<Page>
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.
<Page>
TCW GALILEO FUNDS
APRIL 30, 2003
[GRAPHIC]
SEMI-ANNUAL REPORT
INTERNATIONAL
ASIA PACIFIC EQUITIES
EMERGING MARKETS EQUITIES
EMERGING MARKETS INCOME
EUROPEAN GROWTH EQUITIES
SELECT INTERNATIONAL
GROWTH EQUITIES
[TCW GALILEO FUNDS INC. LOGO]
TCW GALILEO FUNDS INC.
THE POWER OF INDEPENDENT THINKING(TM)
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TCW GALILEO FUNDS, INC.
--------------------------------------------------------------------------------
INTERNATIONAL
TABLE OF CONTENTS APRIL 30, 2003
<Table>
<S> <C>
Letter To Shareholders............................ 1
Performance Summary............................... 2
Schedules of Investments:
TCW Galileo Asia Pacific Equities Fund.......... 3
TCW Galileo Emerging Markets Equities Fund...... 6
TCW Galileo Emerging Markets Income Fund........ 10
TCW Galileo European Growth Equities Fund....... 14
TCW Galileo Select International Growth Equities
Fund.......................................... 17
Statements of Assets and Liabilities.............. 20
Statements of Operations.......................... 21
Statements of Changes in Net Assets............... 22
Notes to Financial Statements..................... 24
Financial Highlights.............................. 32
</Table>
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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
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TCW GALILEO FUNDS, INC.
--------------------------------------------------------------------------------
INTERNATIONAL
PERFORMANCE SUMMARY (UNAUDITED)
<Table>
<Caption>
TOTAL RETURN
ANNUALIZED AS OF APRIL 30, 2003
-----------------------------------------------------
NAV 1-YEAR 5-YEAR 10-YEAR SINCE INCEPTION INCEPTION DATE
-------- -------- ---------- ---------- --------------- --------------
<S> <C> <C> <C> <C> <C> <C>
TCW Galileo Asia Pacific
Equities Fund -- I Class $6.08 (25.31)% 2.84% 3.16% (1) 3.56% (1) 04/01/93(2)
TCW Galileo Emerging Markets
Equities Fund -- I Class $6.44 (16.52)% (5.02)% N/A 0.21% (1) 06/01/93(2)
TCW Galileo Emerging Markets
Income Fund -- I Class $9.26 22.92% 9.33% (1) N/A 11.20% (1) 09/04/96(2)
TCW Galileo European Growth
Equities Fund -- I Class $6.63 (23.09)% (9.53)% N/A (4.61)% 11/01/97
TCW Galileo Select
International Growth
Equities Fund -- I Class $6.74 (20.52)% (7.39)% N/A (0.07)% (1) 12/01/93(2)
TCW Galileo Select
International Growth
Equities Fund -- N Class $6.74 N/A% N/A N/A 2.74% (3) 02/01/03
TCW Galileo Select
International Growth
Equities Fund -- K Class $6.74 N/A% N/A N/A (2.60)% (4) 11/01/02
</Table>
(1) PERFORMANCE DATA INCLUDES THE PERFORMANCE OF THE PREDECESSOR LIMITED
PARTNERSHIP FOR PERIODS BEFORE 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) INCEPTION DATE OF THE PREDECESSOR LIMITED PARTNERSHIP.
(3) PERFORMANCE FOR THE PERIOD FROM FEBRUARY 1, 2002 (COMMENCEMENT OF OFFERING
OF N CLASS SHARES) THROUGH APRIL 30, 2003.
(4) PERFORMANCE FOR THE PERIOD FROM NOVEMBER 1, 2002 (COMMENCEMENT OF OFFERING
OF K CLASS SHARES) THROUGH APRIL 30, 2003.
2
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TCW GALILEO ASIA PACIFIC EQUITIES FUND
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SCHEDULE OF INVESTMENTS (UNAUDITED) APRIL 30, 2003
<Table>
<Caption>
NUMBER OF
SHARES COMMON STOCK VALUE
--------- ------------ ----------
<C> <S> <C>
CHINA (COST: $101,860) (1.8% OF NET
ASSETS)
220,000 Tsingtao Brewery Company, Limited $ 143,864
----------
HONG KONG (27.5%)
90,000 ASM Pacific Technology, Limited 223,296
23,000 Cheung Kong Holdings, Limited 127,105
828,000 China Pharmaceutical Enterprise and
Investment Corporation, Limited 230,913
130,000 Cosco Pacific, Limited 111,680
590,000 Denway Motors, Limited 194,799
10,000 Hang Seng Bank, Limited 99,051
37,970 Hutchison Whampoa, Limited 211,295
158,000 Johnson Electric Holdings, Limited 170,175
108,000 Singamas Container Holdings, Limited 31,504
27,370 Sun Hung Kai Properties, Limited 128,444
138,000 Techtronic Industries Company, Limited 173,406
178,000 Texwinca Holdings, Limited 136,940
124,000 Wharf Holdings, Limited 217,026
320,000 Zhejiang Expressway Company, Limited 123,092
----------
TOTAL HONG KONG (COST: $2,232,726) 2,178,726
----------
INDIA (COST: $99,999) (1.5%)
7,380 Ranbaxy Laboratories, Limited (144A)
(GDR) 115,349*
----------
MALAYSIA (5.3%)
8,000 British American Tobacco BHD 80,000
48,000 Gamuda BHD 65,684
32,000 Genting BHD 101,053
18,000 O.Y.L. Industries BHD 109,421
26,000 Uchi Technologies BHD 61,237
----------
TOTAL MALAYSIA (COST: $427,069) 417,395
----------
SINGAPORE (9.8%)
18,000 DBS Group Holdings, Limited 88,196
20,000 Fraser & Neave, Limited 90,110
120,000 SembCorp Logistics, Limited 120,973
6,000 Singapore Press Holdings, Limited 55,756
335,000 Unisteel Technology, Limited 119,805
45,000 United Overseas Bank, Limited 263,573
5,000 Venture Corporation, Limited 41,676
----------
TOTAL SINGAPORE (COST: $789,840) 780,089
----------
SOUTH KOREA (28.6%)
11,710 Hyundai Motor Company, Limited 276,607
8,025 Kookmin Bank 225,228
4,000 LG Chemical, Limited 132,675
4,000 LG Electronics, Inc. 137,942
4,044 Pohang Iron & Steel Company, Limited 341,160
3,300 Samsung Electronics Company, Limited 828,395
</Table>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
3
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TCW GALILEO ASIA PACIFIC EQUITIES FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------- ----------
<C> <S> <C>
SOUTH KOREA (CONTINUED)
1,780 Shinsegae Department Stores $ 212,428
6,000 You Eal Electronics Company, Limited 114,568
----------
TOTAL SOUTH KOREA (COST: $2,215,195) 2,269,003
----------
TAIWAN (15.7%)
48,000 Accton Technology Corporation (GDR) 64,800**
128,000 Compal Electronics, Incorporated 138,061
90,000 Formosa Plastics Corporation 111,015
18,000 Hon Hai Precision Industry Company,
Limited 56,282
23,710 Hon Hai Precision Industry Company,
Limited (GDR) 152,930
60,000 Nien Made Enterprise Company, Limited 126,506**
29,000 Quanta Computer, Incorporated 50,746
85,000 Synnex Technology International
Corporation 99,971
100,000 Taiwan Hon Chuan Enterprise Company,
Limited 133,104
37,000 Taiwan Semiconductor Manufacturing
Company, Limited (ADR) 309,690**
----------
TOTAL TAIWAN (COST: $1,315,924) 1,243,105
----------
THAILAND (2.8%)
30,000 Bangkok Bank Public Company, Limited 41,987**
228,400 Bangkok Expressway Public Company,
Limited 79,383
200,000 Land and Houses Public Company, Limited 35,923
20,500 Siam Cement Public Company, Limited 60,730
----------
TOTAL THAILAND (COST: $212,811) 218,023
----------
TOTAL COMMON STOCK (COST: $7,395,424)
(93.0%) 7,365,554
----------
<Caption>
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS (COST: $549,487) (6.9%)
--------- ----------------------------------------------
<C> <S> <C>
$549,487 Investors Bank & Trust Depository Reserve, 1%,
due 05/01/03 549,487
----------
TOTAL INVESTMENTS (COST: $7,944,911) (99.9%) 7,915,041
EXCESS OF OTHER ASSETS OVER LIABILITIES (0.1%) 5,536
----------
NET ASSETS (100.0%) $7,920,577
==========
</Table>
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 $115,349 OR 1.5% OF NET
ASSETS.
** NON-INCOME PRODUCING.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
4
<Page>
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INVESTMENTS BY INDUSTRY (UNAUDITED) APRIL 30, 2003
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
-------------------------------------------------- -------------
<S> <C>
Automotive 5.9%
Banking 8.0
Beverages, Food & Tobacco 4.0
Building Materials 0.8
Chemicals 3.1
Commercial Services 1.4
Communications 1.4
Computers & Information 7.1
Containers & Packaging 2.1
Electrical Equipment 2.1
Electronics 21.1
Environmental Controls 1.4
Financial Services 1.1
Heavy Machinery 3.6
Home Construction, Furnishings & Appliances 1.6
Industrial--Diversified 2.7
Lodging 1.3
Media--Broadcasting & Publishing 0.7
Metals 4.3
Pharmaceuticals 4.4
Real Estate 6.4
Retailers 2.7
Textiles, Clothing & Fabrics 1.7
Transportation 4.1
Short-Term Investments 6.9
--------
Total 99.9%
========
</Table>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
5
<Page>
TCW GALILEO EMERGING MARKETS EQUITIES FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
<Table>
<Caption>
NUMBER OF
SHARES EQUITY SECURITIES VALUE
---------- ----------------- -----------
<C> <S> <C>
COMMON STOCK
BRAZIL (8.7% OF NET ASSETS)
2,154,257 Banco Itau Holding Financiera, S.A. $ 144,115
1,300 Banco Itau Holding Financiera, S.A.
(ADR) 43,290
7,200 Brasil Telecom Participacoes, S.A. (ADR) 254,880+
11,000 Companhia Brasileira de Distribuicao
Grupo Pao de Acucar (ADR) 159,500
8,000 Companhia Siderurgica Nacional, S.A.
(ADR) 184,080+
15,000 Petroleo Brasileiro, S.A. (PETROBRAS)
(ADR) 278,250
11,400 Telemig Celular Participacoes, S.A.
(ADR) 214,320+
8,000 Votorantim Celulose e Papel, S.A. (ADR) 152,000
-----------
TOTAL BRAZIL (COST: $1,432,888) 1,430,435
-----------
CHILE (1.2%)
9,000 Compania de Telecomunicaciones de Chile,
S.A., Series A (ADR) 103,230*
9,000 Distribucion y Servicio D&S, S.A. (ADR) 94,410
-----------
TOTAL CHILE (COST: $205,574) 197,640
-----------
CHINA (COST: $437,773) (2.8%)
2,000,000 PetroChina Company, Limited 456,466
-----------
GREAT BRITAIN (COST: $236,987) (1.4%)
163,000 Old Mutual PLC 239,248
-----------
HONG KONG (8.3%)
210,000 China Telecom (Hong Kong), Limited 421,397
665,896 Cosco Pacific, Limited 572,057
400,000 Huaneng Power International,
Incorporated 379,533
-----------
TOTAL HONG KONG (COST: $2,123,229) 1,372,987
-----------
HUNGARY (COST: $113,208) (1.6%)
24,000 OTP Bank Rt. 257,666*
-----------
INDIA (4.1%)
8,000 Infosys Technologies, Limited (ADR) 328,800+
30,000 Reliance Industries, Limited (144A)
(GDR) 341,700**
-----------
TOTAL INDIA (COST: $800,706) 670,500
-----------
ISRAEL (2.0%)
43,450 Bank Hapoalim, Limited 75,171*
70,000 Bezeq Israeli Telecommunications
Corporation, Limited 79,710
83 Koor Industries, Limited 1,341*
3,700 Teva Pharmaceutical Industries, Limited
(ADR) 172,790
-----------
TOTAL ISRAEL (COST: $269,802) 329,012
-----------
MALAYSIA (4.0%)
275,000 Sime Darby BHD 361,842
125,000 Tenaga Nasional BHD 291,118
-----------
TOTAL MALAYSIA (COST: $748,419) 652,960
-----------
</Table>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
6
<Page>
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APRIL 30, 2003
<Table>
<Caption>
NUMBER OF
SHARES VALUE
---------- -----------
<C> <S> <C>
MEXICO (6.1%)
11,000 America Movil, S.A. de C.V. (ADR) $ 184,470
4,500 Cemex, S.A. de C.V. (ADR) 102,825+
5,900 Coca Cola Femsa, S.A. de C.V. (ADR) 125,375
200,000 Grupo Financiero BBVA Bancomer, S.A. de
C.V. 173,922*
7,700 Telefonos de Mexico, S.A. de C.V. (ADR) 232,617
31,000 TV Azteca, S.A. de C.V. (ADR) 179,800
-----------
TOTAL MEXICO (COST: $1,057,875) 999,009
-----------
RUSSIA (4.8%)
6,675 Lukoil (ADR) 460,575
6,820 Mobile Telesystems (ADR) 327,360* +
-----------
TOTAL RUSSIA (COST: $522,165) 787,935
-----------
SOUTH AFRICA (11.5%)
56,400 Anglo American PLC 816,976
24,000 Barloworld, Limited 164,424
16,000 Harmony Gold Mining Company, Limited
(ADR) 168,000
32,847 Liberty Life Association of Africa,
Limited 212,170
22,552 Nedcor, Limited 303,739
288,838 Sanlam, Limited (Foreign) 239,365
-----------
TOTAL SOUTH AFRICA (COST: $2,266,261) 1,904,674
-----------
SOUTH KOREA (23.4%)
15,000 Hyundai Motor Company, Limited (GDR) 180,000
18,000 Kookmin Bank 505,185
50,000 Korea Electric Power Corporation (ADR) 472,000
15,000 KT Corporation (ADR) 303,600
33,000 KT&G Corporation (144A) (GDR) 249,150**
7,202 Pohang Iron & Steel Company, Limited 607,576
4,756 Samsung Electronics Company, Limited 1,193,893
2,500 SK Telecom Company, Limited 347,737
-----------
TOTAL SOUTH KOREA (COST: $3,631,498) 3,859,141
-----------
TAIWAN (10.8%)
40,000 Benq Corporation (GDR) 203,200
48,000 Compal Electronics, Incorporated (GDR) 260,640
40,000 Fubon Financial Holding Company, Limited
(144A) (GDR) 273,092**
78,539 Taiwan Semiconductor Manufacturing
Company, Limited (ADR) 657,371*
120,750 United Microelectronics Corporation
(ADR) 391,230*
-----------
TOTAL TAIWAN (COST: $2,831,751) 1,785,533
-----------
THAILAND (COST: $263,644) (2.3%)
275,000 Bangkok Bank Public Company, Limited 384,885*
-----------
TOTAL COMMON STOCK (COST: $16,941,780)
(93.0%) 15,328,091
-----------
</Table>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
7
<Page>
TCW GALILEO EMERGING MARKETS EQUITIES FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
<Table>
<Caption>
NUMBER OF
SHARES PREFERRED STOCK VALUE
---------- --------------- -----------
<C> <S> <C>
BRAZIL (3.5%)
7,300 Companhia Vale do Rio Doce (ADR) $ 192,720
101,400 Companhia Vale do Rio Doce
(Non-tradeable shares) --*
22,000 Tele Norte Leste Participacoes, S.A.
(TELEMAR) (ADR) 238,700+
8,205 Uniao de Bancos Brasileiros, S.A.
(UNIBANCO) (GDR) 148,921+
-----------
TOTAL PREFERRED STOCK (COST: $600,859)
(3.5%) 580,341
-----------
TOTAL EQUITY SECURITIES (COST:
$17,542,639) (96.5%) 15,908,432
-----------
<Caption>
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS
---------- ----------------------
<C> <S> <C>
$ 87,995 Bank of Montreal, 1.34%, due 05/01/03 87,995***
85,062 Bank of Nova Scotia, 1.25%, due 05/07/03 85,062***
361,512 BlackRock TempCash Fund, 1.24%, due
05/01/03 361,512***
106,327 BNP Paribas, 1.25%, due 05/07/03 106,327***
212,654 Canadian Imperial Bank of Commerce,
1.4%, due 11/04/03 212,654***
21,265 Comerica Bank, 1.31%, due 11/19/03 21,265***
63,796 Den Danske Bank, 1.25%, due 05/07/03 63,796***
21,104 Foreign Currency Call Accounts 22,608
201,599 Investors Bank & Trust Depository
Reserve, 1%, due 05/01/03 201,599
42,531 Merrill Lynch & Co., Inc., 1.48%, due
11/26/03 42,531***
353,006 Merrimac Money Market Fund, 1.23%, due
05/01/03 353,006***
212,655 Royal Bank of Canada, 1.23%, due
05/01/03 212,655***
63,796 Toronto Dominion Bank, 1.25%, due
05/07/03 63,796***
-----------
TOTAL SHORT-TERM INVESTMENTS (COST:
$1,833,302) (11.1%) 1,834,806
-----------
TOTAL INVESTMENTS (COST: $19,375,941)
(107.6%) 17,743,238
LIABILITIES IN EXCESS OF OTHER ASSETS
(-7.6%) (1,254,216)
-----------
NET ASSETS (100.0%) $16,489,022
===========
</Table>
NOTES TO THE SCHEDULE OF INVESTMENTS:
* NON-INCOME PRODUCING.
** 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 $863,942 OR 5.2% OF NET
ASSETS.
*** REPRESENTS INVESTMENTS OF SECURITIES LENDING COLLATERAL (NOTE 3).
+ SECURITY PARTIALLY OR FULLY LENT (NOTE 3).
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
8
<Page>
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INVESTMENTS BY INDUSTRY (UNAUDITED) APRIL 30, 2003
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
-------------------------------------------------- -------------
<S> <C>
Automotive 1.1%
Banking 10.4
Beverages, Food & Tobacco 3.2
Building Materials 0.6
Chemicals 2.1
Commercial Services 3.5
Communications 2.6
Computer Software 2.0
Computer Software & Services 0.9
Computers & Information 1.6
Electric Utilities 6.9
Electrical Equipment 2.4
Electronics 12.5
Financial Services 3.6
Industrial--Diversified 7.1
Insurance 4.2
Media--Broadcasting & Publishing 1.1
Metals 4.8
Mining 3.2
Oil & Gas 7.2
Pharmaceuticals 1.0
Radio Telephone Communications 6.5
Retail 0.6
Telegraph & Other Communications 3.0
Telephone Communications, exc. Radio 4.4
Short-Term Investments 11.1
---------
Total 107.6%
=========
</Table>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
9
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TCW GALILEO EMERGING MARKETS INCOME FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
<Table>
<Caption>
PRINCIPAL
AMOUNT FIXED INCOME SECURITIES VALUE
----------- ----------------------- -----------
<C> <S> <C>
ARGENTINA (COST: $940,425) (2.2% OF NET
ASSETS)
$ 1,225,000 YPF Sociedad Anonima, 7.75%, due
08/27/07 $ 1,243,375
-----------
BRAZIL (19.1%)
4,535,000 Republic of Brazil, 11%, due 01/11/12 4,376,275
1,180,000 Republic of Brazil, 12.75%, due 01/15/20 1,180,000
4,640,000 Republic of Brazil, 14.5%, due 10/15/09 5,266,400
-----------
TOTAL BRAZIL (COST: $6,211,005) 10,822,675
-----------
CHILE (2.7%)
885,000 Empresa Nacional Electric, 7.325%, due
02/01/37 831,530
295,000 Empresa Nacional Electric, Series B,
8.5%, due 04/01/09 295,912
590,000 Gener S.A., 6.5%, due 01/15/06 413,000
-----------
TOTAL CHILE (COST: $1,462,713) 1,540,442
-----------
COLOMBIA (5.7%)
1,800,000 Republic of Colombia, 8.7%, due 02/15/16 1,714,500
1,376,041 Republic of Colombia, 9.75%, due
04/09/11 1,541,166
-----------
TOTAL COLOMBIA (COST: $2,725,925) 3,255,666
-----------
DOMINICAN REPUBLIC (3.8%)
671,667 Government of the Dominican Republic,
2.188%, due 08/30/09 592,055
1,100,000 Government of the Dominican Republic,
9.04%, due 01/23/13 1,100,000
705,000 Tricom S.A., 11.375%, due 09/01/04 437,100
-----------
TOTAL DOMINICAN REPUBLIC (COST:
$2,317,710) 2,129,155
-----------
EL SALVADOR (COST: $568,737) (1.1%)
575,000 Republic of El Salvador, 7.75%, due
01/24/23 606,625
-----------
HONG KONG (COST: $1,107,710) (2.0%)
1,147,000 China Mobile, Limited, 2.25%, due
11/03/05 1,132,663
-----------
INDONESIA (COST: $679,908) (1.2%)
946,000 Republic of Indonesia, Loan
Participation Agreement dated
09/28/00, Deutsche Bank A.G. as Agent,
(144A), Variable Rate based on LIBOR +
0.875%, due 03/28/13 681,120*
-----------
ISRAEL (COST: $1,377,330) (2.5%)
1,325,000 Israel Electric Corporation, Limited,
7.95%, due 05/30/11 1,437,121
-----------
KAZAKHSTAN (COST: $559,350) (1.0%)
565,000 Kazkommerts International B.V., (144A),
8.5%, due 04/16/13 563,359*
-----------
MALAYSIA (COST: $1,011,237) (1.8%)
935,000 Petronas Capital, Limited, 7.875%, due
05/22/22 1,027,728
-----------
MEXICO (11.1%)
775,000 Gruma, S.A. de C.V., 7.625%, due
10/15/07 815,688
1,400,000 Grupo Iusacell, S.A. de C.V., 10%, due
07/15/04 770,000
1,525,000 Grupo Minero Mexico, S.A. de C.V.,
Series A, 8.25%, due 04/01/08 1,098,000
1,030,000 Grupo Transport Ferroviaria, 10.25%, due
06/15/07 1,009,400
1,060,000 Pemex Project Funding Master Trust,
7.375%, due 12/15/14 1,150,100
</Table>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
10
<Page>
[ICON]
--------------------------------------------------------------------------------
APRIL 30, 2003
<Table>
<Caption>
PRINCIPAL
AMOUNT VALUE
----------- -----------
<C> <S> <C>
MEXICO (CONTINUED)
$ 1,525,000 Transport Maritma Mexico, 10.25%, due
11/15/06 $ 1,212,375
260,000 TV Azteca, S.A. de C.V., 10.5%, due
02/15/07 248,300
-----------
TOTAL MEXICO (COST: $6,405,779) 6,303,863
-----------
PANAMA (COST: $697,759) (1.2%)
766,656 Republic of Panama, 5%, due 07/17/14 697,657
-----------
PHILIPPINES (2.6%)
265,000 Ce Casecnan Water & Energy, Series A,
11.45%, due 11/15/05 262,350
460,000 Philippine Long Distance Telephone
Company, 11.37%, due 05/15/12 473,800
710,000 Republic of Philippines, 9%, due
02/15/13 736,625
-----------
TOTAL PHILIPPINES (COST: $1,372,672) 1,472,775
-----------
POLAND (1.6%)
355,000 PTC International Finance B.V., 10.75%,
due 07/01/07 369,200
465,000 TPSA Finance B.V., 7.75%, due 12/10/08 516,150
-----------
TOTAL POLAND (COST: $798,504) 885,350
-----------
QATAR (COST: $954,525) (1.7%)
890,000 Ras Laffan Liquefied Gas Company,
Limited, 8.294%, due 03/15/14 952,300
-----------
RUSSIA (6.3%)
840,000 OAO Siberian Oil Company, 11.5%, due
02/13/07 961,800
820,000 Russian Federation, (144A), 12.75%, due
06/24/28, Par Put 06/24/08 1,263,825*
230,000 Russian Federation, (Reg. S), 12.75%,
due 06/24/28, Par Put 06/24/08 354,488
860,000 Tyumen Oil Company, (144A), 11%, due
11/06/07 991,150*
-----------
TOTAL RUSSIA (COST: $2,771,918) 3,571,263
-----------
SOUTH KOREA (5.8%)
325,000 Hanvit Bank, 11.75%, due 03/01/10 365,625
100,000 Hanvit Bank, (144A), 11.75%, due
03/01/10 112,500*
300,000 Korea Chohung Bank, 6.354%, due 01/07/05 310,500
440,000 Korea Chohung Bank, 11.5%, due 04/01/10 497,200
2,000,000 Korea Development Bank, 4.25%, due
11/13/07 2,018,046
-----------
TOTAL SOUTH KOREA (COST: $3,251,466) 3,303,871
-----------
TURKEY (COST: $864,881) (1.6%)
885,000 Republic of Turkey, 11.75%, due 06/15/10 907,125
-----------
URUGUAY (COST: $192,507) (0.4%)
350,000 Republic of Uruguay, 8.75%, due 06/22/10 210,000
-----------
VENEZUELA (8.0%)
2,085,000 Cerro Negro Finance, Limited, 7.9%, due
12/01/20 1,501,200
1,205,000 PDVSA Finance, Limited, 8.5%, due
11/16/12 988,100
315,000 Petrozuata Finance, Incorporated, 7.63%,
due 04/01/09 277,200
1,925,000 Petrozuata Finance, Incorporated, 8.22%,
due 04/01/17 1,463,000
</Table>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
11
<Page>
TCW GALILEO EMERGING MARKETS INCOME FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
<Table>
<Caption>
PRINCIPAL
AMOUNT VALUE
----------- -----------
<C> <S> <C>
VENEZUELA (CONTINUED)
$ 375,000 Petrozuata Finance, Incorporated,
(144A), 8.22%, due 04/01/17 $ 285,000*
-----------
TOTAL VENEZUELA (COST: $4,076,356) 4,514,500
-----------
TOTAL FIXED INCOME SECURITIES
(COST: $40,348,417) (83.4%) 47,258,633
-----------
<Caption>
NUMBER OF
SHARES EQUITY SECURITIES
----------- -----------------
<C> <S> <C>
COMMON STOCK
POLAND (COST: $1,090,262) (3.3%)
2,452,039 Netia Holdings S.A. 1,855,165**
-----------
<Caption>
NUMBER OF
WARRANTS
-----------
<C> <S> <C>
WARRANTS
INDONESIA (COST: $0) (0.0%)
2,010 Asia Pulp & Paper Company, Limited,
expire 3/15/05 --**
-----------
TOTAL EQUITY SECURITIES (COST:
$1,090,262) (3.3%) 1,855,165
-----------
<Caption>
PRINCIPAL
AMOUNT PURCHASED OPTIONS
----------- -----------------
<C> <S> <C>
CROSS CURRENCY OPTIONS (0.3%)
$50,000,000 USD Call/HKD Put, Expires 04/07/04,
Strike 8.0555 113,142
30,000,000 USD Call/HKD Put, Expires 04/13/04,
Strike 8.0500 66,000
-----------
TOTAL CROSS CURRENCY OPTIONS (COST:
$247,500) 179,142
-----------
TOTAL PURCHASED OPTIONS (COST: $247,500)
(0.3%) 179,142
-----------
<Caption>
SHORT-TERM INVESTMENTS (COST: $9,217,286) (16.3%)
-------------------------------------------------
<C> <S> <C>
9,217,286 Investors Bank & Trust Depository Reserve, 1%,
due 05/01/03 9,217,286
-----------
TOTAL INVESTMENTS (COST: $50,903,465) (103.3%) 58,510,226
LIABILITIES IN EXCESS OF OTHER ASSETS (-3.3%) (1,874,098)
-----------
NET ASSETS (100.0%) $56,636,128
===========
</Table>
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 $3,896,954 OR 6.9% OF NET
ASSETS.
** NON-INCOME PRODUCING.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
12
<Page>
[ICON]
--------------------------------------------------------------------------------
INVESTMENTS BY INDUSTRY (UNAUDITED) APRIL 30, 2003
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
-------------------------------------------------- -------------
<S> <C>
Banking & Financial Services 6.8%
Beverages, Food & Tobacco 1.5
Communications 1.4
Currency Options 0.3
Electric Utilities 5.7
Government 37.5
Media--Broadcasting & Publishing 0.4
Mining 1.9
Oil & Gas 19.2
Radio Telephone Communications 2.0
Telephone Communications, exc. Radio 6.4
Transportation 3.9
Short-Term Investments 16.3
---------
Total 103.3%
=========
</Table>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
13
<Page>
TCW GALILEO EUROPEAN GROWTH EQUITIES FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
<Table>
<Caption>
NUMBER OF
SHARES EQUITY SECURITIES VALUE
--------- ----------------- ----------
<C> <S> <C>
COMMON STOCK
DENMARK (COST: $149,077) (2.3% OF NET
ASSETS)
5,900 TDC A/S $ 146,776
----------
FRANCE (27.9%)
13,700 Alcatel S.A. 112,223+
4,900 Aventis S.A. 248,867
15,500 Axa S.A. 235,426+
1,450 Galeries Lafayette S.A. 161,820
2,200 Lafarge S.A. 147,803
4,500 Lagardere Groupe 171,953
4,600 PSA Peugeot Citroen 215,303
2,100 Total Fina ELF S.A. 275,373
11,100 Vivendi Environment 239,700
----------
TOTAL FRANCE (COST: $1,915,256) 1,808,468
----------
GERMANY (11.6%)
3,800 Bayerische Motoren Werke AG 126,673
2,500 Deutsche Bank AG 129,289
16,500 Infineon Technologies AG 122,453*
3,300 Siemens AG 163,148
2,850 Wella AG 213,100+
----------
TOTAL GERMANY (COST: $653,131) 754,663
----------
GREAT BRITAIN (24.3%)
43,000 BT Group PLC 123,189
38,400 EasyJet PLC 115,995*
11,200 GlaxoSmithKline PLC 224,471
19,128 HSBC Holdings PLC 209,566
26,500 Marks & Spencer Group PLC 123,461
107,000 mm02 PLC 95,340*
16,800 Pearson PLC 140,026
27,000 Prudential PLC 165,275
5,500 The Royal Bank of Scotland Group PLC 144,250
119,436 Vodafone Group PLC 235,747
----------
TOTAL GREAT BRITAIN (COST: $1,557,263) 1,577,320
----------
IRELAND (COST: $106,007) (2.4%)
12,500 Bank of Ireland 152,752
----------
NETHERLANDS (13.8%)
6,200 ABN Amro Holdings, N.V. 104,757
33,775 BE Semiconductor Industries, N.V. 150,772*
11,500 Koninklijke (Royal) Philips Electonics,
N.V. 213,943
6,700 Royal Dutch Petroleum Company 274,039
7,400 ST Microelectronics, N.V. 152,945+
----------
TOTAL NETHERLANDS (COST: $963,409) 896,456
----------
SPAIN (COST: $100,171) (3.2%)
18,881 Telefonica S.A. 208,815*
----------
</Table>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
14
<Page>
[ICON]
--------------------------------------------------------------------------------
APRIL 30, 2003
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------- ----------
<C> <S> <C>
SWEDEN (COST: $115,400) (2.6%)
6,900 Autoliv AB, Inc. $ 168,710
----------
SWITZERLAND (7.0%)
3,616 Adecco S.A. 138,636
3,600 UBS AG 170,803+
1,350 Zurich Financial Services AG 142,336
----------
TOTAL SWITZERLAND (COST: $464,544) 451,775
----------
TOTAL COMMON STOCK (COST: $6,024,258)
(95.1%) 6,165,735
----------
<Caption>
NUMBER OF
WARRANTS
---------
<C> <S> <C>
WARRANTS
FRANCE (COST: $0) (0.0%)
15,170 Vivendi Environment, expire 03/08/06 1,354*
----------
TOTAL EQUITY SECURITIES (COST:
$6,024,258) (95.1%) 6,167,089
----------
<Caption>
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS
--------- ----------------------
<C> <S> <C>
$ 27,871 Bank of Montreal, 1.34%, due 05/01/03 27,871**
26,942 Bank of Nova Scotia, 1.25%, due 05/07/03 26,942**
114,504 BlackRock TempCash Fund, 1.24%, due
05/01/03 114,504**
33,678 BNP Paribas, 1.25%, due 05/07/03 33,678**
67,355 Canadian Imperial Bank of Commerce,
1.4%, due 11/04/03 67,355**
6,736 Comerica Bank, 1.31%, due 11/19/03 6,735**
20,207 Den Danske Bank, 1.25%, due 05/07/03 20,206**
1,750 Foreign Currency Call Accounts 360
276,511 Investors Bank & Trust Depository
Reserve, 1%, due 05/01/03 276,511
13,471 Merrill Lynch & Co., Inc., 1.48%, due
11/26/03 13,471**
111,809 Merrimac Money Market Fund, 1.23%, due
05/01/03 111,809**
67,355 Royal Bank of Canada, 1.23%, due
05/01/03 67,355**
20,207 Toronto Dominion Bank, 1.25%, due
05/07/03 20,207**
----------
TOTAL SHORT-TERM INVESTMENTS (COST:
$786,979) (12.2%) 787,004
----------
TOTAL INVESTMENTS (COST: $6,811,237)
(107.3%) 6,954,093
LIABILITIES IN EXCESS OF OTHER ASSETS
(-7.3%) (472,476)
----------
NET ASSETS (100.0%) $6,481,617
==========
</Table>
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.
15
<Page>
TCW GALILEO EUROPEAN GROWTH EQUITIES FUND
--------------------------------------------------------------------------------
INVESTMENTS BY INDUSTRY (UNAUDITED)
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
-------------------------------------------------- -------------
<S> <C>
Airlines 1.8%
Automotive 7.9
Banking 14.0
Building Materials 2.3
Commercial Services 2.1
Communications 3.2
Cosmetics & Personal Care 3.3
Electronics 9.9
Environmental Controls 3.7
Heavy Machinery 2.5
Insurance 8.4
Media--Broadcasting & Publishing 4.8
Oil & Gas 8.5
Pharmaceuticals 7.3
Radio Telephone Communications 3.6
Retailers 4.4
Telephone Communications, exc. Radio 7.4
Short-Term Investments 12.2
---------
Total 107.3%
=========
</Table>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
16
<Page>
TCW GALILEO SELECT INTERNATIONAL GROWTH EQUITIES FUND
[ICON]
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED) APRIL 30, 2003
<Table>
<Caption>
NUMBER OF
SHARES COMMON STOCK VALUE
---------- ------------ -----------
<C> <S> <C>
DENMARK (COST: $358,613) (1.9% OF NET
ASSETS)
15,000 TDC A/S $ 373,160+
-----------
FRANCE (19.4%)
40,700 Alcatel S.A. 333,392+
12,146 Aventis S.A. 616,885
30,300 Axa S.A. 460,219+
6,800 Lafarge S.A. 456,846
11,547 Lagardere Groupe 441,232
15,000 PSA Peugeot Citroen 702,076
6,550 Total Fina ELF S.A. 858,902
-----------
TOTAL FRANCE (COST: $3,934,832) 3,869,552
-----------
GERMANY (8.0%)
8,700 Deutsche Bank AG 449,924+
53,200 Infineon Technologies AG 394,818*
3,200 SAP AG 325,336
8,700 Siemens AG 430,118
-----------
TOTAL GERMANY (COST: $1,319,606) 1,600,196
-----------
GREAT BRITAIN (18.0%)
133,000 BT Group PLC 381,027
116,000 EasyJet PLC 350,400*
33,200 GlaxoSmithKline PLC 665,396
60,000 HSBC Holdings PLC 657,360
44,600 Pearson PLC 371,735
16,300 The Royal Bank of Scotland Group PLC 427,505
376,374 Vodafone Group PLC 742,902
-----------
TOTAL GREAT BRITAIN (COST: $3,550,663) 3,596,325
-----------
HONG KONG (COST: $864,494) (2.8%)
100,500 Cheung Kong Holdings, Limited 555,395
-----------
IRELAND (COST: $311,349) (2.2%)
35,900 Bank of Ireland 438,705
-----------
JAPAN (18.4%)
167 Dentsu, Incorporated 497,107
10,500 Fanuc, Limited 429,650
18,000 Fuji Photo Film Company 458,829
16,000 Ito-Yokado Company, Limited 376,321
12,999 Murata Manufacturing Company, Limited 463,238
275 NTT Docomo, Incorporated 567,248
17,000 Shin-Etsu Chemical Company, Limited 508,888
15,300 Sony Corporation 372,044
-----------
TOTAL JAPAN (COST: $4,545,083) 3,673,325
-----------
NETHERLANDS (10.7%)
43,500 ASM Lithography Holding, N.V. 375,746*
31,900 Koninklijke (Royal) Philips Electonics,
N.V. 593,459
</Table>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
17
<Page>
TCW GALILEO SELECT INTERNATIONAL GROWTH EQUITIES FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
<Table>
<Caption>
NUMBER OF
SHARES VALUE
---------- -----------
<C> <S> <C>
NETHERLANDS (CONTINUED)
20,900 Royal Dutch Petroleum Company $ 854,839
15,500 ST Microelectronics, N.V. 320,359
-----------
TOTAL NETHERLANDS (COST: $2,081,899) 2,144,403
-----------
SOUTH KOREA (COST: $651,083) (2.9%)
2,300 Samsung Electronics Company, Limited 577,366
-----------
SPAIN (COST: $430,535) (2.7%)
48,804 Telefonica S.A. 539,746*
-----------
SWITZERLAND (8.9%)
11,000 Adecco S.A. 421,735+
12,200 Novartis AG 481,236
9,000 UBS AG 427,007+
4,300 Zurich Financial Services AG 453,366
-----------
TOTAL SWITZERLAND (COST: $1,532,063) 1,783,344
-----------
TAIWAN (COST: $337,402) (1.6%)
97,000 United Microelectronics Corporation
(ADR) 314,280*
-----------
TOTAL COMMON STOCK (COST: $19,917,622)
(97.5%) 19,465,797
-----------
<Caption>
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS
---------- ----------------------
<C> <S> <C>
$ 62,444 Bank of Montreal, 1.34%, due 05/01/03 62,444**
60,362 Bank of Nova Scotia, 1.25%, due 05/07/03 60,362**
256,539 BlackRock TempCash Fund, 1.24%, due
05/01/03 256,539**
75,453 BNP Paribas, 1.25%, due 05/07/03 75,453**
150,905 Canadian Imperial Bank of Commerce,
1.4%, due 11/04/03 150,905**
15,091 Comerica Bank, 1.31%, due 11/19/03 15,091**
45,272 Den Danske Bank, 1.25%, due 05/07/03 45,272**
1,007 Foreign Currency Call Accounts 979
355,951 Investors Bank & Trust Depository
Reserve, 1%, due 05/01/03 355,951
30,181 Merrill Lynch & Co., Inc., 1.48%, due
11/26/03 30,181**
250,503 Merrimac Money Market Fund, 1.23%, due
05/01/03 250,503**
150,905 Royal Bank of Canada, 1.23%, due
05/01/03 150,905**
102,729 TCW Galileo Money Market Fund, 1.04% 102,729
45,272 Toronto Dominion Bank, 1.25%, due
05/07/03 45,272**
-----------
TOTAL SHORT-TERM INVESTMENTS (COST:
$1,602,613) (8.0%) 1,602,586
-----------
TOTAL INVESTMENTS (COST: $21,520,235)
(105.5%) 21,068,383
LIABILITIES IN EXCESS OF OTHER ASSETS
(-5.5%) (1,105,069)
-----------
NET ASSETS (100.0%) $19,963,314
===========
</Table>
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.
18
<Page>
[ICON]
--------------------------------------------------------------------------------
INVESTMENTS BY INDUSTRY (UNAUDITED) APRIL 30, 2003
<Table>
<Caption>
PERCENTAGE OF
INDUSTRY NET ASSETS
-------------------------------------------------- -------------
<S> <C>
Advertising 2.5%
Airlines 1.8
Automotive 3.5
Banking 12.0
Building Materials 2.3
Chemicals 2.5
Commercial Services 2.1
Communications 3.5
Computer Software & Services 1.6
Electrical Equipment 1.6
Electronics 15.8
Entertainment & Leisure 2.3
Heavy Machinery 2.1
Insurance 4.6
Media--Broadcasting & Publishing 4.1
Oil & Gas 8.6
Pharmaceuticals 8.8
Radio Telephone Communications 6.6
Real Estate 2.8
Retailers 1.9
Telephone Communications, exc. Radio 6.5
Short-Term Investments 8.0
---------
Total 105.5%
=========
</Table>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
19
<Page>
TCW GALILEO FUNDS, INC.
--------------------------------------------------------------------------------
INTERNATIONAL
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) APRIL 30, 2003
<Table>
<Caption>
TCW GALILEO
TCW GALILEO TCW GALILEO TCW GALILEO SELECT
TCW GALILEO EMERGING EMERGING EUROPEAN INTERNATIONAL
ASIA PACIFIC MARKETS MARKETS GROWTH GROWTH
EQUITIES EQUITIES INCOME EQUITIES EQUITIES
FUND FUND FUND FUND FUND
------------ ----------- ----------- ----------- -------------
DOLLAR AMOUNTS IN THOUSANDS
(EXCEPT PER SHARE AMOUNTS)
<S> <C> <C> <C> <C> <C>
ASSETS
Investments, at Value
(1) $ 7,915 $ 17,743 $ 58,510 $ 6,954 $ 21,068
Receivables for
Securities Sold -- -- -- 60 103
Receivables for Fund
Shares Sold -- 286 55 6 --
Interest and Dividends
Receivable 28 117 1,077 37 95
Unrealized Appreciation
of Forward Foreign
Currency Contracts
(Note 10) -- -- 75 -- --
Foreign Tax Reclaim
Receivable -- 1 -- 8 17
---------- ---------- ---------- ---------- ----------
Total Assets 7,943 18,147 59,717 7,065 21,283
---------- ---------- ---------- ---------- ----------
LIABILITIES
Distribution Payable -- -- 413 -- --
Payables for Securities
Purchased -- -- 2,559 42 120
Payables Upon Return of
Securities Loaned -- 1,611 -- 510 1,143
Unrealized Depreciation
of Forward Foreign
Currency Contracts
(Note 10) -- -- 47 -- --
Accrued Management Fees 2 13 33 1 11
Other Accrued Expenses 20 34 29 30 46
---------- ---------- ---------- ---------- ----------
Total Liabilities 22 1,658 3,081 583 1,320
---------- ---------- ---------- ---------- ----------
NET ASSETS $ 7,921 $ 16,489 $ 56,636 $ 6,482 $ 19,963
========== ========== ========== ========== ==========
NET ASSETS CONSIST OF:
Paid-in Capital $ 9,968 $ 40,484 $ 43,261 $ 18,975 $ 36,581
Undistributed Net
Realized Gain (Loss)
on Investments and
Foreign Currency (1,644) (22,498) 4,256 (12,566) (19,475)
Unrealized Appreciation
(Depreciation) on
Investments and
Foreign Currency (30) (1,633) 7,635 143 (452)
Undistributed Net
Investment Income
(Loss) (373) 136 1,484 (70) 3,309
---------- ---------- ---------- ---------- ----------
NET ASSETS $ 7,921 $ 16,489 $ 56,636 $ 6,482 $ 19,963
========== ========== ========== ========== ==========
NET ASSETS ATTRIBUTABLE
TO:
I Class Shares $ 7,921 $ 16,489 $ 56,636 $ 6,482 $ 19,963
========== ========== ========== ========== ==========
N Class Shares $ -- $ -- $ -- $ -- $ --(2)
========== ========== ========== ========== ==========
K Class Shares $ -- $ -- $ -- $ -- $ --(2)
========== ========== ========== ========== ==========
CAPITAL SHARES
OUTSTANDING:
I Class 1,301,749 2,558,486 6,114,261 977,654 2,961,104
========== ========== ========== ========== ==========
N Class -- -- -- -- 15
========== ========== ========== ========== ==========
K Class -- -- -- -- 14
========== ========== ========== ========== ==========
NET ASSET VALUE PER
SHARE:
I Class $ 6.08 $ 6.44 $ 9.26 $ 6.63 $ 6.74
========== ========== ========== ========== ==========
N Class $ -- $ -- $ -- $ -- $ 6.74
========== ========== ========== ========== ==========
K Class $ -- $ -- $ -- $ -- $ 6.74
========== ========== ========== ========== ==========
</Table>
(1) THE IDENTIFIED COST FOR THE TCW GALILEO ASIA PACIFIC EQUITIES FUND, THE TCW
GALILEO EMERGING MARKETS EQUITIES FUND, THE TCW GALILEO EMERGING MARKETS
INCOME FUND, THE TCW GALILEO EUROPEAN GROWTH EQUITIES FUND AND THE TCW
GALILEO SELECT INTERNATIONAL GROWTH EQUITIES FUND AT APRIL 30, 2003 WAS
$7,945, $19,376, $50,903, $6,811 AND $21,520, RESPECTIVELY.
(2) AMOUNTS ROUND TO LESS THAN $1.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
20
<Page>
TCW GALILEO FUNDS, INC.
[ICON]
--------------------------------------------------------------------------------
INTERNATIONAL
STATEMENTS OF OPERATIONS (UNAUDITED) SIX MONTHS ENDED APRIL 30, 2003
<Table>
<Caption>
TCW GALILEO
TCW GALILEO TCW GALILEO TCW GALILEO SELECT
TCW GALILEO EMERGING EMERGING EUROPEAN INTERNATIONAL
ASIA PACIFIC MARKETS MARKETS GROWTH GROWTH
EQUITIES EQUITIES INCOME EQUITIES EQUITIES
FUND FUND FUND FUND FUND
------------ ----------- ----------- ----------- -------------
DOLLAR AMOUNTS IN THOUSANDS
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
INCOME:
Dividends (1) $ 104 $ 313 $ -- $ 75 $ 243
Interest -- 34 4,426 -- --
----- ------- ------- ----- -------
Total 104 347 4,426 75 243
----- ------- ------- ----- -------
EXPENSES:
Management Fees 41 105 285 25 117
Accounting Service Fees 1 4 11 1 6
Administration Fees 1 11 17 1 18
Transfer Agent Fees:
I Class 14 14 15 14 14
N Class -- -- -- 15 2
K Class -- -- -- -- 4
Custodian Fees 14 15 17 17 27
Professional Fees 13 13 15 15 15
Directors' Fees &
Expenses 5 5 5 5 5
Registration Fees:
I Class 5 6 7 6 3
N Class -- -- -- 6 --
Other 2 4 10 14 9
----- ------- ------- ----- -------
Total 96 177 382 119 220
Less Expenses Borne
by
Investment Advisor:
I Class 6 -- -- 24 --
N Class -- -- -- 21 2
K Class -- -- -- -- 4
----- ------- ------- ----- -------
Net Expenses 90 177 382 74 214
----- ------- ------- ----- -------
Net Investment Income 14 170 4,044 1 29
----- ------- ------- ----- -------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND
FOREIGN CURRENCY
TRANSACTIONS
Net Realized Gain
(Loss) on:
Investments (666) (2,798) 5,436 (608) (6,818)
Foreign Currency (15) (42) 6 (15) (359)
Change in Unrealized
Appreciation on:
Investments 106 2,989 6,419 606 4,356
Foreign Currency -- 1 28 -- --
----- ------- ------- ----- -------
Net Realized and
Unrealized Gain
(Loss) on Investments
and Foreign Currency
Transactions (575) 150 11,889 (17) (2,821)
----- ------- ------- ----- -------
INCREASE (DECREASE) IN
NET ASSETS RESULTING
FROM OPERATIONS $(561) $ 320 $15,933 $ (16) $(2,792)
===== ======= ======= ===== =======
</Table>
(1) NET OF FOREIGN TAXES WITHHELD OF THE TCW GALILEO ASIA PACIFIC EQUITIES
FUND, THE TCW GALILEO EMERGING MARKETS EQUITIES FUND, THE TCW GALILEO
EUROPEAN GROWTH EQUITIES FUND AND THE TCW GALILEO SELECT INTERNATIONAL
GROWTH EQUITIES FUND WAS $13, $31, $9 AND $32, RESPECTIVELY.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
21
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TCW GALILEO FUNDS, INC.
--------------------------------------------------------------------------------
INTERNATIONAL
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
TCW GALILEO TCW GALILEO
ASIA PACIFIC EMERGING MARKETS
EQUITIES FUND EQUITIES 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
<S> <C> <C> <C> <C>
OPERATIONS
Net Investment Income (Loss) $ 14 $ (39) $ 170 $ 324
Net Realized (Loss) on
Investments and Foreign
Currency Transactions (681) (144) (2,840) (1,580)
Change in Unrealized
Appreciation on
Investments and Foreign
Currency Transactions 106 811 2,990 3,805
------ ------ ------- -------
Increase (Decrease) in Net
Assets Resulting from
Operations (561) 628 320 2,549
------ ------ ------- -------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from Net
Investment Income:
I Class -- -- (311) (392)
------ ------ ------- -------
NET CAPITAL SHARE TRANSACTIONS
I Class (295) 153 (8,024) (5,634)
------ ------ ------- -------
Increase (Decrease) in Net
Assets (856) 781 (8,015) (3,477)
NET ASSETS
Beginning of Period 8,777 7,996 24,504 27,981
------ ------ ------- -------
End of Period $7,921 $8,777 $16,489 $24,504
====== ====== ======= =======
</Table>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
22
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TCW GALILEO FUNDS, INC.
[ICON]
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INTERNATIONAL
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
TCW GALILEO TCW GALILEO TCW GALILEO
EMERGING MARKETS EUROPEAN GROWTH SELECT INTERNATIONAL
INCOME FUND EQUITIES FUND GROWTH EQUITIES FUND
------------------------ ------------------------ ------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
APRIL 30, YEAR ENDED APRIL 30, YEAR ENDED APRIL 30, YEAR ENDED
2003 OCTOBER 31, 2003 OCTOBER 31, 2003 OCTOBER 31,
(UNAUDITED) 2002 (UNAUDITED) 2002 (UNAUDITED) 2002
----------- ----------- ----------- ----------- ----------- -----------
DOLLAR AMOUNTS IN THOUSANDS
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net Investment Income
(Loss) $ 4,044 $ 4,657 $ 1 $ (19) $ 29 $ 67
Net Realized Gain
(Loss) on Investments
and Foreign Currency
Transactions 5,442 359 (623) (3,196) (7,177) (10,574)
Change in Unrealized
Appreciation on
Investments and
Foreign Currency
Transactions 6,447 1,168 606 620 4,356 3,107
-------- ------- -------- ------- -------- --------
Increase (Decrease) in
Net Assets Resulting
from Operations 15,933 6,184 (16) (2,595) (2,792) (7,400)
-------- ------- -------- ------- -------- --------
DISTRIBUTIONS TO
SHAREHOLDERS
Distributions from Net
Investment Income:
I Class (2,993) (4,283) -- (222) -- --
Distributions from Net
Realized Gain:
I Class (1,414) (2,025) -- -- -- --
-------- ------- -------- ------- -------- --------
Total Distributions to
Shareholders (4,407) (6,308) -- (222) -- --
-------- ------- -------- ------- -------- --------
NET CAPITAL SHARE
TRANSACTIONS
I Class (36,648) 60,508 (1,063) (7,929) (13,906) 831
N Class -- -- (386) (828) --(1) --
K Class -- -- -- -- --(1) --
-------- ------- -------- ------- -------- --------
Increase (Decrease) in
Net Assets Resulting
from Net Capital
Share Transactions (36,648) 60,508 (1,449) (8,757) (13,906) 831
-------- ------- -------- ------- -------- --------
Increase (Decrease) in
Net Assets (25,122) 60,384 (1,465) (11,574) (16,698) (6,569)
NET ASSETS
Beginning of Period 81,758 21,374 7,947 19,521 36,661 43,230
-------- ------- -------- ------- -------- --------
End of Period $ 56,636 $81,758 $ 6,482 $ 7,947 $ 19,963 $ 36,661
======== ======= ======== ======= ======== ========
</Table>
(1) AMOUNTS ROUND TO LESS THAN $1.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
23
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TCW GALILEO FUNDS, INC.
--------------------------------------------------------------------------------
INTERNATIONAL
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1 -- ORGANIZATION
TCW Galileo Funds, Inc., a Maryland corporation (the "Company"), is an open-end
management investment company registered under the Investment Company Act of
1940, (the "1940 Act"), as amended, that currently offers a selection of 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 the SGY are the second-tier subsidiaries
of Societe Generale Asset Management, S.A. Each Fund has distinct investment
objectives and policies. The TCW Galileo Select International Growth Equities
Fund offers three classes of shares: I Class, N Class and K Class. All other
international funds offer only the I 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.
The TCW Galileo Select International Growth Equities Fund began offering N Class
and K Class shares on February 1, 2003 and November 1, 2002, respectively.
However, they are not currently available to the general public.
Effective March 1, 2003, the TCW Galileo European Equities Fund and the TCW
Galileo Select International Equities Fund changed their names to the TCW
Galileo European Growth Equities Fund and the TCW Galileo Select International
Growth Equities Fund, respectively. There is no change in their investment
objectives.
On April 23, 2003, the N Class shares of the TCW Galileo European Growth
Equities Fund were exchanged into I Class shares as a tax-free transaction. The
N Class shares are no longer offered by the 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.
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.
24
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--------------------------------------------------------------------------------
APRIL 30, 2003
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 a constant yield to maturity method.
Realized gains and losses on investments are recorded on the basis of specific
identification.
FOREIGN CURRENCY TRANSLATION: The books and records of each Fund are
maintained in U.S. dollars as follows: (1) the foreign currency market value of
investment securities, and other assets and liabilities stated in foreign
currencies, are translated using the daily spot rate; and (2) purchases, sales,
income and expenses are translated at the rate of exchange prevailing on the
respective dates of such transactions. The resultant exchange gains and losses
are included in the Statements of Operations with the related net realized gain
(loss). Pursuant to U.S. federal income tax regulations, certain foreign
exchange gains and losses included in realized and unrealized gains and losses
are included in, or are a reduction of, ordinary income for federal income tax
purposes. It is not practicable to separately identify that portion of gains and
losses of the Funds that arise as a result of changes in the exchange rates from
the fluctuations that arise from changes in market prices of investments during
the year.
FORWARD FOREIGN CURRENCY CONTRACTS: Certain Funds may enter into forward
foreign currency contracts as a hedge against fluctuations in foreign exchange
rates. Forward foreign currency contracts are marked-to-market daily and the
change in market value is recorded by the Fund as an unrealized gain or loss.
When the contract is closed or delivery is taken, the Fund records a realized
gain or loss equal to the difference between the value of the contract at the
time it was opened and the value at the time it was closed. Risks may arise upon
entering into these contracts from the potential inability of counterparties to
meet the terms of their contracts and from unanticipated movements in the value
of the foreign currency relative to the U.S. dollar (see Note 10).
REPURCHASE AGREEMENTS: The Funds may invest in repurchase agreements secured
by U.S. Government obligations and by other securities. Securities pledged as
collateral for repurchase agreements are held by the Funds' custodian bank until
maturity of the repurchase agreements. Provisions of the agreements ensure that
the market value of the collateral is sufficient in the event of default;
however, in the event of default or bankruptcy by the other party to the
agreements, realization and/or retention of the collateral may be subject to
legal proceedings. There are no repurchase agreements outstanding at April 30,
2003.
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
25
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TCW GALILEO FUNDS, INC.
--------------------------------------------------------------------------------
INTERNATIONAL
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
ALLOCATION OF OPERATING ACTIVITY FOR MULTIPLE CLASSES: Investment income,
common expenses and realized gains and losses are allocated among the classes of
shares of the Fund based on the relative net assets of each class. Distribution
fees, which are directly attributable to a class of shares are charged to that
classes 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 Emerging Markets Income Fund
declares and pays, or reinvests, dividends from net investment income monthly.
All other international funds declare and pay, or reinvest, dividends from net
investment income annually. Any net long-term and net short-term capital gains
earned by a fund will be distributed at least annually.
Income and capital gain distributions are determined in accordance with income
tax regulations which may differ from 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):
<Table>
<Caption>
MARKET VALUE OF SECURITIES
LOANED SECURITIES COLLATERAL VALUE LENDING INCOME*
----------------- ---------------- ---------------
<S> <C> <C> <C>
TCW Galileo Emerging Markets
Equities Fund $1,567 $1,611 $3
TCW Galileo European Growth
Equities Fund 484 510 1
TCW Galileo Select International
Growth Equities Fund 1,082 1,143 3
</Table>
* NET OF BROKER FEES.
Securities lending income is included in interest income in the Statements of
Operations.
26
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APRIL 30, 2003
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):
<Table>
<Caption>
TCW GALILEO
TCW GALILEO TCW GALILEO TCW GALILEO TCW GALILEO SELECT
ASIA EMERGING EMERGING EUROPEAN INTERNATIONAL
PACIFIC MARKETS MARKETS GROWTH GROWTH
EQUITIES FUND EQUITIES FUND INCOME FUND EQUITIES FUND EQUITIES FUND
------------- ------------- ----------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Unrealized Appreciation $ 573 $ 1,739 $ 8,483 $ 598 $ 1,386
Unrealized (Depreciation) (603) (3,372) (508) (455) (1,838)
------ ------- ------- ------ -------
Net Unrealized
Appreciation
(Depreciation) $ (30) $(1,633) $ 7,975 $ 143 $ (452)
====== ======= ======= ====== =======
Cost of Investments for
Federal Income Tax
Purposes $7,945 $19,376 $50,535 $6,811 $21,520
====== ======= ======= ====== =======
</Table>
At April 30, 2003, the following Funds had net realized loss carryforwards for
federal income tax purposes (amounts in thousands):
<Table>
<Caption>
EXPIRING IN
-----------------------------------------------
2004 2005 2006 2007 2009 2010
------ ------ ------ ------ ------ -------
<S> <C> <C> <C> <C> <C> <C>
TCW Galileo Asia Pacific
Equities Fund $ -- $ -- $ -- $ -- $ 820 $ 112
TCW Galileo Emerging
Markets Equities Fund 3,457 4,623 3,399 2,300 3,732 1,564
TCW Galileo European
Growth Equities Fund -- -- -- -- 8,605 3,067
TCW Galileo Select
International Growth
Equities Fund -- -- -- -- 1,724 10,080
</Table>
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:
<Table>
<S> <C>
TCW Galileo Asia Pacific Equities Fund 1.00%
TCW Galileo Emerging Markets Equities Fund 1.00%
TCW Galileo Emerging Markets Income Fund 0.75%
TCW Galileo European Growth Equities Fund 0.75%
TCW Galileo Select International Growth Equities
Fund 0.75%
</Table>
The ordinary operating expenses for the following Funds (each share class) are
limited to the average of the total expense ratios as reported by Lipper
Analytical Services, Inc. for each Fund's
27
<Page>
TCW GALILEO FUNDS, INC.
--------------------------------------------------------------------------------
INTERNATIONAL
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 5 -- FUND EXPENSES (CONTINUED)
respective investment objective, which is subject to change on a monthly basis.
At April 30, 2003, the average expense ratios reported by Lipper Analytical
Services, Inc. as they relate to each fund were:
<Table>
<S> <C>
TCW Galileo Asia Pacific Equities Fund 2.23%
TCW Galileo Emerging Markets Equities Fund 2.14%
TCW Galileo Emerging Markets Income Fund 1.40%
TCW Galileo European Growth Equities Fund 1.88%
TCW Galileo Select International Growth Equities
Fund 1.72%
</Table>
Certain officers and/or directors of the Company are officers and/or directors
of the Advisor.
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):
<Table>
<Caption>
TCW GALILEO
TCW GALILEO TCW GALILEO TCW GALILEO TCW GALILEO SELECT
ASIA EMERGING EMERGING EUROPEAN INTERNATIONAL
PACIFIC MARKETS MARKETS GROWTH GROWTH
EQUITIES FUND EQUITIES FUND INCOME FUND EQUITIES FUND EQUITIES FUND
------------- ------------- ----------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Purchases at Cost $5,570 $3,119 $35,673 $2,506 $14,628
====== ====== ======= ====== =======
Sales Proceeds $6,120 $8,666 $73,603 $3,676 $28,512
====== ====== ======= ====== =======
</Table>
There were no purchases or sales of U.S. Government Securities for the six
months ended April 30, 2003.
28
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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:
<Table>
<Caption>
TCW GALILEO ASIA PACIFIC EQUITIES FUND
I CLASS SIX MONTHS ENDED
APRIL 30, 2003 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2002
--------------------------- -----------------------------
AMOUNT AMOUNT
SHARES (IN THOUSANDS) SHARES (IN THOUSANDS)
----------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
Shares Sold 705,429 $ 4,563 1,204,438 $ 8,639
Shares Redeemed (731,873) (4,858) (1,165,635) (8,486)
----------- --------- ---------- ---------
Net Increase (Decrease) (26,444) $ (295) 38,803 $ 153
=========== ========= ========== =========
<Caption>
TCW GALILEO EMERGING MARKETS
EQUITIES FUND SIX MONTHS ENDED
I CLASS APRIL 30, 2003 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2002
--------------------------- -----------------------------
AMOUNT AMOUNT
SHARES (IN THOUSANDS) SHARES (IN THOUSANDS)
----------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
Shares Sold 3,716,693 $ 24,080 5,457,205 $ 37,711
Shares Issued upon Reinvestment of
Dividends 34,025 223 40,094 275
Shares Redeemed (5,011,520) (32,327) (6,162,302) (43,620)
----------- --------- ---------- ---------
Net (Decrease) (1,260,802) $ (8,024) (665,003) $ (5,634)
=========== ========= ========== =========
<Caption>
TCW GALILEO EMERGING MARKETS
INCOME FUND SIX MONTHS ENDED
I CLASS APRIL 30, 2003 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2002
--------------------------- -----------------------------
AMOUNT AMOUNT
SHARES (IN THOUSANDS) SHARES (IN THOUSANDS)
----------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
Shares Sold 1,475,062 $ 12,528 8,693,424 $ 68,299
Shares Issued upon Reinvestment of
Dividends 550,388 4,561 644,155 5,140
Shares Redeemed (6,218,281) (53,737) (1,632,424) (12,931)
----------- --------- ---------- ---------
Net Increase (Decrease) (4,192,831) $ (36,648) 7,705,155 $ 60,508
=========== ========= ========== =========
<Caption>
TCW GALILEO EUROPEAN 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)
----------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
Shares Sold 771,314 $ 4,869 223,186 $ 1,559
Shares Issued in Exchange of N Class
shares 15,227 100 -- --
Shares Issued upon Reinvestment of
Dividends -- -- 15,463 138
Shares Redeemed (948,807) (6,032) (1,223,995) (9,626)
----------- --------- ---------- ---------
Net (Decrease) (162,266) $ (1,063) (985,346) $ (7,929)
=========== ========= ========== =========
</Table>
29
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TCW GALILEO FUNDS, INC.
--------------------------------------------------------------------------------
INTERNATIONAL
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 8 -- CAPITAL SHARE TRANSACTIONS (CONTINUED)
<Table>
<Caption>
TCW GALILEO EUROPEAN GROWTH
EQUITIES FUND FOR THE PERIOD
N CLASS NOVEMBER 1, 2002
THROUGH
APRIL 23, 2003 (1) YEAR ENDED
(UNAUDITED) OCTOBER 31, 2002
--------------------------- -----------------------------
AMOUNT AMOUNT
SHARES (IN THOUSANDS) SHARES (IN THOUSANDS)
----------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
Shares Sold 138,337 $ 935 1,957,158 $ 15,131
Shares Redeemed (179,363) (1,221) (2,019,232) (15,959)
Shares Redeemed in Exchange of
I Class shares (15,067) (100) -- --
----------- --------- ---------- ---------
Net (Decrease) (56,093) $ (386) (62,074) $ (828)
=========== ========= ========== =========
</Table>
(1) LIQUIDATION DATE OF THE CLASS.
<Table>
<Caption>
TCW GALILEO SELECT INTERNATIONAL
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)
----------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
Shares Sold 855,532 $ 5,844 5,526,117 $ 43,511
Shares Redeemed (3,193,943) (19,750) (5,423,681) (42,680)
----------- --------- ---------- ---------
Net Increase (Decrease) (2,338,411) $ (13,906) 102,436 $ 831
=========== ========= ========== =========
<Caption>
TCW GALILEO SELECT INTERNATIONAL
GROWTH EQUITIES FUND FEBRUARY 1, 2003
N CLASS (COMMENCEMENT OF
OFFERING OF
N CLASS SHARES) THROUGH
APRIL 30, 2003
(UNAUDITED)
---------------------------
AMOUNT
SHARES (IN THOUSANDS)
----------- --------------
<S> <C> <C> <C> <C>
Shares Sold 15 $ --(1)
----------- ---------
Net Increase 15 $ --(1)
=========== =========
</Table>
(1) AMOUNTS ROUND TO LESS THAN $1.
<Table>
<Caption>
TCW GALILEO SELECT INTERNATIONAL
GROWTH EQUITIES FUND NOVEMBER 1, 2002
K CLASS (COMMENCEMENT OF
OFFERING OF
K CLASS SHARES) THROUGH
APRIL 30, 2003
(UNAUDITED)
---------------------------
AMOUNT
SHARES (IN THOUSANDS)
----------- --------------
<S> <C> <C> <C> <C>
Shares Sold 14 $ --(1)
----------- ---------
Net Increase 14 $ --(1)
=========== =========
</Table>
(1) AMOUNTS ROUND TO LESS THAN $1.
30
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APRIL 30, 2003
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.
NOTE 10 -- FORWARD FOREIGN CURRENCY CONTRACTS
The fund listed below invested in forward foreign currency contracts during the
six months ended April 30, 2003. The contracts are used for the purpose of
hedging against foreign exchange risk arising from the fund's investment in
foreign securities. These contracts are "marked-to-market" at the valuation date
at the applicable translation rates and any resulting unrealized gains or losses
are recorded in the fund's financial statements. The fund records realized gains
or losses at the time the forward contract is closed. A forward contract is
extinguished through a sale or the expiration of the contract. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of their contracts and from unanticipated
movements in the value of the foreign currency relative to the U.S. dollar. The
following forward foreign currency contracts were outstanding at April 30, 2003:
TCW GALILEO EMERGING MARKETS INCOME FUND:
<Table>
<Caption>
UNREALIZED
APPRECIATION
EXPIRATION IN EXCHANGE (DEPRECIATION)
DATE CONTRACTS TO BUY OR SELL FOR U.S. $ ON CONTRACTS
---------- ----------------------------------- ----------- --------------
<C> <S> <C> <C>
03/10/2004 Buy Mexican Peso 6,942,438 $565,000 $ 75,152
03/10/2004 Sell Mexican Peso 6,942,438 619,872 (20,280)
04/07/2004 Sell Philippine Peso 14,562,500 250,000 (6,870)
04/08/2004 Sell Philippine Peso 29,500,000 500,000 (20,234)
--------
Total Net Unrealized Appreciation $ 27,768
========
</Table>
31
<Page>
TCW GALILEO ASIA PACIFIC EQUITIES FUND
--------------------------------------------------------------------------------
I CLASS
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 2003 ------------------------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
-------------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value per
Share, Beginning of
Period $ 6.61 $ 6.20 $ 8.16 $ 8.37 $ 5.09 $ 7.37
------ ------- ------- ------- -------- -------
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net Investment Income
(Loss) (4) 0.01 (0.03) -- (0.06) (0.02) 0.02
Net Realized and
Unrealized Gain (Loss)
on Investments (0.54) 0.44 (1.69) (0.15) 3.30 (1.04)
------ ------- ------- ------- -------- -------
Total from Investment
Operations (0.53) 0.41 (1.69) (0.21) 3.28 (1.02)
------ ------- ------- ------- -------- -------
LESS DISTRIBUTIONS:
Distributions from Net
Realized Gain -- -- (0.27) -- -- (1.26)
------ ------- ------- ------- -------- -------
Net Asset Value per
Share, End of Period $ 6.08 $ 6.61 $ 6.20 $ 8.16 $ 8.37 $ 5.09
====== ======= ======= ======= ======== =======
Total Return (8.02)% (3) 6.61% (21.33)% (2.51)% 64.44% (14.80)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period
(in thousands) $7,921 $ 8,777 $ 7,996 $12,858 $ 22,070 $ 8,482
Ratio of Expenses to
Average Net Assets 2.19% (1)(2) 2.13%(2) 2.17%(2) 1.80%(2) 2.03%(2) 2.48%
Ratio of Net Investment
Income (Loss) to
Average Net Assets 0.33% (1) (0.40)% 0.01% (0.56)% (0.34)% 0.36%
Portfolio Turnover Rate 69.65% (3) 88.24% 45.49% 79.17% 119.72% 190.33%
</Table>
(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 ANNUAL
OPERATING EXPENSES OF THE FUND AS DISCLOSED IN NOTE 5 OF THE NOTES TO THE
FINANCIAL STATEMENTS. HAD SUCH ACTION NOT BEEN TAKEN, TOTAL OPERATING
EXPENSES, AS A PERCENTAGE OF NET ASSETS, WOULD HAVE BEEN 2.32% FOR THE SIX
MONTHS ENDED APRIL 30, 2003 AND 2.18%, 2.42%, 1.94%, AND 2.05% FOR THE
YEARS ENDED OCTOBER 31, 2002, 2001, 2000, AND 1999, RESPECTIVELY.
(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.
32
<Page>
TCW GALILEO EMERGING MARKETS EQUITIES FUND
[ICON]
--------------------------------------------------------------------------------
I CLASS
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 2003 ------------------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
-------------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value per
Share, Beginning of
Period $ 6.42 $ 6.24 $ 7.61 $ 7.87 $ 5.57 $ 8.32
------- ------- ------- ------- ------- -------
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net Investment Income
(Loss) (4) 0.05 0.08 0.07 0.01 (0.02) 0.09
Net Realized and
Unrealized Gain (Loss)
on Investments 0.06 0.18 (1.44) (0.27) 2.32 (2.83)
------- ------- ------- ------- ------- -------
Total from Investment
Operations 0.11 0.26 (1.37) (0.26) 2.30 (2.74)
------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Distributions from Net
Investment Income (0.09) (0.08) -- -- -- (0.01)
------- ------- ------- ------- ------- -------
Net Asset Value per
Share, End of Period $ 6.44 $ 6.42 $ 6.24 $ 7.61 $ 7.87 $ 5.57
======= ======= ======= ======= ======= =======
Total Return 1.69% (3) 4.14% (18.00)% (3.30)% 41.29% (32.97)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period
(in thousands) $16,489 $24,504 $27,981 $35,406 $26,591 $18,763
Ratio of Expenses to
Average Net Assets 1.69% (1) 1.64% 1.65% 1.47% 2.02%(2) 1.70%
Ratio of Net Investment
Income (Loss) to
Average Net Assets 1.61% (1) 1.16% 1.03% 0.08% (0.24)% 1.15%
Portfolio Turnover Rate 15.81% (3) 17.34% 43.10% 84.76% 152.93% 102.28%
</Table>
(1) ANNUALIZED.
(2) THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO REDUCE ITS FEE, OR TO PAY THE
OPERATING EXPENSES OF THE FUND AS DISCLOSED IN NOTE 5 OF THE NOTES TO THE
FINANCIAL STATEMENTS FOR THE YEAR ENDED OCTOBER 31, 1999. HAD SUCH ACTION
NOT BEEN TAKEN, TOTAL OPERATING EXPENSES, AS A PERCENTAGE OF NET ASSETS,
WOULD HAVE BEEN 2.50% FOR THE YEAR ENDED OCTOBER 31, 1999.
(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.
33
<Page>
TCW GALILEO EMERGING MARKETS INCOME FUND
--------------------------------------------------------------------------------
I CLASS
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
JUNE 3, 1998
SIX MONTHS (COMMENCEMENT
ENDED YEAR ENDED OCTOBER 31, OF OPERATIONS)
APRIL 30, 2003 ---------------------------------------------------- THROUGH
(UNAUDITED) 2002 (3) 2001 2000 1999 OCTOBER 31, 1998
-------------- ---------- ---------- ---------- ---------- ----------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value per
Share, Beginning of
Period $ 7.93 $ 8.21 $ 8.15 $ 7.84 $ 6.58 $ 10.00
------- ------- ------- -------- ------- -------
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net Investment Income (5) 0.44 0.76 0.78 0.85 0.84 0.37
Net Realized and
Unrealized Gain (Loss)
on Investments 1.40 0.25 0.13 0.30 1.25 (3.41)
------- ------- ------- -------- ------- -------
Total from Investment
Operations 1.84 1.01 0.91 1.15 2.09 (3.04)
------- ------- ------- -------- ------- -------
LESS DISTRIBUTIONS:
Distributions from Net
Investment Income (0.37) (0.71) (0.78) (0.84) (0.83) (0.38)
Distributions from Net
Realized Gain (0.14) (0.58) (0.07) -- -- --
------- ------- ------- -------- ------- -------
Total Distributions (0.51) (1.29) (0.85) (0.84) (0.83) (0.38)
------- ------- ------- -------- ------- -------
Net Asset Value per
Share, End of Period $ 9.26 $ 7.93 $ 8.21 $ 8.15 $ 7.84 $ 6.58
======= ======= ======= ======== ======= =======
Total Return 23.86% (4) 12.96% 11.77% 15.12% 33.31% (30.67)%(1)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period
(in thousands) $56,636 $81,758 $21,374 $110,961 $81,113 $30,090
Ratio of Expenses to
Average Net Assets 1.01% (2) 1.10% 1.08% 0.99% 1.01% 1.53% (2)
Ratio of Net Investment
Income to Average Net
Assets 10.64% (2) 9.52% 9.50% 10.22% 11.37% 11.90% (2)
Portfolio Turnover Rate 54.76% (4) 73.13% 58.46% 109.20% 113.00% 68.46% (1)
</Table>
(1) FOR THE PERIOD JUNE 3, 1998 (COMMENCEMENT OF OPERATIONS) THROUGH OCTOBER
31, 1998 AND NOT INDICATIVE OF A FULL YEAR'S OPERATING RESULTS.
(2) ANNUALIZED.
(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 INCREASE NET INVESTMENT INCOME PER SHARE BY $0.107, DECREASE NET
REALIZED GAINS AND LOSSES PER SHARE BY $0.107 AND INCREASE THE RATIO OF NET
INVESTMENT INCOME TO AVERAGE NET ASSETS FROM 8.18% TO 9.52%. 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.
34
<Page>
TCW GALILEO EUROPEAN GROWTH EQUITIES FUND
[ICON]
--------------------------------------------------------------------------------
I CLASS
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
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
-------------- ---------- ---------- ---------- ---------- ----------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value per
Share, Beginning of
Period $ 6.64 $ 8.71 $ 13.94 $ 13.11 $ 11.70 $ 10.00
------ ------- ------- ------- ------- -------
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net Investment Income
(Loss) (5) -- (0.01) -- (0.01) 0.07 0.06
Net Realized and
Unrealized Gain (Loss)
on Investments (0.01) (1.95) (4.27) 1.44 1.65 1.64
------ ------- ------- ------- ------- -------
Total from Investment
Operations (0.01) (1.96) (4.27) 1.43 1.72 1.70
------ ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Distributions from Net
Investment Income -- (0.11) -- (0.05) (0.03) --
Distributions from Net
Realized Gain -- -- (0.96) (0.55) (0.28) --
------ ------- ------- ------- ------- -------
Total Distributions -- (0.11) (0.96) (0.60) (0.31) --
------ ------- ------- ------- ------- -------
Net Asset Value per
Share, End of Period $ 6.63 $ 6.64 $ 8.71 $ 13.94 $ 13.11 $ 11.70
====== ======= ======= ======= ======= =======
Total Return (0.15)% (4) (22.86)% (32.79)% 10.82% 15.16% 17.00% (1)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period
(in thousands) $6,482 $ 7,570 $18,502 $65,054 $95,489 $63,994
Ratio of Expenses to
Average Net Assets 2.22% (2)(3) 1.82%(3) 1.32% 1.12% 1.01% 1.06% (2)
Ratio of Net Investment
Income (Loss) to
Average Net Assets 0.02% (2) (0.13)% 0.01% (0.09)% 0.58% 0.52% (2)
Portfolio Turnover Rate 38.05% (4) 58.98% 97.47% 96.40% 95.21% 72.05% (1)
</Table>
(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) THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO REDUCE ITS FEE, OR TO PAY THE
OPERATING EXPENSES OF THE FUND AS DISCLOSED IN NOTE 5 OF THE NOTES TO THE
FINANCIAL STATEMENTS. HAD SUCH ACTION NOT BEEN TAKEN, TOTAL ANNUALIZED
OPERATING EXPENSES, AS A PERCENTAGE OF AVERAGE NET ASSETS, WOULD HAVE BEEN
2.94% FOR THE SIX MONTHS ENDED APRIL 30, 2003 AND 1.84% FOR THE YEAR ENDED
OCTOBER 31, 2002.
(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.
35
<Page>
TCW GALILEO SELECT INTERNATIONAL GROWTH EQUITIES FUND
--------------------------------------------------------------------------------
I CLASS
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 2003 --------------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999
-------------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value per
Share, Beginning of
Period $ 6.92 $ 8.32 $ 14.25 $ 13.67 $ 10.75
------- ------- ------- ------- --------
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net Investment Income (5) 0.01 0.01 0.79 1.93 0.21
Net Realized and
Unrealized Gain (Loss)
on Investments (0.19) (1.41) (5.07) (0.80) 2.73
------- ------- ------- ------- --------
Total from Investment
Operations (0.18) (1.40) (4.28) 1.13 2.94
------- ------- ------- ------- --------
LESS DISTRIBUTIONS:
Distributions from Net
Investment Income -- -- (1.65) -- (0.02)
Distributions from Net
Realized Gain -- -- -- (0.55) --
------- ------- ------- ------- --------
Total Distributions -- -- (1.65) (0.55) (0.02)
------- ------- ------- ------- --------
Net Asset Value per
Share, End of Period $ 6.74 $ 6.92 $ 8.32 $ 14.25 $ 13.67
======= ======= ======= ======= ========
Total Return (2.60)% (4) (16.83)% (33.69)% 8.07% 27.39%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period
(in thousands) $19,963 $36,661 $43,230 $46,909 $112,336
Ratio of Expenses to
Average Net Assets 1.37% (2) 1.17% 0.90%(3) 0.25% 0.18%
Ratio of Net Investment
Income to Average Net
Assets 0.19% (2) 0.16% 7.45% 12.28% 1.70%
Portfolio Turnover Rate 47.77% (4) 123.93% 193.27% 36.08% 27.78%
</Table>
(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) THE INVESTMENT ADVISOR VOLUNTARILY AGREED TO REDUCE ITS FEE, OR TO PAY THE
OPERATING EXPENSES OF THE FUND AS DISCLOSED IN NOTE 5 OF THE NOTES TO THE
FINANCIAL STATEMENTS. HAD SUCH ACTION NOT BEEN TAKEN, TOTAL OPERATING
EXPENSES, AS A PERCENTAGE OF NET ASSETS, WOULD HAVE BEEN 1.14% FOR THE YEAR
ENDED 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.
36
<Page>
TCW GALILEO SELECT INTERNATIONAL GROWTH EQUITIES FUND
[ICON]
--------------------------------------------------------------------------------
N CLASS
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
FEBRUARY 1, 2003
(COMMENCEMENT OF
OFFERING OF
N CLASS SHARES)
THROUGH
APRIL 30, 2003
(UNAUDITED)
----------------
<S> <C>
Net Asset Value per Share, Beginning of Period $ 6.56
------
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (5) 0.03
Net Realized and Unrealized Gain on Investments 0.15
------
Total from Investment Operations 0.18
------
Net Asset Value per Share, End of Period $ 6.74
======
Total Return 2.74% (1)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $ --(4)
Ratio of Expenses to Average Net Assets 1.42% (2)(3)
Ratio of Net Investment Income to Average Net
Assets 1.71% (2)
Portfolio Turnover Rate 47.77% (1)
</Table>
(1) FOR THE PERIOD FEBRUARY 1, 2003 (COMMENCEMENT OF OFFERING OF N 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 AS DISCLOSED IN NOTE 5 OF THE NOTES TO THE
FINANCIAL STATEMENTS. HAD SUCH ACTION NOT BEEN TAKEN, TOTAL OPERATING
EXPENSES, AS A PERCENTAGE OF NET ASSETS, WOULD HAVE BEEN 8,052.14% FOR THE
PERIOD FEBRUARY 1, 2003 (COMMENCEMENT OF OFFERING OF N 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.
37
<Page>
TCW GALILEO SELECT INTERNATIONAL GROWTH EQUITIES FUND
--------------------------------------------------------------------------------
K CLASS
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
NOVEMBER 1, 2002
(COMMENCEMENT OF
OFFERING OF
K CLASS SHARES)
THROUGH
APRIL 30, 2003
(UNAUDITED)
----------------
<S> <C>
Net Asset Value per Share, Beginning of Period $ 6.92
------
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (5) 0.03
Net Realized and Unrealized (Loss) on Investments (0.21)
------
Total from Investment Operations (0.18)
------
Net Asset Value per Share, End of Period $ 6.74
======
Total Return (2.60)% (1)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $ --(4)
Ratio of Expenses to Average Net Assets 1.10% (2)(3)
Ratio of Net Investment Income to Average Net
Assets 0.77% (2)
Portfolio Turnover Rate 47.77% (1)
</Table>
(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 AS DISCLOSED IN NOTE 5 OF THE NOTES TO THE
FINANCIAL STATEMENTS. HAD SUCH ACTION NOT BEEN TAKEN, TOTAL OPERATING
EXPENSES, AS A PERCENTAGE OF NET ASSETS, WOULD HAVE BEEN 7,719.21% 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.
38
<Page>
[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
GALsarINT43003
<Page>
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).
<Page>
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
<Page>
EX-99.CERT
I, Alvin R. Albe, Jr., certify that:
1. I have reviewed this report on Form N-CSR of TCW Galileo Funds, Inc.;
2. Based on my knowledge, this report does not contain any untrue
statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect to
the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material
respects the financial condition, results of operations, changes in
net assets, and cash flows (if the financial statements are required
to include a statement of cash flows) of the registrant as of, and
for, the periods presented in this report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Rule 30a-2(c) under the Investment Company Act of 1940) for
the registrant and have:
(a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period for which this
report is being prepared;
(b) evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the
filing date of this report (the "Evaluation Date"); and
(c) presented in this report our conclusions about the effectiveness
of the disclosure controls and procedures based on our evaluation
as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based
on our most recent evaluation, to the registrant's auditors and the
audit committee of registrant's board of directors (or persons
performing the equivalent functions):
(a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's
ability to record, process, summarize, and report financial data
and have identified for the registrant's auditors any material
weaknesses in internal controls; and
(b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's
internal controls; and
<Page>
6. The registrant's other certifying officers and I have indicated in
this report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal
controls subsequent to the date of our most recent evaluation,
including any corrective actions with regard to significant
deficiencies and material weaknesses.
Date: June 19, 2003 /s/ Alvin R. Albe, Jr.
---------------------------
Alvin R. Albe, Jr.
Chief Executive Officer
<Page>
I, David S. DeVito, certify that:
1. I have reviewed this report on Form N-CSR of TCW Galileo Funds, Inc.;
2. Based on my knowledge, this report does not contain any untrue
statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect to
the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material
respects the financial condition, results of operations, changes in
net assets, and cash flows (if the financial statements are required
to include a statement of cash flows) of the registrant as of, and
for, the periods presented in this report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Rule 30a-2(c) under the Investment Company Act of 1940) for
the registrant and have:
(a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period for which this
report is being prepared;
(b) evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the
filing date of this report (the "Evaluation Date"); and
(c) presented in this report our conclusions about the effectiveness
of the disclosure controls and procedures based on our evaluation
as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based
on our most recent evaluation, to the registrant's auditors and the
audit committee of registrant's board of directors (or persons
performing the equivalent functions):
(a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's
ability to record, process, summarize, and report financial data
and have identified for the registrant's auditors any material
weaknesses in internal controls; and
(b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's
internal controls; and
<Page>
6. The registrant's other certifying officers and I have indicated in
this report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal
controls subsequent to the date of our most recent evaluation,
including any corrective actions with regard to significant
deficiencies and material weaknesses.
Date: June 19, 2003 /s/ David S. DeVito
---------------------------
David S. DeVito
Chief Financial Officer
<Page>
EX-99.906CERT
CERTIFICATION
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a)
and (b) of section 1350, chapter 63 of title 18, United States Code), each of
the undersigned officers of TCW Galileo Funds, Inc. do hereby certify, to such
officer's knowledge, that:
The semi-annual report on Form N-CSR of TCW Galileo Funds, Inc. for the
period ended April 30, 2003 (the "Form N-CSR") fully complies with the
requirements of Section 13(a) or 15(d) of the Securities Exchange Act of
1934 and information contained in the Form N-CSR fairly presents, in all
material respects, the financial condition and results of operations of TCW
Galileo Funds, Inc.
Date: June 19, 2003
/s/ Alvin R. Albe, Jr.
---------------------------
Alvin R. Albe, Jr.
Chief Executive Officer
/s/ David S. DeVito
---------------------------
David S. DeVito
Chief Financial Officer
A signed original of this written statement required by Section 906 has been
provided to TCW Galileo Funds, Inc. and will be retained by TCW Galileo Funds,
Inc. and furnished to the Securities and Exchange Commission or its staff upon
request.