3,471,380
----------
Preferred Stock
Argentina (Cost: $33,387) (0.6%)
2,600 Quilmes Industrial, S.A. (ADR) 28,438
----------
Brazil (22.7%)
850,000 Banco Estada de Sao Paulo S.A. 37,590
89,000 Banco Itau, S.A. 47,124
86,000 Cia Cervejaria Brahma 40,671
6,695,000 Cia Paranaense de Energia (COPEL), Series B 53,778
9,468 Compania Vale do Rio Doce 179,448
5,562,864 Embratel Participacoes, S.A. 90,539*
80,760 Itausa-Investimentos Itau, S.A. 43,733
882,000 Petroleo Brasileiro, S.A. (PETROBRAS) 142,108
8,700,000 Tele Centro Sul Participacoes, S.A. 94,224
4,803,000 Tele Norte Leste Paricipacoes, S.A. 83,807*
7,705,000 Telesp Participacoes, S.A. 193,784
1,370,000 Votorantim Celulose Papel, S.A. 34,695
----------
Total Brazil (Cost: $782,792) 1,041,501
----------
Total Preferred Stock (Cost: $816,179) (23.3%) 1,069,939
----------
Total Investments (Cost: $3,588,341) (99.0%) 4,541,319
Excess Of Other Assets Over Liabilities (1.0%) 47,575
----------
Net Assets (100.0%) $4,588,894
==========
</TABLE>
Notes to the Schedule of Investments:
*Non-income producing.
22
See accompanying notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
Investments by Industry (Unaudited) April 30, 1999
<TABLE>
<CAPTION>
Percentage of
Industry Net Assets
- -------------------------------- -------------
<S> <C>
Banking 6.5%
Beverages, Food & Tobacco 14.7
Building Materials 1.8
Chemicals 0.2
Commercial Services 0.7
Conglomerates 1.0
Energy & Oil Services 12.0
Machinery 0.3
Media--Broadcasting & Publishing 5.7
Metals 1.1
Mining 5.7
Paper & Forest Products 4.3
Pharmaceuticals 0.8
Retail 9.0
Telecommunications 20.8
Telephone Utilities 10.6
Utilities 3.8
----
Total 99.0%
====
</TABLE>
23
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Funds, Inc.
- --------------------------------------------------------------------------------
International
Statements of Assets and Liabilities (Unaudited) April 30, 1999
<TABLE>
<CAPTION>
TCW Galileo TCW Galileo
TCW Galileo Emerging Emerging
Asia Pacific Markets Markets
Equities Fund Equities Fund Income Fund
------------- ------------- -----------
Dollar Amounts in Thousands
(Except per Share Amounts)
<S> <C> <C> <C>
ASSETS
Investments, at Value (1) $ 13,226 $ 20,103 $ 57,016
Cash 208 342 843
Foreign Currency, at Value (/2/) -- 126 --
Receivables for Securities Sold -- 187 404
Interest and Dividends Receivable 6 48 1,235
Other Assets 3 3 --
--------- --------- ---------
Total Assets 13,443 20,809 59,498
========= ========= =========
LIABILITIES
Payable for Securities Purchased -- 498 --
Distribution Payable -- -- 96
Payables for Fund Shares Sold 7 1 --
Accrued Management Fees 10 16 35
Other Accrued Expenses 73 90 42
--------- --------- ---------
Total Liabilities 90 605 173
--------- --------- ---------
NET ASSETS $ 13,353 $ 20,204 $ 59,325
========= ========= =========
NET ASSETS CONSIST OF:
Paid-in Capital $ 15,190 $ 30,738 $ 61,389
Undistributed Net Realized (Loss) on
Investments and Foreign Currency (4,896) (13,779) (6,048)
Unrealized Appreciation on Investments
and Foreign Currency 3,292 2,778 3,854
Undistributed Net Investment Income
(Loss) (233) 467 130
--------- --------- ---------
$ 13,353 $ 20,204 $ 59,325
========= ========= =========
NET ASSETS ATTRIBUTABLE TO:
Institutional Class Shares $ 13,353 $ 20,204 $ 59,325
========= ========= =========
Advisory Class Shares -- -- --
========= ========= =========
CAPITAL SHARES OUTSTANDING:
Institutional Class 1,921,881 2,953,181 7,544,923
========= ========= =========
Advisory Class -- -- --
========= ========= =========
NET ASSET VALUE PER SHARE:
Institutional Class $ 6.95 $ 6.84 $ 7.86
========= ========= =========
Advisory Class $ -- $ -- $ --
========= ========= =========
</TABLE>
(1) The identified cost for the TCW Galileo Asia Pacific Equities Fund, and the
TCW Emerging Market Equities Fund and the TCW Galileo Emerging Markets
Income Fund at April 30, 1999, was $9,934, $17,319 and $53,162,
respectively.
(2) The identified cost for the TCW Galileo Emerging Markets Equities Fund at
April 30, 1999 was $127.
24
See accompanying notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities (Unaudited) April 30, 1999
<TABLE>
<CAPTION>
TCW Galileo TCW Galileo TCW Galileo TCW Galileo
European International Japanese Latin America
Equities Fund Equities Fund Equities Fund Equities Fund
------------- ------------- ------------- -------------
Dollar Amounts in Thousands
(Except per Share Amounts)
<S> <C> <C> <C> <C>
Assets
Investments, at
Value (/1/) $ 78,671 $ 79,903 $ 39,716 $ 4,541
Cash 541 2,341 -- 160
Foreign Currency, at
Value (/2/) 2,614 -- 58 --
Receivables for
Securities Sold -- -- 531 56
Interest and Dividends
Receivable 150 10 143 45
Foreign Tax Reclaim
Receivable 95 -- 8 --
Deferred Organization
Costs 4 6 6 --
Other Assets -- -- -- 13
--------- --------- --------- -------
Total Assets 82,075 82,260 40,462 4,815
--------- --------- --------- -------
Liabilities
Payables for Securities
Purchased 1,049 6 -- 137
Payable for Fund Shares
Purchased -- -- -- 10
Payable Upon Return of
Securities Loaned 9,737 -- 1,142 --
Accrued Management Fees 43 -- 26 3
Other Accrued Expenses 85 62 64 75
--------- --------- --------- -------
Total Liabilities 10,914 68 1,232 225
--------- --------- --------- -------
NET ASSETS $ 71,161 $ 82,192 $ 39,230 $ 4,590
========= ========= ========= =======
NET ASSETS CONSIST OF:
Paid-in Capital $ 56,461 $ 65,558 $ 33,570 $15,862
Undistributed Net
Realized Gain (Loss)
on Investments and
Foreign Currency 4,637 1,736 (1,245) (12,926)
Unrealized Appreciation
on Investments and
Foreign Currency 9,862 13,146 7,029 940
Undistributed Net
Investment Income
(Loss) 201 1,752 (124) 714
--------- --------- --------- -------
$ 71,161 $ 82,192 $ 39,230 $ 4,590
========= ========= ========= =======
NET ASSETS ATTRIBUTABLE
TO:
Institutional Class $ 71,027 $ 82,192 $ 39,230 $ 4,590
========= ========= ========= =======
Advisory Class $ 134 $ -- $ -- $ --
========= ========= ========= =======
CAPITAL SHARES OUTSTAND-
ING:
Institutional Class 5,620,739 6,524,892 3,274,947 449,280
========= ========= ========= =======
Advisory Class 10,658 -- -- --
========= ========= ========= =======
NET ASSET VALUE PER
SHARE:
Institutional Class $ 12.64 $ 12.60 $ 11.98 $ 10.21
========= ========= ========= =======
Advisory Class $ 12.63 $ -- $ -- $ --
========= ========= ========= =======
</TABLE>
(1) The identified cost for the TCW Galileo European Equities Fund, the TCW
Galileo International Equities Fund, the Galileo Japanese Equities Fund and
the TCW Galileo Latin America Equities Fund at April 30, 1999, was $68,836,
$66,757, $32,693 and $3,588, respectively.
(2) The identified cost for the TCW Galileo European Equities Fund and the TCW
Galileo Japanese Equities Fund at April 30,1999, was $2,605 and $249,
respectively.
25
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Funds, Inc.
- --------------------------------------------------------------------------------
International
Statements of Operations (Unaudited) Six Months Ended April 30, 1999
<TABLE>
<CAPTION>
TCW Galileo TCW Galileo
TCW Galileo Emerging Emerging
Asia Pacific Markets Markets
Equities Fund Equities Fund Income Fund
------------- ------------- -----------
Dollar Amounts in Thousands
<S> <C> <C> <C>
INVESTMENT INCOME
Income:
Dividends (/1/) $ 45 $ 190 $ --
Interest (Note 2) 22 18 3,471
------ ------ -------
Total 67 208 3,471
------ ------ -------
Expenses:
Management Fees 47 90 199
Transfer Agent Fees 18 18 13
Accounting Service Fees 14 14 15
Audit and Tax Fees 8 9 9
Administration Fees 2 2 3
Directors' Fees & Expenses 3 3 3
Custodian Fees 25 65 8
Registration Fees 14 14 14
Other 10 9 3
------ ------ -------
Total Expenses 141 224 267
Less Expenses Borne by Investment
Adviser 34 32 6
------ ------ -------
Net Expenses 107 192 261
------ ------ -------
Net Investment Income (Loss) (40) 16 3,210
------ ------ -------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS
Net Realized Gain (Loss) on:
Investments 543 (731) 589
Foreign Currency (24) (97) (5)
Change in Unrealized Appreciation
(Depreciation) on:
Investments 2,865 4,733 7,745
Foreign Currency -- (7) --
------ ------ -------
Net Realized and Unrealized Gain on
Investments and Foreign Currency
Transactions 3,384 3,898 8,329
------ ------ -------
INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $3,344 $3,914 $11,539
====== ====== =======
</TABLE>
(1) Net of foreign taxes withheld of $10 and $16 for the TCW Galileo Asia Pa-
cific Equities Fund and the TCW Galileo Emerging Markets Equities Fund, re-
spectively.
26
See accompanying notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
Statements of Operations (Unaudited) Six Months Ended April 30, 1999
<TABLE>
<CAPTION>
TCW Galileo
TCW Galileo TCW Galileo TCW Galileo Latin
European International Japanese America
Equities Fund Equities Fund Equities Fund Equities Fund
------------- ------------- ------------- -------------
Dollar Amounts in Thousands
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Dividends (/1/) $ 398 $ 1,616 $ 167 $ 149
Interest 31 17 33 9
------ ------- ------- -------
Total 429 1,633 200 158
------ ------- ------- -------
Expenses:
Management Fees 267 -- 130 37
Transfer Agent Fees 13 16 10 18
Accounting Service Fees 16 15 15 14
Audit and Tax Fees 9 20 9 8
Administration Fees 5 5 3 2
Directors' Fees and
Expenses 3 3 3 3
Custodian Fees 34 1 8 40
Amortization of
Deferred Organization
Costs 1 1 1 --
Registration Fees 13 13 14 14
Other 5 7 5 10
------ ------- ------- -------
Total Expenses 366 81 198 146
Less Expenses Borne by
Investment Adviser -- -- -- 54
------ ------- ------- -------
Net Expenses 366 81 198 92
------ ------- ------- -------
Net Investment Income 63 1,552 2 66
------ ------- ------- -------
NET REALIZED and
UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND
FOREIGN CURRENCY
TRANSACTIONS
Net Realized Gain
(Loss) on:
Investments 4,710 2,487 3,977 (2,301)
Foreign Currency (129) -- 286 (139)
Change in Unrealized
Appreciation
(Depreciation) on:
Investments 2,533 8,841 8,140 1,716
Foreign Currency 27 -- 6 (13)
------ ------- ------- -------
Net Realized and
Unrealized Gain (Loss)
on Investments and
Foreign Currency
Transactions 7,141 11,328 12,409 (737)
------ ------- ------- -------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS $7,204 $12,880 $12,411 $ (671)
====== ======= ======= =======
</TABLE>
(1) Net of foreign taxes withheld of $37, $ --, $40 and $20 for the TCW Galileo
European Equities Fund, the TCW Galileo Japanese Equities Fund and the TCW
Galileo Latin America Equities Fund, respectively.
27
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Funds, Inc.
- --------------------------------------------------------------------------------
International
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
TCW Galileo Asia Pacific TCW Galileo Emerging
Equities Fund Markets Equities 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) $ (40) $ 40 $ 16 $ 375
Net Realized Gain
(Loss) on Investments
and Foreign Currency
Transactions 519 (7,018) (828) (7,931)
Change in Unrealized
Appreciation
(Depreciation) on
Investments and
Foreign Currency
Transactions 2,865 3,769 4,726 (3,247)
----------- ------------ ------- --------
Increase (Decrease) in
Net Assets Resulting
from Operations 3,344 (3,209) 3,914 (10,803)
----------- ------------ ------- --------
Distributions from Net
Realized Gains -- (2,465) -- --
----------- ------------ ------- --------
Total Distributions to
Shareholders -- (2,465) -- (34)
----------- ------------ ------- --------
NET CAPITAL SHARE
TRANSACTIONS (Note 7):
Institutional Class 1,527 (7,171) (2,473) (18,126)
----------- ------------ ------- --------
Increase (Decrease) in
Net Assets 4,871 (12,845) (1,441) (28,963)
NET ASSETS
Beginning of Period 8,482 21,327 18,763 47,726
----------- ------------ ------- --------
End of Period $ 13,353 $ 8,482 $20,204 $ 18,763
=========== ============ ======= ========
DISTRIBUTIONS TO
SHAREHOLDERS
Distributions from Net
Investment Income -- -- -- (34)
</TABLE>
28
See accompanying notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
TCW Galileo Emerging TCW Galileo European
Markets Income Fund Equities Fund
----------------------- -------------------------------
Six Months Six Months
Ended Ended November 3, 1997
April 30, Year ended April 30, (Commencement of
1999 October 31, 1999 Operations) through
(Unaudited) 1998 (Unaudited) October 31, 1998
----------- ----------- ----------- -------------------
Dollar Amounts in Thousands
<S> <C> <C> <C> <C>
OPERATIONS
Net Investment Income $ 3,210 $ 1,133 $ 63 $ 284
Net Realized Gain
(Loss) Investments and
Foreign Currency
Transactions 584 (6,632) 4,581 1,708
Change in Unrealized
Appreciation
(Depreciation) on
Investments and
Foreign Currency
Transactions 7,745 (3,087) 2,560 3,856
------- ------- ------- -------
Increase (Decrease) in
Net Assets Resulting
from Operations 11,539 (8,586) 7,204 5,848
------- ------- ------- -------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net
Investment Income (3,074) (1,133) (146) --
Distributions from Net
Realized Gains -- (6) (1,652) --
------- ------- ------- -------
Total Distributions to
Shareholders (3,074) (1,139) (1,798) --
------- ------- ------- -------
NET CAPITAL SHARE TRANSACTIONS
(Note 7):
Institutional Class 20,770 39,815 1,628 58,146
Advisory Class -- -- 133 --
------- ------- ------- -------
Increase in Net Assets
Resulting from Net
Capital Share
Transactions 20,770 39,815 1,761 58,146
------- ------- ------- -------
Increase in Net Assets 29,235 30,090 7,167 63,994
NET ASSETS
Beginning of Period 30,090 -- 63,994 --
------- ------- ------- -------
End of Period $59,325 $30,090 $71,161 $63,994
======= ======= ======= =======
</TABLE>
29
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Funds, Inc.
- --------------------------------------------------------------------------------
International
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
TCW Galileo International
Equities Fund TCW Galileo Japanese Equities Fund
------------------------------- -----------------------------------------
November 3, 1997 November 3, 1997
Six Months (Commencement Six Months (Commencement
Ended of Operations) Ended of Operations)
April 30, 1999 through April 30, 1999 through
(Unaudited) October 31, 1998 (Unaudited) October 31, 1998
-------------- ---------------- ----------------- ------------------
Dollar Amounts in Thousands
<S> <C> <C> <C> <C>
OPERATIONS
Net Investment Income
(Loss) $ 1,552 $ 346 $ 2 $ (74)
Net Realized Gain
(Loss) on Investments
and Foreign Currency
Transactions 2,487 (751) 4,263 (5,508)
Change in Unrealized
Appreciation on
Investments and
Foreign Currency
Transactions 8,841 4,305 8,146 4,310
------- ------- ----------------- -----------------
Increase (Decrease) in
Net Assets Resulting
from Operations 12,880 3,900 12,411 (1,272)
------- ------- ----------------- -----------------
DISTRIBUTIONS TO SHARE-
HOLDERS
Distributions from Net
Investment Income (146) -- -- (52)
------- ------- ----------------- -----------------
NET CAPITAL SHARE
TRANSACTIONS (Note 7):
Institutional Class (5,395) 70,953 (1,829) 29,972
------- ------- ----------------- -----------------
Increase in Net Assets 7,339 74,853 10,582 28,648
NET ASSETS
Beginning of Period 74,853 -- 28,648 --
------- ------- ----------------- -----------------
End of Period $82,192 $74,853 $ 39,230 $ 28,648
======= ======= ================= =================
</TABLE>
30
See accompanying notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
TCW Galileo Latin America
Equities Fund
---------------------------------
Six Months Ended
April 30, 1999 Year Ended
(Unaudited) October 31, 1998
---------------- ----------------
Dollar Amounts in Thousands
<S> <C> <C>
OPERATIONS
Net Investment Income $ 66 $ 351
Net Realized Gain (Loss) On Investments and
Foreign Currency Transactions (2,440) 3,972
Change in Unrealized Appreciation
(Depreciation) on Investments and Foreign
Currency Transactions 1,703 (12,359)
------- --------
(Decrease) in Net Assets Resulting from
Operations (671) (8,036)
------- --------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income -- (595)
------- --------
NET CAPITAL SHARE TRANSACTIONS (NOTE 7):
Institutional Class (6,535) (34,909)
------- --------
(Decrease) in Net Assets (7,206) (43,540)
NET ASSETS
Beginning of Period 11,796 55,336
------- --------
End of Period $ 4,590 $ 11,796
======= ========
</TABLE>
31
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Funds, Inc.
- --------------------------------------------------------------------------------
International
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 to 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 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 fourteen non-diversified
equity funds (the TCW Galileo Core Equities Fund, the TCW Galileo Earnings
Momentum Fund, the TCW Aggressive Growth Equities Fund (formerly TCW Galileo
Mid-Cap Growth Fund), the TCW Galileo Small Cap Growth Fund, the TCW Galileo
Enhanced 500 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 region; (12) the TCW Galileo Emerging Markets Equities Fund
seeks long-term capital
32
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued) April 30, 1999
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 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 Fund in the preparation of its 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.
33
<PAGE>
TCW Galileo Funds, Inc.
- --------------------------------------------------------------------------------
International
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
under the general supervision of the Company's Board of Directors.
Short-term debt securities with remaining maturities of 60 days or less at the
time of purchase are valued at amortized cost. Other short-term debt securities
are valued on a marked-to-market basis until such time as they reach a
remaining maturity of 60 days, whereupon they will be valued at amortized value
using their value 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
identification. The TCW Galileo Emerging Markets Income Fund recognizes as
interest income discounts on securities purchased using a constant yield to
maturity accretion method. Premiums on securities purchased are not amortized.
Foreign Currency Translation: The books and records of each Fund are maintained
in U.S. dollars as follows: (1) the foreign currency market value of investment
securities, and other assets and liabilities stated in foreign currencies, are
translated using the daily spot rate; and (2) purchases, sales, income and
expenses are translated at the rate of exchange prevailing on the respective
dates of such transactions. The resultant exchange gains and losses are
included in the Statements of Operations with the related net realized gain
(loss). Pursuant to U.S. federal income tax regulations, certain foreign
exchange gains and losses included in realized and unrealized gains and losses
are included in, or are a reduction of, ordinary income for federal income tax
purposes. It is not practicable to separately identify that portion of gains
and losses of the Funds that arise as a result of changes in the exchange rates
from the fluctuations that arise from changes in market prices of investments
during the year.
Forward Foreign Currency Contracts: Certain Funds may enter into forward
foreign currency contracts as a hedge against fluctuations in foreign exchange
rates. Forward foreign currency contracts are marked-to-market daily and the
change in market value is recorded by the Fund as an unrealized gain or loss.
When the contract is closed or delivery is taken, the Fund records a realized
gain or loss equal to the difference between the value of the contract at the
time it was opened and the value at the time it was closed. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of their contracts and from unanticipated
movements in the value of the foreign currency relative to the U.S. dollar.
There were no forward foreign currency contracts outstanding on April 30, 1999.
Repurchase Agreements: The Funds may invest in repurchase agreements secured by
U.S. Government obligations and in other securities. Securities pledged as
collateral for repurchase agreements are held by the Funds' custodian bank
until maturity of the repurchase agreements. Provisions of the agreements
ensure that the market value of the collateral is sufficient in the event of
default; however, in the event of default or bankruptcy by the other party to
the agreements, realization and/or retention of the collateral may be subject
to legal proceedings.
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
34
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued) April 30, 1999
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 European Equities
Fund $9,210,072 $9,737,058 $2,398
TCW Galileo Japanese Equities
Fund 1,088,651 1,141,500 560
</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
liability. The amount of the liability is subsequently adjusted to reflect the
current market value of the option written. If the option expires unexercised,
premiums received are realized as a gain at expiration date. If the position is
closed prior to expiration, a gain or loss is realized based on premiums
received, less the cost to close the option. When an option is exercised,
premiums received are added to the proceeds from the sale of the underlying
securities and a gain or loss is realized. Call options purchased are accounted
for in the same manner as portfolio securities. The cost of securities acquired
through the exercise of call options is increased by premiums paid. There were
no option contracts entered into during the six months ended April 30, 1999.
Deferred Organization Costs: Organization costs of $10,000 per Fund for the TCW
Galileo Asia Pacific Equities Fund and the TCW Galileo Emerging Markets
Equities Fund and $50,000 for the TCW Galileo Latin America Equities Fund have
been completely amortized as of April 30, 1999. Organizational costs of
approximately $7,000, $9,000 and $7,000 for the TCW Galileo European Equities
Fund, TCW Galileo International Equities Galileo Fund and the TCW Galileo
Japanese Equities Fund, respectively, have been deferred and are also being
amortized on a straight line basis over a five year period from the
commencement of operations. Organizational costs for the TCW Galileo Emerging
Markets Income Fund 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 Asia Pacific Equities
Fund, the TCW Galileo Emerging Markets Equities Fund, the TCW Galileo European
Equities Fund, the TCW Galileo International Equities Fund, and the TCW Galileo
Japanese Equities Fund, and 2,000 shares of the TCW Galileo Latin America
Equities Fund, collectively the "Initial Shares"). In the event the Adviser
redeems any of its Initial Shares from one or more of the Funds prior to the
end of the five-year period, the proceeds of the redemption payable in respect
of such shares will be reduced by any unamortized organization costs in the
same ratio as the number of Initial Shares being redeemed bears to the number
of Initial Shares outstanding at the time of the redemption.
Allocation of Operating Activity: Investment income, common expenses and
realized 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.
35
<PAGE>
TCW Galileo Funds, Inc.
- --------------------------------------------------------------------------------
International
Notes to Financial Statements (Unaudited) (Continued) April 30, 1999
Net Asset Value: The Net Asset Value of each Fund's shares is determined by
dividing the net assets of the Fund by the number of issued and outstanding
shares on each business day as of 1:00 P.M. Pacific Standard Time.
Dividends and Distributions: It is the policy of the Funds to declare and pay,
or reinvest, dividends from net investment income annually. Distribution of any
net long-term and net short-term capital gains earned by a Fund will be
distributed at least annually.
Income and capital gain distributions are determined in accordance with income
tax regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments for foreign
currency transactions, market discount, losses deferred to wash sales, 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 affect net investment income per share. Undistributed net
investment income may include temporary book and tax basis differences which
will reverse in a subsequent period. Any taxable income or gain remaining at
fiscal year end is distributed in the following year.
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 TCW Galileo
Asia Pacific Emerging Markets Emerging Markets European
Equities Fund Equities Fund Income Fund Equities Fund
------------- ---------------- ---------------- -------------
<S> <C> <C> <C> <C>
Unrealized Appreciation $ 3,389,303 $ 3,580,197 $ 6,191,376 $12,389,705
Unrealized
(Depreciation) (98,055) (795,540) (2,337,494) (2,554,637)
----------- ----------- ----------- -----------
Net Unrealized
Appreciation $ 3,291,248 $ 2,784,657 $ 3,853,882 $ 9,835,068
=========== =========== =========== ===========
Cost of Investments for
Federal Income Tax
Purposes $ 9,934,495 $17,318,784 $53,161,654 $68,836,096
=========== =========== =========== ===========
<CAPTION>
TCW Galileo TCW Galileo TCW Galileo
International Japanese Latin America
Equities Fund Equities Fund Equities Fund
------------- ---------------- ----------------
<S> <C> <C> <C>
Unrealized Appreciation $13,345,969 $ 7,503,338 $ 986,906
Unrealized
(Depreciation) (199,907) (480,036) (33,928)
----------- ----------- -----------
Net Unrealized
Appreciation $13,146,062 $ 7,023,302 $ 952,978
=========== =========== ===========
Cost of Investments for
Federal Income Tax
Purposes $66,757,128 $32,692,499 $ 3,588,341
=========== =========== ===========
</TABLE>
36
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued) April 30, 1999
Note 3--Federal Income Taxes (continued)
At April 30, 1999, the following Funds had net realized loss carryforwards for
federal income tax purposes (in thousands):
<TABLE>
<CAPTION>
Expiring in
-------------------------
2003 2004 2005 2006
------ ------ ---- ------
<S> <C> <C> <C> <C>
TCW Galileo Asia Pacific Equities Fund $ -- $ -- $ -- $6,632
TCW Galileo Emerging Markets Equities Fund 3,478 902 -- 7,540
TCW Galileo Emerging Markets Income Fund -- -- -- 6,429
TCW Galileo International Equities Fund -- -- -- 555
TCW Galileo Japanese Equities Fund -- -- -- 5,511
TCW Galileo Latin America Equities Fund 6,586 3,423 -- --
</TABLE>
Note 4--Investment Advisory and Accounting Service Fees
The Funds pay to the Adviser, as compensation for services rendered, facilities
furnished and expenses borne by it, the following annual management fees:
<TABLE>
<S> <C>
TCW Galileo Asia Pacific Equities Fund 1.00%
TCW Galileo Emerging Markets Equities Fund 1.00%
TCW Galileo Emerging Markets Income Fund 0.75%
TCW Galileo European Equities Fund 0.75%
TCW Galileo International Equities Fund 0.00%
TCW Galileo Japanese Equities Fund 0.75%
TCW Galileo Latin America Equities Fund 1.00%
</TABLE>
For the period November 1, 1998 through February 28, 1999, when the Adviser was
the administrator of the Funds, each 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 Emerging Markets Income
Fund, the TCW Galileo European Equities Fund, the TCW Galileo International Eq-
uities Fund and the TCW Galileo Japanese Equities Fund were limited to 1.78%,
1.20%, 1.16% and 1.20%, 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 of the total expense ratios as reported by
Lipper Analytical Services, Inc. for each Fund's respective investment objec-
tive, which is subject to change on a monthly basis. At April 30, 1999, the or-
dinary operating expenses for the TCW Galileo Asia Pacific Equities Fund, the
TCW Emerging Markets Equities Fund, the TCW Emerging Markets Income Fund, the
TCW Galileo European Equities Fund, the TCW Galileo International Equities
Fund, the TCW Galileo Japanese Equities Fund and the TCW Galileo Latin America
Equities Fund were limited to 2.15%, 2.19%, 1.70%, 1.64%, 1.65%, 1.77% and
2.21%, 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.
37
<PAGE>
TCW Galileo Funds, Inc.
- --------------------------------------------------------------------------------
International
Notes to Financial Statements (Unaudited) (Continued) April 30, 1999
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 TCW Galileo European
Asia Pacific Emerging Markets Emerging Markets Equities
Equities Fund Equities Fund Income Fund Fund
------------- ---------------- ---------------- -----------
<S> <C> <C> <C> <C>
Purchases at Cost $ 9,192,661 $12,690,440 $38,728,603 $31,299,156
=========== =========== =========== ===========
Sales Proceeds $ 6,828,669 $13,783,101 $23,974,110 $29,939,455
=========== =========== =========== ===========
<CAPTION>
TCW Galileo TCW Galileo TCW Galileo
International Japanese Latin America
Equities Fund Equities Fund Equities Fund
------------- ---------------- ----------------
<S> <C> <C> <C>
Purchases at Cost $12,041,803 $22,361,938 $ 2,642,860
=========== =========== ===========
Sales Proceeds $17,971,192 $23,571,774 $ 8,526,105
=========== =========== ===========
</TABLE>
There were no purchases or sales of U.S. Government Securities for the six
months ended April 30, 1999.
Note 7--Capital Share Transactions
TCW Galileo Asia Pacific Equities Fund
Institutional Class
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1999 Year Ended
(Unaudited) October 31, 1998
------------------------ --------------------------
Amount Amount
Shares (in thousands) Shares (in thousands)
-------- -------------- ---------- --------------
<S> <C> <C> <C> <C>
Shares Sold 439,455 $ 2,520 1,605,901 $ 9,663
Shares Issued Upon
Reinvestment of Dividends 440,561 2,425
Shares Redeemed (183,002) (993) (3,272,912) (19,259)
-------- ------- ---------- --------
Net Increase (Decrease) 256,453 $ 1,527 (1,226,450) $ (7,171)
======== ======= ========== ========
TCW Galileo Emerging Markets Equities Fund
Institutional Class
<CAPTION>
Six Months Ended
April 30, 1999 Year Ended
(Unaudited) October 31, 1998
------------------------ --------------------------
Amount Amount
Shares (in thousands) Shares (in thousands)
-------- -------------- ---------- --------------
<S> <C> <C> <C> <C>
Shares Sold 487,236 $ 2,841 1,729,977 $ 10,216
Shares Issued Upon
Reinvestment of Dividends 3,688 27
Shares Redeemed (901,924) (5,314) (4,103,415) (28,369)
-------- ------- ---------- --------
Net (Decrease) (414,688) $(2,473) (2,369,750) $(18,126)
======== ======= ========== ========
</TABLE>
38
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued) April 30, 1999
Note 7--Capital Share Transactions (continued)
TCW Galileo Emerging Markets Income Fund
Institutional Class
<TABLE>
<CAPTION>
June 3, 1998
Six Months Ended (Commencement of
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 -- $ -- 2,821,844 $28,218
Shares Sold 4,015,525 27,551 1,871,153 12,305
Shares Issued Upon
Reinvestment of
Dividends 375,709 2,672 114,557 834
Shares Redeemed (1,415,936) (9,453) (237,929) (1,542)
---------- ------- --------- -------
Net Increase 2,975,298 $20,770 4,569,625 $39,815
========== ======= ========= =======
TCW Galileo European Equities Fund
Institutional Class
<CAPTION>
November 3, 1997
Six Months Ended (Commencement of
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 -- $ -- 3,226,833 $32,268
Shares Sold 934,912 11,518 2,746,292 32,078
Shares Issued Upon
Reinvestment of
Dividends 150,626 1,791 -- --
Shares Redeemed (935,376) (11,681) (502,548) (6,200)
---------- ------- --------- -------
Net Increase 150,162 $ 1,628 5,470,577 $58,146
========== ======= ========= =======
TCW Galileo European Equities Fund
Advisory Class
<CAPTION>
Period Ending
April 30, 1999 (1)
(Unaudited)
--------------------------
Amount
Shares (in thousands)
---------- --------------
<S> <C> <C>
Shares Sold 10,658 $ 133
---------- -------
Net Increase 10,658 $ 133
========== =======
</TABLE>
(1) For the period March 1, 1999 (Commencement of offering of the Advisory
Class shares) through April 30, 1999.
39
<PAGE>
TCW Galileo Funds, Inc.
- --------------------------------------------------------------------------------
International
Notes to Financial Statements (Unaudited) (Continued) April 30, 1999
Note 7--Capital Share Transactions (continued)
TCW Galileo International Equities Fund
Institutional Class
<TABLE>
<CAPTION>
November 3, 1997
Six Months Ended (Commencement of
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 -- $ -- 4,670,385 $ 46,704
Shares Sold 668,181 7,524 3,196,699 34,126
Shares Issued Upon
Reinvestment of
Dividends 3,536 40 -- --
Shares Redeemed (1,107,686) (12,959) (906,223) (9,877)
---------- -------- ---------- --------
Net Increase (Decrease) (435,969) $ (5,395) 6,960,861 $ 70,953
========== ======== ========== ========
TCW Galileo Japanese Equities Fund
Institutional Class
<CAPTION>
November 3, 1997
Six Months Ended (Commencement of
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 -- $ -- 960,559 $ 9,606
Shares Sold 398,879 3,679 2,813,291 23,503
Shares issued upon
Reinvestment of
Dividends -- -- 7,216 52
Shares Redeemed (521,476) (5,508) (383,522) (3,189)
---------- -------- ---------- --------
Net Increase (Decrease) (122,597) $ (1,829) 3,397,544 $ 29,972
========== ======== ========== ========
TCW Galileo Latin America Fund
Institutional Class
<CAPTION>
Six Months Ended
April 30, 1999 Year Ended
(Unaudited) October 31, 1998
-------------------------- --------------------------
Amount Amount
Shares (in thousands) Shares (in thousands)
---------- -------------- ---------- --------------
<S> <C> <C> <C> <C>
Shares Sold 162,910 $ 1,400 1,123,813 $ 13,900
Shares Issued Upon
Reinvestment of
Dividends 28,695 345
Shares Redeemed 1,089,810 (7,935) (4,200,900) (49,154)
---------- -------- ---------- --------
Net (Decrease) (926,900) $ (6,535) (3,048,392) $(34,909)
========== ======== ========== ========
</TABLE>
40
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued) April 30, 1999
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.
TCW Galileo Asia Pacific Equities Fund:
<TABLE>
<CAPTION>
Number
of Date of
Shares Investment Acquisition Cost
------ -------------------------------------------- ----------- --------
<C> <S> <C> <C>
115 Asustek Computer, Inc. (144A) (GDR) (Taiwan) 11/10/98 $ 765
136,405 Taiwan Semiconductor Manufacturing Company 02/10/99 363,245
(Local Shares) (Taiwan)
6,590 Winbond Electronics Corporation (144A) (GDR) 01/29/99 75,456
(Taiwan)
The total value of restricted securities is $529,669, which represents 4.0% of
net assets of the Fund at April 30, 1999.
TCW Galileo Emerging Markets Equities Fund:
<CAPTION>
Number
of Date of
Shares Investment Acquisition Cost
------ -------------------------------------------- ----------- --------
<C> <S> <C> <C>
116 Asustek Computer, Inc. (144A) (GDR) (Taiwan) 11/03/98 $ 771
27,500 Central Asian Investment Company, Limited 01/26/95 275,000
(Asia)
4,783 Mol Magyar Ola-jes Gazipari Rt. (144A) (GDR) 10/17/97 86,670
(Hungary)
240,000 Taiwan Semiconductor Manufacturing Company 01/20/99 74,586
(Local Shares) (Taiwan)
23,000 Telekomunikacja Polska, S.A. (144A) (GDR) 11/09/98 102,120
(Poland)
3,780 Winbond Electronics Corporation (144A) (GDR) 01/29/99 43,281
(Taiwan)
</TABLE>
The total value of restricted securities is $1,101,066, which represents 5.4%
of net assets of the Fund at April 30, 1999.
41
<PAGE>
TCW GALILEO FUNDS, INC.
- --------------------------------------------------------------------------------
International
Notes to Financial Statements (Unaudited) (Continued) April 30, 1999
Note 8--Restricted Securities (continued)
TCW Galileo Emerging Markets Income Fund:
<TABLE>
<CAPTION>
Principal Date of
Amount Investment Acquisition Cost
--------- ------------------------------------------ ----------- ----------
<C> <S> <C> <C>
$ 720,000 Ce Casecnan Water & Energy, Series A, 10/30/98 $ 621,605
11.45%, due 11/15/05 (Philippines)
305,500 Cellco Finance N.V., (144A), 15%, due 08/11/98 298,900
08/01/05 (Turkey)
440,000 Cellco Finance N.V , (Reg. S), 15%, due 10/30/98 366,438
08/01/05 (Turkey)
888,000 Cemex International Capital, LLC, (Reg. 10/14/98 767,143
S), 9.66%, due 11/29/49 (Mexico)
1,185,000 Globopar Communications, (Reg. S), 10/16/98 650,919
10.625%, due 12/05/08 (Brazil)
1,035,000 JG Summit Philippines (Reg. S), 8.375%, 02/03/98 721,562
due 03/17/04 (Philippines)
375,000 Republic of Ecuador, (Reg. S), Variable 10/22/98 253,547
Rate based on Six Month LIBOR + 4.75%, due
04/25/04 (Ecuador)
910,000 Republic of Turkey, (Reg. S), 9.875% due 08/11/98 807,225
02/23/05 (Turkey)
640,000 Russian Federation, (144A), 11% due 07/20/98 468,497
07/24/18 (Russia)
530,000 Russian Federation, (Reg. S), 11% due 07/20/98 112,276
07/24/18 (Russia)
820,000 Russian Federation, (144A), 12.75% due 07/23/98 727,340
06/24/28, Par Put 06/24/08 (Russia)
8,395,000 Russian Federation, (Reg. S), 12.75% due 07/23/98 1,992,465
06/24/28, Par Put 06/24/08 (Russia)
550,000 Solvak Republic (Reg. S), 9.5%, due 03/24/99 523,600
05/28/03 (Slovakia)
</TABLE>
The total value of restricted securities is $10,220,843 which represents 17.2%
of net assets of the Fund at April 30, 1999.
42
<PAGE>
TCW Galileo Asia Pacific Equities Fund
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
March 1, 1994
Six Months (Commencement of
Ended Year ended October 31, Operations)
April 30, 1999 ------------------------------------ through
(Unaudited) 1998 1997 1996 1995 October 31, 1994
-------------- ------- ------- ------- ------- ----------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value per
Share, Beginning of
Period $ 5.09 $ 7.37 $ 9.61 $ 8.67 $ 10.19 $ 10.00
------- ------- ------- ------- ------- -------
Income (Loss) from
Investment Operations:
Net Investment Income
(Loss) (0.01) 0.02 (0.01) 0.06 0.06 0.03
Net Realized and
Unrealized Gain (Loss)
on Investments 1.87 (1.04) (2.10) 0.93 (1.19) 0.16
------- ------- ------- ------- ------- -------
Total from Investment
Operations 1.86 (1.02) (2.11) 0.99 (1.13) 0.19
------- ------- ------- ------- ------- -------
Less Distributions:
Distributions from Net
Investment Income -- -- (0.08) (0.05) (0.01) --
Distributions in Excess
of Net Investment
Income -- -- (0.05) -- (0.22) --
Distributions from Net
Realized Gains -- (1.26) -- -- (0.16) --
------- ------- ------- ------- ------- -------
Total Distributions -- (1.26) (0.13) (0.05) (0.39) --
------- ------- ------- ------- ------- -------
Net Asset Value per
Share, End of Period $ 6.95 $ 5.09 $ 7.37 $ 9.61 $ 8.67 $ 10.19
======= ======= ======= ======= ======= =======
Total Return 36.54% (2) (14.80)% (22.40)% 11.36% (10.98)% 1.90% (1)
Ratios/Supplemental Data:
Net Assets, End of
Period (in thousands) $13,353 $ 8,482 $21,327 $48,266 $46,709 $54,019
Ratio of Net Expenses to
Average Net Assets 2.27% (3)(4) 2.48 % 1.49 % 1.43% 1.47% (4) 1.40% (3)(4)
Ratio of Net Investment
Income (Loss) to
Average Net Assets (0.85)% (3) 0.36 % (0.02)% 0.66% 0.74% 0.45% (3)
Portfolio Turnover Rate 76.68% (2) 190.33 % 81.92 % 84.81% 102.01% 46.75% (1)
</TABLE>
(1) For the period March 1, 1994 (Commencement of Operations) through October
31, 1994 and not indicative of a full year's operating results.
(2) 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 annual
operating expenses of the Fund as disclosed in Note 4 of the Notes to the
Financial Statements for the six months ended April 30, 1999 and 1.40% of
net assets through December 31, 1994. Had such action not been taken, total
annualized operating expenses, as a percentage of net assets, would have
been 3.01% for the six months ended April 30, 1999, 1.51% for the year
ended October 31, 1995 and 1.60% for the period March 1, 1994 (Commencement
of operations) through October 31, 1994.
43
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Emerging Markets Equities Fund
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
Six Months Ten Months
Ended Year ended October 31, Ended
April 30, 1999 ----------------------------------- October
(Unaudited) 1998 1997 1996 1995 31, 1994
-------------- ------- ------- ------- ------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value per
Share, Beginning of
Period $ 5.57 $ 8.32 $ 8.18 $ 7.19 $ 9.73 $ 10.00
------- ------- ------- ------- ------- -------
Income (Loss) from
Investment Operations:
Net Investment Income
(Loss) 0.02 0.09 0.03 0.07 0.04 (0.01)
Net Realized and
Unrealized Gain (Loss)
on Investments 1.25 (2.83) 0.22 0.94 (2.58) (0.26)
------- ------- ------- ------- ------- -------
Total from Investment
Operations 1.27 (2.74) 0.25 1.01 (2.54) (0.27)
------- ------- ------- ------- ------- -------
Less Distributions:
Distributions from Net
Investment Income -- (0.01) (0.11) (0.02) -- --
------- ------- ------- ------- ------- -------
Net Asset Value per
Share, End of Period $ 6.84 $ 5.57 $ 8.32 $ 8.18 $ 7.19 $ 9.73
======= ======= ======= ======= ======= =======
Total Return 22.80% (2) (32.97)% 2.82% 14.14% (26.11)% (2.70)% (1)
Ratios/Supplemental
Data:
Net Assets, End of
Period (in thousands) $20,204 $18,763 $47,726 $57,639 $51,873 $70,212
Ratio of Net Expenses to
Average Net Assets 2.14% (3)(4) 1.70 % 1.50% 1.41% 1.55 % 1.70 % (3)
Ratio of Net Investment
Income (Loss) to
Average Net Assets 0.18% (3) 1.15 % 0.36% 0.82% 0.54 % (0.09)% (3)
Portfolio Turnover Rate 73.85% (2) 102.28 % 79.80% 83.76% 74.24 % 61.28 % (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.
(4) The Investment Adviser had voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund as disclosed in Note 4 of the Notes to
the Financial Statements for the six months ended April 30, 1999. Had such
action not been taken, total annualized operating expenses, as a percentage
of net assets, would have been 2.50% for the six months ended April 30,
1999.
44
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Emerging Markets Income Fund
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
Six Months June 3, 1998
Ended (Commencement of
April 30, 1999 operations) through
(Unaudited) October 31, 1998
-------------- -------------------
<S> <C> <C>
Net Asset Value per Share, Beginning of
Period $ 6.58 $ 10.00
------- -------
Income (Loss) from Investment
Operations:
Net Investment Income 0.43 0.37
Net Realized and Unrealized Gain (Loss)
on Investments 1.26 (3.41)
------- -------
Total from Investment Operations 1.69 (3.04)
------- -------
Less Distributions:
Distributions from Net Investment
Income (0.41) (0.37)
Distributions in Excess of Net
Investment Income -- (0.01)
------- -------
Total Distributions (0.41) (0.38)
------- -------
Net Asset Value per Share, End of Period $ 7.86 $ 6.58
======= =======
Total Return 26.47% (4) (30.67)% (1)
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $59,325 $30,090
Ratio of Net Expenses to Average Net
Assets 0.98% (3)(4) 1.53% (3)
Ratio of Net Investment Income to
Average Net Assets 12.11% (3) 11.90% (3)
Portfolio Turnover Rate 49.93% (2) 68.46% (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 Advisor had voluntarily agreed to reduce its fee, or to pay
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 1.01% for
the six months ended April 30, 1999.
45
See accompanying notes to financial statements.
<PAGE>
TCW Galileo European Equities Fund
- --------------------------------------------------------------------------------
Institutional Class
Financial Highlights
<TABLE>
<CAPTION>
Six Months November 3, 1997
Ended (Commencement of
April 30, 1999 Operations) through
(Unaudited) October 31, 1998
-------------- -------------------
<S> <C> <C>
Net Asset Value per Share, Beginning of
Period $ 11.70 $ 10.00
------- -------
Income from Investment Operations:
Net Investment Income 0.01 0.06
Net Realized and Unrealized Gain on
Investments 1.24 1.64
------- -------
Total from Investment Operations 1.25 1.70
------- -------
Less Distributions:
Distributions from Net Investment Income (0.03) --
Distributions from Net Realized Gains (0.28) --
------- -------
Total Distributions (0.31) --
------- -------
Net Asset Value per Share, End of Period $ 12.64 $ 11.70
======= =======
Total Return 11.03% (2) 17.00% (1)
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $71,027 $63,994
Ratio of Expenses to Average Net Assets 1.03% (3) 1.06% (3)
Ratio of Net Investment Income to Average
Net Assets 0.18% (3) 0.52% (3)
Portfolio Turnover Rate 43.17% (2) 72.05% (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.
46
See accompanying notes to financial statements.
<PAGE>
TCW Galileo European 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 $12.37
------
Income from Investment Operations:
Net Investment Income 0.04
Net Realized and Unrealized Gain on Investments 0.22
------
Total from Investment Operations 0.26
------
Net Asset Value, End of Period $12.63
======
Total Return 2.10% (1)
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 135
Ratio of Net Expenses to Average Net Assets 1.32% (2)(3)
Ratios of Net Investment Income to Average Net Assets 2.43% (2)
Portfolio Turnover Rate 43.17% (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
operating results.
(2) Annualized.
(3) The Investment Adviser voluntarily agreed to reduce its fee, or to pay the
operating expenses of the Fund as disclosed in Note 4 of the Notes to the
Financial Statements for the six months ended April 30, 1999. Had such ac-
tion not been taken, total annualized operating expenses, as a percentage
of average net assets, would have been 1.34% for the period ended April 30,
1999.
47
See accompanying notes to financial statements.
<PAGE>
TCW Galileo International Equities Fund
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
Six Months November 3, 1997
Ended (Commencement of
April 30, 1999 operations) through
(Unaudited) October 31, 1998
-------------- -------------------
<S> <C> <C>
Net Asset Value per Share, Beginning of
Period $ 10.75 $ 10.00
------- -------
Income from Investment Operations:
Net Investment Income 0.24 0.05
Net Realized and Unrealized Gain on
Investments 1.63 0.70
------- -------
Total from Investment Operations 1.87 0.75
------- -------
Less Distributions:
Distributions from Net Investment Income (0.02) --
------- -------
Net Asset Value per Share, End of Period $ 12.60 $ 10.75
======= =======
Total Return 17.42% (2) 7.50% (1)
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $82,192 $74,853
Ratio of Expenses to Average Net Assets 0.20% (3) 0.17% (3)
Ratio of Net Investment Income to Average
Net Assets 3.80% (3) 0.50% (3)
Portfolio Turnover Rate 15.08% (2) 21.12% (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.
48
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Japanese Equities Fund
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
Six Months November 3, 1997
Ended (Commencement of
April 30, 1999 operations) through
(Unaudited) October 31, 1998
-------------- -------------------
<S> <C> <C>
Net Asset Value per Share, Beginning
of Period $ 8.43 $ 10.00
------- -------
Income (Loss) from Investment
Operations:
Net Investment (Loss) -- (0.04)
Net Realized and Unrealized Gain
(Loss) on Investments 3.55 (1.46)
------- -------
Total from Investment Operations 3.55 (1.50)
------- -------
Less Distributions:
Distributions from Net Investment
Income -- (0.07)
------- -------
Net Asset Value per Share, End of
Period $ 11.98 $ 8.43
======= =======
Total Return 42.11% (2) (14.88)% (1)
Ratios/Supplemental Data:
Net Assets, End of Period (in
thousands) $39.230 $28,648
Ratio of Expenses to Average Net
Assets 1.14% (3) 1.20% (3)(4)
Ratio of Net Investment Income (Loss)
to Average Net Assets 0.01% (3) (0.48)% (3)
Portfolio Turnover Rate 65.63% (2) 178.53 % (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.
(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 October 31, 1998. 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 November 3, 1997 (Commencement of operations) through
October 31, 1998.
49
See accompanying notes to financial statements.
<PAGE>
TCW Galileo Latin America Equities Fund
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
Six Months Ten Months
Ended Year ended October 31, Ended
April 30, 1999 ----------------------------------- October
(Unaudited) 1998 1997 1996 1995 31, 1994
-------------- ------- ------- ------- ------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value per
Share, Beginning of
Period $ 8.57 $ 12.51 $ 10.01 $ 7.92 $ 14.99 $ 15.11
------ ------- ------- ------- ------- --------
Income (Loss) from
Investment Operations:
Net Investment Income 1.12 0.13 0.11 0.11 0.06 0.01
Net Realized and
Unrealized Gain (Loss)
on Investments 0.52 (3.80) 2.50 2.03 (5.92) (0.13)
------ ------- ------- ------- ------- --------
Total from Investment
Operations 1.64 (3.67) 2.61 2.14 (5.86) (0.12)
------ ------- ------- ------- ------- --------
Less Distributions:
Distributions in Excess
of Net Realized Gains -- -- -- -- (1.21) --
------ ------- ------- ------- ------- --------
Distributions from Net
Investment Income -- (0.27) (0.11) (0.05) -- --
Total Distributions -- (0.27) (0.11) (0.05) (1.21) --
------ ------- ------- ------- ------- --------
Net Asset Value per
Share, End of Period $10.21 $ 8.57 $ 12.51 $ 10.01 $ 7.92 $ 14.99
====== ======= ======= ======= ======= ========
Total Return 19.25% (2) (29.95)% 26.24% 27.08% (40.95)% (0.79)% (1)
Ratios/Supplemental
Data:
Net Assets, End of
Period (in thousands) $4,590 $11,796 $55,336 $68,323 $38,942 $122,610
Ratio of Net Expenses to
Average Net Assets 2.49% (3)(4) 1.64% 1.46% 1.44% 1.58% 1.36% (3)
Ratio of Net Investment
Income to Average Net
Assets 1.79% (3) 1.13% 0.87% 1.12% 0.59% 0.11% (3)
Portfolio Turnover Rate 38.72% (2) 32.33% 21.17% 44.32% 75.62% 143.65% (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.
(4) The Investment Adviser had voluntarily agreed to reduce its fee, or to 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, the total
annualized operating expenses, as a percentage of average net assets, would
have been 3.94% for the six months ended April 30, 1999.
50
See accompanying notes to financial statements.
