<PAGE> PAGE 1
000 B000000 10/31/98
000 C000000 0000872687
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 ADJUSTABLE RATE SECURITIES PORTFOLIOS
001 B000000 811-6242
001 C000000 6503122000
002 A000000 777 MARINERS ISLAND BOULEVARD
002 B000000 SAN MATEO
002 C000000 CA
002 D010000 94404
002 D020000 1585
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 2
007 C010100 1
007 C020100 U.S. GOV'T ADJUSTABLE RATE MORTGAGE PORTFOLIO
007 C030100 N
007 C010200 2
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 94404
008 D04AA01 1585
010 A00AA01 DELETE
012 A00AA01 FRANKLIN/TEMPLETON INVESTOR SERVICES, INC.
012 B00AA01 84-1036
012 C01AA01 SAN MATEO
012 C02AA01 CA
012 C03AA01 94404
012 C04AA01 1585
<PAGE> PAGE 2
013 A00AA01 PRICEWATERHOUSE COOPERS LLP
013 B01AA01 SAN FRANCISCO
013 B02AA01 CA
013 B03AA01 94105
013 B04AA01 2119
015 A00AA01 BANK OF NEW YORK
015 B00AA01 C
015 C01AA01 NEW YORK
015 C02AA01 NY
015 C03AA01 10286
015 E01AA01 X
015 A00AA02 DELETE
018 00AA00 Y
019 A00AA00 Y
019 B00AA00 203
019 C00AA00 FRNKTEMGRP
020 C000001 0
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 0
022 A000001 DONALDSON LUFKIN & JENRETTE
022 B000001 13-2741729
022 C000001 536183
022 D000001 0
022 A000002 BARCLAYS CAPITAL INC.
022 B000002 13-3551367
022 C000002 516559
022 D000002 0
022 A000003 CIBC WOOD GUNDY SECURITY
022 B000003 13-3639028
022 C000003 487246
022 D000003 0
022 A000004 LEHMAN BROTHERS, INC.
022 B000004 13-2518466
022 C000004 463903
022 D000004 0
022 A000005 GREENWICH CAPTIAL MARKETS, INC.
022 B000005 13-3122275
022 C000005 459102
022 D000005 0
022 A000006 PARIBAS CORP./CAPITAL MARKETS
022 B000006 13-3235334
022 C000006 421843
022 D000006 0
<PAGE> PAGE 3
022 A000007 WARBURG DILLION READ
022 B000007 13-2932996
022 C000007 419253
022 D000007 0
022 A000008 BT ALEX BROWN
022 B000008 13-3311934
022 C000008 412884
022 D000008 0
022 A000009 SWISS BANK CORP. CAPITAL MARKET
022 B000009 13-2639550
022 C000009 412626
022 D000009 0
022 A000010 DRESDNER KLEINWORT BENSON
022 B000010 04-2442748
022 C000010 392808
022 D000010 0
023 C000000 5838639
023 D000000 84347
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025 D00AA07 0
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026 G020000 N
026 H000000 N
027 000000 Y
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030 A00AA00 0
030 B00AA00 0.00
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031 A00AA00 0
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035 00AA00 0
036 B00AA00 0
037 00AA00 N
038 00AA00 0
039 00AA00 N
<PAGE> PAGE 4
040 00AA00 N
041 00AA00 N
042 A00AA00 0
042 B00AA00 0
042 C00AA00 0
042 D00AA00 0
042 E00AA00 0
042 F00AA00 0
042 G00AA00 0
042 H00AA00 0
043 00AA00 0
044 00AA00 0
045 00AA00 Y
046 00AA00 N
047 00AA00 Y
048 00AA00 0.000
048 A01AA00 5000000
048 A02AA00 0.400
048 B01AA00 5000000
048 B02AA00 0.350
048 C01AA00 5000000
048 C02AA00 0.330
048 D01AA00 0
048 D02AA00 0.000
048 E01AA00 0
048 E02AA00 0.000
048 F01AA00 0
048 F02AA00 0.000
048 G01AA00 0
048 G02AA00 0.000
048 H01AA00 0
048 H02AA00 0.000
048 I01AA00 0
048 I02AA00 0.000
048 J01AA00 0
048 J02AA00 0.000
048 K01AA00 15000000
048 K02AA00 0.300
049 00AA00 N
050 00AA00 N
051 00AA00 N
052 00AA00 N
053 A00AA00 Y
053 B00AA00 Y
053 C00AA00 N
054 A00AA00 Y
054 B00AA00 Y
054 C00AA00 Y
054 D00AA00 Y
054 E00AA00 Y
054 F00AA00 Y
<PAGE> PAGE 5
054 G00AA00 Y
054 H00AA00 Y
054 I00AA00 N
054 J00AA00 Y
054 K00AA00 Y
054 L00AA00 Y
054 M00AA00 Y
054 N00AA00 Y
054 O00AA00 Y
058 A00AA00 N
059 00AA00 Y
060 A00AA00 Y
060 B00AA00 Y
061 00AA00 0
066 A00AA00 N
067 00AA00 N
068 A00AA00 N
068 B00AA00 N
069 00AA00 N
077 A000000 Y
077 B000000 Y
077 Q010000 Y
078 000000 N
080 C00AA00 175000
081 A00AA00 Y
081 B00AA00 201
082 A00AA00 N
082 B00AA00 0
083 A00AA00 N
083 B00AA00 0
084 A00AA00 N
084 B00AA00 0
085 A00AA00 Y
085 B00AA00 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
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086 F020000 0
028 A010100 7061
028 A020100 1505
028 A030100 0
028 A040100 13283
028 B010100 10970
<PAGE> PAGE 6
028 B020100 1430
028 B030100 0
028 B040100 12763
028 C010100 8574
028 C020100 1382
028 C030100 0
028 C040100 16374
028 D010100 7534
028 D020100 1411
028 D030100 0
028 D040100 3971
028 E010100 8120
028 E020100 1487
028 E030100 0
028 E040100 11373
028 F010100 11475
028 F020100 1399
028 F030100 0
028 F040100 15392
028 G010100 53734
028 G020100 8614
028 G030100 0
028 G040100 73156
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055 A000100 N
055 B000100 N
056 000100 N
057 000100 N
062 A000100 Y
062 B000100 0.0
062 C000100 0.0
062 D000100 3.9
062 E000100 0.0
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062 N000100 94.9
062 O000100 0.0
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063 B000100 20.4
064 A000100 Y
064 B000100 N
070 A010100 Y
<PAGE> PAGE 7
070 A020100 Y
070 B010100 N
070 B020100 N
070 C010100 N
070 C020100 N
070 D010100 N
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
070 O020100 N
070 P010100 Y
070 P020100 Y
070 Q010100 N
070 Q020100 N
070 R010100 N
070 R020100 N
071 A000100 119139
071 B000100 159164
071 C000100 306109
071 D000100 39
072 A000100 12
072 B000100 19548
072 C000100 0
072 D000100 0
072 E000100 0
072 F000100 1273
072 G000100 0
072 H000100 0
072 I000100 0
072 J000100 3
072 K000100 0
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<PAGE> PAGE 8
072 M000100 9
072 N000100 0
072 O000100 0
072 P000100 0
072 Q000100 0
072 R000100 51
072 S000100 0
072 T000100 0
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072 V000100 0
072 W000100 17
072 X000100 1353
072 Y000100 515
072 Z000100 18710
072AA000100 291
072BB000100 20
072CC010100 0
072CC020100 3967
072DD010100 18710
072DD020100 0
072EE000100 0
073 A010100 0.5530
073 A020100 0.0000
073 B000100 0.0000
073 C000100 0.0000
074 A000100 0
074 B000100 11718
074 C000100 0
074 D000100 287123
074 E000100 0
074 F000100 0
074 G000100 0
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074 I000100 0
074 J000100 1866
074 K000100 51
074 L000100 2069
074 M000100 0
074 N000100 302827
074 O000100 0
074 P000100 102
074 Q000100 0
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074 R030100 0
074 R040100 291
074 S000100 0
074 T000100 302434
074 U010100 32278
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<PAGE> PAGE 9
074 V020100 0.00
074 W000100 0.0000
074 X000100 2
074 Y000100 17004
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028 A010200 923
028 A020200 127
028 A030200 0
028 A040200 3117
028 B010200 385
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028 B040200 746
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055 A000200 Y
055 B000200 N
056 000200 N
057 000200 N
062 A000200 Y
062 B000200 0.0
062 C000200 0.0
062 D000200 3.7
062 E000200 0.0
062 F000200 0.0
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062 H000200 0.0
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<PAGE> PAGE 10
062 L000200 0.0
062 M000200 10.4
062 N000200 37.1
062 O000200 0.0
062 P000200 0.0
062 Q000200 45.0
062 R000200 0.0
063 A000200 0
063 B000200 19.2
064 A000200 Y
064 B000200 N
070 A010200 Y
070 A020200 Y
070 B010200 N
070 B020200 N
070 C010200 N
070 C020200 N
070 D010200 N
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
070 N010200 Y
070 N020200 N
070 O010200 Y
070 O020200 N
070 P010200 Y
070 P020200 N
070 Q010200 N
070 Q020200 N
070 R010200 N
070 R020200 N
071 A000200 23002
071 B000200 17722
071 C000200 23194
071 D000200 76
<PAGE> PAGE 11
072 A000200 12
072 B000200 1503
072 C000200 0
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072 F000200 97
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072 R000200 3
072 S000200 2
072 T000200 0
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072 W000200 7
072 X000200 109
072 Y000200 45
072 Z000200 1439
072AA000200 14
072BB000200 90
072CC010200 41
072CC020200 0
072DD010200 1438
072DD020200 0
072EE000200 0
073 A010200 0.5940
073 A020200 0.0000
073 B000200 0.0000
073 C000200 0.0000
074 A000200 0
074 B000200 1093
074 C000200 0
074 D000200 27080
074 E000200 0
074 F000200 0
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074 K000200 0
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<PAGE> PAGE 12
074 O000200 0
074 P000200 10
074 Q000200 0
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074 R030200 0
074 R040200 25
074 S000200 0
074 T000200 29287
074 U010200 2946
074 U020200 0
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074 X000200 3
074 Y000200 1254
075 A000200 0
075 B000200 24198
076 000200 0.00
SIGNATURE KIMBERLY MONASTERIO
TITLE ASST. TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
ADJUSTABLE RATE SECURITIES PORTFOLIOS OCTOBER 31, 1998 ANNUAL REPORT AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 01
<NAME> U.S. GOVERNMENT ADJUSTABLE RATE MORTGAGE PORTFOLIO
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> OCT-31-1998
<INVESTMENTS-AT-COST> 288,023,487
<INVESTMENTS-AT-VALUE> 287,122,568
<RECEIVABLES> 15,704,310
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 302,826,878
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 393,135
<TOTAL-LIABILITIES> 393,135
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 440,190,429
<SHARES-COMMON-STOCK> 32,277,857
<SHARES-COMMON-PRIOR> 36,140,971
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (136,855,767)
<ACCUM-APPREC-OR-DEPREC> (900,919)
<NET-ASSETS> 302,433,743
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 19,548,300
<OTHER-INCOME> 0
<EXPENSES-NET> (838,659)
<NET-INVESTMENT-INCOME> 18,709,641
<REALIZED-GAINS-CURRENT> 271,114
<APPREC-INCREASE-CURRENT> (3,967,154)
<NET-CHANGE-FROM-OPS> 15,013,601
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (18,709,641)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 11,366,772
<NUMBER-OF-SHARES-REDEEMED> (17,212,608)
<SHARES-REINVESTED> 1,982,722
<NET-CHANGE-IN-ASSETS> (40,107,347)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (137,126,881)
<GROSS-ADVISORY-FEES> (1,272,933)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (1,353,167)
<AVERAGE-NET-ASSETS> 318,206,613
<PER-SHARE-NAV-BEGIN> 9.480
<PER-SHARE-NII> 0.553
<PER-SHARE-GAIN-APPREC> (0.110)
<PER-SHARE-DIVIDEND> (0.553)
<PER-SHARE-DISTRIBUTIONS> .000
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 9.370
<EXPENSE-RATIO> 0.260<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
<FN>
<F1>EXPENSE RATIO EXCLUDING WAIVER AND PAYMENTS BY AFFILIATE IS 0.430%. THESE
RATIOS ARE ANNUALIZED.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
ADJUSTABLE RATE SECURITIES PORTFOLIOS OCTOBER 31,1998 ANNUAL REPORT AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 02
<NAME> ADJUSTABLE RATE SECURITIES PORTFOLIO
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> OCT-31-1998
<INVESTMENTS-AT-COST> 27,182,951
<INVESTMENTS-AT-VALUE> 27,080,281
<RECEIVABLES> 2,241,714
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 29,321,995
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 34,688
<TOTAL-LIABILITIES> 34,688
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 32,193,959
<SHARES-COMMON-STOCK> 2,945,779
<SHARES-COMMON-PRIOR> 2,265,903
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (2,803,982)
<ACCUM-APPREC-OR-DEPREC> (102,670)
<NET-ASSETS> 29,287,307
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,503,199
<OTHER-INCOME> 0
<EXPENSES-NET> (63,925)
<NET-INVESTMENT-INCOME> 1,439,274
<REALIZED-GAINS-CURRENT> (75,829)
<APPREC-INCREASE-CURRENT> 40,875
<NET-CHANGE-FROM-OPS> 1,404,320
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,438,180)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,878,813
<NUMBER-OF-SHARES-REDEEMED> (1,343,424)
<SHARES-REINVESTED> 144,487
<NET-CHANGE-IN-ASSETS> 6,747,445
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (2,729,247)
<GROSS-ADVISORY-FEES> (96,734)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (109,270)
<AVERAGE-NET-ASSETS> 24,198,108
<PER-SHARE-NAV-BEGIN> 9.950
<PER-SHARE-NII> .595
<PER-SHARE-GAIN-APPREC> (.011)
<PER-SHARE-DIVIDEND> (.594)
<PER-SHARE-DISTRIBUTIONS> .000
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 9.940
<EXPENSE-RATIO> .260<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
<FN>
<F1>EXPENSE RATIO EXCLUDING WAIVER .45%
</FN>
</TABLE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the shareholders and Board of Trustees:
Adjustable Rate Securities Portfolios:
In planning and performing our audit of the financial
statements of Adjustable Rate Securities Portfolios for the
year ended October 31, 1998, we considered its internal
control, including controls over 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 the Adjustable Rate Securities Portfolios
is responsible for establishing and maintaining internal
control. In fulfilling this responsibility, estimates and
judgements 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, errors
or irregularities may occur and may 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 any specific internal control component 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 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,
including controls over 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.
PRICEWATERHOUSE COOPERS LLP
San Francisco, California
December 17, 1998
