<PAGE> PAGE 1
000 B000000 12/31/1998
000 C000000 0000802209
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 6.1
000 J000000 A
001 A000000 ECLIPSE FUNDS
001 B000000 811-4847
001 C000000 2125765773
002 A000000 144 E. 30TH STREET
002 B000000 NEW YORK
002 C000000 NY
002 D010000 10016
003 000000 N
004 000000 N
005 000000 N
006 000000 N
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007 B000000 4
007 C010100 1
007 C020100 SMALL CAP VALUE FUND
007 C030100 N
007 C010200 2
007 C020200 BALANCED FUND
007 C030200 N
007 C010300 3
007 C020300 ULTRA SHORT TERM INCOME FUND
007 C030300 N
007 C010400 4
007 C020400 MID-CAP VALUE FUND
007 C030400 N
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
007 C011100 11
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<PAGE> PAGE 2
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020 A000001 VANDHAM SECURITIES CORPORATION
020 B000001 22-3039058
020 C000001 279
020 A000002 STANDARD & POORS SECURITIES INC.
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020 A000003 INSTINET CORPORATION
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020 A000004 JOSEPHTHAL LYON & ROSS, INC.
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020 C000004 37
<PAGE> PAGE 3
020 A000005 OPPENHEIMER & CO. INC.
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020 A000006 PAINE WEBBER, INC.
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020 A000007 LIPPER ANALYTICAL SECURITIES CORP.
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<PAGE> PAGE 4
022 A000009 WILSHIRE ASSOCIATES
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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<PAGE> PAGE 9
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<PAGE> PAGE 10
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<PAGE> PAGE 11
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<PAGE> PAGE 12
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<PAGE> PAGE 13
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<PAGE> PAGE 14
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<PAGE> PAGE 15
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<PAGE> PAGE 16
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<PAGE> PAGE 17
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<PAGE> PAGE 18
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SIGNATURE JENNIFER MCHUGH
TITLE ATTORNEY
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000802209
<NAME> ECLIPSE FUNDS
<SERIES>
<NUMBER> 1
<NAME> ECLIPSE SMALL CAP VALUE FUND (FORMERLY ECLIPSE EQUITY FUND)
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> DEC-31-1998
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<NET-INVESTMENT-INCOME> (3,251)
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<NET-CHANGE-FROM-OPS> 6,313,095
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (36,324,385)
<DISTRIBUTIONS-OTHER> 0
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<NUMBER-OF-SHARES-REDEEMED> (8,191,231)
<SHARES-REINVESTED> 3,011,532
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<INTEREST-EXPENSE> 0
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<AVERAGE-NET-ASSETS> 197,832,553
<PER-SHARE-NAV-BEGIN> 14.190
<PER-SHARE-NII> 23.480
<PER-SHARE-GAIN-APPREC> (23.060)
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> (2.680)
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 11.930
<EXPENSE-RATIO> 1.1290
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000802209
<NAME> ECLIPSE FUNDS
<SERIES>
<NUMBER> 2
<NAME> ECLIPSE BALANCED FUND
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 119,955,064
<INVESTMENTS-AT-VALUE> 128,313,141
<RECEIVABLES> 1,092,492
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 129,405,633
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 540,352
<TOTAL-LIABILITIES> 540,352
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 120,982,097
<SHARES-COMMON-STOCK> 6,031,225
<SHARES-COMMON-PRIOR> 3,803,313
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 7,883,184
<NET-ASSETS> 128,865,281
<DIVIDEND-INCOME> 807,260
<INTEREST-INCOME> 2,732,990
<OTHER-INCOME> 0
<EXPENSES-NET> 849,196
<NET-INVESTMENT-INCOME> 2,691.054
<REALIZED-GAINS-CURRENT> 10,110,764
<APPREC-INCREASE-CURRENT> (5,047,773)
<NET-CHANGE-FROM-OPS> 7,754,045
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2,693,263)
<DISTRIBUTIONS-OF-GAINS> (10,583,448)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,342,278
<NUMBER-OF-SHARES-REDEEMED> (1,725,772)
<SHARES-REINVESTED> 611,406
<NET-CHANGE-IN-ASSETS> 44,619,215
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0.00
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 779,459
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 985,974
<AVERAGE-NET-ASSETS> 97,432,365
<PER-SHARE-NAV-BEGIN> 22.150
<PER-SHARE-NII> 1.190
<PER-SHARE-GAIN-APPREC> 0.560
<PER-SHARE-DIVIDEND> (0.610)
<PER-SHARE-DISTRIBUTIONS> (1.920)
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 21.370
<EXPENSE-RATIO> 0.8716
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000802209
<NAME> ECLIPSE FUNDS
<SERIES>
<NUMBER> 3
<NAME> ECLIPSE ULTRA SHORT TERM INCOME
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 8,639,453
<INVESTMENTS-AT-VALUE> 8,629,188
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<TOTAL-ASSETS> 8,766,381
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<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 45,806
<TOTAL-LIABILITIES> 45,806
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 8,818,007
<SHARES-COMMON-STOCK> 869,387
<SHARES-COMMON-PRIOR> 539,140
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (87,167)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (10,265)
<NET-ASSETS> 8,720,575
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 434,406
<OTHER-INCOME> 0
<EXPENSES-NET> 3,440
<NET-INVESTMENT-INCOME> 430,966
<REALIZED-GAINS-CURRENT> (18,923)
<APPREC-INCREASE-CURRENT> 873
<NET-CHANGE-FROM-OPS> 412,916
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (432,793)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 487,275
<NUMBER-OF-SHARES-REDEEMED> (196,979)
<SHARES-REINVESTED> 39,952
<NET-CHANGE-IN-ASSETS> 3,327,371
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (67,658.65)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 27,820
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 87,394
<AVERAGE-NET-ASSETS> 6,955,039
<PER-SHARE-NAV-BEGIN> 10.000
<PER-SHARE-NII> 0.5900
<PER-SHARE-GAIN-APPREC> 0.030
<PER-SHARE-DIVIDEND> (0.590)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 10.030
<EXPENSE-RATIO> 0.0495
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000802209
<NAME> ECLIPSE FUNDS
<SERIES>
<NUMBER> 4
<NAME> ECLIPSE MID CAP VALUE FUND (FORMERLY GROWTH AND INCOME FUND)
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 114,166,742
<INVESTMENTS-AT-VALUE> 125,140,328
<RECEIVABLES> 252,431
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 125,392,759
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 867,375
<TOTAL-LIABILITIES> 867,375
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 113,551,798
<SHARES-COMMON-STOCK> 7,022,041
<SHARES-COMMON-PRIOR> 6,161,320
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 10,973,586
<NET-ASSETS> 124,525,384
<DIVIDEND-INCOME> 1,415,601
<INTEREST-INCOME> 96,916
<OTHER-INCOME> 0
<EXPENSES-NET> 1,134,034
<NET-INVESTMENT-INCOME> 378,483
<REALIZED-GAINS-CURRENT> 11,470,206
<APPREC-INCREASE-CURRENT> (1,147,314)
<NET-CHANGE-FROM-OPS> 10,701,375
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (377,837)
<DISTRIBUTIONS-OF-GAINS> (11,471,120)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,859,741
<NUMBER-OF-SHARES-REDEEMED> (1,668,003)
<SHARES-REINVESTED> 668,983
<NET-CHANGE-IN-ASSETS> 15,073,777
<ACCUMULATED-NII-PRIOR> 10
<ACCUMULATED-GAINS-PRIOR> 0.00
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,038,228
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,204,860
<AVERAGE-NET-ASSETS> 115,358,637
<PER-SHARE-NAV-BEGIN> 17.760
<PER-SHARE-NII> 0.060
<PER-SHARE-GAIN-APPREC> 1.760
<PER-SHARE-DIVIDEND> (0.060)
<PER-SHARE-DISTRIBUTIONS> (1.790)
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 17.730
<EXPENSE-RATIO> 0.9800
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
REPORT OF CERTIFIED PUBLIC ACCOUNTANTS
To the Shareholders and
Board of Trustees of
Eclipse Funds
In planning and performing our audit of the financial statements of Eclipse
Funds, including the Ultra Short Term Income Fund, the Balanced Fund, the Mid
Cap Value Fund (formerly the Growth and Income Fund), and the Small Cap Value
Fund (formerly the Equity Fund), for the year ended December 31, 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, not to provide assurance on internal control.
The management of Eclipse Funds 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 safeguarding of assets against unauthorized
acquisition, use, or disposition.
Because of inherent limitations in internal control, error 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 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 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
internal control and its operation, including controls over 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 Eclipse Funds and the Securities and Exchange Commission.
McGladrey & Pullen, LLP
New York, New York
January 28, 1999
