N-CSR 1 a2113034zn-csr.txt N-CSR UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number: 811-7170 TCW GALILEO FUNDS, INC. (Exact name of registrant as specified in charter) 865 SOUTH FIGUEROA STREET, SUITE 1800, LOS ANGELES, CA 90017 (Address of principal executive offices) PHILIP K. HOLL, ESQ. SECRETARY 865 SOUTH FIGUEROA STREET, SUITE 1800 LOS ANGELES, CA 90017 (Name and address of agent for service) Registrant's telephone number, including area code: (213) 244-0000 Date of fiscal year end: October 31 Date of reporting period: April 30, 2003 Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507. TCW GALILEO FUNDS APRIL 30, 2003 [GRAPHIC] SEMI-ANNUAL REPORT U.S. EQUITIES AGGRESSIVE GROWTH EQUITIES CONVERTIBLE SECURITIES DIVERSIFIED VALUE FOCUSED LARGE CAP VALUE GROWTH INSIGHTS INCOME + GROWTH LARGE CAP GROWTH LARGE CAP VALUE OPPORTUNITY SELECT EQUITIES SMALL CAP GROWTH SMALL CAP VALUE TECHNOLOGY VALUE OPPORTUNITIES [TCW GALILEO FUNDS INC. LOGO] TCW GALILEO FUNDS INC. THE POWER OF INDEPENDENT THINKING(TM) TCW GALILEO FUNDS, INC. -------------------------------------------------------------------------------- U.S. EQUITIES TABLE OF CONTENTS APRIL 30, 2003 Letter to Shareholders............................ 1 Performance Summary............................... 2 Schedules of Investments: TCW Galileo Aggressive Growth Equities Fund..... 4 TCW Galileo Convertible Securities Fund......... 7 TCW Galileo Diversified Value Fund ............. 11 TCW Galileo Focused Large Cap Value Fund........ 14 TCW Galileo Growth Insights Fund................ 16 TCW Galileo Income + Growth Fund ............... 19 TCW Galileo Large Cap Growth Fund............... 22 TCW Galileo Large Cap Value Fund................ 25 TCW Galileo Opportunity Fund ................... 28 TCW Galileo Select Equities Fund................ 33 TCW Galileo Small Cap Growth Fund............... 35 TCW Galileo Small Cap Value Fund................ 39 TCW Galileo Technology Fund..................... 45 TCW Galileo Value Opportunities Fund............ 47 Statements of Assets and Liabilities.............. 50 Statements of Operations.......................... 54 Statements of Changes in Net Assets............... 58 Notes to Financial Statements..................... 65 Financial Highlights.............................. 79
[LOGO] [ICON] -------------------------------------------------------------------------------- TO OUR SHAREHOLDERS We are pleased to submit the April 30, 2003 semi-annual reports for the TCW Galileo Funds. The following page lists each Fund's investment performance. TCW is committed to providing you with superior professional investment management and distinctive personal service through the TCW Galileo Funds. 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. We thank you for your support and look forward to assisting you in reaching your financial goals. Please call our Shareholders Services Department at (800) FUND-TCW (386-3829) or visit our website at www.tcw.com 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 May 12, 2003 1 TCW GALILEO FUNDS, INC. -------------------------------------------------------------------------------- U.S. EQUITIES PERFORMANCE SUMMARY (UNAUDITED)
TOTAL RETURN ANNUALIZED AS OF APRIL 30, 2003 ----------------------------------------------------- NAV 1-YEAR 5-YEAR 10-YEAR SINCE INCEPTION INCEPTION DATE -------- -------- ---------- ---------- --------------- -------------- TCW Galileo Aggressive Growth Equities Fund -- I Class $ 9.45 (10.51)% 1.01% N/A 11.76% (1) 11/01/94(4) TCW Galileo Aggressive Growth Equities Fund -- N Class $ 9.31 (10.82)% N/A N/A (9.15)% 03/01/99 TCW Galileo Aggressive Growth Equities Fund -- K Class $ 9.45 N/A N/A N/A 21.15% (5) 11/01/02 TCW Galileo Convertible Securities Fund -- I Class $ 7.67 (10.06)% 1.04% 7.45% (1) 9.43% (1) 01/01/89(4) TCW Galileo Diversified Value Fund -- N Class $ 8.39 (17.95)% (3.04)% (3) N/A (0.95)% (3) 01/02/98(4) TCW Galileo Focused Large Cap Value Fund -- N Class $ 7.56 (22.73)% N/A N/A (0.60)% (2) 07/20/98(4) TCW Galileo Growth Insights Fund -- N Class $ 5.05 (20.97)% (4.50)% N/A (2.33)% (2) 01/31/98(4) TCW Galileo Income + Growth Fund -- N Class $ 8.29 (13.27)% 4.24% (3) 9.25% (3) 9.55% (3) 09/19/86(4) TCW Galileo Large Cap Growth Fund -- I Class $ 7.32 (10.61)% (3.01)% N/A 1.69% (1) 06/19/97(4) TCW Galileo Large Cap Growth Fund -- N Class $ 7.31 (10.53)% N/A N/A (11.07)% 03/01/99 TCW Galileo Large Cap Value Fund -- I Class $ 9.90 (18.50)% 0.01% N/A 2.18% (1) 12/01/97(4) TCW Galileo Large Cap Value Fund -- N Class $ 9.90 (18.99)% N/A N/A (2.42)% 03/01/99 TCW Galileo Large Cap Value Fund -- K Class $ 9.90 N/A N/A N/A 1.54% (5) 11/01/02 TCW Galileo Opportunity Fund -- I Class $ 9.04 (22.41)% 3.29% (3) N/A 8.75% (3) 05/06/94(4) TCW Galileo Opportunity Fund -- N Class $ 9.01 (22.60)% 2.93% (3) 9.87% (3) 11.51% (3) 03/01/88(4) TCW Galileo Opportunity Fund -- K Class $ 9.04 N/A N/A N/A 3.91% (5) 11/01/02 TCW Galileo Select Equities Fund -- I Class $13.14 (11.69)% 0.69% 9.04% (1) 10.44% (1) 07/01/91(4) TCW Galileo Select Equities Fund -- N Class $12.96 (12.01)% N/A N/A (4.85)% 03/01/99 TCW Galileo Select Equities Fund -- K Class $13.14 (11.75)% N/A N/A (14.86)% (5) 08/06/01 TCW Galileo Small Cap Growth Fund -- I Class $10.56 (31.07)% (10.83)% 5.32% (1) 7.47% (1) 12/01/89(4) TCW Galileo Small Cap Growth Fund -- N Class $10.44 (31.23)% N/A N/A (13.47)% 03/01/99 TCW Galileo Small Cap Growth Fund -- K Class $10.56 N/A N/A N/A 3.23% (5) 11/01/02 TCW Galileo Small Cap Value Fund -- I Class $ 9.41 (33.31)% N/A N/A (1.26)% 06/14/00 TCW Galileo Small Cap Value Fund -- N Class $ 9.41 (33.31)% N/A N/A (33.31)% 05/01/02 TCW Galileo Small Cap Value Fund -- K Class $ 9.41 N/A N/A N/A (11.62)% (5) 11/01/02 TCW Galileo Technology Fund -- N Class $ 2.49 (26.11)% N/A N/A (42.75)% 11/01/00 TCW Galileo Value Opportunities Fund -- I Class $14.60 (22.42)% 10.32% N/A 13.53% (1) 11/01/96(4) TCW Galileo Value Opportunities Fund -- N Class $14.50 (22.67)% N/A N/A 2.98% 11/01/00 TCW Galileo Value Opportunities Fund -- K Class $14.60 N/A N/A N/A 11.88% (5) 11/01/02
2 [ICON] -------------------------------------------------------------------------------- NOTES TO THE PERFORMANCE SUMMARY: (1) PERFORMANCE DATA INCLUDES THE PERFORMANCE OF THE PREDECESSOR LIMITED PARTNERSHIP FOR PERIODS BEFORE THE TCW GALILEO FUNDS' REGISTRATION BECAME EFFECTIVE. THE PREDECESSOR LIMITED PARTNERSHIP WAS NOT REGISTERED UNDER THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED ("1940 ACT"), AND, THEREFORE WAS 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) PERFORMANCE DATA INCLUDES THE PERFORMANCE OF THE PREDECESSOR SEPARATELY MANAGED ACCOUNT FOR PERIODS BEFORE THE TCW GALILEO FUND'S REGISTRATION BECAME EFFECTIVE. THE PREDECESSOR SEPARATELY MANAGED ACCOUNT WAS NOT REGISTERED UNDER THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED ("1940 ACT"), AND, THEREFORE WAS NOT SUBJECTED TO CERTAIN INVESTMENT RESTRICTIONS THAT ARE IMPOSED BY THE 1940 ACT. IF THE SEPARATELY MANAGED ACCOUNT HAD BEEN REGISTERED UNDER THE 1940 ACT, THE SEPARATELY MANAGED ACCOUNT'S PERFORMANCE MAY HAVE BEEN LOWER. (3) PERFORMANCE DATA INCLUDES THE PERFORMANCE OF THE PREDECESSOR SG COWEN FUND. THE PREDECESSOR SG COWEN FUND WAS AN INVESTMENT COMPANY REGISTERED UNDER THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED. (4) INCEPTION DATE OF THE PREDECESSOR ENTITY. (5) PERFORMANCE FOR THE PERIOD FROM NOVEMBER 1, 2002 (COMMENCEMENT OF OFFERING OF K CLASS SHARES) THROUGH APRIL 30, 2003. 3 TCW GALILEO AGGRESSIVE GROWTH EQUITIES FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
NUMBER OF SHARES EQUITY SECURITIES VALUE ---------- ----------------- ------------ COMMON STOCK BANKING & FINANCIAL SERVICES (3.1% OF NET ASSETS) 2,400 Chicago Mercantile Exchange Holdings, Inc. $ 135,696+ 61,100 SEI Investments Co. 1,608,763 74,285 T. Rowe Price Group, Inc. 2,267,178 ------------ TOTAL BANKING & FINANCIAL SERVICES 4,011,637 ------------ BIOLOGICAL PRODUCTS (7.1%) 138,600 Gilead Sciences, Inc. 6,395,004*+ 74,200 MedImmune, Inc. 2,617,034* ------------ TOTAL BIOLOGICAL PRODUCTS 9,012,038 ------------ COMMERCIAL SERVICES (7.2%) 81,300 Expedia, Inc. 4,698,327*+ 114,188 Paychex, Inc. 3,555,814 48,900 Robert Half International, Inc. 796,092* 4,500 Weight Watchers International, Inc. 211,410* ------------ TOTAL COMMERCIAL SERVICES 9,261,643 ------------ COMPUTER SERVICES (10.3%) 178,000 Applied Micro Circuits Corp. 797,440* 142,800 BEA Systems, Inc. 1,529,388* 109,700 CheckFree Corp. 3,024,429*+ 142,300 Network Appliance, Inc. 1,889,744*+ 50,300 Novellus Systems, Inc. 1,410,412*+ 181,142 Yahoo!, Inc. 4,488,699* ------------ TOTAL COMPUTER SERVICES 13,140,112 ------------ COMPUTER SOFTWARE (4.3%) 115,600 Agile Software Corp. 802,264* 293,888 Siebel Systems, Inc. 2,548,009* 21,100 Symantec Corp. 927,345* 121,100 webMethods, Inc. 1,218,266* ------------ TOTAL COMPUTER SOFTWARE 5,495,884 ------------ ELECTRONICS (15.6%) 94,734 Altera Corp. 1,497,745* 49,800 Cognex Corp. 1,090,122* 61,716 Intersil Corp. 1,141,746* 214,736 Maxim Integrated Products, Inc. 8,436,978 284,734 XILINX, Inc. 7,707,749* ------------ TOTAL ELECTRONICS 19,874,340 ------------ ENTERTAINMENT & LEISURE (0.0%) 200 Regal Entertainment Group 3,920 ------------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 4 [ICON] -------------------------------------------------------------------------------- APRIL 30, 2003
NUMBER OF SHARES VALUE ---------- ------------ HEALTHCARE (2.9%) 40,700 Express Scripts, Inc. $ 2,399,672* 33,000 Genentech, Inc. 1,253,670* ------------ TOTAL HEALTHCARE 3,653,342 ------------ INSURANCE (0.4%) 15,200 Cincinnati Financial Corp. 560,120 ------------ MEDIA--BROADCASTING & PUBLISHING (18.2%) 101,062 Cablevision Systems Corp. 2,265,810*+ 62,981 Clear Channel Communications, Inc. 2,463,187* 106,700 Cox Radio, Inc. 2,433,827* 59,300 Hispanic Broadcasting Corp. 1,521,045* 4,700 Lin TV Corp. 112,377* 300,800 Mediacom Communications Corp. 3,004,992* 169,752 Univision Communications, Inc. 5,140,091*+ 181,868 Westwood One, Inc. 6,347,193* ------------ TOTAL MEDIA--BROADCASTING & PUBLISHING 23,288,522 ------------ RETAIL (17.1%) 118,800 Amazon.com, Inc. 3,405,996*+ 174,050 Bed, Bath & Beyond, Inc. 6,876,716* 125,364 eBay, Inc. 11,630,018* ------------ TOTAL RETAIL 21,912,730 ------------ TELECOMMUNICATIONS (9.8%) 179,221 CIENA Corp. 872,806* 233,192 EchoStar Communications Corp. 6,986,432*+ 248,000 Juniper Networks, Inc. 2,534,560*+ 68,600 Research In Motion, Ltd. 1,072,219* 287,500 Sprint Corp. (PCS Group) 1,006,249* ------------ TOTAL TELECOMMUNICATIONS 12,472,266 ------------ TOTAL COMMON STOCK (COST: $90,995,260) (96.0%) 122,686,554 ------------ NUMBER OF WARRANTS ---------- WARRANTS (COST: $92,576) (0.4%) COMMERCIAL SERVICES (0.4%) 12,556 Expedia, Inc., expires 02/04/09 476,123* ------------ TOTAL EQUITY SECURITIES (COST: $91,087,836) (96.4%) 123,162,677 ------------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 5 TCW GALILEO AGGRESSIVE GROWTH EQUITIES FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
PRINCIPAL AMOUNT SHORT-TERM INVESTMENTS VALUE ---------- ---------------------- ------------ $1,431,591 Bank of Montreal, 1.34%, due 05/01/03 $ 1,431,591** 1,383,872 Bank of Nova Scotia, 1.25%, due 05/07/03 1,383,872** 5,881,455 BlackRock TempCash Fund, 1.24%, due 05/01/03 5,881,455** 1,729,840 BNP Paribas, 1.25%, due 05/07/03 1,729,840** 3,459,679 Canadian Imperial Bank of Commerce, 1.4%, due 11/04/03 3,459,679** 345,968 Comerica Bank, 1.31%, due 11/19/03 345,968** 1,037,904 Den Danske Bank, 1.25%, due 05/07/03 1,037,904** 4,656,501 Investors Bank & Trust Depository Reserve, 1%, due 05/01/03 4,656,501 691,936 Merrill Lynch & Co., Inc., 1.48%, due 11/26/03 691,936** 5,743,067 Merrimac Money Market Fund, 1.23%, due 05/01/03 5,743,067** 3,459,679 Royal Bank of Canada, 1.23%, due 05/01/03 3,459,679** 1,037,904 Toronto Dominion Bank, 1.25%, due 05/07/03 1,037,904** ------------ TOTAL SHORT-TERM INVESTMENTS (COST: $30,859,396) (24.2%) 30,859,396 ------------ TOTAL INVESTMENTS (COST: $121,947,232) (120.6%) 154,022,073 LIABILITIES IN EXCESS OF OTHER ASSETS (-20.6%) (26,288,854) ------------ NET ASSETS (100.0%) $127,733,219 ============
NOTES TO THE SCHEDULE OF INVESTMENTS: * NON-INCOME PRODUCING. ** REPRESENTS INVESTMENTS OF SECURITIES LENDING COLLATERAL (NOTE 3). + SECURITY PARTIALLY OR FULLY LENT (NOTE 3). SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 6 TCW GALILEO CONVERTIBLE SECURITIES FUND [ICON] -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED) APRIL 30, 2003
PRINCIPAL AMOUNT FIXED INCOME SECURITIES VALUE ---------- ----------------------- ------------ BANKING (1.3% OF NET ASSETS) $1,125,000 Bear Stearns Co., Inc., (144A), Exchangeable Fifth Third Bancorp, 0.25%, due 05/12/10 $ 1,116,787* ------------ BANKING & FINANCIAL SERVICES (2.5%) 2,185,000 E*TRADE Group, Inc., 6.75%, due 05/15/08 2,122,181 ------------ BEVERAGES, FOOD & TOBACCO (2.1%) 2,545,000 General Mills, Inc., (144A), 0%, due 10/28/22 1,803,769* ------------ COMMERCIAL SERVICES (4.5%) 2,415,000 Ikon Office Solutions, (144A), 5%, due 05/01/07 2,312,362* 1,470,000 Quest Diagnostics, Inc., 1.75%, due 11/30/21 1,537,987 ------------ TOTAL COMMERCIAL SERVICES 3,850,349 ------------ COMMUNICATIONS (0.9%) 740,000 EchoStar Communications Corp., 5.75%, due 05/15/08 776,075 ------------ COMPUTER SOFTWARE (5.3%) 1,355,000 Affiliated Computer Services, Inc., 3.5%, due 02/15/06 1,702,219 1,790,000 First Data Corp., 2%, due 03/01/08 1,998,087 935,000 Veritas Software Corp., 1.856%, due 08/13/06 832,150 ------------ TOTAL COMPUTER SOFTWARE 4,532,456 ------------ COMPUTERS & INFORMATION (4.4%) 2,020,000 Micron Technology, Inc., (144A), 2.5%, due 02/01/10 2,060,400* 1,675,000 Morgan Stanley Dean Witter & Co., Exchangeable Cisco Systems, Inc., 0.25%, due 05/15/10 1,675,000 ------------ TOTAL COMPUTERS & INFORMATION 3,735,400 ------------ ELECTRONICS (4.8%) 1,640,000 ASM Lithography Holding N.V., (144A), 5.75%, due 10/15/06 1,631,800*+ 1,020,000 GlobeSpan, Inc., 5.25%, due 05/15/06 988,125 465,000 GlobeSpan, Inc., (144A), 5.25%, due 05/15/06 450,469* 855,000 PMC-Sierra, Inc., 3.75%, due 08/15/06 735,300 350,000 PMC-Sierra, Inc., (144A), 3.75%, due 08/15/06 301,000* ------------ TOTAL ELECTRONICS 4,106,694 ------------ ENTERTAINMENT & LEISURE (1.4%) 1,180,000 Morgan Stanley Dean Witter & Co., Exchangeable The Walt Disney Co., 0.25%, due 12/30/08 1,209,500 ------------ HEALTHCARE (2.1%) 3,055,000 Universal Health Services, Inc., 0.426%, due 06/23/20 1,796,340+ ------------ HEAVY MACHINERY (1.0%) 755,000 Briggs & Stratton Corp., 5%, due 05/15/06 847,487 ------------ INDUSTRIAL--DIVERSIFIED (4.2%) 1,245,000 Tyco International Group SA, (144A), 2.75%, due 01/15/18 1,262,119*
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 7 TCW GALILEO CONVERTIBLE SECURITIES FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
PRINCIPAL AMOUNT VALUE ---------- ------------ INDUSTRIAL--DIVERSIFIED (CONTINUED) $2,285,000 Tyco International Group SA, (144A), 3.125%, due 01/15/23 $ 2,335,270* ------------ TOTAL INDUSTRIAL--DIVERSIFIED 3,597,389 ------------ INSURANCE (1.2%) 1,100,000 Swiss RE America Holding, (144A), 3.25%, due 11/21/21 1,023,000* ------------ MEDIA--BROADCASTING & PUBLISHING (2.8%) 1,545,000 Ciena Corp., 3.75%, due 02/01/08 1,226,344 1,875,000 Liberty Media Corp., 3.5%, due 01/15/31 1,209,375 ------------ TOTAL MEDIA--BROADCASTING & PUBLISHING 2,435,719 ------------ MEDICAL SUPPLIES (2.1%) 2,285,000 Alza Corp., Exchangeable Johnson & Johnson, Inc., 0%, due 07/28/20 1,808,349 ------------ PHARMACEUTICALS (5.6%) 1,070,000 Amgen, Inc., 0%, due 03/01/32 830,587 895,000 Axcan Pharma, Inc., (144A), 4.25%, due 04/15/08 1,014,706* 780,000 Charles River Laboratories International, Inc., 3.5%, due 02/01/22 808,275 750,000 Teva Pharmaceutical Industries, Ltd., 0.75%, due 08/15/21 906,563+ 735,000 Teva Pharmaceutical Industries, Ltd., (144A), 0.375%, due 11/15/22 893,760* 270,000 Teva Pharmaceutical Industries, Ltd., (144A), 0.75%, due 08/15/21 326,363* ------------ TOTAL PHARMACEUTICALS 4,780,254 ------------ RETAIL (2.1%) 1,190,000 Costco Companies, Inc., 0%, due 08/19/17 950,513 680,000 Gap, Inc., 5.75%, due 03/15/09 890,800 ------------ TOTAL RETAIL 1,841,313 ------------ TELECOMMUNICATIONS (3.5%) 1,340,000 Juniper Networks, Inc., 4.75%, due 03/15/07 1,212,700 1,595,000 Telefonos de Mexico, S.A. de C.V., 4.25%, due 06/15/04 1,782,413+ ------------ TOTAL TELECOMMUNICATIONS 2,995,113 ------------ TRANSPORTATION (5.1%) 3,375,000 Carnival Corp., 0%, due 10/24/21 2,050,313 2,235,000 United Parcel Service, Inc., 1.75%, due 09/27/07 2,296,463 ------------ TOTAL TRANSPORTATION 4,346,776 ------------ TOTAL FIXED INCOME SECURITIES (COST: $46,609,437) (56.9%) 48,724,951 ------------ NUMBER OF SHARES CONVERTIBLE PREFERRED STOCK ---------- --------------------------- AEROSPACE/DEFENSE (2.0%) 32,350 Raytheon, Inc., Class B, $4.125 1,740,430+ ------------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 8 [ICON] -------------------------------------------------------------------------------- APRIL 30, 2003
NUMBER OF SHARES VALUE ---------- ------------ AUTOMOTIVE (3.4%) 67,400 Ford Motor Co. Capital Trust II, $3.25 $ 2,948,750 ------------ BANKING & FINANCIAL SERVICES (4.5%) 10,700 Household International, Inc., Exchangeable HSBC Holdings PLC, $2.219 345,075 10,200 State Street Corp., $5.50 1,949,730** 27,900 Washington Mutual, Inc., $2.688 1,586,812+ ------------ TOTAL BANKING & FINANCIAL SERVICES 3,881,617 ------------ COMMERCIAL SERVICES (2.5%) 56,400 Cendant Corp., $3.875 2,151,660+ ------------ COMMUNICATIONS (2.7%) 46,000 Titan Capital Trust, $2.875 2,314,260 ------------ COMPUTER SERVICES (4.3%) 29,550 CenterPoint Energy, Inc., Exchangeable AOL Time Warner, Inc., $1.165 819,421 102,190 Goldman Sachs Group, Inc., Exchangeable AOL Time Warner, Inc., $0.916 1,400,003** 18,550 Tribune Co., $2.00 1,442,262 ------------ TOTAL COMPUTER SERVICES 3,661,686 ------------ COMPUTER SOFTWARE (2.2%) 95,900 Electronic Data Systems Corp., $3.813 1,894,025+ ------------ ELECTRIC UTILITIES (2.2%) 70,250 Sempra Energy, $2.125 1,835,281 ------------ HEALTHCARE (1.5%) 12,300 Express Scripts, Inc., $4.83 1,265,362 ------------ INSURANCE (6.3%) 50,450 Chubb Corp., $1.75 1,215,845 21,900 Phoenix Companies, Inc., Exchangeable Hilb, Rogal and Hamilton Co., $2.667 807,563** 16,700 QBE Insurance Group, Ltd., (144A), $4.00 1,077,150*** 17,700 The St. Paul Companies, Inc., $1.125 1,164,837 45,750 Travelers Property Casualty Corp., Class A, $0.281 1,120,875 ------------ TOTAL INSURANCE 5,386,270 ------------ MEDIA--BROADCASTING & PUBLISHING (7.3%) 44,700 Equity Securities Trust, Exchangeable Cablevision Systems Corp. $1.406 1,128,675 36,000 Equity Securities Trust, Exchangeable Cablevision Systems Corp., $2.343 882,000 63,250 Goldman Sachs Group, Inc., Exchangeable Clear Channel Communications, Inc., $3.096 2,381,363** 1,300 Radio One, Inc., $65.00 1,396,200 435 Radio One, Inc., (144A), $65.00 467,190*** ------------ TOTAL MEDIA--BROADCASTING & PUBLISHING 6,255,428 ------------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 9 TCW GALILEO CONVERTIBLE SECURITIES FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NUMBER OF SHARES VALUE ---------- ------------ OIL & GAS (0.9%) 16,300 Unocal Corp. $3.125 $ 796,663 ------------ PAPER & FOREST PRODUCTS (1.0%) 21,050 Boise Cascade Corp., $3.75 836,738 ------------ TELECOMMUNICATIONS (2.2%) 39,700 Alltel Corp., $3.875 1,917,510 ------------ TOTAL CONVERTIBLE PREFERRED STOCK (COST: $33,663,149) (43.0%) 36,885,680 ------------ PRINCIPAL AMOUNT SHORT-TERM INVESTMENTS ---------- ---------------------- $ 740,469 Bank of Montreal, 1.34%, due 05/01/03 740,469*** 715,787 Bank of Nova Scotia, 1.25%, due 05/07/03 715,787*** 3,042,093 BlackRock TempCash Fund, 1.24%, due 05/01/03 3,042,093*** 894,733 BNP Paribas, 1.25%, due 05/07/03 894,733*** 1,789,467 Canadian Imperial Bank of Commerce, 1.4%, due 11/04/03 1,789,467*** 178,947 Comerica Bank, 1.31%, due 11/19/03 178,947*** 536,840 Den Danske Bank, 1.25%, due 05/07/03 536,840*** 1,945,842 Investors Bank & Trust Depository Reserve, 1%, due 05/01/03 1,945,842 357,893 Merrill Lynch & Co., Inc., 1.48%, due 11/26/03 357,893*** 2,970,514 Merrimac Money Market Fund, 1.23%, due 05/01/03 2,970,514*** 1,789,467 Royal Bank of Canada, 1.23%, due 05/01/03 1,789,467*** 536,840 Toronto Dominion Bank, 1.25%, due 05/07/03 536,840*** ------------ TOTAL SHORT-TERM INVESTMENTS (COST: $15,498,892) (18.1%) 15,498,892 ------------ TOTAL INVESTMENTS (COST: $95,771,478) (118.0%) 101,109,523 LIABILITIES IN EXCESS OF OTHER ASSETS (-18.0%) (15,404,825) ------------ NET ASSETS (100.0%) $ 85,704,698 ============
NOTES TO THE SCHEDULE OF INVESTMENTS: * SECURITY EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT OF 1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM REGISTRATION, NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT APRIL 30, 2003, THE VALUE OF THESE SECURITIES AMOUNTED TO $18,076,145 OR 21.1% OF NET ASSETS. ** NON-INCOME PRODUCING. *** REPRESENTS INVESTMENTS OF SECURITIES LENDING COLLATERAL (NOTE 3). + SECURITY PARTIALLY OR FULLY LENT (NOTE 3). SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 10 TCW GALILEO DIVERSIFIED VALUE FUND [ICON] -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED) APRIL 30, 2003
NUMBER OF SHARES COMMON STOCK VALUE --------- ------------ ---------- AEROSPACE/DEFENSE (6.5% OF NET ASSETS) 3,800 Boeing Co. $ 103,664 2,400 Textron, Inc. 70,776 3,150 United Technologies Corp. 194,701 ---------- TOTAL AEROSPACE/DEFENSE 369,141 ---------- AUTOMOTIVE (1.5%) 2,350 General Motors Corp. 84,717 ---------- BANKING & FINANCIAL SERVICES (13.8%) 6,850 American Express Co. 259,341 4,100 Bank One Corp. 147,805 1,620 Federal National Mortgage Association 117,272 5,650 J.P. Morgan Chase & Co., Inc. 165,827 2,250 Merrill Lynch & Company, Inc. 92,362 ---------- TOTAL BANKING & FINANCIAL SERVICES 782,607 ---------- CHEMICALS (2.7%) 2,450 Potash Corp. of Saskatchewan, Inc. 150,797 ---------- COMPUTER SERVICES (7.5%) 4,550 AOL Time Warner, Inc. 62,244* 4,150 Apple Computer, Inc. 58,930* 9,300 Computer Associates International, Inc. 151,032 9,607 Hewlett-Packard Co. 156,594 ---------- TOTAL COMPUTER SERVICES 428,800 ---------- COSMETICS & HOUSEHOLD PRODUCTS (3.1%) 5,750 Gillette Co. 175,088 ---------- ELECTRIC UTILITIES (1.4%) 2,400 Cinergy Corp. 81,936 ---------- ELECTRONICS (4.0%) 8,200 Agilent Technologies, Inc. 131,364* 8,100 Teradyne, Inc. 93,960* ---------- TOTAL ELECTRONICS 225,324 ---------- ENERGY & OIL SERVICES (3.3%) 5,200 Halliburton Co. 111,332 4,100 Transocean, Inc. 78,105 ---------- TOTAL ENERGY & OIL SERVICES 189,437 ---------- ENTERTAINMENT & LEISURE (5.2%) 7,350 Mattel, Inc. 159,789 7,150 The Walt Disney Co. 133,419 ---------- TOTAL ENTERTAINMENT & LEISURE 293,208 ---------- INSURANCE (7.9%) 3,500 Allstate Corp. 132,265
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 11 TCW GALILEO DIVERSIFIED VALUE FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NUMBER OF SHARES VALUE --------- ---------- INSURANCE (CONTINUED) 3,300 American International Group, Inc. $ 191,235 2,400 Chubb Corp. 126,936 ---------- TOTAL INSURANCE 450,436 ---------- MACHINERY (2.0%) 2,550 Deere & Co. 112,277 ---------- MEDIA--BROADCASTING & PUBLISHING (3.5%) 11,600 Readers Digest Association, Inc. 139,200 2,100 Scholastic Corp. 59,661* ---------- TOTAL MEDIA--BROADCASTING & PUBLISHING 198,861 ---------- MEDICAL SUPPLIES (5.5%) 4,900 Bausch & Lomb, Inc. 172,284 4,000 Becton Dickinson & Co. 141,600 ---------- TOTAL MEDICAL SUPPLIES 313,884 ---------- METALS (2.6%) 4,700 Phelps Dodge Corp. 146,593* ---------- OIL & GAS (3.2%) 3,622 ConocoPhillips 182,187 ---------- PAPER & FOREST PRODUCTS (2.6%) 2,950 Kimberly-Clark Corp. 146,822 ---------- PHARMACEUTICALS (3.3%) 4,250 Wyeth 185,003 ---------- RETAIL (6.2%) 4,300 J.C. Penney Co., Inc. 73,358 5,400 Sears Roebuck & Co. 153,036 12,050 Toys 'R' Us, Inc. 123,513* ---------- TOTAL RETAIL 349,907 ---------- TELECOMMUNICATIONS (5.0%) 26,042 AT&T Wireless Services, Inc. 168,231* 14,600 Motorola, Inc. 115,486 ---------- TOTAL TELECOMMUNICATIONS 283,717 ---------- TRANSPORTATION (5.9%) 6,100 CNF, Inc. 185,074 4,700 CSX Corp. 150,306 ---------- TOTAL TRANSPORTATION 335,380 ---------- UTILITIES (1.0%) 2,200 American Electric Power Company, Inc. 58,036 ---------- TOTAL COMMON STOCK (COST: $5,845,066) (97.7%) 5,544,158 ----------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 12 [ICON] -------------------------------------------------------------------------------- APRIL 30, 2003
PRINCIPAL AMOUNT SHORT-TERM INVESTMENTS (COST: $174,561) (3.1%) VALUE --------- ---------------------------------------------- ---------- $174,561 Investors Bank & Trust Depository Reserve, 1%, due 05/01/03 $ 174,561 ---------- TOTAL INVESTMENTS (COST: $6,019,627) (100.8%) 5,718,719 LIABILITIES IN EXCESS OF OTHER ASSETS (-0.8%) (44,870) ---------- NET ASSETS (100.0%) $5,673,849 ==========
NOTES TO THE SCHEDULE OF INVESTMENTS: * NON-INCOME PRODUCING. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 13 TCW GALILEO FOCUSED LARGE CAP VALUE FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
NUMBER OF SHARES COMMON STOCK VALUE --------- ------------ -------- AEROSPACE/DEFENSE (4.4% OF NET ASSETS) 510 General Dynamics Corp. $ 31,656 120 Textron, Inc. 3,539 -------- TOTAL AEROSPACE/DEFENSE 35,195 -------- AUTOMOTIVE (5.0%) 160 ITT Industries, Inc. 9,328 765 Lear Corp. 30,401* -------- TOTAL AUTOMOTIVE 39,729 -------- BANKING & FINANCIAL SERVICES (8.9%) 395 Goldman Sachs Group, Inc. 29,980 525 Morgan Stanley 23,494 345 Wells Fargo & Co. 16,650 -------- TOTAL BANKING & FINANCIAL SERVICES 70,124 -------- BEVERAGES, FOOD & TOBACCO (2.1%) 860 Coca-Cola Enterprises, Inc. 16,761 -------- CHEMICALS (4.3%) 655 Air Products & Chemicals, Inc. 28,211 100 Praxair, Inc. 5,808 -------- TOTAL CHEMICALS 34,019 -------- COMPUTER SERVICES (2.7%) 765 Novellus Systems, Inc. 21,451* -------- COMPUTER SOFTWARE (3.0%) 2,695 Siebel Systems, Inc. 23,366* -------- ELECTRICAL EQUIPMENT (2.3%) 1,265 Applied Materials, Inc. 18,469* -------- ELECTRONICS (8.0%) 1,920 Intel Corp. 35,328 1,495 Texas Instruments, Inc. 27,642 -------- TOTAL ELECTRONICS 62,970 -------- ENERGY & OIL SERVICES (7.5%) 565 Exxon Mobil Corp. 19,888 730 Schlumberger, Ltd. 30,609 482 Transocean, Inc. 9,182 -------- TOTAL ENERGY & OIL SERVICES 59,679 -------- INDUSTRIAL--DIVERSIFIED (5.1%) 110 Danaher Corp. 7,588 2,075 Tyco International, Ltd. 32,370 -------- TOTAL INDUSTRIAL--DIVERSIFIED 39,958 --------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 14 [ICON] -------------------------------------------------------------------------------- APRIL 30, 2003
NUMBER OF SHARES VALUE --------- -------- INSURANCE (6.0%) 495 AFLAC, Inc. $ 16,191 660 Marsh & McLennan Companies, Inc. 31,469 -------- TOTAL INSURANCE 47,660 -------- METALS (2.1%) 735 Alcoa, Inc. 16,854 -------- OIL & GAS (10.1%) 565 ChevronTexaco Corp. 35,488 1,245 Global Santa Fe Corp. 26,344 495 Sunoco, Inc. 18,419 -------- TOTAL OIL & GAS 80,251 -------- RETAIL (10.9%) 345 Costco Wholesale Corp. 11,947* 700 Staples, Inc. 13,328* 2,600 The Gap, Inc. 43,238 1,745 Toys 'R' Us, Inc. 17,886* -------- TOTAL RETAIL 86,399 -------- TELECOMMUNICATIONS (3.8%) 3,785 Motorola, Inc. 29,939 -------- TRANSPORTATION (13.1%) 1,115 Norfolk Southern Corp. 23,649 1,350 Southwest Airlines, Inc. 21,546 985 Union Pacific Corp. 58,628 -------- TOTAL TRANSPORTATION 103,823 -------- TOTAL COMMON STOCK (COST: $834,860) (99.3%) 786,647 -------- PRINCIPAL AMOUNT SHORT-TERM INVESTMENTS (COST: $14,906) (1.9%) --------- --------------------------------------------- $14,906 Investors Bank & Trust Depository Reserve, 1%, due 05/01/03 14,906 -------- TOTAL INVESTMENTS (COST: $849,766) (101.2%) 801,553 LIABILITIES IN EXCESS OF OTHER ASSETS (-1.2%) (9,131) -------- NET ASSETS (100.0%) $792,422 ========
NOTES TO THE SCHEDULE OF INVESTMENTS: * NON-INCOME PRODUCING. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 15 TCW GALILEO GROWTH INSIGHTS FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
NUMBER OF SHARES COMMON STOCK VALUE --------- ------------ ---------- APPAREL RETAILERS (2.2% OF NET ASSETS) 1,250 Chico's FAS, Inc. $ 30,425* ---------- AUTOMOTIVE (3.3%) 1,050 Harley-Davidson, Inc. 46,662 ---------- BANKING & FINANCIAL SERVICES (4.0%) 600 Goldman Sachs Group, Inc. 45,540 1,300 Schwab (Charles) Corp. 11,219 ---------- TOTAL BANKING & FINANCIAL SERVICES 56,759 ---------- BEVERAGES, FOOD & TOBACCO (2.5%) 800 American Italian Pasta Co. 35,280* ---------- BIOLOGICAL PRODUCTS (3.9%) 650 Amgen, Inc. 39,851* 400 MedImmune, Inc. 14,108* ---------- TOTAL BIOLOGICAL PRODUCTS 53,959 ---------- COMMERCIAL SERVICES (4.8%) 1,500 Paychex, Inc. 46,710 950 Resources Connection, Inc. 20,710* ---------- TOTAL COMMERCIAL SERVICES 67,420 ---------- COMMUNICATIONS (0.9%) 600 UTStarcom, Inc. 13,063* ---------- COMPUTER SERVICES (11.0%) 2,050 Cisco Systems, Inc. 30,832* 950 Dell Computer Corp. 27,464* 600 International Business Machines Corp. 50,940 1,200 Network Appliance, Inc. 15,936* 2,350 VeriSign, Inc. 29,187* ---------- TOTAL COMPUTER SERVICES 154,359 ---------- COMPUTER SOFTWARE (9.3%) 450 Adobe Systems, Inc. 15,552 2,750 Microsoft Corp. 70,317 2,550 Siebel Systems, Inc. 22,108* 500 Symantec Corp. 21,975* ---------- TOTAL COMPUTER SOFTWARE 129,952 ---------- ELECTRICAL EQUIPMENT (1.7%) 1,650 Applied Materials, Inc. 24,090* ---------- ELECTRONICS (10.8%) 600 Intel Corp. 11,040 1,150 Intersil Corp. 21,275* 650 Marvell Technology Group, Ltd. 15,001* 800 Maxim Integrated Products, Inc. 31,432 575 Microchip Technology, Inc. 11,954
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 16 [ICON] -------------------------------------------------------------------------------- APRIL 30, 2003
NUMBER OF SHARES VALUE --------- ---------- ELECTRONICS (CONTINUED) 1,900 Semtech Corp. $ 30,210* 1,150 XILINX, Inc. 31,131* ---------- TOTAL ELECTRONICS 152,043 ---------- ENTERTAINMENT & LEISURE (1.4%) 850 Shuffle Master, Inc. 19,465* ---------- HEALTHCARE (3.5%) 1,300 Affymetrix, Inc. 24,115* 650 Genentech, Inc. 24,694* ---------- TOTAL HEALTHCARE 48,809 ---------- INDUSTRIAL--DIVERSIFIED (1.0%) 200 Danaher Corp. 13,796 ---------- INSURANCE (8.3%) 1,600 Cincinnati Financial Corp. 58,960 850 Progressive Corp. 57,800 ---------- TOTAL INSURANCE 116,760 ---------- PHARMACEUTICALS (3.9%) 850 Lilly (Eli) & Co. 54,247 ---------- RETAIL (12.8%) 1,550 Amazon.com, Inc. 44,439* 250 eBay, Inc. 23,193* 700 Kohl's Corp. 39,760* 2,350 Walgreen Co. 72,521 ---------- TOTAL RETAIL 179,913 ---------- RETAILERS (1.9%) 1,900 J. Jill Group, Inc. 27,265* ---------- TELECOMMUNICATIONS (8.1%) 1,550 Juniper Networks, Inc. 15,841* 2,100 Motorola, Inc. 16,611 500 Qualcomm, Inc. 15,945 1,500 Viacom, Inc., Class B 65,115* ---------- TOTAL TELECOMMUNICATIONS 113,512 ---------- TRANSPORTATION (3.2%) 2,850 Southwest Airlines, Inc. 45,486 ---------- TOTAL COMMON STOCK (COST: $1,328,477) (98.5%) 1,383,265 ----------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 17 TCW GALILEO GROWTH INSIGHTS FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
PRINCIPAL AMOUNT SHORT-TERM INVESTMENTS (COST: $63,227) (4.5%) VALUE --------- --------------------------------------------- ---------- $63,227 Investors Bank & Trust Depository Reserve, 1%, due 05/01/03 $ 63,227 ---------- TOTAL INVESTMENTS (COST: $1,391,704) (103.0%) 1,446,492 LIABILITIES IN EXCESS OF OTHER ASSETS (-3.0%) (42,483) ---------- NET ASSETS (100.0%) $1,404,009 ==========
NOTES TO THE SCHEDULE OF INVESTMENTS: * NON-INCOME PRODUCING. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 18 TCW GALILEO INCOME + GROWTH FUND [ICON] -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED) APRIL 30, 2003
NUMBER OF SHARES EQUITY SECURITIES VALUE --------- ----------------- ----------- COMMON STOCK AEROSPACE/DEFENSE (5.0% OF NET ASSETS) 19,200 Boeing Co. $ 523,776 2,600 Northrop Grumman Corp. 228,670 20,600 Textron, Inc. 607,494 ----------- TOTAL AEROSPACE/DEFENSE 1,359,940 ----------- AUTOMOTIVE (1.0%) 7,600 General Motors Corp. 273,980+ ----------- BANKING & FINANCIAL SERVICES (11.3%) 18,100 Citigroup, Inc. 710,425 25,900 Crescent Real Estate Equities Co. 367,262 22,300 FleetBoston Financial Corp. 591,396 32,200 J.P. Morgan Chase & Co., Inc. 945,070 10,900 Merrill Lynch & Company, Inc. 447,445 ----------- TOTAL BANKING & FINANCIAL SERVICES 3,061,598 ----------- BEVERAGES, FOOD & TOBACCO (2.7%) 43,000 Sara Lee Corp. 721,540 ----------- CHEMICALS (9.7%) 24,000 Air Products & Chemicals, Inc. 1,033,680 22,200 Eastman Chemical Co. 677,766 15,000 Potash Corp. of Saskatchewan, Inc. 923,250 ----------- TOTAL CHEMICALS 2,634,696 ----------- COMPUTER SERVICES (2.7%) 45,300 Hewlett-Packard Co. 738,390 ----------- COSMETICS & HOUSEHOLD PRODUCTS (3.3%) 29,800 Gillette Co. 907,410 ----------- ELECTRIC UTILITIES (4.6%) 26,000 Cinergy Corp. 887,640 11,359 SCANA Corp. 360,535+ ----------- TOTAL ELECTRIC UTILITIES 1,248,175 ----------- ENERGY & OIL SERVICES (6.4%) 18,400 Baker Hughes, Inc. 515,200 24,900 Halliburton Co. 533,109 16,500 Schlumberger, Ltd. 691,845 ----------- TOTAL ENERGY & OIL SERVICES 1,740,154 ----------- ENTERTAINMENT & LEISURE (2.3%) 34,100 The Walt Disney Co. 636,306 ----------- FOODS, HOTELS & RESTAURANTS (0.9%) 12,000 Albertson's, Inc. 238,320+ -----------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 19 TCW GALILEO INCOME + GROWTH FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NUMBER OF SHARES VALUE --------- ----------- INSURANCE (18.7%) 11,600 Allstate Corp. $ 438,364 12,500 Aon Corp. 277,000 15,000 Chubb Corp. 793,350 9,000 Hartford Financial Services Group 366,840 26,000 Safeco Corp. 1,001,260 28,000 The St. Paul Companies, Inc. 961,520+ 32,000 Torchmark Corp. 1,240,000 ----------- TOTAL INSURANCE 5,078,334 ----------- MACHINERY (2.1%) 13,200 Deere & Co. 581,196 ----------- MEDICAL SUPPLIES (3.0%) 22,800 Bausch & Lomb, Inc. 801,648 ----------- METALS (1.5%) 42,400 Placer Dome, Inc. 419,336+ ----------- OIL & GAS (3.2%) 17,100 ConocoPhillips 860,130 ----------- PAPER & FOREST PRODUCTS (2.6%) 14,100 Kimberly-Clark Corp. 701,757 ----------- PHARMACEUTICALS (3.0%) 18,700 Wyeth 814,011 ----------- RETAIL (5.3%) 31,700 J.C. Penney Co., Inc. 540,802+ 31,700 Sears Roebuck & Co. 898,378+ ----------- TOTAL RETAIL 1,439,180 ----------- TRANSPORTATION (3.4%) 30,500 CNF, Inc. 925,370 ----------- UTILITIES (3.9%) 40,000 American Electric Power Company, Inc. 1,055,200 ----------- TOTAL COMMON STOCK (COST: $23,440,063) (96.6%) 26,236,671 ----------- CONVERTIBLE PREFERRED STOCK (COST: $567,821) (1.9%) TELECOMMUNICATIONS (1.9%) 11,200 Alltel Corp., $3.875 524,832 ----------- TOTAL EQUITY SECURITIES (COST: $24,007,884) (98.5%) 26,761,503 -----------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 20 [ICON] -------------------------------------------------------------------------------- APRIL 30, 2003
PRINCIPAL AMOUNT SHORT-TERM INVESTMENTS VALUE --------- ---------------------- ----------- $192,380 Bank of Montreal, 1.34%, due 05/01/03 $ 192,380* 185,967 Bank of Nova Scotia, 1.25%, due 05/07/03 185,967* 790,360 BlackRock TempCash Fund, 1.24%, due 05/01/03 790,360* 232,459 BNP Paribas, 1.25%, due 05/07/03 232,459* 464,917 Canadian Imperial Bank of Commerce, 1.4%, due 11/04/03 464,917* 46,492 Comerica Bank, 1.31%, due 11/19/03 46,492* 139,475 Den Danske Bank, 1.25%, due 05/07/03 139,475* 372,291 Investors Bank & Trust Depository Reserve, 1%, due 05/01/03 372,291 92,983 Merrill Lynch & Co., Inc., 1.48%, due 11/26/03 92,983* 771,763 Merrimac Money Market Fund, 1.23%, due 05/01/03 771,763* 464,917 Royal Bank of Canada, 1.23%, due 05/01/03 464,917* 139,475 Toronto Dominion Bank, 1.25%, due 05/07/03 139,475* ----------- TOTAL SHORT-TERM INVESTMENTS (COST: $3,893,479) (14.4%) 3,893,479 ----------- TOTAL INVESTMENTS (COST: $27,901,363) (112.9%) 30,654,982 LIABILITIES IN EXCESS OF OTHER ASSETS (-12.9%) (3,503,555) ----------- NET ASSETS (100.0%) $27,151,427 ===========
NOTES TO THE SCHEDULE OF INVESTMENTS: * REPRESENTS INVESTMENTS OF SECURITIES LENDING COLLATERAL (NOTE 3). + SECURITY PARTIALLY OR FULLY LENT (NOTE 3). SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 21 TCW GALILEO LARGE CAP GROWTH FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
NUMBER OF SHARES COMMON STOCK VALUE --------- ------------ ---------- BANKING & FINANCIAL SERVICES (2.5% OF NET ASSETS) 500 Federal National Mortgage Association $ 36,195 8,000 Schwab (Charles) Corp. 69,040 2,150 T. Rowe Price Group, Inc. 65,618+ ---------- TOTAL BANKING & FINANCIAL SERVICES 170,853 ---------- BEVERAGES, FOOD & TOBACCO (2.7%) 1,950 Anheuser-Busch Companies, Inc. 97,266 2,750 Kellogg Co. 90,035 ---------- TOTAL BEVERAGES, FOOD & TOBACCO 187,301 ---------- BIOLOGICAL PRODUCTS (4.1%) 2,350 Amgen, Inc. 144,078* 900 Gilead Sciences, Inc. 41,526*+ 2,750 MedImmune, Inc. 96,992*+ ---------- TOTAL BIOLOGICAL PRODUCTS 282,596 ---------- COMMERCIAL SERVICES (2.3%) 5,150 Paychex, Inc. 160,371 ---------- COMPUTER SERVICES (8.6%) 20,200 Cisco Systems, Inc. 303,808* 5,000 Dell Computer Corp. 144,550* 400 International Business Machines Corp. 33,960 4,600 Yahoo!, Inc. 113,988* ---------- TOTAL COMPUTER SERVICES 596,306 ---------- COMPUTER SOFTWARE (8.0%) 16,200 Microsoft Corp. 414,234 7,850 Siebel Systems, Inc. 68,059* 3,400 Veritas Software Corp. 74,834* ---------- TOTAL COMPUTER SOFTWARE 557,127 ---------- COSMETICS & HOUSEHOLD PRODUCTS (4.2%) 2,850 Gillette Co. 86,782 2,250 Procter & Gamble Co. 202,162 ---------- TOTAL COSMETICS & HOUSEHOLD PRODUCTS 288,944 ---------- ELECTRICAL EQUIPMENT (6.3%) 5,100 Applied Materials, Inc. 74,460* 12,300 General Electric Co. 362,235 ---------- TOTAL ELECTRICAL EQUIPMENT 436,695 ---------- ELECTRONICS (7.4%) 5,750 Intel Corp. 105,800 6,250 Maxim Integrated Products, Inc. 245,562 6,150 XILINX, Inc. 166,480* ---------- TOTAL ELECTRONICS 517,842 ----------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 22 [ICON] -------------------------------------------------------------------------------- APRIL 30, 2003
NUMBER OF SHARES VALUE --------- ---------- ENTERTAINMENT & LEISURE (1.7%) 10,467 Liberty Media Corp. $ 115,137* ---------- FOODS, HOTELS & RESTAURANTS (1.7%) 2,750 PepsiCo, Inc. 119,020 ---------- HEALTHCARE (7.2%) 1,250 Express Scripts, Inc. 73,700* 1,950 Genentech, Inc. 74,081* 6,300 Johnson & Johnson, Inc. 355,068 ---------- TOTAL HEALTHCARE 502,849 ---------- INSURANCE (3.2%) 2,250 AFLAC, Inc. 73,598 2,550 American International Group, Inc. 147,773 ---------- TOTAL INSURANCE 221,371 ---------- MEDIA--BROADCASTING & PUBLISHING (5.5%) 3,600 Clear Channel Communications, Inc. 140,796* 3,150 Comcast Corp., Special Class A 94,689*+ 4,200 Mediacom Communications Corp. 41,958* 3,500 Univision Communications, Inc. 105,980*+ ---------- TOTAL MEDIA--BROADCASTING & PUBLISHING 383,423 ---------- MEDICAL SUPPLIES (4.7%) 2,750 Boston Scientific Corp. 118,388* 2,950 Medtronic, Inc. 140,833 1,350 St. Jude Medical, Inc. 70,821*+ ---------- TOTAL MEDICAL SUPPLIES 330,042 ---------- PHARMACEUTICALS (12.4%) 1,650 Abbott Laboratories 67,040 3,700 Lilly (Eli) & Co. 236,134 4,400 Merck & Company, Inc. 255,992 9,875 Pfizer, Inc. 303,656 ---------- TOTAL PHARMACEUTICALS 862,822 ---------- RETAIL (10.2%) 3,150 Amazon.com, Inc. 90,311*+ 1,650 eBay, Inc. 153,071* 5,100 The Gap, Inc. 84,813 6,750 Wal-Mart Stores, Inc. 380,160 ---------- TOTAL RETAIL 708,355 ---------- TELECOMMUNICATIONS (5.1%) 2,650 EchoStar Communications Corp. 79,394*+ 3,000 Qualcomm, Inc. 95,670 4,800 Verizon Communications 179,424 ---------- TOTAL TELECOMMUNICATIONS 354,488 ----------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 23 TCW GALILEO LARGE CAP GROWTH FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NUMBER OF SHARES VALUE --------- ---------- TRANSPORTATION (1.4%) 1,550 United Parcel Service, Inc., Class B $ 96,286 ---------- TOTAL COMMON STOCK (COST: $6,210,963) (99.2%) 6,891,828 ---------- PRINCIPAL AMOUNT SHORT-TERM INVESTMENTS --------- ---------------------- $ 17,792 Bank of Montreal, 1.34%, due 05/01/03 17,792** 17,199 Bank of Nova Scotia, 1.25%, due 05/07/03 17,199** 73,095 BlackRock TempCash Fund, 1.24%, due 05/01/03 73,095** 21,498 BNP Paribas, 1.25%, due 05/07/03 21,498** 42,997 Canadian Imperial Bank of Commerce, 1.4%, due 11/04/03 42,997** 4,300 Comerica Bank, 1.31%, due 11/19/03 4,300** 12,899 Den Danske Bank, 1.25%, due 05/07/03 12,899** 218,407 Investors Bank & Trust Depository Reserve, 1%, due 05/01/03 218,407 8,599 Merrill Lynch & Co., Inc., 1.48%, due 11/26/03 8,599** 71,375 Merrimac Money Market Fund, 1.23%, due 05/01/03 71,375** 42,997 Royal Bank of Canada, 1.23%, due 05/01/03 42,997** 12,899 Toronto Dominion Bank, 1.25%, due 05/07/03 12,899** ---------- TOTAL SHORT-TERM INVESTMENTS (COST: $544,057) (7.8%) 544,057 ---------- TOTAL INVESTMENTS (COST: $6,755,020) (107.0%) 7,435,885 LIABILITIES IN EXCESS OF OTHER ASSETS (-7.0%) (483,840) ---------- NET ASSETS (100.0%) $6,952,045 ==========
NOTES TO THE SCHEDULE OF INVESTMENTS: * NON-INCOME PRODUCING. ** REPRESENTS INVESTMENTS OF SECURITIES LENDING COLLATERAL (NOTE 3). + SECURITY PARTIALLY OR FULLY LENT (NOTE 3). SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 24 TCW GALILEO LARGE CAP VALUE FUND [ICON] -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED) APRIL 30, 2003
NUMBER OF SHARES COMMON STOCK VALUE --------- ------------ ----------- AEROSPACE/DEFENSE (3.7% OF NET ASSETS) 44,350 Boeing Co. $ 1,209,868 28,675 General Dynamics Corp. 1,779,857 6,185 Textron, Inc. 182,396 ----------- TOTAL AEROSPACE/DEFENSE 3,172,121 ----------- AUTOMOTIVE (2.6%) 10,200 ITT Industries, Inc. 594,660 41,250 Lear Corp. 1,639,275* ----------- TOTAL AUTOMOTIVE 2,233,935 ----------- BANKING & FINANCIAL SERVICES (13.5%) 20,350 American Express Co. 770,451 11,620 Bank of America Corp. 860,461 26,900 Bank One Corp. 969,745 87,267 Citigroup, Inc. 3,425,230 16,750 Goldman Sachs Group, Inc. 1,271,325 14,200 Merrill Lynch & Company, Inc. 582,910 20,890 Morgan Stanley 934,827 54,400 Wells Fargo & Co. 2,625,344 ----------- TOTAL BANKING & FINANCIAL SERVICES 11,440,293 ----------- BEVERAGES, FOOD & TOBACCO (1.3%) 58,040 Coca-Cola Enterprises, Inc. 1,131,200 ----------- CHEMICALS (6.5%) 39,380 Air Products & Chemicals, Inc. 1,696,097 13,700 Du Pont (E.I.) de Nemours & Co. 582,661 55,210 Praxair, Inc. 3,206,597 ----------- TOTAL CHEMICALS 5,485,355 ----------- COMPUTER SERVICES (3.5%) 62,000 AOL Time Warner, Inc. 848,160* 74,345 Novellus Systems, Inc. 2,084,634*+ ----------- TOTAL COMPUTER SERVICES 2,932,794 ----------- COMPUTER SOFTWARE (1.4%) 136,330 Siebel Systems, Inc. 1,181,981* ----------- ELECTRICAL EQUIPMENT (1.5%) 88,550 Applied Materials, Inc. 1,292,830* ----------- ELECTRONICS (5.0%) 5,100 Emerson Electric Co. 258,570 139,500 Intel Corp. 2,566,800 76,500 Texas Instruments, Inc. 1,414,485 ----------- TOTAL ELECTRONICS 4,239,855 ----------- ENERGY & OIL SERVICES (8.3%) 136,996 Exxon Mobil Corp. 4,822,259
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 25 TCW GALILEO LARGE CAP VALUE FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NUMBER OF SHARES VALUE --------- ----------- ENERGY & OIL SERVICES (CONTINUED) 39,880 Schlumberger, Ltd. $ 1,672,168 27,449 Transocean, Inc. 522,903 ----------- TOTAL ENERGY & OIL SERVICES 7,017,330 ----------- ENTERTAINMENT & LEISURE (2.8%) 105,150 Hasbro, Inc. 1,682,400 36,400 The Walt Disney Co. 679,224 ----------- TOTAL ENTERTAINMENT & LEISURE 2,361,624 ----------- FOODS, HOTELS & RESTAURANTS (1.1%) 53,655 McDonald's Corp. 917,500 ----------- HEAVY MACHINERY (1.7%) 18,750 Caterpillar, Inc. 986,250 13,000 SPX Corp. 439,400* ----------- TOTAL HEAVY MACHINERY 1,425,650 ----------- INDUSTRIAL--DIVERSIFIED (3.4%) 6,280 Danaher Corp. 433,194+ 157,250 Tyco International, Ltd. 2,453,100 ----------- TOTAL INDUSTRIAL--DIVERSIFIED 2,886,294 ----------- INSURANCE (10.9%) 52,880 AFLAC, Inc. 1,729,705 53,800 Allstate Corp. 2,033,102 44,150 American International Group, Inc. 2,558,493 22,350 Cincinnati Financial Corp. 823,597 12,650 Hartford Financial Services Group 515,614 34,000 Marsh & McLennan Companies, Inc. 1,621,120 ----------- TOTAL INSURANCE 9,281,631 ----------- METALS (2.1%) 78,150 Alcoa, Inc. 1,791,979 ----------- OIL & GAS (7.9%) 43,634 ChevronTexaco Corp. 2,740,652 51,585 Global Santa Fe Corp. 1,091,539 34,300 Noble Corp. 1,061,585* 49,580 Sunoco, Inc. 1,844,872 ----------- TOTAL OIL & GAS 6,738,648 ----------- RETAIL (10.4%) 27,300 Best Buy Co., Inc. 944,034* 19,485 Costco Wholesale Corp. 674,766* 46,300 Home Depot, Inc. 1,302,419 118,275 Staples, Inc. 2,251,956* 164,250 The Gap, Inc. 2,731,477 91,955 Toys 'R' Us, Inc. 942,539* ----------- TOTAL RETAIL 8,847,191 -----------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 26 [ICON] -------------------------------------------------------------------------------- APRIL 30, 2003
NUMBER OF SHARES VALUE --------- ----------- TELECOMMUNICATIONS (3.8%) 209,350 Motorola, Inc. $ 1,655,958 35,950 Viacom, Inc., Class B 1,560,590* ----------- TOTAL TELECOMMUNICATIONS 3,216,548 ----------- TRANSPORTATION (8.1%) 70,630 Norfolk Southern Corp. 1,498,062 87,000 Southwest Airlines, Inc. 1,388,520 67,100 Union Pacific Corp. 3,993,792 ----------- TOTAL TRANSPORTATION 6,880,374 ----------- TOTAL COMMON STOCK (COST: $82,856,968) (99.5%) 84,475,133 ----------- PRINCIPAL AMOUNT SHORT-TERM INVESTMENTS --------- ---------------------- $141,716 Bank of Montreal, 1.34%, due 05/01/03 141,716** 136,992 Bank of Nova Scotia, 1.25%, due 05/07/03 136,992** 582,218 BlackRock TempCash Fund, 1.24%, due 05/01/03 582,218** 171,240 BNP Paribas, 1.25%, due 05/07/03 171,241** 342,481 Canadian Imperial Bank of Commerce, 1.4%, due 11/04/03 342,481** 34,248 Comerica Bank, 1.31%, due 11/19/03 34,248** 102,744 Den Danske Bank, 1.25%, due 05/07/03 102,744** 340,066 Investors Bank & Trust Depository Reserve, 1%, due 05/01/03 340,066 68,496 Merrill Lynch & Co., Inc., 1.48%, due 11/26/03 68,496** 568,518 Merrimac Money Market Fund, 1.23%, due 05/01/03 568,519** 342,481 Royal Bank of Canada, 1.23%, due 05/01/03 342,481** 102,744 Toronto Dominion Bank, 1.25%, due 05/07/03 102,744** ----------- TOTAL SHORT-TERM INVESTMENTS (COST: $2,933,946) (3.4%) 2,933,946 ----------- TOTAL INVESTMENTS (COST: $85,790,914) (102.9%) 87,409,079 LIABILITIES IN EXCESS OF OTHER ASSETS (-2.9%) (2,485,677) ----------- NET ASSETS (100.0%) $84,923,402 ===========
NOTES TO THE SCHEDULE OF INVESTMENTS: * NON-INCOME PRODUCING. ** REPRESENTS INVESTMENTS OF SECURITIES LENDING COLLATERAL (NOTE 3). + SECURITY PARTIALLY OR FULLY LENT (NOTE 3). SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 27 TCW GALILEO OPPORTUNITY FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
NUMBER OF SHARES COMMON STOCK VALUE ---------- ------------ ----------- ADVERTISING (2.1% OF NET ASSETS) 63,300 DoubleClick, Inc. $ 544,380* 17,100 Interpublic Group of Companies, Inc. 194,940 ----------- TOTAL ADVERTISING 739,320 ----------- BANKING & FINANCIAL SERVICES (8.1%) 5,100 Amvescap PLC (ADR) 56,661 9,000 Boston Private Financial Holdings, Inc. 169,650 24,200 Crescent Real Estate Equities Co. 343,156 43,700 Equity Inns, Inc. 293,227 9,500 Friedman, Billings, Ramsey Group, Inc. 104,310 5,300 Glacier Bancorp, Inc. 147,870 25,200 Impac Mortgage Holdings, Inc. 335,664 14,400 Local Financial Corp. 216,000* 4,800 Macerich Co. 158,400 111,700 Metris Companies, Inc. 403,237+ 9,100 NetBank, Inc. 90,818 3,900 Northrim BanCorp, Inc. 58,890 10,700 South Financial Group, Inc. 262,150 15,600 Sterling Bancshares, Inc. 185,734 ----------- TOTAL BANKING & FINANCIAL SERVICES 2,825,767 ----------- BEVERAGES, FOOD & TOBACCO (1.5%) 12,300 Tasty Baking Co. 110,085 38,500 Wild Oats Markets, Inc. 416,570* ----------- TOTAL BEVERAGES, FOOD & TOBACCO 526,655 ----------- CHEMICALS (9.8%) 97,900 Agrium, Inc. 1,107,249+ 5,600 Ashland, Inc. 166,040 209,600 Calgon Carbon Corp. 1,068,960 40,300 IMC Global, Inc. 365,118 12,300 Olin Corp. 222,876+ 8,000 Potash Corp. of Saskatchewan, Inc. 492,400 ----------- TOTAL CHEMICALS 3,422,643 ----------- COMMERCIAL SERVICES (1.9%) 3,600 BioReliance Corp. 71,748* 22,200 Ikon Office Solutions, Inc. 172,272 131,600 Wind River Systems, Inc. 435,596* ----------- TOTAL COMMERCIAL SERVICES 679,616 ----------- COMPUTER SERVICES (1.1%) 27,600 Maxtor Corp. 151,800* 77,400 Solectron Corp. 246,906* ----------- TOTAL COMPUTER SERVICES 398,706 ----------- COMPUTER SOFTWARE (4.0%) 33,500 Echelon Corp. 438,850*+
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 28 [ICON] -------------------------------------------------------------------------------- APRIL 30, 2003
NUMBER OF SHARES VALUE ---------- ----------- COMPUTER SOFTWARE (CONTINUED) 29,200 NetIQ Corp. $ 402,376* 10,200 Take-Two Interactive Software, Inc. 229,500*+ 23,900 THQ, Inc. 337,707*+ ----------- TOTAL COMPUTER SOFTWARE 1,408,433 ----------- ELECTRIC UTILITIES (1.9%) 23,700 Avista Corp. 280,371 68,700 Calpine Corp. 368,919*+ ----------- TOTAL ELECTRIC UTILITIES 649,290 ----------- ELECTRICAL EQUIPMENT (0.7%) 46,600 Evans & Sutherland Computer Corp. 250,242* ----------- ELECTRONICS (3.2%) 8,100 Celestica, Inc. 93,636* 10,000 Gentex Corp. 302,000* 10,500 Herley Industries, Inc. 169,691* 21,700 Integrated Defense Technologies, Inc. 309,659* 66,500 Triquint Semiconductor, Inc. 233,415* ----------- TOTAL ELECTRONICS 1,108,401 ----------- ENERGY & OIL SERVICES (6.5%) 91,100 Nuevo Energy Co., Inc. 1,220,740* 35,500 Oceaneering International, Inc. 800,880* 13,800 Varco International, Inc. 242,742* ----------- TOTAL ENERGY & OIL SERVICES 2,264,362 ----------- ENTERTAINMENT & LEISURE (0.6%) 22,400 Dover Downs Gaming & Entertainment, Inc. 222,656 ----------- HEALTHCARE (7.6%) 83,000 Eclipsys Corp. 747,830* 53,200 Human Genome Sciences, Inc. 621,908* 13,500 Manor Care, Inc. 262,575*+ 28,700 Province Healthcare Co. 287,000*+ 5,600 Sierra Health Services, Inc. 92,960*+ 24,800 United Surgical Partners, Inc. 459,544*+ 5,000 Universal Health Services, Inc., Class B 193,350*+ ----------- TOTAL HEALTHCARE 2,665,167 ----------- INDUSTRIAL--DIVERSIFIED (5.2%) 48,000 AGCO Corp. 874,080* 44,100 Lindsay Manufacturing Co. 959,175 ----------- TOTAL INDUSTRIAL--DIVERSIFIED 1,833,255 ----------- INSURANCE (3.3%) 8,200 Arthur J. Gallagher & Co. 204,918 5,300 First American Corp. 140,450 46,000 Phoenix Companies, Inc. 363,400+
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 29 TCW GALILEO OPPORTUNITY FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NUMBER OF SHARES VALUE ---------- ----------- INSURANCE (CONTINUED) 8,300 WellChoice, Inc. $ 176,790* 6,150 WR Berkley Corp. 285,606 ----------- TOTAL INSURANCE 1,171,164 ----------- MACHINERY (1.1%) 25,024 Brooks Automation, Inc. 211,953*+ 14,500 Joy Global, Inc. 179,365* ----------- TOTAL MACHINERY 391,318 ----------- MEDIA--BROADCASTING & PUBLISHING (3.4%) 22,200 4 Kids Entertainment, Inc. 341,880* 7,300 Radio One, Inc., Class D 111,690*+ 40,100 Readers Digest Association, Inc. 481,200 10,400 Spanish Broadcasting System, Inc. 79,768* 18,200 Thomas Nelson, Inc. 168,350* ----------- TOTAL MEDIA--BROADCASTING & PUBLISHING 1,182,888 ----------- MEDICAL SUPPLIES (4.0%) 26,100 American Medical Systems Holdings, Inc. 414,207* 19,200 Closure Medical Corp. 346,560* 21,200 CYTYC Corp. 279,840*+ 12,000 Hologic, Inc. 108,000* 25,300 Protein Design Labs, Inc. 251,229* ----------- TOTAL MEDICAL SUPPLIES 1,399,836 ----------- METALS (9.8%) 50,400 AK Steel Holding Corp. 147,168* 3,550 Alliant Techsystems, Inc. 190,706*+ 20,000 Freeport-McMoran Copper & Gold, Inc., Class B 346,200*+ 6,700 IPSCO, Inc. 55,945 28,900 Lone Star Technologies, Inc. 613,547*+ 26,000 Phelps Dodge Corp. 810,940* 15,500 Shaw Group, Inc. 180,575*+ 54,400 United States Steel Corp. 779,008 54,200 USEC, Inc. 303,520 ----------- TOTAL METALS 3,427,609 ----------- OIL & GAS (1.5%) 13,000 Rowan Companies, Inc. 266,500 35,500 Tesoro Petroleum Corp. 275,835* ----------- TOTAL OIL & GAS 542,335 ----------- PHARMACEUTICALS (1.8%) 12,400 Millennium Pharmaceuticals, Inc. 136,400*+ 27,200 QLT, Inc. 316,608* 14,900 SangStat Medical Corp. 187,740* ----------- TOTAL PHARMACEUTICALS 640,748 -----------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 30 [ICON] -------------------------------------------------------------------------------- APRIL 30, 2003
NUMBER OF SHARES VALUE ---------- ----------- POLLUTION CONTROL (0.5%) 48,000 Fuel-Tech N.V. $ 175,680* ----------- RETAIL (5.1%) 14,900 BJ's Wholesale Club, Inc. 210,388* 2,700 Charlotte Russe Holding, Inc. 25,488* 5,400 Christopher & Banks Corp. 135,864* 26,700 Claire's Stores, Inc. 693,933 31,000 The Sports Authority, Inc. 267,530* 9,700 Too, Inc. 180,032* 17,400 Toys 'R' Us, Inc. 178,350* 24,500 Trans World Entertainment Corp. 88,200* ----------- TOTAL RETAIL 1,779,785 ----------- TELECOMMUNICATIONS (3.7%) 111,812 CIENA Corp. 544,524*+ 92,000 Micromuse, Inc. 601,772* 24,600 Nextel Partners, Inc. 142,926* ----------- TOTAL TELECOMMUNICATIONS 1,289,222 ----------- TRANSPORTATION (4.5%) 30,300 AMR Corp. 136,047*+ 15,900 Continental Airlines, Inc., Class B 145,008*+ 9,200 Delta Air Lines, Inc. 117,668 18,800 Kirby Corp. 491,808* 11,400 Northwest Airlines Corp. 93,822* 12,200 USFreightways Corp. 347,822 19,800 Wabtec Corp. 242,748 ----------- TOTAL TRANSPORTATION 1,574,923 ----------- UTILITIES (1.4%) 20,800 Arch Coal, Inc. 376,064 12,600 Massey Energy Co. 131,418 ----------- TOTAL UTILITIES 507,482 ----------- TOTAL COMMON STOCK (COST: $33,652,255) (94.3%) 33,077,503 ----------- PRINCIPAL AMOUNT SHORT-TERM INVESTMENTS ---------- ---------------------- $ 387,793 Bank of Montreal, 1.34%, due 05/01/03 387,793** 374,867 Bank of Nova Scotia, 1.25%, due 05/07/03 374,867** 1,593,183 BlackRock TempCash Fund, 1.24%, due 05/01/03 1,593,183** 468,583 BNP Paribas, 1.25%, due 05/07/03 468,583** 937,167 Canadian Imperial Bank of Commerce, 1.4%, due 11/04/03 937,167** 93,717 Comerica Bank, 1.31%, due 11/19/03 93,717**
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 31 TCW GALILEO OPPORTUNITY FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
PRINCIPAL AMOUNT VALUE ---------- ----------- $ 281,150 Den Danske Bank, 1.25%, due 05/07/03 $ 281,150** 2,037,637 Investors Bank & Trust Depository Reserve, 1%, due 05/01/03 2,037,637 187,433 Merrill Lynch & Co. Inc., 1.48%, due 11/26/03 187,433** 1,555,697 Merrimac Money Market Fund, 1.23%, due 05/01/03 1,555,697** 937,167 Royal Bank of Canada, 1.23%, due 05/01/03 937,167** 281,150 Toronto Dominion Bank, 1.25%, due 05/07/03 281,150** ----------- TOTAL SHORT-TERM INVESTMENTS (COST: $9,135,544) (26.1%) 9,135,544 ----------- TOTAL INVESTMENTS (COST: $42,787,799) (120.4%) 42,213,047 LIABILITIES IN EXCESS OF OTHER ASSETS (-20.4%) (7,154,141) ----------- NET ASSETS (100.0%) $35,058,906 ===========
NOTES TO THE SCHEDULE OF INVESTMENTS: ADR AMERICAN DEPOSITARY RECEIPT. SHARES OF A FOREIGN BASED CORPORATION HELD IN - U.S. BANKS ENTITLING THE SHAREHOLDER TO ALL DIVIDENDS AND CAPITAL GAINS. * NON-INCOME PRODUCING. ** REPRESENTS INVESTMENTS OF SECURITIES LENDING COLLATERAL (NOTE 3). + SECURITY PARTIALLY OR FULLY LENT (NOTE 3). SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 32 TCW GALILEO SELECT EQUITIES FUND [ICON] -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED) APRIL 30, 2003
NUMBER OF SHARES COMMON STOCK VALUE ----------- ------------ -------------- BANKING & FINANCIAL SERVICES (2.0% OF NET ASSETS) 3,709,305 Schwab (Charles) Corp. $ 32,011,302 -------------- BIOLOGICAL PRODUCTS (8.9%) 1,525,418 Amgen, Inc. 93,523,378* 1,326,518 MedImmune, Inc. 46,786,290* -------------- TOTAL BIOLOGICAL PRODUCTS 140,309,668 -------------- COMMERCIAL SERVICES (2.0%) 980,420 Paychex, Inc. 30,530,279 -------------- COMPUTER SERVICES (15.0%) 2,813,095 Cisco Systems, Inc. 42,308,949* 2,365,525 Dell Computer Corp. 68,387,328* 5,185,550 Network Appliance, Inc. 68,864,104*+ 2,270,135 Yahoo!, Inc. 56,253,945* -------------- TOTAL COMPUTER SERVICES 235,814,326 -------------- COMPUTER SOFTWARE (5.5%) 2,177,269 Microsoft Corp. 55,672,768 3,536,076 Siebel Systems, Inc. 30,657,779* -------------- TOTAL COMPUTER SOFTWARE 86,330,547 -------------- ELECTRICAL EQUIPMENT (5.0%) 3,410,758 Applied Materials, Inc. 49,797,067* 961,475 General Electric Co. 28,315,439 -------------- TOTAL ELECTRICAL EQUIPMENT 78,112,506 -------------- ELECTRONICS (10.4%) 1,936,164 Intel Corp. 35,625,418 2,057,382 Maxim Integrated Products, Inc. 80,834,539 1,747,286 XILINX, Inc. 47,299,032* -------------- TOTAL ELECTRONICS 163,758,989 -------------- HEALTHCARE (4.0%) 1,636,968 Genentech, Inc. 62,188,414*+ -------------- INSURANCE (15.9%) 1,585,266 AFLAC, Inc. 51,854,051 550,653 American International Group, Inc. 31,910,341 2,444,852 Progressive Corp. 166,249,936 -------------- TOTAL INSURANCE 250,014,328 -------------- MEDIA--BROADCASTING & PUBLISHING (3.1%) 832,654 Pixar, Inc. 48,618,667*+ -------------- PHARMACEUTICALS (6.0%) 823,375 Lilly (Eli) & Co. 52,547,792 1,352,361 Pfizer, Inc. 41,585,101 -------------- TOTAL PHARMACEUTICALS 94,132,893 --------------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 33 TCW GALILEO SELECT EQUITIES FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NUMBER OF SHARES VALUE ----------- -------------- RETAIL (13.6%) 2,323,568 Amazon.com, Inc. $ 66,616,694*+ 783,057 eBay, Inc. 72,644,198* 915,473 Walgreen Co. 28,251,497+ 804,387 Wal-Mart Stores, Inc. 45,303,076 -------------- TOTAL RETAIL 212,815,465 -------------- TELECOMMUNICATIONS (1.7%) 829,348 Qualcomm, Inc. 26,447,908 -------------- TRANSPORTATION (2.7%) 2,629,039 Southwest Airlines, Inc. 41,959,462 -------------- TOTAL COMMON STOCK (COST: $1,651,350,128) (95.8%) 1,503,044,754 -------------- PRINCIPAL AMOUNT SHORT-TERM INVESTMENTS ----------- ---------------------- $ 5,946,232 Bank of Montreal, 1.34%, due 05/01/03 5,946,232** 5,748,025 Bank of Nova Scotia, 1.25%, due 05/07/03 5,748,025** 24,429,106 BlackRock TempCash Fund, 1.24%, due 05/01/03 24,429,106** 7,185,031 BNP Paribas, 1.25%, due 05/07/03 7,185,031** 14,370,062 Canadian Imperial Bank of Commerce, 1.4%, due 11/04/03 14,370,062** 1,437,006 Comerica Bank, 1.31%, due 11/19/03 1,437,006** 4,311,019 Den Danske Bank, 1.25%, due 05/07/03 4,311,019** 58,794,893 Investors Bank & Trust Depository Reserve, 1%, due 05/01/03 58,794,893 2,874,013 Merrill Lynch & Co., Inc., 1.48%, due 11/26/03 2,874,013** 23,854,304 Merrimac Money Market Fund, 1.23%, due 05/01/03 23,854,304** 14,370,062 Royal Bank of Canada, 1.23%, due 05/01/03 14,370,062** 4,311,019 Toronto Dominion Bank, 1.25%, due 05/07/03 4,311,019** -------------- TOTAL SHORT-TERM INVESTMENTS (COST: $167,630,772) (10.7%) 167,630,772 -------------- TOTAL INVESTMENTS (COST: $1,818,980,900) (106.5%) 1,670,675,526 LIABILITIES IN EXCESS OF OTHER ASSETS (-6.5%) (101,842,518) -------------- NET ASSETS (100.0%) $1,568,833,008 ==============
NOTES TO THE SCHEDULE OF INVESTMENTS: * NON-INCOME PRODUCING. ** REPRESENTS INVESTMENTS OF SECURITIES LENDING COLLATERAL (NOTE 3). + SECURITY PARTIALLY OR FULLY LENT (NOTE 3). SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 34 TCW GALILEO SMALL CAP GROWTH FUND [ICON] -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED) APRIL 30, 2003
NUMBER OF SHARES COMMON STOCK VALUE ---------- ------------ ------------ ADVERTISING (1.6% OF NET ASSETS) 85,700 TMP Worldwide, Inc. $ 1,437,189* 183,150 Ventiv Health, Inc. 617,216* ------------ TOTAL ADVERTISING 2,054,405 ------------ BANKING & FINANCIAL SERVICES (1.7%) 14,500 Chicago Mercantile Exchange Holdings, Inc. 819,830*+ 52,300 SEI Investments Co. 1,377,059 ------------ TOTAL BANKING & FINANCIAL SERVICES 2,196,889 ------------ BEVERAGES, FOOD & TOBACCO (2.0%) 18,300 American Italian Pasta Co. 807,030*+ 93,200 Peet's Coffee & Tea, Inc. 1,585,332* 16,800 Wild Oats Markets, Inc. 181,776* ------------ TOTAL BEVERAGES, FOOD & TOBACCO 2,574,138 ------------ BIOLOGICAL PRODUCTS (1.1%) 118,600 Impax Laboratories, Inc. 697,368*+ 34,050 InterMune, Inc. 692,237*+ ------------ TOTAL BIOLOGICAL PRODUCTS 1,389,605 ------------ CHEMICALS (0.6%) 34,100 Applied Films Corp. 741,675* ------------ COMMERCIAL SERVICES (14.4%) 55,300 Advisory Board Co. 2,025,086* 40,380 American Healthways, Inc. 996,982*+ 57,900 Celgene Corp. 1,540,719*+ 197,230 Corporate Executive Board Co. 8,084,458*+ 52,800 Gen-Probe, Inc. 1,639,440* 45,920 Information Holdings, Inc. 799,008* 20,400 Myriad Genetics, Inc. 243,168* 40,400 Overture Services, Inc. 432,280*+ 52,580 Resources Connection, Inc. 1,146,244* 19,800 School Specialty, Inc. 367,686* 25,400 Strayer Education, Inc. 1,652,016 ------------ TOTAL COMMERCIAL SERVICES 18,927,087 ------------ COMMUNICATIONS (1.0%) 57,300 UTStarcom, Inc. 1,247,478*+ ------------ COMPUTER SERVICES (7.4%) 15,300 Altiris, Inc. 249,390* 158,500 Ask Jeeves, Inc. 1,304,455*+ 61,700 CheckFree Corp. 1,701,069*+ 65,000 Cognizant Technology Solutions Corp. 1,167,400* 57,200 Mercury Interactive Corp. 1,941,368*+ 42,300 Packeteer, Inc. 553,284* 73,900 VeriSign, Inc. 917,838*
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 35 TCW GALILEO SMALL CAP GROWTH FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NUMBER OF SHARES VALUE ---------- ------------ COMPUTER SERVICES (CONTINUED) 139,500 WebEx Communications, Inc. $ 1,436,850*+ 44,900 WebMD Corp. 432,836* ------------ TOTAL COMPUTER SERVICES 9,704,490 ------------ COMPUTER SOFTWARE (8.9%) 84,300 Agile Software Corp. 585,042* 89,300 Ascential Software Corp. 342,912* 33,800 Business Objects S.A. (ADR) 734,474*+ 79,700 Documentum, Inc. 1,465,683*+ 64,300 NetIQ Corp. 886,054* 189,700 Quest Software, Inc. 2,029,790* 252,407 Retek, Inc. 1,577,544* 147,100 Selectica, Inc. 429,385* 40,800 SERENA Software, Inc. 643,008* 207,300 Siebel Systems, Inc. 1,797,291* 123,000 webMethods, Inc. 1,237,380*+ ------------ TOTAL COMPUTER SOFTWARE 11,728,563 ------------ ELECTRICAL EQUIPMENT (1.0%) 59,000 Varian Semiconductor Equipment Associates, Inc. 1,359,950* ------------ ELECTRONICS (17.7%) 38,100 Actel Corp. 754,761* 46,300 Cymer, Inc. 1,321,865*+ 48,400 Exar Corp. 713,900*+ 52,600 Integrated Circuit Systems, Inc. 1,142,472* 136,640 Intersil Corp. 2,527,840* 117,800 Marvell Technology Group, Ltd. 2,718,706*+ 88,900 Maxim Integrated Products, Inc. 3,492,881 122,700 Micrel, Inc. 1,436,817* 73,200 MKS Instruments, Inc. 1,021,872* 43,200 NVIDIA Corp. 616,464*+ 41,000 Photon Dynamics, Inc. 897,900*+ 221,500 Semtech Corp. 3,521,850* 168,800 Silicon Image, Inc. 1,009,424* 27,900 Silicon Laboratories, Inc. 793,755*+ 114,800 Teradyne, Inc. 1,331,680*+ ------------ TOTAL ELECTRONICS 23,302,187 ------------ ENTERTAINMENT & LEISURE (2.5%) 30,400 Leapfrog Enterprises, Inc. 811,680*+ 108,400 Macrovision Corp. 1,915,428* 59,000 Pinnacle Systems, Inc. 557,550* ------------ TOTAL ENTERTAINMENT & LEISURE 3,284,658 ------------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 36 [ICON] -------------------------------------------------------------------------------- APRIL 30, 2003
NUMBER OF SHARES VALUE ---------- ------------ FOODS, HOTELS & RESTAURANTS (0.6%) 41,900 Landry's Restaurants, Inc. $ 783,530 ------------ HEALTHCARE (2.8%) 64,825 Accredo Health, Inc. 957,465* 26,300 First Health Group Corp. 658,815* 77,650 Sunrise Assisted Living, Inc. 2,096,550*+ ------------ TOTAL HEALTHCARE 3,712,830 ------------ MACHINERY (0.5%) 49,400 Lam Research Corp. 717,535* ------------ MEDIA--BROADCASTING & PUBLISHING (17.0%) 134,700 Cox Radio, Inc. 3,072,507* 34,100 Cumulus Media, Inc. 587,884* 43,500 Entercom Communications Corp. 2,113,665* 74,100 Gray Television, Inc., Class B 818,805 71,800 Hispanic Broadcasting Corp. 1,841,670* 193,300 Mediacom Communications Corp. 1,931,067* 130,500 Radio One, Inc. 2,026,665*+ 254,500 Radio One, Inc., Class D 3,893,850* 233,600 Spanish Broadcasting System, Inc. 1,791,712* 125,200 Westwood One, Inc. 4,369,480* ------------ TOTAL MEDIA--BROADCASTING & PUBLISHING 22,447,305 ------------ MEDICAL SUPPLIES (1.2%) 31,600 CTI Molecular Imaging, Inc. 580,176*+ 76,800 Thoratec Corp. 1,056,000* ------------ TOTAL MEDICAL SUPPLIES 1,636,176 ------------ PHARMACEUTICALS (2.5%) 56,600 AdvancePCS 1,701,396*+ 69,100 American Pharmaceutical Partners, Inc. 1,613,485*+ ------------ TOTAL PHARMACEUTICALS 3,314,881 ------------ RETAIL (10.7%) 73,466 99 Cents Only Stores 2,164,308* 106,150 Cost Plus, Inc. 3,261,990* 44,387 Dollar Tree Stores, Inc. 1,129,649*+ 25,800 Gymboree Corp. 431,118* 44,600 Linens 'N Things, Inc. 945,074* 34,100 Pacific Sunwear of California, Inc. 778,503*+ 175,800 Petsmart, Inc. 2,659,854* 800 Restoration Hardware, Inc. 3,200* 80,200 ShopKo Stores, Inc. 964,806*+ 69,800 Williams-Sonoma, Inc. 1,806,424* ------------ TOTAL RETAIL 14,144,926 ------------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 37 TCW GALILEO SMALL CAP GROWTH FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NUMBER OF SHARES VALUE ---------- ------------ TELECOMMUNICATIONS (3.9%) 82,900 Advanced Fibre Communications, Inc. $ 1,268,370* 56,900 McData Corp. 602,002* 155,200 Polycom, Inc. 1,524,064* 57,400 Research In Motion, Ltd. 897,162* 146,850 Western Wireless Corp. 898,725*+ ------------ TOTAL TELECOMMUNICATIONS 5,190,323 ------------ TOTAL COMMON STOCK (COST: $128,137,244) (99.1%) 130,458,631 ------------ PRINCIPAL AMOUNT SHORT-TERM INVESTMENTS ---------- ---------------------- $1,603,676 Bank of Montreal, 1.34%, due 05/01/03 1,603,677** 1,550,221 Bank of Nova Scotia, 1.25%, due 05/07/03 1,550,221** 6,588,438 BlackRock TempCash Fund, 1.24%, due 05/01/03 6,588,438** 1,937,776 BNP Paribas, 1.25%, due 05/07/03 1,937,776** 3,875,552 Canadian Imperial Bank of Commerce, 1.4%, due 11/04/03 3,875,552** 387,555 Comerica Bank, 1.31%, due 11/19/03 387,555** 1,162,666 Den Danske Bank, 1.25%, due 05/07/03 1,162,666** 1,342,157 Investors Bank & Trust Depository Reserve, 1%, due 05/01/03 1,342,157 775,110 Merrill Lynch & Co., Inc., 1.48%, due 11/26/03 775,110** 6,433,416 Merrimac Money Market Fund, 1.23%, due 05/01/03 6,433,416** 3,875,552 Royal Bank of Canada, 1.23%, due 05/01/03 3,875,552** 1,162,666 Toronto Dominion Bank, 1.25%, due 05/07/03 1,162,666** ------------ TOTAL SHORT-TERM INVESTMENTS (COST: $30,694,786) (23.3%) 30,694,786 ------------ TOTAL INVESTMENTS (COST: $158,832,030) (122.4%) 161,153,417 LIABILITIES IN EXCESS OF OTHER ASSETS (-22.4%) (29,441,975) ------------ NET ASSETS (100.0%) $131,711,442 ============
NOTES TO THE SCHEDULE OF INVESTMENTS: * NON-INCOME PRODUCING. ** REPRESENTS INVESTMENTS OF SECURITIES LENDING COLLATERAL (NOTE 3). + SECURITY PARTIALLY OR FULLY LENT (NOTE 3). SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 38 TCW GALILEO SMALL CAP VALUE FUND [ICON] -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED) APRIL 30, 2003
NUMBER OF SHARES EQUITY SECURITIES VALUE --------- ----------------- ----------- COMMON STOCK AEROSPACE/DEFENSE (1.3% OF NET ASSETS) 41,250 AAR Corp. $ 160,050 11,100 Armor Holdings, Inc. 133,755* ----------- TOTAL AEROSPACE/DEFENSE 293,805 ----------- AUTOMOTIVE (1.5%) 14,100 Copart, Inc. 119,004* 1,750 Group 1 Automotive, Inc. 48,142* 6,900 Monaco Coach Corp. 93,288* 7,500 Wabash National Corp. 70,350* ----------- TOTAL AUTOMOTIVE 330,784 ----------- BANKING & FINANCIAL SERVICES (5.4%) 4,500 BankUnited Financial Corp., Class A 85,005* 10,300 Brookline Bancorp, Inc. 137,711 3,900 Chittenden Corp. 105,495 12,057 First Niagara Financial Group, Inc. 146,493 3,570 Fulton Financial Corp. 71,186 22,950 Silicon Valley Bancshares 536,571* 6,100 Washington Trust Bancorp, Inc. 125,233 ----------- TOTAL BANKING & FINANCIAL SERVICES 1,207,694 ----------- BEVERAGES, FOOD & TOBACCO (0.7%) 8,600 Hain Celestial Group, Inc. 148,436* ----------- BUILDING MATERIALS (0.2%) 1,900 ElkCorp. 38,475 ----------- CHEMICALS (5.9%) 10,600 Agrium, Inc. 119,886 6,550 Cabot Corp. 182,548 12,000 Cambrex Corp. 208,800 1,550 Ferro Corp. 36,642 23,450 MacDermid, Inc. 533,018 7,450 Olin Corp. 134,994 3,700 Quaker Chemical Corp. 82,695 ----------- TOTAL CHEMICALS 1,298,583 ----------- COMMERCIAL SERVICES (5.7%) 11,700 AMN Healthcare Services, Inc. 106,470* 18,250 Bowne & Co., Inc. 205,860 800 Consolidated Graphics, Inc. 15,280* 6,900 G & K Services, Inc. 188,577 6,300 Ionics, Inc. 119,700* 11,100 Moore Corp., Ltd. 126,762* 11,600 Pegasus Solutions, Inc. 138,040* 27,200 PRG-Schultz International, Inc. 173,536*
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 39 TCW GALILEO SMALL CAP VALUE FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NUMBER OF SHARES VALUE --------- ----------- COMMERCIAL SERVICES (CONTINUED) 11,800 Sotheby's Holdings, Inc. $ 103,722* 5,950 Volt Information Sciences, Inc. 78,718* ----------- TOTAL COMMERCIAL SERVICES 1,256,665 ----------- COMMUNICATIONS (4.1%) 19,800 Arris Group, Inc. 77,240* 30,000 Cable Design Technologies Corp. 207,300* 18,450 Harmonic, Inc. 64,021* 15,650 Newport Corp. 202,214* 25,650 REMEC, Inc. 126,967* 22,700 Symmetricom, Inc. 93,524* 12,400 TEKELEC 133,424* ----------- TOTAL COMMUNICATIONS 904,690 ----------- COMPUTER SERVICES (5.2%) 48,050 Cirrus Logic, Inc. 130,696* 2,450 Cray, Inc. 18,497* 7,850 Electro Rent Corp. 78,343* 15,750 FileNET Corp. 242,392* 19,800 InFocus Corp. 88,902* 30,500 Maxtor Corp. 167,750* 5,900 Paxar Corp. 60,947* 4,150 PC-Tel, Inc. 38,097* 15,750 Symbol Technologies, Inc. 172,147 21,350 Systems & Computer Technology Corp. 153,079* ----------- TOTAL COMPUTER SERVICES 1,150,850 ----------- COMPUTER SOFTWARE (7.2%) 17,000 Activision, Inc. 260,100* 21,950 Aspen Technologies, Inc. 73,313* 18,100 Computer Task Group, Inc. 40,182* 21,650 E.piphany, Inc. 96,342* 10,500 Gartner, Inc. 83,370* 31,700 Gerber Scientific, Inc. 261,525* 63,750 Interwoven, Inc. 120,487* 2,700 Midway Games, Inc. 8,505* 16,250 Networks Associates, Inc. 185,738* 24,150 Phoenix Technologies, Ltd. 109,400* 39,220 Technology Solutions Co. 45,495* 21,300 THQ, Inc. 300,969* ----------- TOTAL COMPUTER SOFTWARE 1,585,426 ----------- COSMETICS & HOUSEHOLD PRODUCTS (0.1%) 1,800 Oneida, Ltd. 19,854 ----------- ELECTRIC UTILITIES (1.6%) 21,400 Veeco Instruments, Inc. 344,326* ----------- ELECTRICAL EQUIPMENT (3.0%) 15,350 Electro Scientific Industries, Inc. 206,151*
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 40 [ICON] -------------------------------------------------------------------------------- APRIL 30, 2003
NUMBER OF SHARES VALUE --------- ----------- ELECTRICAL EQUIPMENT (CONTINUED) 2,830 Evans & Sutherland Computer Corp. $ 15,197* 11,200 Merix Corp. 49,392* 4,300 Regal-Beloit Corp. 73,745 13,600 Varian Semiconductor Equipment Associates, Inc. 313,480* ----------- TOTAL ELECTRICAL EQUIPMENT 657,965 ----------- ELECTRONICS (16.0%) 24,400 Adaptec, Inc. 166,896* 72,300 Agere Systems, Inc. 129,417* 2,600 ATMI, Inc. 54,857* 1,200 Barnes Group, Inc. 25,248 4,850 CommScope, Inc. 41,565* 38,100 CTS Corp. 318,135 9,150 Exar Corp. 134,963* 30,400 FSI International, Inc. 71,744* 400 Hutchinson Technology, Inc. 9,456* 13,700 International Rectifier Corp. 309,894* 9,300 Keithley Instruments, Inc. 113,460 55,850 KEMET Corp. 512,145* 8,250 Maxwell Technologies, Inc. 48,675* 38,000 MKS Instruments, Inc. 530,480* 12,100 Pemstar, Inc. 36,179* 7,700 Photon Dynamics, Inc. 168,630* 5,100 Technitrol, Inc. 80,529* 2,000 Tektronix, Inc. 37,540* 47,406 Vishay Intertechnology, Inc. 592,575* 26,205 Xicor, Inc. 155,920* ----------- TOTAL ELECTRONICS 3,538,308 ----------- ENERGY & OIL SERVICES (2.3%) 5,450 Nuevo Energy Co., Inc. 73,030* 8,400 Pride International, Inc. 130,368* 6,900 Rowan Companies, Inc. 141,450 9,350 Varco International, Inc. 164,467* ----------- TOTAL ENERGY & OIL SERVICES 509,315 ----------- FOODS, HOTELS & RESTAURANTS (0.4%) 1 Angelo & Maxie's, Inc. 2 4,900 Champps Entertainment, Inc. 25,627* 10,300 Prime Hospitality Corp. 68,598* ----------- TOTAL FOODS, HOTELS & RESTAURANTS 94,227 ----------- HEALTHCARE (2.5%) 10,400 Accredo Health, Inc. 153,608* 19,100 Cross Country, Inc. 216,403* 11,100 RehabCare Group, Inc. 194,028* ----------- TOTAL HEALTHCARE 564,039 -----------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 41 TCW GALILEO SMALL CAP VALUE FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NUMBER OF SHARES VALUE --------- ----------- HEAVY MACHINERY (1.7%) 3,100 IDEX Corp. $ 98,735 2,500 Insituform Technologies, Inc., Class A 39,875* 5,300 Kaydon Corp. 118,190 9,000 Ultratech Stepper, Inc. 127,530* ----------- TOTAL HEAVY MACHINERY 384,330 ----------- HOME CONSTRUCTION, FURNISHINGS & APPLIANCES (1.1%) 14,300 Herman Miller, Inc. 250,107 ----------- INDUSTRIAL--DIVERSIFIED (0.3%) 7,800 Lydall, Inc. 74,100* ----------- INSURANCE (1.1%) 8,300 RLI Corp. 245,265 ----------- MACHINERY (7.4%) 9,800 Albany International Corp. 232,652 2,900 Astec Industries, Inc. 23,722* 31,350 Axcelis Technologies, Inc. 178,068* 27,150 Brooks Automation, Inc. 229,961* 3,600 FMC Technologies, Inc. 67,752* 8,650 Gardner Denver, Inc. 171,530* 7,200 Kaman Corp. 72,072 56,650 Kulicke & Soffa Industries, Inc. 294,014* 19,700 Lam Research Corp. 286,241* 3,250 York International Corp. 77,675 ----------- TOTAL MACHINERY 1,633,687 ----------- MEDIA--BROADCASTING & PUBLISHING (1.6%) 5,600 Journal Register Co. 99,176* 6,200 Scholastic Corp. 176,142* 800 Thomas Nelson, Inc. 7,400* 2,900 Wiley (John) & Sons, Inc. 71,079 ----------- TOTAL MEDIA--BROADCASTING & PUBLISHING 353,797 ----------- MEDICAL SUPPLIES (6.3%) 25,700 Credence Systems Corp. 182,470* 9,800 Excel Technology, Inc. 224,616* 12,160 LeCroy Corp. 123,302* 19,500 LTX Corp. 131,625* 37,600 PerkinElmer, Inc. 372,992 24,200 PSS World Medical, Inc. 145,442* 6,950 Varian, Inc. 219,690* ----------- TOTAL MEDICAL SUPPLIES 1,400,137 ----------- METALS (1.6%) 9,200 Belden, Inc. 109,388 3,100 Lone Star Technologies, Inc. 65,813*
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 42 [ICON] -------------------------------------------------------------------------------- APRIL 30, 2003
NUMBER OF SHARES VALUE --------- ----------- METALS (CONTINUED) 5,400 Maverick Tube Corp. $ 96,066* 6,400 Penn Engineering & Manufacturing Corp. 85,568 ----------- TOTAL METALS 356,835 ----------- OIL & GAS (0.5%) 11,700 Core Laboratories N.V. 117,000* ----------- PAPER & FOREST PRODUCTS (1.3%) 4,400 Interpool, Inc. 67,056 8,000 United Stationers, Inc. 216,880* ----------- TOTAL PAPER & FOREST PRODUCTS 283,936 ----------- RETAIL (9.3%) 14,150 American Eagle Outfitters, Inc. 247,625* 11,400 Ann Taylor Stores, Inc. 269,724* 10,200 Bell Microproducts, Inc. 46,716* 2,800 BJ's Wholesale Club, Inc. 39,536* 4,100 Brookstone, Inc. 67,650* 24,000 Charming Shoppes, Inc. 112,800* 10,800 Children's Place Retail Stores, Inc. 164,160* 23,750 Factory 2-U Stores, Inc. 118,513* 14,100 Foot Locker, Inc. 155,100 12,550 InterTAN, Inc. 75,802* 4,100 Neiman Marcus Group, Inc. 131,405* 7,000 Talbots, Inc. 200,550 12,900 The Wet Seal, Inc. 131,580* 7,400 ValueVision Media, Inc. 93,906* 5,950 Zale Corp. 207,893* ----------- TOTAL RETAIL 2,062,960 ----------- RETAILERS (0.6%) 9,000 J. Jill Group, Inc. 129,150* ----------- TELECOMMUNICATIONS (1.5%) 3,000 Comtech Telecommunications Corp. 43,530* 8,550 Plantronics, Inc. 158,175* 32,450 Powerwave Technologies, Inc. 130,449* ----------- TOTAL TELECOMMUNICATIONS 332,154 ----------- TRANSPORTATION (0.6%) 5,450 Florida East Coast Industries, Inc. 140,883 ----------- TOTAL COMMON STOCK (COST: $23,144,189) (98.0%) 21,707,783 ----------- CONVERTIBLE PREFERRED STOCK (COST: $303) (0.0%) FOODS, HOTELS & RESTAURANTS (0.0%) 141 Angelo & Maxie's, Inc., $0.225 331 ----------- TOTAL EQUITY SECURITIES (COST: $23,144,492) (98.0%) 21,708,114 -----------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 43 TCW GALILEO SMALL CAP VALUE FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
PRINCIPAL AMOUNT SHORT-TERM INVESTMENTS (COST: $133,197) (0.6%) VALUE --------- ---------------------------------------------- ----------- $133,197 Investors Bank & Trust Depository Reserve, 1%, due 05/01/03 $ 133,197 ----------- TOTAL INVESTMENTS (COST: $23,277,689) (98.6%) 21,841,311 EXCESS OF OTHER ASSETS OVER LIABILITIES (1.4%) 311,648 ----------- NET ASSETS (100.0%) $22,152,959 ===========
NOTES TO THE SCHEDULE OF INVESTMENTS: * NON-INCOME PRODUCING. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 44 TCW GALILEO TECHNOLOGY FUND [ICON] -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED) APRIL 30, 2003
NUMBER OF SHARES EQUITY SECURITIES VALUE --------- ----------------- --------- COMMON STOCK ADVERTISING (1.5% OF NET ASSETS) 1,440 DoubleClick, Inc. $ 12,384* -------- COMMERCIAL SERVICES (2.8%) 390 Expedia, Inc. 22,538* -------- COMMUNICATIONS (0.5%) 185 UTStarcom, Inc. 4,028* -------- COMPUTER SERVICES (17.2%) 605 BEA Systems, Inc. 6,480* 525 CheckFree Corp. 14,474* 2,245 Cisco Systems, Inc. 33,765* 240 Dell Computer Corp. 6,938* 79 Fair Isaac Corp. 4,114 560 Network Appliance, Inc. 7,437* 445 Novellus Systems, Inc. 12,478* 890 WebEx Communications, Inc. 9,167* 1,785 Yahoo!, Inc. 44,232* -------- TOTAL COMPUTER SERVICES 139,085 -------- COMPUTER SOFTWARE (12.8%) 555 Adobe Systems, Inc. 19,181 435 Agile Software Corp. 3,019* 1,190 Microsoft Corp. 30,428 135 NetIQ Corp. 1,860* 775 Quest Software, Inc. 8,292* 1,230 Retek, Inc. 7,687* 655 Siebel Systems, Inc. 5,679* 215 Symantec Corp. 9,449* 845 Veritas Software Corp. 18,598* -------- TOTAL COMPUTER SOFTWARE 104,193 -------- ELECTRICAL EQUIPMENT (2.9%) 1,295 Applied Materials, Inc. 18,907* 210 Varian Semiconductor Equipment Associates, Inc. 4,840* -------- TOTAL ELECTRICAL EQUIPMENT 23,747 -------- ELECTRONICS (25.5%) 535 Altera Corp. 8,458* 905 Broadcom Corp. 16,190* 340 Cognex Corp. 7,443* 245 Exar Corp. 3,614* 925 Intel Corp. 17,020 1,323 Intersil Corp. 24,476* 665 Marvell Technology Group, Ltd. 15,348* 1,330 Maxim Integrated Products, Inc. 52,256 600 Micrel, Inc. 7,026* 940 Semtech Corp. 14,946*
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 45 TCW GALILEO TECHNOLOGY FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NUMBER OF SHARES VALUE --------- --------- ELECTRONICS (CONTINUED) 1,980 Silicon Image, Inc. $ 11,840* 1,025 XILINX, Inc. 27,747* -------- TOTAL ELECTRONICS 206,364 -------- ENTERTAINMENT & LEISURE (1.0%) 460 Macrovision Corp. 8,128* -------- MEDIA--BROADCASTING & PUBLISHING (12.0%) 1,061 Cablevision Systems Corp. 23,788* 765 Cox Radio, Inc. 17,450* 430 Mediacom Communications Corp. 4,296* 1,175 Univision Communications, Inc. 35,579* 460 Westwood One, Inc. 16,054* -------- TOTAL MEDIA--BROADCASTING & PUBLISHING 97,167 -------- RETAIL (9.6%) 525 Amazon.com, Inc. 15,052* 680 eBay, Inc. 63,084* -------- TOTAL RETAIL 78,136 -------- TELECOMMUNICATIONS (14.0%) 435 Advanced Fibre Communications, Inc. 6,656* 1,290 CIENA Corp. 6,282* 1,295 EchoStar Communications Corp. 38,798* 650 Juniper Networks, Inc. 6,643* 855 Polycom, Inc. 8,396* 1,245 Qualcomm, Inc. 39,703 1,975 Sprint Corp. (PCS Group) 6,913* -------- TOTAL TELECOMMUNICATIONS 113,391 -------- TOTAL COMMON STOCK (COST: $717,695) (99.8%) 809,161 -------- NUMBER OF WARRANTS --------- WARRANTS (COST: $452) (0.2%) COMMERCIAL SERVICES (0.2%) 52 Expedia, Inc., expires 02/04/09 1,972* -------- TOTAL EQUITY SECURITIES (COST: $718,147) (100.0%) 811,133 -------- PRINCIPAL AMOUNT --------- SHORT-TERM INVESTMENTS (COST: $7,891) (1.0%) $7,891 Investors Bank & Trust Depository Reserve, 1%, due 05/01/03 7,891 -------- TOTAL INVESTMENTS (COST: $726,038) (101.0%) 819,024 LIABILITIES IN EXCESS OF OTHER ASSETS (-1.0%) (8,451) -------- NET ASSETS (100.0%) $810,573 ========
NOTES TO THE SCHEDULE OF INVESTMENTS: * NON-INCOME PRODUCING. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 46 TCW GALILEO VALUE OPPORTUNITIES FUND [ICON] -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED) APRIL 30, 2003
NUMBER OF SHARES COMMON STOCK VALUE ----------- ------------ ------------ ADVERTISING (1.8% OF NET ASSETS) 599,079 Interpublic Group of Companies, Inc. $ 6,829,501 ------------ BANKING & FINANCIAL SERVICES (12.7%) 344,300 Banknorth Group, Inc. 8,221,884 145,000 Countrywide Financial Corp. 9,802,000 353,900 Mellon Financial Corp. 9,360,655 118,100 North Fork Bancorporation, Inc. 3,821,716+ 186,850 Silicon Valley Bancshares 4,368,553* 135,830 Valley National Bancorp 3,594,064 170,300 Zions Bancorp. 8,390,681 ------------ TOTAL BANKING & FINANCIAL SERVICES 47,559,553 ------------ BEVERAGES, FOOD & TOBACCO (2.9%) 622,179 Hain Celestial Group, Inc. 10,738,810* ------------ BUILDING MATERIALS (5.0%) 576,300 Apogent Technologies, Inc. 9,900,834* 173,100 EMCOR Group, Inc. 8,840,217*+ ------------ TOTAL BUILDING MATERIALS 18,741,051 ------------ COMMERCIAL SERVICES (2.2%) 285,800 Reynolds & Reynolds Co., Class A 8,233,898 ------------ COMPUTER SERVICES (5.1%) 418,500 Macromedia, Inc. 5,277,285* 836,900 Maxtor Corp. 4,602,950* 491,300 Symbol Technologies, Inc. 5,369,909 385,000 Unisys Corp. 4,004,000* ------------ TOTAL COMPUTER SERVICES 19,254,144 ------------ COMPUTER SOFTWARE (3.6%) 1,104,282 Aspen Technologies, Inc. 3,688,302*+ 170,700 Cerner Corp. 3,410,586*+ 549,150 Networks Associates, Inc. 6,276,784*+ ------------ TOTAL COMPUTER SOFTWARE 13,375,672 ------------ CONSTRUCTION (1.8%) 299,400 Toll Brothers, Inc. 6,961,050* ------------ COSMETICS & HOUSEHOLD PRODUCTS (2.4%) 147,700 Estee Lauder Companies, Inc. 4,800,250 124,200 Rohm and Haas Co. 4,112,262 ------------ TOTAL COSMETICS & HOUSEHOLD PRODUCTS 8,912,512 ------------ ELECTRONICS (22.6%) 3,257,657 Agere Systems, Inc. 5,831,206* 1,587,998 Agere Systems, Inc., Class B 2,715,477* 255,600 Anixter International, Inc. 5,873,688* 332,780 Arrow Electronics, Inc. 5,617,326* 194,900 Celestica, Inc. 2,253,044* 113,400 KLA-Tencor Corp. 4,649,400*+
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 47 TCW GALILEO VALUE OPPORTUNITIES FUND -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NUMBER OF SHARES VALUE ----------- ------------ ELECTRONICS (CONTINUED) 1,163,700 LSI Logic Corp. $ 6,237,432* 633,275 National Semiconductor Corp. 11,861,241*+ 442,100 Tektronix, Inc. 8,298,217* 434,900 Teledyne Technologies, Inc. 6,123,392* 981,600 Teradyne, Inc. 11,386,560*+ 694,800 Vishay Intertechnology, Inc. 8,685,000* 227,500 Waters Corp. 5,462,275* ------------ TOTAL ELECTRONICS 84,994,258 ------------ ENERGY & OIL SERVICES (1.9%) 73,500 Devon Energy Corp. 3,472,875 235,301 Pride International, Inc. 3,651,871*+ ------------ TOTAL ENERGY & OIL SERVICES 7,124,746 ------------ ENTERTAINMENT & LEISURE (2.1%) 693,320 Metro-Goldwyn-Mayer, Inc. 7,730,518* ------------ FOODS, HOTELS & RESTAURANTS (2.3%) 316,500 Starwood Hotels & Resorts Worldwide, Inc. 8,494,860 ------------ INSURANCE (2.8%) 261,700 Health Net, Inc. 6,827,753* 467,400 Phoenix Companies, Inc. 3,692,460+ ------------ TOTAL INSURANCE 10,520,213 ------------ MACHINERY (7.2%) 67,400 Cooper Cameron Corp. 3,225,764*+ 114,900 Cummins, Inc. 3,114,939+ 250,100 Dover Corp. 7,187,874 341,650 Pall Corp. 7,215,648 263,900 York International Corp. 6,307,210 ------------ TOTAL MACHINERY 27,051,435 ------------ MEDIA--BROADCASTING & PUBLISHING (1.7%) 88,300 Belo Corp. 1,987,633 105,440 Meredith Corp. 4,557,117 ------------ TOTAL MEDIA--BROADCASTING & PUBLISHING 6,544,750 ------------ MEDICAL SUPPLIES (4.4%) 196,200 Beckman Coulter, Inc. 7,626,294 620,300 PerkinElmer, Inc. 6,153,376 467,425 PSS World Medical, Inc. 2,809,224* ------------ TOTAL MEDICAL SUPPLIES 16,588,894 ------------ METALS (2.7%) 98,150 Alliant Techsystems, Inc. 5,272,618*+ 161,600 Phelps Dodge Corp. 5,040,304* ------------ TOTAL METALS 10,312,922 ------------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 48 [ICON] -------------------------------------------------------------------------------- APRIL 30, 2003
NUMBER OF SHARES VALUE ----------- ------------ OIL & GAS (0.8%) 123,100 Ensco International, Inc. $ 3,126,740 ------------ RETAIL (5.7%) 473,300 American Eagle Outfitters, Inc. 8,282,750* 336,300 J.C. Penney Co., Inc. 5,737,278+ 263,700 Talbots, Inc. 7,555,005+ ------------ TOTAL RETAIL 21,575,033 ------------ TRANSPORTATION (4.0%) 250,900 Carnival Corp. 6,922,331+ 497,300 Southwest Airlines, Inc. 7,936,908 ------------ TOTAL TRANSPORTATION 14,859,239 ------------ TOTAL COMMON STOCK (COST: $397,198,812) (95.7%) 359,529,799 ------------ PRINCIPAL AMOUNT SHORT-TERM INVESTMENTS ----------- ---------------------- $ 2,572,508 Bank of Montreal, 1.34%, due 05/01/03 2,572,508** 2,486,758 Bank of Nova Scotia, 1.25%, due 05/07/03 2,486,758** 10,568,720 BlackRock TempCash Fund, 1.24%, due 05/01/03 10,568,720** 3,108,447 BNP Paribas, 1.25%, due 05/07/03 3,108,447** 6,216,894 Canadian Imperial Bank of Commerce, 1.4%, due 11/04/03 6,216,894** 621,690 Comerica Bank, 1.31%, due 11/19/03 621,690** 1,865,068 Den Danske Bank, 1.25%, due 05/07/03 1,865,068** 18,864,955 Investors Bank & Trust Depository Reserve, 1%, due 05/01/03 18,864,955 1,243,379 Merrill Lynch & Co., Inc., 1.48%, due 11/26/03 1,243,379** 10,320,044 Merrimac Money Market Fund, 1.23%, due 05/01/03 10,320,044** 6,216,894 Royal Bank of Canada, 1.23%, due 05/01/03 6,216,894** 1,865,068 Toronto Dominion Bank, 1.25%, due 05/07/03 1,865,068** ------------ TOTAL SHORT-TERM INVESTMENTS (COST: $65,950,425) (17.6%) 65,950,425 ------------ TOTAL INVESTMENTS (COST: $463,149,237) (113.3%) 425,480,224 LIABILITIES IN EXCESS OF OTHER ASSETS (-13.3%) (49,781,966) ------------ NET ASSETS (100.0%) $375,698,258 ============
NOTES TO THE SCHEDULE OF INVESTMENTS: * NON-INCOME PRODUCING. ** REPRESENTS INVESTMENTS OF SECURITIES LENDING COLLATERAL (NOTE 3). + SECURITY PARTIALLY OR FULLY LENT (NOTE 3). SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 49 TCW GALILEO FUNDS, INC. -------------------------------------------------------------------------------- U.S. EQUITIES STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) APRIL 30, 2003
TCW GALILEO AGGRESSIVE TCW GALILEO TCW GALILEO GROWTH CONVERTIBLE DIVERSIFIED EQUITIES SECURITIES VALUE FUND FUND FUND ----------- ----------- ----------- DOLLAR AMOUNTS IN THOUSANDS (EXCEPT PER SHARE AMOUNTS) ASSETS Investments, at Value (1) $ 154,022 $ 101,110 $ 5,719 Receivable for Securities Sold -- 580 -- Receivables for Fund Shares Sold 93 50 -- Interest and Dividends Receivable 17 739 9 ---------- ----------- -------- Total Assets 154,132 102,479 5,728 ---------- ----------- -------- LIABILITIES Payables for Securities Purchased -- 3,140 29 Payables for Fund Shares Redeemed 47 -- 1 Payables Upon Return of Securities Loaned 26,203 13,553 -- Accrued Management Fees 92 51 -- Other Accrued Expenses 57 30 24 ---------- ----------- -------- Total Liabilities 26,399 16,774 54 ---------- ----------- -------- NET ASSETS $ 127,733 $ 85,705 $ 5,674 ========== =========== ======== NET ASSETS CONSIST OF: Paid-in Capital $ 201,049 $ 103,684 $ 6,665 Undistributed Net Realized (Loss) on Investments (96,289) (23,350) (691) Unrealized Appreciation (Depreciation) on Investments 32,075 5,339 (301) Undistributed Net Investment Income (Loss) (9,102) 32 1 ---------- ----------- -------- NET ASSETS $ 127,733 $ 85,705 $ 5,674 ========== =========== ======== NET ASSETS ATTRIBUTABLE TO: I Class Shares $ 81,546 $ 85,705 $ -- ========== =========== ======== N Class Shares $ 46,187 $ -- $ 5,674 ========== =========== ======== K Class Shares $ --(2) $ -- $ -- ========== =========== ======== CAPITAL SHARES OUTSTANDING: I Class 8,625,086 11,167,732 -- ========== =========== ======== N Class 4,960,632 -- 676,257 ========== =========== ======== K Class 13 -- -- ========== =========== ======== NET ASSET VALUE PER SHARE: I Class $ 9.45 $ 7.67 $ -- ========== =========== ======== N Class $ 9.31 $ -- $ 8.39 ========== =========== ======== K Class $ 9.45 $ -- $ -- ========== =========== ========
(1) THE IDENTIFIED COST FOR THE TCW GALILEO AGGRESSIVE GROWTH EQUITIES FUND, THE TCW GALILEO CONVERTIBLE SECURITIES FUND AND THE TCW GALILEO DIVERSIFIED VALUE FUND AT APRIL 30, 2003 WAS $121,947, $95,771 AND $6,020, RESPECTIVELY. (2) AMOUNT ROUNDS TO LESS THAN $1. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 50 TCW GALILEO FUNDS, INC. [ICON] -------------------------------------------------------------------------------- U.S. EQUITIES STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) APRIL 30, 2003
TCW GALILEO FOCUSED TCW GALILEO TCW GALILEO LARGE CAP GROWTH INCOME + VALUE INSIGHTS GROWTH FUND FUND FUND ----------- ----------- ----------- DOLLAR AMOUNTS IN THOUSANDS (EXCEPT PER SHARE AMOUNTS) ASSETS Investments, at Value (1) $ 802 $ 1,446 $ 30,655 Receivable for Securities Sold 1 -- -- Receivable for Fund Shares Sold -- -- 2 Interest and Dividends Receivable 1 -- 64 -------- -------- ---------- Total Assets 804 1,446 30,721 -------- -------- ---------- LIABILITIES Payable for Securities Purchased -- 28 -- Payables for Fund Shares Redeemed -- -- 3 Payable Upon Return of Securities Loaned -- -- 3,521 Accrued Management Fees -- -- 14 Other Accrued Expenses 12 14 32 -------- -------- ---------- Total Liabilities 12 42 3,570 -------- -------- ---------- NET ASSETS $ 792 $ 1,404 $ 27,151 ======== ======== ========== NET ASSETS CONSIST OF: Paid-in Capital $ 1,047 $ 3,455 $ 22,626 Undistributed Net Realized Gain (Loss) on Investments (204) (2,018) 1,747 Unrealized Appreciation (Depreciation) on Investments (48) 54 2,754 Undistributed Net Investment Income (Loss) (3) (87) 24 -------- -------- ---------- NET ASSETS $ 792 $ 1,404 $ 27,151 ======== ======== ========== NET ASSETS ATTRIBUTABLE TO: N Class Shares $ 792 $ 1,404 $ 27,151 ======== ======== ========== CAPITAL SHARES OUTSTANDING: N Class 104,772 277,894 3,275,945 ======== ======== ========== NET ASSET VALUE PER SHARE: N Class $ 7.56 $ 5.05 $ 8.29 ======== ======== ==========
(1) THE IDENTIFIED COST FOR THE TCW GALILEO FOCUSED LARGE CAP VALUE FUND, THE TCW GALILEO GROWTH INSIGHTS FUND AND THE TCW GALILEO INCOME + GROWTH FUND AT APRIL 30, 2003 WAS $850, $1,392 AND $27,901, RESPECTIVELY. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 51 TCW GALILEO FUNDS, INC. -------------------------------------------------------------------------------- U.S. EQUITIES STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) APRIL 30, 2003
TCW GALILEO TCW GALILEO TCW GALILEO LARGE CAP LARGE CAP TCW GALILEO SELECT GROWTH VALUE OPPORTUNITY EQUITIES FUND FUND FUND FUND ----------- ----------- ----------- ----------- DOLLAR AMOUNTS IN THOUSANDS (EXCEPT PER SHARE AMOUNTS) ASSETS Investments, at Value (1) $ 7,436 $ 87,409 $ 42,213 $ 1,670,676 Receivables for Securities Sold -- 107 4 4,973 Receivables for Fund Shares Sold -- 23 -- 3,717 Interest and Dividends Receivable 4 66 30 133 -------- ---------- ---------- ----------- Total Assets 7,440 87,605 42,247 1,679,499 -------- ---------- ---------- ----------- LIABILITIES Payables for Securities Purchased 145 3 26 23 Payables for Fund Shares Redeemed -- -- 8 515 Payables Upon Return of Securities Loaned 325 2,594 7,098 108,836 Accrued Management Fees -- 34 19 918 Other Accrued Expenses 18 51 37 374 -------- ---------- ---------- ----------- Total Liabilities 488 2,682 7,188 110,666 -------- ---------- ---------- ----------- NET ASSETS $ 6,952 $ 84,923 $ 35,059 $ 1,568,833 ======== ========== ========== =========== NET ASSETS CONSIST OF: Paid-in Capital $ 13,897 $ 117,535 $ 37,459 $ 2,016,855 Undistributed Net Realized (Loss) on Investments (7,159) (34,305) (1,625) (279,687) Unrealized Appreciation (Depreciation) on Investments 681 1,618 (575) (148,305) Undistributed Net Investment Income (Loss) (467) 75 (200) (20,030) -------- ---------- ---------- ----------- NET ASSETS $ 6,952 $ 84,923 $ 35,059 $ 1,568,833 ======== ========== ========== =========== NET ASSETS ATTRIBUTABLE TO: I Class Shares $ 3,675 $ 81,835 $ 16,439 $ 1,151,437 ======== ========== ========== =========== N Class Shares $ 3,277 $ 3,088 $ 18,620 $ 417,396 ======== ========== ========== =========== K Class Shares $ -- $ --(2) $ --(2) $ --(2) ======== ========== ========== =========== CAPITAL SHARES OUTSTANDING: I Class 501,850 8,262,431 1,818,959 87,655,273 ======== ========== ========== =========== N Class 448,347 311,812 2,066,726 32,207,410 ======== ========== ========== =========== K Class -- 10 11 6 ======== ========== ========== =========== NET ASSET VALUE PER SHARE: I Class $ 7.32 $ 9.90 $ 9.04 $ 13.14 ======== ========== ========== =========== N Class $ 7.31 $ 9.90 $ 9.01 $ 12.96 ======== ========== ========== =========== K Class $ -- $ 9.90 $ 9.04 $ 13.14 ======== ========== ========== ===========
(1) THE IDENTIFIED COST FOR THE TCW GALILEO LARGE CAP GROWTH FUND, THE TCW GALILEO LARGE CAP VALUE FUND, THE TCW GALILEO OPPORTUNITY FUND AND THE TCW GALILEO SELECT EQUITIES FUND AT APRIL 30, 2003 WAS $6,755, $85,791, $42,788 AND $1,818,981, RESPECTIVELY. (2) AMOUNTS ROUND TO LESS THAN $1. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 52 TCW GALILEO FUNDS, INC. [ICON] -------------------------------------------------------------------------------- U.S. EQUITIES STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) APRIL 30, 2003
TCW GALILEO TCW GALILEO TCW GALILEO SMALL CAP SMALL CAP TCW GALILEO VALUE GROWTH VALUE TECHNOLOGY OPPORTUNITIES FUND FUND FUND FUND ----------- ----------- ----------- ------------- DOLLAR AMOUNTS IN THOUSANDS (EXCEPT PER SHARE AMOUNTS) ASSETS Investments, at Value (1) $ 161,153 $ 21,841 $ 819 $ 425,480 Receivables for Securities Sold 2,173 393 -- 1,135 Receivables for Fund Shares Sold 34 -- -- 456 Interest and Dividends Receivable 9 7 -- 256 ---------- ---------- -------- ----------- Total Assets 163,369 22,241 819 427,327 ---------- ---------- -------- ----------- LIABILITIES Payables for Securities Purchased 2,078 54 -- 3,334 Payables for Fund Shares Redeemed 39 2 -- 714 Payables Upon Return of Securities Loaned 29,353 -- -- 47,085 Accrued Management Fees 96 13 -- 233 Other Accrued Expenses 92 19 8 263 ---------- ---------- -------- ----------- Total Liabilities 31,658 88 8 51,629 ---------- ---------- -------- ----------- NET ASSETS $ 131,711 $ 22,153 $ 811 $ 375,698 ========== ========== ======== =========== NET ASSETS CONSIST OF: Paid-in Capital $ 330,146 $ 26,025 $ 1,864 $ 469,968 Undistributed Net Realized (Loss) on Investments (186,695) (2,147) (1,112) (53,320) Unrealized Appreciation (Depreciation) on Investments 2,321 (1,437) 93 (37,669) Undistributed Net Investment (Loss) (14,061) (288) (34) (3,281) ---------- ---------- -------- ----------- NET ASSETS $ 131,711 $ 22,153 $ 811 $ 375,698 ========== ========== ======== =========== NET ASSETS ATTRIBUTABLE TO: I Class Shares $ 68,527 $ 22,153 $ -- $ 290,928 ========== ========== ======== =========== N Class Shares $ 63,184 $ --(2) $ 811 $ 84,770 ========== ========== ======== =========== K Class Shares $ --(2) $ --(2) $ -- $ --(2) ========== ========== ======== =========== CAPITAL SHARES OUTSTANDING: I Class 6,488,712 2,353,198 -- 19,926,961 ========== ========== ======== =========== N Class 6,052,600 7 325,004 5,845,350 ========== ========== ======== =========== K Class 10 12 -- 8 ========== ========== ======== =========== NET ASSET VALUE PER SHARE: I Class $ 10.56 $ 9.41 $ -- $ 14.60 ========== ========== ======== =========== N Class $ 10.44 $ 9.41 $ 2.49 $ 14.50 ========== ========== ======== =========== K Class $ 10.56 $ 9.41 $ -- $ 14.60 ========== ========== ======== ===========
(1) THE IDENTIFIED COST FOR THE TCW GALILEO SMALL CAP GROWTH FUND, THE TCW GALILEO SMALL CAP VALUE FUND, THE TCW GALILEO TECHNOLOGY FUND AND THE TCW GALILEO VALUE OPPORTUNITIES FUND AT APRIL 30, 2003 WAS $158,832, $23,278, $726 AND $463,149, RESPECTIVELY. (2) AMOUNT ROUNDS TO LESS THAN $1. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 53 TCW GALILEO FUNDS, INC. -------------------------------------------------------------------------------- U.S. EQUITIES STATEMENTS OF OPERATIONS (UNAUDITED) SIX MONTHS ENDED APRIL 30, 2003
TCW GALILEO AGGRESSIVE TCW GALILEO TCW GALILEO GROWTH CONVERTIBLE DIVERSIFIED EQUITIES SECURITIES VALUE FUND FUND FUND ----------- ----------- ----------- DOLLAR AMOUNTS IN THOUSANDS INVESTMENT INCOME INCOME: Dividends $ 61 $ 908 $39 Interest 24 837 1 -------- ------- --- Total 85 1,745 40 -------- ------- --- EXPENSES: Management Fees 504 213 20 Accounting Service Fees 17 7 1 Administration Fees 24 12 1 Transfer Agent Fees: I Class 17 14 -- N Class 22 -- 9 K Class 4 -- -- Custodian Fees 6 7 3 Professional Fees 16 14 9 Directors' Fees & Expenses 5 5 5 Registration Fees: I Class 9 8 -- N Class 6 -- 7 Distribution Fees: N Class 40 -- 7 Other 22 8 2 -------- ------- --- Total 692 288 64 Less Expenses Borne by Investment Advisor: N Class -- -- 32 K Class 4 -- -- -------- ------- --- Net Expenses 688 288 32 -------- ------- --- Net Investment Income (Loss) (603) 1,457 8 -------- ------- --- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain (Loss) on Investments (12,689) (3,554) 6 Change in Unrealized Appreciation on Investments 31,556 10,085 66 -------- ------- --- Net Realized and Unrealized Gain (Loss) on Investments 18,867 6,531 72 -------- ------- --- INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 18,264 $ 7,988 $80 ======== ======= ===
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 54 TCW GALILEO FUNDS, INC. [ICON] -------------------------------------------------------------------------------- U.S. EQUITIES STATEMENTS OF OPERATIONS (UNAUDITED) SIX MONTHS ENDED APRIL 30, 2003
TCW GALILEO FOCUSED TCW GALILEO TCW GALILEO LARGE CAP GROWTH INCOME + VALUE INSIGHTS GROWTH FUND FUND FUND ----------- ----------- ----------- DOLLAR AMOUNTS IN THOUSANDS INVESTMENT INCOME INCOME: Dividends (1) $ 7 $ 4 $ 324 Interest -- -- 9 ---- ----- ------ Total 7 4 333 ---- ----- ------ EXPENSES: Management Fees 3 7 99 Accounting Service Fees -- -- 4 Administration Fees -- -- 5 Transfer Agent Fees: N Class 4 4 20 Custodian Fees 5 3 3 Professional Fees 6 6 13 Directors' Fees & Expenses 5 5 5 Registration Fees: N Class -- -- 8 Distribution Fees: N Class 1 2 33 Other 1 1 6 ---- ----- ------ Total 25 28 196 Less Expenses Borne by Investment Advisor: N Class 19 14 20 ---- ----- ------ Net Expenses 6 14 176 ---- ----- ------ Net Investment Income (Loss) 1 (10) 157 ---- ----- ------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain (Loss) on Investments (74) (260) 1,791 Change in Unrealized Appreciation (Depreciation) on Investments 81 368 (889) ---- ----- ------ Net Realized and Unrealized Gain (Loss) on Investments 7 108 902 ---- ----- ------ INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 8 $ 98 $1,059 ==== ===== ======
(1) NET OF FOREIGN TAXES WITHHELD OF THE TCW GALILEO INCOME + GROWTH FUND WAS $2. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 55 TCW GALILEO FUNDS, INC. -------------------------------------------------------------------------------- U.S. EQUITIES STATEMENTS OF OPERATIONS (UNAUDITED) SIX MONTHS ENDED APRIL 30, 2003
TCW GALILEO TCW GALILEO TCW GALILEO LARGE CAP LARGE CAP TCW GALILEO SELECT GROWTH VALUE OPPORTUNITY EQUITIES FUND FUND FUND FUND ----------- ----------- ----------- ----------- DOLLAR AMOUNTS IN THOUSANDS INVESTMENT INCOME INCOME: Dividends (1) $ 46 $ 911 $ 154 $ 2,528 Interest 3 5 14 143 ------ -------- ------ --------- Total 49 916 168 2,671 ------ -------- ------ --------- EXPENSES: Management Fees 22 286 152 5,092 Accounting Service Fees 3 21 8 200 Administration Fees 4 30 9 256 Transfer Agent Fees: I Class 14 15 1 63 N Class 16 15 25 160 K Class -- 4 4 4 Custodian Fees 6 9 8 15 Professional Fees 14 16 15 40 Directors' Fees & Expenses 5 5 5 5 Registration Fees: I Class 8 9 7 16 N Class 6 6 7 7 Distribution Fees: N Class 1 4 23 397 Other 2 21 7 276 ------ -------- ------ --------- Total 101 441 271 6,531 Less Expenses Borne by Investment Advisor: I Class 16 -- 3 -- N Class 24 16 31 -- K Class -- 4 3 4 ------ -------- ------ --------- Net Expenses 61 421 234 6,527 ------ -------- ------ --------- Net Investment Income (Loss) (12) 495 (66) (3,856) ------ -------- ------ --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain (Loss) on Investments (935) (14,484) 921 (161,297) Change in Unrealized Appreciation on Investments 1,360 13,477 325 377,050 ------ -------- ------ --------- Net Realized and Unrealized Gain (Loss) on Investments 425 (1,007) 1,246 215,753 ------ -------- ------ --------- INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 413 $ (512) $1,180 $ 211,897 ====== ======== ====== =========
(1) NET OF FOREIGN TAXES WITHHELD OF THE TCW GALILEO OPPORTUNITY FUND WAS $2. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 56 TCW GALILEO FUNDS, INC. [ICON] -------------------------------------------------------------------------------- U.S. EQUITIES STATEMENTS OF OPERATIONS (UNAUDITED) SIX MONTHS ENDED APRIL 30, 2003
TCW GALILEO TCW GALILEO TCW GALILEO SMALL CAP SMALL CAP TCW GALILEO VALUE GROWTH VALUE TECHNOLOGY OPPORTUNITIES FUND FUND FUND FUND ----------- ----------- ----------- ------------- DOLLAR AMOUNTS IN THOUSANDS INVESTMENT INCOME INCOME: Dividends $ 22 $ 45 $ -- $ 1,524 Interest 41 2 -- 45 -------- ------- ---- -------- Total 63 47 -- 1,569 -------- ------- ---- -------- EXPENSES: Management Fees 578 105 3 1,469 Accounting Service Fees 22 3 -- 64 Administration Fees 32 3 -- 90 Transfer Agent Fees: I Class 38 7 -- 80 N Class 20 4 16 51 K Class 4 4 -- 4 Custodian Fees 13 16 4 12 Professional Fees 17 14 9 22 Directors' Fees & Expenses 5 5 5 5 Registration Fees: I Class 10 9 -- 23 N Class 6 -- -- 5 Distribution Fees: N Class 68 -- 1 106 Other 34 4 1 88 -------- ------- ---- -------- Total 847 174 39 2,019 Less Expenses Borne by Investment Advisor: I Class -- 3 -- -- N Class -- 4 32 -- K Class 4 4 -- 4 -------- ------- ---- -------- Net Expenses 843 163 7 2,015 -------- ------- ---- -------- Net Investment (Loss) (780) (116) (7) (446) -------- ------- ---- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized (Loss) on Investments (27,178) (1,202) (39) (23,507) Change in Unrealized Appreciation on Investments 32,398 2,959 169 62,627 -------- ------- ---- -------- Net Realized and Unrealized Gain (Loss) on Investments 5,220 1,757 130 39,120 -------- ------- ---- -------- INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 4,440 $ 1,641 $123 $ 38,674 ======== ======= ==== ========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 57 TCW GALILEO FUNDS, INC. -------------------------------------------------------------------------------- U.S. EQUITIES STATEMENTS OF CHANGES IN NET ASSETS
TCW GALILEO TCW GALILEO AGGRESSIVE GROWTH CONVERTIBLE EQUITIES FUND SECURITIES FUND ------------------------ ------------------------ SIX MONTHS SIX MONTHS ENDED ENDED APRIL 30, YEAR ENDED APRIL 30, YEAR ENDED 2003 OCTOBER 31, 2003 OCTOBER 31, (UNAUDITED) 2002 (UNAUDITED) 2002 ----------- ----------- ----------- ----------- DOLLAR AMOUNTS IN THOUSANDS OPERATIONS Net Investment Income (Loss) $ (603) $ (1,265) $ 1,457 $ 2,322 Net Realized (Loss) on Investments (12,689) (39,742) (3,554) (8,470) Change in Unrealized Appreciation (Depreciation) on Investments 31,556 14,000 10,085 (360) -------- -------- ------- ------- Increase (Decrease) in Net Assets Resulting from Operations 18,264 (27,007) 7,988 (6,508) -------- -------- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS Distributions from Net Investment Income: I Class -- -- (1,442) (2,173) -------- -------- ------- ------- NET CAPITAL SHARE TRANSACTIONS I Class 9,379 (11,186) 32,342 4,110 N Class 16,319 7,248 -- -- K Class --(1) -- -- -- -------- -------- ------- ------- Increase (Decrease) in Net Assets Resulting from Net Capital Share Transactions 25,698 (3,938) 32,342 4,110 -------- -------- ------- ------- Increase (Decrease) in Net Assets 43,962 (30,945) 38,888 (4,571) NET ASSETS Beginning of Period 83,771 114,716 46,817 51,388 -------- -------- ------- ------- End of Period $127,733 $ 83,771 $85,705 $46,817 ======== ======== ======= =======
(1) AMOUNT ROUNDS TO LESS THAN $1. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 58 TCW GALILEO FUNDS, INC. [ICON] -------------------------------------------------------------------------------- U.S. EQUITIES STATEMENTS OF CHANGES IN NET ASSETS
TCW GALILEO TCW GALILEO DIVERSIFIED FOCUSED LARGE CAP VALUE FUND VALUE FUND ------------------------------------------- ------------------------ SIX MONTHS SIX MONTHS ENDED ENDED APRIL 30, DECEMBER 1, 2001 YEAR ENDED APRIL 30, YEAR ENDED 2003 THROUGH NOVEMBER 30, 2003 OCTOBER 31, (UNAUDITED) OCTOBER 31, 2002 2001 (UNAUDITED) 2002 ----------- ---------------- ------------ ----------- ----------- DOLLAR AMOUNTS IN THOUSANDS OPERATIONS Net Investment Income $ 8 $ 33 $ 11 $ 1 $ 1 Net Realized Gain (Loss) on Investments 6 (210) 179 (74) (91) Change in Unrealized Appreciation (Depreciation) on Investments 66 (745) (185) 81 (45) ------ ------- ------- ---- ------ Increase (Decrease) in Net Assets Resulting from Operations 80 (922) 5 8 (135) ------ ------- ------- ---- ------ DISTRIBUTIONS TO SHAREHOLDERS Distributions from Net Investment Income: N Class (38) (5) (15)(1) (2) -- ------ ------- ------- ---- ------ NET CAPITAL SHARE TRANSACTIONS N Class 1,744 (453) (1,261)(1) 2 -- ------ ------- ------- ---- ------ Increase (Decrease) in Net Assets 1,786 (1,380) (1,271) 8 (135) NET ASSETS Beginning of Period 3,888 5,268 6,539 784 919 ------ ------- ------- ---- ------ End of Period $5,674 $ 3,888 $ 5,268 $792 $ 784 ====== ======= ======= ==== ======
(1) AMOUNT REPRESENTS THE TOTAL OF A, B, AND I CLASSES OF THE FORMER COWEN FUND. SEE NOTE 1. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 59 TCW GALILEO FUNDS, INC. -------------------------------------------------------------------------------- U.S. EQUITIES STATEMENTS OF CHANGES IN NET ASSETS
TCW GALILEO TCW GALILEO GROWTH INCOME + GROWTH INSIGHTS FUND FUND ------------------------ ------------------------------------------- SIX MONTHS SIX MONTHS ENDED ENDED APRIL 30, YEAR ENDED APRIL 30, DECEMBER 1, 2001 YEAR ENDED 2003 OCTOBER 31, 2003 THROUGH NOVEMBER 30, (UNAUDITED) 2002 (UNAUDITED) OCTOBER 31, 2002 2001 ----------- ----------- ----------- ---------------- ------------ DOLLAR AMOUNTS IN THOUSANDS OPERATIONS Net Investment Income (Loss) $ (10) $ (48) $ 157 $ 346 $ 365 Net Realized Gain (Loss) on Investments (260) (1,064) 1,791 3,944 726 Change in Unrealized Appreciation (Depreciation) on Investments 368 359 (889) (7,725) 1,262 ------ ------- ------- -------- ------- Increase (Decrease) in Net Assets Resulting from Operations 98 (753) 1,059 (3,435) 2,353 ------ ------- ------- -------- ------- DISTRIBUTIONS TO SHAREHOLDERS Distributions from Net Investment Income: N Class -- -- (213) (335) (422)(1) Distributions from Net Realized Gain: N Class -- -- (2,685) (1,513) (1,182)(1) ------ ------- ------- -------- ------- Total Distributions to Shareholders -- -- (2,898) (1,848) (1,604) ------ ------- ------- -------- ------- NET CAPITAL SHARE TRANSACTIONS N Class (647) (309) 2,272 (5,025) (1,065)(1) ------ ------- ------- -------- ------- Increase (Decrease) in Net Assets (549) (1,062) 433 (10,308) (316) NET ASSETS Beginning of Period 1,953 3,015 26,718 37,026 37,342 ------ ------- ------- -------- ------- End of Period $1,404 $ 1,953 $27,151 $ 26,718 $37,026 ====== ======= ======= ======== =======
(1) AMOUNT REPRESENTS THE TOTAL OF A, B AND I CLASSES OF THE FORMER COWEN FUND. SEE NOTE 1. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 60 TCW GALILEO FUNDS, INC. [ICON] -------------------------------------------------------------------------------- U.S. EQUITIES STATEMENTS OF CHANGES IN NET ASSETS
TCW GALILEO TCW GALILEO LARGE CAP LARGE CAP GROWTH FUND VALUE FUND ------------------------ ------------------------ SIX MONTHS SIX MONTHS ENDED ENDED APRIL 30, YEAR ENDED APRIL 30, YEAR ENDED 2003 OCTOBER 31, 2003 OCTOBER 31, (UNAUDITED) 2002 (UNAUDITED) 2002 ----------- ----------- ----------- ----------- DOLLAR AMOUNTS IN THOUSANDS OPERATIONS Net Investment Income (Loss) $ (12) $ (53) $ 495 $ 1,083 Net Realized (Loss) on Investments (935) (592) (14,484) (13,301) Change in Unrealized Appreciation (Depreciation) on Investments 1,360 (1,245) 13,477 (1,418) ------- ------- -------- -------- Increase (Decrease) in Net Assets Resulting from Operations 413 (1,890) (512) (13,636) ------- ------- -------- -------- DISTRIBUTIONS TO SHAREHOLDERS Distributions from Net Investment Income: I Class -- -- (1,185) (979) N Class -- -- (13) -- ------- ------- -------- -------- Total Distributions to Shareholders -- -- (1,198) (979) ------- ------- -------- -------- NET CAPITAL SHARE TRANSACTIONS I Class (3,737) (3,907) (29,112) (10,502) N Class 2,934 1 144 662 K Class -- -- --(1) -- ------- ------- -------- -------- (Decrease) in Net Assets Resulting from Net Capital Share Transactions (803) (3,906) (28,968) (9,840) ------- ------- -------- -------- (Decrease) in Net Assets (390) (5,796) (30,678) (24,455) NET ASSETS Beginning of Period 7,342 13,138 115,601 140,056 ------- ------- -------- -------- End of Period $ 6,952 $ 7,342 $ 84,923 $115,601 ======= ======= ======== ========
(1) AMOUNT ROUNDS TO LESS THAN $1. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 61 TCW GALILEO FUNDS, INC. -------------------------------------------------------------------------------- U.S. EQUITIES STATEMENTS OF CHANGES IN NET ASSETS
TCW GALILEO TCW GALILEO SELECT OPPORTUNITY FUND EQUITIES FUND -------------------------------------- ------------------------ SIX MONTHS DECEMBER 1, SIX MONTHS ENDED 2001 ENDED APRIL 30, THROUGH YEAR ENDED APRIL 30, YEAR ENDED 2003 OCTOBER 31, NOVEMBER 30, 2003 OCTOBER 31, (UNAUDITED) 2002 2001 (UNAUDITED) 2002 ----------- ----------- ------------ ----------- ----------- DOLLAR AMOUNTS IN THOUSANDS OPERATIONS Net Investment (Loss) $ (66) $ (134) $ (247) $ (3,856) $ (8,345) Net Realized Gain (Loss) on Investments 921 (832) 3,609 (161,297) (15,668) Change in Unrealized Appreciation (Depreciation) on Investments 325 (4,022) 1,539 377,050 (318,854) ------- ------- ------- ---------- ---------- Increase (Decrease) in Net Assets Resulting from Operations 1,180 (4,988) 4,901 211,897 (342,867) ------- ------- ------- ---------- ---------- DISTRIBUTIONS TO SHAREHOLDERS Distributions from Net Realized Gain: I Class -- (560) (273)(2) -- -- N Class -- (1,518) (785)(3) -- -- ------- ------- ------- ---------- ---------- Total Distributions to Shareholders -- (2,078) (1,058) -- -- ------- ------- ------- ---------- ---------- NET CAPITAL SHARE TRANSACTIONS I Class 735 8,078 343(2) 8,955 454,888 N Class (1,557) (1,303) (2,054)(3) 82,796 173,889 K Class --(1) -- -- -- -- ------- ------- ------- ---------- ---------- Increase (Decrease) in Net Assets Resulting from Net Capital Share Transactions (822) 6,775 (1,711) 91,751 628,777 ------- ------- ------- ---------- ---------- Increase (Decrease) in Net Assets 358 (291) 2,132 303,648 285,910 NET ASSETS Beginning of Period 34,701 34,992 32,860 1,265,185 979,275 ------- ------- ------- ---------- ---------- End of Period $35,059 $34,701 $34,992 $1,568,833 $1,265,185 ======= ======= ======= ========== ==========
(1) AMOUNT ROUNDS TO LESS THAN $1. (2) AMOUNT REPRESENTS THE I CLASS OF THE FORMER COWEN FUND. SEE NOTE 1. (3) AMOUNT REPRESENTS THE TOTAL OF A AND B CLASSES OF THE FORMER COWEN FUND. SEE NOTE 1. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 62 TCW GALILEO FUNDS, INC. [ICON] -------------------------------------------------------------------------------- U.S. EQUITIES STATEMENTS OF CHANGES IN NET ASSETS
TCW GALILEO TCW GALILEO SMALL CAP SMALL CAP GROWTH FUND VALUE FUND ------------------------ ------------------------ SIX MONTHS SIX MONTHS ENDED ENDED APRIL 30, YEAR ENDED APRIL 30, YEAR ENDED 2003 OCTOBER 31, 2003 OCTOBER 31, (UNAUDITED) 2002 (UNAUDITED) 2002 ----------- ----------- ----------- ----------- DOLLAR AMOUNTS IN THOUSANDS OPERATIONS Net Investment (Loss) $ (780) $ (2,360) $ (116) $ (152) Net Realized (Loss) on Investments (27,178) (83,472) (1,202) (926) Change in Unrealized Appreciation (Depreciation) on Investments 32,398 16,268 2,959 (4,111) -------- -------- ------- ------- Increase (Decrease) in Net Assets Resulting from Operations 4,440 (69,564) 1,641 (5,189) -------- -------- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS Distributions from Net Realized Gain: I Class -- -- -- (21) -------- -------- ------- ------- NET CAPITAL SHARE TRANSACTIONS I Class (5,207) (31,674) 8,824 12,724 N Class 8,460 9,375 -- --(1) K Class --(1) -- --(1) -- -------- -------- ------- ------- Increase (Decrease) in Net Assets Resulting from Net Capital Share Transactions 3,253 (22,299) 8,824 12,724 -------- -------- ------- ------- Increase (Decrease) in Net Assets 7,693 (91,863) 10,465 7,514 NET ASSETS Beginning of Period 124,018 215,881 11,688 4,174 -------- -------- ------- ------- End of Period $131,711 $124,018 $22,153 $11,688 ======== ======== ======= =======
(1) AMOUNTS ROUND TO LESS THAN $1. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 63 TCW GALILEO FUNDS, INC. -------------------------------------------------------------------------------- U.S. EQUITIES STATEMENTS OF CHANGES IN NET ASSETS
TCW GALILEO TCW GALILEO VALUE TECHNOLOGY FUND OPPORTUNITIES FUND ------------------------ ------------------------ SIX MONTHS SIX MONTHS ENDED ENDED APRIL 30, YEAR ENDED APRIL 30, YEAR ENDED 2003 OCTOBER 31, 2003 OCTOBER 31, (UNAUDITED) 2002 (UNAUDITED) 2002 ----------- ----------- ----------- ----------- DOLLAR AMOUNTS IN THOUSANDS OPERATIONS Net Investment (Loss) $ (7) $ (16) $ (446) $ (2,512) Net Realized (Loss) on Investments (39) (590) (23,507) (32,415) Change in Unrealized Appreciation (Depreciation) on Investments 169 300 62,627 (110,697) ---- ----- -------- --------- Increase (Decrease) in Net Assets Resulting from Operations 123 (306) 38,674 (145,624) ---- ----- -------- --------- DISTRIBUTIONS TO SHAREHOLDERS Distributions from Net Realized Gain: I Class -- -- -- (4,337) N Class -- -- -- (1,058) ---- ----- -------- --------- Total Distributions to Shareholders -- -- -- (5,395) ---- ----- -------- --------- NET CAPITAL SHARE TRANSACTIONS I Class -- -- (13,899) 40,311 N Class 11 84 (6,258) 63,602 K Class -- -- --(1) -- ---- ----- -------- --------- Increase (Decrease) in Net Assets Resulting from Net Capital Share Transactions 11 84 (20,157) 103,913 ---- ----- -------- --------- Increase (Decrease) in Net Assets 134 (222) 18,517 (47,106) NET ASSETS Beginning of Period 677 899 357,181 404,287 ---- ----- -------- --------- End of Period $811 $ 677 $375,698 $ 357,181 ==== ===== ======== =========
(1) AMOUNT ROUNDS TO LESS THAN $1. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 64 [ICON] -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) APRIL 30, 2003 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 24 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 and is registered under the Investment Advisors Act of 1940. Societe Generale Asset Management International Ltd. (regulated by the Financial Services Authority in the United Kingdom) is a sub-advisor to the TCW Galileo Emerging Markets Equities Fund, the TCW Galileo European Growth Equities Fund, and the TCW Galileo Select International Growth Equities Fund. SGY Asset Management (Singapore) Ltd. ("SGY") is a sub-advisor to the TCW Galileo Asia Pacific Equities Fund. The Advisor and SGY are the second-tier subsidiaries of Societe Generale Asset Management, S.A. Each Fund has distinct investment objectives and policies. The TCW Galileo Aggressive Growth Equities Fund, the TCW Galileo Large Cap Value Fund, the TCW Galileo Opportunity Fund, the TCW Galileo Select Equities Fund, the TCW Galileo Small Cap Growth Fund, the TCW Galileo Small Cap Value Fund, and the TCW Galileo Value Opportunities Fund offer three classes of shares: I Class, N Class and K Class. The TCW Galileo Large Cap Growth Fund offers two classes of shares: I Class and N Class. The other equity funds only offer I or N Class shares. The Classes are substantially the same except that the N Class shares are subject to a distribution fee and the K Class shares are subject to a distribution fee and an administrative services fee. I Class shares are not subject to these fees. Please see Note 6. Each respective fund commenced offering the K Class shares on November 1, 2002 except for the TCW Galileo Select Equities Fund which offered its K Class shares commencing on August 6, 2001. These K Class shares are not currently available to the general public. On December 17, 2001, the TCW Galileo Diversified Value Fund, the TCW Galileo Income + Growth Fund, and the TCW Galileo Opportunity Fund acquired all the assets and liabilities of the SG Cowen Large Cap Value Fund, the SG Cowen Income + Growth Fund, and the SG Cowen Opportunity Fund (collectively "Cowen Funds"), respectively. The acquisition was accomplished by a tax-free exchange of the shares of the Cowen Funds for the shares of the respective Galileo fund based on the following exchange ratio:
EXCHANGE RATIO ------------------- CLASS CLASS CLASS A B I ----- ----- ----- SG Cowen Large Cap Value Fund 1.096 1.090 1.103 SG Cowen Income + Growth Fund 1.343 1.334 1.352 SG Cowen Opportunity Fund 1.676 1.546 1.734
All share classes for the SG Cowen Large Cap Value Fund and the SG Cowen Income + Growth Fund were exchanged into the N Class shares of the respective Galileo fund. For the SG Cowen Opportunity Fund, the A and B Class shares were exchanged into the N Class shares and the I Class shares were exchanged into the I Class shares of the TCW Galileo Opportunity Fund. The Funds' financial statements are separated into three reports: 1) U.S. Equities Funds, 2) U.S. Fixed Income Funds, and 3) International Funds. NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies which are in conformity with accounting principles generally accepted in the United States of America and which are consistently followed by the Funds in the preparation of their financial statements. 65 TCW GALILEO FUNDS, INC. -------------------------------------------------------------------------------- U.S. EQUITIES NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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. 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. 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. Premiums and discounts on securities purchased are amortized using the effective yield method. Realized gains and losses on investments are recorded on the basis of specific identification. REPURCHASE AGREEMENTS: The Funds may invest in repurchase agreements secured by U.S. Government obligations and by other securities. Securities pledged as collateral for repurchase agreements are held by the Funds' custodian bank until maturity of the repurchase agreements. Provisions of the agreements ensure that the market value of the collateral is sufficient in the event of default; however, in the event of default or bankruptcy by the other party to the agreements, realization and/or retention of the collateral may be subject to legal proceedings. SECURITY LENDING: The Funds may lend their securities to qualified brokers. The loans are collateralized at all times with cash or securities with a market value at least equal to the market value of the securities on loan. As with any extensions of credit, the Funds may bear the risk of delay in recovery or even loss of rights in the collateral if the borrowers of the securities fail financially. The Funds receive compensation for lending their securities (see Note 3). OPTIONS: Premiums received from call options written are recorded as a liability. The amount of the liability is subsequently adjusted to reflect the current market value of the option written. If the option expires unexercised, premiums received are realized as a gain at expiration date. If the position is closed prior to expiration, a gain or loss is realized based on premiums received, less the cost to close the option. When an option is exercised, premiums received are added to the proceeds from the sale of the underlying securities and a gain or loss is realized. Call options purchased are accounted for in the same manner as portfolio securities. The cost of securities acquired through the exercise of call options is increased by premiums paid. There were no options contracts entered into during the six months ended April 30, 2003. USE OF ESTIMATES: The preparation of the accompanying financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from these estimates. 66 [ICON] -------------------------------------------------------------------------------- APRIL 30, 2003 ALLOCATION OF OPERATING ACTIVITY FOR MULTIPLE CLASSES: Investment income, common expenses and realized and unrealized gains and losses are allocated among the classes of shares of the Funds based on the relative net assets of each class. Distribution fees, which are directly attributable to a class of shares, are charged to that class' operations (see Note 6). 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/Daylight Time. DIVIDENDS AND DISTRIBUTIONS: The TCW Galileo Convertible Securities Fund, and the TCW Galileo Income + Growth Fund declare and pay, or reinvest, dividends from net investment income quarterly. The other equity funds declare and pay, or reinvest, dividends from net investment income annually. Distribution of any net long-term and net short-term capital gains earned by a fund will be distributed at least annually. Income and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. 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. RECLASSIFICATIONS: Certain reclassifications were made to the prior periods' Financial Highlights relating to distributions for presentation purposes only. These reclassifications had no effect on the net assets or net asset value per share. 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, 2003 (amounts in thousands):
MARKET VALUE OF SECURITIES LOANED SECURITIES COLLATERAL VALUE LENDING INCOME* ----------------- ---------------- --------------- TCW Galileo Aggressive Growth Equities Fund $ 25,429 $ 26,203 $ 7 TCW Galileo Convertible Securities Fund 13,192 13,553 6 TCW Galileo Income + Growth Fund 3,398 3,521 2 TCW Galileo Large Cap Growth Fund 315 326 -- TCW Galileo Large Cap Value Fund 2,499 2,594 2 TCW Galileo Opportunity Fund 6,625 7,098 6 TCW Galileo Select Equities Fund 105,194 108,836 30 TCW Galileo Small Cap Growth Fund 28,019 29,353 22 TCW Galileo Value Opportunities Fund 44,670 47,085 14
* NET OF BROKER FEES. Securities lending income is included in interest income in the Statements of Operations. 67 TCW GALILEO FUNDS, INC. -------------------------------------------------------------------------------- U.S. EQUITIES NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) 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, 2003, net unrealized appreciation (depreciation) on investments for federal income tax purposes was as follows (amounts in thousands):
TCW GALILEO TCW GALILEO TCW GALILEO AGGRESSIVE CONVERTIBLE TCW GALILEO FOCUSED GROWTH SECURITIES DIVERSIFIED LARGE CAP EQUITIES FUND FUND VALUE FUND VALUE ------------- ------------ ----------- ----------- Unrealized Appreciation $ 42,635 $ 5,814 $ 350 $ 40 Unrealized (Depreciation) (10,560) (486) (651) (88) -------- ----------- -------- ------- Net Unrealized Appreciation (Depreciation) $ 32,075 $ 5,328 $ (301) $ (48) ======== =========== ======== ======= Cost of Investments for Federal Income Tax Purposes $121,947 $ 95,782 $ 6,020 $ 850 ======== =========== ======== ======= TCW GALILEO TCW GALILEO TCW GALILEO GROWTH INCOME + LARGE CAP TCW GALILEO INSIGHTS GROWTH GROWTH LARGE CAP FUND FUND FUND VALUE FUND ------------- ------------ ----------- ----------- Unrealized Appreciation $ 163 $ 3,870 $ 740 $ 7,221 Unrealized (Depreciation) (109) (1,116) (59) (5,603) -------- ----------- -------- ------- Net Unrealized Appreciation (Depreciation) $ 54 $ 2,754 $ 681 $ 1,618 ======== =========== ======== ======= Cost of Investments for Federal Income Tax Purposes $ 1,392 $ 27,901 $ 6,755 $85,791 ======== =========== ======== ======= TCW GALILEO TCW GALILEO TCW GALILEO SELECT SMALL CAP TCW GALILEO OPPORTUNITY EQUITIES GROWTH SMALL CAP FUND FUND FUND VALUE FUND ------------- ------------ ----------- ----------- Unrealized Appreciation $ 3,583 $ 171,404 $ 28,804 $ 1,480 Unrealized (Depreciation) (4,158) (319,709) (26,483) (2,917) -------- ----------- -------- ------- Net Unrealized Appreciation (Depreciation) $ (575) $ (148,305) $ 2,321 $(1,437) ======== =========== ======== ======= Cost of Investments for Federal Income Tax Purposes $ 42,788 $(1,818,981) $158,832 $23,278 ======== =========== ======== =======
68 [ICON] -------------------------------------------------------------------------------- APRIL 30, 2003
TCW GALILEO TCW GALILEO VALUE TECHNOLOGY OPPORTUNITIES FUND FUND ----------- ------------- Unrealized Appreciation $149 $ 32,758 Unrealized (Depreciation) (56) (70,427) ---- -------- Net Unrealized Appreciation (Depreciation) $ 93 $(37,669) ==== ======== Cost of Investments for Federal Income Tax Purposes $726 $463,149 ==== ========
At April 30, 2003, the following funds had net realized loss carryforwards for federal income tax purposes (amounts in thousands):
EXPIRING IN ------------------------------------ 2006 2007 2008 2009 2010 ---- ------ ---- ------- ------- TCW Galileo Aggressive Growth Equities Fund $-- $ -- $ -- $43,859 $36,160 TCW Galileo Convertible Securities Fund -- -- -- 11,537 8,584 TCW Galileo Diversified Value Fund -- 145* 305* -- 185 TCW Galileo Focused Large Cap Value Fund -- -- -- 39 90 TCW Galileo Growth Insights Fund -- -- -- 427 1,051 TCW Galileo Large Cap Growth Fund -- -- -- 5,690 596 TCW Galileo Large Cap Value Fund 10 1,081 417 5,011 13,944 TCW Galileo Opportunity Fund -- -- -- -- 1,009 TCW Galileo Select Equities Fund -- -- -- 96,926 14,594 TCW Galileo Small Cap Growth Fund -- -- -- 76,526 83,521 TCW Galileo Small Cap Value Fund -- -- -- -- 308 TCW Galileo Technology Fund -- -- -- 461 539 TCW Galileo Value Opportunities Fund -- -- -- -- 28,064
* SUBJECT TO LIMITATION IMPOSED BY THE INTERNAL REVENUE CODE SECTION 382. NOTE 5 -- FUND EXPENSES The Funds pay to the Advisor, as compensation for services rendered, facilities furnished and expenses borne by it, the following annual management fees as a percentage of daily net asset value: TCW Galileo Aggressive Growth Equities Fund 1.00% TCW Galileo Convertible Securities Fund 0.75% TCW Galileo Diversified Value Fund 0.75% TCW Galileo Focused Large Cap Value Fund 0.65% TCW Galileo Growth Insights Fund 0.90% TCW Galileo Income + Growth Fund 0.75% TCW Galileo Large Cap Growth Fund 0.55% TCW Galileo Large Cap Value Fund 0.55% TCW Galileo Opportunity Fund 0.90% TCW Galileo Select Equities Fund 0.75% TCW Galileo Small Cap Growth Fund 1.00% TCW Galileo Small Cap Value Fund 1.00% TCW Galileo Technology Fund 1.00% TCW Galileo Value Opportunities Fund 0.80%
69 TCW GALILEO FUNDS, INC. -------------------------------------------------------------------------------- U.S. EQUITIES NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) NOTE 5 -- FUND EXPENSES (CONTINUED) The ordinary operating expenses for the funds listed below (each share class) are limited to the average total expense ratio as reported by Lipper Analytical Services, Inc. for each fund's respective investment objective, which is subject to change on a monthly basis. The average expense ratios reported by Lipper Analytical Services, Inc. as they relate to the investment objective of each Fund were: TCW Galileo Aggressive Growth Equities Fund 1.76% TCW Galileo Convertible Securities Fund 1.49% TCW Galileo Diversified Value Fund 1.44% TCW Galileo Focused Large Cap Value Fund 1.42% TCW Galileo Growth Insights Fund 1.76% TCW Galileo Income + Growth Fund 1.43% TCW Galileo Large Cap Growth Fund 1.58% TCW Galileo Large Cap Value Fund 1.42% TCW Galileo Opportunity Fund 1.50% TCW Galileo Select Equities Fund 1.58% TCW Galileo Small Cap Growth Fund 1.74% TCW Galileo Small Cap Value Fund 1.73% TCW Galileo Technology Fund 2.04% TCW Galileo Value Opportunities Fund 1.59%
NOTE 6 -- DISTRIBUTION PLAN TCW Brokerage Services ("Distributor"), an affiliate of the Advisor, serves as the non-exclusive distributor of each class of the Company's shares. The Company has a distribution plan pursuant to Rule 12b-1 under the 1940 Act with respect to the N Class and K Class shares of each fund. Under the terms of the 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 N Class and K Class shares for distribution and related services. The K Class shares are also subject to an administrative services fee. The Distributor receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of each fund for procuring recordkeeping, subaccounting and other administrative services to investors of the fund. The Distributor expects to use a significant portion of this fee to compensate retirement plan service providers, brokers, bank trust departments, financial advisers and other financial intermediaries for providing these services to their customers. NOTE 7 -- PURCHASES AND SALES OF SECURITIES Investment transactions (excluding short-term investments) for the six months ended April 30, 2003, were as follows (amounts in thousands):
TCW GALILEO TCW GALILEO TCW GALILEO TCW GALILEO AGGRESSIVE GROWTH CONVERTIBLE DIVERSIFIED FOCUSED LARGE EQUITIES FUND SECURITIES FUND VALUE FUND CAP VALUE ----------------- --------------- ----------- ------------- Purchases at Cost $44,620 $63,956 $2,617 $269 ======= ======= ====== ==== Sales Proceeds $21,408 $31,893 $1,036 $277 ======= ======= ====== ====
70 [ICON] -------------------------------------------------------------------------------- APRIL 30, 2003
TCW GALILEO TCW GALILEO TCW GALILEO LARGE CAP TCW GALILEO GROWTH INCOME + GROWTH LARGE CAP INSIGHTS FUND GROWTH FUND FUND VALUE FUND ------------- ----------- ----------- ----------- Purchases at Cost $ 340 $ 7,191 $ 7,725 $29,516 ====== ======== ======= ======= Sales Proceeds $1,036 $ 4,259 $ 3,453 $53,153 ====== ======== ======= ======= TCW GALILEO TCW GALILEO TCW GALILEO SMALL CAP TCW GALILEO OPPORTUNITY SELECT GROWTH SMALL CAP FUND EQUITIES FUND FUND VALUE FUND ------------- ------------- ----------- ----------- Purchases at Cost $8,098 $400,429 $36,352 $16,417 ====== ======== ======= ======= Sales Proceeds $8,910 $206,405 $30,866 $ 8,066 ====== ======== ======= ======= TCW GALILEO TCW GALILEO VALUE TECHNOLOGY OPPORTUNITIES FUND FUND ------------- ------------- Purchases at Cost $ 107 $107,607 ====== ======== Sales Proceeds $ 123 $135,493 ====== ========
There were no purchases or sales of U.S. Government Securities for the six months ended April 30, 2003 NOTE 8 -- CAPITAL SHARE TRANSACTIONS The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in each fund's shares were as follows:
TCW GALILEO AGGRESSIVE GROWTH EQUITIES FUND SIX MONTHS ENDED I CLASS APRIL 30, 2003 YEAR ENDED (UNAUDITED) OCTOBER 31, 2002 -------------------------- ----------------------------- AMOUNT AMOUNT SHARES (IN THOUSANDS) SHARES (IN THOUSANDS) ---------- -------------- ------------- -------------- Shares Sold 3,680,757 $ 31,900 3,588,960 $ 35,186 Shares Redeemed (2,793,753) (22,521) (4,890,281) (46,372) ---------- -------- ---------- -------- Net Increase (Decrease) 887,004 $ 9,379 (1,301,321) $(11,186) ========== ======== ========== ======== TCW GALILEO AGGRESSIVE GROWTH EQUITIES FUND SIX MONTHS ENDED N CLASS APRIL 30, 2003 YEAR ENDED (UNAUDITED) OCTOBER 31, 2002 -------------------------- ----------------------------- AMOUNT AMOUNT SHARES (IN THOUSANDS) SHARES (IN THOUSANDS) ---------- -------------- ------------- -------------- Shares Sold 6,190,367 $ 51,644 7,940,400 $ 73,041 Shares Redeemed (4,276,759) (35,325) (7,183,716) (65,793) ---------- -------- ---------- -------- Net Increase 1,913,608 $ 16,319 756,684 $ 7,248 ========== ======== ========== ========
71 TCW GALILEO FUNDS, INC. -------------------------------------------------------------------------------- U.S. EQUITIES NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) NOTE 8 -- CAPITAL SHARE TRANSACTIONS (CONTINUED)
TCW GALILEO AGGRESSIVE GROWTH EQUITIES FUND K CLASS NOVEMBER 1, 2002 (COMMENCEMENT OF OFFERING OF K CLASS SHARES) THROUGH APRIL 30, 2003 (UNAUDITED) -------------------------- AMOUNT SHARES (IN THOUSANDS) ---------- -------------- Shares Sold 13 $ --(1) ---------- -------- Net Increase 13 $ --(1) ========== ========
(1) AMOUNT ROUNDS TO LESS THAN $1.
TCW GALILEO CONVERTIBLE SECURITIES FUND I CLASS SIX MONTHS ENDED APRIL 30, 2003 YEAR ENDED (UNAUDITED) OCTOBER 31, 2002 -------------------------- ----------------------------- AMOUNT AMOUNT SHARES (IN THOUSANDS) SHARES (IN THOUSANDS) ---------- -------------- ------------- -------------- Shares Sold 6,686,946 $ 48,197 3,729,389 $ 28,589 Shares Issued upon Reinvestment of Dividends 191,626 1,382 242,375 1,933 Shares Redeemed (2,366,492) (17,237) (3,040,213) (26,412) ---------- -------- ---------- -------- Net Increase 4,512,080 $ 32,342 931,551 $ 4,110 ========== ======== ========== ========
TCW GALILEO DIVERSIFIED VALUE FUND SIX MONTHS ENDED DECEMBER 1, 2001 N CLASS APRIL 30, 2003 THROUGH YEAR ENDED (UNAUDITED) OCTOBER 31, 2002 NOVEMBER 30, 2001 (1) ----------------------- --------------------------- ------------------------------ AMOUNT AMOUNT AMOUNT SHARES (IN THOUSANDS) SHARES (IN THOUSANDS) SHARES (2) (IN THOUSANDS) ------- -------------- ----------- -------------- -------------- -------------- Shares Sold 226,858 $1,932 26,464 $ 274 387 $ 4 Shares Issued upon Reinvestment of Dividends 3,817 32 -- -- 1,509 15 Shares Redeemed (26,986) (220) (72,590) (727) (123,641) (1,280) ------- ------ ------- ----- --------- ------- Net Increase (Decrease) 203,689 $1,744 (46,126) $(453) (121,745) $(1,261) ======= ====== ======= ===== ========= =======
(1) REPRESENTS ACTIVITIES FOR A, B, AND I CLASSES OF THE FORMER COWEN FUND. (2) ADJUSTED BASED ON THE EXCHANGE RATIO STATED IN NOTE 1.
TCW GALILEO FOCUSED LARGE CAP VALUE FUND N CLASS SIX MONTHS ENDED APRIL 30, 2003 YEAR ENDED (UNAUDITED) OCTOBER 31, 2002 -------------------------- ----------------------------- AMOUNT AMOUNT SHARES (IN THOUSANDS) SHARES (IN THOUSANDS) ---------- -------------- ------------- -------------- Shares Issued upon Reinvestment of Dividends 273 $ 2 -- $ -- ---------- -------- ---------- -------- Net Increase 273 $ 2 -- $ -- ========== ======== ========== ========
72 [ICON] -------------------------------------------------------------------------------- APRIL 30, 2003
TCW GALILEO GROWTH INSIGHTS FUND N CLASS SIX MONTHS ENDED APRIL 30, 2003 YEAR ENDED (UNAUDITED) OCTOBER 31, 2002 ------------------------ ---------------------------- AMOUNT AMOUNT SHARES (IN THOUSANDS) SHARES (IN THOUSANDS) -------- -------------- ------------ -------------- Shares Sold 6,150 $ 29 279,399 $ 1,835 Shares Redeemed (148,520) (676) (332,912) (2,144) -------- ------- -------- ------- Net (Decrease) (142,370) $ (647) (53,513) $ (309) ======== ======= ======== =======
TCW GALILEO INCOME + GROWTH FUND SIX MONTHS ENDED DECEMBER 1, 2001 N CLASS APRIL 30, 2003 THROUGH YEAR ENDED (UNAUDITED) OCTOBER 31, 2002 NOVEMBER 30, 2001 (1) ------------------------ ------------------------ ----------------------------- AMOUNT AMOUNT AMOUNT SHARES (IN THOUSANDS) SHARES (IN THOUSANDS) SHARES (2) (IN THOUSANDS) -------- -------------- -------- -------------- ------------- -------------- Shares Sold 181,452 $ 1,483 321,463 $ 3,208 391,325 $ 4,076 Shares Issued upon Reinvestment of Dividends 323,632 2,682 25,258 246 146,779 1,510 Shares Redeemed (224,827) (1,893) (833,148) (8,479) (645,932) (6,651) -------- ------- -------- ------- --------- ------- Net Increase (Decrease) 280,257 $ 2,272 (486,427) $(5,025) (107,828) $(1,065) ======== ======= ======== ======= ========= =======
(1) REPRESENTS ACTIVITIES FOR A, B, AND I CLASSES OF THE FORMER COWEN FUND. (2) ADJUSTED BASED ON THE EXCHANGE RATIO STATED IN NOTE 1.
TCW GALILEO LARGE CAP GROWTH FUND I CLASS SIX MONTHS ENDED APRIL 30, 2003 YEAR ENDED (UNAUDITED) OCTOBER 31, 2002 ------------------------ ---------------------------- AMOUNT AMOUNT SHARES (IN THOUSANDS) SHARES (IN THOUSANDS) -------- -------------- ------------ -------------- Shares Sold 362,248 $ 2,567 214,691 $ 1,843 Shares Redeemed (923,402) (6,304) (645,171) (5,750) -------- ------- -------- ------- Net (Decrease) (561,154) $(3,737) (430,480) $(3,907) ======== ======= ======== ======= TCW GALILEO LARGE CAP GROWTH FUND N CLASS SIX MONTHS ENDED APRIL 30, 2003 YEAR ENDED (UNAUDITED) OCTOBER 31, 2002 ------------------------ ---------------------------- AMOUNT AMOUNT SHARES (IN THOUSANDS) SHARES (IN THOUSANDS) -------- -------------- ------------ -------------- Shares Sold 431,937 $ 3,030 15,922 $ 119 Shares Redeemed (14,057) (96) (14,391) (118) -------- ------- -------- ------- Net Increase 417,880 $ 2,934 1,531 $ 1 ======== ======= ======== =======
73 TCW GALILEO FUNDS, INC. -------------------------------------------------------------------------------- U.S. EQUITIES NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) NOTE 8 -- CAPITAL SHARE TRANSACTIONS (CONTINUED)
TCW GALILEO LARGE CAP VALUE FUND I CLASS SIX MONTHS ENDED APRIL 30, 2003 YEAR ENDED (UNAUDITED) OCTOBER 31, 2002 -------------------------- ----------------------------- AMOUNT AMOUNT SHARES (IN THOUSANDS) SHARES (IN THOUSANDS) ---------- -------------- ------------- -------------- Shares Sold 963,640 $ 9,665 2,038,736 $ 23,621 Shares Issued upon Reinvestment of Dividends 82,377 811 61,063 711 Shares Redeemed (4,344,302) (39,588) (3,041,720) (34,834) ---------- -------- ---------- -------- Net (Decrease) (3,298,285) $(29,112) (941,921) $(10,502) ========== ======== ========== ======== TCW GALILEO LARGE CAP VALUE FUND N CLASS SIX MONTHS ENDED APRIL 30, 2003 YEAR ENDED (UNAUDITED) OCTOBER 31, 2002 -------------------------- ----------------------------- AMOUNT AMOUNT SHARES (IN THOUSANDS) SHARES (IN THOUSANDS) ---------- -------------- ------------- -------------- Shares Sold 139,573 $ 1,367 151,723 $ 1,760 Shares Issued upon Reinvestment of Dividends 1,275 12 -- -- Shares Redeemed (125,886) (1,235) (95,114) (1,098) ---------- -------- ---------- -------- Net Increase 14,962 $ 144 56,609 $ 662 ========== ======== ========== ======== TCW GALILEO LARGE CAP VALUE FUND K CLASS NOVEMBER 1, 2002 (COMMENCEMENT OF OFFERING OF K CLASS SHARES) THROUGH APRIL 30, 2003 (UNAUDITED) -------------------------- AMOUNT SHARES (IN THOUSANDS) ---------- -------------- Shares Sold 10 --(1) ---------- -------- Net Increase 10 $ --(1) ========== ========
(1) AMOUNT ROUNDS TO LESS THAN $1.
TCW GALILEO OPPORTUNITY FUND SIX MONTHS ENDED DECEMBER 1, 2001 I CLASS APRIL 30, 2003 THROUGH YEAR ENDED (UNAUDITED) OCTOBER 31, 2002 NOVEMBER 30, 2001 (1) ------------------------ ----------------------------- ------------------------------ AMOUNT AMOUNT AMOUNT SHARES (IN THOUSANDS) SHARES (IN THOUSANDS) SHARES (2) (IN THOUSANDS) -------- -------------- ------------- -------------- -------------- -------------- Shares Sold 354,948 $ 3,099 1,136,392 $11,796 1,369,182 $ 14,066 Shares Issued upon Reinvestment of Dividends -- -- -- -- 28,381 268 Shares Redeemed (277,096) (2,364) (361,312) (3,718) (1,359,616) (13,991) -------- ------- --------- ------- ---------- -------- Net Increase 77,852 $ 735 775,080 $ 8,078 37,947 $ 343 ======== ======= ========= ======= ========== ========
(1) REPRESENTS ACTIVITIES FOR THE I CLASS OF THE FORMER COWEN FUND. (2) ADJUSTED BASED ON THE EXCHANGE RATIO STATED IN NOTE 1. 74 [ICON] -------------------------------------------------------------------------------- APRIL 30, 2003
TCW GALILEO OPPORTUNITY FUND SIX MONTHS ENDED DECEMBER 1, 2001 N CLASS APRIL 30, 2003 THROUGH YEAR ENDED (UNAUDITED) OCTOBER 31, 2002 NOVEMBER 30, 2001 (1) ------------------------ ---------------------------- ----------------------------- AMOUNT AMOUNT AMOUNT SHARES (IN THOUSANDS) SHARES (IN THOUSANDS) SHARES (2) (IN THOUSANDS) -------- -------------- ------------ -------------- ------------- -------------- Shares Sold 29,210 $ 252 338,287 $ 3,618 121,461 $ 1,231 Shares Issued upon Reinvestment of Dividends -- -- -- -- 78,705 750 Shares Redeemed (212,709) (1,809) (476,247) (4,921) (388,607) (4,035) -------- ------- -------- ------- --------- ------- Net (Decrease) (183,499) $(1,557) (137,960) $(1,303) (188,441) $(2,054) ======== ======= ======== ======= ========= =======
(1) REPRESENTS ACTIVITIES FOR THE A AND B CLASSES OF THE FORMER COWEN FUND. (2) ADJUSTED BASED ON THE EXCHANGE RATIO STATED IN NOTE 1.
TCW GALILEO OPPORTUNITY FUND K CLASS NOVEMBER 1, 2002 (COMMENCEMENT OF OFFERING OF K CLASS SHARES) THROUGH APRIL 30, 2003 (UNAUDITED) --------------------------- AMOUNT SHARES (IN THOUSANDS) ----------- -------------- Shares Sold 11 $ --(1) ----------- --------- Net Increase 11 $ --(1) =========== =========
(1) AMOUNTS ROUND TO LESS THAN $1.
TCW GALILEO SELECT EQUITIES FUND I CLASS SIX MONTHS ENDED APRIL 30, 2003 YEAR ENDED (UNAUDITED) OCTOBER 31, 2002 --------------------------- ------------------------------ AMOUNT AMOUNT SHARES (IN THOUSANDS) SHARES (IN THOUSANDS) ----------- -------------- -------------- -------------- Shares Sold 23,865,444 $ 291,061 57,622,124 $ 841,143 Shares Redeemed (20,103,139) (282,106) (28,250,421) (386,255) ----------- --------- ----------- --------- Net Increase 3,762,305 $ 8,955 29,371,703 $ 454,888 =========== ========= =========== ========= TCW GALILEO SELECT EQUITIES FUND N CLASS SIX MONTHS ENDED APRIL 30, 2003 YEAR ENDED (UNAUDITED) OCTOBER 31, 2002 --------------------------- ------------------------------ AMOUNT AMOUNT SHARES (IN THOUSANDS) SHARES (IN THOUSANDS) ----------- -------------- -------------- -------------- Shares Sold 13,501,907 $ 162,912 25,380,697 $ 354,414 Shares Redeemed (5,587,849) (80,116) (14,470,936) (180,525) ----------- --------- ----------- --------- Net Increase 7,914,058 $ 82,796 10,909,761 $ 173,889 =========== ========= =========== =========
75 TCW GALILEO FUNDS, INC. -------------------------------------------------------------------------------- U.S. EQUITIES NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) NOTE 8 -- CAPITAL SHARE TRANSACTIONS (CONTINUED)
TCW GALILEO SELECT EQUITIES FUND K CLASS SIX MONTHS ENDED APRIL 30, 2003 YEAR ENDED (UNAUDITED) OCTOBER 31, 2002 -------------------------- ------------------------------ AMOUNT AMOUNT SHARES (IN THOUSANDS) SHARES (IN THOUSANDS) ---------- -------------- -------------- -------------- Shares Redeemed -- $ -- -- $ -- ---------- -------- ----------- --------- Net Increase -- $ -- -- $ -- ========== ======== =========== =========
TCW GALILEO SMALL CAP GROWTH FUND I CLASS SIX MONTHS ENDED APRIL 30, 2003 YEAR ENDED (UNAUDITED) OCTOBER 31, 2002 -------------------------- ------------------------------ AMOUNT AMOUNT SHARES (IN THOUSANDS) SHARES (IN THOUSANDS) ---------- -------------- -------------- -------------- Shares Sold 3,008,864 $ 29,918 10,712,394 $ 148,023 Shares Redeemed (3,492,818) (35,125) (13,139,842) (179,697) ---------- -------- ----------- --------- Net (Decrease) (483,954) $ (5,207) (2,427,448) $ (31,674) ========== ======== =========== ========= TCW GALILEO SMALL CAP GROWTH FUND N CLASS SIX MONTHS ENDED APRIL 30, 2003 YEAR ENDED (UNAUDITED) OCTOBER 31, 2002 -------------------------- ------------------------------ AMOUNT AMOUNT SHARES (IN THOUSANDS) SHARES (IN THOUSANDS) ---------- -------------- -------------- -------------- Shares Sold 3,548,910 $ 35,313 8,801,409 $ 124,916 Shares Redeemed (2,696,575) (26,853) (8,363,137) (115,541) ---------- -------- ----------- --------- Net Increase 852,335 $ 8,460 438,272 $ 9,375 ========== ======== =========== ========= TCW GALILEO SMALL CAP GROWTH FUND K CLASS NOVEMBER 1, 2002 (COMMENCEMENT OF OFFERING OF K CLASS SHARES) THROUGH APRIL 30, 2003 (UNAUDITED) -------------------------- AMOUNT SHARES (IN THOUSANDS) ---------- -------------- Shares Sold 10 $ --(1) ---------- -------- Net Increase 10 $ --(1) ========== ========
(1) AMOUNTS ROUND TO LESS THAN $1.
TCW GALILEO SMALL CAP VALUE FUND I CLASS SIX MONTHS ENDED APRIL 30, 2003 YEAR ENDED (UNAUDITED) OCTOBER 31, 2002 -------------------------- ------------------------------ AMOUNT AMOUNT SHARES (IN THOUSANDS) SHARES (IN THOUSANDS) ---------- -------------- -------------- -------------- Shares Sold 1,432,913 $ 13,017 1,972,162 $ 23,037 Shares Issued upon Reinvestment of Dividends -- -- 1,662 21 Shares Redeemed (465,544) (4,193) (967,876) (10,334) ---------- -------- ----------- --------- Net Increase 967,369 $ 8,824 1,005,948 $ 12,724 ========== ======== =========== =========
76 [ICON] -------------------------------------------------------------------------------- APRIL 30, 2003
MAY 1, 2002 TCW GALILEO SMALL CAP VALUE FUND (COMMENCEMENT OF N CLASS SIX MONTHS ENDED OFFERING OF APRIL 30, 2003 N CLASS SHARES) THROUGH (UNAUDITED) OCTOBER 31, 2002 -------------------------- ------------------------------ AMOUNT AMOUNT SHARES (IN THOUSANDS) SHARES (IN THOUSANDS) ---------- -------------- -------------- -------------- Shares Sold -- $ -- 7 $ --(1) ---------- --------- ----------- --------- Net Increase -- $ -- 7 $ --(1) ========== ========= =========== =========
(1) AMOUNTS ROUND TO LESS THAN $1.
TCW GALILEO SMALL CAP VALUE FUND K CLASS NOVEMBER 1, 2002 (COMMENCEMENT OF OFFERING OF K CLASS SHARES) THROUGH APRIL 30, 2003 (UNAUDITED) -------------------------- AMOUNT SHARES (IN THOUSANDS) ---------- -------------- Shares Sold 12 $ --(1) ---------- --------- Net Increase 12 $ --(1) ========== =========
(1) AMOUNTS ROUND TO LESS THAN $1.
TCW GALILEO TECHNOLOGY FUND N CLASS SIX MONTHS ENDED APRIL 30, 2003 YEAR ENDED (UNAUDITED) OCTOBER 31, 2002 -------------------------- ------------------------------ AMOUNT AMOUNT SHARES (IN THOUSANDS) SHARES (IN THOUSANDS) ---------- -------------- -------------- -------------- Shares Sold 25,240 $ 60 239,438 $ 545 Shares Redeemed (21,331) (49) (176,094) (461) ---------- --------- ----------- --------- Net Increase 3,909 $ 11 63,344 $ 84 ========== ========= =========== ========= TCW GALILEO VALUE OPPORTUNITIES FUND I CLASS SIX MONTHS ENDED APRIL 30, 2003 YEAR ENDED (UNAUDITED) OCTOBER 31, 2002 -------------------------- ------------------------------ AMOUNT AMOUNT SHARES (IN THOUSANDS) SHARES (IN THOUSANDS) ---------- -------------- -------------- -------------- Shares Sold 6,992,077 $ 96,470 32,689,977 $ 576,305 Shares Issued upon Reinvestment of Dividends -- -- 224,545 4,062 Shares Redeemed (8,079,279) (110,369) (33,725,910) (540,056) ---------- --------- ----------- --------- Net Increase (Decrease) (1,087,202) $ (13,899) (811,388) $ 40,311 ========== ========= =========== =========
77 TCW GALILEO FUNDS, INC. -------------------------------------------------------------------------------- U.S. EQUITIES NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) NOTE 8 -- CAPITAL SHARE TRANSACTIONS (CONTINUED)
TCW GALILEO VALUE OPPORTUNITIES FUND N CLASS SIX MONTHS ENDED APRIL 30, 2003 YEAR ENDED (UNAUDITED) OCTOBER 31, 2002 -------------------------- ------------------------------ AMOUNT AMOUNT SHARES (IN THOUSANDS) SHARES (IN THOUSANDS) ---------- -------------- -------------- -------------- Shares Sold 3,601,331 $ 49,473 13,214,952 $ 232,745 Shares Issued upon Reinvestment of Dividends -- -- 57,870 1,044 Shares Redeemed (4,138,402) (55,731) (10,430,871) (170,187) ---------- -------- ----------- --------- Net Increase (Decrease) (537,071) $ (6,258) 2,841,951 $ 63,602 ========== ======== =========== ========= TCW GALILEO VALUE OPPORTUNITIES FUND K CLASS NOVEMBER 1, 2002 (COMMENCEMENT OF OFFERING OF K CLASS SHARES) THROUGH APRIL 30, 2003 (UNAUDITED) -------------------------- AMOUNT SHARES (IN THOUSANDS) ---------- -------------- Shares Sold 8 $ --(1) ---------- -------- Net Increase 8 $ --(1) ========== ========
(1) AMOUNTS ROUND TO LESS THAN $1. NOTE 9 -- RESTRICTED SECURITIES The Funds are permitted to invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. There are no restricted securities (excluding 144A issues) at April 30, 2003. 78 TCW GALILEO AGGRESSIVE GROWTH EQUITIES FUND [ICON] -------------------------------------------------------------------------------- I CLASS FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, 2003 ------------------------------------------------------------ (UNAUDITED) 2002 2001 2000 1999 1998 -------------- ---------- ---------- ----------- ----------- ---------- Net Asset Value per Share, Beginning of Period $ 7.80 $ 10.14 $ 28.11 $ 22.29 $ 11.35 $ 9.40 ------- ------- ------- -------- -------- ------- INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net Investment (Loss) (3) (0.05) (0.11) (0.13) (0.25) (0.14) (0.11) Net Realized and Unrealized Gain (Loss) on Investments 1.70 (2.23) (16.92) 8.80 12.68 2.06 ------- ------- ------- -------- -------- ------- Total from Investment Operations 1.65 (2.34) (17.05) 8.55 12.54 1.95 ------- ------- ------- -------- -------- ------- LESS DISTRIBUTIONS: Distributions from Net Realized Gain -- -- (0.92) (2.73) (1.60) -- ------- ------- ------- -------- -------- ------- Net Asset Value per Share, End of Period $ 9.45 $ 7.80 $ 10.14 $ 28.11 $ 22.29 $ 11.35 ======= ======= ======= ======== ======== ======= Total Return 21.15% (2) (23.08)% (62.42)% 40.14% 121.34% 20.74% RATIOS/SUPPLEMENTAL DATA: Net Assets, End of Period (in thousands) $81,546 $60,328 $91,698 $254,452 $168,193 $84,904 Ratio of Expenses to Average Net Assets 1.25% (1) 1.22% 1.18% 1.13% 1.14% 1.17% Ratio of Net Investment (Loss) to Average Net Assets (1.08)% (1) (1.06)% (0.83)% (0.82)% (0.79)% (1.03)% Portfolio Turnover Rate 21.72% (2) 20.92% 25.47% 44.85% 64.12% 55.36%
(1) ANNUALIZED. (2) FOR THE SIX MONTHS ENDED APRIL 30, 2003 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (3) COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 79 TCW GALILEO AGGRESSIVE GROWTH EQUITIES FUND -------------------------------------------------------------------------------- N CLASS FINANCIAL HIGHLIGHTS
MARCH 1, 1999 (COMMENCEMENT OF SIX MONTHS OFFERING OF ENDED YEAR ENDED OCTOBER 31, N CLASS SHARES) APRIL 30, 2003 -------------------------------------- THROUGH (UNAUDITED) 2002 2001 2000 OCTOBER 31, 1999 -------------- ---------- ---------- ---------- ---------------- Net Asset Value per Share, Beginning of Period $ 7.69 $ 10.05 $ 28.01 $ 22.27 $ 16.07 ------- ------- ------- ------- ------- INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net Investment (Loss) (5) (0.06) (0.14) (0.18) (0.35) (0.12) Net Realized and Unrealized Gain (Loss) on Investments 1.68 (2.22) (16.86) 8.82 6.32 ------- ------- ------- ------- ------- Total from Investment Operations 1.62 (2.36) (17.04) 8.47 6.20 ------- ------- ------- ------- ------- LESS DISTRIBUTIONS: Distributions from Net Realized Gain -- -- (0.92) (2.73) -- ------- ------- ------- ------- ------- Net Asset Value per Share, End of Period $ 9.31 $ 7.69 $ 10.05 $ 28.01 $ 22.27 ======= ======= ======= ======= ======= Total Return 21.07% (4) (23.41)% (62.63)% 39.68% 38.58% (1) RATIOS/SUPPLEMENTAL DATA: Net Assets, End of Period (in thousands) $46,187 $23,443 $23,018 $43,578 $ 2,367 Ratio of Expenses to Average Net Assets 1.62% (2) 1.62% 1.57%(3) 1.48%(3) 1.47% (2)(3) Ratio of Net Investment (Loss) to Average Net Assets (1.45)% (2) (1.46)% (1.22)% (1.15)% (0.92)% (2) Portfolio Turnover Rate 21.72% (4) 20.92% 25.47% 44.85% 64.12% (1)
(1) FOR THE PERIOD MARCH 1, 1999 (COMMENCEMENT OF OFFERING OF N CLASS SHARES) THROUGH OCTOBER 31, 1999 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (2) ANNUALIZED. (3) THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO REDUCE ITS FEE, OR TO PAY THE OPERATING EXPENSES OF THE FUND, TO THE EXTENT NECESSARY TO LIMIT THE ANNUAL OPERATING EXPENSES OF THE FUND AS DISCLOSED IN NOTE 5 IN THE NOTES TO THE FINANCIAL STATEMENTS. HAD SUCH ACTION NOT BEEN TAKEN, TOTAL ANNUALIZED OPERATING EXPENSES, AS A PERCENTAGE OF NET ASSETS, WOULD HAVE BEEN 1.57% (THE REIMBURSEMENT IS LESS THAN 0.01%) AND 1.53% FOR THE YEARS ENDED OCTOBER 31, 2001 AND 2000, RESPECTIVELY, AND 6.83% FOR THE PERIOD MARCH 1, 1999 (COMMENCEMENT OF OFFERING OF N CLASS SHARES) THROUGH OCTOBER 31, 1999. (4) FOR THE SIX MONTHS ENDED APRIL 30, 2003 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (5) COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 80 TCW GALILEO AGGRESSIVE GROWTH EQUITIES FUND [ICON] -------------------------------------------------------------------------------- K CLASS FINANCIAL HIGHLIGHTS
NOVEMBER 1, 2002 (COMMENCEMENT OF OFFERING OF K CLASS SHARES) THROUGH APRIL 30, 2003 (UNAUDITED) ---------------- Net Asset Value per Share, Beginning of Period $ 7.80 ------- INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net Investment (Loss) (5) (0.05) Net Realized and Unrealized Gain on Investments 1.70 ------- Total from Investment Operations 1.65 ------- Net Asset Value per Share, End of Period $ 9.45 ======= Total Return 21.15% (1) RATIOS/SUPPLEMENTAL DATA: Net Assets, End of Period (in thousands) $ --(4) Ratio of Expenses to Average Net Assets 1.18% (2)(3) Ratio of Net Investment Income to Average Net Assets (1.10)% (2) Portfolio Turnover Rate 21.72% (1)
(1) FOR THE PERIOD NOVEMBER 1, 2002 (COMMENCEMENT OF OFFERING OF K CLASS SHARES) THROUGH APRIL 30, 2003 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (2) ANNUALIZED. (3) THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO REDUCE ITS FEE, OR TO PAY THE OPERATING EXPENSES OF THE FUND, TO THE EXTENT NECESSARY TO LIMIT THE ANNUAL OPERATING EXPENSES OF THE FUND AS DISCLOSED IN NOTE 5 IN THE NOTES TO THE FINANCIAL STATEMENTS. HAD SUCH ACTION NOT BEEN TAKEN, TOTAL ANNUALIZED OPERATING EXPENSES, AS A PERCENTAGE OF NET ASSETS, WOULD HAVE BEEN 6,942.07% FOR THE PERIOD NOVEMBER 1, 2002 (COMMENCEMENT OF OFFERING OF K CLASS SHARES) THROUGH APRIL 30, 2003. (4) AMOUNT ROUNDS TO LESS THAN $1 (IN THOUSANDS). (5) COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 81 TCW GALILEO CONVERTIBLE SECURITIES FUND -------------------------------------------------------------------------------- I CLASS FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, 2003 --------------------------------------------------- (UNAUDITED) 2002 (3) 2001 2000 1999 1998 -------------- ----------- -------- -------- -------- -------- Net Asset Value per Share, Beginning of Period $ 7.03 $ 8.98 $ 15.17 $ 12.66 $ 10.53 $ 11.41 ------- ------- ------- ------- ------- ------- INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net Investment Income (5) 0.19 0.44 0.44 0.40 0.41 0.37 Net Realized and Unrealized Gain (Loss) on Investments 0.63 (1.96) (4.31) 3.63 2.56 (0.08) ------- ------- ------- ------- ------- ------- Total from Investment Operations 0.82 (1.52) (3.87) 4.03 2.97 0.29 ------- ------- ------- ------- ------- ------- LESS DISTRIBUTIONS: Distributions from Net Investment Income (0.18) (0.43) (0.48) (0.45) (0.34) (0.42) Distributions from Net Realized Gain -- -- (1.84) (1.07) (0.50) (0.75) ------- ------- ------- ------- ------- ------- Total Distributions (0.18) -- (2.32) (1.52) (0.84) (1.17) ------- ------- ------- ------- ------- ------- Net Asset Value per Share, End of Period $ 7.67 $ 7.03 $ 8.98 $ 15.17 $ 12.66 $ 10.53 ======= ======= ======= ======= ======= ======= Total Return 11.84% (4) (17.54)% (28.37)% 33.59% 29.68% 2.69% RATIOS/SUPPLEMENTAL DATA: Net Assets, End of Period (in thousands) $85,705 $46,817 $51,388 $73,628 $49,830 $27,388 Ratio of Expenses to Average Net Assets 1.01% (1) 1.11% 1.04% 1.06% 1.03% 1.05%(2) Ratio of Net Investment Income to Average Net Assets 5.12% (1) 5.32% 4.05% 2.64% 3.53% 3.34% Portfolio Turnover Rate 57.06% (4) 146.10% 169.18% 193.02% 150.91% 139.65%
(1) ANNUALIZED. (2) THE INVESTMENT ADVISOR 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 1.05% OF NET ASSETS THROUGH DECEMBER 31, 1998. HAD SUCH ACTION NOT BEEN TAKEN, TOTAL ANNUALIZED OPERATING EXPENSES, AS A PERCENTAGE OF AVERAGE NET ASSETS, WOULD HAVE BEEN 1.16% FOR THE YEAR ENDED OCTOBER 31, 1998. (3) THE FUND HAS ADOPTED THE PROVISIONS OF THE AICPA AUDIT AND ACCOUNTING GUIDE FOR INVESTMENT COMPANIES AND BEGAN AMORTIZING PREMIUM AND DISCOUNT ON DEBT SECURITIES. THE EFFECT OF THIS CHANGE FOR THE YEAR ENDED OCTOBER 31, 2002 WAS TO DECREASE NET INVESTMENT INCOME PER SHARE BY LESS THAN $0.01, DECREASE NET REALIZED GAINS AND LOSSES PER SHARE BY LESS THAN $0.01 AND DECREASE THE RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS FROM 5.37% TO 5.32%. PER SHARES AND RATIOS/SUPPLEMENTAL DATA FOR PERIODS PRIOR TO NOVEMBER 1, 2001 HAVE NOT BEEN RESTATED TO REFLECT THIS CHANGE IN PRESENTATION. (4) FOR THE SIX MONTHS ENDED APRIL 30, 2003, AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (5) COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 82 TCW GALILEO DIVERSIFIED VALUE FUND [ICON] -------------------------------------------------------------------------------- N CLASS FINANCIAL HIGHLIGHTS
SIX MONTHS YEAR ENDED JANUARY 2, 1998 ENDED DECEMBER 1, 2001 NOVEMBER 30, (COMMENCEMENT OF APRIL 30, 2003 THROUGH ---------------------------- OPERATIONS) THROUGH (UNAUDITED) OCTOBER 31, 2002 2001 (7) 2000 (7) 1999 (7) NOVEMBER 30, 1998 (7) -------------- ---------------- -------- -------- -------- --------------------- Net Asset Value per Share, Beginning of Period $ 8.23 $10.16 $10.21 $ 9.31 $ 8.70 $ 9.12 ------ ------ ------ ------ ------ ------- INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net Investment Income 0.01(5) 0.07(5) 0.02 0.06 0.09 0.08 Net Realized and Unrealized Gain (Loss) on Investments 0.22 (1.99) (0.04) 0.89 0.61 (0.45) ------ ------ ------ ------ ------ ------- Total from Investment Operations 0.23 (1.92) (0.02) 0.95 0.70 (0.37) ------ ------ ------ ------ ------ ------- LESS DISTRIBUTIONS: Distributions from Net Investment Income (0.07) (0.01) (0.03) (0.05) (0.09) (0.05) ------ ------ ------ ------ ------ ------- Net Asset Value per Share, End of Period $ 8.39 $ 8.23 $10.16 $10.21 $ 9.31 $ 8.70 ====== ====== ====== ====== ====== ======= Total Return 2.79% (4) (18.87)% (1) (0.29)% 10.21% 8.14% (4.08)% (6) RATIOS/SUPPLEMENTAL DATA: Net Assets, End of Period (in thousands) $5,674 $3,888 $5,098 $6,305 $8,343 $12,044 Ratio of Expenses to Average Net Assets (3) 1.21% (2) 0.67% (2) 1.22% 1.22% 1.22% 1.11% (6) Ratio of Net Investment Income to Average Net Assets 0.30% (2) 0.76% (2) 0.20% 0.51% 0.96% 0.85% (6) Portfolio Turnover Rate 20.93% (4) 32.26% (1) 34% 83% 52% 67% (6)
(1) FOR THE PERIOD DECEMBER 1, 2001 THROUGH OCTOBER 31, 2002 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (2) ANNUALIZED. (3) THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO REDUCE ITS FEE, OR TO PAY THE OPERATING EXPENSES OF THE FUND, TO THE EXTENT NECESSARY TO LIMIT THE ORDINARY OPERATING EXPENSES OF THE FUND AS DISCLOSED IN NOTE 5 OF THE NOTES TO THE FINANCIAL STATEMENTS. HAD SUCH ACTIONS NOT BEEN TAKEN, TOTAL ANNUALIZED OPERATING EXPENSES, AS A PERCENTAGE OF AVERAGE NET ASSETS, WOULD HAVE BEEN 2.43% FOR THE SIX MONTHS ENDED APRIL 30, 2003, 3.21% FOR THE PERIOD DECEMBER 1, 2001 THROUGH OCTOBER 31, 2002, 3.04%, 2.88% AND 2.41% FOR THE YEARS ENDED NOVEMBER 30, 2001, 2000 AND 1999, RESPECTIVELY, AND 1.77% FOR THE PERIOD JANUARY 2, 1998 (COMMENCEMENT OF OPERATIONS) THROUGH NOVEMBER 30, 1998. (4) FOR THE SIX MONTHS ENDED APRIL 30, 2003 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (5) COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. (6) NOT ANNUALIZED. (7) REFLECTS THE A CLASS OF THE FORMER SG COWEN LARGE CAP VALUE FUND ADJUSTED FOR THE EXCHANGE. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 83 TCW GALILEO FOCUSED LARGE CAP VALUE FUND -------------------------------------------------------------------------------- N CLASS FINANCIAL HIGHLIGHTS
MARCH 1, 2001 SIX MONTHS (COMMENCEMENT ENDED YEAR ENDED OF OPERATIONS) APRIL 30, 2003 OCTOBER 31, THROUGH (UNAUDITED) 2002 OCTOBER 31, 2001 -------------- ----------- ---------------- Net Asset Value per Share, Beginning of Period $ 7.50 $ 8.80 $10.00 ------ ------ ------ INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net Investment Income (Loss) (5) 0.01 0.01 (0.03) Net Realized and Unrealized Gain (Loss) on Investments 0.07 (1.31) (1.17) ------ ------ ------ Total from Investment Operations 0.08 (1.30) (1.20) ------ ------ ------ LESS DISTRIBUTIONS: Distributions from Net Investment Income (0.02) -- -- ------ ------ ------ Net Asset Value per Share, End of Period $ 7.56 $ 7.50 $ 8.80 ====== ====== ====== Total Return 1.06% (4) (14.77)% (12.00)% (1) RATIOS/SUPPLEMENTAL DATA: Net Assets, End of Period (in thousands) $ 792 $ 784 $ 919 Ratio of Expenses to Average Net Assets (3) 1.40% (2) 1.38% 1.49% (2) Ratio of Net Investment Income (Loss) to Average Net Assets 0.31% (2) 0.06% (0.44)% (2) Portfolio Turnover Rate 34.44% (4) 71.03% 83.29% (1)
(1) FOR THE PERIOD MARCH 1, 2001 (COMMENCEMENT OF OPERATIONS) THROUGH OCTOBER 31, 2001 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (2) ANNUALIZED. (3) THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO REDUCE ITS FEE, OR TO PAY THE OPERATING EXPENSE OF THE FUND, TO THE EXTENT NECESSARY TO LIMIT THE ANNUAL ORDINARY OPERATING EXPENSES OF THE FUND AS DISCLOSED IN NOTE 5 OF THE NOTES TO THE FINANCIAL STATEMENTS. HAD SUCH ACTIONS NOT BEEN TAKEN, TOTAL ANNUALIZED OPERATING EXPENSES, AS A PERCENTAGE OF THE AVERAGE NET ASSETS, WOULD HAVE BEEN 6.20% FOR THE SIX MONTHS ENDED APRIL 30, 2003, 6.93% FOR THE YEAR ENDED OCTOBER 31, 2002 AND 10.29% FOR THE PERIOD MARCH 1, 2001 (COMMENCEMENT OF OPERATIONS) THROUGH OCTOBER 31, 2001. (4) FOR THE SIX MONTHS ENDED APRIL 30, 2003 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (5) COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 84 TCW GALILEO GROWTH INSIGHTS FUND [ICON] -------------------------------------------------------------------------------- N CLASS FINANCIAL HIGHLIGHTS
DECEMBER 1, 2000 SIX MONTHS (COMMENCEMENT ENDED YEAR ENDED OF OPERATIONS) APRIL 30, 2003 OCTOBER 31, THROUGH (UNAUDITED) 2002 OCTOBER 31, 2001 -------------- ----------- ---------------- Net Asset Value per Share, Beginning of Period $ 4.65 $ 6.36 $ 10.00 ------ ------- ------- INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net Investment (Loss) (5) (0.03) (0.09) (0.10) Net Realized and Unrealized Gain (Loss) on Investments 0.43 (1.62) (3.54) ------ ------- ------- Total from Investment Operations 0.40 (1.71) (3.64) ------ ------- ------- Net Asset Value per Share, End of Period $ 5.05 $ 4.65 $ 6.36 ====== ======= ======= Total Return 8.60% (4) (26.89)% (36.40)% (1) RATIOS/SUPPLEMENTAL DATA: Net Assets, End of Period (in thousands) $1,404 $ 1,953 $ 3,015 Ratio of Expenses to Average Net Assets (3) 1.74% (2) 1.66% 1.60% (2) Ratio of Net Investment (Loss) to Average Net Assets (1.28)% (2) (1.39)% (1.32)% (2) Portfolio Turnover Rate 21.42% (4) 167.56% 138.34% (1)
(1) FOR THE PERIOD DECEMBER 1, 2000 (COMMENCEMENT OF OPERATIONS) THROUGH OCTOBER 31, 2001 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (2) ANNUALIZED. (3) THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO REDUCE ITS FEE, OR TO PAY THE OPERATING EXPENSES OF THE FUND, TO THE EXTENT NECESSARY TO LIMIT THE ANNUAL ORDINARY OPERATING EXPENSES OF THE FUND AS DISCLOSED IN NOTE 5 OF THE NOTES TO THE FINANCIAL STATEMENTS. HAD SUCH ACTIONS NOT BEEN TAKEN, TOTAL ANNUALIZED OPERATING EXPENSES, AS A PERCENTAGE OF THE AVERAGE NET ASSETS, WOULD HAVE BEEN 3.43% FOR THE SIX MONTHS ENDED APRIL 30, 2003, 2.83% FOR THE YEAR ENDED OCTOBER 31, 2002 AND 4.63% FOR THE PERIOD DECEMBER 1, 2000 (COMMENCEMENT OF OPERATIONS) THROUGH OCTOBER 31, 2001. (4) FOR THE SIX MONTHS ENDED APRIL 30, 2003, AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (5) COMPUTED USING AVERAGE SHARES OUTSTANDING FOR THE PERIOD. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 85 TCW GALILEO INCOME + GROWTH FUND -------------------------------------------------------------------------------- N CLASS FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED DECEMBER 1, 2001 YEAR ENDED NOVEMBER 30, APRIL 30, 2003 THROUGH -------------------------------------------------------- (UNAUDITED) OCTOBER 31, 2002 2001 (6) 2000 (6) 1999 (6) 1998 (6) -------------- ---------------- ----------- ----------- ----------- ----------- Net Asset Value per Share, Beginning of Period $ 8.92 $ 10.63 $ 10.40 $ 8.35 $ 9.19 $ 10.83 ------- ------- ------- ------- ------- ------- INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net Investment Income 0.05(5) 0.11(5) 0.10 0.13 0.19 0.22 Net Realized and Unrealized Gain (Loss) on Investments 0.30 (1.27) 0.58 2.44 (0.28) 0.14 ------- ------- ------- ------- ------- ------- Total from Investment Operations 0.35 (1.16) 0.68 2.57 (0.09) 0.36 ------- ------- ------- ------- ------- ------- LESS DISTRIBUTIONS: Distributions from Net Investment Income (0.07) (0.11) (0.12) (0.15) (0.20) (0.22) Distributions from Net Realized Gain (0.91) (0.44) (0.33) (0.37) (0.55) (1.78) ------- ------- ------- ------- ------- ------- Total Distributions (0.98) (0.55) (0.45) (0.52) (0.75) (2.00) ------- ------- ------- ------- ------- ------- Net Asset Value per Share, End of Period $ 8.29 $ 8.92 $ 10.63 $ 10.40 $ 8.35 $ 9.19 ======= ======= ======= ======= ======= ======= Total Return 3.95% (4) (11.48)% (1) 6.72% 33.04% 3.98% (1.12)% RATIOS/SUPPLEMENTAL DATA: Net Assets, End of Period (in thousands) $27,151 $26,718 $34,578 $34,657 $34,116 $44,643 Ratio of Expenses to Average Net Assets 1.33% (2)(3) 1.15% (2)(3) 1.43% 1.36% 1.33% 1.20%(3) Ratio of Net Investment Income to Average Net Assets 1.19% (2) 1.18% (2) 0.98% 1.45% 2.18% 2.22% Portfolio Turnover Rate 17.24% (4) 60.23% (1) 1% 73% 71% 62%
(1) FOR THE PERIOD DECEMBER 1, 2001 THROUGH OCTOBER 31, 2002 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (2) ANNUALIZED. (3) THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO REDUCE ITS FEE, OR TO PAY THE OPERATING EXPENSES OF THE FUND, TO THE EXTENT NECESSARY TO LIMIT THE ANNUAL ORDINARY OPERATING EXPENSES OF THE FUND AS DISCLOSED IN NOTE 5 OF THE NOTES TO THE FINANCIAL STATEMENTS. HAD SUCH ACTIONS NOT BEEN TAKEN, TOTAL ANNUALIZED OPERATING EXPENSES, AS A PERCENTAGE OF AVERAGE NET ASSETS, WOULD HAVE BEEN 1.48% FOR THE SIX MONTHS ENDED APRIL 30, 2003, 1.53% FOR THE PERIOD DECEMBER 1, 2001 THROUGH OCTOBER 31, 2002 AND 1.25% FOR THE YEAR ENDED NOVEMBER 30, 1998. (4) FOR THE SIX MONTHS ENDED APRIL 30, 2003 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (5) COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. (6) REFLECTS THE A CLASS OF THE FORMER SG COWEN INCOME + GROWTH FUND ADJUSTED FOR THE EXCHANGE. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 86 TCW GALILEO LARGE CAP GROWTH FUND [ICON] -------------------------------------------------------------------------------- I CLASS FINANCIAL HIGHLIGHTS
JUNE 3, 1998 SIX MONTHS (COMMENCEMENT ENDED YEAR ENDED OCTOBER 31, OF OPERATIONS) APRIL 30, 2003 ---------------------------------------------------- THROUGH (UNAUDITED) 2002 2001 2000 1999 OCTOBER 31, 1998 -------------- ---------- ---------- ---------- ---------- ---------------- Net Asset Value per Share, Beginning of Period $ 6.71 $ 8.63 $ 17.97 $ 16.58 $ 11.18 $10.00 ------ ------- ------- ------- ------- ------ INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net Investment (Loss) (5) (0.01) (0.04) (0.09) (0.09) (0.09) -- Net Realized and Unrealized Gain (Loss) on Investments 0.62 (1.88) (7.85) 2.42 6.00 1.18 ------ ------- ------- ------- ------- ------ Total from Investment Operations 0.61 (1.92) (7.94) 2.33 5.91 1.18 ------ ------- ------- ------- ------- ------ LESS DISTRIBUTIONS: Distributions from Net Realized Gain -- -- (1.40) (0.94) (0.51) -- ------ ------- ------- ------- ------- ------ Net Asset Value per Share, End of Period $ 7.32 $ 6.71 $ 8.63 $ 17.97 $ 16.58 $11.18 ====== ======= ======= ======= ======= ====== Total Return 9.24% (4) (22.25)% (47.53)% 13.97% 54.59% 11.80% (1) RATIOS/SUPPLEMENTAL DATA: Net Assets, End of Period (in thousands) $3,675 $ 7,138 $12,889 $26,247 $23,164 $7,800 Ratio of Expenses to Average Net Assets 1.55% (2)(3) 1.49%(3) 1.45%(3) 1.04% 1.30% 0.91% (2)(3) Ratio of Net Investment (Loss) to Average Net Assets (0.32)% (2) (0.52)% (0.84)% (0.46)% (0.64)% (0.07)% (2) Portfolio Turnover Rate 48.35% (4) 33.31% 134.42% 113.62% 78.02% 50.76% (1)
(1) FOR THE PERIOD JUNE 3, 1998 (COMMENCEMENT OF OPERATIONS) THROUGH OCTOBER 31, 1998 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (2) ANNUALIZED. (3) THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO REDUCE ITS FEE, OR TO PAY THE OPERATING EXPENSES OF THE FUND, TO THE EXTENT NECESSARY TO LIMIT THE ANNUAL ORDINARY OPERATING EXPENSES OF THE FUND AS DISCLOSED IN NOTE 5 OF THE NOTES TO THE FINANCIAL STATEMENTS. HAD SUCH ACTIONS NOT BEEN TAKEN, TOTAL ANNUALIZED OPERATING EXPENSES, AS A PERCENTAGE OF THE AVERAGE NET ASSETS, WOULD HAVE BEEN 2.00% FOR THE SIX MONTHS ENDED APRIL 30, 2003, 1.79% AND 1.51% FOR THE YEARS ENDED OCTOBER 31, 2002 AND 2001, RESPECTIVELY, AND 2.53% FOR THE PERIOD JUNE 3, 1998 (COMMENCEMENT OF OPERATIONS) THROUGH OCTOBER 31, 1998. (4) FOR THE SIX MONTHS ENDED APRIL 30, 2003 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (5) COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 87 TCW GALILEO LARGE CAP GROWTH FUND -------------------------------------------------------------------------------- N CLASS FINANCIAL HIGHLIGHTS
MARCH 1, 1999 (COMMENCEMENT OF SIX MONTHS OFFERING OF ENDED YEAR ENDED OCTOBER 31, N CLASS SHARES) APRIL 30, 2003 --------------------------------- THROUGH (UNAUDITED) 2002 2001 2000 OCTOBER 31, 1999 -------------- --------- ---------- ---------- ---------------- Net Asset Value per Share, Beginning of Period $ 6.69 $ 8.60 $ 17.91 $ 16.60 $13.70 ------ ------ ------- ------- ------ INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net Investment (Loss) (5) (0.01) (0.04) (0.09) (0.17) (0.08) Net Realized and Unrealized Gain (Loss) on Investments 0.63 (1.87) (7.82) 2.42 2.98 ------ ------ ------- ------- ------ Total from Investment Operations 0.62 (1.91) (7.91) 2.25 2.90 ------ ------ ------- ------- ------ LESS DISTRIBUTIONS: Distributions from Net Realized Gain -- -- (1.40) (0.94) -- ------ ------ ------- ------- ------ Net Asset Value per Share, End of Period $ 7.31 $ 6.69 $ 8.60 $ 17.91 $16.60 ====== ====== ======= ======= ====== Total Return 9.27% (4) (22.21)% (47.55)% 13.58% 21.17% (1) RATIOS/SUPPLEMENTAL DATA: Net Assets, End of Period (in thousands) $3,277 $ 204 $ 249 $ 317 $ 86 Ratio of Expenses to Average Net Assets (3) 1.57% (2) 1.49% 1.45% 1.40% 1.46% (2) Ratio of Net Investment (Loss) to Average Net Assets (0.23)% (2) (0.48)% (0.82)% (0.86)% (0.74)% (2) Portfolio Turnover Rate 48.35% (4) 33.31% 134.42% 113.62% 78.02% (1)
(1) FOR THE PERIOD MARCH 1, 1999 (COMMENCEMENT OF OFFERING OF N CLASS SHARES) THROUGH OCTOBER 31, 1999 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (2) ANNUALIZED. (3) THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO REDUCE ITS FEE, OR TO PAY THE OPERATING EXPENSES OF THE FUND, TO THE EXTENT NECESSARY TO LIMIT THE ANNUAL ORDINARY OPERATING EXPENSES OF THE FUND AS DISCLOSED IN NOTE 5 OF THE NOTES TO THE FINANCIAL STATEMENTS. HAD SUCH ACTION NOT BEEN TAKEN, TOTAL ANNUALIZED OPERATING EXPENSES, AS A PERCENTAGE OF AVERAGE NET ASSETS, WOULD HAVE BEEN 9.12% FOR THE SIX MONTHS ENDED APRIL 30, 2003, 20.77%, 14.46% AND 13.96% FOR THE YEARS ENDED OCTOBER 31, 2002, 2001 AND 2000, RESPECTIVELY, AND 392.27% FOR THE PERIOD MARCH 1, 1999 (COMMENCEMENT OF OFFERING OF N CLASS SHARES) THROUGH OCTOBER 31, 1999. (4) FOR THE SIX MONTHS ENDED APRIL 30, 2003 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (5) COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 88 TCW GALILEO LARGE CAP VALUE FUND [ICON] -------------------------------------------------------------------------------- I CLASS FINANCIAL HIGHLIGHTS
JUNE 3, 1998 SIX MONTHS (COMMENCEMENT ENDED YEAR ENDED OCTOBER 31, OF OPERATIONS) APRIL 30, 2003 ------------------------------------------------- THROUGH (UNAUDITED) 2002 2001 2000 1999 OCTOBER 31, 1998 -------------- ----------- ----------- ----------- ---------- ---------------- Net Asset Value per Share, Beginning of Period $ 9.75 $ 10.99 $ 14.12 $ 11.82 $ 10.12 $10.00 ------- -------- -------- -------- ------- ------ INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net Investment Income (5) 0.05 0.09 0.08 0.10 0.09 0.04 Net Realized and Unrealized Gain (Loss) on Investments 0.20 (1.25) (3.12) 2.31 1.66 0.08 ------- -------- -------- -------- ------- ------ Total from Investment Operations 0.25 (1.16) (3.04) 2.41 1.75 0.12 ------- -------- -------- -------- ------- ------ LESS DISTRIBUTIONS: Distributions from Net Investment Income (0.10) (0.08) (0.09) (0.11) (0.05) -- ------- -------- -------- -------- ------- ------ Net Asset Value per Share, End of Period $ 9.90 $ 9.75 $ 10.99 $ 14.12 $ 11.82 $10.12 ======= ======== ======== ======== ======= ====== Total Return 2.57% (4) (10.68)% (21.62)% 20.46% 17.30% 1.20% (1) RATIOS/SUPPLEMENTAL DATA: Net Assets, End of Period (in thousands) $81,835 $112,716 $137,425 $134,388 $66,234 $7,505 Ratio of Expenses to Average Net Assets 0.79% (2) 0.72% 0.72% 0.79% 0.85% 0.55% (2)(3) Ratio of Net Investment Income to Average Net Assets 0.97% (2) 0.80% 0.67% 0.75% 0.79% 1.04% (2) Portfolio Turnover Rate 28.90% (4) 57.35% 82.83% 108.54% 142.36% 83.84% (1)
(1) FOR THE PERIOD JUNE 3, 1998 (COMMENCEMENT OF OPERATIONS) THROUGH OCTOBER 31, 1998 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (2) ANNUALIZED. (3) THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO REDUCE ITS FEE, OR TO PAY THE OPERATING EXPENSES OF THE FUND, TO THE EXTENT NECESSARY TO LIMIT THE ANNUAL ORDINARY OPERATING EXPENSES OF THE FUND AS DISCLOSED IN NOTE 5 OF THE NOTES TO THE FINANCIAL STATEMENTS. HAD SUCH ACTION NOT BEEN TAKEN, TOTAL ANNUALIZED OPERATING EXPENSES, AS A PERCENTAGE OF AVERAGE NET ASSETS, WOULD HAVE BEEN 2.48% FOR THE PERIOD JUNE 3, 1998 (COMMENCEMENT OF OPERATIONS) THROUGH OCTOBER 31, 1998. (4) FOR THE SIX MONTHS ENDED APRIL 30, 2003 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (5) COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 89 TCW GALILEO LARGE CAP VALUE FUND -------------------------------------------------------------------------------- N CLASS FINANCIAL HIGHLIGHTS
MARCH 1, 1999 (COMMENCEMENT OF SIX MONTHS OFFERING OF ENDED YEAR ENDED OCTOBER 31, N CLASS SHARES) APRIL 30, 2003 ---------------------------------- THROUGH (UNAUDITED) 2002 2001 2000 OCTOBER 31, 1999 -------------- ---------- ---------- ---------- ---------------- Net Asset Value per Share, Beginning of Period $ 9.72 $ 10.95 $ 14.10 $ 11.79 $ 11.07 ------ ------- ------- ------- ------- INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net Investment Income (6) 0.01 0.01 --(5) 0.02 0.06 Net Realized and Unrealized Gain (Loss) on Investments 0.21 (1.24) (3.12) 2.34 0.66 ------ ------- ------- ------- ------- Total from Investment Operations 0.22 (1.23) (3.12) 2.36 0.72 ------ ------- ------- ------- ------- LESS DISTRIBUTIONS: Distributions from Net Investment Income (0.04) -- (0.03) (0.05) -- ------ ------- ------- ------- ------- Net Asset Value per Share, End of Period $ 9.90 $ 9.72 $ 10.95 $ 14.10 $ 11.79 ====== ======= ======= ======= ======= Total Return 2.26% (4) (11.23)% (22.19)% 20.04% 6.51% (1) RATIOS/SUPPLEMENTAL DATA: Net Assets, End of Period (in thousands) $3,088 $ 2,885 $ 2,631 $ 3,829 $ 58 Ratio of Expenses to Average Net Assets (3) 1.40% (2) 1.38% 1.40% 1.28% 1.46% (2) Ratio of Net Investment Income (Loss) to Average Net Assets 0.31% (2) 0.13% (0.01)% 0.13% 0.71% (2) Portfolio Turnover Rate 28.90% (4) 57.35% 82.83% 108.54% 142.36% (1)
(1) FOR THE PERIOD MARCH 1, 1999 (COMMENCEMENT OF OFFERING OF N CLASS SHARES) THROUGH OCTOBER 31, 1999 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (2) ANNUALIZED. (3) THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO REDUCE ITS FEE, OR TO PAY THE OPERATING EXPENSES OF THE FUND, TO THE EXTENT NECESSARY TO LIMIT THE ANNUAL ORDINARY OPERATING EXPENSES OF THE FUND AS DISCLOSED IN NOTE 5 OF THE NOTES TO THE FINANCIAL STATEMENTS. HAD SUCH ACTIONS NOT BEEN TAKEN, TOTAL ANNUALIZED OPERATING EXPENSES, AS A PERCENTAGE OF AVERAGE NET ASSETS, WOULD HAVE BEEN 2.55% FOR THE SIX MONTHS ENDED APRIL 30, 2003, 2.32%, 1.90% AND 5.05% FOR THE YEARS ENDED OCTOBER 31, 2002, 2001 AND 2000, RESPECTIVELY, AND 163.61% FOR THE PERIOD MARCH 1, 1999 (COMMENCEMENT OF OFFERING N CLASS SHARES) THROUGH OCTOBER 31, 1999. (4) FOR THE SIX MONTHS ENDED APRIL 30, 2003 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (5) AMOUNT ROUNDS TO LESS THAN $0.01. (6) COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 90 TCW GALILEO LARGE CAP VALUE FUND [ICON] -------------------------------------------------------------------------------- K CLASS FINANCIAL HIGHLIGHTS
NOVEMBER 1, 2002 (COMMENCEMENT OF OFFERING OF K CLASS SHARES) THROUGH APRIL 30, 2003 (UNAUDITED) ---------------- Net Asset Value per Share, Beginning of Period $ 9.75 ------ (LOSS) FROM INVESTMENT OPERATIONS: Net Investment (Loss) (5) (0.05) Net Realized and Unrealized Gain on Investments 0.20 ------ Total from Investment Operations 0.15 ------ Net Asset Value per Share, End of Period $ 9.90 ====== Total Return 1.54% (1) RATIOS/SUPPLEMENTAL DATA: Net Assets, End of Period (in thousands) $ --(4) Ratio of Expenses to Average Net Assets 2.81% (2)(3) Ratio of Net Investment Income to Average Net Assets (1.12)% (2) Portfolio Turnover Rate 28.90% (1)
(1) FOR THE PERIOD NOVEMBER 1, 2002 (COMMENCEMENT OF OFFERING OF K CLASS SHARES) THROUGH APRIL 30, 2003 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (2) ANNUALIZED. (3) THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO REDUCE ITS FEE, OR TO PAY THE OPERATING EXPENSES OF THE FUND, TO THE EXTENT NECESSARY TO LIMIT THE ANNUAL ORDINARY OPERATING EXPENSES OF THE FUND AS DISCLOSED IN NOTE 5 OF THE NOTES TO THE FINANCIAL STATEMENTS. HAD SUCH ACTIONS NOT BEEN TAKEN, TOTAL ANNUALIZED OPERATING EXPENSES, AS A PERCENTAGE OF THE AVERAGE NET ASSETS, WOULD HAVE BEEN 7,582.80% FOR THE PERIOD NOVEMBER 1, 2002 (COMMENCEMENT OF OFFERING OF K CLASS SHARES) THROUGH APRIL 30, 2003. (4) AMOUNT ROUNDS TO LESS THAN $1 (IN THOUSANDS). (5) COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 91 TCW GALILEO OPPORTUNITY FUND -------------------------------------------------------------------------------- I CLASS FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED DECEMBER 1, 2001 YEAR ENDED NOVEMBER 30, APRIL 30, 2003 THROUGH -------------------------------------------------------- (UNAUDITED) OCTOBER 31, 2002 2001 (6) 2000 (6) 1999 (6) 1998 (6) -------------- ---------------- ----------- ----------- ----------- ----------- Net Asset Value per Share, Beginning of Period $ 8.70 $ 10.41 $ 9.30 $ 7.03 $ 5.91 $ 9.63 ------- ------- ------- ------ ------ ------- INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net Investment (Loss) (0.01) (5) (0.03) (5) (0.03) (0.02) (0.02) (0.02) Net Realized and Unrealized Gain (Loss) on Investments 0.35 (1.07) 1.43 2.29 1.14 (2.00) ------- ------- ------- ------ ------ ------- Total from Investment Operations 0.34 (1.10) 1.40 2.27 1.12 (2.02) ------- ------- ------- ------ ------ ------- LESS DISTRIBUTIONS: Distributions from Net Realized Gain -- (0.61) (0.29) -- -- (1.70) ------- ------- ------- ------ ------ ------- Net Asset Value per Share, End of Period $ 9.04 $ 8.70 $ 10.41 $ 9.30 $ 7.03 $ 5.91 ======= ======= ======= ====== ====== ======= Total Return 3.91% (4) (11.36)% (1) 15.38% 32.32% 19.04% (24.71)% RATIOS/SUPPLEMENTAL DATA: Net Assets, End of Period (in thousands) $16,439 $15,150 $10,055 $8,631 $9,339 $19,951 Ratio of Expenses to Average Net Assets 1.27% (2)(3) 1.15% (2)(3) 1.27% 1.30% 1.27% 1.14%(3) Ratio of Net Investment (Loss) to Average Net Assets (0.28)% (2) (0.27)% (2) (0.35)% (0.21)% (0.35)% (0.34)% Portfolio Turnover Rate 25.38% (4) 41.83% (1) 111% 164% 150% 124%
(1) FOR THE PERIOD DECEMBER 1, 2001 THROUGH OCTOBER 31, 2002 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (2) ANNUALIZED. (3) THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO REDUCE ITS FEE, OR TO PAY THE OPERATING EXPENSES OF THE FUND, TO THE EXTENT NECESSARY TO LIMIT THE ORDINARY OPERATING EXPENSES OF THE FUND AS DISCLOSED IN NOTE 5 OF THE NOTES TO THE FINANCIAL STATEMENTS. HAD SUCH ACTIONS NOT BEEN TAKEN, TOTAL ANNUALIZED OPERATING EXPENSES, AS A PERCENTAGE OF AVERAGE NET ASSETS, WOULD HAVE BEEN 1.31% FOR THE SIX MONTHS ENDED APRIL 30, 2003, 1.31% FOR THE PERIOD DECEMBER 1, 2001 THROUGH OCTOBER 31, 2002 AND 1.15% FOR THE YEAR ENDED NOVEMBER 30, 1998. (4) FOR THE SIX MONTHS ENDED APRIL 30, 2003 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (5) COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. (6) REFLECTS THE I CLASS OF THE FORMER SG COWEN OPPORTUNITY FUND ADJUSTED FOR THE EXCHANGE. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 92 TCW GALILEO OPPORTUNITY FUND [ICON] -------------------------------------------------------------------------------- N CLASS FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED DECEMBER 1, 2001 YEAR ENDED NOVEMBER 30, APRIL 30, 2003 THROUGH -------------------------------------------------------- (UNAUDITED) OCTOBER 31, 2002 2001 (6) 2000 (6) 1999 (6) 1998 (6) -------------- ---------------- ----------- ----------- ----------- ----------- Net Asset Value per Share, Beginning of Period $ 8.69 $ 10.43 $ 9.38 $ 7.11 $ 6.00 $ 9.83 ------- ------- ------- ------- ------- ------- INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net Investment (Loss) (0.02) (5) (0.04) (5) (0.08) (0.05) (0.04) (0.05) Net Realized and Unrealized Gain (Loss) on Investments 0.34 (1.09) 1.43 2.32 1.15 (2.03) ------- ------- ------- ------- ------- ------- Total from Investment Operations 0.32 (1.13) 1.35 2.27 1.11 (2.08) LESS DISTRIBUTIONS: Distributions from Net Realized Gain -- (0.61) (0.30) -- -- (1.75) ------- ------- ------- ------- ------- ------- Net Asset Value per Share, End of Period $ 9.01 $ 8.69 $ 10.43 $ 9.38 $ 7.11 $ 6.00 ======= ======= ======= ======= ======= ======= Total Return 3.68% (4) (11.46)% (1) 14.75% 31.88% 18.61% (24.89)% RATIOS/SUPPLEMENTAL DATA: Net Assets, End of Period (in thousands) $18,620 $19,551 $20,428 $19,700 $19,787 $27,978 Ratio of Expenses to Average Net Assets 1.48% (2)(3) 1.31% (2)(3) 1.59% 1.61% 1.59% 1.46%(3) Ratio of Net Investment (Loss) to Average Net Assets (0.49)% (2) (0.43)% (2) (0.68)% (0.52)% (0.67)% (0.67)% Portfolio Turnover Rate 25.38% (4) 41.83% (1) 111% 164% 150% 124%
(1) FOR THE PERIOD DECEMBER 1, 2001 THROUGH OCTOBER 31, 2002 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (2) ANNUALIZED. (3) THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO REDUCE ITS FEE, OR TO PAY THE OPERATING EXPENSES OF THE FUND, TO THE EXTENT NECESSARY TO LIMIT THE ORDINARY OPERATING EXPENSES OF THE FUND AS DISCLOSED IN NOTE 5 OF THE NOTES TO THE FINANCIAL STATEMENTS. HAD SUCH ACTIONS NOT BEEN TAKEN, TOTAL ANNUALIZED OPERATING EXPENSES, AS A PERCENTAGE OF AVERAGE NET ASSETS, WOULD HAVE BEEN 1.82% FOR THE SIX MONTHS ENDED APRIL 30, 2003, 1.78% FOR THE PERIOD DECEMBER 1, 2001 THROUGH OCTOBER 31, 2002 AND 1.47% FOR THE YEAR ENDED NOVEMBER 30, 1998. (4) FOR THE SIX MONTHS ENDED APRIL 30, 2003 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (5) COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. (6) REFLECTS THE A CLASS OF THE FORMER SG COWEN OPPORTUNITY FUND ADJUSTED FOR THE EXCHANGE. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 93 TCW GALILEO OPPORTUNITY FUND -------------------------------------------------------------------------------- K CLASS FINANCIAL HIGHLIGHTS
NOVEMBER 1, 2002 (COMMENCEMENT OF OFFERING OF K CLASS SHARES) THROUGH APRIL 30, 2003 (UNAUDITED) ---------------- Net Asset Value per Share, Beginning of Period $ 8.70 ------ INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net Investment (Loss) (5) (0.01) Net Realized and Unrealized Gain on Investments 0.35 ------ Total from Investment Operations 0.34 ------ Net Asset Value per Share, End of Period $ 9.04 ====== Total Return 3.91% (1) RATIOS/SUPPLEMENTAL DATA: Net Assets, End of Period (in thousands) $ --(4) Ratio of Expenses to Average Net Assets 1.14% (2)(3) Ratio of Net Investment Income to Average Net Assets (0.27)% (2) Portfolio Turnover Rate 25.38% (1)
(1) FOR THE PERIOD NOVEMBER 1, 2002 (COMMENCEMENT OF OFFERING OF K CLASS SHARES) THROUGH APRIL 30, 2003 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (2) ANNUALIZED. (3) THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO REDUCE ITS FEE, OR TO PAY THE OPERATING EXPENSES OF THE FUND, TO THE EXTENT NECESSARY TO LIMIT THE ORDINARY OPERATING EXPENSES OF THE FUND AS DISCLOSED IN NOTE 5 OF THE NOTES TO THE FINANCIAL STATEMENTS. HAD SUCH ACTIONS NOT BEEN TAKEN, TOTAL ANNUALIZED OPERATING EXPENSES, AS A PERCENTAGE OF AVERAGE NET ASSETS, WOULD HAVE BEEN 7,603.45% FOR THE PERIOD NOVEMBER 1, 2002 (COMMENCEMENT OF OFFERING OF K CLASS SHARES) THROUGH APRIL 30, 2003. (4) AMOUNT ROUNDS TO LESS THAN $1 (IN THOUSANDS). (5) COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 94 TCW GALILEO SELECT EQUITIES FUND [ICON] -------------------------------------------------------------------------------- I CLASS FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, 2003 ------------------------------------------------------------- (UNAUDITED) 2002 2001 2000 1999 1998 -------------- --------- --------- --------- --------- --------- Net Asset Value per Share, Beginning of Period $ 11.73 $ 14.45 $ 25.68 $ 20.69 $ 16.89 $ 19.29 ---------- -------- -------- -------- -------- -------- INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net Investment (Loss) (4) (0.03) (0.08) (0.09) (0.08) (0.07) (0.02) Net Realized and Unrealized Gain (Loss) on Investments 1.44 (2.64) (9.82) 5.99 6.32 3.38 ---------- -------- -------- -------- -------- -------- Total from Investment Operations 1.41 (2.72) (9.91) 5.91 6.25 3.36 ---------- -------- -------- -------- -------- -------- LESS DISTRIBUTIONS: Distributions from Net Realized Gain -- -- (1.32) (0.92) (2.45) (5.76) ---------- -------- -------- -------- -------- -------- Net Asset Value per Share, End of Period $ 13.14 $ 11.73 $ 14.45 $ 25.68 $ 20.69 $ 16.89 ========== ======== ======== ======== ======== ======== Total Return 12.02%(3) (18.82)% (40.36)% 29.38% 42.12% 23.83% RATIOS/SUPPLEMENTAL DATA: Net Assets, End of Period (in thousands) $1,151,437 $983,646 $787,637 $607,897 $288,546 $184,865 Ratio of Expenses to Average Net Assets 0.88%(1) 0.86% 0.87% 0.85%(2) 0.88% 0.86% Ratio of Net Investment (Loss) to Average Net Assets (0.48)%(1) (0.56)% (0.52)% (0.31)% (0.39)% (0.14)% Portfolio Turnover Rate 15.75%(3) 3.31% 12.25% 52.37% 48.29% 103.51%
(1) ANNUALIZED. (2) THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO REDUCE ITS FEE, OR TO PAY THE OPERATING EXPENSES OF THE FUND, TO THE EXTENT NECESSARY TO LIMIT THE ORDINARY OPERATING EXPENSES OF THE FUND AS DISCLOSED IN NOTE 5 OF THE NOTES TO THE FINANCIAL STATEMENTS. HAD SUCH ACTION NOT BEEN TAKEN, TOTAL ANNUALIZED OPERATING EXPENSES, AS A PERCENTAGE OF AVERAGE NET ASSETS, WOULD HAVE BEEN 0.86% FOR THE YEAR ENDED OCTOBER 31, 2000. (3) FOR THE SIX MONTHS ENDED APRIL 30, 2003, AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (4) COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 95 TCW GALILEO SELECT EQUITIES FUND -------------------------------------------------------------------------------- N CLASS FINANCIAL HIGHLIGHTS
MARCH 1, 1999 (COMMENCEMENT OF SIX MONTHS OFFERING OF ENDED YEAR ENDED OCTOBER 31, N CLASS SHARES) APRIL 30, 2003 -------------------------------------- THROUGH (UNAUDITED) 2002 2001 2000 OCTOBER 31, 1999 -------------- ---------- ---------- ---------- ---------------- Net Asset Value per Share, Beginning of Period $ 11.59 $ 14.32 $ 25.56 $ 20.67 $ 17.62 -------- -------- -------- -------- ------- INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net Investment (Loss) (5) (0.05) (0.12) (0.15) (0.16) (0.07) Net Realized and Unrealized Gain (Loss) on Investments 1.42 (2.61) (9.77) 5.97 3.12 -------- -------- -------- -------- ------- Total from Investment Operations 1.37 (2.73) (9.92) 5.81 3.05 -------- -------- -------- -------- ------- LESS DISTRIBUTIONS: Distributions from Net Realized Gain -- -- (1.32) (0.92) -- -------- -------- -------- -------- ------- Net Asset Value per Share, End of Period $ 12.96 $ 11.59 $ 14.32 $ 25.56 $ 20.67 ======== ======== ======== ======== ======= Total Return 11.82% (4) (19.06)% (40.58)% 28.92% 17.31% (1) RATIOS/SUPPLEMENTAL DATA: Net Assets, End of Period (in thousands) $417,396 $281,539 $191,638 $156,804 $19,111 Ratio of Expenses to Average Net Assets 1.23% (2) 1.18% 1.20% 1.17% 1.46% (2)(3) Ratio of Net Investment (Loss) to Average Net Assets (0.85)%(2) (0.88)% (0.84)% (0.64)% (0.53)% (2) Portfolio Turnover Rate 15.75% (4) 3.31% 12.25% 52.37% 48.29% (1)
(1) FOR THE PERIOD MARCH 1, 1999 (COMMENCEMENT OF OFFERING OF N CLASS SHARES) THROUGH OCTOBER 31, 1999 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (2) ANNUALIZED. (3) THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO REDUCE ITS FEE, OR TO PAY THE OPERATING EXPENSES OF THE FUND, TO THE EXTENT NECESSARY TO LIMIT THE ORDINARY OPERATING EXPENSES OF THE FUND AS DISCLOSED IN NOTE 5 OF THE NOTES TO THE FINANCIAL STATEMENTS. HAD SUCH ACTION NOT BEEN TAKEN, TOTAL ANNUALIZED OPERATING EXPENSES, AS A PERCENTAGE OF AVERAGE NET ASSETS, WOULD HAVE BEEN 2.66% FOR THE PERIOD MARCH 1, 1999 (COMMENCEMENT OF OFFERING OF N CLASS SHARES) THROUGH OCTOBER 31, 1999. (4) FOR THE SIX MONTHS ENDED APRIL 30, 2003, AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (5) COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 96 TCW GALILEO SELECT EQUITIES FUND [ICON] -------------------------------------------------------------------------------- K CLASS FINANCIAL HIGHLIGHTS
AUGUST 6, 2001 (COMMENCEMENT OF SIX MONTHS OFFERING OF ENDED YEAR ENDED K CLASS SHARES) APRIL 30, 2003 OCTOBER 31, THROUGH (UNAUDITED) 2002 OCTOBER 31, 2001 -------------- ----------- ---------------- Net Asset Value per Share, Beginning of Period $11.73 $ 14.45 $ 17.36 ------ ------- ------- INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net Investment (Loss) (6) (0.01) (0.07) (0.02) Net Realized and Unrealized Gain (Loss) on Investments 1.42 (2.65) (2.89) ------ ------- ------- Total from Investment Operations 1.41 (2.72) (2.91) ------ ------- ------- Net Asset Value per Share, End of Period $13.14 $ 11.73 $ 14.45 ====== ======= ======= Total Return 12.02% (4) (18.82)% (16.76)% (1) RATIOS/SUPPLEMENTAL DATA: Net Assets, End of Period (in thousands) $ --(5) $ --(5) $ --(5) Ratio of Expenses to Average Net Assets (3) 0.49% (2) 1.53% 1.46% (2) Ratio of Net Investment Income to Average Net Assets (0.17)% (2) (0.47)% (0.45)% (2) Portfolio Turnover Rate 15.75% (4) 3.31% 12.25% (1)
(1) FOR THE PERIOD AUGUST 6, 2001 (COMMENCEMENT OF OFFERING OF K CLASS SHARES) THROUGH OCTOBER 31, 2001 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (2) ANNUALIZED. (3) THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO REDUCE ITS FEE, OR TO PAY THE OPERATING EXPENSES OF THE FUND, TO THE EXTENT NECESSARY TO LIMIT THE ORDINARY OPERATING EXPENSES OF THE FUND AS DISCLOSED IN NOTE 5 OF THE NOTES TO THE FINANCIAL STATEMENTS. HAD SUCH ACTIONS NOT BEEN TAKEN, TOTAL ANNUALIZED OPERATING EXPENSES, AS A PERCENTAGE OF AVERAGE NET ASSETS, WOULD HAVE BEEN 12,087.81% FOR THE SIX MONTHS ENDED APRIL 30, 2003, 9,126.31% FOR THE YEAR ENDED OCTOBER 31, 2002 AND 8,797.65% FOR THE PERIOD AUGUST 6, 2001 (COMMENCEMENT OF OFFERING OF K CLASS SHARES) THROUGH OCTOBER 31, 2001. (4) FOR THE SIX MONTHS ENDED APRIL 30, 2003, AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (5) AMOUNTS ROUND TO LESS THAN $1 (IN THOUSANDS). (6) COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 97 TCW GALILEO SMALL CAP GROWTH FUND -------------------------------------------------------------------------------- I CLASS FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED YEAR ENDED OCTOBER 31, APRIL 30, 2003 -------------------------------------------------------------- (UNAUDITED) 2002 2001 2000 1999 1998 -------------- ---------- ----------- ----------- ----------- ----------- Net Asset Value per Share, Beginning of Period $ 10.23 $ 15.28 $ 37.71 $ 30.81 $ 16.48 $ 18.74 ------- ------- -------- -------- -------- -------- INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net Investment (Loss) (3) (0.06) (0.16) (0.15) (0.32) (0.22) (0.18) Net Realized and Unrealized Gain (Loss) on Investments 0.39 (4.89) (21.54) 9.29 14.82 (0.90) ------- ------- -------- -------- -------- -------- Total from Investment Operations 0.33 (5.05) (21.69) 8.97 14.60 (1.08) ------- ------- -------- -------- -------- -------- LESS DISTRIBUTIONS: Distributions from Net Realized Gain -- -- (0.74) (2.07) (0.27) (1.18) ------- ------- -------- -------- -------- -------- Net Asset Value per Share, End of Period $ 10.56 $ 10.23 $ 15.28 $ 37.71 $ 30.81 $ 16.48 ======= ======= ======== ======== ======== ======== Total Return 3.23% (2) (33.05)% (58.44)% 28.91% 89.63% (5.98)% RATIOS/SUPPLEMENTAL DATA: Net Assets, End of Period (in thousands) $68,527 $71,362 $143,672 $375,377 $240,792 $116,050 Ratio of Expenses to Average Net Assets 1.36% (1) 1.19% 1.14% 1.12% 1.14% 1.13% Ratio of Net Investment (Loss) to Average Net Assets (1.25)% (1) (1.09)% (0.64)% (0.74)% (0.94)% (0.95)% Portfolio Turnover Rate 26.64% (2) 29.01% 29.24% 50.94% 74.52% 63.67%
(1) ANNUALIZED. (2) FOR THE SIX MONTHS ENDED APRIL 30, 2003 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (3) COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 98 TCW GALILEO SMALL CAP GROWTH FUND [ICON] -------------------------------------------------------------------------------- N CLASS FINANCIAL HIGHLIGHTS
MARCH 1, 1999 (COMMENCEMENT OF SIX MONTHS OFFERING OF ENDED YEAR ENDED OCTOBER 31, N CLASS SHARES) APRIL 30, 2003 -------------------------------------- THROUGH (UNAUDITED) 2002 2001 2000 OCTOBER 31, 1999 -------------- ---------- ---------- ---------- ---------------- Net Asset Value per Share, Beginning of Period $ 10.13 $ 15.16 $ 37.54 $ 30.74 $20.62 ------- ------- ------- ------- ------ INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net Investment (Loss) (5) (0.07) (0.19) (0.21) (0.43) (0.20) Net Realized and Unrealized Gain (Loss) on Investments 0.38 (4.84) (21.43) 9.30 10.32 ------- ------- ------- ------- ------ Total from Investment Operations 0.31 (5.03) (21.64) 8.87 10.12 ------- ------- ------- ------- ------ LESS DISTRIBUTIONS: Distributions from Net Realized Gain -- -- (0.74) (2.07) -- ------- ------- ------- ------- ------ Net Asset Value per Share, End of Period $ 10.44 $ 10.13 $ 15.16 $ 37.54 $30.74 ======= ======= ======= ======= ====== Total Return 3.06% (4) (33.22)% (58.54)% 28.56% 49.08% (1) RATIOS/SUPPLEMENTAL DATA: Net Assets, End of Period (in thousands) $63,184 $52,656 $72,209 $92,621 $ 671 Ratio of Expenses to Average Net Assets 1.57% (2) 1.47% 1.44% 1.42%(3) 1.53% (2)(3) Ratio of Net Investment (Loss) to Average Net Assets (1.46)% (2) (1.37)% (0.95)% (1.02)% (1.15)% (2) Portfolio Turnover Rate 26.64% (4) 29.01% 29.24% 50.94% 74.52% (1)
(1) FOR THE PERIOD MARCH 1, 1999 (COMMENCEMENT OF OFFERING OF N CLASS SHARES) THROUGH OCTOBER 31, 1999 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (2) ANNUALIZED. (3) THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO REDUCE ITS FEE, OR TO PAY THE OPERATING EXPENSES OF THE FUND, TO THE EXTENT NECESSARY TO LIMIT THE ANNUAL ORDINARY OPERATING EXPENSES OF THE FUND AS DISCLOSED IN NOTE 5 OF THE NOTES TO THE FINANCIAL STATEMENTS. HAD SUCH ACTION NOT BEEN TAKEN, TOTAL ANNUALIZED OPERATING EXPENSES, AS A PERCENTAGE OF AVERAGE NET ASSETS, WOULD HAVE BEEN 1.44% FOR THE YEAR ENDED OCTOBER 31, 2000 AND 35.14% FOR THE PERIOD MARCH 1, 1999 (COMMENCEMENT OF OFFERING OF N CLASS SHARES) THROUGH OCTOBER 31, 1999. (4) FOR THE SIX MONTHS ENDED APRIL 30, 2003 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (5) COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 99 TCW GALILEO SMALL CAP GROWTH FUND -------------------------------------------------------------------------------- K CLASS FINANCIAL HIGHLIGHTS
NOVEMBER 1, 2002 (COMMENCEMENT OF OFFERING OF K CLASS SHARES) THROUGH APRIL 30, 2003 (UNAUDITED) ---------------- Net Asset Value per Share, Beginning of Period $10.23 ------ INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net Investment (Loss) (5) (0.06) Net Realized and Unrealized Gain on Investments 0.39 ------ Total from Investment Operations 0.33 ------ Net Asset Value per Share, End of Period $10.56 ====== Total Return 3.23% (1) RATIOS/SUPPLEMENTAL DATA: Net Assets, End of Period (in thousands) $ --(4) Ratio of Expenses to Average Net Assets 1.23% (2)(3) Ratio of Net Investment Income to Average Net Assets (1.23)% (2) Portfolio Turnover Rate 26.64% (1)
(1) FOR THE PERIOD NOVEMBER 1, 2002 (COMMENCEMENT OF OFFERING OF K CLASS SHARES) THROUGH APRIL 30, 2003 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (2) ANNUALIZED. (3) THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO REDUCE ITS FEE, OR TO PAY THE OPERATING EXPENSES OF THE FUND, TO THE EXTENT NECESSARY TO LIMIT THE ANNUAL ORDINARY OPERATING EXPENSES OF THE FUND AS DISCLOSED IN NOTE 5 OF THE NOTES TO THE FINANCIAL STATEMENTS. HAD SUCH ACTION NOT BEEN TAKEN, TOTAL ANNUALIZED OPERATING EXPENSES, AS A PERCENTAGE OF AVERAGE NET ASSETS, WOULD HAVE BEEN 7,635.26% FOR THE PERIOD NOVEMBER 1, 2002 (COMMENCEMENT OF OFFERING OF K CLASS SHARES) THROUGH APRIL 30, 2003. (4) AMOUNT ROUNDS TO LESS THAN $1 (IN THOUSANDS). (5) COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 100 TCW GALILEO SMALL CAP VALUE FUND [ICON] -------------------------------------------------------------------------------- I CLASS FINANCIAL HIGHLIGHTS
JUNE 14, 2000 SIX MONTHS YEAR ENDED (COMMENCEMENT ENDED OCTOBER 31, OF OPERATIONS) APRIL 30, 2003 ----------------------- THROUGH (UNAUDITED) 2002 2001 OCTOBER 31, 2000 -------------- ---------- --------- ---------------- Net Asset Value per Share, Beginning of Period $ 8.43 $ 10.99 $10.97 $10.00 ------- ------- ------ ------ INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net Investment (Loss) (6) (0.05) (0.13) (0.10) -- Net Realized and Unrealized Gain (Loss) on Investments 1.03 (2.40) 0.36 0.97 ------- ------- ------ ------ Total from Investment Operations 0.98 (2.53) 0.26 0.97 ------- ------- ------ ------ LESS DISTRIBUTIONS: Distributions from Net Realized Gain -- (0.03) (0.24) -- ------- ------- ------ ------ Net Asset Value per Share, End of Period $ 9.41 $ 8.43 $10.99 $10.97 ======= ======= ====== ====== Total Return 11.63% (4) (23.12)% 2.43% 9.70% (1) RATIOS/SUPPLEMENTAL DATA: Net Assets, End of Period (in thousands) $22,153 $11,688 $4,174 $1,078 Ratio of Expenses to Average Net Assets (3) 1.56% (2) 1.56% 1.58% 1.55% (2) Ratio of Net Investment (Loss) to Average Net Assets (1.11)% (2) (1.14)% (0.85)% --% (2)(5) Portfolio Turnover Rate 39.70% (4) 72.35% 77.09% 32.18% (1)
(1) FOR THE PERIOD JUNE 14, 2000 (COMMENCEMENT OF OPERATIONS) THROUGH OCTOBER 31, 2000 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (2) ANNUALIZED. (3) THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO REDUCE ITS FEE, OR TO PAY THE OPERATING EXPENSES OF THE FUND, TO THE EXTENT NECESSARY TO LIMIT THE ANNUAL ORDINARY OPERATING EXPENSES OF THE FUND AS DISCLOSED IN NOTE 5 OF THE NOTES TO THE FINANCIAL STATEMENTS. HAD SUCH ACTIONS NOT BEEN TAKEN, TOTAL ANNUALIZED OPERATING EXPENSES, AS A PERCENTAGE OF AVERAGE NET ASSETS, WOULD HAVE BEEN 1.59% FOR THE SIX MONTHS ENDED APRIL 30, 2003, 1.89% AND 6.09% FOR THE YEARS ENDED OCTOBER 31, 2002 AND 2001 AND 7.52% FOR THE PERIOD JUNE 14, 2000 (COMMENCEMENT OF OPERATIONS) THROUGH OCTOBER 31, 2000. (4) FOR THE SIX MONTHS ENDED APRIL 30, 2003, AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (5) RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS IS LESS THAN 0.01%. (6) COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 101 TCW GALILEO SMALL CAP VALUE FUND -------------------------------------------------------------------------------- N CLASS FINANCIAL HIGHLIGHTS
MAY 1, 2002 (COMMENCEMENT OF SIX MONTHS OFFERING OF ENDED N CLASS SHARES) APRIL 30, 2003 THROUGH (UNAUDITED) OCTOBER 31, 2002 -------------- ---------------- Net Asset Value per Share, Beginning of Period $ 8.43 $ 14.11 ------ ------- INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net Investment (Loss) (6) (0.06) (0.05) Net Realized and Unrealized Gain (Loss) on Investments 1.04 (5.63) ------ ------- Total from Investment Operations 0.98 (5.68) ------ ------- Net Asset Value per Share, End of Period $ 9.41 $ 8.43 ====== ======= Total Return 11.62% (4) (40.26)% (1) RATIOS/SUPPLEMENTAL DATA: Net Assets, End of Period (in thousands) $ --(5) $ --(5) Ratio of Expenses to Average Net Assets (3) 1.58% (2) 1.48% (2) Ratio of Net Investment (Loss) to Average Net Assets (1.43)% (2) (0.89)% (2) Portfolio Turnover Rate 39.70% (4) 72.35% (1)
(1) FOR THE PERIOD MAY 1, 2002 (COMMENCEMENT OF OFFERING OF N CLASS SHARES) THROUGH OCTOBER 31, 2002 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (2) ANNUALIZED. (3) THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO REDUCE ITS FEE, OR TO PAY THE OPERATING EXPENSES OF THE FUND, TO THE EXTENT NECESSARY TO LIMIT THE ANNUAL ORDINARY OPERATING EXPENSES OF THE FUND AS DISCLOSED IN NOTE 5 OF THE NOTES TO THE FINANCIAL STATEMENTS. HAD SUCH ACTIONS NOT BEEN TAKEN, TOTAL ANNUALIZED OPERATING EXPENSES, AS A PERCENTAGE OF AVERAGE NET ASSETS, WOULD HAVE BEEN 13,335.42% FOR THE SIX MONTHS ENDED APRIL 30, 2003 AND 10,222.16% FOR THE PERIOD MAY 1, 2002 (COMMENCEMENT OF OFFERING OF N CLASS SHARES) THROUGH OCTOBER 31, 2002. (4) FOR THE SIX MONTHS ENDED APRIL 30, 2003, AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (5) AMOUNT ROUNDS TO LESS THAN $1 (IN THOUSANDS). (6) COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 102 TCW GALILEO SMALL CAP VALUE FUND [ICON] -------------------------------------------------------------------------------- K CLASS FINANCIAL HIGHLIGHTS
NOVEMBER 1, 2002 (COMMENCEMENT OF OFFERING OF K CLASS SHARES) THROUGH APRIL 30, 2003 (UNAUDITED) ---------------- Net Asset Value per Share, Beginning of Period $ 8.43 ------ INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net Investment (Loss) (5) (0.05) Net Realized and Unrealized Gain on Investments 1.03 ------ Total from Investment Operations 0.98 ------ Net Asset Value per Share, End of Period $ 9.41 ====== Total Return 11.62% (1) RATIOS/SUPPLEMENTAL DATA: Net Assets, End of Period (in thousands) $ --(4) Ratio of Expenses to Average Net Assets 1.52% (2)(3) Ratio of Net Investment Income to Average Net Assets (1.14)% (2) Portfolio Turnover Rate 39.70% (1)
(1) FOR THE PERIOD NOVEMBER 1, 2002 (COMMENCEMENT OF OFFERING OF K CLASS SHARES) THROUGH APRIL 30, 2003 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (2) ANNUALIZED. (3) THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO REDUCE ITS FEE, OR TO PAY THE OPERATING EXPENSES OF THE FUND, TO THE EXTENT NECESSARY TO LIMIT THE ANNUAL ORDINARY OPERATING EXPENSES OF THE FUND AS DISCLOSED IN NOTE 5 OF THE NOTES TO THE FINANCIAL STATEMENTS. HAD SUCH ACTION NOT BEEN TAKEN, TOTAL ANNUALIZED OPERATING EXPENSES, AS A PERCENTAGE OF AVERAGE NET ASSETS, WOULD HAVE BEEN 7,046.16% FOR THE PERIOD NOVEMBER 1, 2002 (COMMENCEMENT OF OFFERING OF K CLASS SHARES) THROUGH APRIL 30, 2003. (4) AMOUNT ROUNDS TO LESS THAN $1 (IN THOUSANDS). (5) COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 103 TCW GALILEO TECHNOLOGY FUND -------------------------------------------------------------------------------- N CLASS FINANCIAL HIGHLIGHTS
NOVEMBER 1, 2000 SIX MONTHS (COMMENCEMENT ENDED YEAR ENDED OF OPERATIONS) APRIL 30, 2003 OCTOBER 31, THROUGH (UNAUDITED) 2002 OCTOBER 31, 2001 -------------- ----------- ---------------- Net Asset Value per Share, Beginning of Period $ 2.11 $ 3.49 $ 10.00 ------ ------- ------- INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net Investment (Loss) (4) (0.02) (0.06) (0.07) Net Realized and Unrealized Gain (Loss) on Investments 0.40 (1.32) (6.44) ------ ------- ------- Total from Investment Operations 0.38 (1.38) (6.51) ------ ------- ------- Net Asset Value per Share, End of Period $ 2.49 $ 2.11 $ 3.49 ====== ======= ======= Total Return 18.01% (3) (39.54)% (65.10)% RATIOS/SUPPLEMENTAL DATA: Net Assets, End of Period (in thousands) $ 811 $ 677 $ 899 Ratio of Expenses to Average Net Assets (2) 2.04% (1) 1.88% 1.70% Ratio of Net Investment (Loss) to Average Net Assets (1.98)% (1) (1.87)% (1.27)% Portfolio Turnover Rate 14.49% (3) 66.34% 41.01%
(1) ANNUALIZED. (2) THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO REDUCE ITS FEE, OR TO PAY THE OPERATING EXPENSES OF THE FUND, TO THE EXTENT NECESSARY TO LIMIT THE ORDINARY OPERATING EXPENSES OF THE FUND AS DISCLOSED IN NOTE 5 OF THE NOTES TO THE FINANCIAL STATEMENTS. HAD SUCH ACTION NOT BEEN TAKEN, TOTAL ANNUALIZED OPERATING EXPENSES, AS A PERCENTAGE OF AVERAGE NET ASSETS, WOULD HAVE BEEN 10.85% FOR THE SIX MONTHS ENDED APRIL 30, 2003, 12.93% FOR THE YEAR ENDED OCTOBER 31, 2002 AND 20.84% FOR THE PERIOD NOVEMBER 1, 2000 (COMMENCEMENT OF OPERATIONS) THROUGH OCTOBER 31, 2001. (3) FOR THE SIX MONTHS ENDED APRIL 30, 2003 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (4) COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 104 TCW GALILEO VALUE OPPORTUNITIES FUND [ICON] -------------------------------------------------------------------------------- I CLASS FINANCIAL HIGHLIGHTS
NOVEMBER 3, 1997 SIX MONTHS (COMMENCEMENT ENDED YEAR ENDED OCTOBER 31, OF OPERATIONS) APRIL 30, 2003 -------------------------------------------------- THROUGH (UNAUDITED) 2002 2001 2000 1999 OCTOBER 31, 1998 -------------- ---------- ---------- --------- --------- ---------------- Net Asset Value per Share, Beginning of Period $ 13.05 $ 15.94 $ 14.87 $ 11.23 $ 9.24 $ 10.00 -------- -------- -------- ------- ------- ------- INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net Investment Income (Loss) (4) (0.01) (0.06) (0.01) 0.05 (0.01) -- Net Realized and Unrealized Gain (Loss) on Investments 1.56 (2.67) 2.38 4.80 2.00 (0.75) -------- -------- -------- ------- ------- ------- Total from Investment Operations 1.55 (2.73) 2.37 4.85 1.99 (0.75) -------- -------- -------- ------- ------- ------- LESS DISTRIBUTIONS: Distributions from Net Investment Income -- -- (0.06) -- -- (0.01) Distributions from Net Realized Gain -- (0.16) (1.24) (1.21) -- -- -------- -------- -------- ------- ------- ------- Total Distributions -- (0.16) (1.30) (1.21) -- (0.01) -------- -------- -------- ------- ------- ------- Net Asset Value per Share, End of Period $ 14.60 $ 13.05 $ 15.94 $ 14.87 $ 11.23 $ 9.24 ======== ======== ======== ======= ======= ======= Total Return 11.88% (3) (17.39)% 17.56% 47.19% 21.54% (7.49)% (1) RATIOS/SUPPLEMENTAL DATA: Net Assets, End of Period (in thousands) $290,928 $274,297 $347,960 $58,644 $30,238 $28,634 Ratio of Expenses to Average Net Assets 1.02% (2) 0.95% 1.02% 1.15% 1.18% 1.16% (2) Ratio of Net Investment Income (Loss) to Average Net Assets (0.17)%(2) (0.34)% (0.04)% 0.41% (0.10)% 0.05% (2) Portfolio Turnover Rate 30.17% (3) 84.85% 75.80% 137.41% 140.07% 97.30% (1)
(1) FOR THE PERIOD NOVEMBER 3, 1997 (COMMENCEMENT OF OPERATIONS) THROUGH OCTOBER 31, 1998 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (2) ANNUALIZED. (3) FOR THE SIX MONTHS ENDED APRIL 30, 2003 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (4) COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 105 TCW GALILEO VALUE OPPORTUNITIES FUND -------------------------------------------------------------------------------- N CLASS FINANCIAL HIGHLIGHTS
NOVEMBER 1, 2000 (COMMENCEMENT OF SIX MONTHS OFFERING OF ENDED YEAR ENDED N CLASS SHARES) APRIL 30, 2003 OCTOBER 31, THROUGH (UNAUDITED) 2002 OCTOBER 31, 2001 -------------- ----------- ---------------- Net Asset Value per Share, Beginning of Period $ 12.99 $ 15.91 $ 14.85 ------- ------- ------- INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net Investment (Loss) (4) (0.03) (0.10) (0.10) Net Realized and Unrealized Gain (Loss) on Investments 1.54 (2.66) 2.42 ------- ------- ------- Total from Investment Operations 1.51 (2.76) 2.32 ------- ------- ------- LESS DISTRIBUTIONS: Distributions from Net Investment Income -- -- (0.02) Distributions from Net Realized Gain -- (0.16) (1.24) ------- ------- ------- Total Distributions -- (0.16) (1.26) ------- ------- ------- Net Asset Value per Share, End of Period $ 14.50 $ 12.99 $ 15.91 ======= ======= ======= Total Return 11.62% (3) (17.61)% 17.00% RATIOS/SUPPLEMENTAL DATA: Net Assets, End of Period (in thousands) $84,770 $82,884 $56,327 Ratio of Expenses to Average Net Assets 1.34% (1) 1.23% 1.49% (2) Ratio of Net Investment (Loss) to Average Net Assets (0.49)% (1) (0.62)% (0.62)% Portfolio Turnover Rate 30.17% (3) 84.85% 75.80%
(1) ANNUALIZED. (2) THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO REDUCE ITS FEE, OR TO PAY THE OPERATING EXPENSES OF THE FUND, TO THE EXTENT NECESSARY TO LIMIT THE ANNUAL ORDINARY OPERATING EXPENSES OF THE FUND AS DISCLOSED IN NOTE 5 OF THE NOTES TO THE FINANCIALS. HAD SUCH ACTIONS NOT BEEN TAKEN, TOTAL ANNUALIZED OPERATING EXPENSES, AS A PERCENTAGE OF THE AVERAGE NET ASSETS, WOULD HAVE BEEN 1.62% FOR THE YEAR NOVEMBER 1, 2000 (COMMENCEMENT OF OFFERING OF N CLASS SHARES) THROUGH OCTOBER 31, 2001. (3) FOR THE SIX MONTHS ENDED APRIL 30, 2003 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (4) COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 106 TCW GALILEO VALUE OPPORTUNITIES FUND [ICON] -------------------------------------------------------------------------------- K CLASS FINANCIAL HIGHLIGHTS
NOVEMBER 1, 2002 (COMMENCEMENT OF OFFERING OF K CLASS SHARES) THROUGH APRIL 30, 2003 (UNAUDITED) ---------------- Net Asset Value per Share, Beginning of Period $13.05 ------ INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net Investment (Loss) (5) (0.01) Net Realized and Unrealized Gain on Investments 1.56 ------ Total from Investment Operations 1.55 ------ Net Asset Value per Share, End of Period $14.60 ====== Total Return 11.88% (1) RATIOS/SUPPLEMENTAL DATA: Net Assets, End of Period (in thousands) $ --(4) Ratio of Expenses to Average Net Assets 0.94% (2)(3) Ratio of Net Investment Income to Average Net Assets (0.10)% (2) Portfolio Turnover Rate 30.17% (1)
(1) FOR THE PERIOD FROM NOVEMBER 1, 2002 (COMMENCEMENT OF OFFERING OF K CLASS SHARES) THROUGH APRIL 30, 2003 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS. (2) ANNUALIZED. (3) THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO REDUCE ITS FEE, OR TO PAY THE OPERATING EXPENSES OF THE FUND, TO THE EXTENT NECESSARY TO LIMIT THE ANNUAL ORDINARY OPERATING EXPENSES OF THE FUND AS DISCLOSED IN NOTE 5 OF THE NOTES TO THE FINANCIALS. HAD SUCH ACTIONS NOT BEEN TAKEN, TOTAL ANNUALIZED OPERATING EXPENSES, AS A PERCENTAGE OF THE AVERAGE NET ASSETS, WOULD HAVE BEEN 7,162.03% FOR THE PERIOD NOVEMBER 1, 2002 (COMMENCEMENT OF OFFERING OF K CLASS SHARES) THROUGH APRIL 30, 2003. (4) AMOUNT ROUNDS TO LESS THAN $1 (IN THOUSANDS). (5) COMPUTED USING AVERAGE SHARES OUTSTANDING THROUGHOUT THE PERIOD. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 107 [GRAPHIC] TCW GALILEO FUNDS APRIL 30, 2003 SHAREHOLDER INFORMATION DIRECTORS AND OFFICERS MARC I. STERN Director and Chairman of the Board SAMUEL P. BELL Director RICHARD W. CALL Director MATTHEW K. FONG Director JOHN A. GAVIN Director PATRICK C. HADEN Director THOMAS E. LARKIN, JR. Director CHARLES A. PARKER Director ALVIN R. ALBE, JR. President and Chief Executive Officer CHARLES W. BALDISWIELER Senior Vice President MICHAEL E. CAHILL Senior Vice President, General Counsel and Assistant Secretary DENNIS J. MCCARTHY Senior Vice President RON R. REDELL Senior Vice President PHILIP K. HOLL Secretary and Associate General Counsel HILARY G.D. LORD Assistant Secretary DAVID S. DEVITO Treasurer and Chief Financial Officer GEORGE WINN Assistant Treasurer INVESTMENT ADVISOR TCW INVESTMENT MANAGEMENT COMPANY 865 South Figueroa Street Los Angeles, California 90017 (213) 244-0000 CUSTODIAN & ADMINISTRATOR INVESTORS BANK & TRUST COMPANY 200 Clarendon Street Boston, Massachusetts 02116 TRANSFER AGENT PFPC INC. 400 Bellevue Parkway Wilmington, Delaware 19809 DISTRIBUTOR TCW BROKERAGE SERVICES 865 South Figueroa Street Los Angeles, California 90017 INDEPENDENT AUDITORS DELOITTE & TOUCHE, LLP 350 South Grand Avenue Los Angeles, California 90071 GALsarEQ43003 ITEM 1. REPORT TO STOCKHOLDERS. [Filed Herewith] ITEM 2. CODE OF ETHICS. Not applicable. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable. ITEM 5-6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES. (a) The Chief Executive Officer and Chief Financial Officer have concluded that the registrant's disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940) provide reasonable assurances that material information relating to the registrant is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report. (b) There were no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of the evaluation described above, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 10. EXHIBITS. (a) Not applicable. (b) EX-99.CERT - Section 302 Certifications (filed herewith). EX-99.906CERT - Section 906 Certification (filed herewith). SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) TCW Galileo Funds, Inc. By (Signature and Title) /s/ Alvin R. Albe, Jr. --------------------------- Alvin R. Albe, Jr. Chief Executive Officer Date June 19, 2003 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title) /s/ Alvin R. Albe, Jr. --------------------------- Alvin R. Albe, Jr. Chief Executive Officer Date June 19, 2003 By (Signature and Title) /s/ David S. DeVito --------------------------- David S. DeVito Chief Financial Officer Date June 19, 2003