<PAGE> PAGE 1
000 B000000 12/31/1998
000 C000000 0001004126
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 6.1
000 J000000 U
001 A000000 DECS TRUST
001 B000000 811-09138
001 C000000 2128155366
002 A000000 C/O BANK OF NEW YORK, 101 BARCLAY STREET
002 B000000 NEW YORK
002 C000000 NY
002 D010000 10286
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
013 A000001 DELOITTE & TOUCHE LLP
013 B010001 NEW YORK
013 B020001 NY
013 B030001 10281
013 B040001 1414
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
071 A000000 0
071 B000000 7000
071 C000000 59028
071 D000000 0
072 A000000 12
072 B000000 844
<PAGE> PAGE 2
072 C000000 0
072 D000000 0
072 E000000 0
072 F000000 0
072 G000000 40
072 H000000 0
072 I000000 0
072 J000000 0
072 K000000 16
072 L000000 0
072 M000000 12
072 N000000 0
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 18
072 S000000 16
072 T000000 0
072 U000000 0
072 V000000 0
072 W000000 0
072 X000000 102
072 Y000000 102
072 Z000000 844
072AA000000 0
072BB000000 0
072CC010000 0
072CC020000 55905
072DD010000 284
072DD020000 0
072EE000000 0
073 A010000 0.0815
073 A020000 0.0000
073 B000000 0.0000
073 C000000 1.9265
074 A000000 5
074 B000000 0
074 C000000 6846
074 D000000 4934
074 E000000 0
074 F000000 0
074 G000000 0
074 H000000 0
074 I000000 20905
074 J000000 0
074 K000000 0
074 L000000 0
074 M000000 0
074 N000000 32690
074 O000000 0
074 P000000 0
<PAGE> PAGE 3
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 0
074 S000000 0
074 T000000 32690
074 U010000 3484
074 U020000 0
074 V010000 9.38
074 V020000 0.00
074 W000000 0.0000
074 X000000 1
074 Y000000 0
075 A000000 0
075 B000000 59031
076 000000 9.38
077 A000000 Y
077 B000000 Y
077 C000000 N
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
080 A000000 NONE
080 C000000 0
081 A000000 N
081 B000000 0
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 N
085 B000000 N
SIGNATURE DONALD J. PUGLISI
TITLE MANAGING TRUSTEE
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the audited
financial statements of the Trust as of December 31, 1998 and for the year ended
December 31, 1998 and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 73,119,350
<INVESTMENTS-AT-VALUE> 32,684,592
<RECEIVABLES> 0
<ASSETS-OTHER> 4,920
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 32,689,512
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 72,314,406
<SHARES-COMMON-STOCK> 3,484,104
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 809,864
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (40,434,758)
<NET-ASSETS> 32,689,512
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 843,688
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 843,688
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> (55,905,185)
<NET-CHANGE-FROM-OPS> (55,061,497)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 283,927
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 6,712,153
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (62,057,577)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 101,838
<AVERAGE-NET-ASSETS> 59,031,188
<PER-SHARE-NAV-BEGIN> 27.19
<PER-SHARE-NII> 0.24
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0.08
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 1.93
<PER-SHARE-NAV-END> 9.38
<EXPENSE-RATIO> 0
</TABLE>
DELOITTE &
TOUCHE
- ---------- ------------------------------------------------------------
Deloitte & Touche LLP Telephone: (212) 436-2000
Two World Financial Center Facsimile: (212) 436-5000
New York, New York 10281-1414
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders,
DECS Trust:
In planning and performing our audit of the financial statements of DECS Trust
(the "Trust") for the period ended December 31, 1998 (on which we have issued
our report dated July 8, 1999), 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 Trust's internal control.
The management of the Trust 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, misstatements due to
error or fraud may occur and not be detected. Also, projections of any
evaluation of internal control to future periods are subject to the risk that
the internal control may become inadequate because of changes in conditions, or
that the degree of compliance with policies or procedures may deteriorate.
Our consideration of the Trust's internal control would not necessarily disclose
all matters in the 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 misstatements caused by error 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
Trust's internal control and its operation, including controls for safeguarding
securities, that we consider to be material weaknesses as defined above as of
December 31, 1998.
This report is intended solely for the information and use of management, the
Board of Trustees of the Trust, and the Securities and Exchange Commission and
is not intended to be and should not be used by anyone other than these
specified parties.
/s/ Deloitte & Touche LLP
July 8, 1999
- ---------------
Deloitte Touche
Tohmatsu
- ---------------