<PAGE> PAGE 1
000 B000000 05/31/97
000 C000000 909282
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 US EQUITY PORTFOLIO
001 B000000 811-7880
001 C000000 8099496644
002 A000000 ELIZABETHAN SQUARE, 2ND FLOOR SHEDDEN RD
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
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
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 8-99999999
014 A000002 FUNDS DISTRIBUTOR, INC.
014 B000002 8-420518
014 A000003 BOSTON INSTITUTIONAL SERVICES, INC.
014 B000003 8-99999999
014 A000004 JP MORGAN SECURITIES LTD.
014 B000004 8-99999999
015 A000001 STATE STREET BANK AND 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 70
019 C000000 JPM\PIERPO
020 A000001 MERRYL LYNCH
020 C000001 152
020 A000002 MORGAN STANLEY
020 C000002 144
020 A000003 LEHMAN BROS
020 C000003 125
020 A000004 CS FIRST BOSTON
020 C000004 120
020 A000005 DONALDSON LUFKIN
020 C000005 98
020 A000006 GOLDMAN SACHS
020 C000006 93
020 A000007 SMITH BARNEY
020 C000007 92
020 A000008 PAINE WEBBER
020 C000008 81
020 A000009 MONTGOMERY SECURITIES
020 C000009 76
020 A000010 LEWCO SECS
020 C000010 72
021 000000 1614
022 A000001 GOLDMAN SACHS
022 C000001 6426199
<PAGE> PAGE 3
022 D000001 5735
022 A000002 DIRECT ISSUE
022 C000002 474114
022 D000002 0
022 A000003 SMITH BARNEY
022 C000003 18625
022 D000003 15828
022 A000004 CHASE MANHATTAN BANK
022 C000004 34385
022 D000004 0
022 A000005 LEHMAN BROS
022 C000005 3969
022 D000005 28680
022 A000006 MERRILL LYNCH PIERCE FENN
022 C000006 22243
022 D000006 9451
022 A000007 HSBC SECURITIES, INC
022 C000007 30946
022 D000007 0
022 A000008 MORGAN STANLEY
022 C000008 14713
022 D000008 9454
022 A000009 NATWEST SECURITIES CORP
022 C000009 20484
022 D000009 0
022 A000010 ASSET TRANSFER
022 C000010 10930
022 D000010 0
023 C000000 7056613
023 D000000 69150
024 000000 Y
025 A000001 SALOMON, INC
025 C000001 E
025 D000001 8671
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
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 Y
027 000000 Y
<PAGE> PAGE 4
028 A010000 10362
028 A020000 0
028 A030000 0
028 A040000 52933
028 B010000 34622
028 B020000 0
028 B030000 0
028 B040000 24443
028 C010000 24760
028 C020000 0
028 C030000 0
028 C040000 19254
028 D010000 10256
028 D020000 0
028 D030000 0
028 D040000 23875
028 E010000 13605
028 E020000 0
028 E030000 0
028 E040000 14492
028 F010000 13685
028 F020000 0
028 F030000 0
028 F040000 11422
028 G010000 107290
028 G020000 0
028 G030000 0
028 G040000 146419
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
<PAGE> PAGE 5
042 G000000 0
042 H000000 0
043 000000 0
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.400
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 Y
054 K000000 N
054 L000000 N
054 M000000 Y
054 N000000 N
054 O000000 N
055 B000000 N
<PAGE> PAGE 6
056 000000 Y
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 0
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
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 0.0
062 N000000 0.0
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 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 Y
070 B010000 Y
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 Y
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 Y
070 F020000 N
070 G010000 Y
<PAGE> PAGE 7
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 N
070 L010000 Y
070 L020000 Y
070 M010000 Y
070 M020000 N
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 N
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 731738
071 B000000 751052
071 C000000 739383
071 D000000 99
072 A000000 12
072 B000000 1502
072 C000000 13099
072 D000000 0
072 E000000 0
072 F000000 3049
072 G000000 290
072 H000000 0
072 I000000 0
072 J000000 174
072 K000000 0
072 L000000 0
072 M000000 13
072 N000000 0
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 45
072 S000000 6
072 T000000 0
072 U000000 0
072 V000000 0
072 W000000 10
072 X000000 3587
<PAGE> PAGE 8
072 Y000000 0
072 Z000000 11014
072AA000000 114253
072BB000000 0
072CC010000 54102
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 0
074 B000000 17750
074 C000000 790
074 D000000 3810
074 E000000 3777
074 F000000 833695
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 8977
074 K000000 0
074 L000000 1691
074 M000000 6
074 N000000 870496
074 O000000 10856
074 P000000 311
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 69
074 S000000 0
074 T000000 859260
074 U010000 0
074 U020000 0
074 V010000 0.00
074 V020000 0.00
074 W000000 0.0000
074 X000000 3
074 Y000000 0
075 A000000 0
075 B000000 763525
076 000000 0.00
077 A000000 Y
077 B000000 Y
077 C000000 N
077 D000000 N
077 E000000 N
<PAGE> PAGE 9
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 Y
077 Q020000 N
077 Q030000 N
078 000000 N
080 A000000 GULF
080 C000000 25000
081 A000000 Y
081 B000000 20
082 A000000 Y
082 B000000 25
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 LENORE MCCABE
TITLE ASST TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial data extracted from the annual
report dated May 31, 1997 for The U.S. Equity 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> MAY-31-1997
<PERIOD-END> MAY-31-1997
<INVESTMENTS-AT-COST> 697,415
<INVESTMENTS-AT-VALUE> 859,822
<RECEIVABLES> 10,668
<ASSETS-OTHER> 6
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 870,496
<PAYABLE-FOR-SECURITIES> 10,856
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 380
<TOTAL-LIABILITIES> 11,236
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 859,260
<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> 859,260
<DIVIDEND-INCOME> 13,099
<INTEREST-INCOME> 1,502
<OTHER-INCOME> 0
<EXPENSES-NET> 3,587
<NET-INVESTMENT-INCOME> 11,014
<REALIZED-GAINS-CURRENT> 114,253
<APPREC-INCREASE-CURRENT> 54,102
<NET-CHANGE-FROM-OPS> 179,369
<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> 0
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3,049
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3,587
<AVERAGE-NET-ASSETS> 763,525
<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
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
July 21, 1997
To the Investors and Trustees of
The U.S. Equity Portfolio
In planning and performing our audit of the financial statements of The U.S.
Equity Portfolio (the "Portfolio") for the year ended May 31, 1997, 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
control activities. Generally, control activities 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 control activities include the safeguarding of
assets against unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, errors or irregularities
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 any
specific internal control components does not reduce to a relatively low level
the risk that errors or irregularities 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,
including control activities for safeguarding securities, that we consider to be
material weaknesses as defined above as of May 31, 1997.
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/ Price Waterhouse LLP
PRICE WATERHOUSE LLP
