<PAGE> PAGE 1
000 A000000 12/31/98
000 C000000 908940
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 DIVERSIFIED PORTFOLIO
001 B000000 811-7860
001 C000000 8099451824
002 A000000 PO BOX 2494
002 B000000 GEORGETOWN
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
008 A000001 MORGAN GUARANTY TRUST CO. OF N.Y.
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
<PAGE> PAGE 3
010 C030001 02116
010 A000002 MORGAN GUARANTY TRUST CO. OF N.Y.
010 B000002 8-499999
010 C010002 NEW YORK
010 C020002 NY
010 C030002 10036
010 A000003 PIERPONT GROUP, INC,
010 B000003 8-499999
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 AND TRUST CO.
012 B000001 85-50003
012 C010001 BOSTON
012 C020001 MA
012 C030001 02101
013 A000001 PRICEWATERHOUSECOOPERS LLP
013 B010001 NEW YORK
013 B020001 NY
013 B030001 10036
014 A000001 JP MORGAN SECURITIES, INC.
014 B000001 8-999999
014 A000002 JP MORGAN SECURITIES LTD
014 B000002 8-999999
014 A000003 BOSTON INSTITUTIONAL SERVICES, INC.
014 B000003 8-999999
014 A000004 FUNDS DISTRIBUTOR, INC.
014 B000004 8-420518
015 A000001 STATE STREET BANK AND TRUST CO.
015 B000001 C
015 C010001 BOSTON
015 C020001 MA
015 C030001 02101
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 71
019 C000000 J.P.MORGAN
020 A000001 MERRILL LYNCH
020 C000001 21
020 A000002 SALOMON BROS INC
020 C000002 17
020 A000003 INVESTMENT TECHNOLOGY
020 C000003 16
020 A000004 STATE STREET BRKGE
020 C000004 12
<PAGE> PAGE 4
020 A000005 MORGAN STANLEY
020 C000005 12
020 A000006 CS FIRST BOSTON
020 C000006 11
020 A000007 LEHMAN BROS
020 C000007 10
020 A000008 WARBURG INC
020 C000008 9
020 A000009 BANQUE PARIBAS
020 C000009 8
020 A000010 GOLDMAN SACHS
020 C000010 6
021 000000 198
022 A000001 GOLDMAN SACHS
022 C000001 1009144
022 D000001 12531
022 A000002 SALOMON BROS
022 C000002 40271
022 D000002 29100
022 A000003 CS FIRST BOSTON
022 C000003 34232
022 D000003 23558
022 A000004 MORGAN STANLEY
022 C000004 24534
022 D000004 19778
022 A000005 CHASE MANHATTAN
022 C000005 15536
022 D000005 4152
022 A000006 LEHMAN BROS
022 C000006 14083
022 D000006 4422
022 A000007 WARBURG INC
022 C000007 12780
022 D000007 20060
022 A000008 ISI GROUP INC
022 C000008 8911
022 D000008 6773
022 A000009 GREENWICH CAPITAL
022 C000009 7540
022 D000009 23263
022 A000010 PAINE WEBBER INC
022 C000010 7072
022 D000010 7684
023 C000000 1199796
023 D000000 185637
024 000000 Y
025 A000001 BANKERS TRUST
025 C000001 E
025 D000001 367
025 A000002 CHASE MANHATTAN
025 C000002 E
<PAGE> PAGE 5
025 D000002 755
025 A000003 BEAR STEARNS
025 C000003 D
025 D000003 2517
025 A000004 CHASE MANHATTAN
025 C000004 D
025 D000004 314
025 A000005 CS FIRST BOSTON
025 C000005 D
025 D000005 1784
025 A000006 DEUTSCHE BANK
025 C000006 D
025 D000006 1943
025 A000007 LEHMAN BROS
025 C000007 D
025 D000007 269
025 D000008 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 23129
028 A020000 0
028 A030000 0
028 A040000 4175
028 B010000 11602
028 B020000 0
028 B030000 0
028 B040000 9583
028 C010000 3436
028 C020000 0
028 C030000 0
028 C040000 11522
028 D010000 3651
028 D020000 0
028 D030000 0
028 D040000 10652
028 E010000 5217
028 E020000 0
028 E030000 0
028 E040000 11723
028 F010000 18089
028 F020000 0
028 F030000 0
028 F040000 8269
<PAGE> PAGE 6
028 G010000 65124
028 G020000 0
028 G030000 0
028 G040000 55924
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
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.550
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
<PAGE> PAGE 7
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 Y
053 B000000 Y
053 C000000 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 Y
054 K000000 N
054 L000000 N
054 M000000 Y
054 N000000 N
054 O000000 N
055 A000000 N
055 B000000 N
056 000000 Y
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 0
062 A000000 N
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062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
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062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
<PAGE> PAGE 8
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 Y
066 B000000 N
066 C000000 N
066 D000000 N
066 E000000 N
066 F000000 N
066 G000000 Y
067 000000 Y
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 Y
070 B010000 Y
070 B020000 N
070 C010000 Y
070 C020000 N
070 D010000 Y
070 D020000 N
070 E010000 Y
070 E020000 Y
070 F010000 Y
070 F020000 Y
070 G010000 Y
070 G020000 N
070 H010000 Y
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 Y
070 K010000 Y
070 K020000 Y
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 N
070 P020000 N
070 Q010000 N
070 Q020000 N
<PAGE> PAGE 9
070 R010000 N
070 R020000 N
071 A000000 308649
071 B000000 295160
071 C000000 547581
071 D000000 54
072 A000000 6
072 B000000 6549
072 C000000 2592
072 D000000 0
072 E000000 0
072 F000000 1554
072 G000000 92
072 H000000 0
072 I000000 0
072 J000000 276
072 K000000 0
072 L000000 4
072 M000000 4
072 N000000 0
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 22
072 S000000 3
072 T000000 0
072 U000000 0
072 V000000 0
072 W000000 1
072 X000000 1956
072 Y000000 119
072 Z000000 7304
072AA000000 14085
072BB000000 0
072CC010000 13882
072CC020000 0
072DD010000 0
072DD020000 0
072EE000000 0
073 A010000 0.0000
073 A020000 0.0000
073 B000000 0.0000
073 C000000 0.0000
074 A000000 3332
074 B000000 19795
074 C000000 739
074 D000000 192082
074 E000000 2322
074 F000000 391579
074 G000000 0
074 H000000 0
<PAGE> PAGE 10
074 I000000 0
074 J000000 11841
074 K000000 61
074 L000000 2894
074 M000000 564
074 N000000 625209
074 O000000 20868
074 P000000 286
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 519
074 S000000 0
074 T000000 603536
074 U010000 0
074 U020000 0
074 V010000 0.00
074 V020000 0.00
074 W000000 0.0000
074 X000000 2
074 Y000000 79460
075 A000000 0
075 B000000 560658
076 000000 0.00
077 A000000 N
078 000000 N
080 C000000 0
081 B000000 0
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 N
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 A RIO
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial data extracted from the semi-annual
report dated December 31, 1998 for the Diversified 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> JUN-30-1999
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 505468
<INVESTMENTS-AT-VALUE> 606517
<RECEIVABLES> 14794
<ASSETS-OTHER> 3898
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 625209
<PAYABLE-FOR-SECURITIES> 20868
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 805
<TOTAL-LIABILITIES> 21673
<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> 603536
<DIVIDEND-INCOME> 2592
<INTEREST-INCOME> 6549
<OTHER-INCOME> 0
<EXPENSES-NET> 1837
<NET-INVESTMENT-INCOME> 7304
<REALIZED-GAINS-CURRENT> 14085
<APPREC-INCREASE-CURRENT> 13882
<NET-CHANGE-FROM-OPS> 35271
<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> 44470
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1554
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1956
<AVERAGE-NET-ASSETS> 582040
<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> .65
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
