<PAGE> PAGE 1
000 A000000 04/30/98
000 C000000 0000908939
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 THE U.S. FIXED INCOME PORTFOLIO
001 B000000 811-7858
001 C000000 8099496644
002 A000000 ELIZABETHAN SQUARE, 2ND FL, SHEDDEN ROAD
002 B000000 GEORGE TOWN
002 E010000 GRAND CAYMAN
002 E020000 E9
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004 000000 N
005 000000 N
006 000000 N
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007 C010400 4
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007 C011000 10
008 A000001 MORGAN GUARANTY TRUST COMPANY OF NEW YORK
008 B000001 A
008 C000001 801-999999
008 D010001 NEW YORK
008 D020001 NY
008 D030001 10036
010 A000001 FUNDS DISTRIBUTOR, INC.
010 B000001 8-420518
010 C010001 BOSTON
010 C020001 MA
010 C030001 02116
010 A000002 MORGAN GUARANTY TRUST COMPANY OF NEW YORK
010 B000002 8-49999
010 C010002 NEW YORK
010 C020002 NY
010 C030002 10036
010 A000003 PIERPONT GROUP,INC.
010 C010003 NEW YORK
010 C020003 NY
<PAGE> PAGE 2
010 C030003 10017
011 A000001 FUNDS DISTRIBUTOR, INC.
011 B000001 8-420518
011 C010001 BOSTON
011 C020001 MA
011 C030001 02116
012 A000001 STATE STREET BANK & TRUST CO.
012 B000001 85-50003
012 C010001 BOSTON
012 C020001 MA
012 C030001 02101
013 A000001 PRICE WATERHOUSE LLP
013 B010001 NEW YORK
013 B020001 NY
013 B030001 10036
014 A000001 JP MORGAN SECURITIES, INC.
014 B000001 8-99999
014 A000002 BOSTON INSTITUTIONAL SERVICES, INC.
014 B000002 8-999999
014 A000003 JP MORGAN SECURITIES LTD.
014 B000003 8-99999
014 A000004 FUNDS DISTRIBUTOR, INC.
014 B000004 8-420518
015 A000001 STATE STREET BANK & TRUST COMPANY
015 B000001 C
015 C010001 BOSTON
015 C020001 MA
015 C030001 02101
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019 A000000 Y
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022 A000001 GOLDMAN SACHS & CO.
022 B000001 13-5108880
022 C000001 4362048
022 D000001 69905
022 A000002 DEUTSCHE BANK
022 C000002 108704
022 D000002 49483
<PAGE> PAGE 3
022 A000003 SALOMON BROTHERS
022 C000003 76421
022 D000003 43217
022 A000004 UBS SECURITIES, INC.
022 C000004 56225
022 D000004 54281
022 A000005 LEHMAN BROTHERS
022 C000005 66502
022 D000005 40367
022 A000006 MORGAN STANLEY
022 C000006 80198
022 D000006 20430
022 A000007 SBC WARBURG
022 C000007 21984
022 D000007 55303
022 A000008 BEAR STEARNS
022 C000008 36126
022 D000008 32961
022 A000009 CS FIRST BOSTON
022 C000009 44414
022 D000009 13828
022 A000010 PAINE WEBBER
022 C000010 24749
022 D000010 27538
023 C000000 5077699
023 D000000 565332
024 000000 Y
025 A000001 BEAR STEARNS
025 C000001 D
025 D000001 2188
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025 C000002 D
025 D000002 5164
025 A000003 FIRST UNION-LEHMAN BROTHERS
025 C000003 D
025 D000003 2341
025 A000004 MERRILL LYNCH MORTGAGE INVESTORS
025 C000004 D
025 D000004 7572
025 A000005 MORGAN STANLEY
025 C000005 D
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<PAGE> PAGE 4
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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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SIGNATURE DOUGLAS C. CONROY
TITLE ASSISTANT TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial data extracted from the semi-annual
report dated April 30, 1998 for The U.S. Fixed Income Portfolio and is qualified
in its entirety by reference to such semi-annual report.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> APR-30-1998
<INVESTMENTS-AT-COST> 1,154,574
<INVESTMENTS-AT-VALUE> 1,172,833
<RECEIVABLES> 23,970
<ASSETS-OTHER> 1,750
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,198,553
<PAYABLE-FOR-SECURITIES> 23,921
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 856
<TOTAL-LIABILITIES> 24,777
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<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> 0
<NET-ASSETS> 1,173,776
<DIVIDEND-INCOME> 876
<INTEREST-INCOME> 38,208
<OTHER-INCOME> 0
<EXPENSES-NET> 2007
<NET-INVESTMENT-INCOME> 37,078
<REALIZED-GAINS-CURRENT> 4,009
<APPREC-INCREASE-CURRENT> (396)
<NET-CHANGE-FROM-OPS> 40,691
<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> 92,221
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,658
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,007
<AVERAGE-NET-ASSETS> 1,114,390
<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> 0.36
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
TRANSACTIONS SUBJECT TO RULE 10f-3 PROCEDURES
<TABLE>
- -------------------------------------------------------------------------------
<S> <C>
Portfolio: U S Fixed Income Portfolio Security Description: Senior Subordinated Notes
due
Issuer: Sun Healthcare Group, Inc. Offering Type: U.S. Registered
(US Registered, Eligible Muni, Eligible Foreign, Eligible 144A)
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
- ---- ------------------------------------------ ---------------- -------------------------------------- -----------------
In Compliance
REQUIRED INFORMATION ANSWER APPLICABLE RESTRICTION (Yes/No)
- ---- ------------------------------------------ ---------------- -------------------------------------- -----------------
- ---- ------------------------------------------ ---------------- --------------------------------------
1. Offering Date April 29, 1998 None N/A
2. Trade Date April 29, 1998 Must be the same as #1 Yes
3. Unit Price of Offering 99.679% None N/A
4. Price Paid per Unit 99.679% Must not exceed #3 Yes
5. Years of Issuer's Operations 3 Must be at least three years * Yes
Underwriting Type Firm Must be firm Yes
6.
Underwriting Spread 2.75% Investment Adviser determination to Yes
7. be made
Total Price paid by Portfolio $1,395,506 None N/A
8.
Total Size of Offering $125,000,000 None N/A
9.
Total Price Paid by Portfolio plus Total #10 divided by #9 must not exceed
10. Price Paid for same securities purchased 25% **($4,502,330/$125,000,000=3.60%) Yes
by the same investment adviser for other $4,502,330
investment companies
Underwriter(s) from whom the Portfolio
11. purchased (attach a prospectus or Bear Stearns & Must not include Investment Adviser
offering circular for a list of all Co affiliates *** Yes
syndicate members)
12. If the affiliate was lead or co-lead Yes
manager, was the instruction listed Must be "Yes" or "N/A" Yes
below given to the broker(s) named in
#11? ****
- ---- ------------------------------------------ ---------------- -------------------------------------- -----------------
</TABLE>
The Investment Adviser has no reasonable cause to believe that the
underwriting commission, spread or profit is NOT reasonable and fair compared to
underwritings of similar securities during a comparable period of time. In
determining which securities are comparable, the Investment Adviser has
considered the factors set forth in the Portfolio's 10f-3 procedures.
* Not applicable to munis. In the case of munis, (i) the issue must have
one investment grade rating or (ii) if the issuer or the revenue source has been
in operation for less than three years, the issue must have one of the three
highest ratings. Circle (i) or (ii), whichever is met.
** If an eligible Rule 144A offering, must not exceed 25% of the total
amount of same class sold to QIBs in the Rule 144A offering PLUS the amount of
the offering of the same class in any concurrent public offering
*** For munis purchased from syndicate manager, check box to confirm that
the purchase was not designated as a group sale. [ ]
**** No credit for the purchase made for the Portfolio can be credited to
the Investment Adviser's affiliate.
