<PAGE> PAGE 1
000 A000000 11/30/97
000 C000000 909280
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000 J000000 A
001 A000000 THE U.S. SMALL COMPANY PORTFOLIO
001 B000000 811-7882
001 C000000 8099496644
002 A000000 ELIZABETHAN SQUARE, 2ND FLOOR SHEDDEN RD
002 B000000 GEORGETOWN
002 E010000 GRAND CAYMAN
002 E020000 E9
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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
<PAGE> PAGE 2
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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 20116
012 A000001 STATE STREET BANK AND TRUST COMPANY
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 J.P. MORGAN SECURITIES, INC.
014 B000001 8-99999
014 A000002 JPM SECURITIES LTD.
014 B000002 8-99999
014 A000003 BOSTON INSTITUTIONAL SERVICES
014 B000003 8-99999
014 A000004 FUNDS DISTRIBUTOR, INC.
014 B000004 8-420518
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015 C020001 MA
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020 C000002 65
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020 C000003 61
020 A000004 BT ALEX BROWN
020 C000004 54
<PAGE> PAGE 3
020 A000005 INSTINET
020 C000005 53
020 A000006 LEHMAN BROTHERS INC.
020 C000006 53
020 A000007 OPPENHEIMER & CO., INC
020 C000007 52
020 A000008 INVESTMENT TECHNOLOGY
020 C000008 47
020 A000009 CS FIRST BOSTON CORPORATION
020 C000009 46
020 A000010 ABN AMRO CHICAGO CORPORATION
020 C000010 38
021 000000 1013
022 A000001 GOLDMAN SACHS
022 C000001 6237339
022 D000001 6179
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022 C000002 65845
022 D000002 0
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022 C000003 31680
022 D000003 12711
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022 D000004 21874
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022 C000005 17546
022 D000005 18168
022 A000006 BT ALEX BROWN
022 C000006 15577
022 D000006 1039
022 A000007 DONALSON, LUFKIN & JE
022 C000007 10454
022 D000007 2022
022 A000008 ROBINSON HUMPHREY
022 C000008 8137
022 D000008 3085
022 A000009 ROBERTSON, STEPHENS A
022 C000009 9534
022 D000009 1663
022 A000010 ROBERT W BAIRD & CO., INC
022 C000010 5574
022 D000010 5022
023 C000000 6537984
023 D000000 156255
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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 LENORE J. MCCABE
TITLE ASST TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial data extracted from the semi-annual
report dated November 30, 1997 for the U.S. Small Company Portfolio and is
qualifed in its entirety by reference to such semi-annual report.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-END> NOV-30-1997
<INVESTMENTS-AT-COST> 1039297
<INVESTMENTS-AT-VALUE> 1233150
<RECEIVABLES> 12921
<ASSETS-OTHER> 9
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1246080
<PAYABLE-FOR-SECURITIES> 16923
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 704
<TOTAL-LIABILITIES> 17627
<SENIOR-EQUITY> 0
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<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
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<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 1228453
<DIVIDEND-INCOME> 6961
<INTEREST-INCOME> 1418
<OTHER-INCOME> 0
<EXPENSES-NET> 4080
<NET-INVESTMENT-INCOME> 4299
<REALIZED-GAINS-CURRENT> 110284
<APPREC-INCREASE-CURRENT> 58676
<NET-CHANGE-FROM-OPS> 173259
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 178831
<NUMBER-OF-SHARES-REDEEMED> 193920
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 158170
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3613
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<GROSS-EXPENSE> 4080
<AVERAGE-NET-ASSETS> 1200860
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</TABLE>
TRANSACTIONS SUBJECT TO RULE 10f - 3 PROCEDURES
Fund: U S Small Co Security: Eagle Geophysical, Inc
Common Stock
Issuer: Eagle Geophysical, Inc
REQUIRED INFORMATION APPLICABLE RESTRICTION
1 . Offering Date 8/5/97 None
2. Total Size of Offering 99,960,000 None
3. Unit Price of Offering 17.00 None
4. Underwriting Spread 1.19 Morgan Guaranty determination
must be made
5. Years of Issuer's Operations 4 Must be at least three*
6. Underwriting firm Must be firm
7. Trade Date 8/5/97 No later than 1 day after #1
8. Portfolio Assets on Trade Date 1,206,079,979 None
9. Price Paid per Unit 17.00 Must not exceed #3 ($17.00)
10.Total Price Paid by Portfolio 504,900 Must not exceed #8 x 3%
($36,182,399.36)
11. Total Price Paid by Portfolio plus If less than $500,000, must
Total Price Paid for same sec - not exceed #2 x 10% ( N/A),
urities by associated Funds 540,600 otherwise must not exceed
#2 x 4% ($3,998,400)
12. List of Underwriters from whom Must not include Morgan
Portfolio purchased Guaranty or affiliates **
Prudential Securities, Inc.
Morgan Guaranty has no reason to beleive that the underwriting commission,
spread or profit is not reasonable or fair compared to underwritings of
similar securities during a comparable period of time. In determining
which securities are comparable, Morgan Guaranty has considered the
factors set forth in the Fund's 10f-3 procedures.
/s/Barry Mullen
Compliance Officer
* 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.
** For munis purchased from syndicate manager, check box to confirm that
the purchase was not designated as a group sale.
List of Underwriters or Dealer from whom Portfolio purchased:
Prudential Sec's.
Simmons & Co.
TRANSACTIONS SUBJECT TO RULE 10f - 3 PROCEDURES
Fund: U S Small Co Security: Galileo International,
Inc.
Common Stock
Issuer: Galileo International, Inc.
REQUIRED INFORMATION APPLICABLE RESTRICTION
1 . Offering Date 7/24/97 None
2. Total Size of Offering 783,951,000 None
3. Unit Price of Offering 24.50 None
4. Underwriting Spread 1.285 Morgan Guaranty
determination
must be made
5. Years of Issuer's Operations 4 Must be at least
three*
6. Underwriting firm Must be firm
7. Trade Date 7/24/97 No later than 1
day after #1
8. Portfolio Assets on Trade Date 1,183,899,404 None
9. Price Paid per Unit 24.50 Must not exceed
#3 ($24.5 )
10. Total Price Paid by Portfolio 4,723,600 Must not exceed
#8x3% ($35,516,982)
11. Total Price Paid by Portfolio plus If less than $500,000,
Total Price Paid for same sec - must not exceed #2 x 10%
urities by associated Funds 4,723,600 (N/A), otherwise must not
exceed #2x4% (31,358,040)
12. List of Underwriters from whom Must not include Morgan
Portfolio purchased Guaranty or affiliates **
Morgan Stanley and Co.
Lehman Bros., Inc
Bear, Stearns Securities
Furman, Selz, Magerdie
Morgan Guaranty has determined that the underwriting commission, spread or
profit is reasonable and fair compared to underwritings of similar
securities during a comparable period of time. In determining which
securities are comparable, Morgan Guaranty has considered the factors set
forth in the Fund's 10f-3 procedures.
/s/James Otness
Portfolio Manager
* 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.
** For munis purchased from syndicate manager, check box to confirm that
the purchase was not designated as a group sale.
List of Underwriters or Dealer from whom Portfolio purchased:
Morgan Stanley and Co.
Lehman Bros., Inc
Bear, Stearns Securities
Furman, Selz, Magerdie
TRANSACTIONS SUBJECT TO RULE 10f - 3 PROCEDURES
Fund: U S Small Co Security: Schick Technologies, Inc
Common Stock
Issuer: Schick Technologies, Inc
REQUIRED INFORMATION APPLICABLE RESTRICTION
1 . Offering Date 7/1/97 None
2. Total Size of Offering 32,375,000 None
3. Unit Price of Offering 18.50 None
4. Underwriting Spread 1.295 Morgan Guaranty determination
must be made
5. Years of Issuer's Operations 4 Must be at least three*
6. Underwriting firm Must be firm
7. Trade Date 7/1/97 No later than 1 day after #1
8. Portfolio Assets on Trade Date 1,142,764,380 None
9. Price Paid per Unit 18.50 Must not exceed #3 ($$18.5)
10. Total Price Paid by Portfolio 481,000 Must not exceed #8x3%
($34,282,931)
11. Total Price Paid by Portfolio plus If less than $500,000,
Total Price Paid for same sec - must not exceed #2 x 10%
urities by associated Funds 481,000 (3,237,500), otherwise
must not exceed #2 x 4% (N/A)
12. List of Underwriters from whom Must not include Morgan
Portfolio purchased Guaranty or affiliates **
Lehman Bros., Inc.
Morgan Guaranty has determined that the underwriting commission, spread or
profit is reasonable and fair compared to underwritings of similar
securities during a comparable period of time. In determining which
securities are comparable, Morgan Guaranty has considered the factors set
forth in the Fund's 10f-3 procedures.
James Otness
Portfolio Manager
* 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.
** For munis purchased from syndicate manager, check box to confirm
that the purchase was not designated as a group sale.
List of Underwriters or Dealer from whom Portfolio purchased:
Lehman Bros., Inc.
TRANSACTIONS SUBJECT TO RULE 10f - 3 PROCEDURES
Fund: U S Small Co Security: Equity Office Properties Trust
Common Stock
Issuer: Equity Office Properties Trust
REQUIRED INFORMATION APPLICABLE RESTRICTION
1 . Offering Date 7/7/97 None
2. Total Size of Offering 525,000,000 None
3. Unit Price of Offering 21.00 None
4. Underwriting Spread 1.365 Morgan Guaranty determination
must be made
5. Years of Issuer's Operations 11 Must be at least three*
6. Underwriting firm Must be firm
7. Trade Date 7/7/97 No later than 1 day after #1
8. Portfolio Assets on Trade Date 1,150,631,866 None
9. Price Paid per Unit 21.00 Must not exceed #3 ($21.00)
10. Total Price Paid by Portfolio 3,599,400 Must not exceed #8 x 3%
($34,518,955.98)
11. Total Price Paid by Portfolio plus If less than $500,000, must
Total Price Paid for same sec - not exceed #2 x 10% ( N/A),
urities by associated Funds 3,765,300 otherwise must not exceed
#2 x 4% (21,000,000)
12. List of Underwriters from whom Must not include Morgan
Portfolio purchased Guaranty or affiliates **
Merrill Lynch
Morgan Guaranty has determined that the underwriting commission, spread or
profit is reasonable and fair compared to underwritings of similar
securities during a comparable period of time. In determining which
securities are comparable, Morgan Guaranty has considered the factors set
forth in the Fund's 10f-3 procedures.
James Otness
Portfolio Manager
* 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.
** For munis purchased from syndicate manager, check box to confirm that
the purchase was not designated as a group sale.
List of Underwriters or Dealer from whom Portfolio purchased:
Merrill Lynch
