<PAGE> PAGE 1
000 B000000 10/31/98
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
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
007 C011100 11
007 C011200 12
007 C011300 13
007 C011400 14
007 C011500 15
007 C011600 16
007 C011700 17
007 C011800 18
007 C011900 19
007 C012000 20
007 C012100 21
007 C012200 22
007 C012300 23
007 C012400 24
007 C012500 25
007 C012600 26
007 C012700 27
007 C012800 28
007 C012900 29
<PAGE> PAGE 2
007 C013000 30
007 C013100 31
007 C013200 32
007 C013300 33
007 C013400 34
007 C013500 35
007 C013600 36
007 C013700 37
007 C013800 38
007 C013900 39
007 C014000 40
007 C014100 41
007 C014200 42
007 C014300 43
007 C014400 44
007 C014500 45
007 C014600 46
007 C014700 47
007 C014800 48
007 C014900 49
007 C015000 50
007 C015100 51
007 C015200 52
007 C015300 53
007 C015400 54
007 C015500 55
007 C015600 56
007 C015700 57
007 C015800 58
007 C015900 59
007 C016000 60
007 C016100 61
007 C016200 62
007 C016300 63
007 C016400 64
007 C016500 65
007 C016600 66
007 C016700 67
007 C016800 68
007 C016900 69
007 C017000 70
007 C017100 71
007 C017200 72
007 C017300 73
007 C017400 74
007 C017500 75
007 C017600 76
007 C017700 77
007 C017800 78
007 C017900 79
007 C018000 80
<PAGE> PAGE 3
007 C018100 81
007 C018200 82
007 C018300 83
007 C018400 84
007 C018500 85
007 C018600 86
007 C018700 87
007 C018800 88
007 C018900 89
007 C019000 90
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
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.
<PAGE> PAGE 4
014 B000004 8-420518
015 A000001 STATE STREET BANK & TRUST COMPANY
015 B000001 C
015 C010001 BOSTON
015 C020001 MA
015 C030001 02101
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 69
019 C000000 JPM\PIERPO
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 GOLDMAN SACHS & CO.
022 B000001 13-5108880
022 C000001 10125495
022 D000001 188025
022 A000002 DEUTSCHE BANK
022 C000002 195950
022 D000002 127207
022 A000003 SALOMON BROTHERS
022 C000003 199497
022 D000003 94438
022 A000004 LEHMNAN BROS.
022 C000004 184349
022 D000004 79620
022 A000005 MORGAN STANLEY & CO.
022 C000005 164442
022 D000005 87079
022 A000006 GREENWICH CAPITAL
022 C000006 132224
022 D000006 60960
022 A000007 SBC WARBURG
022 C000007 56457
022 D000007 128514
022 A000008 MERRILL LYNCH
022 C000008 36136
022 D000008 130054
022 A000009 UBS SECURITIES
022 C000009 56225
022 D000009 81729
022 A000010 BEAR STEARNS
<PAGE> PAGE 5
022 C000010 45467
022 D000010 55556
023 C000000 11526425
023 D000000 1220637
024 000000 Y
025 A000001 BEAR STEARNS
025 C000001 D
025 D000001 2264
025 A000002 DELETE
025 D000002 0
025 A000003 FIRST UNION-LEHMAN BROTHERS
025 C000003 D
025 D000003 8554
025 A000004 MERRILL LYNCH MORTGAGE INVESTORS
025 C000004 D
025 D000004 4285
025 A000005 MORGAN STANLEY
025 C000005 D
025 D000005 6391
025 D000006 0
025 D000007 0
025 D000008 0
025 D000009 0
025 D000010 0
025 D000011 0
025 D000012 0
025 D000013 0
025 D000014 0
025 D000015 0
025 D000016 0
025 D000017 0
025 D000018 0
025 D000019 0
025 D000020 0
025 D000021 0
025 D000022 0
025 D000023 0
025 D000024 0
026 A000000 N
026 B000000 N
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 31704
028 A020000 0
028 A030000 0
<PAGE> PAGE 6
028 A040000 19551
028 B010000 52304
028 B020000 0
028 B030000 0
028 B040000 13696
028 C010000 80529
028 C020000 0
028 C030000 0
028 C040000 27671
028 D010000 45695
028 D020000 0
028 D030000 0
028 D040000 48895
028 E010000 57252
028 E020000 0
028 E030000 0
028 E040000 36262
028 F010000 49424
028 F020000 0
028 F030000 0
028 F040000 53259
028 G010000 316908
028 G020000 0
028 G030000 0
028 G040000 199334
028 H000000 0
029 000000 N
030 A000000 0
030 B000000 0.00
030 C000000 0.00
031 A000000 0
031 B000000 0
032 000000 0
033 000000 0
034 000000 N
035 000000 0
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
040 000000 N
041 000000 N
042 A000000 0
042 B000000 0
042 C000000 0
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 0
<PAGE> PAGE 7
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.300
048 A010000 0
048 A020000 0.000
048 B010000 0
048 B020000 0.000
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 N
054 A000000 Y
054 B000000 N
054 C000000 N
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 N
054 I000000 N
054 J000000 N
054 K000000 N
054 L000000 N
054 M000000 N
054 N000000 N
054 O000000 N
055 A000000 N
055 B000000 N
056 000000 Y
057 000000 N
<PAGE> PAGE 8
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 0
062 A000000 Y
062 B000000 0.0
062 C000000 0.7
062 D000000 5.2
062 E000000 0.0
062 F000000 0.4
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 22.3
062 N000000 29.4
062 O000000 0.0
062 P000000 28.6
062 Q000000 13.9
062 R000000 1.2
063 A000000 0
063 B000000 4.9
064 A000000 N
064 B000000 N
066 A000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 Y
070 B010000 N
070 B020000 N
070 C010000 Y
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 Y
070 E020000 Y
070 F010000 N
070 F020000 N
070 G010000 Y
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
<PAGE> PAGE 9
070 J020000 Y
070 K010000 Y
070 K020000 N
070 L010000 Y
070 L020000 Y
070 M010000 Y
070 M020000 Y
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 Y
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 1547592
071 B000000 1325805
071 C000000 1148487
071 D000000 115
072 A000000 12
072 B000000 79125
072 C000000 1847
072 D000000 0
072 E000000 0
072 F000000 3583
072 G000000 407
072 H000000 0
072 I000000 0
072 J000000 266
072 K000000 0
072 L000000 9
072 M000000 11
072 N000000 0
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 37
072 S000000 22
072 T000000 0
072 U000000 0
072 V000000 0
072 W000000 6
072 X000000 4341
072 Y000000 0
072 Z000000 76631
072AA000000 14579
072BB000000 0
072CC010000 0
072CC020000 5172
<PAGE> PAGE 10
072DD010000 0
072DD020000 0
072EE000000 0
073 A010000 0.0000
073 A020000 0.0000
073 B000000 0.0000
073 C000000 0.0000
074 A000000 1714
074 B000000 69829
074 C000000 14974
074 D000000 1268364
074 E000000 17367
074 F000000 0
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 76136
074 K000000 0
074 L000000 15400
074 M000000 924
074 N000000 1464708
074 O000000 115843
074 P000000 377
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 1298
074 S000000 0
074 T000000 1347190
074 U010000 0
074 U020000 0
074 V010000 0.00
074 V020000 0.00
074 W000000 0.0000
074 X000000 3
074 Y000000 268654
075 A000000 0
075 B000000 1194353
076 000000 0.00
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
<PAGE> PAGE 11
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 Y
077 P000000 N
077 Q010000 N
077 Q020000 N
077 Q030000 N
078 000000 N
080 A000000 GULF INSURANCE CO.
080 C000000 25000
081 A000000 Y
081 B000000 19
082 A000000 Y
082 B000000 3
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 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
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE GEORGE E. RIO
TITLE ASSISTANT TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial data extracted from the "annual" report
dated "October 31, 1998" for the "U.S. Fixed Income Portfolio" and is qualified
in its entirety by reference to such "annual " report.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> OCT-31-1998
<INVESTMENTS-AT-COST> 1347875
<INVESTMENTS-AT-VALUE> 1370534
<RECEIVABLES> 91536
<ASSETS-OTHER> 1732
<OTHER-ITEMS-ASSETS> 906
<TOTAL-ASSETS> 1464708
<PAYABLE-FOR-SECURITIES> 115843
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1675
<TOTAL-LIABILITIES> 117518
<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> 1347190
<DIVIDEND-INCOME> 1847
<INTEREST-INCOME> 79125
<OTHER-INCOME> 0
<EXPENSES-NET> 4341
<NET-INVESTMENT-INCOME> 76631
<REALIZED-GAINS-CURRENT> 14579
<APPREC-INCREASE-CURRENT> 5172
<NET-CHANGE-FROM-OPS> 96381
<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> 265635
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3583
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 4341
<AVERAGE-NET-ASSETS> 1194353
<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> .36
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
Report of Independent Accountants
To the Investors and Trustees of
The U.S. Fixed Income Portfolio
In planning and performing our audit of the financial statements of The U.S.
Fixed Income Portfolio (the "Portfolio") for the year ended October 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 the Portfolio 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 internal control, errors 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 for 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
Trustees of the Portfolio and the Securities and Exchange Commission.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
December 17, 1998
