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<PAGE> PAGE 2
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<PAGE> PAGE 3
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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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<PAGE> PAGE 10
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<PAGE> PAGE 11
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SIGNATURE GEORGE E. RIO
TITLE ASSISTANT TREASURER
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial data extracted from the semi-annual
report dated April 30, 1999 for The U.S. Fixed Income Portfolio and is
qualified in its entirety by reference to such semi-annual report.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1999
<PERIOD-END> APR-30-1999
<INVESTMENTS-AT-COST> 1983358
<INVESTMENTS-AT-VALUE> 1973192
<RECEIVABLES> 17300
<ASSETS-OTHER> 17
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1990509
<PAYABLE-FOR-SECURITIES> 453644
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<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 1536391
<DIVIDEND-INCOME> 1065
<INTEREST-INCOME> 47264
<OTHER-INCOME> 0
<EXPENSES-NET> 2643
<NET-INVESTMENT-INCOME> 45686
<REALIZED-GAINS-CURRENT> 1974
<APPREC-INCREASE-CURRENT> (33538)
<NET-CHANGE-FROM-OPS> 14122
<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> 189201
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2240
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2643
<AVERAGE-NET-ASSETS> 1505665
<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> .35
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
TRANSACTIONS SUBJECT TO RULE 10f-3 PROCEDURES
Portfolio: U S Fixed Income Portfolio Security Description: Notes
Issuer: AT & T Corp. 6.0% due 3/15/09 Offering Type: US Registered
----------------------------- -------------
(US Registered, Eligible Muni,
Eligible Foreign, Eligible 144A)
<TABLE>
<CAPTION>
- ---- ------------------------------------------ ---------------- -------------------------------------- -----------------
In Compliance
REQUIRED INFORMATION ANSWER APPLICABLE RESTRICTION (Yes/No)
- ---- ------------------------------------------ ---------------- -------------------------------------- -----------------
- ---- ------------------------------------------ ---------------- --------------------------------------
<S> <C> <C> <C>
1. Offering Date March 23, 1999 None N/A
-------------- ---
2. Trade Date March 23, 1999 Must be the same as #1 Yes
-------------- ---
3. Unit Price of Offering 99.765% None N/A
---
4. Price Paid per Unit 99.765% Must not exceed #3 Yes
---
5. Years of Issuer's Operations 114 Must be at least three years * Yes
--- ---
6. Underwriting Type Firm Must be firm Yes
7. Underwriting Spread . 450% Investment Adviser determination to Yes
be made ---
8. Total Price paid by Portfolio $21,848,535 None N/A
----------- ---
9. Total Size of Offering $2,992,950,000 None N/A
-------------- ---
10. Total Price Paid by Portfolio plus Total $29,630,205 #10 divided by #9 must not exceed
Price Paid for same securities purchased ----------- 25% ** Yes
by the same investment adviser for other ---
investment companies
Underwriter(s) from whom the Portfolio Merrill Lynch
11. purchased (attach a prospectus or Must not include Investment Adviser
offering circular for a list of all 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.
TRANSACTIONS SUBJECT TO RULE 10f-3 PROCEDURES
Portfolio: U S Fixed Income Portfolio Security Description: Notes
Issuer: Household Finance Corp. 5.875% 2/1/09 Offering Type: US Registered
-------------------------------------- -------------
(US Registered, Eligible
Muni, Eligible Foreign,
Eligible 144A)
<TABLE>
<CAPTION>
- ---- ------------------------------------------ ---------------- -------------------------------------- -----------------
In Compliance
REQUIRED INFORMATION ANSWER APPLICABLE RESTRICTION (Yes/No)
- ---- ------------------------------------------ ---------------- -------------------------------------- -----------------
- ---- ------------------------------------------ ---------------- --------------------------------------
<S> <C> <C> <C>
1. Offering Date Jan. 29, 1999 None N/A
------------- ---
2. Trade Date Jan. 29, 1999 Must be the same as #1 Yes
------------- ---
3. Unit Price of Offering 99.435% None N/A
---
4. Price Paid per Unit 99.435% Must not exceed #3 Yes
---
5. Years of Issuer's Operations 121 Must be at least three years * Yes
--- ---
6. Underwriting Type Firm Must be firm Yes
7. Underwriting Spread .450% Investment Adviser determination to Yes
be made ---
8. Total Price paid by Portfolio $9,545,760 None N/A
---------- ---
9. Total Size of Offering $1,292,655,000 None N/A
-------------- ---
10. Total Price Paid by Portfolio plus Total #10 divided by #9 must not exceed
Price Paid for same securities purchased 25% ** Yes
by the same investment adviser for other $13,622,595 ---
investment companies
11. Underwriter(s) from whom the Portfolio Must not include Investment Adviser
purchased (attach a prospectus or Salomon Bros affiliates ***
offering circular for a list of all Yes
syndicate members)
12. If the affiliate was lead or co-lead N/A Must be "Yes" or "N/A"
manager, was the instruction listed 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.
TRANSACTIONS SUBJECT TO RULE 10f-3 PROCEDURES
Portfolio: US Fixed Income Portfolio Security Description: 10 Year Dollar
--------------- ---------- Global Bonds
--------------
Issuer: Inter-American Development Offering Type: U.S. Registered
Bank 5.375% 11/18/08 (US Registered, Eligible Muni,
Eligible Foreign, Eligible 144A)
<TABLE>
<CAPTION>
- ---- ------------------------------------------ ---------------- ---------------------------------- ---------------------
In Compliance
REQUIRED INFORMATION ANSWER APPLICABLE RESTRICTION (Yes/No)
- ---- ------------------------------------------ ---------------- ---------------------------------- ---------------------
- ---- ------------------------------------------ ---------------- ----------------------------------
<S> <C> <C> <C>
1. Offering Date Nov. 10, 1998 None N/A
------------- ---
2. Trade Date Nov. 10,1998 Must be the same as #1 Y
------------ -
3. Unit Price of Offering 99.504% None N/A
------- ---
4. Price Paid per Unit 99.504% Must not exceed #3 Y
------- -
5. Years of Issuer's Operations 39 Must be at least three years * Y
-- -
6. Underwriting Type Firm Must be firm Y
7. Underwriting Spread .325% Investment Adviser determination
----- to be made N/A
---
8. Total Price paid by Portfolio $14,925,600 None N/A
----------- ---
9. Total Size of Offering $995,040,000 None N/A
------------ ---
10. Total Price Paid by Portfolio plus Total #10 divided by #9 must not Y
Price Paid for same securities purchased exceed 25% **
by the same investment adviser for other $17,089,812
investment companies
11. Underwriter(s) from whom the Portfolio Y
purchased (attach a prospectus or Morgan Stanley Must not include Investment
offering circular for a list of all Adviser affiliates ***
syndicate members)
12. If the affiliate was lead or co-lead Yes Must be "Yes" or "N/A" Y
manager, was the instruction listed
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 Ycompared 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.
TRANSACTIONS SUBJECT TO RULE 10f-3 PROCEDURES
Portfolio: U S Fixed Income Portfolio Security Description: Notes,
Series B
Issuer: Newcourt Credit Corp. 6.875% 2/16/05 Offering Type: Eligible 144A
------------------------------------ ------------
(US Registered, Eligible Muni,
Eligible Foreign, Eligible 144A)
<TABLE>
<CAPTION>
- ---- ------------------------------------------ ---------------- -------------------------------------- -----------------
In Compliance
REQUIRED INFORMATION ANSWER APPLICABLE RESTRICTION (Yes/No)
- ---- ------------------------------------------ ---------------- -------------------------------------- -----------------
- ---- ------------------------------------------ ---------------- --------------------------------------
<S> <C> <C> <C>
1. Offering Date Feb. 10, 1999 None N/A
------------- ---
2. Trade Date Feb. 10, 1999 Must be the same as #1 Yes
------------- ---
3. Unit Price of Offering 99.661% None N/A
---
4. Price Paid per Unit 99.661% Must not exceed #3 Yes
---
5. Years of Issuer's Operations 15 Must be at least three years * Yes
-- ---
6. Underwriting Type Firm Must be firm Yes
7. Underwriting Spread . 600% Investment Adviser determination to Yes
be made ---
8. Total Price paid by Portfolio $23,420,335 None N/A
----------- ---
9. Total Size of Offering $1,000,000,000 None N/A
-------------- ---
10. Total Price Paid by Portfolio plus Total #10 divided by #9 must not exceed
Price Paid for same securities purchased $23,420,335 25% ** Yes
by the same investment adviser for other ----------- ---
investment companies
11. Underwriter(s) from whom the Portfolio Chase
purchased (attach a prospectus or Sec. Must not include Investment Adviser
offering circular for a list of all Lehman Bros. affiliates *** Yes
syndicate members) Salomon Bros. ---
12. If the affiliate was lead or co-lead N/A
manager, was the instruction listed Must be "Yes" or "N/A" N/A
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.
