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TCW GALILEO FUNDS
APRIL 30, 2000
SEMI-ANNUAL REPORT
International
Asia Pacific Equities
Emerging Markets Equities
Emerging Markets Income
European Equities
International Equities
Japanese Equities
Latin America Equities
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TCW Galileo Funds, Inc.
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International
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Table of Contents April 30, 2000
<S> <C>
Letter to Shareholders.................................................... 1
Performance Summary....................................................... 2
Schedules of Investments:
TCW Galileo Asia Pacific Equities Fund.................................. 3
TCW Galileo Emerging Markets Equities Fund.............................. 6
TCW Galileo Emerging Markets Income Fund................................ 12
TCW Galileo European Equities Fund...................................... 16
TCW Galileo International Equities Fund................................. 20
TCW Galileo Japanese Equities Fund...................................... 21
TCW Galileo Latin America Equities Fund................................. 25
Statements of Assets and Liabilities...................................... 29
Statements of Operations.................................................. 31
Statements of Changes in Net Assets....................................... 33
Notes to Financial Statements............................................. 37
Financial Highlights...................................................... 48
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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
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TCW Galileo Funds, Inc.
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International
Performance Summary (Unaudited) April 30, 2000
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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 Asia Pacific Equities Fund $10.32 48.49% 10.21% 12.70% (1) 04/01/93(2)
TCW Galileo Emerging Markets Equities
Fund $ 9.77 42.84% 6.47% 6.13% (1) 06/01/93(2)
TCW Galileo Emerging Markets Income
Fund $ 8.31 17.51% N/A 6.45% (1) 09/04/96(2)
TCW Galileo European Equities Fund--
Institutional Class $15.97 31.68% N/A 23.91% 11/01/97
TCW Galileo European Equities Fund--
Advisory Class $15.97 31.68% N/A 28.87% 03/01/99
TCW Galileo International Equities
Fund $16.35 34.62% 13.29% 12.44% (1) 12/01/93(2)
TCW Galileo Japanese Equities Fund $15.71 50.14% N/A 2.46% (1) 05/01/95(2)
TCW Galileo Latin America Equities
Fund $11.86 16.05% 8.19% 8.80% (1) 07/01/91(2)
</TABLE>
(1) Performance data includes the performance of the predecessor limited
partnership for periods before the TCW Galileo Funds' registration
became effective. The predecessor limited partnerships were not
registered under the Investment Company Act of 1940, as amended
("1940 Act"), and, therefore were not subject to certain investment
restrictions that are imposed by the 1940 Act. If the limited
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
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TCW Galileo Asia Pacific Equities Fund
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Schedule of Investments (Unaudited) April 30, 2000
Number of
Shares Common Stock Value
----------- ------------ -----------
Hong Kong (32.4% of Net Assets)
105,000 Cheung Kong Holdings, Limited $ 1,253,578
170,000 China Telecom (Hong Kong), Limited 1,227,583*
209,000 Giordano International, Limited 342,086
92,097 Hong Kong Telecommunications 216,951
50,137 HSBC Holdings, PLC 559,960
82,700 Hutchison Whampoa, Limited 1,204,982
4,200 i-Cable Communications, Limited (ADR) 37,800*
616,000 Legend Holdings, Limited 715,663
47,000 Sun Hung Kai Properties, Limited 372,575
-----------
Total Hong Kong (Cost: $3,791,155) 5,931,178
-----------
India (10.3%)
4,300 Infosys Technologies, Limited (ADR) 872,900*
15,600 Satyam Infoway, Limited (ADR) 604,500*
21,335 Videsh Sanchar Nigam, Limited (GDR) 405,365
-----------
Total India (Cost: $554,159) 1,882,765
-----------
Singapore (7.4%)
45,350 City Developments, Limited 205,871
39,000 DBS Group Holdings, Limited 536,844
47,581 Natsteel Electronics, Limited 273,134
6 Oversea-Chinese Banking Corporation,
Limited 41
17,340 Singapore Press Holdings, Limited 339,243
-----------
Total Singapore (Cost: $1,271,584) 1,355,133
-----------
South Korea (21.9%)
2,065 Cheil Jedang Corporation 106,041
10,000 Dauo Technology, Incorporated 144,144
9,533 Housing & Commercial Bank, Korea 163,177*
6,869 Korea Telecom Corporation 469,072*
7,652 Korea Telecom Corporation (ADR) 263,994
4,083 L.G. Chemical, Limited 93,799
2,344 Pohang Iron & Steel Company, Limited 186,963
5,569 Samsung Electronics Company, Limited 1,505,135
4,000 SK Telecom Company, Limited 1,063,063
-----------
Total South Korea (Cost: $2,941,116) 3,995,388
-----------
Taiwan (22.0%)
22,387 Accton Technology Corporation (GDR) 112,495*
13,078 Advanced Semiconducter Engineering,
Incorporated (GDR) 235,404*
212 Asustek Computer, Incorporated (144A)
(GDR) 2,798***
33,561 Asustek Computer, Incorporated (GDR) 443,005*
7,016 Formosa Growth Fund, Limited 195,255*
19,000 GigaMedia, Limited 456,000*
20,958 Siliconware Precision Industries Company
(GDR) 284,505*
9,073 Synnex Technology International
Corporation (GDR) 244,301*
See accompanying notes to financial statements.
3
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TCW Galileo Asia Pacific Equities Fund
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Schedule of Investments (Unaudited) (Continued)
Number of
Shares Value
----------- -----------
Taiwan (Continued)
198,221 Taiwan Semiconductor Manufacturing
Company, Limited (Local Shares) $ 1,273,217**
6,590 Winbond Electronics Corporation (144A)
(GDR) 207,915***
17,900 Winbond Electronics Corporation (GDR) 564,745*
-----------
Total Taiwan (Cost: $3,954,673) 4,019,640
-----------
Thailand (Cost: $169,647) (0.9%)
14,131 Advanced Info Service Public Company,
Limited (Foreign) 165,461*
-----------
Total Common Stock (Cost: $12,682,334)
(94.9%) 17,349,565
-----------
Principal
Amount Short-Term Investments
----------- ----------------------
$ 3,642 Foreign Currency Call Accounts 3,642
987,002 Investors Bank & Trust Depository
Reserve, 4.85%, due 05/01/00 987,002
122,579 American Express Co., 6.09%, due
05/22/00 122,579***
204,299 American Express Co., 6.1%, due 05/01/00 204,299***
163,439 Bank of America, 6.18%, due 06/20/00 163,439***
81,720 Bank of Nova Scotia, 6.05%, due 05/08/00 81,720***
163,439 BNP Paribas, S.A., 6.05%, due 05/10/00 163,439***
163,439 Credit Agricole, 6%, due 05/03/00 163,439***
440,762 Fleet National Bank, 6.193%, due
10/31/00 440,762***
500,000 Merrimac Money Market Fund 500,000***
81,720 Morgan Stanley Dean Witter & Co., 6.15%,
due 11/22/00 81,720***
-----------
Total Short-Term Investments (Cost:
$2,912,041) (15.9%) 2,912,041
-----------
Total Investments (Cost: $15,594,375)
(110.8%) 20,261,606
Liabilities in Excess of Other Assets
(-10.8%) (1,969,494)
-----------
Net Assets (100.0%) $18,292,112
===========
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.
4
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Investments by Industry (Unaudited) April 30, 2000
Percentage of
Industry Net Assets
-------- -------------
Banking 6.9%
Beverages, Food & Tobacco 0.6
Chemicals 0.5
Communications 12.9
Computer Services 2.5
Computer Software & Services 17.2
Electrical Equipment 1.5
Electronics 22.2
Industrial--Diversified 6.6
Investment Companies 1.1
Media--Broadcasting & Publishing 2.1
Metals 1.0
Radio Telephone Communications 0.9
Real Estate 10.0
Retailers 1.9
Telecommunications 1.2
Telephone Communications, exc. Radio 5.8
Short-Term Investments 15.9
-----
Total 110.8%
=====
See accompanying notes to financial statements.
5
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TCW Galileo Emerging Markets Equities Fund
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Schedule of Investments (Unaudited)
Number of
Shares Equity Securities Value
----------- ----------------- -----------
Common Stock
Argentina (2.0% of Net Assets)
7,987 Banco de Galicia y Buenos Aires, S.A. (ADR) $ 138,275
7,187 Banco Frances, S.A. (ADR) 141,943
15,558 PC Holdings, S.A. (ADR) 238,232
59,078 Siderca, S.A. 125,921
8,455 Telecom Argentina STET--France Telecom, S.A.,
Series B (ADR) 236,212
10,183 Telefonica de Argentina, Sociedad Anonima, Series B
(ADR) 357,678
-----------
Total Argentina (Cost: $1,275,538) 1,238,261
-----------
Brazil (1.4%)
13,100 Companhia Paranaenae de Energia (COPEL) (ADR) 96,613
21,273 Souza Cruz, S.A. 129,498
26,280 Telecomunicacoes de S.P. (ADR) 663,570
-----------
Total Brazil (Cost: $923,637) 889,681
-----------
Chile (2.0%)
10,308 Banco Santander Chile (ADR) 152,687
7,718 Compania Cervecerias Unidas, S.A. (ADR) 172,208
12,906 Compania de Telecomunicaciones de Chile, S.A.,
Series A (ADR) 238,761
11,490 Distribucion y Servicio D&S, S.A. (ADR) 195,330
8,760 Embotelladora Andina, S.A., Series A (ADR) 101,835
11,026 Vina Concha y Toro, S.A. (ADR) 423,123
-----------
Total Chile (Cost: $1,380,720) 1,283,944
-----------
Greece (4.4%)
12,546 Alpha Credit Bank, S.A. 693,540
18,200 Hellenic Petroleum, S.A. 196,232*
30,966 Hellenic Telecommunication Organization, S.A. 699,669
9,888 Intracom, S.A. 354,034
11,878 National Bank of Greece, S.A. 508,713
13,280 Panafon, S.A. 160,295*
4,260 Titan Cement Company, S.A. 172,170
-----------
Total Greece (Cost: $3,222,402) 2,784,653
-----------
Hong Kong (7.3%)
322,000 China Telecom (Hong Kong), Limited 2,325,186*
619,896 Cosco Pacific, Limited 368,053
955,198 Huaneng Power International, Incorporated 218,269
1,465,100 Legend Holdings, Limited 1,702,139
-----------
Total Hong Kong (Cost: $3,004,027) 4,613,647
-----------
Hungary (1.7%)
89,284 Magyar Tavkozlesi Rt. 612,240
3,691 Mol Magyar Olaj-es Gazipari Rt. (144A) (GDR) 65,054**
See accompanying notes to financial statements.
6
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April 30, 2000
Number of
Shares Value
----------- -----------
Hungary (Continued)
4,647 Mol Magyar Olaj-es Gazipari Rt. (GDR) $ 81,903*
6,404 OTP Bank Rt. 284,154
-----------
Total Hungary (Cost: $951,482) 1,043,351
-----------
India (6.6%)
14,128 Infosys Technologies, Limited (ADR) 2,867,984*
11,000 Satyam Infoway, Limited (ADR) 426,250*
43,483 Videsh Sanchar Nigam, Limited (GDR) 826,177
-----------
Total India (Cost: $2,776,451) 4,120,411
-----------
Israel (2.7%)
78,203 Bank Hapoalim, Limited 239,920
63,860 Bank Leumi Le-Israel 138,610*
39,190 Bezeq Israeli Telecommunications Corporation,
Limited 207,716*
7,199 Blue Square Chain Investments & Properties, Limited 98,772*
4,646 ECI Telecommunications, Limited 129,217
16,703 Elbit Systems, Limited 236,603
3,434 NICE-Systems, Limited (ADR) 224,712*
3,260 Partner Communications Company, Limited (GDR) 34,841*
9,250 Teva Pharmaceutical Industries, Limited (ADR) 407,000
-----------
Total Israel (Cost: $1,396,713) 1,717,391
-----------
Mexico (12.0%)
34,326 Alfa, S.A. de C.V. 106,039
19,661 Apasco, S.A. de C.V. 118,968
18,608 Cemex, S.A. de C.V. (ADR) 407,050*
483,098 Cifra, S.A. de C.V., Series C 1,028,250*
12,463 Fomento Economico Mexicano, S.A. de C.V., Series B
(ADR) 514,099
53,670 Grupo Carso, S.A. de C.V., Series A1 182,318*
89,300 Grupo Financiero Banamex, S.A. de C.V., Series O 322,314*
90,718 Grupo Industrial Bimbo, S.A. de C.V., Series A 117,298
46,105 Grupo Mexico, S.A., Series B 187,944*
184,188 Grupo Modelo, S.A. de C.V., Series C 391,057
15,484 Grupo Televisa, S.A. de C.V. (GDR) 982,266*
91,748 Kimberly-Clark de Mexico, S.A. de C.V., Series A 295,113
75,074 Organizacion Soriana, S.A., Series B 298,861*
43,776 Telefonos de Mexico, S.A. de C.V. (ADR) 2,574,576
-----------
Total Mexico (Cost: $6,701,807) 7,526,153
-----------
Poland (2.0%)
3,637 Bank Rozwoju Eksportu, S.A. 113,783
5,198 Bank Slaski, S.A. 313,622
43,381 Electrim Spolka Akcyjna, S.A. 542,868*
Poland (Continued)
18,199 Telekomunikacja Polska, S.A. 133,392
15,965 Telekomunikacja Polska, S.A. (144A)
(GDR) 122,531***
-----------
Total Poland (Cost: $963,194) 1,226,196
-----------
See accompanying notes to financial statements.
7
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TCW Galileo Emerging Markets Equities Fund
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Schedule of Investments (Unaudited) (Continued)
Number of
Shares Value
----------- -----------
Russia (1.4%)
5,725 OAO Lukoil Holdings (ADR) $ 343,500
8,125 RAO Unified Energy (ADR) 149,297
8,825 Rostelecom (ADR) 171,536
14,650 Surgutneftegaz (ADR) 217,919
-----------
Total Russia (Cost: $814,654) 882,252
-----------
South Africa (8.2%)
17,549 Anglo American Platinum Corporation, Limited 424,114
17,704 Anglo American, PLC 749,798
8,467 Anglogold, Limited 321,911
17,588 De Beers Centenary, AG 360,261
938 Edgars Consolidated Stores, Limited 8,929
77,076 Johnnies Industrial Corporation, Limited 1,135,809
43,797 Liberty Life Association of Africa, Limited 409,830
31,756 Nedcor Investment Bank Holdings 13,571*
29,763 Nedcor, Limited 564,032
52,794 Rembrandt Group, Limited 409,220
385,308 Sanlam, Limited (Foreign) 457,078*
43,482 South African Breweries, PLC 320,380
-----------
Total South Africa (Cost: $5,031,213) 5,174,933
-----------
South Korea (15.3%)
3,391 Cheil Jedang Corporation 174,132
15,883 Kookmin Bank 171,708
16,715 Korea Telecom Corporation 1,141,439*
19,489 Korea Telecom Corporation (ADR) 672,371
6,766 L.G. Chemical, Limited 155,435
14,372 Pohang Iron & Steel Company, Limited 1,146,342
12,606 Samsung Electronics Company, Limited 3,407,027
10,400 SK Telecom Company, Limited 2,763,964
-----------
Total South Korea (Cost: $8,640,161) 9,632,418
-----------
Taiwan (14.7%)
95,377 Acer, Incorporated (GDR) 1,013,381*
28,339 ASE Test, Limited 839,543*
196 Asustek Computer, Incorporated (144A) (GDR) 2,587***
46,318 Asustek Computer, Incorporated (GDR) 611,398*
20,874 Formosa Growth Fund, Limited 580,923*
20,000 GigaMedia, Limited 480,000*
3,839 Synnex Technology International Corporation (GDR) 103,354*
14,800 Taiwan Semiconductor Manufacturing Company, Limited
(ADR) 774,225*
526,610 Taiwan Semiconductor Manufacturing Company, Limited
(Local Shares) 3,382,529**
Taiwan (Continued)
3,780 Winbond Electronics Corporation (144A) (GDR) 119,259***
41,638 Winbond Electronics Corporation (GDR) 1,313,679*
-----------
Total Taiwan (Cost: $8,887,773) 9,220,878
-----------
See accompanying notes to financial statements.
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April 30, 2000
Number of
Shares Value
----------- -----------
Thailand (0.8%)
21,500 Advanced Info Service Public Company, Limited
(Foreign) $ 251,746*
155,607 Bangkok Bank Public Company, Limited (Foreign) 263,498*
-----------
Total Thailand (Cost: $719,106) 515,244
-----------
Turkey (6.9%)
33,040,946 Akbank, T.A.S. 742,827
14,932,868 Akcansa Cimento, A.S. 329,617
10,483,953 Arcelik, A.S. 891,376
1,012,019 Migros Turk, T.A.S. 686,704
18,191,465 Turkiye Is Bankasi, A.S., Series C 996,426
21,299,477 Yapi Ve Kredi Bankasi, A.S. 679,104
-----------
Total Turkey (Cost: $2,062,610) 4,326,054
-----------
Venezuela (Cost: $145,506) (0.2%)
4,800 Companhia Anonima Nacional Telefonos de Venezuela
(ADR) 139,200
-----------
Total Common Stock (Cost: $48,896,994) (89.6%) 56,334,667
-----------
Preferred Stock
---------------
Brazil (8.5%)
49,498,924 Banco Bradesco, S.A. 361,586
4,337,959 Banco Itau, S.A. 324,087
11,818 Companhia Cervejaria Brahma (ADR) 183,179
9,758 Companhia Energetica de Minas Gerais, S.A. (CEMIG)
(ADR) 145,150
10,357 Companhia Vale do Rio Doce 256,202
28,870 Embratel Participacoes, S.A. (ADR) 649,575
4,474,985 Petroleo Brasileiro, S.A. (PETROBRAS) 1,065,131
4,968 Tele Centro Sul Participacoes, S.A. (ADR) 316,710
7,562 Telecomunicacoes Brasileiras, S.A. (ADR) 893,734*
32,233 Tele Norte Leste Participacoes, S.A. (TELEMAR)
(ADR) 574,142
8,120 Telesp Celular Participacoes, S.A. (ADR) 358,295
9,495 Uniao de Bancos Brasileiros, S.A. (UNIBANCO) (GDR) 236,782
-----------
Total Preferred Stock (Cost: $4,720,979) (8.5%) 5,364,573
-----------
Total Equity Securities (Cost: $53,617,973) (98.1%) 61,699,240
-----------
See accompanying notes to financial statements.
9
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TCW Galileo Emerging Markets Equities Fund
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Schedule of Investments (Unaudited) (Continued)
Principal
Amount Short-Term Investments
----------- ----------------------
$ 20,715 Foreign Currency Call Accounts $ 20,715
1,122,332 Investors Bank & Trust Depository Reserve, 4.85%,
due 05/01/00 1,122,332
-----------
Total Short-Term Investments (Cost: $1,143,047)
(1.8%) 1,143,047
-----------
Total Investments (Cost: $54,761,020) (99.9%) 62,842,287
Excess of Other Assets over Liabilities (0.1%) 64,582
-----------
Net Assets (100.0%) $62,906,869
===========
Notes to the Schedule of Investments:
* Non-income producing.
** Restricted security (Note 9).
See accompanying notes to financial statements.
10
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Investments by Industry (Unaudited) April 30, 2000
Percentage of
Industry Net Assets
-------- -------------
Aerospace/Defense 0.4%
Banking 11.3
Beverages, Food & Tobacco 4.0
Building Materials 1.6
Chemicals 0.3
Commercial Services 1.0
Communications 9.0
Computer Services 0.8
Computer Software & Services 10.7
Cosmetics & Personal Care 0.5
Electric Utilities 1.0
Electronics 15.6
Energy & Oil Services 0.5
Financial Services 0.5
Food Retailers 1.3
Home Construction, Furnishings & Appliances 1.4
Industrial--Diversified 5.6
Insurance 1.4
Investment Companies 0.9
Media--Broadcasting & Publishing 1.6
Metals 2.0
Mining 1.8
Oil & Gas 2.6
Pharmaceuticals 0.6
Radio Telephone Communications 1.2
Retail 2.4
Telecommunications 0.2
Telegraph & Other Communications 3.5
Telephone Communications, exc. Radio 14.4
Short-Term Investments 1.8
----------
Total 99.9%
==========
See accompanying notes to financial statements.
11
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TCW Galileo Emerging Markets Income Fund
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Schedule of Investments (Unaudited)
Principal
Amount Fixed Income Securities Value
------------- ----------------------- ------------
Algeria (Cost: $3,101,125) (3.4% of Net Assets)
$ 4,813,000 The People's Democratic Republic of Algeria,
U.B.A.F. as Agent, Rescheduling Deed dated
June 27, 1996, Tranche 3, Variable Rate based
on Six Month LIBOR +0.8125%, due 2000-2010 $ 3,609,750
------------
Argentina (Cost: $9,052,745) (9.0%)
9,620,000 Republic of Argentina, 11.75%, due 04/07/09 9,446,840
------------
Brazil (15.0%)
2,125,000 Republic of Brazil, 12.75%, due 01/15/20 2,032,031
13,066,000 Republic of Brazil, 14.5%, due 10/15/09 13,765,031
------------
Total Brazil (Cost: $15,712,474) 15,797,062
------------
Bulgaria (Cost: $1,762,475) (1.8%)
2,465,000 Republic of Bulgaria Discount Bonds,
Series A, Variable Rate based on Six Month
LIBOR +0.8125%, due 07/28/24 1,879,562
------------
China (Cost: $1,415,996) (1.3%)
1,650,000 APP China Group, Limited, 14%, due 03/15/10 1,320,000
------------
Colombia (Cost: $1,273,609) (1.0%)
1,085,000 Republic of Colombia, 11.218%, due 08/13/05 1,033,463
------------
Croatia (Cost: $90,252) (0.1%)
116,455 Croatia Government National, Series A,
Variable Rate based on Six Month LIBOR
+0.8125%, due 07/31/10 103,062
------------
Dominican Republic (Cost: $1,106,159) (1.2%)
1,250,000 Tricom S.A., 11.375%, due 09/01/04 1,287,500
------------
Hungary (Cost: $1,384,890) (1.1%)
EUR 1,300,000 Pannon Finance B.V., (144A), 7.75%, due 08/03/04 1,193,313*
------------
India (2.4%)
1,295,000 India Tata Electric, 7.875%, due 08/19/07 1,201,113
1,325,000 Reliance Industries, Limited, 9.375%, due
06/24/26 1,320,031
------------
Total India (Cost: $2,442,140) 2,521,144
------------
Indonesia (Cost: $1,411,375) (1.5%)
1,785,000 Asia Pulp & Paper Global Finance
Company, Variable Rate based on Six Month
LIBOR +4%, due 10/04/01 1,552,950
------------
Kazakhstan (Cost: $1,929,525) (1.8%)
1,950,000 Republic of Kazakhstan, 11.125%, due 05/11/07 1,940,250
------------
See accompanying notes to financial statements.
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April 30, 2000
Principal
Amount Value
------------- ------------
Mexico (15.4%)
$ 1,145,000 Grupo Minero Mexico, Series A, 8.25%, due
04/01/08 $ 927,450
5,885,000 Mexico Global Bonds, 9.875%, due 02/01/10 6,068,906
8,695,000 United Mexican States, 10.375%, due 02/17/09 9,138,445
------------
Total Mexico (Cost: $15,938,335) 16,134,801
------------
Morocco (Cost: $1,552,586) (1.7%)
1,950,274 The Kingdom of Morocco, Restructuring and
Consolidating Agreement dated September 20,
1990, Tranche A, Variable Rate based on Six
Month LIBOR +0.8125%, due 01/01/09 1,740,619
------------
Panama (Cost: $3,214,650) (3.1%)
3,425,000 Republic of Panama, 9.375%, due 04/01/29 3,236,625
------------
Philippines (3.7%)
1,130,000 Ce Casecnan Water & Energy, Series A, 11.45%,
due 11/15/05 1,039,600*
1,025,000 Philippines Long Distance, 9.875%, due 08/01/05 991,103
1,950,000 Republic of Philippines, 9.875%, due 03/16/10 1,836,413
------------
Total Philippines (Cost: $3,894,124) 3,867,116
------------
Poland (4.5%)
1,500,000 Netia Holdings B.V., 10.25%, due 11/01/07 1,275,000
PLN 6,074,000 Poland Government Bonds, 0%, due 12/21/01 1,043,099
1,060,223 Poland Government Bonds, 0%, due 02/12/05 964,803
1,400,000 PTC International Finance II, S.A., 11.25%, due
12/01/09 1,393,000*
------------
Total Poland (Cost: $4,894,894) 4,675,902
------------
Russia (11.2%)
820,000 Russian Federation, (144A), 12.75%, due 06/24/28,
Par Put 06/24/08 664,200*
13,765,000 Russian Federation, (Reg. S), 12.75%, due
06/24/28, Par Put 06/24/08 11,149,650*
------------
Total Russia (Cost: $8,212,140) 11,813,850
------------
Slovakia (Cost: $1,580,963) (1.4%)
EUR 1,625,000 Slovak Wireless, 11.25%, due 03/30/07 1,487,940*
------------
South Africa (2.7%)
1,575,000 Republic of South Africa, 9.125%, due 05/19/09 1,531,688
ZAR 9,713,532 Republic of South Africa, 13%, due 08/31/10 1,319,901
------------
Total South Africa (Cost: $3,059,289) 2,851,589
------------
South Korea (3.6%)
1,315,000 Hanvit Bank, 11.75%, due 03/01/10 1,296,919
1,150,000 Korea Chohung Bank, 11.5%, due 04/01/10 1,131,313
1,450,000 Korea Hyundai Semiconductor, 8.25%, due 05/15/04 1,311,380
------------
Total South Korea (Cost: $3,791,092) 3,739,612
------------
See accompanying notes to financial statements.
13
<PAGE>
TCW Galileo Emerging Markets Income Fund
--------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued)
Principal
Amount Value
------------- ------------
Tunisia (Cost: $1,905,038) (2.0%)
$ 2,280,000 Banque Cent de Tunisie, 8.25%, due 09/19/27 $ 2,063,400
------------
Turkey (5.2%)
1,265,000 Cellco Finance, 12.75%, due 08/01/05 1,298,206
2,000,000 Republic of Turkey, 12%, due 12/15/08 2,137,500
1,920,000 Republic of Turkey, 12.375%, due 06/15/09 2,076,000
------------
Total Turkey (Cost: $5,400,269) 5,511,706
------------
Ukraine (Cost: $1,233,375) (1.1%)
1,950,000 Ukraine Government, 11%, due 03/15/07 1,131,000
------------
Venezuela (Cost: $2,293,350) (2.4%)
2,770,000 Republic of Venezuela, 13.625%, due 08/15/18 2,506,850
------------
Total Fixed Income Securities (Cost: $97,652,870)
(97.6%) 102,445,906
------------
Short-Term Investments (Cost: $1,484,337) (1.4%)
------------------------------------------------
1,484,337 Investors Bank & Trust Depository Reserve, 4.85%,
due 05/01/00 1,484,337
------------
Total Investments (Cost: $99,137,207) (99.0%) 103,930,243
Excess of Other Assets over Liabilities (1.0%) 1,077,250
------------
Net Assets (100.0%) $105,007,493
============
Notes to the Schedule of Investments:
EUR - Euro Currency.
PLN - Polish Zloty.
ZAR - South African Rand.
* Restricted security (Note 9).
See accompanying notes to financial statements.
14
<PAGE>
[LOGO]
--------------------------------------------------------------------------------
Investments by Industry (Unaudited) April 30, 2000
Percentage of
Industry Net Assets
-------- -------------
Banking 4.3%
Chemicals 1.3
Computer Software & Services 2.5
Electric Utilities 2.1
Electronics 1.3
Financial Services 1.3
Government 76.5
Medical Supplies 0.9
Paper & Forest Products 1.5
Radio Telephone Communications 1.1
Telecommunications 0.9
Telephone Communications, exc. Radio 3.9
Short-Term Investments 1.4
----------
Total 99.0%
==========
See accompanying notes to financial statements.
15
<PAGE>
TCW Galileo European Equities Fund
--------------------------------------------------------------------------------
Schedule of Investments (Unaudited)
Number of
Shares Equity Securities Value
--------- ----------------- -----------
Common Stock
Finland (5.4% of Net Assets)
30,912 Nokia OYJ $ 1,777,144
50,000 Outokumpo OYJ 589,937
16,853 Sonera OYJ 928,963
-----------
Total Finland (Cost: $1,242,930) 3,296,044
-----------
France (14.8%)
29,585 Alstom 738,834
10,153 Axa, S.A. 1,508,740
23,623 Credit Lyonnais, S.A. 922,257*
6,499 Galaries Lafayette 1,107,864
16,027 Lagardere Groupe 1,087,864
5,273 PSA Peugeot Citreon, S.A. 1,093,443
2,400 Sr Teleperformance 638,499
13,197 Total Fina, S.A. 2,006,770
-----------
Total France (Cost: $7,214,230) 9,104,271
-----------
Germany (15.6%)
21,572 Bayerische Hypo-Und Vereinsbank AG 1,338,454
32,500 Bayerische Motoren Werke AG 866,114
17,349 Deutsche Bank AG 1,168,113
11,300 Deutsche Telekom AG 725,828
19,900 Fresenius Medical Care AG 1,468,602
9,500 Infineon Technologies AG 655,650*
2,140 SAP AG 1,006,073
6,200 Siemans AG 916,803
12,500 Singulus Technologies AG 1,420,177
-----------
Total Germany (Cost: $9,498,499) 9,565,814
-----------
Great Britain (25.0%)
3,852 Baltimore Technologies, PLC 389,365
225,102 BP Amoco, PLC 1,952,170
155,000 British Airways, PLC (Ordinary Shares) 806,653
297 British Telecommunications, PLC 5,346
345,361 Centrica, PLC 1,231,530
71,000 Future Network, PLC 835,606*
126,834 HSBC Holdings, PLC 1,410,399
15,607 NDS Group, PLC (ADR) 881,796*
29,833 Pearson, PLC 1,031,626
60,443 PizzaExpress, PLC 687,727
61,106 Prudential, PLC 942,318
110,000 Shell Transport & Trading Company (ADR) 898,909
110,700 SmithKline Beecham, PLC 1,520,989
598,732 Vodafone Group, PLC 2,757,748
-----------
Total Great Britain (Cost: $12,311,000) 15,352,182
-----------
See accompanying notes to financial statements.
16
<PAGE>
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April 30, 2000
Number of
Shares Value
---------- -----------
Ireland (5.2%)
183 CRH, PLC $ 2,933
192,000 Eircom, PLC 677,858*
28,400 Elan Corporation, PLC (ADR) 1,217,650*
153,050 Ryanair Holdings, PLC 1,275,911*
-----------
Total Ireland (Cost: $2,343,332) 3,174,352
-----------
Italy (Cost: $999,873) (1.7%)
270,000 Banca Intesa S.p.A 1,007,112
-----------
Netherlands (17.5%)
34,938 ASM Lithography Holding, N.V. 1,368,777*
70,500 BE Semiconductor Industries, N.V. 1,432,386*
15,379 Equant, N.V. 1,193,105*
43,500 Fortis (NL), N.V. 1,096,245
34,508 Getronics, N.V. 1,031,240*
34,000 Koninklijke (Royal) Philips Electronics, N.V. 1,520,061*
50,907 Libertel, N.V. 895,160*
6,812 ST Microelectronics, N.V. 1,302,726*
24,762 United Pan-Europe Communications, N.V. 903,103*
-----------
Total Netherlands (Cost: $7,198,309) 10,742,803
-----------
Portugal (Cost: $686,001) (1.2%)
47,667 Telecel Comunicacoes Pessoais 755,672
-----------
Spain (Cost: $700,057) (2.4%)
64,900 Telefonica, S.A. 1,447,512*
-----------
Sweden (Cost: $585,218) (1.7%)
11,870 Ericsson AB 1,056,921*
-----------
Switzerland (6.9%)
2,021 Adecco, S.A. 1,662,335
1,360 Roche Holding AG 1,423,798
2,680 Zurich Allied AG 1,141,917
-----------
Total Switzerland (Cost: $3,501,170) 4,228,050
-----------
Total Common Stock (Cost: $46,280,619) (97.4%) 59,730,733
-----------
Preferred Stock
---------------
Germany (Cost: $611,029) (1.0%)
260 Porsche AG 646,699
-----------
Total Equity Securities (Cost: $46,891,648) (98.4%) 60,377,432
-----------
Principal
Amount Short-Term Investments
--------- ----------------------
$ 17,666 Foreign Currency Call Accounts 17,666
797,155 Investors Bank & Trust Depository Reserve, 4.85%,
due 05/01/00 797,155
580,902 American Express Co., 6.063%, due 05/10/00 580,902**
580,902 American Express Co., 6.09%, due 05/22/00 580,902**
See accompanying notes to financial statements.
17
<PAGE>
TCW Galileo European Equities Fund
--------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued)
Principal
Amount Short-Term Investments (continued) Value
---------- ---------------------------------- -----------
$1,444,704 American Express Co., 6.1%, due 05/01/00 $ 1,444,704**
774,536 Bank of America, 6.18%, due 06/20/00 774,536**
387,268 Bank of Nova Scotia, 6.05%, due 05/08/00 387,268**
774,536 BNP Paribas, S.A., 6.05%, due 05/10/00 774,536**
1,170,369 Credit Agricole, 6%, due 05/03/00 1,170,369**
975,457 Fleet National Bank, 6.193%, due 10/31/00 975,457**
2,229,524 Merrimac Money Market Fund 2,229,524**
187,268 Morgan Stanley Dean Witter & Co., 6.15%, due
11/22/00 187,268**
-----------
Total Short-Term Investments (Cost: $9,920,287)
(16.2%) 9,920,287
-----------
Total Investments (Cost: $56,811,935) (114.6%) 70,297,719
Liabilities in Excess of Other Assets (-14.6%) (8,949,869)
-----------
Net Assets (100.0%) $61,347,850
===========
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>
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Investments by Industry (Unaudited) April 30, 2000
Percentage of
Industry Net Assets
-------- -------------
Advertising 1.0%
Airlines 3.4
Automotive 4.2
Banking 9.5
Commercial Services 2.7
Communications 4.0
Computer Software & Services 5.9
Electronics 12.6
Heavy Machinery 2.7
Industrial--Diversified 1.8
Insurance 7.6
Media--Broadcasting & Publishing 6.0
Medical Supplies 2.4
Metals 1.0
Oil & Gas 9.9
Pharmaceuticals 6.8
Radio Telephone Communications 7.2
Restaurants 1.1
Retailers 1.8
Telegraph & Other Communications 1.7
Telephone Communications, exc. Radio 5.1
Short-Term Investments 16.2
----------
Total 114.6%
==========
See accompanying notes to financial statements.
19
<PAGE>
TCW Galileo International Equities Fund
--------------------------------------------------------------------------------
Schedule of Investments (Unaudited)
Number of
Shares Common Stock Value
--------- ------------ -----------
Australia (1.1% of Net Assets)
13,000 AMP, Limited $ 113,938
150,000 Goodman Fielder, Limited 111,309
30,000 Telstra Corporation 128,663
45,000 Western Mining Corporation Holding, Limited 186,947
-----------
Total Common Stock (Cost: $633,209) (1.1%) 540,857
-----------
TCW Galileo Funds
-----------------
135,124 TCW Galileo Asia Pacific Equities Fund 1,394,478
84,666 TCW Galileo Emerging Markets Equities Fund 827,187
2,134,139 TCW Galileo European Equities Fund 34,082,198
694,759 TCW Galileo Japanese Equities Fund 10,914,657
43,715 TCW Galileo Latin America Equities Fund 518,464
273,096 TCW Galileo Money Market Fund 273,096
-----------
Total TCW Galileo Funds (Cost: $29,399,139) (96.4%) 48,010,080
-----------
Principal
Amount Short-Term Investments (Cost: $1,263,515) (2.6%)
---------- ------------------------------------------------
$1,263,515 Investors Bank & Trust Depository Reserve, 4.85%,
due 05/01/00 1,263,515
-----------
Total Investments (Cost: $31,295,863) (100.1%) 49,814,452
Liabilities in Excess of Other Assets (-0.1%) (26,624)
-----------
Net Assets (100.0%) $49,787,828
===========
See accompanying notes to financial statements.
20
<PAGE>
TCW Galileo Japanese Equities Fund [LOGO]
--------------------------------------------------------------------------------
Schedule of Investments (Unaudited) April 30, 2000
Number of
Shares or
Warrants Common Stock Value
------------ ------------ -----------
Japan (92.7% of Net Assets)
12,750 Aiful Corporation $ 1,286,091
250 Aloka Company, Limited, Warrants 1997, expire
09/25/01 72,807*
100,000 Asahi Organic Chemicals Industry Company,
Limited 575,606
29,000 Bodysonic Company, Limited 370,350*
22,000 Bridgestone Corporation 477,420
39,000 Canon Chemicals, Incorporated 382,565
35,000 Canon, Incorporated 1,600,037
168,000 Cosmo Securities Company, Limited 421,321*
12,000 Eisai Company, Limited 349,806
9,000 Focus System Corporation 320,655*
48,000 Fujitsu, Limited 1,359,245
27,000 Futaba Industrial Company, Limited 286,591
600 Hikari Tsushin, Incorporated 86,619
5,900 Hirose Electronics Company, Limited 713,067
60,000 Hitachi, Limited 716,269
20,000 Honda Motor Company, Limited 893,948
270,000 Kawasaki Steel Corporation 419,767*
49,000 Kawasumi Laboratories, Incorporated 435,314
58,000 Kissel Pharmaceutical Company 950,564
5,000 Kyocera Corporation 836,110
15 Kyoto Kimino Yuzen Company, Limited 91,246
55,000 Lux Corporation 503,378*
43,000 Matsushita Electric Industrial Company,
Limited 1,138,071
41,300 Megane Top Company, Limited 1,146,585
50,000 Mitsubishi Electric Company 427,078
2,100 Mobilephone Telecommunications International,
Limited 415,880
8,000 Murata Manufacturing Company, Limited 1,554,692
20,000 Nichicon Corporation 536,739
153,000 Nikko Securities Company 1,805,247
6,000 Nintendo Corporation, Limited 999,445
385,000 Nippon Sanso Corporation 1,015,408
2,480 Nippon Telegraph & Telephone Corporation 3,075,328
66,000 Nippon Thompson Company, Limited 684,675
26,600 Nissin Company, Limited 1,132,334
500 NTT Mobile Communication Network, Incorporated 1,670,368
250,000 Renown, Incorporated 277,624*
5,300 Riso Kagaku Corporation 147,140
5,100 Rohm Company 1,708,495
82,000 Sanwa Bank, Limited 792,227
101,000 Sanwa Shutter Corporation 281,334
6,000 Secom Company, Limited 503,054
96,000 Sekisui House, Limited 879,511
117,600 Senko Company, Limited 205,686
See accompanying notes to financial statements.
21
<PAGE>
TCW Galileo Japanese Equities Fund
--------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued)
Number of
Shares Value
---------------- -----------
Japan (Continued)
49,000 Sharp Corporation $ 945,447
30,000 Shimano, Incorporated 558,023
65,000 Shimura Kako Company, Limited 324,820*
40 Shin Nippon Air Technologies Company, Limited 127
38,000 Shiseido Company 480,363
5,100 Softbank Corporation 1,255,414
15,900 Sony Corporation 1,826,013*
62,000 Sumitomo Bakelite Company, Limited 682,195
5,000 TDK Corporation 669,535
34,643 The Chrysalis Fund 2,132,238
20,000 Tokyo Electric Power Company, Incorporated 471,960
25,000 Tokyo Ohka Kogyo Company, Limited 475,430
9,000 Tomen Electronics Company 327,318
109,000 Toppan Printing Company, Limited 1,139,830
80,000 Toshiba Corporation 775,865
3,000 Trend Micro, Incorporated 449,750*
23,700 Yamaichi Electronics Company, Limited 855,358
70,000 Yamatake Corporation 567,463
152,000 Yodogawa Steel Works, Limited 389,635
-----------
Total Common Stock (Cost: $42,309,790) (92.7%) 47,872,481
-----------
Principal
Amount Convertible Securities
---------------- ----------------------
Japan (3.5%)
JPY 72,000,000 Internet Initiative Japan, Incorporated, 1.75%,
due 03/31/05 461,410
$ 650,000 MBL International Finance (Bermuda) Trust
Exchangeable Mitsubishi Bank, 3%, due
11/30/02 695,500
JPY 25,000,000 Mimasu Semiconductor Industry Company,
Limited, 0.8%, due 05/31/06 252,175*
JPY 40,000,000 Sumitomo Bank International Finance N.V.C.,
0.75%, due 01/31/01 422,913*
-----------
Total Convertible Securities (Cost:
$2,031,339) (3.5%) 1,831,998
-----------
Short-Term Investments
----------------------
3,915,284 Foreign Currency Call Accounts 3,915,284
242,384 American Express Co., 6.063%, due 05/10/00 242,384**
242,384 American Express Co., 6.09%, due 05/22/00 242,384**
403,973 American Express Co., 6.1%, due 05/01/00 403,973**
323,179 Bank of America, 6.18%, due 06/20/00 323,179**
161,589 Bank of Nova Scotia, 6.05%, due 05/08/00 161,589**
23,179 BNP Paribas, S.A., 6.05%, due 05/10/00 23,179**
323,179 Credit Agricole, 6%, due 05/03/00 323,179**
See accompanying notes to financial statements.
22
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April 30, 2000
Principal
Amount Short-Term Investments (Continued) Value
---------------- ---------------------------------- -----------
$ 243,082 Fleet National Bank, 6.193%, due 10/31/00 $ 243,082**
1,674,762 Merrimac Money Market Fund 1,674,762**
161,589 Morgan Stanley Dean Witter & Co., 6.15%, due
11/22/00 161,589**
-----------
Total Short-Term Investments (Cost:
$7,714,584) (14.9%) 7,714,584
-----------
Total Investments (Cost: $52,055,651) (111.1%) 57,419,063
Liabilities in Excess of Other Assets (-11.1%) (5,752,980)
-----------
Net Assets (100.0%) $51,666,083
===========
Notes to the Schedule of Investments:
JPY - Japanese Yen.
* Non-income producing.
** Represents investments of security lending collateral (Note 3).
See accompanying notes to financial statements.
23
<PAGE>
TCW Galileo Japanese Equities Fund
--------------------------------------------------------------------------------
Investments by Industry (Unaudited) April 30, 2000
Percentage of
Industry Net Assets
-------- -------------
Apparel Retailers 0.2%
Automotive 3.2
Banking 3.7
Chemicals 4.4
Commercial Services 2.2
Communications 3.7
Computer Services 1.5
Computer Software & Services 3.6
Cosmetics & Personal Care 0.9
Electric Utilities 0.9
Electrical Equipment 15.1
Electronics 15.9
Entertainment & Leisure 3.0
Financial Services 9.0
Heavy Machinery 2.1
Home Construction, Furnishings & Appliances 2.7
Industrial--Diversified 0.5
Investment Companies 4.1
Medical Supplies 1.0
Metals 2.2
Pharmaceuticals 2.5
Radio Telephone Communications 3.2
Retailers 2.9
Telecommunications 0.8
Telephone Communications, exc. Radio 6.0
Textiles, Clothing & Fabrics 0.5
Transportation 0.4
Short-Term Investments 14.9
----------
Total 111.1%
==========
See accompanying notes to financial statements.
24
<PAGE>
TCW Galileo Latin America Equities Fund [LOGO]
--------------------------------------------------------------------------------
Schedule of Investments (Unaudited) April 30, 2000
Number of
Shares Equity Securities Value
--------- ----------------- ----------
Common Stock
Argentina (7.5% of Net Assets)
1,749 Banco de Galicia y Buenos Aires, S.A. (ADR) $ 30,280
1,700 Banco Frances, S.A. (ADR) 33,575
7,060 CEI Citicorp Holdings, S.A. 29,672*
3,891 IRSA Inversiones y Representaciones, S.A. 11,486
3,363 PC Holdings, S.A. (ADR) 51,496
14,850 Siderca, S.A. 31,652
1,205 Telecom Argentina STET--France Telecom, S.A., Series
B (ADR) 33,665
1,410 Telefonica de Argentina, Sociedad Anonima, Series B
(ADR) 49,526
----------
Total Argentina (Cost: $268,618) 271,352
----------
Brazil (6.0%)
610 Companhia Brasileira de Distribuicao Grupo Pao de
Acucar (ADR) 17,385
1,605 Companhia Vale do Rio Doce (ADR) 39,322
22 Itausa--Investimentos Itau, S.A. 19
3,450 Souza Cruz, S.A. 21,002
5,585 Telecomunicacoes de S.P. (ADR) 141,021
----------
Total Brazil (Cost: $245,262) 218,749
----------
Chile (4.0%)
230 Banco Santander Chile (ADR) 3,407
735 Compania Cervecerias Unidas, S.A. (ADR) 16,400
3,073 Compania de Telecomunicaciones de Chile, S.A., Series
A (ADR) 56,850
600 Cristalerias de Chile, S.A. (ADR) 9,750
520 Distribucion y Servicio D&S, S.A. (ADR) 8,840
1,390 Embotelladora Andina, S.A., Series A (ADR) 16,159
425 Sociedad Quimica y Minera de Chile, S.A. (ADR) 10,519
650 Vina Concha y Toro, S.A. (ADR) 24,944
----------
Total Chile (Cost: $176,197) 146,869
----------
Colombia (Cost: $12,800) (0.4%)
3,209 Bavaria CB 13,325
----------
Latin America Regional (1.0%)
215 FirstCom Corp. 4,461*
430 StarMedia Network, Inc. 9,406*
368 Terra Networks, S.A. (ADR) 22,941*
----------
Total Latin America Regional (Cost: $27,056) 36,808
----------
Mexico (45.3%)
7,525 Alfa, S.A. de C.V. 23,246
4,225 Apasco, S.A. de C.V. 25,565
18,500 Carso Global Telecom, S.A. de C.V., Series A-1 49,098*
4,079 Cemex, S.A. de C.V. (ADR) 89,228*
103,897 Cifra, S.A. de C.V., Series C 221,140*
See accompanying notes to financial statements.
25
<PAGE>
TCW Galileo Latin America Equities Fund
--------------------------------------------------------------------------------
Schedule of Investments (Unaudited) (Continued)
Number of
Shares Value
--------- ----------
Mexico (Continued)
9,500 DESC, S.A. de C.V., Series B $ 6,696
2,685 Fomento Economico Mexicano, S.A. de C.V., Series B
(ADR) 110,756
12,124 Grupo Carso, S.A. de C.V., Series A1 41,186*
19,150 Grupo Financiero Banamex, S.A. de C.V., Series O 69,119*
69,200 Grupo Financiero Bancomer, S.A. de C.V., Series O 30,853*
19,882 Grupo Industrial Bimbo, S.A. de C.V., Series A 25,707
8,950 Grupo Mexico, S.A., Series B 36,484*
26,895 Grupo Modelo, S.A. de C.V., Series C 57,102
3,405 Grupo Televisa, S.A. de C.V. (GDR) 216,005*
12,925 Kimberly-Clark de Mexico, S.A. de C.V., Series A 41,574
16,115 Organizacion Soriana, S.A., Series B 64,152*
9,104 Telefonos de Mexico, S.A. de C.V. (ADR) 535,429
----------
Total Mexico (Cost: $1,552,770) 1,643,340
----------
Peru (1.9%)
10,536 Cementos Lima, S.A., Class I 10,306
1,053 Compania de Minas Buenaventura, S.A., Series B (ADR) 18,164
1,460 Credicorp, Limited (ADR) 15,422
1,795 Telefonica del Peru, S.A., Series B (ADR) 27,149
----------
Total Peru (Cost: $72,203) 71,041
----------
Venezuela (Cost: $36,265) (0.9%)
1,095 Companhia Anonima Nacional Telefonos de Venezuela
(ADR) 31,755
----------
Total Common Stock (Cost: $2,391,171) (67.0%) 2,433,239
----------
Preferred Stock
---------------
Brazil (31.5%)
440 Aracrus Celulose, S.A. (ADR) 8,223
9,744,795 Banco Bradesco, S.A. 71,185
768,000 Banco Itau, S.A. 57,377
1,364,000 Centrais Electricas Brasileiras, S.A. (ELETROBRAS) 22,494
3,520 Companhia Cervejaria Brahma (ADR) 54,560
2,082 Companhia Energetica de Minas Gerais, S.A. (CEMIG)
(ADR) 30,969
3,185 Companhia Paranaenae de Energia (COPEL) (ADR) 23,489
2,768 Companhia Vale do Rio Doce 68,472
5,807 Embratel Participacoes, S.A. (ADR) 130,658
1,820 Gerdau, S.A. (ADR) 45,159
28,157 Itausa - Investimentos Itau, S.A. 24,152
871,800 Petroleo Brasileiro, S.A. (PETROBRAS) 207,505
922 Tele Centro Sul Participacoes, S.A. (ADR) 58,778
630 Telecomunicacoes Brasileiras, S.A. (ADR) 74,458*
5,668 Tele Norte Leste Participacoes, S.A. (TELEMAR) (ADR) 100,963
Brazil (Continued)
880 Tele Sedeste Celular Participacoes, S.A. (ADR) 37,620
1,940 Telesp Celular Participacoes, S.A. (ADR) 85,603
See accompanying notes to financial statements.
26
<PAGE>
[LOGO]
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April 30, 2000
Number of
Shares Value
--------- ----------
Brazil (Continued)
1,310 Uniao de Bancos Brasileiros, S.A. (UNIBANCO) (GDR) $ 32,668
1,800 Usinas Siderurgicas de Minas Gerais, S.A. (USIMINAS) 7,521
----------
Total Preferred Stock (Cost: $1,040,706) (31.5%) 1,141,854
----------
Total Equity Securities (Cost: $3,431,877) (98.5%) 3,575,093
----------
Principal
Amount Short-Term Investments (Cost: $72,451) (2.0%)
--------- ---------------------------------------------
$ 72,451 Investors Bank & Trust Depository Reserve, 4.85%,
due 05/01/00 72,451
----------
Total Investments (Cost: $3,504,328) (100.5%) 3,647,544
Liabilities in Excess of Other Assets (-0.5%) (19,579)
----------
Net Assets (100.0%) $3,627,965
==========
Notes to the Schedule of Investments:
* Non-income producing.
See accompanying notes to financial statements.
27
<PAGE>
TCW Galileo Latin America Equities Fund
--------------------------------------------------------------------------------
Investments by Industry (Unaudited) April 30, 2000
Percentage of
Industry Net Assets
-------- -------------
Banking 6/7%
Beverages, Food & Tobacco 9.4
Building Materials 3.4
Chemicals 0.3
Commercial Services 1.4
Communications 0.1
Computer Services 0.9
Cosmetics & Personal Care 1.1
Electric Utilities 2.1
Financial Services 2.8
Food Retailers 0.5
Household Products 0.3
Industrial--Diversified 2.6
Investment Companies 0.8
Media--Broadcasting & Publishing 6.0
Metals 2.8
Mining 4.0
Oil & Gas 5.7
Paper & Forest Products 0.2
Radio Telephone Communications 3.4
Real Estate 0.3
Retail 8.1
Telecommunications 0.9
Telegraph & Other Communications 11.9
Telephone Communications, exc. Radio 22.8
Short-Term Investments 2.0
----------
Total 100.5%
==========
See accompanying notes to financial statements.
28
<PAGE>
TCW Galileo Funds, Inc. [LOGO]
--------------------------------------------------------------------------------
International
Statements of Assets and Liabilities (Unaudited) April 30, 2000
<TABLE>
<CAPTION>
TCW Galileo TCW Galileo
TCW Galileo Emerging Emerging
Asia Pacific Markets Markets
Equities Fund Equities Fund Income Fund
------------- ------------- ------------
Dollar Amounts in Thousands
(Except per Share Amounts)
<S> <C> <C> <C>
ASSETS
Investments, at Value /(1)/ $ 20,262 $ 62,842 $ 103,930
Receivable for Securities Sold -- -- 1,826
Interest and Dividends Receivable 19 173 2,437
Unrealized Appreciation of Forward Foreign
Currency Contracts (Note 10) -- -- 241
---------- ---------- -----------
Total Assets 20,281 63,015 108,434
---------- ---------- -----------
LIABILITIES
Distribution Payable -- -- 150
Payable for Securities Purchased -- -- 3,180
Payable Upon Return of Securities Loaned
(Note 3) 1,921 -- --
Accrued Management Fees 12 52 61
Other Accrued Expenses 56 56 36
---------- ---------- -----------
Total Liabilities 1,989 108 3,427
---------- ---------- -----------
NET ASSETS $ 18,292 $ 62,907 $ 105,007
========== ========== ===========
NET ASSETS CONSIST OF:
Paid-in Capital $ 12,227 $ 61,300 $ 101,384
Undistributed Net Realized Gain (Loss) on
Investments and Foreign Currency 1,728 (6,948) (1,301)
Unrealized Appreciation on Investments and
Foreign Currency 4,667 8,079 5,026
Undistributed Net Investment Income (Loss) (330) 476 --
(Overdistributed) Net Investment Income -- -- (102)
---------- ---------- -----------
NET ASSETS $ 18,292 $ 62,907 $ 105,007
========== ========== ===========
NET ASSETS ATTRIBUTABLE TO:
Institutional Class Shares $ 18,292 $ 62,907 $ 105,007
========== ========== ===========
CAPITAL SHARES OUTSTANDING:
Institutional Class 1,772,092 6,436,126 12,636,006
========== ========== ===========
NET ASSET VALUE PER SHARE:
Institutional Class $ 10.32 $ 9.77 $ 8.31
========== ========== ===========
</TABLE>
(1) The identified cost for the TCW Galileo Asia Pacific Equities Fund, the TCW
Galileo Emerging Markets Equities Fund and the TCW Galileo Emerging Markets
Income Fund at April 30, 2000, was $15,594, $54,761 and $99,137,
respectively.
See accompanying notes to financial statements.
29
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TCW Galileo Funds, Inc.
--------------------------------------------------------------------------------
International
Statements of Assets and Liabilities (Unaudited) April 30, 2000
<TABLE>
<CAPTION>
TCW Galileo TCW Galileo TCW Galileo TCW Galileo
European International Japanese Latin America
Equities Fund Equities Fund Equities Fund Equities Fund
------------- ------------- ------------- -------------
Dollar Amounts in Thousands
(Except per Share Amounts)
<S> <C> <C> <C> <C>
ASSETS
Investments, at Value /(1)/ $ 70,298 $ 49,814 $ 57,419 $ 3,648
Receivables for Securities Sold 432 -- 919 --
Receivable for Fund Shares Sold -- -- 220 --
Interest and Dividends Receivable 194 11 109 23
Foreign Tax Reclaim Receivables 101 1 7 --
Deferred Organization Costs 3 5 3 --
---------- ---------- ---------- --------
Total Assets 71,028 49,831 58,677 3,671
---------- ---------- ---------- --------
LIABILITIES
Payables for Securities Purchased 389 -- 3,134 --
Payable Upon Return of Securities Loaned (Note 3) 9,105 -- 3,799 --
Unrealized Depreciation of Forward Foreign
Currency Contracts (Note 10) 13 -- -- --
Accrued Management Fees 33 -- 31 3
Other Accrued Expenses 140 43 47 40
---------- ---------- ---------- --------
Total Liabilities 9,680 43 7,011 43
---------- ---------- ---------- --------
NET ASSETS $ 61,348 $ 49,788 $ 51,666 $ 3,628
========== ========== ========== ========
NET ASSETS CONSIST OF:
Paid-in Capital $ 26,057 $ 8,058 $ 31,966 $ 14,132
Undistributed Net Realized Gain (Loss) on
Investments and Foreign Currency 21,758 14,222 14,895 (11,363)
Unrealized Appreciation on Investments and
Foreign Currency 13,467 18,518 5,313 143
Undistributed Net Investment Income (Loss) 66 8,990 (508) 716
---------- ---------- ---------- --------
NET ASSETS $ 61,348 $ 49,788 $ 51,666 $ 3,628
========== ========== ========== ========
NET ASSETS ATTRIBUTABLE TO:
Institutional Class Shares $ 60,966 $ 49,788 $ 51,666 $ 3,628
========== ========== ========== ========
Advisory Class Shares $ 382 $ -- $ -- $ --
========== ========== ========== ========
CAPITAL SHARES OUTSTANDING:
Institutional Class 3,818,404 3,044,258 3,288,311 305,880
========== ========== ========== ========
Advisory Class 23,933 -- -- --
========== ========== ========== ========
NET ASSET VALUE PER SHARE:
Institutional Class $ 15.97 $ 16.35 $ 15.71 $ 11.86
========== ========== ========== ========
Advisory Class $ 15.97 $ -- $ -- $ --
========== ========== ========== ========
</TABLE>
(1) The identified cost for the TCW Galileo European Equities Fund, the TCW
Galileo International Equities Fund, the TCW Galileo Japanese Equities
Fund, and the TCW Galileo Latin America Equities Fund at April 30, 2000,
was $56,812, $31,296, $52,056 and $3,504, respectively.
See accompanying notes to financial statements.
30
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[LOGO]
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Statements of Operations (Unaudited) Six Months Ended April 30, 2000
<TABLE>
<CAPTION>
TCW Galileo TCW Galileo
TCW Galileo Emerging Emerging
Asia Pacific Markets Markets
Equities Fund Equities Fund Income Fund
------------- ------------- -----------
Dollar Amounts in Thousands
<S> <C> <C> <C>
INVESTMENT INCOME
Income:
Dividends /(1)/ $ 70 $ 451 $ --
Interest (Note 2) /(1)/ 24 63 5,171
------ ------ ------
Total 94 514 5,171
------ ------ ------
Expenses:
Management Fees 104 316 356
Accounting Service Fees 17 17 17
Administration Fees 12 12 12
Transfer Agent Fees 19 19 16
Custodian Fees 18 41 18
Professional Fees 10 11 12
Directors' Fees & Expenses 4 4 4
Registration Fees:
Institutional Class 1 -- --
Other 9 18 22
------ ------ ------
Total Expenses 194 438 457
Less Expenses Borne by Investment Advisor 12 -- --
------ ------ ------
Net Expenses 182 438 457
------ ------ ------
Net Investment Income (Loss) (88) 76 4,714
------ ------ ------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS
Net Realized Gain (Loss) on:
Investments 4,439 4,872 3,285
Foreign Currency (8) (89) (1)
Change in Unrealized Appreciation on:
Investments 587 4,141 1,727
Foreign Currency -- 4 200
------ ------ ------
Net Realized and Unrealized Gain
on Investments and Foreign
Currency Transactions 5,018 8,928 5,211
------ ------ ------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $4,930 $9,004 $9,925
====== ====== ======
</TABLE>
(1) Net of foreign taxes withheld of $8, $38 and $25 for the TCW Galileo Asia
Pacific Equities Fund, the TCW Galileo Emerging Markets Equities Fund and
the TCW Galileo Emerging Markets Income Fund, respectively.
See accompanying notes to financial statements.
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TCW Galileo Funds, Inc.
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International
Statements of Operations (Unaudited) Six Months Ended April 30, 2000
<TABLE>
<CAPTION>
TCW Galileo TCW Galileo TCW Galileo TCW Galileo
European International Japanese Latin America
Equities Fund Equities Fund Equities Fund Equities Fund
------------- ------------- ------------- -------------
Dollar Amounts in Thousands
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Dividends /(1)/ $ 179 $ 7,285 $ 101 $ 28
Interest (Note 2) 39 24 37 6
------- ------- ------ ------
Total 218 7,309 138 34
------- ------- ------ ------
Expenses:
Management Fees 265 -- 200 23
Accounting Service Fees 20 12 17 17
Administration Fees 14 14 12 12
Transfer Agent Fees:
Institutional Class 19 19 15 19
Advisory Class 7 -- -- --
Custodian Fees 30 1 27 16
Professional Fees 15 12 11 10
Directors' Fees & Expenses 4 4 4 4
Registration Fees:
Institutional Class 5 -- -- --
Advisory Class 3 -- -- --
Amortization of Deferred
Organization Costs 1 -- -- --
Other 15 15 16 11
------- ------- ------ ------
Total Expenses 398 77 302 112
Less Expenses Borne by Investment
Advisor 12 -- -- 72
------- ------- ------ ------
Net Expenses 386 77 302 40
------- ------- ------ ------
Net Investment Income (Loss) (168) 7,232 (164) (6)
------- ------- ------ ------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS
Net Realized Gain (Loss) on:
Investments 20,778 16,366 14,206 1,020
Foreign Currency (26) (1) (65) 2
Change in Unrealized Appreciation
(Depreciation) on:
Investments 421 (3,143) (4,244) 406
Foreign Currency (19) (1) (69) 16
------- ------- ------ ------
Net Realized and Unrealized
Gain on Investments and Foreign
Currency Transactions 21,154 13,221 9,828 1,444
------- ------- ------ ------
INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $20,986 $20,453 $9,664 $1,438
======= ======= ====== ======
</TABLE>
(1) Net of foreign taxes withheld of $19, $1, $18 and $7 for the TCW Galileo
European Equities Fund, the TCW Galileo International Equities Fund, the
TCW Galileo Japanese Equities Fund and the TCW Galileo Latin America
Equities Fund, respectively.
See accompanying notes to financial statements.
32
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Statements of Changes in Net Assets
<TABLE>
<CAPTION>
TCW Galileo
TCW Galileo Asia Emerging Markets
Pacific Equities 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) $ (88) $ (49) $ 76 $ (51)
Net Realized Gain on Investments
and Foreign Currency Transactions 4,431 2,712 4,783 1,220
Change in Unrealized Appreciation on
Investments and Foreign Currency
Transactions 587 3,653 4,145 5,882
------- ------- ------- -------
Increase in Net Assets Resulting from
Operations 4,930 6,316 9,004 7,051
------- ------- ------- -------
NET CAPITAL SHARE TRANSACTIONS
(Note 8)
Institutional Class (8,708) 7,272 27,312 777
------- ------- ------- -------
Increase (Decrease) in Net Assets (3,778) 13,588 36,316 7,828
NET ASSETS
Beginning of Period 22,070 8,482 26,591 18,763
------- ------- ------- -------
End of Period $18,292 $22,070 $62,907 $26,591
======= ======= ======= =======
</TABLE>
See accompanying notes to financial statements.
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TCW Galileo Funds, Inc.
--------------------------------------------------------------------------------
International
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
TCW Galileo Emerging TCW Galileo European
Markets Income Fund Equities Fund
------------------------ ------------------------
Six Months Six Months
Ended Ended
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) $ 4,714 $ 7,029 $ (168) $ 460
Net Realized Gain on Investments and
Foreign Currency Transactions 3,284 2,047 20,752 4,966
Change in Unrealized Appreciation on
Investments and Foreign Currency
Transactions 1,927 6,990 402 5,763
-------- ------- -------- -------
Increase in Net Assets
Resulting from Operations 9,925 16,066 20,986 11,189
-------- ------- -------- -------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net Investment Income:
Institutional Class (4,797) (6,940) (365) (145)
Distributions in Excess of Net Investment
Income:
Institutional Class (102) -- -- --
Distributions from Net Realized Gain:
Institutional Class -- -- (4,010) (1,652)
Advisory Class -- -- (6) --
-------- ------- -------- -------
Total Distributions to Shareholders (4,899) (6,940) (4,381) (1,797)
-------- ------- -------- -------
NET CAPITAL SHARE TRANSACTIONS (Note 8)
Institutional Class 18,868 41,897 (51,113) 22,111
Advisory Class -- -- 218 141
-------- ------- -------- -------
Increase (Decrease) in Net
Assets Resulting from Net
Capital Share Transactions 18,868 41,897 (50,895) 22,252
-------- ------- -------- -------
Increase (Decrease) in Net Assets 23,894 51,023 (34,290) 31,644
NET ASSETS
Beginning of Period 81,113 30,090 95,638 63,994
-------- ------- -------- -------
End of Period $105,007 $81,113 $ 61,348 $95,638
======== ======= ======== =======
</TABLE>
See accompanying notes to financial statements.
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Statements of Changes in Net Assets
<TABLE>
<CAPTION>
TCW Galileo International TCW Galileo Japanese
Equities 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) $ 7,232 $ 1,558 $ (164) $ (86)
Net Realized Gain on Investments and
Foreign Currency Transactions 16,365 3,141 14,141 16,487
Change in Unrealized Appreciation
(Depreciation) on Investments and
Foreign Currency Transactions (3,144) 17,357 (4,313) 10,743
-------- -------- -------- -------
Increase in Net Assets
Resulting from Operations 20,453 22,056 9,664 27,144
-------- -------- -------- -------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net
Investment Income:
Institutional Class -- (146) -- (6)
Distributions in Excess of
Net Investment Income:
Institutional Class -- -- (126) --
Distributions from Net
Realized Gain:
Institutional Class (4,533) -- (10,225) --
-------- -------- -------- -------
Total Distributions to Shareholders (4,533) (146) (10,351) (6)
-------- -------- -------- -------
NET CAPITAL SHARE TRANSACTIONS (Note 8)
Institutional Class (78,468) 15,573 (24,622) 21,189
-------- -------- -------- -------
Increase (Decrease) in Net Assets (62,548) 37,483 (25,309) 48,327
NET ASSETS
Beginning of Period 112,336 74,853 76,975 28,648
-------- -------- -------- -------
End of Period $ 49,788 $112,336 $ 51,666 $76,975
======== ======== ======== =======
</TABLE>
See accompanying notes to financial statements.
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International
Statements of Changes in Net Assets
TCW Galileo
Latin America
Equities Fund
------------------------
Six Months
Ended
April 30, Year Ended
2000 October 31,
(Unaudited) 1999
----------- -----------
Dollar Amounts in
Thousands
OPERATIONS
Net Investment Income (Loss) $ (6) $ 74
Net Realized Gain (Loss) on
Investments and Foreign Currency Transactions 1,022 (1,899)
Change in Unrealized Appreciation on
Investments and Foreign Currency Transactions 422 484
------- -------
Increase (Decrease) in Net Assets
Resulting from Operations 1,438 (1,341)
------- -------
NET CAPITAL SHARE TRANSACTIONS (Note 8)
Institutional Class (5,749) (2,516)
------- -------
(Decrease) in Net Assets (4,311) (3,857)
NET ASSETS
Beginning of Period 7,939 11,796
------- -------
End of Period $ 3,628 $ 7,939
======= =======
See accompanying notes to financial statements.
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Notes to Financial Statements (Unaudited) April 30, 2000
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>
37
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TCW Galileo Funds, Inc.
--------------------------------------------------------------------------------
International
Notes to Financial Statements (Unaudited) (Continued)
Note 1 -- Organization (Continued)
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 publicly traded 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-Backed Seeks income by investing primarily in long-term
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.
</TABLE>
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April 30, 2000
International (Continued)
<TABLE>
<CAPTION>
WTCW Galileo Fund Investment Objective
---------------- --------------------------------------------------
<S> <C>
Non-Diversified International Equity Funds
TCW Galileo Japanese Equities Fund Seeks long-term capital appreciation by investing
primarily in Japanese equity securities.
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.
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TCW Galileo Funds, Inc.
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International
Notes to Financial Statements (Unaudited) (Continued)
Note 2 -- Significant Accounting Policies (Continued)
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. The
TCW Galileo Emerging Markets Income Fund recognizes as interest income discounts
on securities purchased using a constant yield to maturity accretion method.
Premiums on securities purchased are not amortized.
Foreign Currency Translation: The books and records of each Fund are maintained
in U.S. dollars as follows: (1) the foreign currency market value of investment
securities, and other assets and liabilities stated in foreign currencies, are
translated using the daily spot rate; and (2) purchases, sales, income and
expenses are translated at the rate of exchange prevailing on the respective
dates of such transactions. The resultant exchange gains and losses are included
in the Statements of Operations with the related net realized gain (loss).
Pursuant to U.S. federal income tax regulations, certain foreign exchange gains
and losses included in realized and unrealized gains and losses are included in,
or are a reduction of, ordinary income for federal income tax purposes. It is
not practicable to separately identify that portion of gains and losses of the
Funds that arise as a result of changes in the exchange rates from the
fluctuations that arise from changes in market prices of investments during the
year.
Forward Foreign Currency Contracts: Certain Funds may enter into forward
foreign currency contracts as a hedge against fluctuations in foreign exchange
rates. Forward foreign currency contracts are marked-to-market daily and the
change in market value is recorded by the Fund as an unrealized gain or loss.
When the contract is closed or delivery is taken, the Fund records a realized
gain or loss equal to the difference between the value of the contract at the
time it was opened and the value at the time it was closed. Risks may arise upon
entering into these contracts from the potential inability of counterparties to
meet the terms of their contracts and from unanticipated movements in the value
of the foreign currency relative to the U.S. dollar (see Note 10).
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
40
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April 30, 2000
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: Organization costs of $10,000 per Fund for the TCW
Galileo Asia Pacific Equities Fund and the TCW Galileo Emerging Markets Equities
Fund and $50,000 for the TCW Galileo Latin America Equities Fund have been
completely amortized as of April 30, 2000. Organizational costs of approximately
$7,000, $9,000 and $7,000 for the TCW Galileo European Equities Fund, TCW
Galileo International Equities Fund and the TCW Galileo Japanese Equities Fund,
respectively, have been deferred and are also being amortized on a straight line
basis over a five-year period from the commencement of operations.
Organizational costs for the TCW Galileo Emerging Markets Income Fund were de
minimus and therefore, were not deferred. Those costs were expensed as incurred.
Upon formation of the Funds, the Company sold and issued to the Advisor 10,008
shares of common stock (one share each of the TCW Galileo Asia Pacific Equities
Fund, the TCW Galileo Emerging Markets Equities Fund, the TCW Galileo European
Equities Fund, the TCW Galileo International Equities Fund, and the TCW Galileo
Japanese Equities Fund, and 2,000 shares of the TCW Galileo Latin America
Equities Fund, collectively the "Initial Shares"). In the event the 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 gains and losses are allocated among the classes of shares of the Fund
based on the relative net assets of each class. Distribution fees, which are
directly attributable to a class of shares are charged to that class'
operations. All other expenses are charged to each Fund as incurred on a
specific identification basis.
Net Asset Value: The Net Asset Value of each Fund's shares is determined by
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 Emerging Markets Income Fund
declares and pays, or reinvests, dividends from net investment income monthly.
All other Funds declare and pay, or reinvest, dividends from net investment
income annually. 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.
41
<PAGE>
TCW Galileo Funds, Inc.
--------------------------------------------------------------------------------
International
Notes to Financial Statements (Unaudited) (Continued)
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 Asia Pacific Equities
Fund $1,856,183 $1,921,397 $14,222
TCW Galileo European Equities Fund 8,786,654 9,105,466 8,904
TCW Galileo Japanese Equities Fund 3,643,096 3,799,300 8,207
</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, 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 TCW Galileo
Asia Pacific Emerging Markets Emerging Markets European
Equities Fund Equities Fund Income Fund Equities Fund
------------- ---------------- ---------------- -------------
<S> <C> <C> <C> <C>
Unrealized Appreciation $ 6,022 $ 12,931 $ 6,451 $ 15,107
Unrealized (Depreciation) (1,355) (4,852) (1,425) (1,640)
-------- -------- -------- --------
Net Unrealized Appreciation $ 4,667 $ 8,079 $ 5,026 $ 13,467
======== ======== ======== ========
Cost of Investments for
Federal Income Tax Purposes $ 15,594 $ 54,761 $ 99,137 $ 56,812
======== ======== ======== ========
<CAPTION>
TCW Galileo TCW Galileo TCW Galileo
International Japanese Latin America
Equities Fund Equities Fund Equities Fund
------------- ------------- -------------
<S> <C> <C> <C>
Unrealized Appreciation $18,690 $ 9,083 $ 417
Unrealized (Depreciation) (172) (3,770) (274)
------- ------- ------
Net Unrealized Appreciation $18,518 $ 5,313 $ 143
======= ======= ======
Cost of Investments for Federal Income Tax
Purposes $31,296 $52,056 $3,504
======= ======= ======
</TABLE>
At April 30, 2000 the following Funds had net realized loss carryforwards for
federal income tax purposes (amounts in thousands):
Expiring In
------------------------------
2003 2004 2006 2007
------ ------ ------ ------
TCW Galileo Asia Pacific Equities Fund $ -- $ -- $4,364 $ --
TCW Galileo Emerging Markets Equities Fund -- -- 6,430 --
TCW Galileo Emerging Markets Income Fund -- -- 4,342 --
TCW Galileo Latin America Equities Fund 6,586 3,423 -- 1,259
42
<PAGE>
[LOGO]
--------------------------------------------------------------------------------
April 30, 2000
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 Asia Pacific Equities Fund 1.00%
TCW Galileo Emerging Markets Equities Fund 1.00%
TCW Galileo Emerging Markets Income Fund 0.75%
TCW Galileo European Equities Fund 0.75%
TCW Galileo International Equities Fund 0.00%
TCW Galileo Japanese Equities Fund 0.75%
TCW Galileo Latin America Equities Fund 1.00%
The ordinary operating expenses of the TCW Galileo Asia Pacific Equities Fund,
the TCW Galileo Emerging Markets Equities Fund and the TCW Galileo Latin America
Equities Fund are limited to 1.75% of each Fund's daily net assets.
The ordinary operating expenses for the following Funds (each share class) are
limited to the average of the total expense ratios 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 Emerging Markets Income Fund 1.80%
TCW Galileo European Equities Fund 1.67%
TCW Galileo International Equities Fund 1.68%
TCW Galileo Japanese Equities Fund 2.00%
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. Distribution fees for the
six months ended April 30, 2000 were less than $1,000 for the TCW Galileo
European Equities Fund and as a result, are not disclosed in the Statements of
Operations.
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 TCW Galileo
Asia Pacific Emerging Markets Emerging Markets European
Equities Fund Equities Fund Income Fund Equities Fund
------------- ---------------- ---------------- -------------
<S> <C> <C> <C> <C>
Purchases at Cost $ 6,330 $41,924 $82,777 $25,302
======= ======= ======= =======
Sales Proceeds $15,701 $15,482 $63,716 $81,861
======= ======= ======= =======
</TABLE>
43
<PAGE>
TCW Galileo Funds, Inc.
--------------------------------------------------------------------------------
International
Notes to Financial Statements (Unaudited) (Continued)
Note 7 -- Purchases and Sales of Securities (Continued)
TCW Galileo TCW Galileo TCW Galileo
International Japanese Latin America
Equities Fund Equities Fund Equities Fund
------------- ------------- -------------
Purchases at Cost $12,676 $52,580 $ 1,460
======= ======= =======
Sales Proceeds $89,395 $89,043 $ 7,092
======= ======= =======
There were no purchases or sales of U.S. Government Securities for the six
months ended April 30, 2000.
Note 8 -- Capital Share Transactions
TCW Galileo Asia Pacific Equities Fund
<TABLE>
<CAPTION>
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 181,963 $ 2,164 1,521,390 $ 11,280
Shares Redeemed (1,045,717) (10,872) (550,972) (4,008)
---------- -------------- ---------- -----------
Net Increase (Decrease) (863,754) $ (8,708) 970,418 $ 7,272
========== ============== ========== ===========
<CAPTION>
TCW Galileo Emerging Markets Equities
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 3,853,623 $ 35,888 2,061,671 $ 14,832
Shares Redeemed (794,278) (8,576) (2,052,759) (14,055)
---------- -------------- ---------- -----------
Net Increase 3,059,345 $ 27,312 8,912 $ 777
========== ============== ========== ===========
<CAPTION>
TCW Galileo Emerging Markets Income
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 3,223,133 $ 27,101 7,899,551 $ 56,896
Shares Issued upon Reinvestment of
Dividends 576,722 4,747 727,798 5,319
Shares Redeemed (1,511,737) (12,980) (2,849,086) (20,318)
---------- -------------- ---------- -----------
Net Increase 2,288,118 $ 18,868 5,778,263 $ 41,897
========== ============== ========== ===========
</TABLE>
44
<PAGE>
[LOGO]
--------------------------------------------------------------------------------
April 30, 2000
<TABLE>
<CAPTION>
TCW Galileo European Equities Fund
Institutional Class 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 1,216,781 $ 19,835 3,553,003 $ 44,073
Shares Issued upon Reinvestment of
Dividends 306,031 4,349 150,626 1,791
Shares Redeemed (4,990,451) (75,297) (1,888,163) (23,753)
---------- -------------- ---------- -----------
Net Increase (Decrease) (3,467,639) $ (51,113) 1,815,466 $ 22,111
========== ============== ========== ===========
<CAPTION>
TCW Galileo European Equities Fund
Advisory Class Six Months Ended
April 30, 2000 Period Ended
(Unaudited) October 31, 1999 (1)
-------------------------- --------------------------
Amount Amount
Shares (in thousands) Shares (in thousands)
---------- -------------- ---------- --------------
<S> <C> <C> <C> <C>
Shares Sold 20,918 $ 336 69,388 $ 861
Shares Issued upon Reinvestment of
Dividends 475 7 -- --
Shares Redeemed (8,799) (125) (58,049) (720)
---------- -------------- ---------- -----------
Net Increase 12,594 $ 218 11,339 $ 141
========== ============== ========== ===========
</TABLE>
(1) For the period March 1, 1999 (Commencement of offering of Advisory Class
shares) through October 31, 1999.
<TABLE>
<CAPTION>
TCW Galileo International Equities 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 383,723 $ 6,402 2,694,927 $ 32,950
Shares Issued upon Reinvestment of
Dividends 306,545 4,503 3,535 40
Shares Redeemed (5,860,764) (89,373) (1,444,569) (17,417)
---------- -------------- ---------- -----------
Net Increase (Decrease) (5,170,496) $ (78,468) 1,253,893 $ 15,573
========== ============== ========== ===========
<CAPTION>
TCW Galileo Japanese Equities 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 886,944 $ 14,283 2,769,489 $ 34,755
Shares Issued upon Reinvestment of
Dividends 554,575 7,864 192 3
Shares Redeemed (3,189,933) (46,769) (1,130,500) (13,569)
---------- -------------- ---------- -----------
Net Increase (Decrease) (1,748,414) $ (24,622) 1,639,181 $ 21,189
========== ============== ========== ===========
</TABLE>
45
<PAGE>
TCW Galileo Funds, Inc.
--------------------------------------------------------------------------------
International
Notes to Financial Statements (Unaudited) (Continued)
Note 8 -- Capital Share Transactions (Continued)
<TABLE>
<CAPTION>
TCW Galileo Latin America Equities
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 91,324 $ 1,287 740,603 $ 7,251
Shares Issued upon Reinvestment of
Dividends 3 -- -- --
Shares Redeemed (632,520) (7,036) (1,269,710) (9,767)
---------- -------------- ---------- -----------
Net (Decrease) (541,193) $ (5,749) (529,107) $ (2,516)
========== ============== ========== ===========
</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 Asia Pacific Equities Fund:
Number of Date of
Shares Investment Acquisition Cost
--------- ----------------------------------------- ----------- ----------
212 Asustek Computer, Incorporated (144A) (GDR) 02/10/99 $ 1,090
(Taiwan)
198,221 Taiwan Semiconductor Manufacturing 01/02/00 1,197,825
Company, Limited (Local Shares) (Taiwan)
6,590 Winbond Electronics Corporation (144A) (GDR) 01/29/99 75,456
(Taiwan)
The total value of restricted securities is $1,483,930, which represents 8.1%
of net assets of the Fund at April 30, 2000.
TCW Galileo Emerging Markets Equities Fund:
Number of Date of
Shares Investment Acquisition Cost
--------- ------------------------------------------- ----------- ----------
196 Asustek Computer, Incorporated 11/10/98 $ 986
(144A) (GDR) (Taiwan)
3,691 Mol Magyar Olaj-es Gazipari Rt. 10/17/97 66,669
(144A) (GDR) (Hungary)
526,610 Taiwan Semiconductor Manufacturing 11/30/99 3,096,949
Company, Limited (Local Shares) (Taiwan)
15,965 Telekomunikacja Polska, S.A. (144A) (GDR) 11/09/98 70,885
(Poland)
3,780 Winbond Electronics Corporation (144A) (GDR) 01/29/99 43,281
(Taiwan)
46
<PAGE>
[LOGO]
--------------------------------------------------------------------------------
April 30, 2000
The total value of restricted securities is $3,691,961, which represents 5.9% of
net assets of the Fund at April 30, 2000.
TCW Galileo Emerging Markets Income Fund:
Principal Date of
Amount Investment Acquisition Cost
-------------- --------------------------------------- ----------- ----------
EUR 1,300,000 Pannon Finance B.V., (144A), 7.75%, 07/26/99 $1,384,890
due 08/03/04 (Hungary)
$ 1,130,000 Ce Casecnan Water & Energy, Series A, 10/30/98 1,003,530
11.45%, due 11/15/05 (Philippines)
EUR 1,625,000 Slovak Wireless, 11.25%, due 03/30/07 03/16/00 1,580,963
(Slovakia)
1,400,000 PTC International Finance II, S.A., 02/03/00 1,400,000
11.25%, due 12/01/09 (Poland)
820,000 Russian Federation, (144A), 12.75%, due 07/23/98 727,340
06/24/28, Par Put 06/24/08, (Russia)
13,765,000 Russian Federation, (Reg S), 12.75%, due 07/23/98 7,484,800
06/24/28, Par Put 06/24/08 (Russia)
EUR - EURO CURRENCY.
The total value of restricted securities is $16,927,703, which represents 16.1%
of net assets of the Fund at April 30, 2000.
Note 10 -- Forward Foreign Currency Contracts
The Fund listed below invested in forward foreign currency contracts during the
six months ended April 30, 2000. The contracts are used for the purpose of
hedging against foreign exchange risk arising from the Funds investment in
foreign securities. These contracts are "marked-to-market" at the valuation date
at the applicable translation rates and any resulting unrealized gains or losses
are recorded in the Fund's financial statements. The Fund records realized gains
or losses at the time the forward contract is closed. There were no realized
gains or losses recorded in the financial statements for the six months ended
April 30, 2000. A forward contract is extinguished through a sale or the
expiration of the contract. Risks may arise upon entering into these contracts
from the potential inability of counterparties to meet the terms of their
contracts and from unanticipated movements in the value of the foreign currency
relative to the U.S. dollar. The following forward foreign currency contracts
were outstanding as of April 30, 2000:
TCW Galileo Emerging Markets Income Fund:
Unrealized
Expiration In Exchange Appreciation
Date Contract to Sell for U.S. $ on Contract
---------- ------------------------ ----------- ------------
08/03/2001 Euro Currency 1,300,000 $1,459,250 $ 240,942
TCW Galileo European Equities Fund:
Unrealized
Expiration In Exchange (Depreciation)
Date Contract to Sell for U.S. $ on Contract
---------- ------------------------ ----------- --------------
05/02/2000 Euro Currency 157,096 $ 148,031 $ (4,860)
05/31/2000 Euro Currency 269,456 $ 254,366 $ (8,280)
47
<PAGE>
TCW Galileo Asia Pacific Equities Fund
--------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
Six Months
Ended Year Ended October 31,
April 30, 2000 -------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
-------------- -------- ------ ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value per
Share, Beginning of Period $ 8.37 $ 5.09 $ 7.37 $ 9.61 $ 8.67 $ 10.19
------- ------- ------ ------- ------- -------
Income (Loss) from Investment Operations:
Net Investment Income (Loss) (0.05) (0.02) 0.02 (0.01) 0.06 0.06
Net Realized and Unrealized Gain (Loss)
on Investments 2.00 3.30 (1.04) (2.10) 0.93 (1.19)
------- ------- ------ ------- ------- -------
Total from Investment Operations 1.95 3.28 (1.02) (2.11) 0.99 (1.13)
------- ------- ------ ------- ------- -------
Less Distributions:
Distributions from Net Investment Income -- -- -- (0.08) (0.05) (0.01)
Distributions in Excess of Net
Investment Income -- -- -- (0.05) -- (0.22)
Distributions from Net Realized Gain -- -- (1.26) -- -- (0.16)
------- ------- ------ ------- ------- -------
Total Distributions -- -- (1.26) (0.13) (0.05) (0.39)
------- ------- ------ ------- ------- -------
Net Asset Value per Share, End of Period $ 10.32 $ 8.37 $ 5.09 $ 7.37 $ 9.61 $ 8.67
======= ======= ====== ======= ======= =======
Total Return 23.30%/(1)/ 64.44% (14.80)% (22.40)% 11.36% (10.98)%
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $18,292 $22,070 $8,482 $21,327 $48,266 $46,709
Ratio of Net Expenses to Average Net
Assets 1.75%/(2)(3)/ 2.03%/(3)/ 2.48% 1.49% 1.43% 1.47%/(3)/
Ratio of Net Investment Income (Loss) to
Average Net Assets (0.83)%/(2)/ (0.34)% 0.36% (0.02)% 0.66% 0.74%
Portfolio Turnover Rate 30.10%/(1)/ 119.72% 190.33% 81.92% 84.81% 102.01%
</TABLE>
(1) For the six-months ended April 30, 2000 and not indicative of a full
year's operation 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
annual operating expenses of the Fund as disclosed in Note 5 of the
Notes to the Financial Statements. Had such action not been taken, total
operating expenses, as a percentage of net assets, would have been 1.87%
for the six-months ended April 30, 2000 and 2.05% and 1.51% for the
years ended October 31, 1999 and 1995, respectively.
See accompanying notes to financial statements.
48
<PAGE>
TCW Galileo Emerging Markets Equities Fund [LOGO]
--------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
Six Months
Ended Year Ended October 31,
April 30, 2000 --------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
-------------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value per
Share, Beginning of Period $ 7.87 $ 5.57 $ 8.32 $ 8.18 $ 7.19 $ 9.73
------- ------- ------- ------- ------- -------
Income (Loss) from Investment Operations:
Net Investment Income (Loss) 0.01 (0.02) 0.09 0.03 0.07 0.04
Net Realized and Unrealized Gain (Loss)
on Investments 1.89 2.32 (2.83) 0.22 0.94 (2.58)
------- ------- ------- ------- ------- -------
Total from Investment Operations 1.90 2.30 (2.74) 0.25 1.01 (2.54)
------- ------- ------- ------- ------- -------
Less Distributions:
Distributions from Net Investment Income -- -- (0.01) (0.11) (0.02) --
------- ------- ------- ------- ------- -------
Net Asset Value per Share, End of Period $ 9.77 $ 7.87 $ 5.57 $ 8.32 $ 8.18 $ 7.19
======= ======= ======= ======= ======= =======
Total Return 24.14%/(1)/ 41.29% (32.97)% 2.82% 14.14% (26.11)%
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $62,907 $26,591 $18,763 $47,726 $57,639 $51,873
Ratio of Net Expenses to Average Net
Assets 1.39%/(2)/ 2.02%/(3)/ 1.70% 1.50% 1.41% 1.55%
Ratio of Net Investment Income (Loss) to
Average Net Assets 0.24%/(2)/ (0.24)% 1.15% 0.36% 0.82% 0.54%
Portfolio Turnover Rate 26.70%/(1)/ 152.93% 102.28% 79.80% 83.76% 74.24%
</TABLE>
(1) For the six-months ended April 30, 2000 and not indicative of a full year's
operation results.
(2) Annualized.
(3) The Investment Advisor had voluntarily agreed to reduce its fee, or to pay
the operating expenses of the Fund as disclosed in Note 5 of the Notes to
the Financial Statements for the year ended October 31, 1999. Had such
action not been taken, total operating expenses, as a percentage of net
assets, would have been 2.50% for the year ended October 31, 1999.
See accompanying notes to financial statements.
49
<PAGE>
TCW Galileo Emerging Markets Income Fund
--------------------------------------------------------------------------------
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 $ 7.84 $ 6.58 $ 10.00
-------- ------- -------
Income (Loss) from Investment Operations:
Net Investment Income 0.41 0.84 0.37
Net Realized and Unrealized Gain (Loss) on Investments 0.48 1.25 (3.41)
-------- ------- -------
Total from Investment Operations 0.89 2.09 (3.04)
-------- ------- -------
Less Distributions:
Distributions from Net Investment Income (0.41) (0.83) (0.37)
Distributions in Excess of Net Investment Income (0.01) -- (0.01)
-------- ------- -------
Total Distributions (0.42) (0.83) (0.38)
-------- ------- -------
Net Asset Value per Share, End of Period $ 8.31 $ 7.84 $ 6.58
======== ======= =======
Total Return 11.63%/(1)/ 33.31% (30.67)%/(2)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $105,007 $81,113 $30,090
Ratio of Net Expenses to Average Net Assets 0.95%/(3)/ 1.01% 1.53%/(3)/
Ratio of Net Investment Income to Average Net Assets 9.93%/(3)/ 11.37% 11.90%/(3)/
Portfolio Turnover Rate 70.23%/(1)/ 113.00% 68.46%/(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.
See accompanying notes to financial statements.
50
<PAGE>
TCW Galileo European Equities Fund [LOGO]
--------------------------------------------------------------------------------
Institutional Class
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 $ 13.11 $ 11.70 $ 10.00
------- ------- -------
Income (Loss) from Investment Operations:
Net Investment Income (Loss) (0.04) 0.07 0.06
Net Realized and Unrealized Gain on Investments 3.50 1.65 1.64
------- ------- -------
Total from Investment Operations 3.46 1.72 1.70
------- ------- -------
Less Distributions:
Distributions from Net Investment Income (0.05) (0.03) --
Distributions from Net Realized Gain (0.55) (0.28) --
------- ------- -------
Total Distributions (0.60) (0.31) --
------- ------- -------
Net Asset Value per Share, End of Period $ 15.97 $ 13.11 $ 11.70
======= ======= =======
Total Return 26.96%/(1)/ 15.16% 17.00%/(2)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $60,966 $95,489 $63,994
Ratio of Net Expenses to Average Net Assets 1.09%/(3)/ 1.01% 1.06%/(3)/
Ratio of Net Investment Income
(Loss) to Average Net Assets (0.47)%/(3)/ 0.58% 0.52%/(3)/
Portfolio Turnover Rate 35.28%/(1)/ 95.21% 72.05%/(2)/
</TABLE>
(1) For the six-months ended April 30, 2000 and not indicative of a full year's
operation 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.
51
<PAGE>
TCW Galileo European 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 $13.14 $12.37
------ ------
Income (Loss) from Investment Operations:
Net Investment Income (Loss) (0.07) 0.09
Net Realized and Unrealized Gain on Investments 3.49 0.68
------ ------
Total from Investment Operations 3.42 0.77
------ ------
Less Distributions:
Distributions from Net Investment Income (0.04) --
Distributions from Net Realized Gain (0.55) --
------ ------
Total Distributions (0.59) --
------ ------
Net Asset Value per Share, End of Period $15.97 $13.14
====== ======
Total Return 26.57%/(1)/ 6.23%/(2)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $ 382 $ 149
Ratio of Net Expenses to Average Net Assets 1.70%/(3)(4)/ 1.69%/(3)(4)/
Ratio of Net Investment Income (Loss) to
Average Net Assets (0.94)%/(3)/ 1.12%/(3)/
Portfolio Turnover Rate 35.28%/(1)/ 95.21%/(2)/
</TABLE>
(1) For the six-months ended April 30, 2000 and not indicative of a full year's
operation 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 voluntarily agreed to reduce its fee, or to pay the
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
11.51% for the six-months ended April 30, 2000 and 54.30% for the period
ended October 31, 1999, respectively.
See accompanying notes to financial statements.
52
<PAGE>
TCW Galileo International Equities 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 $ 13.67 $ 10.75 $ 10.00
------- -------- -------
Income from Investment Operations:
Net Investment Income 1.69 0.21 0.05
Net Realized and Unrealized Gain on Investments 1.54 2.73 0.70
------- -------- -------
Total from Investment Operations 3.23 2.94 0.75
------- -------- -------
Less Distributions:
Distributions from Net Investment Income -- (0.02) --
Distributions from Net Realized Gain (0.55) -- --
------- -------- -------
Total Distributions (0.55) (0.02) --
------- -------- -------
Net Asset Value per Share, End of Period $ 16.35 $ 13.67 $ 10.75
======= ======== =======
Total Return 23.99%/(1)/ 27.39% 7.50%/(2)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $49,788 $112,336 $74,853
Ratio of Net Expenses to Average Net Assets 0.23%/(3)/ 0.18% 0.17%/(3)/
Ratio of Net Investment Income to Average
Net Assets 21.84% (3) 1.70% 0.50%/(3)/
Portfolio Turnover Rate 17.87% (1) 27.78% 21.12%/(2)/
</TABLE>
(1) For the six-months ended April 30, 2000 and not indicative of a full year's
operation 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.
53
<PAGE>
TCW Galileo Japanese Equities Fund
--------------------------------------------------------------------------------
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 $ 15.28 $ 8.43 $ 10.00
------- ------- -------
Income (Loss) from Investment Operations:
Net Investment (Loss) (0.05) (0.02) (0.04)
Net Realized and Unrealized Gain (Loss) on
Investments 2.54 6.87 (1.46)
------- ------- -------
Total from Investment Operations 2.49 6.85 (1.50)
------- ------- -------
Less Distributions:
Distributions from Net Investment Income -- -- (0.07)
Distributions in Excess of Net Investment Income (0.03) -- --
Distributions from Net Realized Gain (2.03) -- --
------- ------- -------
Total Distributions (2.06) -- (0.07)
------- ------- -------
Net Asset Value per Share, End of Period $ 15.71 $ 15.28 $ 8.43
======= ======= =======
Total Return 17.71%/(1)/ 81.26% (14.88)%/(2)/
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $51,666 $76,975 $28,648
Ratio of Net Expenses to Average Net Assets 1.13%/(3)/ 1.04% 1.20%/(3)(4)/
Ratio of Net Investment (Loss) to Average Net Assets (0.62)%/(3)/ (0.17)% (0.48)%/(3)/
Portfolio Turnover Rate 91.19%/(1)/ 149.76% 178.53%/(2)/
</TABLE>
(1) For the six-months ended April 30, 2000 and not indicative of a full year's
operation 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.
(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 October 31, 1998. Had such action not been taken, total annualized
operating expenses as a percentage of average net assets would have 1.51%
for the period November 3, 1997 (Commencement of Operations) through
October 31, 1998.
See accompanying notes to financial statements.
54
<PAGE>
TCW Galileo Latin America Equities Fund [LOGO]
--------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
Six Months
Ended Year Ended October 31,
April 30, 2000 ---------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
-------------- -------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value per
Share, Beginning of Period $ 9.37 $ 8.57 $ 12.51 $ 10.01 $ 7.92 $ 14.99
------ ------ ------- ------- ------- -------
Income (Loss) from Investment Operations:
Net Investment Income (Loss) (0.02) 0.09 0.13 0.11 0.11 0.06
Net Realized and Unrealized Gain (Loss)
on Investments 2.51 0.71 (3.80) 2.50 2.03 (5.92)
------ ------ ------- ------- ------- -------
Total from Investment Operations 2.49 0.80 (3.67) 2.61 2.14 (5.86)
------ ------ ------- ------- ------- -------
Less Distributions:
Distributions from Net Investment Income -- -- (0.27) (0.11) (0.05) --
Distributions in Excess of Net Realized Gain -- -- -- -- -- (1.21)
------ ------ ------- ------- ------- -------
Total Distributions -- -- (0.27) (0.11) (0.05) (1.21)
------ ------ ------- ------- ------- -------
Net Asset Value per
Share, End of Period $11.86 $ 9.37 $ 8.57 $ 12.51 $ 10.01 $ 7.92
====== ====== ======= ======= ======= =======
Total Return 26.57%/(1)/ 9.34% (29.95)% 26.24% 27.08% (40.95)%
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $3,628 $7,939 $11,796 $55,336 $68,323 $38,942
Ratio of Net Expenses to Average Net Assets 1.75%/(2)(3)/ 2.20%/(3)/ 1.64% 1.46% 1.44% 1.58%
Ratio of Net Investment Income (Loss) to
Average Net Assets (0.27)%/(2)/ 1.05% 1.13% 0.87% 1.12% 0.59%
Portfolio Turnover Rate 29.50%/(1)/ 162.12% 32.33% 21.17% 44.32% 75.62%
</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 as disclosed in Note 5 of the Notes to
the Financial Statements. Had such action not been taken, the total
operating expenses, as a percentage of average net assets, would have been
4.91% for the six-months ended April 30, 2000 and 3.24% for the year ended
October 31, 1999.
See accompanying notes to financial statements
55
<PAGE>
SHAREHOLDER INFORMATION
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
TRANSFER AGENT
Richard W. Call
Director DST Systems, Inc.
210 West 10th Street
Matthew K. Fong Kansas City, Missouri 64105
Director
DISTRIBUTOR
Thomas E. Larkin, Jr.
Director TCW Brokerage Services
865 South Figueroa Street
Charles W. Baldiswieler Los Angeles, California 90017
Senior Vice President
INDEPENDENT AUDITORS
Michael E. Cahill
Senior Vice President, Deloitte & Touche, LLP
General Counsel and Assistant Secretary 350 South Grand Avenue
Los Angeles, California 90017
Jeffery V. Peterson
Senior Vice President
Robert S. Sant
Senior Vice President
Philip K. Holl
Secretary
Hilary G.D. Lord
Assistant Secretary
Peter C. DiBona
Treasurer
