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<PAGE>
TCW GALILEO FUNDS
April 30, 2000
SEMI-ANNUAL REPORT
----------------------------------------
U.S Equities
Aggressive Growth Equities
Convertible Securities
Earnings Momentum
Large Cap Growth
Large Cap Value
Select Equities
Small Cap Growth
Value Opportunities
[LOGO OF TCW GALILEO FUNDS INC.]
<PAGE>
TCW Galileo Funds, Inc.
-------------------------------------------------------------------------------
U.S. Equities
<TABLE>
<CAPTION>
Table of Contents April 30, 2000
<S> <C>
Letter to Shareholders........................................... 1
Performance Summary.............................................. 2
Schedules of Investments:
TCW Galileo Aggressive Growth Equities Fund................. 3
TCW Galileo Convertible Securities Fund..................... 6
TCW Galileo Earnings Momentum Fund.......................... 10
TCW Galileo Large Cap Growth Fund........................... 13
TCW Galileo Large Cap Value Fund............................ 16
TCW Galileo Select Equities Fund............................ 19
TCW Galileo Small Cap Growth Fund........................... 21
TCW Galileo Value Opportunities Fund........................ 25
Statements of Assets and Liabilities............................. 28
Statements of Operations......................................... 30
Statements of Changes in Net Assets.............................. 32
Notes to Financial Statements.................................... 36
Financial Highlights............................................. 47
</TABLE>
[LOGO OF TCW GALILEO FUNDS INC.]
<PAGE>
--------------------------------------------------------------------------LOGO
To Our Shareholders
We are pleased to submit the April 30, 2000 semi-annual reports for
the TCW Galileo Funds. On the following page is an analysis of each
Fund's investment performance for a 1 year, 5 year and since inception
period through April 30, 2000.
TCW is committed to providing you with superior professional
investment management and distinctive personal service through the TCW
Galileo Funds. The Funds' long-term investment performance record is
among the best in the industry. In addition, TCW carefully monitors
each Fund's overall expense ratio to maintain their competitiveness.
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(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 2, 2000
1
<PAGE>
TCW Galileo Funds, Inc.
--------------------------------------------------------------------------------
U.S. Equities
Performance Summary (Unaudited) April 30, 2000
<TABLE>
<CAPTION>
Total Return
Annualized As of April 30, 2000
-------------------------------
Since
NAV 1-Year 5-Year Inception Inception Date
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TCW Galileo Aggressive Growth
Equities Fund -- Institutional
Class $28.54 57.52% 46.67% 44.09%/(1)/ 11/01/94/(2)/
TCW Galileo Aggressive Growth
Equities Fund -- Advisory Class $28.46 57.23% N/A 78.51% 03/01/99
TCW Galileo Convertible
Securities Fund $15.45 45.95% 22.25% 16.28%/(1)/ 01/01/89/(2)/
TCW Galileo Earnings Momentum
Fund $15.75 67.91% 18.56% 16.38%/(1)/ 05/01/93/(2)/
TCW Galileo Large Cap Growth
Fund -- Institutional Class $19.44 38.62% N/A 41.13%/(1)/ 06/19/97/(2)/
TCW Galileo Large Cap Growth
Fund -- Advisory Class $19.42 38.47% N/A 41.04% 03/01/99
TCW Galileo Large Cap Value
Fund -- Institutional Class $13.05 5.10% N/A 16.53%/(1)/ 12/01/97/(2)/
TCW Galileo Large Cap Value
Fund -- Advisory Class $13.06 4.70% N/A 15.58% 03/01/99
TCW Galileo Select Equities
Fund -- Institutional Class $25.55 41.06% 29.97% 22.34%/(1)/ 07/01/91/(2)/
TCW Galileo Select Equities
Fund -- Advisory Class $25.46 40.57% N/A 42.05% 03/01/99
TCW Galileo Small Cap Growth
Fund -- Institutional Class $38.32 75.25% 35.43% 23.88%/(1)/ 12/01/89/(2)/
TCW Galileo Small Cap Growth
Fund -- Advisory Class $38.25 75.93% N/A 77.58% 03/01/99
TCW Galileo Value Opportunities
Fund $12.62 29.11% N/A 17.99%/(1)/ 11/01/96/(2)/
</TABLE>
(1) Performance data includes the performance of the predecessor limited
partnership for periods before the TCW Galileo Funds' registration became
effective. The predecessor limited partnerships were not registered under
the Investment Company Act of 1940, as amended ("1940 Act"), and, therefore
were not subject to certain investment restrictions that are imposed by the
1940 Act. If the limited partnership had been registered under the 1940
Act, the limited partnership's performance may have been lower.
(2) Inception date of predecessor limited partnership.
2
<PAGE>
TCW Galileo Aggressive Growth Equities Fund
----------------------------------------------------------------------------LOGO
Schedule of Investments (Unaudited) April 30, 2000
<TABLE>
<CAPTION>
Number of
Shares Common Stock Value
--------- ------------ -------------
<S> <C> <C>
Advertising (0.8% of Net Assets)
26,800 DoubleClick, Inc. $ 2,033,450*
-------------
Banking & Financial Services (2.9%)
190,922 E*TRADE Group, Inc. 4,104,823*
90,085 T. Rowe Price Associates, Inc. 3,434,491
-------------
Total Banking & Financial Services 7,539,314
-------------
Commercial Services (1.6%)
1,500 Fairmarket, Inc. 10,312*
50,400 MedQuist, Inc. 1,786,050*
45,592 Paychex, Inc. 2,399,279
-------------
Total Commercial Services 4,195,641
-------------
Computer Services (18.3%)
2,200 Akamai Technologies, Inc. 217,525*
25,700 CheckFree Holdings Corp. 1,305,881*
41,400 Commerce One, Inc. 2,527,987*
18,100 Foundry Networks, Inc. 1,647,100*
23,600 Kana Communications, Inc. 1,004,475*
79,264 Portal Software, Inc. 3,636,236*
79,110 Scient Corp. 4,271,940*
73,600 StarMedia Network, Inc. 1,610,000*
110,324 VeriSign, Inc. 15,376,407*
60,000 Viant Corp. 1,380,000*
107,542 Yahoo!, Inc. 14,007,345*
-------------
Total Computer Services 46,984,896
-------------
Computer Software (18.4%)
84,200 Ariba, Inc. 6,246,587*
60,000 Healtheon/WebMD Corp. 1,263,750*
47,700 Homestore.com, Inc. 870,525*
1,900 i3 Mobile, Inc. 35,625*
36,659 Rational Software Corp. 3,120,597*
4,000 Selectica, Inc. 152,000*
200,644 Siebel Systems, Inc. 24,654,131*
15,700 Sycamore Networks, Inc. 1,232,450*
3,500 Versata, Inc. 106,312*
201,954 Vignette Corp. 9,731,658*
-------------
Total Computer Software 47,413,635
-------------
Electronics (10.7%)
57,817 Altera Corp. 5,911,788*
1,500 Avanex Corp. 182,812*
6,800 Infineon Technologies AG (ADR) 461,550*
129,636 Maxim Integrated Products, Inc. 8,402,033*
171,734 XILINX, Inc. 12,579,516*
-------------
Total Electronics 27,537,699
-------------
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
TCW Galileo Aggressive Growth Equities Fund
--------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued)
<TABLE>
<CAPTION>
Number of
Shares Value
--------- ---------------
<S> <C> <C>
Entertainment & Leisure (1.6%)
113,068 Westwood One, Inc. $ 3,999,781*
--------------
Healthcare (1.5%)
48,700 Human Genome Sciences, Inc. 3,728,594*
--------------
Insurance (1.2%)
64,059 Hartford Life, Inc. 3,154,906
--------------
Media--Broadcasting & Publishing (7.6%)
67,044 Cablevision Systems Corp. 4,538,041*
43,781 Clear Channel Communications, Inc. 3,152,232*
15,100 Cox Radio, Inc. 1,094,750*
29,800 Hispanic Broadcasting Corp. 3,011,663*
126,200 Mediacom Communications Corp. 1,561,725*
87,500 TCI Satellite Entertainment, Inc., Class A 918,750*
49,026 Univision Communications, Inc. 5,356,091*
--------------
Total Media--Broadcasting & Publishing 19,633,252
--------------
Medical Supplies (1.1%)
22,700 MiniMed, Inc. 2,790,681*
--------------
Pharmaceuticals (6.1%)
59,400 Abgenix, Inc. 5,320,013*
68,048 Andrx Corp. 3,483,207*
22,800 Genentech, Inc. 2,667,600*
21,700 Gilead Sciences, Inc. 1,175,869*
34,100 Sepracor, Inc. 3,137,200*
--------------
Total Pharmaceuticals 15,783,889
--------------
Retail (5.8%)
52,314 Amazon.com, Inc. 2,887,079*
82,925 Bed, Bath & Beyond, Inc. 3,042,311*
43,582 Ebay, Inc. 6,937,710*
39,382 Talbots, Inc. 1,991,252
--------------
Total Retail 14,858,352
--------------
Telecommunications (17.9%)
92,000 American Tower Corp. 4,278,000*
132,078 AT & T Canada, Inc. 5,629,825*
136,192 EchoStar Communications Corp. 8,673,728*
63,400 Exodus Communications, Inc. 5,606,938*
74,763 Global Crossing Ltd. 2,355,035*
37,800 Juniper Networks, Inc. 8,039,588*
158,994 McLeodUSA, Inc. 3,974,850*
89,400 Metromedia Fiber Network, Inc. 2,760,225*
17,300 Phone.com, Inc. 1,453,200*
161,200 Spectrasite Holdings, Inc. 3,385,200*
--------------
Total Telecommunications 46,156,589
--------------
Total Common Stock (Cost: $109,760,718) (95.5%) 245,810,679
--------------
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
------------------------------------------------------------------------- [LOGO]
April 30, 2000
<TABLE>
<CAPTION>
Principal
Amount Short-Term Investments Value
----------- ---------------------- -------------
<S> <C> <C>
$ 3,281,078 American Express Co., 6.063%, due 05/10/00 $ 3,281,078**
4,300,948 American Express Co., 6.09%, due 05/22/00 4,300,948**
8,162,416 American Express Co., 6.1%, due 05/01/00 8,162,416**
7,234,597 Bank of America, 6.18%, due 06/20/00 7,234,597**
2,867,295 Bank of Nova Scotia, 6.05%, due 05/08/00 2,867,295**
5,534,597 BNP Paribas, S.A., 6.05%, due 05/10/00 5,534,597**
6,524,084 Credit Agricole, 6%, due 05/03/00 6,524,084**
8,530,703 Fleet National Bank, 6.193%, due 10/31/00 8,530,703**
9,004,784 Investors Bank & Trust Depository Reserve, 4.85%,
due 05/01/00 9,004,784
11,364,147 Merrimac Money Market Fund 11,364,147**
7,116,239 Morgan Stanley Dean Witter & Co., 6.15%, due 11/22/00 7,116,239**
2,500,000 Royal Bank of Scotland, 6.23%, due 05/26/00 2,500,000**
------------
Total Short-Term Investments
(Cost: $76,420,888) (29.7%) 76,420,888
------------
Total Investments (Cost: $186,181,606) (125.2%) 322,231,567
Liabilities in Excess of Other Assets (!25.2%) (64,815,998)
------------
Net Assets (100.0%) $257,415,569
------------
</TABLE>
Notes to the Schedule of Investments:
* Non-income producing.
** Represents investments of security lending collateral (Note 3).
See accompanying notes to financial statements.
5
<PAGE>
TCW Galileo Convertible Securities Fund
--------------------------------------------------------------------------------
Schedule of Investments (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Fixed Income Securities Value
--------- ----------------------- ---------------
<S> <C> <C>
Advertising (3.5% of Net Assets)
$ 830,000 Interpublic Group of Companies, Inc., (144A), 1.87%,
due 06/01/06 $ 773,975* **
655,000 Lamar Advertising Co., 5.25%, due 09/15/06 740,150*
600,000 Young & Rubicam, Inc., 3%, due 01/15/05 591,000
---------------
Total Advertising 2,105,125
---------------
Automotive (0.5%)
365,000 Tower Automotive, Inc., 5%, due 08/01/04 308,881
---------------
Banking & Financial Services (7.5%)
220,000 Berkshire Hathaway, Inc., 1%, due 12/03/01 588,500*
1,100,000 E*TRADE Group, Inc., 6%, due 02/01/07 1,199,000
555,000 Goldman Sachs Group, Inc., 0.25%, due 12/06/04 603,562
1,080,000 Goldman Sachs Group, Inc., 0.5%, due 01/13/07 1,054,350
635,000 Pinnacle Holdings, Inc., 5.5%, due 09/15/07 575,469
480,000 UBS AG Stamford, Exchangeable Nikkei 225 Index, 0%,
due 12/11/03 518,400*
---------------
Total Banking & Financial Services 4,539,281
---------------
Building Materials (2.2%)
1,310,000 American International Group, Exchangeable Home
Depot, Inc., 1%, due 02/14/06 1,295,262
---------------
Commercial Services (1.1%)
870,000 Critical Path, Inc., 5.75%, due 04/01/05 657,937
---------------
Computer Services (2.5%)
1,060,000 IBM Credit Corp., 2%, due 02/04/03 1,225,572
540,000 Interliant, Inc., 7%, due 02/16/05 309,825
---------------
Total Computer Services 1,535,397
---------------
Computer Software (7.1%)
820,000 BEA Systems, Inc., (144A), 4%, due 12/15/06 1,262,800**
730,000 Citrix Systems, Inc., 0%, due 03/22/19 642,400*
755,000 Rational Software Corp., 5%, due 02/01/07 1,010,756
485,000 Siebel Systems, Inc., (144A), 5.5%, due 09/15/06 1,341,631* **
---------------
Total Computer Software 4,257,587
---------------
Electronics (20.4%)
1,245,000 ASM Lithography Holding NV, (144A), 4.25%, due 11/30/04* 1,526,681*
580,000 Burr-Brown Corp., 4.25%, due 02/15/07 754,725
1,500,000 Conexant Systems, Inc., 4%, due 02/01/07 1,269,375
930,000 Cypress Semiconductor Corp., 4%, due 02/01/05 1,255,500
410,000 Level One Communications, Inc., 4%, due 09/01/04 1,676,900*
1,195,000 LSI Logic Corp., 4%, due 02/15/05 1,351,844
290,000 Sanmina Corp., (144A), 4.25%, due 05/01/04 428,837**
1,825,000 Solectron Corp., 0%, due 01/27/19 1,359,625*
700,000 STMicroelectronics NV, 0%, due 09/22/09 1,194,375*
1,670,000 Vitesse Semiconductor Corp., 4%, due 03/15/05 1,450,812
---------------
Total Electronics 12,268,674
---------------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
------------------------------------------------------------------------- [LOGO]
April 30, 2000
<TABLE>
<CAPTION>
Principal
Amount Value
--------- ------------
<S> <C> <C>
Energy & Oil Services (1.2%)
$ 650,000 Kerr-McGee Corp., 5.25%, due 02/15/10 $ 702,000
------------
Financial (0.8%)
450,000 Lehman Brothers Holdings, Inc., 0%, due 07/06/04 495,000*
------------
Healthcare (2.1%)
470,000 Affymetrix, Inc., 4.75%, due 02/15/07 331,938
295,000 Affymetrix, Inc., 5%, due 10/01/06 369,488
990,000 Human Genome, Inc., 3.75%, due 03/15/07 579,150
------------
Total Healthcare 1,280,576
------------
Information Processing (0.5%)
48,895 Morgan Stanley Dean Witter & Co., Exchangeable MCI
WorldCom, Inc., 6%, due 03/15/01 317,818
------------
Insurance (1.3%)
485,000 American International Group, Inc., 2.25%, due 07/30/04 756,299*
------------
Media--Broadcasting & Publishing (9.3%)
2,340,000 Clear Channel Communications, Inc., 2.625%, due 04/01/03 2,983,500*
1,595,000 Merrill Lynch & Company, Inc., Exchangeable Time
Warner, Inc., 0.25%, due 05/10/06 1,852,194*
745,000 News America Holdings, Inc., 0%, due 03/11/13 779,926*
------------
Total Media--Broadcasting & Publishing 5,615,620
------------
Pharmaceuticals (6.3%)
1,000,000 Centocor, Inc., 4.75%, due 02/15/05 1,240,000*
15,000 Centocor, Inc., (144A), 4.75%, due 02/15/05 18,600* **
1,180,000 Roche Holdings, Inc., 0%, due 01/19/15 889,425
330,000 Sepracor, Inc., 7%, due 12/15/05 521,813*
720,000 Sepracor, Inc., (144A), 7%, due 12/15/05 1,138,500* **
------------
Total Pharmaceuticals 3,808,338
------------
Retail (2.1%)
930,000 Costco Companies, Inc., 0%, due 08/19/17 1,162,500*
75,000 Costco Companies, Inc., (144A), 0%, due 08/19/17 93,750* **
------------
Total Retail 1,256,250
------------
Telecommunications (14.4%)
1,050,000 American Tower Corp., 5%, due 02/15/10 1,118,250
785,000 Echostar Communications Corp., (144A), 4.875%,
due 01/01/07 1,193,200**
465,000 Exchangeable Certificates Corp., (144A), 0.25%,
due 07/17/06 488,250* **
795,000 Exodus Communications, Inc., (144A), 4.75%, due 07/15/08 1,103,063**
1,255,000 Juniper Networks, Inc., 4.75%, due 03/15/07 1,149,894
62,800 Merrill Lynch & Company, Inc., 5.75%, due 06/01/00 800,700
300 Morgan Stanley Dean Witter & Co., Exchangeable
Qualcomm, Inc., 7%, due 08/15/01 537,000*
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
TCW Galileo Convertible Securities Fund
--------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued)
<TABLE>
<CAPTION>
Principal
Amount Value
--------- ------------
<S> <C> <C>
Telecommunications (Continued)
$1,075,000 Nextel Communications, Inc., 5.25%, due 01/15/10 $ 1,048,125
895,000 Telefonos de Mexico, S.A. de C.V., 4.25%, due 06/15/04 1,230,625*
------------
Total Telecommunications 8,669,107
------------
Total Fixed Income Securities
(Cost: $43,233,938) (82.8%) 49,869,152
------------
Number of
Shares Convertible Preferred Stock
--------- ---------------------------
Banking & Financial Services (5.4%)
27,000 CNB Capital Trust, $1.50 897,750
15,400 Host Marriott Corp., $3.375 556,325*
13,300 National Australia Bank, $1.97 331,669
11,500 Sovereign Capital Trust II, $3.75 539,781*
10,400 Titan Capital Trust, $2.875 561,600*
13,400 Westpac Banking Corp., Ltd., $3.125 402,000
------------
Total Banking & Financial Services 3,289,125
------------
Commercial Services (2.0%)
31,900 Cendant Corp., $3.75 793,512
6,300 United Rentals, Inc., $3.25 171,675*
8,500 United Rentals, Inc., (144A), $3.25 231,625* **
------------
Total Commercial Services 1,196,812
------------
Energy & Oil Services (1.2%)
16,500 Apache Corp., $2.02 731,156
------------
Media--Broadcasting & Publishing (0.9%)
5,500 Cox Communications, Inc., $3.50 558,594
------------
Retail (0.8%)
13,600 Dollar General Corp., $3.35 462,400
------------
Telecommunications (3.1%)
2,200 Global Crossing Ltd., $16.875 552,200*
2,100 Global Crossing Ltd., (144A), $17.50 430,500**
18,600 MediaOne Group, Inc., $3.04 862,575
------------
Total Telecommunications 1,845,275
------------
Utilities (1.1%)
9,400 AES Trust III, $3.375 670,338
------------
Total Convertible Preferred Stock
(Cost: $8,467,358) (14.5%) 8,753,700
------------
Total Fixed Income and Equity Securities
(Cost: $51,701,296) (97.3%) 58,622,852
------------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
------------------------------------------------------------------------- [LOGO]
April 30, 2000
<TABLE>
<CAPTION>
Principal
Amount Short-Term Investments Value
--------- ---------------------- ------------
<S> <C> <C>
$ 678,169 American Express Co., 6.063%, due 05/10/00 $ 678,169***
235,325 American Express Co., 6.09%, due 05/22/00 235,325***
392,208 American Express Co., 6.1%, due 05/01/00 392,208***
313,767 Bank of America, 6.18%, due 06/20/00 313,767***
156,883 Bank of Nova Scotia, 6.05%, due 05/08/00 156,883***
313,767 BNP Paribas, S.A., 6.05%, due 05/10/00 313,767***
313,767 Credit Agricole, 6%, due 05/03/00 313,767***
927,881 Fleet National Bank, 6.193%, due 10/31/00 927,881***
1,513,214 Investors Bank & Trust Depository Reserve, 4.85%,
due 05/01/00 1,513,214
200,000 Merrimac Money Market Fund 200,000***
156,883 Morgan Stanley Dean Witter & Co., 6.15%, due 11/22/00 156,883***
------------
Total Short-Term Investments
(Cost: $5,201,864) (8.7%) 5,201,864
------------
Total Investments (Cost: $56,903,160) (106.0%) 63,824,716
Liabilities in Excess of Other Assets (-6.0%) (3,593,702)
------------
Net Assets (100.0%) $ 60,231,014
============
</TABLE>
Notes to the Schedule of Investments:
* Non-income producing.
** Restricted security (Note 9).
*** Represents investments of security lending collateral (Note 3).
See accompanying notes to financial statements.
9
<PAGE>
TCW Galileo Earnings Momentum Fund
--------------------------------------------------------------------------------
Schedule of Investments (Unaudited)
<TABLE>
<CAPTION>
Number of
Shares Common Stock Value
--------- ------------ -------------
<S> <C> <C>
17,400 Apparel Retailers (2.0% of Net Assets)
Factory 2-U Stores, Inc. $ 581,812*
------------
27,000 Automotive (1.6%)
Copart, Inc. 465,750*
------------
30,150 Banking & Financial Services (1.9%)
Profit Recovery Group International, Inc. 529,509*
------------
9,300 Commercial Services (15.1%)
16,400 Administaff, Inc. 374,325*
8,100 Aurora Biosciences Corp. 594,500*
6,500 Career Education Corp. 306,281*
28,000 Corporate Executive Board Co. 381,875*
12,500 First Consulting Group, Inc. 252,000*
17,200 Forrester Research, Inc. 566,406*
19,400 Intraware, Inc. 275,200*
7,600 Management Network Group, Inc. 344,350*
8,250 Optimal Robotics Corp. 323,000*
17,200 Pegasus Systems, Inc. 146,437*
14,000 ProsoftTraining.com, Inc. 288,100*
22,900 Sangamo Biosciences, Inc. 138,250*
Waste Connections, Inc. 286,250*
------------
Total Commercial Services 4,276,974
------------
10,200 Computer Services (11.6%)
15,400 Aspen Technologies, Inc. 360,825*
11,500 Breakaway Solutions, Inc. 406,175*
24,900 Digimarc Corp. 265,219*
12,700 Evolving Systems, Inc. 211,650*
11,000 Interlink Electronics, Inc. 381,000*
12,200 NetSolve, Inc. 324,500*
9,200 PEC Solutions, Inc. 108,275*
10,400 Primus Knowledge Solutions, Inc. 342,125*
14,000 Project Software & Development, Inc. 317,200*
23,700 PSW Technologies, Inc. 318,500*
Telescan, Inc. 234,037*
------------
Total Computer Services 3,269,506
------------
22,400 Computer Software (16.0%)
19,700 Braun Consulting, Inc. 560,000*
18,400 Brio Technology, Inc. 487,575*
13,200 Broadbase Software, Inc. 290,950*
17,500 DigitalThink, Inc. 265,650*
7,900 Embarcadero Technologies, Inc. 262,500*
20,700 Great Plains Software, Inc. 334,269*
7,400 iManage, Inc. 196,650*
5,900 Informatica Corp. 310,337*
17,400 Mercator Software, Inc. 217,194*
17,800 Moldflow Corp. 321,900*
ONYX Software Corp. 379,363*
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
------------------------------------------------------------------------- [LOGO]
April 30, 2000
<TABLE>
<CAPTION>
Number of
Shares Value
--------- -------------
<S> <C> <C>
Computer Software (Continued)
23,100 SkillSoft Corp. $ 307,519*
16,200 SmartDisk Corp. 411,075*
26,000 Webhire, Inc. 195,000*
-------------
Total Computer Software 4,539,982
-------------
Electrical Equipment (2.1%)
15,900 Aeroflex, Inc. 592,275*
-------------
Electronics (0.8%)
6,100 Cymer, Inc. 238,281*
-------------
Energy & Oil Services (2.9%)
22,300 Nuevo Energy Co., Inc. 390,250*
25,100 Tuboscope, Inc. 436,113*
-------------
Total Energy & Oil Services 826,363
-------------
Entertainment & Leisure (3.1%)
22,000 JAKKS Pacific, Inc. 404,250*
9,500 Macrovision Corp. 464,313*
-------------
Total Entertainment & Leisure 868,563
-------------
Foods, Hotels & Restaurants (2.5%)
20,500 BUCA, Inc. 308,781*
11,300 P.F. Chang's China Bistro, Inc. 395,500*
-------------
Total Foods, Hotels & Restaurants 704,281
-------------
Healthcare (2.3%)
14,400 Accredo Health, Inc. 405,000*
23,300 Eclipsys Corp. 186,400*
12,100 Laser Vision Centers, Inc. 49,156*
-------------
Total Healthcare 640,556
-------------
Machinery (1.3%)
28,900 Varco International, Inc. 361,250*
-------------
Media--Broadcasting & Publishing (1.1%)
15,400 Wink Communications, Inc. 304,150*
-------------
Medical Supplies (5.5%)
5,000 ArthroCare Corp. 509,375*
11,000 Nanometrics, Inc. 422,125*
10,400 Rudolph Technologies, Inc. 315,900*
10,900 Ventana Medical Systems, Inc. 307,244*
-------------
Total Medical Supplies 1,554,644
-------------
Pharmaceuticals (11.1%)
18,000 Biomatrix, Inc. 343,125*
34,000 Columbia Laboratories, Inc. 320,875*
11,600 Corixa Corp. 356,700*
13,600 Emisphere Technologies, Inc. 558,238*
19,600 Lynx Therapeutics, Inc. 470,400*
5,600 Medarex, Inc. 296,800*
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
TCW Galileo Earnings Momentum Fund
--------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued)
<TABLE>
<CAPTION>
Number of
Shares Value
---------- -------------
<S> <C> <C>
Pharmaceuticals (Continued)
8,800 Pharmacyclics, Inc. $ 399,300*
-------------
12,100 Titan Pharmaceuticals, Inc. 387,200*
-------------
Total Pharmaceuticals 3,132,638
-------------
Pollution Control (2.7%)
36,500 Stericycle, Inc. 766,500*
-------------
Retail (5.0%)
13,399 99 Cents Only Stores 504,137*
25,300 Charlotte Russe Holding, Inc. 278,300*
15,100 Insight Enterprises, Inc. 631,369*
-------------
Total Retail 1,413,806
-------------
Telecommunications (4.9%)
22,700 Data Critical Corp. 263,888*
17,600 Lightbridge, Inc. 369,600*
11,200 MCK Communications, Inc. 350,000*
8,300 Tut Systems, Inc. 398,400*
-------------
Total Telecommunications 1,381,888
-------------
Textiles, Clothing & Fabrics (1.3%)
33,800 Warnaco Group, Inc. 359,125
-------------
Transportation (1.0%)
21,400 Covenant Transport, Inc., Class A 282,213*
-------------
Total Common Stock (Cost: $28,323,614) (95.8%) 27,090,066
-------------
Principal
Amount Short-Term Investments
---------- ----------------------
$ 129,451 American Express Co., 6.063%, due 05/10/00 129,451**
129,451 American Express Co., 6.09%, due 05/22/00 129,451**
1,007,355 American Express Co., 6.1%, due 05/01/00 1,007,355**
172,601 Bank of America, 6.18%, due 06/20/00 172,601**
86,300 Bank of Nova Scotia, 6.05%, due 05/08/00 86,300**
172,601 BNP Paribas, S.A., 6.05%, due 05/10/00 172,601**
331,341 Fleet National Bank, 6.193%, due 10/31/00 331,341**
1,417,784 Investors Bank & Trust Depository Reserve, 4.85%,
due 05/01/00 1,417,784
-------------
Total Short-Term Investments
(Cost: $3,446,884) (12.2%) 3,446,884
-------------
Total Investments (Cost: $31,770,498) (108.0%) 30,536,950
Liabilities in Excess of Other Assets (-8.0%) (2,251,363)
-------------
Net Assets (100.0%) $ 28,285,587
=============
</TABLE>
Notes to the Schedule of Investments:
* Non-income producing.
** Represents investments of security lending collateral (Note 3).
See accompanying notes to financial statements.
12
<PAGE>
TCW Galileo Large Cap Growth Fund
------------------------------------------------------------------------- [LOGO]
Schedule of Investments (Unaudited) April 30, 2000
<TABLE>
<CAPTION>
Number of
Shares Common Stock Value
--------- ------------ ------------
<S> <C> <C>
Advertising (1.5% of Net Assets)
5,100 Omnicom Group, Inc. $ 464,419
------------
Banking & Financial Services (1.6%)
11,500 Schwab (Charles) Corp. 511,750
------------
Beverages, Food & Tobacco (5.0%)
4,500 Anheuser-Busch Companies, Inc. 317,531
12,300 Coca-Cola Co. 578,869
4,200 General Mills, Inc. 152,775
4,000 Heinz (H.J.) Co. 136,000
13,900 Ralston Purina Co. 245,856
2,000 Wrigley (WM) Jr. Co. 144,750
------------
Total Beverages, Food & Tobacco 1,575,781
------------
Computer Services (20.0%)
33,800 Cisco Systems, Inc. 2,343,290*
6,700 EMC Corp. 930,881*
9,300 International Business Machines Corp. 1,038,112
4,200 Scient Corp. 226,800*
9,400 Sun Microsystems, Inc. 864,212*
2,400 VeriSign, Inc. 334,500*
4,000 Yahoo!, Inc. 521,000*
------------
Total Computer Services 6,258,795
------------
Computer Software (9.1%)
4,400 Ariba, Inc. 326,425*
10,400 Microsoft Corp. 725,400*
15,200 Oracle Corp. 1,215,050*
2,400 Siebel Systems, Inc. 294,900*
6,000 Vignette Corp. 289,125*
------------
Total Computer Software 2,850,900
------------
Cosmetics & Household Products (2.0%)
4,100 Clorox Co. 150,675
2,600 Colgate-Palmolive Co. 148,525
1,600 Corning, Inc. 316,000
------------
Total Cosmetics & Household Products 615,200
------------
Electrical Equipment (8.4%)
16,750 General Electric Co. 2,633,937
------------
Electronics (13.3%)
3,600 Applied Materials, Inc. 366,525*
17,950 Intel Corp. 2,276,284
5,600 Maxim Integrated Products, Inc. 362,950*
4,800 Texas Instruments, Inc. 781,800
5,100 XILINX, Inc. 373,575*
------------
Total Electronics 4,161,134
------------
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
TCW Galileo Large Cap Growth Fund
--------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued)
<TABLE>
<CAPTION>
Number of
Shares Value
--------- --------------
<S> <C> <C>
Foods, Hotels & Restaurants (1.3%)
2,900 Bestfoods $ 145,725
7,200 PepsiCo., Inc. 264,150
--------------
Total Foods, Hotels & Restaurants 409,875
--------------
Media--Broadcasting & Publishing (4.9%)
11,600 AT&T Corp. - Liberty Media Group, Class A 579,275*
6,150 Clear Channel Communications, Inc. 442,800*
12,200 Cox Communications, Inc. 522,312*
--------------
Total Media--Broadcasting & Publishing 1,544,387
--------------
Medical Supplies (1.7%)
8,200 Medtronic, Inc. 425,887
1,800 PE Corp. - PE Biosystems Group 108,000
--------------
Total Medical Supplies 533,887
--------------
Paper & Forest Products (0.5%)
2,600 Kimberly-Clark Corp. 150,963
--------------
Pharmaceuticals (12.4%)
1,400 Abgenix, Inc. 125,388*
11,700 Amgen, Inc. 655,200*
1,100 Genentech, Inc. 128,700*
6,000 Lilly (Eli) & Co. 463,875
28,850 Pfizer, Inc. 1,215,306
14,050 Schering-Plough Corp. 566,391
6,300 Warner-Lambert Co. 717,019
--------------
Total Pharmaceuticals 3,871,879
--------------
Retail (6.9%)
2,900 Best Buy Co., Inc. 234,175*
5,400 Costco Wholesale Corp. 291,938*
8,175 Home Depot, Inc. 458,311
21,400 Wal-Mart Stores, Inc. 1,185,025
--------------
Total Retail 2,169,449
--------------
Telecommunications (9.8%)
1,600 Juniper Networks, Inc. 340,300*
4,900 Nextel Communications, Inc., Class A 536,244*
10,000 Nortel Networks Corp. 1,132,500
3,800 Qualcomm, Inc. 412,063*
5,600 Sprint Corp. (PCS Group) 308,000*
7,625 Vodafone AirTouch PLC (ADR) 358,375
--------------
Total Telecommunications 3,087,482
--------------
Total Common Stock (Cost: $21,545,884) (98.4%) 30,839,838
--------------
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
------------------------------------------------------------------------- [LOGO]
April 30, 2000
<TABLE>
<CAPTION>
Principal
Amount Short-Term Investments Value
--------- ---------------------- --------------
<S> <C> <C>
$ 154,323 American Express Co., 6.063%, due 05/10/00 $ 154,323**
154,323 American Express Co., 6.09%, due 05/22/00 154,323**
257,206 American Express Co., 6.1%, due 05/01/00 257,206**
205,765 Bank of America, 6.18%, due 06/20/00 205,765**
102,882 Bank of Nova Scotia, 6.05%, due 05/08/00 102,882**
205,765 BNP Paribas, S.A., 6.05%, due 05/10/00 205,765**
205,765 Credit Agricole, 6%, due 05/03/00 205,765**
530,941 Fleet National Bank, 6.193%, due 10/31/00 530,941**
548,517 Investors Bank & Trust Depository Reserve, 4.85%,
due 05/01/00 548,517
602,005 Merrimac Money Market Fund 602,005**
------------
Total Short-Term Investments (Cost: $2,967,492) (9.4%) 2,967,492
------------
Total Investments (Cost: $24,513,376) (107.8%) 33,807,330
Liabilities in Excess of Other Assets (-7.8%) (2,458,490)
------------
Net Assets (100.0%) $ 31,348,840
============
</TABLE>
Notes to the Schedule of Investments:
* Non-income producing.
** Represents investments of security lending collateral (Note 3).
See accompanying notes to financial statements
15
<PAGE>
TCW Galileo Large Cap Value Fund
--------------------------------------------------------------------------------
Schedule of Investments (Unaudited)
<TABLE>
<CAPTION>
Number of
Shares Common Stock Value
---------- ------------ -----------
<S> <C> <C>
Aerospace/Defense (2.9% of Net Assets)
12,200 Boeing Co. $ 484,187
1,425 Honeywell International, Inc. 79,800
37,700 Raytheon Co., Class B 836,469
16,200 United Technologies Corp. 1,007,437
-----------
Total Aerospace/Defense 2,407,893
-----------
Automotive (5.2%)
16,200 Ford Motor Co. 885,937
36,600 General Motors Corp. 3,426,675
-----------
Total Automotive 4,312,612
-----------
Banking (6.9%)
20,100 BankAmerica Corp. 984,900
44,900 Capital One Financial Corp. 1,964,375
11,800 Chase Manhattan Corp. 850,337
8,300 Fifth Third Bancorp 523,937
33,600 Wells Fargo & Co. 1,379,700
-----------
Total Banking 5,703,249
-----------
Banking & Financial Services (16.4%)
5,400 American Express Co. 810,337
21,200 Associates First Capital Corp., Class A 470,375
54,850 Citigroup, Inc. 3,260,147
18,200 Federal Home Loan Mortgage Corp. 836,062
19,700 Federal National Mortgage Association 1,188,156
2,400 Golden West Financial Corp. 81,900
15,400 Household International, Inc. 642,950
9,400 J.P. Morgan & Company, Inc. 1,206,725
10,800 Merrill Lynch & Company, Inc. 1,100,925
31,800 Morgan Stanley Dean Witter & Co. 2,440,650
21,700 Schwab (Charles) Corp. 965,650
14,200 T. Rowe Price Associates, Inc. 541,375
-----------
Total Banking & Financial Services 13,545,252
-----------
Chemicals (2.5%)
2,900 Dow Chemical Co. 327,700
62,700 Occidental Petroleum Corp. 1,344,131
8,197 Pharmacia Corp. 409,338
-----------
Total Chemicals 2,081,169
-----------
Computer Services (5.3%)
80,000 Compaq Computer Corp. 2,340,000
14,800 Hewlett-Packard Co. 1,998,000
-----------
Total Computer Services 4,338,000
-----------
Cosmetics & Household Products (1.0%)
22,800 Gillette Co. 843,600
-----------
Electronics (7.1%)
2,800 Emerson Electric Co. 153,650
</TABLE>
See accompanying notes to financial statements.
16
<PAGE>
-------------------------------------------------------------------------[LOGO]
April 30, 2000
<TABLE>
<CAPTION>
Number of
Shares Value
---------- -----------
<S> <C> <C>
Electronics (Continued)
20,000 General Motors Corp., Class H $ 1,926,250*
12,900 Motorola, Inc. 1,535,906
13,800 Texas Instruments, Inc. 2,247,675
-----------
Total Electronics 5,863,481
-----------
Energy & Oil Services (16.5%)
66,200 Baker Hughes, Inc. 2,105,987
2,900 Chevron Corp. 246,863
13,300 Enron Corp. 926,844
61,273 Exxon Mobil Corp. 4,760,146
24,700 Halliburton Co. 1,091,431
29,200 Royal Dutch Petroleum Co. (NY Shares) 1,675,350
57,700 Santa Fe International Corp. 1,983,438
18,249 Transocean Sedco Forex, Inc. 857,703
-----------
Total Energy & Oil Services 13,647,762
-----------
Entertainment & Leisure (2.9%)
21,500 Harrah's Entertainment, Inc. 442,094*
44,900 The Walt Disney Co. 1,944,731
-----------
Total Entertainment & Leisure 2,386,825
-----------
Foods, Hotels & Restaurants (5.8%)
47,900 McDonald's Corp. 1,826,188
88,900 Mirage Resorts, Inc. 1,811,338*
12,300 PepsiCo., Inc. 451,256
21,215 Tricon Global Restaurants, Inc. 723,962*
-----------
Total Foods, Hotels & Restaurants 4,812,744
-----------
Insurance (9.1%)
72,300 Allstate Corp. 1,708,088
22,700 American International Group, Inc. 2,489,906
16,300 Marsh & McLennan Companies, Inc. 1,606,569
26,100 Progressive Corp. 1,707,919
-----------
Total Insurance 7,512,482
-----------
Machinery (2.7%)
54,700 Deere & Co. 2,208,513
-----------
Metals (0.5%)
6,900 Alcoa, Inc. 447,638
-----------
Paper & Forest Products (0.9%)
29,600 Fort James Corp. 708,550
-----------
Pharmaceuticals (1.3%)
19,800 American Home Products Corp. 1,112,513
-----------
Telecommunications (9.7%)
12,300 ALLTEL Corp. 819,488
31,600 AT&T Corp. 1,475,325
24,200 Bell Atlantic Corp. 1,433,850
</TABLE>
See accompanying notes to financial statements.
17
<PAGE>
TCW Galileo Large Cap Value Fund
--------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued)
<TABLE>
<CAPTION>
Number of
Shares Value
-------- -----------
<S> <C> <C>
Telecommunications (Continued)
24,700 BellSouth Corp. $ 1,202,581
16,800 GTE Corp. 1,138,200
12,700 Sprint Corp. (FON Group) 781,050
31,900 Williams Communications Group, Inc. 1,180,300*
-----------
Total Telecommunications 8,030,794
-----------
Transportation (2.2%)
82,900 Southwest Airlines, Inc. 1,797,894
-----------
Total Common Stock (Cost: $71,348,210) (98.9%) 81,760,971
-----------
Principal
Amount Short-Term Investments
---------- ----------------------
$ 535,196 American Express Co., 6.063%, due 05/10/00 535,196**
535,196 American Express Co., 6.09%, due 05/22/00 535,196**
891,994 American Express Co., 6.1%, due 05/01/00 891,994**
713,595 Bank of America, 6.18%, due 06/20/00 713,595**
356,798 Bank of Nova Scotia, 6.05%, due 05/08/00 356,798**
588,595 BNP Paribas, S.A., 6.05%, due 05/10/00 588,595**
893,784 Credit Agricole, 6%, due 05/03/00 893,784**
1,274,821 Fleet National Bank, 6.193%, due 10/31/00 1,274,821**
833,923 Investors Bank & Trust Depository Reserve, 4.85%,
due 05/01/00 833,923
2,242,273 Merrimac Money Market Fund 2,242,273**
356,798 Morgan Stanley Dean Witter & Co., 6.15%, due 11/22/00 356,798**
-----------
Total Short-Term Investments
(Cost: $9,222,973) (11.1%) 9,222,973
-----------
Total Investments (Cost: $80,571,183) (110.0%) 90,983,944
Liabilities in Excess of Other Assets (-10.0%) (8,290,231)
-----------
Net Assets (100.0%) $82,693,713
===========
</TABLE>
Notes to the Schedule of Investments:
* Non-income producing.
** Represents investments of security lending collateral (Note 3).
See accompanying notes to financial statements.
18
<PAGE>
TCW Galileo Large Cap Value Fund
--------------------------------------------------------------------------[LOGO]
Schedule of Investments (Unaudited) April 30, 2000
<TABLE>
<CAPTION>
Number of
Shares Common Stock Value
---------- ------------ ------------
<S> <C> <C>
Banking & Financial Services (9.2% of Net Assets)
206,678 Providian Financial Corp. $ 18,200,581
407,913 Schwab (Charles) Corp. 18,152,128
144,959 T. Rowe Price Associates, Inc. 5,526,562
------------
Total Banking & Financial Services 41,879,271
------------
Commercial Services (3.7%)
321,470 Paychex, Inc. 16,917,359
------------
Computer Services (12.5%)
340,426 Cisco Systems, Inc. 23,601,088*
658,161 Dell Computer Corp. 32,990,320*
------------
Total Computer Services 56,591,408
------------
Computer Software (7.4%)
150,301 Microsoft Corp. 10,483,495*
187,656 Siebel Systems, Inc. 23,058,231*
------------
Total Computer Software 33,541,726
------------
Cosmetics & Household Products (3.0%)
221,429 Gillette Co. 8,192,873
90,098 Procter & Gamble Co. 5,372,093
------------
Total Cosmetics & Household Products 13,564,966
------------
Electronics (14.4%)
181,550 Applied Materials, Inc. 18,484,059*
179,220 Intel Corp. 22,727,336
366,366 Maxim Integrated Products, Inc. 23,745,096*
------------
Total Electronics 64,956,491
------------
Foods, Hotels & Restaurants (2.0%)
436,416 Mirage Resorts, Inc. 8,891,976*
------------
Insurance (8.2%)
109,573 American International Group, Inc. 12,018,788
380,898 Progressive Corp. 24,925,013
------------
Total Insurance 36,943,801
------------
Media--Broadcasting & Publishing (4.1%)
180,121 Cox Communications, Inc. 7,711,430*
287,836 Pixar, Inc. 10,703,901*
------------
Total Media--Broadcasting & Publishing 18,415,331
------------
Medical Supplies (2.4%)
209,807 Medtronic, Inc. 10,896,851
------------
Pharmaceuticals (13.4%)
271,772 Amgen, Inc. 15,219,232*
252,621 Biogen, Inc. 14,857,273*
99,000 Lilly (Eli) & Co. 7,653,938
</TABLE>
See accompanying notes to financial statements.
19
<PAGE>
TCW Galileo Select Equities Fund
--------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued)
<TABLE>
<CAPTION>
Number of
Shares Value
----------- ------------
<S> <C> <C>
Pharmaceuticals (Continued)
420,470 Pfizer, Inc. $ 17,712,299
46,469 Warner-Lambert Co. 5,288,753
------------
Total Pharmaceuticals 60,731,495
------------
Retail (9.3%)
356,396 Home Depot, Inc. 19,980,451
229,529 Safeway, Inc. 10,127,967*
214,700 Wal-Mart Stores, Inc. 11,889,013
------------
Total Retail 41,997,431
------------
Telecommunications (1.9%)
136,086 Lucent Technologies, Inc. 8,462,848
------------
Transportation (7.8%)
287,219 Kansas City Southern Industries, Inc. 20,643,866
669,600 Southwest Airlines, Inc. 14,521,950
------------
Total Transportation 35,165,816
------------
Total Common Stock (Cost: $306,326,083) (99.3%) 448,956,770
------------
Principal
Amount Short-Term Investments
----------- ----------------------
$ 702,353 American Express Co., 6.063%, due 05/10/00 702,353**
1,938,791 American Express Co., 6.09%, due 05/22/00 1,938,791**
2,174,767 American Express Co., 6.1%, due 05/01/00 2,174,767**
2,585,055 Bank of America, 6.18%, due 06/20/00 2,585,055**
1,292,527 Bank of Nova Scotia, 6.05%, due 05/08/00 1,292,527**
1,385,055 BNP Paribas, S.A., 6.05%, due 05/10/00 1,385,055**
1,110,959 Credit Agricole, 6%, due 05/03/00 1,110,959**
5,052,545 Fleet National Bank, 6.193%, due 10/31/00 5,052,545**
13,645,792 Merrimac Money Market Fund 13,645,792**
502,147 Morgan Stanley Dean Witter & Co., 6.15%, due 11/22/00 502,147**
------------
Total Short-Term Investments
(Cost: $30,389,991) (6.7%) 30,389,991
------------
Total Investments (Cost: $336,716,074) (106.0%) 479,346,761
Liabilities in Excess of Other Assets (!6.0%) (27,267,983)
------------
Net Assets (100.0%) $452,078,778
============
</TABLE>
Notes to the Schedule of Investments:
* Non-income producing.
** Represents investments of security lending collateral (Note 3).
See accompanying notes to financial statements.
20
<PAGE>
TCW Galileo Small Cap Growth Fund
------------------------------------------------------------------------ [LOGO]
<TABLE>
<CAPTION>
Schedule of Investments (Unaudited) April 30, 2000
Number of
Shares Common Stock Value
---------- ------------ -------------
<S> <C> <C>
Advertising (0.5% of Net Assets)
73,200 MyPoints.com, Inc. $ 1,281,000*
49,900 Ventiv Health, Inc. 527,069*
-------------
Total Advertising 1,808,069
-------------
Banking (0.4%)
141,600 NextCard, Inc. 1,495,650*
-------------
Banking & Financial Services (0.3%)
59,320 E*TRADE Group, Inc. 1,275,380*
-------------
Commercial Services (7.3%)
42,400 Aurora Biosciences Corp. 1,537,000*
76,400 Corporate Executive Board Co. 4,488,500*
37,000 Diamond Tech Partners, Inc. 2,927,625*
123,600 GoTo.com, Inc. 4,217,850*
187,500 HNC Software, Inc. 9,281,250*
195,400 HotJobs.com, Ltd. 2,271,525*
117,400 iPrint.com, Inc. 557,650*
59,700 Navisite, Inc. 2,772,319*
-------------
Total Commercial Services 28,053,719
-------------
Computer Services (18.3%)
95,400 About.com 3,273,428*
37,300 Agile Software Corp. 1,382,431*
39,000 ArrowPoint Communications, Inc. 3,822,000*
20,500 Certicom Corp. 1,044,606*
43,900 CheckFree Holdings Corp. 2,230,669*
51,700 Critical Path, Inc. 3,005,062*
66,000 Digex, Inc. 5,148,000*
127,100 eLoyalty Corp. 2,089,206*
4,800 Exchange Applications, Inc. 58,500*
211,200 InfoSpace.com, Inc. 15,166,800*
61,100 Macromedia, Inc. 5,315,700*
73,500 Mercury Interactive Corp. 6,615,000*
1,300 Nuance Communications, Inc. 39,244*
105,800 Predictive Systems, Inc. 4,985,825*
72,600 Proxicom, Inc. 2,482,012*
4,100 Register.com, Inc. 221,400*
35,400 Scient Corp. 1,911,600*
71,400 VeriSign, Inc. 9,951,375*
89,400 Viant Corp. 2,056,200*
-------------
Total Computer Services 70,799,058
-------------
</TABLE>
See accompanying notes to financial statements.
21
<PAGE>
TCW Galileo Small Cap Growth Fund
--------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued)
<TABLE>
<CAPTION>
Number of
Shares Value
----------- ------------
<S> <C> <C>
Computer Software (19.1%)
249,700 Citrix Systems, Inc. $ 15,247,306*
103,500 Extensity, Inc. 1,267,875*
3,100 i3 Mobile, Inc. 58,125*
47,300 Informatica Corp. 1,983,644*
12,600 Interwoven, Inc. 872,550*
28,600 Keynote Systems, Inc. 1,283,425*
138,300 McAfee.com Corp. 2,402,962*
169,300 Peregrine Systems, Inc. 4,073,781*
77,800 Quest Software, Inc. 2,932,087*
153,300 Razorfish, Inc. 2,903,119*
31,400 Saba Software, Inc. 892,937*
62,600 Selectica, Inc. 2,378,800*
157,700 Siebel Systems, Inc. 19,377,387*
58,700 SmartForce PLC (ADR) 2,802,925*
39,600 Software.com, Inc. 3,202,650*
108,500 Tibco Software, Inc. 9,663,281*
23,700 Versata, Inc. 719,888*
36,000 Vignette Corp. 1,734,750*
------------
Total Computer Software 73,797,492
------------
Electronics (10.1%)
36,200 Cobalt Networks, Inc. 1,144,825*
38,200 Cymer, Inc. 1,492,188*
4,700 Exar Corp. 376,808*
125,900 Maxim Integrated Products, Inc. 8,159,894*
97,000 Micrel, Inc. 8,390,500*
121,600 Semtech Corp. 8,291,600*
68,800 Silicon Image, Inc. 2,760,600*
42,350 Transwitch Corp. 3,729,447*
66,100 Varian Semiconductor Equipment Associates, Inc. 4,445,225*
------------
Total Electronics 38,791,087
------------
Entertainment & Leisure (6.0%)
238,900 Gemstar International Group, Ltd. 11,049,125*
163,900 Macrovision Corp. 8,010,613*
117,500 Westwood One, Inc. 4,156,563*
------------
Total Entertainment & Leisure 23,216,301
------------
Healthcare (1.4%)
182,150 Dendrite International, Inc. 4,166,681*
50,200 Trizetto Group, Inc. 1,066,750*
------------
Total Healthcare 5,233,431
------------
</TABLE>
See accompanying notes to financial statements.
22
<PAGE>
------------------------------------------------------------------------ [LOGO]
<TABLE>
<CAPTION>
April 30, 2000
Number of
Shares Value
--------- --------------
<S> <C> <C>
Media--Broadcasting & Publishing (5.5%)
47,400 Citadel Communications, Corp. $ 1,851,563*
81,400 Cox Radio, Inc. 5,901,500*
87,400 Emmis Communications Corp. 3,714,500*
36,900 Entercom Communications Corp. 1,568,250*
20,100 Pegasus Communications Corp. 2,193,413*
97,000 Radio One, Inc. 5,626,000*
15,800 Spanish Broadcasting System, Inc. 295,263*
--------------
Total Media--Broadcasting & Publishing 21,150,489
--------------
Pharmaceuticals (6.7%)
85,200 Alkermes, Inc. 4,536,900*
94,300 Andrx Corp. 4,826,981*
44,100 Emisphere Technologies, Inc. 1,810,168*
84,200 ImClone Systems, Inc. 7,662,200*
60,000 Medarex, Inc. 3,180,000*
19,400 Protein Design Labs, Inc. 1,969,100*
59,600 Titan Pharmaceuticals, Inc. 1,907,200*
--------------
Total Pharmaceuticals 25,892,549
--------------
Retail (3.7%)
101,250 Cost Plus, Inc. 3,094,453*
37,925 Dollar Tree Stores, Inc. 2,194,909*
216,600 Linens 'N Things, Inc. 6,687,525*
64,300 Pacific Sunwear of California, Inc. 2,190,219*
--------------
Total Retail 14,167,106
--------------
Telecommunications (16.1%)
75,800 AT & T Canada, Inc. 3,230,975*
231,384 CSG Systems International, Inc. 10,672,587*
294,500 Exodus Communications, Inc. 26,044,844*
85,700 Lifeminders.com, Inc. 3,802,938*
48,600 Netro Corp. 2,095,875*
179,700 Network Plus Corp. 3,414,300*
62,600 Polycom, Inc. 4,953,225*
7,100 Powerwave Technologies, Inc. 1,477,244*
175,300 Verio, Inc. 6,584,706*
--------------
Total Telecommunications 62,276,694
--------------
Utilities (1.2%)
119,600 Independent Energy Holdings PLC (ADR) 4,664,400*
--------------
Total Common Stock (Cost: $232,190,580) (96.6%) 372,621,425
--------------
</TABLE>
See accompanying notes to financial statements.
23
<PAGE>
TCW Galileo Small Cap Growth Fund
-------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued)
<TABLE>
<CAPTION>
Principal
Amount Short-Term Investments Value
----------- ---------------------- -----------
<S> <C> <C>
$ 5,267,786 American Express Co., 6.063%, due 05/10/00 $ 5,267,786**
4,460,782 American Express Co., 6.09%, due 05/22/00 4,460,782**
8,415,933 American Express Co., 6.1%, due 05/01/00 8,415,933**
5,947,705 Bank of America, 6.18%, due 06/20/00 5,947,705**
2,973,853 Bank of Nova Scotia, 6.05%, due 05/08/00 2,973,853**
9,672,705 BNP Paribas, S.A., 6.05%, due 05/10/00 9,672,705**
7,566,705 Credit Agricole, 6%, due 05/03/00 7,566,705**
7,702,523 Fleet National Bank, 6.193%, due 10/31/00 7,702,523**
40,132,976 Investors Bank & Trust Depository Reserve, 4.85%,
due 05/01/00 40,132,976
13,432,045 Merrimac Money Market Fund 13,432,045**
481,403 Morgan Stanley Dean Witter & Co., 6.15%, due 11/22/00 481,403**
4,000,000 Royal Bank of Scotland, 6.23%, due 05/26/00 4,000,000**
------------
Total Short-Term Investments
(Cost: $110,054,416) (28.5%) 110,054,416
------------
Total Investments (Cost: $342,244,996) (125.1%) 482,675,841
Liabilities in Excess of Other Assets (-25.1%) (96,773,543)
------------
Net Assets (100.0%) $385,902,298
============
</TABLE>
Notes to the Schedule of Investments:
* Non-income producing.
** Represents investments of security lending collateral (Note 3).
See accompanying notes to financial statements.
24
<PAGE>
TCW Galileo Value Opportunities Fund
--------------------------------------------------------------------------[LOGO]
Schedule of Investments (Unaudited) April 30, 2000
<TABLE>
<CAPTION>
Number of
Shares Common Stock Value
--------- ------------ -------------
<S> <C> <C>
Automotive (2.4% of Net Assets)
25,800 ITT Industries, Inc. $ 814,312
-------------
Banking (5.9%)
20,100 Astoria Financial Corp. 554,006
31,451 Hudson United Bancorp 709,613
56,300 Peoples Heritage Financial Group, Inc. 735,419*
-------------
Total Banking 1,999,038
-------------
Beverages, Food & Tobacco (1.9%)
43,100 Flowers Industries, Inc. 657,275
-------------
Building Materials (4.8%)
16,800 Martin Marietta Materials, Inc. 890,400
6,400 Southdown, Inc. 372,000
8,100 Vulcan Materials Co. 354,881
-------------
Total Building Materials 1,617,281
-------------
Chemicals (5.1%)
46,800 CK Witco Corp. 549,900*
25,400 Minerals Technologies, Inc. 1,174,750
-------------
Total Chemicals 1,724,650
-------------
Commercial Services (5.6%)
25,400 Dun & Bradstreet Corp. 765,175
35,700 Jacobs Engineering Group 1,117,856*
-------------
Total Commercial Services 1,883,031
-------------
Computer Services (11.0%)
54,200 Ceridian Corp. 1,175,462*
33,600 Complete Business Solutions, Inc. 768,600*
21,800 Keane, Inc. 629,475*
22,200 Mentor Graphics Corp. 291,375*
15,900 NCR Corp. 614,137*
83,400 Read-Rite Corp. 250,200*
-------------
Total Computer Services 3,729,249
-------------
Computer Software (5.0%)
23,100 PeopleSoft, Inc. 321,956*
84,000 Transaction Systems Architects, Inc., Class A 1,370,250*
-------------
Total Computer Software 1,692,206
-------------
Construction (2.1%)
38,500 Lennar Corp. 717,062
-------------
Electrical Equipment (1.0%)
10,600 Thomas & Betts Corp. 326,612
-------------
Electronics (9.7%)
18,600 Anixter International, Inc. 626,588*
28,400 Arrow Electronics, Inc. 1,244,275*
4,800 Millipore Corp. 344,100
</TABLE>
See accompanying notes to financial statements.
25
<PAGE>
TCW Galileo Value Opportunities Fund
-------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued)
<TABLE>
<CAPTION>
Number of
Shares Value
--------- -------------
<S> <C> <C>
Electronics (Continued)
15,750 Molex, Inc., Class A $ 630,000
5,350 Vishay Intertechnology, Inc. 448,731*
-------------
Total Electronics 3,293,694
-------------
Energy & Oil Services (3.9%)
8,900 Anadarko Petroleum Corp. 386,594
41,800 Pride International, Inc. 945,725*
-------------
Total Energy & Oil Services 1,332,319
-------------
Food Retailers (2.0%)
20,300 Albertson's, Inc. 661,019
-------------
Foods, Hotels & Restaurants (1.8%)
25,300 Dean Foods Co. 619,850
-------------
Healthcare (7.3%)
73,600 Henry Schein, Inc. 1,029,252*
94,100 Omnicare, Inc. 1,429,144
-------------
Total Healthcare 2,458,396
-------------
Insurance (0.9%)
21,200 Old Republic International Corp. 302,100
-------------
Machinery (9.9%)
39,345 Albany International Corp., Class A 597,552*
24,000 Applied Power, Inc. 687,000
34,200 Crane Co. 919,125
42,700 Hussmann International, Inc. 592,463
39,100 Unova, Inc. 547,400*
-------------
Total Machinery 3,343,540
-------------
Media--Broadcasting & Publishing (5.6%)
27,800 Meredith Corp. 773,188
35,300 Readers Digest Association, Inc., Class A 1,129,600
-------------
Total Media--Broadcasting & Publishing 1,902,788
-------------
Metals (4.5%)
80,300 AK Steel Holding Corp. 888,319
24,300 Hubbell, Inc., Class B 633,319
-------------
Total Metals 1,521,638
-------------
Retail (4.2%)
20,200 Abercrombie & Fitch Co. 222,200*
25,000 Ann Taylor Stores, Inc. 517,188*
54,400 Consolidated Stores Corp. 676,600*
-------------
Total Retail 1,415,988
-------------
Textiles, Clothing & Fabrics (4.6%)
40,400 Jones Apparel Group, Inc. 1,199,375*
34,300 Warnaco Group, Inc. 364,438
-------------
Total Textiles, Clothing & Fabrics 1,563,813
-------------
</TABLE>
See accompanying notes to financial statements.
26
<PAGE>
--------------------------------------------------------------------------[LOGO]
April 30, 2000
<TABLE>
<CAPTION>
Number of
Shares Value
------------ -------------
<S> <C> <C>
Transportation (0.5%)
7,300 Trinity Industries, Inc. $ 162,425
-------------
Total Common Stock (Cost: $29,816,606) (99.7%) 33,738,286
-------------
Principal
Amount Short-Term Investments
--------- ----------------------
$ 56,205 American Express Co., 6.063%, due 05/10/00 56,205**
56,205 American Express Co., 6.09%, due 05/22/00 56,205**
93,675 American Express Co., 6.1%, due 05/01/00 93,675**
74,940 Bank of America, 6.18%, due 06/20/00 74,940**
37,470 Bank of Nova Scotia, 6.05%, due 05/08/00 37,470**
74,940 BNP Paribas, S.A., 6.05%, due 05/10/00 74,940**
74,940 Credit Agricole, 6%, due 05/03/00 74,940**
375,155 Fleet National Bank, 6.193%, due 10/31/00 375,155**
920,656 Investors Bank & Trust Depository Reserve, 4.85%,
due 05/01/00 920,656
37,470 Morgan Stanley Dean Witter & Co., 6.15%, due 11/22/00 37,470**
-------------
Total Short-Term Investments (Cost: $1,801,656) (5.3%) 1,801,656
-------------
Total Investments (Cost: $31,618,262) (105.0%) 35,539,942
Liabilities in Excess of Other Assets (-5.0%) (1,701,948)
-------------
Net Assets (100.0%) $ 33,837,994
=============
</TABLE>
Notes to the Schedule of Investments:
* Non-income producing.
** Represents investments of security lending collateral (Note 3).
See accompanying notes to financial statements.
27
<PAGE>
TCW Galileo Funds, Inc.
--------------------------------------------------------------------------------
U.S. Equities
Statements of Assets and Liabilities (Unaudited) April 30, 2000
<TABLE>
<CAPTION>
TCW Galileo
Aggressive TCW Galileo TCW Galileo
Growth Convertible Earnings
Equities Securities Momentum
Fund Fund Fund
------------- ------------- ------------
Dollar Amounts in Thousands
(Except per Share Amounts)
<S> <C> <C> <C>
ASSETS
Investments, at Value /(1)/ $ 322,232 $ 63,825 $ 30,537
Receivables for Securities Sold 208 77 45
Receivables for Fund Shares Sold 2,993 -- --
Interest and Dividends Receivable 50 367 16
Deferred Organization Costs 1 1 --
------------ ------------ -----------
Total Assets 325,484 64,270 30,598
------------ ------------ -----------
LIABILITIES
Payables for Securities Purchased 221 209 219
Payables for Fund Shares Redeemed 205 88 --
Payables Upon Return of Securities Loaned (Note 3) 67,416 3,689 2,029
Accrued Management Fees 192 34 23
Other Accrued Expenses 34 19 41
------------ ------------ -----------
Total Liabilities 68,068 4,039 2,312
------------ ------------ -----------
NET ASSETS $ 257,416 $ 60,231 $ 28,286
============ ============ ===========
NET ASSETS CONSIST OF:
Paid-in Capital $ 86,010 $ 37,414 $ 6,687
Undistributed Net Realized Gain on Investments 39,802 15,765 25,560
Unrealized Appreciation (Depreciation) on
Investments 136,050 6,922 (1,233)
Undistributed Net Investment Income (Loss) (4,446) 130 (2,728)
------------ ------------ -----------
NET ASSETS $ 257,416 $ 60,231 $ 28,286
============ ============ ===========
NET ASSETS ATTRIBUTABLE TO:
Institutional Class Shares $ 237,797 $ 60,231 $ 28,286
============ ============ ===========
Advisory Class Shares $ 19,619 $ -- $ --
============ ============ ===========
CAPITAL SHARES OUTSTANDING:
Institutional Class 8,333,177 3,898,347 1,796,311
============ ============ ===========
Advisory Class 689,423 -- --
============ ============ ===========
NET ASSET VALUE PER SHARE:
Institutional Class $ 28.54 $ 15.45 $ 15.75
============ ============ ===========
Advisory Class $ 28.46 $ -- $ --
============ ============ ===========
</TABLE>
(1) The identified cost for the TCW Galileo Aggressive Growth Equities Fund,
the TCW Galileo Convertible Securities Fund and the TCW Galileo Earnings
Momentum Fund was $186,182, $56,903 and $31,770, respectively.
See accompanying notes to financial statements.
28
<PAGE>
------------------------------------------------------------------------- [LOGO]
Statements of Assets and Liabilities (Unaudited) April 30, 2000
<TABLE>
<CAPTION>
TCW TCW TCW TCW TCW
Galileo Galileo Galileo Galileo Galileo
Large Cap Large Cap Select Small Cap Value
Growth Value Equities Growth Opportunities
Fund Fund Fund Fund Fund
---------- ----------- ----------- ----------- --------------
Dollar Amounts in Thousands
(Except per Share Amounts)
<S> <C> <C> <C> <C> <C>
ASSETS
Investments, at Value /(1)/ $ 33,807 $ 90,984 $ 479,347 $ 482,676 $ 35,540
Receivables for Securities Sold -- 603 5,049 721 991
Receivables for Fund Shares
Sold 7 52 1,227 472 --
Interest and Dividends
Receivable 11 97 230 150 17
Deferred Organization Costs -- -- -- -- 3
---------- ----------- ----------- ----------- -----------
Total Assets 33,825 91,736 485,853 484,019 36,551
---------- ----------- ----------- ----------- -----------
LIABILITIES
Payables for Securities
Purchased -- 587 2,744 27,268 1,769
Payables for Fund Shares
Redeemed 8 -- 327 569 --
Payables Upon Return of
Securities Loaned (Note 3) 2,419 8,389 30,390 69,921 881
Accrued Management Fees 10 30 273 306 20
Other Accrued Expenses 39 36 40 53 43
---------- ----------- ----------- ----------- -----------
Total Liabilities 2,476 9,042 33,774 98,117 2,713
---------- ----------- ----------- ----------- -----------
NET ASSETS $ 31,349 $ 82,694 $ 452,079 $ 385,902 $ 33,838
========== =========== =========== =========== ===========
NET ASSETS CONSIST OF:
Paid-in Capital $ 18,774 $ 73,798 $ 226,227 $ 200,605 $ 27,445
Undistributed Net Realized Gain
(Loss) on Investments 3,433 (1,658) 84,828 51,720 2,507
Unrealized Appreciation on
Investments 9,294 10,413 142,631 140,431 3,922
Undistributed Net Investment
Income (Loss) (152) 141 (1,607) (6,854) (36)
---------- ----------- ----------- ----------- -----------
NET ASSETS $ 31,349 $ 82,694 $ 452,079 $ 385,902 $ 33,838
========== =========== =========== =========== ===========
NET ASSETS
ATTRIBUTABLE TO:
Institutional Class Shares $ 31,079 $ 82,373 $ 402,428 $ 368,696 $ 33,838
========== =========== =========== =========== ===========
Advisory Class Shares $ 270 $ 321 $ 49,651 $ 17,206 $ --
========== =========== =========== =========== ===========
CAPITAL SHARES
OUTSTANDING:
Institutional Class 1,598,984 6,311,739 15,751,409 9,620,877 2,680,602
========== =========== =========== =========== ===========
Advisory Class 13,889 24,547 1,949,976 449,825 --
========== =========== =========== =========== ===========
NET ASSET VALUE PER SHARE:
Institutional Class $ 19.44 $ 13.05 $ 25.55 $ 38.32 $ 12.62
========== =========== =========== =========== ===========
Advisory Class $ 19.42 $ 13.06 $ 25.46 $ 38.25 $ --
========== =========== =========== =========== ===========
</TABLE>
(1) The identified cost for the TCW Galileo Large Cap Growth Fund, the
TCW Galileo Large Cap Value Fund, the TCW Galileo Select Equities
Fund, the TCW Galileo Small Cap Growth Fund and the TCW Galileo
Value Opportunities Fund was $24,513, $80,571, $336,716, $342,245
and $31,618, respectively.
See accompanying notes to financial statements.
29
<PAGE>
TCW Galileo Funds, Inc.
--------------------------------------------------------------------------------
U.S. Equities
<TABLE>
<CAPTION>
Statements of Operations (Unaudited) Six Months Ended April 30, 2000
TCW
Galileo TCW TCW
Aggressive Galileo Galileo
Growth Convertible Earnings
Equities Securities Momentum
Fund Fund Fund
-------- ----------- --------
Dollar Amounts in Thousands
<S> <C> <C> <C>
INVESTMENT INCOME
Income:
Dividends $ 56 $ 378 $ 1
Interest (Note 2) 274 658 84
-------- -------- --------
Total 330 1,036 85
-------- -------- --------
Expenses:
Management Fees 1,265 211 152
Accounting Service Fees 39 14 14
Administration Fees 41 12 12
Professional Fees 18 11 11
Transfer Agent Fees:
Institutional Class 21 14 16
Advisory Class 8 -- --
Custodian Fees 3 6 11
Directors' Fees & Expenses 4 4 4
Registration Fees:
Institutional Class 4 -- 1
Advisory Class 3 -- --
Distribution Fees:
Advisory Class (Note 2) 15 -- --
Other 21 13 8
-------- -------- --------
Total Expenses 1,442 285 229
Less Expenses Borne by Investment Advisor 5 -- --
-------- -------- --------
Net Expenses 1,437 285 229
-------- -------- --------
Net Investment Income (Loss) (1,107) 751 (144)
-------- -------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net Realized Gain on Investments 25,127 13,355 15,428
Change in Unrealized Appreciation (Depreciation)
on Investments 45,899 1,811 (9,860)
-------- -------- --------
Net Realized and Unrealized Gain on Investments 71,026 15,166 5,568
-------- -------- --------
INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $ 69,919 $ 15,917 $ 5,424
======== ======== ========
</TABLE>
See accompanying notes to financial statements.
30
<PAGE>
--------------------------------------------------------------------------[LOGO]
<TABLE>
<CAPTION>
Statements of Operations (Unaudited) Six Months Ended April 30, 2000
TCW TCW TCW
Galileo Galileo TCW Galileo TCW
Large Large Galileo Small Galileo
Cap Cap Select Cap Value
Growth Value Equities Growth Opportunities
Fund Fund Fund Fund Fund
--------- --------- ---------- ---------- ---------------
Dollar Amounts in Thousands
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Dividends $ 54 $ 467 $ 502 $ -- $ 161
Interest (Note 2) 52 32 523 723 40
------ ------ ------- ------- ------
Total 106 499 1,025 723 201
------ ------ ------- ------- ------
Expenses:
Management Fees 79 185 1,428 1,999 121
Accounting Service Fees 15 15 39 59 14
Administration Fees 12 12 43 62 11
Professional Fees 14 15 21 22 10
Transfer Agent Fees:
Institutional Class 10 17 22 22 12
Advisory Class 7 7 8 7 --
Custodian Fees 1 7 2 12 4
Directors' Fees & Expenses 4 4 4 4 4
Registration Fees:
Institutional Class 4 4 4 5 --
Advisory Class 3 3 3 3 --
Distribution Fees:
Advisory Class (Note 2) -- -- 41 14 --
Other 8 11 25 28 8
------ ------ ------- ------- ------
Total Expenses 157 280 1,640 2,237 184
Less Expenses Borne by Investment
Advisor 13 13 -- 3 --
------ ------ ------- ------- ------
Net Expenses 144 267 1,640 2,234 184
------ ------ ------- ------- ------
Net Investment Income (Loss) (38) 232 (615) (1,511) 17
------ ------ ------- ------- ------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net Realized Gain on Investments 3,074 1,631 43,127 46,324 2,534
Change in Unrealized Appreciation
on Investments 2,494 5,698 42,157 10,083 4,073
------ ------ ------- ------- ------
Net Realized and Unrealized Gain on
Investments 5,568 7,329 85,284 56,407 6,607
------ ------ ------- ------- ------
INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $5,530 $7,561 $84,669 $54,896 $6,624
====== ====== ======= ======= ======
</TABLE>
See accompanying notes to financial statements.
31
<PAGE>
TCW Galileo Funds, Inc.
--------------------------------------------------------------------------------
U.S. Equities
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
TCW Galileo TCW Galileo
Aggressive Growth Convertible
Equities Fund Securities Fund
--------------------------- ------------------------------
Six Months Six Months
Ended Ended
April 30, Year Ended April 30, Year Ended
2000 October 31, 2000 October 31,
(Unaudited) 1999 (Unaudited) 1999
----------- ----------- ----------- -----------
Dollar Amounts in Thousands
<S> <C> <C> <C> <C>
OPERATIONS
Net Investment Income (Loss) $ (1,107) $ (1,097) $ 751 $ 1,553
Net Realized Gain on Investments 25,127 32,828 13,355 5,420
Change in Unrealized Appreciation on Investments 45,899 63,049 1,811 4,528
----------- ----------- ----------- -----------
Increase in Net Assets Resulting from Operations 69,919 94,780 15,917 11,501
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income:
Institutional Class -- -- (807) (1,264)
Distributions from Net Realized Gain:
Institutional Class (20,845) (12,024) (4,185) (2,009)
Advisory Class (428) -- -- --
----------- ----------- ----------- -----------
Total Distributions to Shareholders (21,273) (12,024) (4,992) (3,273)
----------- ----------- ----------- -----------
NET CAPITAL SHARE TRANSACTIONS (NOTE 8)
Institutional Class 19,832 848 (524) 14,214
Advisory Class 18,378 2,052 -- --
----------- ----------- ----------- -----------
Increase (Decrease) in Net Assets
Resulting from Net Capital Share Transactions 38,210 2,900 (524) 14,214
----------- ----------- ----------- -----------
Increase in Net Assets 86,856 85,656 10,401 22,442
NET ASSETS
Beginning of Period 170,560 84,904 49,830 27,388
----------- ----------- ----------- -----------
End of Period $ 257,416 $ 170,560 $ 60,231 $ 49,830
=========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
32
<PAGE>
------------------------------------------------------------------------- [LOGO]
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
TCW Galileo Earnings TCW Galileo Large Cap
Momentum Fund Growth Fund
--------------------------- --------------------------
Six Months Six Months
Ended Ended
April 30, Year Ended April 30, Year Ended
2000 October 31, 2000 October 31,
(Unaudited) 1999 (Unaudited) 1999
----------- ----------- ----------- ----------
Dollar Amounts in Thousands
<S> <C> <C> <C> <C>
OPERATIONS
Net Investment Income (Loss) $ (144) $ (364) $ (38) $ (112)
Net Realized Gain on Investments 15,428 10,386 3,074 1,680
Change in Unrealized Appreciation (Depreciation) on Investments (9,860) (121) 2,494 4,700
--------- -------- ---------- ----------
Increase in Net Assets Resulting from Operations 5,424 9,901 5,530 6,268
--------- -------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Realized Gain:
Institutional Class (4,748) (1,596) (1,328) (439)
Advisory Class -- -- (5) --
--------- -------- ---------- ----------
Total Distributions to Shareholders (4,748) (1,596) (1,333) (439)
--------- -------- ---------- ----------
NET CAPITAL SHARE TRANSACTIONS (NOTE 8)
Institutional Class 5,772 (18,766) 3,721 9,542
Advisory Class -- -- 181 79
--------- -------- ---------- ----------
Increase (Decrease) in Net Assets
Resulting from Net Capital Share Transactions 5,772 (18,766) 3,902 9,621
--------- -------- ---------- ----------
Increase in Net Assets 6,448 (10,461) 8,099 15,450
NET ASSETS
Beginning of Period 21,838 32,299 23,250 7,800
--------- -------- ---------- ----------
End of Period $ 28,286 $ 21,838 $ 31,349 $ 23,250
========= ======== ========== ==========
</TABLE>
33
<PAGE>
TCW Galileo Funds, Inc.
--------------------------------------------------------------------------------
U.S. Equities
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
TCW Galileo Large Cap TCW Galileo Select
Value Fund Equities Fund
-------------------------- --------------------------
Six Months Six Months
Ended Ended
April 30, Year Ended April 30, Year Ended
2000 October 31, 2000 October 31,
(Unaudited) 1999 (Unaudited) 1999
----------- ----------- ----------- -----------
Dollar Amounts in Thousands
<S> <C> <C> <C> <C>
OPERATIONS
Net Investment Income (Loss) $ 232 $ 477 $ (615) $ (942)
Net Realized Gain (Loss) on Investments 1,631 (3,003) 43,127 21,665
Change in Unrealized Appreciation on Investments 5,698 4,318 42,157 59,270
----------- ----------- ----------- -----------
Increase in Net Assets Resulting from Operations 7,561 1,792 84,669 79,993
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income:
Institutional Class (544) (60) -- --
Distributions from Net Realized Gain:
Institutional Class -- -- (13,242) (27,870)
Advisory Class -- -- (890) --
----------- ----------- ----------- -----------
Total Distributions to Shareholders (544) (60) (14,132) (27,870)
----------- ----------- ----------- -----------
NET CAPITAL SHARE TRANSACTIONS (NOTE 8)
Institutional Class 9,129 56,990 49,056 53,279
Advisory Class 256 65 24,829 17,390
----------- ----------- ----------- -----------
Increase in Net Assets
Resulting from Net Capital Share Transactions 9,385 57,055 73,885 70,669
----------- ----------- ----------- -----------
Increase in Net Assets 16,402 58,787 144,422 122,792
NET ASSETS
Beginning of Period 66,292 7,505 307,657 184,865
----------- ----------- ----------- -----------
End of Period $ 82,694 $ 66,292 $ 452,079 $ 307,657
=========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
34
<PAGE>
------------------------------------------------------------------------- [LOGO]
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
TCW Galileo Small TCW Galileo Value
Cap Growth Fund Opportunities Fund
-------------------------- --------------------------
Six Months Six Months
Ended Ended
April 30, Year Ended April 30, Year Ended,
2000 October 31, 2000 October 31,
(Unaudited) 1999 (Unaudited) 1999
----------- ----------- ----------- -----------
Dollar Amounts in Thousands
<S> <C> <C> <C> <C>
OPERATIONS
Net Investment Income (Loss) $ (1,511) $ (1,605) $ 17 $ (28)
Net Realized Gain on Investments 46,324 20,462 2,534 3,685
Change in Unrealized Appreciation on Investments 10,083 90,934 4,073 1,766
----------- ----------- ----------- -----------
Increase in Net Assets Resulting from Operations 54,896 109,791 6,624 5,423
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Realized Gain:
Institutional Class (16,532) (1,936) (3,131) --
Advisory Class (80) -- -- --
----------- ----------- ----------- -----------
Total Distributions to Shareholders (16,612) (1,936) (3,131) --
----------- ----------- ----------- -----------
NET CAPITAL SHARE TRANSACTIONS (NOTE 8)
Institutional Class 84,959 17,017 107 (3,819)
Advisory Class 21,196 541 -- --
----------- ----------- ----------- -----------
Increase (Decrease) in Net Assets
Resulting from Net Capital Share Transactions 106,155 17,558 107 (3,819)
----------- ----------- ----------- -----------
Increase in Net Assets 144,439 125,413 3,600 1,604
NET ASSETS
Beginning of Period 241,463 116,050 30,238 28,634
----------- ----------- ----------- -----------
End of Period $ 385,902 $ 241,463 $ 33,838 $ 30,238
=========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
35
<PAGE>
TCW Galileo Funds, Inc.
--------------------------------------------------------------------------------
U.S. Equities
Notes to Financial Statements (Unaudited)
Note 1 -- Organization
TCW Galileo Funds, Inc., a Maryland corporation (the "Company"), is an
open-end management investment company registered under the Investment
Company Act of 1940, (the "1940 Act") as amended, that currently offers a
selection of 20 no-load mutual funds known as the TCW Galileo Funds (the
"Funds"). TCW Investment Management Company (the "Advisor") is the
investment advisor to the Funds. TCW London International, Limited is a
sub-advisor for 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. The advisors are registered under the Investment Advisors
Act of 1940. Each Fund has distinct investment objectives and policies.
Investors Bank & Trust Company serves as the administrator of the Funds.
The Funds' financial statements are separated into three reports: 1) U.S.
Equities Funds, 2) U.S. Fixed Income Funds, and 3) International Funds.
However, all Funds are listed below along with their investment objectives,
and are currently offered by the Company.
U.S. Equities
<TABLE>
<CAPTION>
TCW Galileo Fund Investment Objective
---------------- -------------------------------------------------
<S> <C>
Convertible Securities Fund
TCW Galileo Convertible Securities Fund Seeks high total return from current income and
capital appreciation through investment
principally in convertible securities.
Non-Diversified U.S. Equity Funds
TCW Galileo Aggressive Growth Seeks long-term capital appreciation by investing
Equities Fund primarily in publicly traded equity securities of
medium capitalization companies.
TCW Galileo Earnings Momentum Fund Seeks capital appreciation by investing primarily
in publicly traded equity securities of companies
experiencing or expected to experience
accelerating earnings growth.
TCW Galileo Large Cap Growth Fund Seeks long-term capital appreciation by investment
primarily in publicly traded equity securities of
large capitalization U.S. companies with above
average earnings prospects.
TCW Galileo Large Cap Value Fund Seeks long-term capital appreciation by investing
primarily in publicly traded equity securities of
large capitalization companies.
TCW Galileo Select Equities Fund Emphasizes capital appreciation and preservation
with focus on long-term results.
TCW Galileo Small Cap Growth Fund Seeks long-term capital appreciation by investing
primarily in publicly traded equity securities of
smaller capitalization companies.
</TABLE>
36
<PAGE>
------------------------------------------------------------------------ [LOGO]
April 30, 2000
U.S. Equities (Continued)
<TABLE>
<CAPTION>
TCW Galileo Fund Investment Objective
---------------- -------------------------------------------------
<S> <C>
Non-Diversified U.S. Equity Funds
TCW Galileo Value Opportunities Fund Seeks capital appreciation by investing at least
65% of its total assets, under normal
circumstances, in publiclytraded equity securities
issued by small and medium companies with market
capitalization at the time of purchase between
$500 million and $5 billion.
U.S. Fixed Income
TCW Galileo Fund Investment Objective
---------------- --------------------------------------------------
Diversified Money Market Fund
TCW Galileo Money Market Fund Seeks current income, preservation of capital and
liquidity by investing in short-term money market
securities.
Diversified Fixed Income Funds
TCW Galileo Core Fixed Income Fund Seeks capital appreciation and income by investment
principally in core fixed income securities
emphasizing high quality and liquid investments.
TCW Galileo High Yield Bond Fund Seeks high current income by investment
principally in high yield fixed income securities.
TCW Galileo Mortgage-Backed Seeks income by investing primarily in short-term
Securities Fund mortgage-backed securities.
TCW Galileo Total Return Mortgage- Seeks income by investing primarily in long-term
Backed Securities Fund mortgage-backed securities.
International
TCW Galileo Fund Investment Objective
---------------- --------------------------------------------------
Non-Diversified International Equity Funds
TCW Galileo Asia Pacific Equities Fund Seeks long-term capital appreciation by investing
primarily in equity securities of companies in the
Asia Pacific region.
TCW Galileo Emerging Markets Seeks long-term capital appreciation by investing
Equities Fund in equity securities of companies in emerging
market countries around the world.
TCW Galileo European Equities Fund Seeks long-term capital appreciation by investing
primarily in the securities of issuers located in
Europe.
TCW Galileo International Equities Fund Seeks long-term capital appreciation by investing
in a mix of underlying TCW Galileo Funds.
TCW Galileo Japanese Equities Fund Seeks long-term capital appreciation by investing
primarily in Japanese equity securities.
</TABLE>
37
<PAGE>
TCW Galileo Funds, Inc.
--------------------------------------------------------------------------------
U.S. Equities
Notes to Financial Statements (Unaudited) (Continued)
Note 1 -- Organization (Continued)
International (Continued)
<TABLE>
<CAPTION>
TCW Galileo Fund Investment Objective
---------------- --------------------------------------------------
<S> <C>
Non-Diversified International Equity Funds
TCW Galileo Latin America Seeks long-term capital appreciation by investing
Equities Fund primarily in Latin American equity securities.
Non-Diversified Fixed Income Fund
TCW Galileo Emerging Markets Seeks high total return from capital appreciation
Income Fund 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.
</TABLE>
Nine funds (TCW Galileo Aggressive Growth Equities Fund, TCW Galileo Large Cap
Growth Fund, TCW Galileo Large Cap Value Fund, TCW Galileo Select Equities Fund,
TCW Galileo Small Cap Growth Fund, TCW Galileo Core Fixed Income Fund, TCW
Galileo High Yield Bond Fund, TCW Galileo Total Return Mortgage-Backed
Securities Fund and TCW Galileo European Equities Fund) offer 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 give 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.
Note 2 -- Significant Accounting Policies
The following is a summary of significant accounting policies which are in
conformity with generally accepted accounting principles and which are
consistently followed by the Funds in the preparation of their financial
statements. The preparation of the financial statements in accordance with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts and disclosures in the
financial statements.
Principles of Accounting: The Funds use the accrual method of accounting for
financial reporting purposes.
Security Valuations: Equity fund securities listed or traded on the New York,
American or other stock exchanges are valued at the latest sale price on that
exchange (if there were no sales that day, the security is valued at the latest
bid price). All other securities for which over-the-counter market quotations
are readily available, are valued at the latest bid price prior to the time of
valuation.
Securities for which market quotations are not readily available, including
circumstances under which it is determined by the Advisor 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.
38
<PAGE>
------------------------------------------------------------------------ [LOGO]
April 30, 2000
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 gains and
losses on investments are recorded on the basis of specific identification.
Repurchase Agreements: The Funds may invest in repurchase agreements secured by
U.S. Government obligations and by 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 any
extensions of credit, the Funds may bear the risk of delay in recovery or even
loss of rights in the collateral if the borrowers of the securities fail
financially. The Funds receive compensation for lending their securities (see
Note 3).
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, 2000.
Deferred Organization Costs: Organizational costs of approximately $4,000,
$2,000 and $5,000 for the TCW Galileo Convertible Securities Fund, the TCW
Galileo Aggressive Growth Equities Fund and the TCW Galileo Value Opportunities
Fund, respectively, have been deferred and are being amortized on a straight
line basis over a five-year period from the commencement of operations.
Organizational costs for all other U.S. Equities funds have been fully amortized
or were de minimus and therefore, were not deferred. Those costs were expensed
as incurred.
Upon formation of the Funds, the Company sold and issued to the Advisor 10,008
shares of common stock (one share each of the TCW Galileo Convertible Securities
Fund, the TCW Galileo Aggressive Growth Equities Fund, the TCW Galileo Small Cap
Growth Fund, and the TCW Galileo Value Opportunities Fund, and 2,000 shares each
of the other two funds, collectively the "Initial Shares"). In the event the
Advisor 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 and unrealized gains and losses are allocated among the classes of
shares of the Funds based on the
39
<PAGE>
TCW Galileo Funds, Inc.
--------------------------------------------------------------------------------
U.S. Equities
Notes to Financial Statements (Unaudited) (Continued)
Note 2 -- Significant Accounting Policies (Continued)
relative net assets of each class. Distribution fees, which are directly
attributable to a class of shares, are charged to that class operations.
All other expenses are charged to each Fund as incurred on a specific
identification basis.
Net Asset Value: The Net Asset Value of each Fund's shares is determined
by 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: The TCW Galileo Convertible Securities Fund
declares and pays, or reinvests, dividends from net investment income
quarterly. The other equity funds declare and pay, or reinvest,
dividends from net investment income annually. Distribution of any net
long-term and net short-term capital gains earned by a Fund will be
distributed at least annually.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted
accounting principles. These differences are primarily due to differing
treatments for foreign currency transactions, market discount, losses
deferred to wash sales, excise tax regulations and employing
equalization in determining amounts to be distributed to Fund
shareholders. Permanent book and tax basis differences relating to
shareholder distributions will result in reclassifications to paid-in
capital and may impact net investment income per share. Undistributed
net investment income may include temporary book and tax basis
differences which will reverse in a subsequent period. Any taxable
income or gain remaining at fiscal year end is distributed in the
following year.
Note 3 -- Security Lending
The Funds listed below loaned securities that were collateralized in
cash which was invested in short-term investments as of April 30, 2000:
<TABLE>
<CAPTION>
Market Value of Securities
Loaned Securities Collateral Value Lending Fees*
----------------- ---------------- -------------
<S> <C> <C> <C>
TCW Galileo Aggressive Growth
Equities Fund $65,721,301 $67,416,104 $ 93,222
TCW Galileo Convertible Securities Fund 3,621,702 3,688,650 3,466
TCW Galileo Earnings Momentum Fund 1,930,553 2,029,100 16,238
TCW Galileo Large Cap Growth Fund 2,359,541 2,418,975 5,063
TCW Galileo Large Cap Value Fund 8,160,375 8,389,050 2,514
TCW Galileo Select Equities Fund 29,455,527 30,389,991 146,891
TCW Galileo Small Cap Growth Fund 67,760,459 69,921,440 113,172
TCW Galileo Value Opportunities Fund 715,510 881,000 2,356
</TABLE>
* Net of broker fees.
Securities lending fees are included in interest income in the Statements
of Operations.
Note 4 -- 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,
40
<PAGE>
------------------------------------------------------------------------- [LOGO]
April 30, 2000
including any net realized gains on investments, to its shareholders. Therefore,
no federal income tax provision is required. At April 30, 2000, net unrealized
appreciation (depreciation) on investments for federal income tax purposes was
as follows (amounts in thousands):
<TABLE>
<CAPTION>
TCW Galileo TCW Galileo TCW Galileo
Aggressive Growth Convertible Earnings
Equities Fund Securities Fund Momentum Fund
------------------- ----------------- ----------------
<S> <C> <C> <C>
Unrealized Appreciation $ 153,422 $ 9,093 $ 4,606
Unrealized (Depreciation) (17,372) (2,171) (5,839)
----------- ---------- ----------
Net Unrealized Appreciation (Depreciation) $ 136,050 $ 6,922 $ (1,233)
=========== ========== ==========
Cost of Investments for Federal
Income Tax Purposes $ 186,182 $ 56,903 $ 31,770
=========== ========== ==========
<CAPTION>
TCW Galileo TCW Galileo TCW Galileo
Large Cap Large Cap Select
Growth Fund Value Fund Equities Fund
------------------- ----------------- ----------------
Unrealized Appreciation $ 10,067 $ 11,886 $ 155,359
Unrealized (Depreciation) (773) (1,473) (12,728)
----------- ---------- ----------
Net Unrealized Appreciation $ 9,294 $ 10,413 $ 142,631
=========== ========== ==========
Cost of Investments for Federal
Income Tax Purposes $ 24,513 $ 80,571 $ 336,716
=========== ========== ==========
<CAPTION>
TCW Galileo TCW Galileo
Small Cap Value
Growth Fund Opportunities Fund
----------------- ------------------
Unrealized Appreciation $ 187,237 $ 5,759
Unrealized (Depreciation) (46,806) (1,837)
---------- ----------
Net Unrealized Appreciation $ 140,431 $ 3,922
========== ==========
Cost of Investments for Federal
Income Tax Purposes $ 342,245 $ 31,618
========== ==========
</TABLE>
At April 30, 2000, the TCW Galileo Large Cap Value Fund had net realized loss
carryforwards for federal income tax purposes of $11 and $1,081 (amounts in
thousands) expiring in 2006 and 2007, respectively.
Note 5 -- Fund Expenses
The Funds pay to the Advisor, as compensation for services rendered, facilities
furnished and expenses borne by it, the following annual management fees as a
percentage of daily net asset value:
TCW Galileo Aggressive Growth Equities Fund 1.00%
TCW Galileo Convertible Securities Fund 0.75%
TCW Galileo Earnings Momentum Fund 1.00%
TCW Galileo Large Cap Growth Fund 0.55%
TCW Galileo Large Cap Value Fund 0.55%
TCW Galileo Select Equities Fund 0.75%
TCW Galileo Small Cap Growth Fund 1.00%
TCW Galileo Value Opportunities Fund 0.80%
41
<PAGE>
TCW Galileo Funds, Inc.
--------------------------------------------------------------------------------
U.S. Equities
Notes to Financial Statements (Unaudited) (Continued)
Note 5 -- Fund Expenses (Continued)
The ordinary operating expenses for all Funds (each share class) are
limited to the average total expense ratio as reported by Lipper
Analytical Services, Inc. for each Fund's respective investment
objective, which is subject to change on a monthly basis. At April 30,
2000, the average expense ratios reported by Lipper Analytical Services,
Inc. as they relate to each Fund were:
TCW Galileo Aggressive Growth Equities Fund 1.53%
TCW Galileo Convertible Securities Fund 1.53%
TCW Galileo Earnings Momentum Fund 1.67%
TCW Galileo Large Cap Growth Fund 1.42%
TCW Galileo Large Cap Value Fund 1.28%
TCW Galileo Select Equities Fund 1.42%
TCW Galileo Small Cap Growth Fund 1.53%
TCW Galileo Value Opportunities Fund 1.53%
Certain officers and/or directors of the Company are officers and/or
directors of the Advisor.
Note 6 -- 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.
Note 7 -- Purchases and Sales of Securities
Investment transactions (excluding short-term investments) for the six
months ended April 30, 2000, were as follows (amounts in thousands):
<TABLE>
<CAPTION>
TCW Galileo TCW Galileo TCW Galileo
Aggressive Growth Convertible Earnings
Equities Fund Securities Fund Momentum Fund
----------------- --------------- ---------------
<S> <C> <C> <C>
Purchases at Cost $ 58,460 $ 51,674 $ 30,491
========= ========= =========
Sales Proceeds $ 51,462 $ 57,919 $ 30,254
========= ========= =========
TCW Galileo TCW Galileo TCW Galileo
Large Cap Large Cap Select
Growth Fund Value Fund Equities Fund
----------------- --------------- ---------------
Purchases at Cost $ 19,028 $ 53,591 $ 187,457
========= ========= =========
Sales Proceeds $ 16,616 $ 45,151 $ 113,828
========= ========= =========
TCW Galileo TCW Galileo
Small Cap Value
Growth Fund Opportunities Fund
--------------- ------------------
Purchases at Cost $ 185,653 $ 19,925
========= =========
Sales Proceeds $ 100,103 $ 21,645
========= =========
</TABLE>
There were no purchases or sales of U.S. Government Securities for the
six months ended April 30, 2000.
42
<PAGE>
------------------------------------------------------------------------- [LOGO]
April 30, 2000
Note 8 -- Capital Share Transactions
The Declaration of Trust permits the Trustees to issue an unlimited
number of shares of beneficial interest (without par value). Transaction
in each Fund's shares were as follows:
<TABLE>
<CAPTION>
TCW Galileo Aggressive Growth Six Months Ended
Equities Fund April 30, 2000 Year Ended
Institutional Class (Unaudited) October 31, 1999
----------------------------- -----------------------------
Amount Amount
Shares (in thousands) Shares (in thousands)
----------- -------------- ----------- --------------
<S> <C> <C> <C> <C>
Shares Sold 2,180,153 $ 66,416 3,217,826 $ 61,670
Shares Issued upon Reinvestment of
Dividends 791,005 19,621 897,111 11,286
Shares Redeemed (2,184,188) (66,205) (4,048,436) (72,108)
----------- ------------ ----------- ------------
Net Increase 786,970 $ 19,832 66,501 $ 848
=========== ============ =========== ============
<CAPTION>
TCW Galileo Aggressive Growth Six Months Ended
Equities Fund April 30, 2000 Year Ended
Advisory Class (Unaudited) October 31, 1999/(1)/
----------------------------- -----------------------------
Amount Amount
Shares (in thousands) Shares (in thousands)
----------- -------------- ----------- --------------
Shares Sold 784,170 $ 24,361 177,921 $ 3,453
Shares Issued upon Reinvestment of Dividends 17,223 428 -- --
Shares Redeemed (218,237) (6,411) (71,654) (1,401)
----------- ------------ ----------- ------------
Net Increase 583,156 $ 18,378 106,267 $ 2,052
=========== ============ =========== ============
</TABLE>
(1) For the period March 1, 1999 (Commencement of offering of Advisory
Class shares) through October 31, 1999.
<TABLE>
<CAPTION>
TCW Galileo Earnings Momentum Fund Six Months Ended
April 30, 2000 Year Ended
(Unaudited) October 31, 1999
----------------------------- -----------------------------
Amount Amount
Shares (in thousands) Shares (in thousands)
----------- -------------- ----------- --------------
<S> <C> <C> <C> <C>
Shares Sold 325,040 $ 4,966 2,763,917 $ 31,234
Shares Issued upon Reinvestment of Dividends 329,586 4,339 266,413 2,893
Shares Redeemed (693,506) (9,829) (1,692,831) (19,913)
----------- ------------ ----------- -------------
Net Increase (Decrease) (38,880) $ (524) 1,337,499 $ 14,214
=========== ============ =========== =============
<CAPTION>
TCW Galileo Earnings Momentum Fund Six Months Ended
April 30, 2000 Year Ended
(Unaudited) October 31, 1999
----------------------------- -----------------------------
Amount Amount
Shares (in thousands) Shares (in thousands)
----------- -------------- ----------- --------------
Shares Sold 84,480 $ 1,799 110,213 $ 1,249
Shares Issued upon Reinvestment of Dividends 300,226 4,557 132,982 1,471
Shares Redeemed (32,648) (584) (1,856,416) (21,486)
----------- ------------ ----------- -------------
Net Increase (Decrease) 352,058 $ 5,772 (1,613,221) $ (18,766)
=========== ============ =========== =============
</TABLE>
43
<PAGE>
TCW Galileo Funds, Inc.
--------------------------------------------------------------------------------
U.S. Equities
Notes to Financial Statements (Unaudited) (Continued)
Note 8 -- Capital Share Transactions (Continued)
<TABLE>
<CAPTION>
TCW Galileo Large Cap Growth Fund Six Months Ended
Institutional Class April 30, 2000 Year Ended
(Unaudited) October 31, 1999
----------------------------- -----------------------------
Amount Amount
Shares (in thousands) Shares (in thousands)
----------- -------------- ----------- --------------
<S> <C> <C> <C> <C>
Shares Sold 228,760 $ 4,455 961,287 $ 13,683
Shares Issued upon Reinvestment of Dividends 64,995 1,117 36,641 439
Shares Redeemed (91,715) (1,851) (298,866) (4,580)
--------- ----------- --------- ------------
Net Increase 202,040 $ 3,721 699,062 $ 9,542
========= =========== ========= ============
<CAPTION>
TCW Galileo Large Cap Growth Fund Six Months Ended
Advisory Class April 30, 2000 Year Ended
(Unaudited) October 31, 1999
----------------------------- -----------------------------
Amount Amount
Shares (in thousands) Shares (in thousands)
----------- -------------- ----------- --------------
Shares Sold 15,327 $ 313 5,290 $ 81
Shares Issued upon Reinvestment of Dividends 278 5 -- --
Shares Redeemed (6,877) (137) (129) (2)
--------- ----------- --------- ------------
Net Increase 8,728 $ 181 5,161 $ 79
========= =========== ========= ============
</TABLE>
(1) For the period March 1, 1999 (Commencement of offering of Advisory
Class shares) through October 31, 1999.
<TABLE>
<CAPTION>
TCW Galileo Large Cap Growth Fund Six Months Ended
Institutional Class April 30, 2000 Year Ended
(Unaudited) October 31, 1999
----------------------------- -----------------------------
Amount Amount
Shares (in thousands) Shares (in thousands)
----------- -------------- ----------- --------------
<S> <C> <C> <C> <C>
Shares Sold 1,784,942 $ 21,968 8,030,981 $ 92,437
Shares Issued upon Reinvestment of Dividends 23,554 285 2,910 30
Shares Redeemed (1,102,686) (13,124) (3,169,587) (35,477)
---------- ----------- ---------- ------------
Net Increase 705,810 $ 9,129 4,864,304 $ 56,990
========== =========== ========== ============
<CAPTION>
TCW Galileo Large Cap Growth Fund Six Months Ended
Advisory Class April 30, 2000 Year Ended
(Unaudited) October 31, 1999
----------------------------- -----------------------------
Amount Amount
Shares (in thousands) Shares (in thousands)
----------- -------------- ----------- --------------
Shares Sold 19,575 $ 256 13,353 $ 167
Shares Redeemed -- -- (8,381) (102)
---------- ----------- ---------- ------------
Net Increase 19,575 $ 256 4,972 $ 65
========== =========== ========== ============
</TABLE>
(1) For the period March 1, 1999 (Commencement of offering of Advisory
Class shares) through October 31, 1999.
44
<PAGE>
------------------------------------------------------------------------- [LOGO]
April 30, 2000
<TABLE>
<CAPTION>
TCW Galileo Select Equities Fund Six Months Ended
Institutional Class April 30, 2000 Year Ended
(Unaudited) October 31, 1999
----------------------------- ----------------------------
Amount Amount
Shares (in thousands) Shares (in thousands)
----------- -------------- ----------- --------------
<S> <C> <C> <C> <C>
Shares Sold 6,048,284 $ 149,305 6,400,424 $ 120,104
Shares Issued upon Reinvestment of
Dividends 472,656 10,265 1,613,101 24,632
Shares Redeemed (4,716,966) (110,514) (5,012,731) (91,457)
---------- ----------- ---------- ----------
Net Increase 1,803,974 $ 49,056 3,000,794 $ 53,279
========== =========== ========== ==========
TCW Galileo Select Equities Fund Six Months Ended
Advisory Class April 30, 2000 Year Ended
(Unaudited) October 31, 1999(1)
----------------------------- ----------------------------
Amount Amount
Shares (in thousands) Shares (in thousands)
----------- -------------- ----------- --------------
Shares Sold 1,267,180 $ 30,611 1,018,247 $ 17,390
Shares Issued upon Reinvestment of
Dividends 40,662 890 -- --
Shares Redeemed (282,640) (6,672) (93,473) (1,788)
---------- ----------- ---------- ----------
Net Increase 1,025,202 $ 24,829 924,774 $ 17,390
========== =========== ========== ==========
</TABLE>
(1) For the period March 1, 1999 (Commencement of offering of Advisory
Class shares) through October 31, 1999.
<TABLE>
<CAPTION>
TCW Galileo Select Equities Fund Six Months Ended
Institutional Class April 30, 2000 Year Ended
(Unaudited) October 31, 1999
----------------------------- ----------------------------
Amount Amount
Shares (in thousands) Shares (in thousands)
----------- -------------- ----------- --------------
<S> <C> <C> <C> <C>
Shares Sold 4,036,246 $ 194,024 2,977,400 $ 68,370
Shares Issued upon Reinvestment of
Dividends 417,754 15,842 100,650 1,878
Shares Redeemed (2,647,604) (124,907) (2,307,584) (53,231)
---------- ----------- ----------- ------------
Net Increase 1,806,396 $ 84,959 770,466 $ 17,017
========== =========== =========== ============
TCW Galileo Select Equities Fund Six Months Ended
Advisory Class April 30, 2000 Year Ended
(Unaudited) October 31, 1999/(1)/
----------------------------- ----------------------------
Amount Amount
Shares (in thousands) Shares (in thousands)
----------- -------------- ----------- --------------
Shares Sold 589,882 $ 27,420 21,894 $ 543
Shares Issued upon Reinvestment of
Dividends 2,093 80 -- --
Shares Redeemed (163,970) (6,304) (74) (2)
---------- ----------- ----------- ------------
Net Increase 428,005 $ 21,196 21,820 $ 541
========== =========== =========== ============
</TABLE>
(1) For the period March 1, 1999 (Commencement of offering of Advisory
Class shares) through October 31, 1999.
45
<PAGE>
TCW Galileo Funds, Inc.
--------------------------------------------------------------------------------
U.S. Equities
Notes to Financial Statements (Unaudited) (Continued)
Note 8 -- Capital Share Transactions (Continued)
<TABLE>
<CAPTION>
TCW Galileo Value Opportunities Fund Six Months Ended
April 30, 2000 Year Ended
(Unaudited) October 31, 1999
---------------------------- ---------------------------
Amount Amount
Shares (in thousands) Shares (in thousands)
------------ ------------- ---------- --------------
<S> <C> <C> <C> <C>
Shares Sold 357,623 $ 4,158 334,352 $ 3,783
Shares Issued upon Reinvestment of Dividends 274,811 2,940 -- --
Shares Redeemed (643,455) (6,991) (742,180) (7,602)
---------- ---------- --------- -----------
Net Increase (Decrease) (11,021) $ 107 (407,828) $ (3,819)
========== ========== ========= ===========
</TABLE>
Note 9 -- Restricted Securities
The following restricted securities held by the Funds as of April 30,
2000, were valued both at the date of acquisition and April 30, 2000, in
accordance with the security valuation policy of the Funds described in
Note 2. The restricted securities include securities purchased in
private placement transactions without registration under the Securities
Act of 1933, as well as Rule 144A securities. Such securities generally
may be sold only in a privately negotiated transaction with a limited
number of purchasers or in a public offering registered under the
Securities Act of 1933. Each Fund will bear any costs incurred in
connection with the disposition of such securities.
TCW Galileo Convertible Securities Fund
<TABLE>
<CAPTION>
Principal
Amount or
Number of Date of
Shares Investment Acquisition Cost
--------- ---------- ----------- -----------
<S> <C> <C> <C>
$1,245,000 ASM Lithography Holding NV, (144A), 4.25%, 11/19/99 $1,274,830
due 11/30/04
$ 820,000 BEA Systems, Inc., (144A), 4%, due 12/15/06 12/14/99 1,035,658
$ 15,000 Centocor, Inc., (144A), 4.75%, due 02/15/05 02/13/98 15,000
$ 75,000 Costco Companies, Inc., (144A), 0%, due 08/19/17 08/14/97 41,140
$ 785,000 Echostar Communications Corp., (144A), 4.875%, 12/03/99 819,448
due 01/01/07
$ 465,000 Exchangeable Certificates Corp., (144A), 0.25%, 07/16/99 466,473
due 07/17/06
$ 795,000 Exodus Communications, Inc., (144A), 4.75%, 12/02/99 796,900
due 07/15/08
2,100 Global Crossing Ltd., (144A), $17.50 Convertible 12/10/99 546,000
Preferred
$ 830,000 Interpublic Group of Companies, Inc., (144A), 1.87%, 06/01/99 719,247
due 06/01/06
$ 290,000 Sanmina Corp., (144A), 4.25%, due 05/01/04 07/15/99 361,772
$ 720,000 Sepracor, Inc., (144A), 7%, due 12/15/05 12/15/98 730,372
$ 485,000 Siebel Systems, Inc., (144A), 5.5%, due 09/15/06 09/21/99 488,838
8,500 United Rentals, Inc., (144A), $3.25 Convertible 09/28/98 308,175
Preferred
</TABLE>
The total value of restricted securities is $10,031,412, which
represents 16.7% of net assets of the Fund at April 30, 2000.
46
<PAGE>
TCW Galileo Aggressive Growth Equities Fund
--------------------------------------------------------------------------[LOGO]
Institutional Class
Financial Highlights
<TABLE>
<CAPTION>
June 3, 1996
Six Months (Commencement
Ended Year Ended October 31, of Operations)
April 30, 2000 ------------------------------ through
(Unaudited) 1999 1998 1997 October 31, 1996
------------ --------- ------- ------- ----------------
<S> <C> <C> <C> <C> <C>
Net Asset Value per Share,
Beginning of Period $ 22.29 $ 11.35 $ 9.40 $ 9.19 $ 10.00
-------- -------- ------- -------- ------------
Income (Loss) from Investment
Operations:
Net Investment (Loss) (0.13) (0.14) (0.11) (0.08) (0.03)
Net Realized and Unrealized Gain
(Loss) on Investments 9.11 12.68 2.06 0.29 (0.78)
-------- -------- ------- -------- ------------
Total from Investment
Operations 8.98 12.54 1.95 0.21 (0.81)
-------- -------- ------- -------- ------------
Less Distributions:
Distributions from Net Realized
Gain (2.73) (1.60) -- -- --
-------- -------- ------- -------- ------------
Net Asset Value per Share, End
of Period $ 28.54 $ 22.29 $ 11.35 $ 9.40 $ 9.19
======== ======== ======= ======== ============
Total Return 42.18%/(1)/ 121.34% 20.74% 2.28% (8.10)%/(2)/
Ratios/Supplemental Data:
Net Assets, End of Period
(in thousands) $237,797 $168,193 $84,904 $135,850 $ 92,430
Ratio of Net Expenses to Average
Net Assets 1.12%/(3)/ 1.14% 1.17% 1.12% 1.20%/(3)(4)/
Ratio of Net Investment (Loss) to
Average Net Assets (0.86)%/(3)/ (0.79)% (1.03)% (0.86)% (0.80)%/(3)/
Portfolio Turnover Rate 21.39%/(1)/ 64.12% 55.36% 50.45% 19.19%/(2)/
</TABLE>
(1) For the six months ended April 30, 2000 and not indicative of a full
year's operating results.
(2) For the period June 3, 1996 (Commencement of Operations) through
October 31, 1996 and not indicative of a full year's operating
results.
(3) Annualized.
(4) The Investment Advisor had voluntarily agreed to reduce its fee, or
to pay the operating expenses of the Fund, to the extent necessary
to limit the annual ordinary operating expenses of the Fund to 1.20%
of net assets through December 31, 1996. Had such action not been
taken, total annualized operating expenses, as a percentage of
average net assets, would have been 1.27% for the period June 3,
1996 (Commencement of Operations) through October 31, 1996.
See accompanying notes to financial statements.
47
<PAGE>
TCW Galileo Aggressive Growth Equities Fund
--------------------------------------------------------------------------------
Advisory Class
Financial Highlights
<TABLE>
<CAPTION>
March 1, 1999
Six Months (Commencement of
Ended offering of Advisory
April 30, 2000 Class shares) through
(Unaudited) October 31, 1999
-------------- ----------------------
<S> <C> <C>
Net Asset Value per Share, Beginning of Period $ 22.27 $16.07
------- ------
Income (Loss) from Investment Operations:
Net Investment (Loss) (0.19) (0.12)
Net Realized and Unrealized Gain on Investments 9.11 6.32
------- ------
Total from Investment Operations 8.92 6.20
------- ------
Less Distributions:
Distributions from Net Realized Gain (2.73) --
------- ------
Net Asset Value per Share, End of Period $ 28.46 $22.27
======= ======
Total Return 41.97%/(1)/ 38.58%/(2)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $19,619 $2,367
Ratio of Net Expenses to Average Net Assets 1.50%/(3)(4)/ 1.47%/(3)(4)/
Ratio of Net Investment (Loss) to Average Net Assets (1.25)%/(3)/ (0.92)%/(3)/
Portfolio Turnover Rate 21.39%/(1)/ 64.12%/(2)/
</TABLE>
(1) For the six months ended April 30, 2000 and not indicative of a full
year's operating results.
(2) For the period March 1, 1999 (Commencement of offering of Advisory
Class shares) through October 31, 1999 and not indicative of a full
year's operating results.
(3) Annualized.
(4) The Investment Advisor has voluntarily agreed to reduce its fee, or
to pay the operating expenses of the Fund, to the extent necessary to
limit the annual operating expenses of the Fund as disclosed in Note
5 in the Notes to the Financial Statements. Had such action not been
taken, total annualized operating expenses, as a percentage of
average net assets, would have been 1.58% for the six months ended
April 30, 2000 and 6.83% for the period March 1, 1999 (Commencement
of offering of Advisory Class shares) through October 31, 1999.
See accompanying notes to financial statements.
48
<PAGE>
TCW Galileo Convertible Securities Fund
--------------------------------------------------------------------------[LOGO]
Financial Highlights
<TABLE>
<CAPTION>
January 2, 1997
Six Months Year Ended (Commencement
Ended October 31, of Operations)
April 30, 2000 ------------------- through
(Unaudited) 1999 1998 October 31, 1997
------------- -------- --------- -----------------
<S> <C> <C> <C> <C>
Net Asset Value per Share, Beginning of
Period $ 12.66 $ 10.53 $ 11.41 $ 10.00
------- ------- ------- -------
Income (Loss) from Investment Operations:
Net Investment Income 0.19 0.41 0.37 0.31
Net Realized and Unrealized Gain (Loss) on
Investments 3.88 2.56 (0.08) 1.43
------- ------- ------- -------
Total from Investment Operations 4.07 2.97 0.29 1.74
------- ------- ------- -------
Less Distributions:
Distributions from Net Investment Income (0.21) (0.34) (0.37) (0.33)
Distributions in Excess of Net Investment
Income -- -- (0.05) --
Distributions from Net Realized Gain (1.07) (0.50) (0.75) --
------- ------- ------- -------
Total Distributions (1.28) (0.84) (1.17) (0.33)
------- ------- ------- -------
Net Asset Value per Share, End of Period $ 15.45 $ 12.66 $ 10.53 $ 11.41
======= ======= ======= =======
Total Return 34.03%/(1)/ 29.68% 2.69% 17.66%/(2)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $60,231 $49,830 $27,388 $36,890
Ratio of Net Expenses to Average Net Assets 1.01%/(3)/ 1.03% 1.05% 0.95%/(3)(4)/
Ratio of Net Investment Income to Average
Net Assets 2.67%/(3)/ 3.53% 3.34% 3.54%/(3)/
Portfolio Turnover Rate 95.22%/(1)/ 150.91% 139.65% 141.43%/(2)/
</TABLE>
(1) For the six months ended April 30, 2000 and not indicative of a
full year's operating results.
(2) For the period January 2, 1997 (Commencement of Operations) through
October 31, 1997 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 the operating expenses of the Fund, to the extent necessary to
limit the annual ordinary operating expenses of the Fund to 0.95% of
net assets through October 31, 1997 and 1.05% of net assets through
December 31, 1998. Had such action not been taken, total annualized
operating expenses, as a percentage of average net assets, would have
been 1.16% for the year ended October 31, 1998 and 1.51% for the
period January 2, 1997 (Commencement of Operations) through October
31, 1997.
See accompanying notes to financial statements.
49
<PAGE>
TCW Galileo Earnings Momentum Fund
--------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
November 1, 1994
Six Months (Commencement
Ended of Operations)
April 30, 2000 Year Ended October 31, through
---------------------------------------
(Unaudited) 1999 1998 1997 1996 October 31, 1995
--------- ------- ------- ------ ------- ----------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value per Share,
Beginning of Period $ 15.12 $ 10.56 $ 13.87 $ 13.01 $ 11.47 $ 10.00
------- ------- ------- -------- ------- --------
Income (Loss) from Investment
Operations:
Net Investment (Loss) (0.09) (0.16) (0.14) (0.12) (0.11) (0.03)
Net Realized and Unrealized
Gain (Loss) on Investments 4.07 5.26 (2.20) 1.98 1.72 1.51
------- ------- ------- -------- ------- --------
Total from Investment
Operations 3.98 5.10 (2.34) 1.86 1.61 1.48
------- ------- ------- -------- ------- --------
Less Distributions:
Distributions in Excess of Net
Investment Income -- -- -- -- -- (0.01)
Distributions from Net Realized
Gain (3.35) (0.54) (0.97) (1.00) (0.07) --
------- ------- ------- -------- ------- --------
Total Distributions (3.35) (0.54) (0.97) (1.00) (0.07) (0.01)
Net Asset Value per Share, End
of Period $ 15.75 $ 15.12 $ 10.56 $ 13.87 $ 13.01 $ 11.47
======= ======= ======= ======== ======= ========
Total Return 27.15%/(1)/ 50.23% (17.76)% 15.53% 13.99% 14.76%
Ratios/Supplemental Data:
Net Assets, End of Period
(in thousands) $28,286 $21,838 $32,299 $101,667 $77,994 $ 63,411
Ratio of Net Expenses to
Average Net Assets 1.51%/(2)/ 1.46% 1.27% 1.17% 1.13%/(3)/ 1.14%/(3)/
Ratio of Net Investment (Loss)
to Average Net Assets (0.95)%/(2)/ (1.30)% (1.10)% (0.96)% (0.82)% (0.28)%
Portfolio Turnover Rate 106.02%/(1)/ 118.87% 51.25% 93.06% 99.03% 85.91%
</TABLE>
(1) For the six months ended April 30, 2000 and not indicative of a full
year's operating results.
(2) Annualized.
(3) The Investment Advisor has voluntarily agreed to reduce its fee, or to
pay the operating expenses of the Fund, to the extent necessary to
limit the annual ordinary operating expenses of the Fund to 1.14% of
net assets through December 31, 1995. Had such action not been taken,
total annualized operating expenses, as a percentage of average net
assets, would have been 1.14% for the year ended October 31, 1996 and
November 1, 1994 (Commencement of Operations) through October 31, 1995.
See accompanying notes to financial statements.
50
<PAGE>
TCW Galileo Large Cap Growth Fund
------------------------------------------------------------------------- [LOGO]
Institutional Class
Financial Highlights
<TABLE>
<CAPTION>
June 3, 1998
Six Months (Commencement
Ended Year Ended of Operations)
April 30, 2000 October 31, through
(Unaudited) 1999 October 31, 1998
----------- ---------- ----------------
<S> <C> <C> <C>
Net Asset Value per Share, Beginning of Period $ 16.58 $ 11.18 $10.00
------- ------- ------
Income (Loss) from Investment Operations:
Net Investment (Loss) (0.02) (0.09) --
Net Realized and Unrealized Gain on Investments 3.82 6.00 1.18
------- ------- ------
Total from Investment Operations 3.80 5.91 1.18
------- ------- ------
Less Distributions:
Distributions from Net Realized Gain (0.94) (0.51) --
------- ------- ------
Net Asset Value per Share, End of Period $ 19.44 $ 16.58 $11.18
======= ======= ======
Total Return 23.57%/(1)/ 54.59% 11.80%/(2)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $31,079 $23,164 $7,800
Ratio of Net Expenses to Average Net Assets 0.99%/(3)/ 1.30% 0.91%/(3)/(4)/
Ratio of Net Investment (Loss) to Average Net
Assets (0.26)%/(3)/ (0.64)% (0.07)%/(3)/
Portfolio Turnover Rate 58.15%/(1)/ 78.02% 50.76%/(2)/
</TABLE>
(1) For the six months ended April 30, 2000 and not indicative of a full
year's operating results.
(2) For the period June 3, 1998 (Commencement of Operations) through
October 31, 1998 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 the operating expenses of the Fund, to the extent necessary to
limit the annual ordinary operating expenses of the Fund as disclosed
in Note 5 of the Notes to the Financial Statements. Had such actions
not been taken, total annualized operating expenses, as a percentage of
average net assets, would have been 2.53% for the period June 3, 1998
(Commencement of Operations) through October 31, 1998.
See accompanying notes to financial statements.
51
<PAGE>
TCW Galileo Large Cap Growth Fund
--------------------------------------------------------------------------------
Advisory Class
Financial Highlights
<TABLE>
<CAPTION>
March 1, 1999
Six Months (Commencement of
Ended offering of Advisory
April 30, 2000 Class shares) through
(Unaudited) October 31, 1999
-------------- ---------------------
<S> <C> <C>
Net Asset Value per Share, Beginning of Period $ 16.60 $ 13.70
------- -------
Income (Loss) from Investment Operations:
Net Investment (Loss) (0.06) (0.08)
Net Realized and Unrealized Gain on Investments 3.82 2.98
------- -------
Total from Investment Operations 3.76 2.90
------- -------
Less Distributions:
Distributions from Net Realized Gain (0.94) --
------- -------
Net Asset Value per Share, End of Period $ 19.42 $ 16.60
======= =======
Total Return 23.36%/(1)/ 21.17%/(2)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 270 $ 86
Ratio of Net Expenses to Average Net Assets 1.40%/(3)//(4)/ 1.46%/(3)//(4)/
Ratio of Net Investment (Loss) to Average Net Assets (0.65)%/(3)/ (0.74)%/(3)/
Portfolio Turnover Rate 58.15%/(1)/ 78.02%/(2)/
</TABLE>
(1) For the six months ended April 30, 2000 and not indicative of a full
year's operating results.
(2) For the period March 1, 1999 (Commencement of offering of Advisory
Class shares) through October 31, 1999 and not indicative of a full
year's operating results.
(3) Annualized.
(4) The Investment Advisor has voluntarily agreed to reduce its fee, or to
pay the operating expenses of the Fund, to the extent necessary to
limit the annual ordinary operating expenses of the Fund as disclosed
in Note 5 of the Notes to the Financial Statements. Had such action
not been taken, total annualized operating expenses, as a percentage
of average net assets, would have been 13.37% for the six months ended
April 30, 2000 and 392.27% for the period March 1, 1999 (Commencement
of offering of Advisory Class shares) through October 31, 1999.
See accompanying notes to financial statements.
52
<PAGE>
TCW Galileo Large Cap Value Fund [LOGO]
----------------------------------------------------------------------
Institutional Class
Financial Highlights
<TABLE>
<CAPTION>
June 3, 1998
Six Months (Commencement
Ended Year Ended of Operations)
April 30, 2000 October 31, through
(Unaudited) 1999 October 31, 1998
-------------- ----------- ----------------
<S> <C> <C> <C>
Net Asset Value per Share, Beginning of Period $ 11.82 $ 10.12 $10.00
------- ------- ------
Income from Investment Operations:
Net Investment Income 0.04 0.09 0.04
Net Realized and Unrealized Gain on Investments 1.30 1.66 0.08
------- ------- ------
Total from Investment Operations 1.34 1.75 0.12
------- ------- ------
Less Distributions:
Distributions from Net Investment Income (0.11) (0.05) --
------- ------- ------
Net Asset Value per Share, End of Period $ 13.05 $ 11.82 $10.12
======= ======= ======
Total Return 11.41%/(1)/ 17.30% 1.20%/(2)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $82,373 $66,234 $7,505
Ratio of Net Expenses to Average Net Assets 0.81%/(3)/ 0.85% 0.55%/(3)//(4)/
Ratio of Net Investment Income to Average Net
Assets 0.71%/(3)/ 0.79% 1.04%/(3)/
Portfolio Turnover Rate 67.35%/(1)/ 142.36% 83.84%/(2)/
</TABLE>
(1) For the six months ended April 30, 2000 and not indicative of a full
year's operating results.
(2) For the period June 3, 1998 (Commencement of Operations) through
October 31, 1998 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 the operating expenses of the Fund, to the extent necessary to
limit the annual ordinary operating expenses of the Fund as disclosed
in Note 5 of the Notes to the Financial Statements. Had such actions
not been taken, total annualized operating expenses, as a percentage
of average net assets, would have been 2.48% for the period June 3,
1998 (Commencement of Operations) through October 31, 1998.
See accompanying notes to financial statements.
53
<PAGE>
TCW Galileo Large Cap Value Fund
--------------------------------------------------------------------------------
Advisory Class
Financial Highlights
<TABLE>
<CAPTION>
March 1, 1999
Six Months (Commencement of
Ended offering of Advisory
April 30, 2000 Class shares) through
(Unaudited) October 31, 1999
-------------- ---------------------
<S> <C> <C>
Net Asset Value per Share, Beginning of Period $11.79 $11.07
------ ------
Income from Investment Operations:
Net Investment Income 0.01 0.06
Net Realized and Unrealized Gain on Investments 1.31 0.66
------ ------
Total from Investment Operations 1.32 0.72
------ ------
Less Distributions:
Distributions from Net Investment Income (0.05) --
------ ------
Net Asset Value per Share, End of Period $13.06 $11.79
====== ======
Total Return 11.18%/(1)/ 6.51%/(2)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 321 $ 58
Ratio of Net Expenses to Average Net Assets 1.26%/(3)//(4)/ 1.46%/(3)//(4)/
Ratio of Net Investment Income to Average Net Assets 0.20%/(3)/ 0.71%/(3)/
Portfolio Turnover Rate 67.35%/(1)/ 142.36%/(2)/
</TABLE>
(1) For the six months ended April 30, 2000 and not indicative of a full
year's operating results.
(2) For the period March 1, 1999 (Commencement of offering of Advisory
Class shares) through October 31, 1999 and not indicative of a full
year's operating results.
(3) Annualized.
(4) The Investment Advisor has voluntarily agreed to reduce its fee, or to
pay the operating expenses of the Fund, to the extent necessary to
limit the annual ordinary operating expenses of the Fund as disclosed
in Note 5 of the Notes to the Financial Statements. Had such action
not been taken, total annualized operating expenses, as a percentage
of average net assets, would have been 25.78% for the six months ended
April 30, 2000 and 163.61% for the period March 1, 1999 (Commencement
of offering of Advisory Class Shares) through October 31, 1999.
See accompanying notes to financial statements.
54
<PAGE>
TCW Galileo Select Equities Fund
--------------------------------------------------------------------------[LOGO]
Institutional Class
Financial Highlights
<TABLE>
<CAPTION>
Six Months
Ended
April 30, 2000 Year Ended October 31,
--------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value per Share, -------------- ------- ------- ------- ------- -------
Beginning of Period $ 20.69 $ 16.89 $ 19.29 $ 15.93 $ 13.69 $ 11.57
-------- ------- ------- ------- ------- -------
Income (Loss) from Investment
Operations:
Net Investment Income (Loss) (0.03) (0.07) (0.02) 0.01 0.11 0.06
Net Realized and Unrealized Gain
on Investments 5.81 6.32 3.38 3.57 2.18 2.11
-------- ------- ------- ------- ------- -------
Total from Investment Operations 5.78 6.25 3.36 3.58 2.29 2.17
-------- ------- ------- ------- ------- -------
Less Distributions:
Distributions from Net Investment
Income -- -- -- (0.02) (0.05) (0.05)
Distributions from Net Realized
Gain (0.92) (2.45) (5.76) (0.20) -- --
-------- ------- ------- ------- ------- -------
Total Distributions (0.92) (2.45) (5.76) (0.22) (0.05) (0.05)
-------- ------- ------- ------- ------- -------
Net Asset Value per Share, End of
Period $ 25.55 $ 20.69 $ 16.89 $ 19.29 $ 15.93 $ 13.69
======== ======= ======= ======= ======= =======
Total Return 28.72% /1/ 42.12% 23.83% 22.68% 16.79% 18.85%
Ratios/Supplemental Data:
Net Assets, End of Period
(in thousands) $402,428 $288,546 $184,865 $156,113 $231,302 $197,721
Ratio of Net Expenses to Average
Net Assets 0.83% /2/ 0.88% 0.86% 0.83% 0.82% 0.85%
Ratio of Net Investment Income
(Loss) to Average Net Assets (0.30)% /2/ (0.39)% (0.14)% 0.08% 0.18% 0.48%
Portfolio Turnover Rate 30.66% /1/ 48.29% 103.51% 39.22% 39.58% 53.77%
</TABLE>
(1) For the six months ended April 30, 2000 and not indicative of a
full year's operating results.
(2) Annualized.
See accompanying notes to financial statements.
55
<PAGE>
TCW Galileo Select Equities Fund
--------------------------------------------------------------------------[LOGO]
Advisory Class
Financial Highlights
<TABLE>
<CAPTION>
March 1, 1999
Six Months (Commencement of
ended offering of Advisory
April 30, 2000 Class shares) through
(Unaudited) October 31, 1999
-------------- ---------------------
<S> <C> <C>
Net Asset Value per Share, Beginning of Period $ 20.67 $ 17.62
Income (Loss) from Investment Operations:
Net Investment (Loss) (0.07) (0.07)
Net Realized and Unrealized Gain on Investments 5.78 3.12
------- -------
Total from Investment Operations 5.71 3.05
------- -------
Less Distributions:
Distributions from Net Realized Gain (0.92) --
------- -------
Net Asset Value per Share, End of Period $ 25.46 $ 20.67
======= =======
Total Return 28.46% /1/ 17.31% /2/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $49,651 $19,111
Ratio of Net Expenses to Average Net Assets 1.15% /3/ 1.46% /3//4/
Ratio of Net Investment (Loss) to Average Net Assets (0.60)% /3/ (0.53)% /3/
Portfolio Turnover Rate 30.66% /1/ 48.29% /2/
</TABLE>
(1) For the six months ended April 30, 2000 and not indicative of a
full year's operating results.
(2) For the period March 1, 1999 (Commencement of offering of Advisory
Class shares) through October 31, 1999 and not indicative of a
full year's operating results.
(3) Annualized.
(4) The Investment Advisor has voluntarily agreed to reduce its fee,
or to pay the operating expenses of the Fund, to the extent
necessary to limit the ordinary operating expenses of the Fund as
disclosed in Note 5 of the Notes to the Financial Statements. Had
such action not been taken, total annualized operating expenses,
as a percentage of average net assets, would have been 2.66% for
the period March 1, 1999 (Commencement of offering of Advisory
Class shares) through October 31, 1999.
See accompanying notes to financial statements.
56
<PAGE>
TCW Galileo Small Cap Growth Fund
-------------------------------------------------------------------------[LOGO]
Institutional Class
Financial Highlights
<TABLE>
<CAPTION>
Six Months
Ended
April 30, 2000 Year Ended October 31,
-------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
--------------- ----------- ----------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value per Share,
Beginning of Period $ 30.81 $ 16.48 $ 18.74 $ 17.17 $ 13.53 $ 9.39
-------- -------- -------- -------- -------- -------
Income (Loss) from Investment
Operations:
Net Investment (Loss) (0.17) (0.22) (0.18) (0.15) (0.13) (0.07)
Net Realized and Unrealized Gain
(Loss) on Investments 9.75 14.82 (0.90) 1.91 4.08 4.72
-------- -------- -------- -------- -------- -------
Total from Investment Operations 9.58 14.60 (1.08) 1.76 3.95 4.65
-------- -------- -------- -------- -------- -------
Less Distributions:
Distributions from Net Investment
Income -- -- -- -- (0.01) --
Distributions from Net Realized Gain (2.07) (0.27) (1.18) (0.19) (0.30) (0.51)
-------- -------- -------- -------- -------- -------
Total Distributions (2.07) (0.27) (1.18) (0.19) (0.31) (0.51)
-------- -------- -------- -------- -------- -------
Net Asset Value per Share, End of
Period $ 38.32 $ 30.81 $ 16.48 $ 18.74 $ 17.17 $ 13.53
======== ======== ======== ======== ======== =======
Total Return 31.06%/(1)/ 89.63% (5.98)% 10.38% 29.73% 49.89%
Ratios/Supplemental Data:
Net Assets, End of Period
(in thousands) $368,696 $240,792 $116,050 $144,756 $132,444 $66,056
Ratio of Net Expenses to Average
Net Assets 1.11%/(2)/ 1.14% 1.13% 1.14% 1.14% 1.21%/(3)/
Ratio of Net Investment (Loss) to
Average Net Assets (0.74)%/(2)/ (0.94)% (0.95)% (0.89)% (0.76)% (0.61)%
Portfolio Turnover Rate 27.61%/(1)/ 74.52% 63.67% 60.52% 45.43% 89.73%
</TABLE>
(1) For the six months ended April 30, 2000 and not indicative of a full year's
operating results.
(2) Annualized.
(3) The Investment Advisor had voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund, to the extent necessary to limit the
annual ordinary operating expenses of the Fund to 1.09% of net assets
through December 31, 1994. Had such action not been taken, total annualized
operating expenses, as a percentage of average net assets, would have been
1.24% for the year ended October 31, 1995.
See accompanying notes to financial statements.
57
<PAGE>
TCW Galileo Small Cap Growth Fund
--------------------------------------------------------------------------------
Advisory Class
Financial Highlights
<TABLE>
<CAPTION>
March 1, 1999
Six Months (Commencement of
Ended offering of Advisory
April 30, 2000 Class shares) through
(Unaudited) October 31, 1999
-------------- ----------------------
<S> <C> <C>
Net Asset Value per Share, Beginning of Period $ 30.74 $ 20.62
------- -------
Income (Loss) from Investment Operations:
Net Investment (Loss) (0.27) (0.20)
Net Realized and Unrealized Gain on Investments 9.85 10.32
------- -------
Total from Investment Operations 9.58 10.12
------- -------
Less Distributions:
Distributions from Net Realized Gain (2.07) --
------- -------
Net Asset Value per Share, End of Period $ 38.25 $ 30.74
======= =======
Total Return 31.01%/(1)/ 49.08%/(2)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $17,206 $ 671
Ratio of Net Expenses to Average Net Assets 1.53%/(3)//(4)/ 1.53%/(3)//(4)/
Ratio of Net Investment (Loss) to Average Net Assets (1.16)%/(3)/ (1.15)%/(3)/
Portfolio Turnover Rate 27.61%/(1)/ 74.52%/(2)/
</TABLE>
(1) For the six months ended April 30, 2000 and not indicative of a full
year's operating results.
(2) For the period March 1, 1999 (Commencement of offering of Advisory
Class shares) through October 31, 1999 and not indicative of a full
year's operating results.
(3) Annualized.
(4) The Investment Advisor has voluntarily agreed to reduce its fee, or to
pay the operating expenses of the Fund, to the extent necessary to
limit the annual ordinary operating expenses of the Fund as disclosed
in Note 5 of the Notes to the Financial Statements. Had such action
not been taken, total annualized operating expenses, as a percentage
of average net assets, would have been 1.60% for the six months ended
April 30, 2000 and 35.14% for the period March 1, 1999 (Commencement
of offering of Advisory Class shares) through October 31, 1999.
See accompanying notes to financial statements.
58
<PAGE>
TCW Galileo Value Opportunities Fund
--------------------------------------------------------------------------[LOGO]
Financial Highlights
<TABLE>
<CAPTION>
November 3, 1997
Six Months (Commencement
Ended Year Ended of Operations)
April 30, 2000 October 31, through
(Unaudited) 1999 October 31, 1998
------------- ----------- ------------------
<S> <C> <C> <C>
Net Asset Value per Share, Beginning of Period $ 11.23 $ 9.24 $ 10.00
------- ------- ----------
Income (Loss) from Investment Operations:
Net Investment Income (Loss) 0.01 (0.01) --
Net Realized and Unrealized Gain (Loss) on
Investments 2.59 2.00 (0.75)
------- ------- ----------
Total from Investment Operations 2.60 1.99 (0.75)
------- ------- ----------
Less Distributions:
Distributions in Excess of Net Investment Income -- -- (0.01)
Distributions from Net Realized Gain (1.21) -- --
------- ------- ----------
Total Distributions (1.21) -- (0.01)
------- ------- ----------
Net Asset Value per Share, End of Period $ 12.62 $ 11.23 $ 9.24
======= ======= ==========
Total Return 25.09%/(1)/ 21.54% (7.49)%/(2)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $33,838 $30,238 $ 28,634
Ratio of Net Expenses to Average Net Assets 1.22%/(3)/ 1.18% 1.16%/(3)/
Ratio of Net Investment Income (Loss) to Average
Net Assets 0.11%/(3)/ (0.10)% 0.05%/(3)/
Portfolio Turnover Rate 67.22%/(1)/ 140.07% 97.30%/(2)/
</TABLE>
(1) For the six months ended April 30, 2000 and not indicative of a full
year's operating results.
(2) For the period November 3, 1997
(Commencement of Operations) through October 31, 1998 and not
indicative of a full year's operating results.
(3) Annualized.
See accompanying notes to financial statements.
59
<PAGE>
TCW GALILEO FUNDS
April 30, 2000
SHAREHOLDER INFORMATION
<TABLE>
<S> <C>
DIRECTORS AND OFFICERS INVESTMENT ADVISOR
Marc I. Stern TCW Investment Management Company
Director and Chairman of the Board 865 South Figueroa Street
Los Angeles, California 90017
Alvin R. Albe, Jr. (213) 244-0000
Director and President
CUSTODIAN & ADMINISTRATOR
John C. Argue
Director Investors Bank & Trust Company
200 Clarendon Street
Norman Barker, Jr. Boston, Massachusetts 02116
Director
Richard W. Call TRANSFER AGENT
Director
DST Systems, Inc.
Matthew K. Fong 210 West 10th Street
Director Kansas City, Missouri 64105
Thomas E. Larkin, Jr. DISTRIBUTOR
Director
TCW Brokerage Services
Charles W. Baldiswieler 865 South Figueroa Street
Senior Vice President Los Angeles, California 90017
Michael E. Cahill INDEPENDENT AUDITORS
Senior Vice President,
General Counsel and Assistant Secretary Deloitte & Touche, LLP
350 South Grand Avenue
Jeffrey V. Peterson Los Angeles, California 90071
Senior Vice President
Robert S. Sant
Senior Vice President
Philip K. Holl
Secretary
Hilary G.D. Lord
Assistant Secretary
Peter C. DiBona
Treasurer
</TABLE>
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