<PAGE> PAGE 1
000 B000000 10/31/95
000 C000000 0000872687
000 D000000 N
000 E000000 NF
000 F000000 Y
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000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 ADJUSTABLE RATE SECURITIES PORTFOLIOS
001 B000000 811-6242
001 C000000 4153122000
002 A000000 777 MARINERS ISLAND BOULEVARD
002 B000000 SAN MATEO
002 C000000 CA
002 D010000 94404
002 D020000 1585
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004 000000 N
005 000000 N
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007 C020100 U.S. GOV'T ADJUSTABLE RATE MORTGAGE PORTFOLIO
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007 C020200 ADJUSTABLE RATE SECURITIES PORTFOLIO
007 C030200 N
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A00AA01 FRANKLIN ADVISERS, INC.
008 B00AA01 A
008 C00AA01 801-26292
008 D01AA01 SAN MATEO
008 D02AA01 CA
008 D03AA01 94403
008 D04AA01 7777
012 A00AA01 FRANKLIN/TEMPLETON INVESTOR SERVICES, INC.
012 B00AA01 84-1036
012 C01AA01 SAN MATEO
012 C02AA01 CA
012 C03AA01 94403
012 C04AA01 7777
013 A00AA01 COOPERS & LYBRAND L.L.P.
<PAGE> PAGE 2
013 B01AA01 SAN FRANCISCO
013 B02AA01 CA
013 B03AA01 94105
013 B04AA01 2119
014 A00AA01 FRANKLIN/TEMPLETON DISTRIBUTORS, INC.
014 B00AA01 8-5889
015 A00AA01 BANK OF AMERICA NT & SA
015 B00AA01 C
015 C01AA01 SAN FRANCISCO
015 C02AA01 CA
015 C03AA01 94104
015 C04AA01 1502
015 E01AA01 X
018 00AA00 Y
019 A00AA00 Y
019 B00AA00 189
019 C00AA00 FRNKTEMGRP
020 C000001 0
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022 A000001 LEHMAN BROTHERS SECS
022 B000001 13-2518466
022 C000001 1180925
022 D000001 57899
022 A000002 DAIWA SECURITIES AMERICA INC
022 B000002 13-5680329
022 C000002 845700
022 D000002 0
022 A000003 SBCI SWISS BANK CORP INV BANK
022 B000003 13-2639550
022 C000003 356542
022 D000003 0
022 A000004 PAINEWEBBER INC
022 B000004 13-2638166
022 C000004 106644
022 D000004 244229
022 A000005 CHASE MANHATTAN BANK NA (THE)
022 B000005 13-2633612
022 C000005 159996
022 D000005 0
022 A000006 CITICORP
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022 C000006 150258
<PAGE> PAGE 3
022 D000006 0
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022 B000007 13-2655998
022 C000007 35001
022 D000007 90496
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022 B000008 22-2347336
022 C000008 51161
022 D000008 37370
022 A000009 FUJI SECURITIES INC
022 B000009 13-3038090
022 C000009 46149
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022 A000010 UBS SECURITIES INC
022 B000010 13-2932996
022 C000010 54046
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<PAGE> PAGE 4
039 00AA00 N
040 00AA00 N
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051 00AA00 N
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054 B00AA00 Y
054 C00AA00 Y
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<PAGE> PAGE 5
054 G00AA00 Y
054 H00AA00 Y
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054 J00AA00 Y
054 K00AA00 N
054 L00AA00 Y
054 M00AA00 Y
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077 A000000 Y
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080 A00AA00 ICI MUTUAL INSURANCE COMPANY
080 B00AA00 NONE
080 C00AA00 130000
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083 A00AA00 N
083 B00AA00 0
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<PAGE> PAGE 6
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<PAGE> PAGE 7
064 B000100 N
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070 D020100 N
070 E010100 N
070 E020100 N
070 F010100 N
070 F020100 N
070 G010100 N
070 G020100 N
070 H010100 N
070 H020100 N
070 I010100 N
070 I020100 N
070 J010100 Y
070 J020100 N
070 K010100 Y
070 K020100 N
070 L010100 N
070 L020100 N
070 M010100 N
070 M020100 N
070 N010100 Y
070 N020100 N
070 O010100 Y
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070 P010100 Y
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070 Q010100 N
070 Q020100 N
070 R010100 N
070 R020100 N
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071 B000100 344966
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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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070 B020200 N
070 C010200 N
070 C020200 N
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070 D020200 N
070 E010200 N
070 E020200 N
070 F010200 N
070 F020200 N
070 G010200 N
070 G020200 N
070 H010200 N
070 H020200 N
070 I010200 N
070 I020200 N
070 J010200 Y
070 J020200 N
070 K010200 Y
070 K020200 N
070 L010200 N
070 L020200 N
070 M010200 N
070 M020200 N
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070 O010200 Y
070 O020200 N
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070 P020200 Y
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070 Q020200 N
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070 R020200 N
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071 B000200 25825
<PAGE> PAGE 11
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071 D000200 50
072 A000200 12
072 B000200 1971
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<PAGE> PAGE 12
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SIGNATURE DIOMEDES LOO-TAM
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
ADJUSTABLE RATE SECURITIES PORTFOLIO OCTOBER 31, 1995 ANNUAL REPORT AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 1
<NAME> U.S. GOVERNMENT ADJUSTABLE RATE MORTGAGE PORTFOLIO
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 507,934,470
<INVESTMENTS-AT-VALUE> 505,313,743
<RECEIVABLES> 14,565,633
<ASSETS-OTHER> 3,137,654
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 523,017,030
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 215,073
<TOTAL-LIABILITIES> 215,073
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 662,823,970
<SHARES-COMMON-STOCK> 56,035,644
<SHARES-COMMON-PRIOR> 81,367,809
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (137,401,286)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (2,620,727)
<NET-ASSETS> 522,801,957
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 39,043,371
<OTHER-INCOME> 0
<EXPENSES-NET> (1,124,104)
<NET-INVESTMENT-INCOME> 37,919,267
<REALIZED-GAINS-CURRENT> (7,672,691)
<APPREC-INCREASE-CURRENT> 16,342,196
<NET-CHANGE-FROM-OPS> 46,588,772
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (37,919,267)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 8,454,626
<NUMBER-OF-SHARES-REDEEMED> (37,893,534)
<SHARES-REINVESTED> 4,106,743
<NET-CHANGE-IN-ASSETS> (224,669,157)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (129,728,595)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,456,413
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,612,440
<AVERAGE-NET-ASSETS> 614,147,144
<PER-SHARE-NAV-BEGIN> 9.190
<PER-SHARE-NII> .572
<PER-SHARE-GAIN-APPREC> .140
<PER-SHARE-DIVIDEND> (.572)
<PER-SHARE-DISTRIBUTIONS> .000
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 9.330
<EXPENSE-RATIO> .180
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
THE ADJUSTABLE RATE SECURITIES PORTFOLIOS OCTOBER 31, 1995 ANNUAL
REPORT AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 2
<NAME> ADJUSTABLE RATE SECURITIES PORTFOLIO
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 26,823,730
<INVESTMENTS-AT-VALUE> 26,279,717
<RECEIVABLES> 941,391
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 2,745
<TOTAL-ASSETS> 27,223,853
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 144,953
<TOTAL-LIABILITIES> 144,953
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 30,328,801
<SHARES-COMMON-STOCK> 2,760,971
<SHARES-COMMON-PRIOR> 4,297,010
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (2,705,888)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (544,013)
<NET-ASSETS> 27,078,900
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,971,336
<OTHER-INCOME> 0
<EXPENSES-NET> (74,899)
<NET-INVESTMENT-INCOME> 1,896,437
<REALIZED-GAINS-CURRENT> (602,782)
<APPREC-INCREASE-CURRENT> 913,301
<NET-CHANGE-FROM-OPS> 2,206,956
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,896,437)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,241,431
<NUMBER-OF-SHARES-REDEEMED> (2,973,631)
<SHARES-REINVESTED> 196,161
<NET-CHANGE-IN-ASSETS> (14,539,853)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (2,103,106)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 119,324
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 138,839
<AVERAGE-NET-ASSETS> 29,814,970
<PER-SHARE-NAV-BEGIN> 9.690
<PER-SHARE-NII> .625
<PER-SHARE-GAIN-APPREC> .120
<PER-SHARE-DIVIDEND> (.625)
<PER-SHARE-DISTRIBUTIONS> .000
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 9.810
<EXPENSE-RATIO> .250
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Trustees
of Adjustable Rate Securities Portfolios:
In planning and performing our audit of the financial statements
and financial highlights of Adjustable Rate Securities
Portfolios for the year ended October 31, 1995, we considered
its internal control structure, including procedures for
safeguarding
securities, in order to determine our auditing procedures for the
purpose of expressing our opinion on the financial statements and
financial highlights and to comply with the requirements of Form
N-SAR, not to provide assurance on the internal control
structure.
The management of Adjustable Rate Securities Portfolios is
responsible
for establishing and maintaining an internal control structure.
In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and
related
costs of internal control structure policies and procedures. Two
of the objectives of an internal control structure are to provide
management with reasonable, but not absolute, assurance that
assets
are safeguarded against loss from unauthorized use or disposition
and that transactions are executed in accordance with
management's
authorization and recorded properly to permit preparation of
financial statements in conformity with generally accepted
accounting
principles.
Because of inherent limitations in any internal control
structure,
errors or irregularities may occur and not be detected. Also,
projection of any evaluation of the structure 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 structure would not
necessarily disclose all matters in the internal control
structure
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 the
specific internal control structure elements does not reduce to a
relatively low level the risk that errors or irregularities in
amounts that would be material in relation to the financial
statements
and financial highlights 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 structure, including procedures
for
safeguarding securities, that we consider to be material
weaknesses,
as defined above, as of October 31, 1995.
This report is intended solely for the information and use of
management of Adjustable Rate Securities Portfolios and the
Securities
and Exchange Commission.
S\COOPERS AND LYBRAND
Coopers and Lybrand L.L.P.
San Francisco, California
December 8, 1995
NAME OF REGISTRANT:
Adjustable Rate Securities Portfolios
File No. 811-6242
EXHIBIT ITEM No. 77D:
Policies with respect to security investments
At a meeting of the Board of Trustees on December 13, 1994, the
following resolution was approved:
RESOLVED, that the Prospectus for the Adjustable Rate
Securities Portfolio (the "Fund") be amended or supplemented
to the extent necessary to indicate that the Fund may invest
up to 35% of its total net assets in (1) collateralized
mortgage obligations ("CMOs") backed by fixed-rate pass-
throughs, whole loan mortgages or stripped mortgage-backed
securities rated AA or better; (2) fixed-rate premium pass-
through mortgage securities rated AA or better; (3) asset-
backed securities rated AA or better; and (4) Small Business
Administration ("SBA") securities.
