000 B000000 10/31/98
000 C000000 0001003015
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 U
001 A000000 INTERNATIONAL EQUITY PORTFOLIO
001 B000000 811-8996
001 C000000 8099494719
002 A000000 BUTTERFIELD HOUSE, FORT STREET, BOX 2330
002 B000000 GEORGE TOWN
002 E010000 CAYMAN ISLANDS, BWI
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004 000000 N
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028 A040000 480
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028 G010000 4934
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028 G040000 18460
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SIGNATURE SUSAN JAKUBOSKI
TITLE ASSISTANT TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the
International Equity Portfolio Annual Report dated October 31, 1998, and is
qualified in its entirety by reference to such report.
</LEGEND>
<CIK> 0001003015
<NAME> INTERNATIONAL EQUITY PORTFOLIO
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> OCT-31-1998
<INVESTMENTS-AT-COST> 63,513,355
<INVESTMENTS-AT-VALUE> 69,631,820
<RECEIVABLES> 326,997
<ASSETS-OTHER> 1,259
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 69,966,108
<PAYABLE-FOR-SECURITIES> 1,690,918
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,642,609
<TOTAL-LIABILITIES> 3,333,527
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 62,098,849
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,533,732
<NET-ASSETS> 66,632,581
<DIVIDEND-INCOME> 850,915
<INTEREST-INCOME> 65,651
<OTHER-INCOME> 0
<EXPENSES-NET> 531,963
<NET-INVESTMENT-INCOME> 384,603
<REALIZED-GAINS-CURRENT> 933,148
<APPREC-INCREASE-CURRENT> 4,125,305
<NET-CHANGE-FROM-OPS> 5,443,056
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 20,594,774
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 448,851
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 531,963
<AVERAGE-NET-ASSETS> 62,662,830
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0.76
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
To the Board of Trustees and Shareholders of
U.S. Small Company Portfolio:
In planning and performing our audit of the financial statements of U.S.
Small Company Portfolio for the year ended October 31, 1998, on which we have
issued our report dated December 11, 1998, we considered its internal control,
including control activities for safeguarding securities, in order to determine
our auditing procedures for the purpose of expressing our opinion on the
financial statements and to comply with the requirements of Form N-SAR, and not
to provide assurance on the internal control.
The management of U.S. Small Company Portfolio, Inc. is responsible for
establishing and maintaining internal control. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of controls. Generally, controls that are
relevant to an audit pertain to the entity's objective of preparing financial
statements for external purposes that are fairly presented in conformity with
generally accepted accounting principles. Those controls include the
safeguarding of assets against unauthorized acquisition, use or disposition.
Because of inherent limitations in any internal control, errors or fraud
may occur and not be detected. Also, projection of any evaluation of internal
control to future periods is subject to the risk that it may become inadequate
because of changes in conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of the internal control would not necessarily disclose
all matters in internal control that might be material weaknesses under
standards established by the American Institute of Certified Public Accountants.
A material weakness is a condition in which the design or operation of one or
more of the internal control components does not reduce to a relatively low
level the risk that errors or fraud in amounts that would be material in
relation to the financial statements being audited may occur and not be detected
within a timely period by employees in the normal course of performing their
assigned functions. However, we noted no matters involving the internal control
and its operation, including controls for safeguarding securities, that we
consider to be material weaknesses as defined above as of October 31, 1998.
This report is intended solely for the information and use of management
and the Securities and Exchange Commission.
December 11, 1998
/s/ Deloitte & Touche LLP
