MONTGOMERY FUNDS III
NSAR-A, 1998-08-28
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<PAGE>      PAGE  1
000 A000000 06/30/98
000 C000000 930648
000 D000000 N
000 E000000 NF
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000 J000000 A
001 A000000 THE MONTGOMERY FUNDS III
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002 A000000 101 CALIFORNIA STREET
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007 C020100 MONTGOMERY VARIABLE SERIES:  GROWTH FUND
007 C030100 N
007 C010200  2
007 C020200 MONTGOMERY VARIABLE SERIES:  EMERGING MARKETS
007 C030200 N
007 C010300  3
007 C020300 MONTGOMERY VARIABLE SERIES:  INT'L SMALL CAP
007 C030300 N
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007 C020400 MONTGOMERY VARIABLE SERIES:  SMALL CAP OPPORT
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<PAGE>      PAGE  2
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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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<PAGE>      PAGE  12
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<PAGE>      PAGE  13
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<PAGE>      PAGE  14
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<PAGE>      PAGE  15
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<PAGE>      PAGE  16
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<PAGE>      PAGE  17
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<PAGE>      PAGE  18
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074 U010300      269
074 U020300        0
074 V010300     9.73
074 V020300     0.00
074 W000300   0.0000
074 X000300        2
074 Y000300        0
075 A000300        0
075 B000300     2848
076  000300     0.00
028 A010400         0
028 A020400         0
028 A030400         0
028 A040400         0
028 B010400         0
028 B020400         0
028 B030400         0
028 B040400         0
028 C010400         0
028 C020400         0
028 C030400         0
028 C040400         0
028 D010400         0
028 D020400         0
028 D030400         0
028 D040400         0
028 E010400      2000
028 E020400         0
028 E030400         0
028 E040400         0
028 F010400        32
028 F020400         0
028 F030400         0
028 F040400        16
028 G010400      2032
028 G020400         0
028 G030400         0
028 G040400        16
028 H000400         0
045  000400 Y
046  000400 N
047  000400 Y
<PAGE>      PAGE  19
048  000400  0.000
048 A010400   200000
048 A020400 1.200
048 B010400   300000
048 B020400 1.100
048 C010400        0
048 C020400 0.000
048 D010400        0
048 D020400 0.000
048 E010400        0
048 E020400 0.000
048 F010400        0
048 F020400 0.000
048 G010400        0
048 G020400 0.000
048 H010400        0
048 H020400 0.000
048 I010400        0
048 I020400 0.000
048 J010400        0
048 J020400 0.000
048 K010400   500000
048 K020400 1.000
049  000400 N
050  000400 N
051  000400 N
052  000400 N
053 A000400 Y
053 B000400 Y
053 C000400 N
055 A000400 N
055 B000400 N
056  000400 Y
057  000400 N
058 A000400 Y
058 B000400 Y
058 C000400 N
058 D000400 N
058 E000400 N
059  000400 Y
060 A000400 Y
060 B000400 Y
061  000400        0
066 A000400 Y
066 C000400 Y
067  000400 N
068 A000400 N
068 B000400 N
069  000400 N
070 A010400 Y
070 A020400 Y
<PAGE>      PAGE  20
070 B010400 Y
070 B020400 N
070 C010400 N
070 C020400 N
070 D010400 Y
070 D020400 N
070 E010400 Y
070 E020400 N
070 F010400 Y
070 F020400 N
070 G010400 Y
070 G020400 N
070 H010400 N
070 H020400 N
070 I010400 N
070 I020400 N
070 J010400 Y
070 J020400 N
070 K010400 Y
070 K020400 N
070 L010400 Y
070 L020400 Y
070 M010400 Y
070 M020400 N
070 N010400 Y
070 N020400 Y
070 O010400 Y
070 O020400 Y
070 P010400 Y
070 P020400 N
070 Q010400 N
070 Q020400 N
070 R010400 N
070 R020400 N
071 A000400      2238
071 B000400       292
071 C000400      1844
071 D000400   16
072 A000400  6
072 B000400        3
072 C000400        1
072 D000400        0
072 E000400        0
072 F000400        4
072 G000400        0
072 H000400        0
072 I000400        0
072 J000400        1
072 K000400        0
072 L000400        0
072 M000400        1
<PAGE>      PAGE  21
072 N000400        0
072 O000400        0
072 P000400        0
072 Q000400        0
072 R000400        3
072 S000400        1
072 T000400        0
072 U000400        0
072 V000400        0
072 W000400        1
072 X000400       11
072 Y000400        6
072 Z000400       -1
072AA000400        0
072BB000400        4
072CC010400        3
072CC020400        0
072DD010400        0
072DD020400        0
072EE000400        0
073 A010400   0.0000
073 A020400   0.0000
073 B000400   0.0000
073 C000400   0.0000
074 A000400        0
074 B000400       73
074 C000400        0
074 D000400        0
074 E000400        0
074 F000400     1933
074 G000400        0
074 H000400        0
074 I000400        0
074 J000400       14
074 K000400        2
074 L000400        0
074 M000400        1
074 N000400     2023
074 O000400        5
074 P000400        0
074 Q000400        0
074 R010400        0
074 R020400        0
074 R030400        0
074 R040400        5
074 S000400        0
074 T000400     2013
074 U010400      202
074 U020400        0
074 V010400     9.98
074 V020400     0.00
<PAGE>      PAGE  22
074 W000400   0.0000
074 X000400        1
074 Y000400        0
075 A000400        0
075 B000400     1951
076  000400     0.00
SIGNATURE   KAREN JACOPPO-WOOD                           
TITLE       VP/ASST SECRETARY   
 


<TABLE> <S> <C>

<ARTICLE>  6
<SERIES>
              <NUMBER> 011
              <NAME> MONTGOMERY III VARIABLE SERIES GROWTH
       
<S>                                      <C>
<PERIOD-TYPE>                            6-MOS
<FISCAL-YEAR-END>                        DEC-31-1998
<PERIOD-END>                             JUN-30-1998
<INVESTMENTS-AT-COST>                                       14,263,276
<INVESTMENTS-AT-VALUE>                                      15,873,121
<RECEIVABLES>                                                   53,696
<ASSETS-OTHER>                                                       0
<OTHER-ITEMS-ASSETS>                                            33,641
<TOTAL-ASSETS>                                              15,960,458
<PAYABLE-FOR-SECURITIES>                                        87,596
<SENIOR-LONG-TERM-DEBT>                                              0
<OTHER-ITEMS-LIABILITIES>                                       21,143
<TOTAL-LIABILITIES>                                            108,739
<SENIOR-EQUITY>                                                      0
<PAID-IN-CAPITAL-COMMON>                                    13,784,618
<SHARES-COMMON-STOCK>                                          968,483
<SHARES-COMMON-PRIOR>                                          834,878
<ACCUMULATED-NII-CURRENT>                                       36,129
<OVERDISTRIBUTION-NII>                                               0
<ACCUMULATED-NET-GAINS>                                        421,127
<OVERDISTRIBUTION-GAINS>                                             0
<ACCUM-APPREC-OR-DEPREC>                                     1,609,845
<NET-ASSETS>                                                15,851,719
<DIVIDEND-INCOME>                                               64,892
<INTEREST-INCOME>                                               63,876
<OTHER-INCOME>                                                       0
<EXPENSES-NET>                                                  93,674
<NET-INVESTMENT-INCOME>                                         35,094
<REALIZED-GAINS-CURRENT>                                       418,747
<APPREC-INCREASE-CURRENT>                                      645,245
<NET-CHANGE-FROM-OPS>                                        1,099,086
<EQUALIZATION>                                                       0
<DISTRIBUTIONS-OF-INCOME>                                            0
<DISTRIBUTIONS-OF-GAINS>                                             0
<DISTRIBUTIONS-OTHER>                                                0
<NUMBER-OF-SHARES-SOLD>                                        341,593
<NUMBER-OF-SHARES-REDEEMED>                                   (207,988)
<SHARES-REINVESTED>                                                  0
<NET-CHANGE-IN-ASSETS>                                       3,254,340
<ACCUMULATED-NII-PRIOR>                                          1,035
<ACCUMULATED-GAINS-PRIOR>                                        2,380
<OVERDISTRIB-NII-PRIOR>                                              0
<OVERDIST-NET-GAINS-PRIOR>                                           0
<GROSS-ADVISORY-FEES>                                          147,978
<INTEREST-EXPENSE>                                                 321
<GROSS-EXPENSE>                                                175,767
<AVERAGE-NET-ASSETS>                                        15,118,440
<PER-SHARE-NAV-BEGIN>                                            15.09
<PER-SHARE-NII>                                                   0.04
<PER-SHARE-GAIN-APPREC>                                           1.24
<PER-SHARE-DIVIDEND>                                              0.00
<PER-SHARE-DISTRIBUTIONS>                                         0.00
<RETURNS-OF-CAPITAL>                                              0.00
<PER-SHARE-NAV-END>                                              16.37
<EXPENSE-RATIO>                                                   1.25
<AVG-DEBT-OUTSTANDING>                                               0
<AVG-DEBT-PER-SHARE>                                                 0


</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

<TABLE> <S> <C>

<ARTICLE>  6
<SERIES>
              <NUMBER>021 
              <NAME> MONTGOMERY III VARIABLE SERIES EMERGING MARKETS
       
<S>                                      <C>
<PERIOD-TYPE>                            6-MOS
<FISCAL-YEAR-END>                        DEC-31-1998
<PERIOD-END>                             JUN-30-1998
<INVESTMENTS-AT-COST>                                      105,109,620
<INVESTMENTS-AT-VALUE>                                      84,764,408
<RECEIVABLES>                                                4,516,236
<ASSETS-OTHER>                                                       0
<OTHER-ITEMS-ASSETS>                                           416,659
<TOTAL-ASSETS>                                              89,697,303
<PAYABLE-FOR-SECURITIES>                                     1,408,820
<SENIOR-LONG-TERM-DEBT>                                              0
<OTHER-ITEMS-LIABILITIES>                                    3,710,345
<TOTAL-LIABILITIES>                                          5,119,165
<SENIOR-EQUITY>                                                      0
<PAID-IN-CAPITAL-COMMON>                                   123,754,041
<SHARES-COMMON-STOCK>                                       10,810,062
<SHARES-COMMON-PRIOR>                                       10,868,968
<ACCUMULATED-NII-CURRENT>                                      359,149
<OVERDISTRIBUTION-NII>                                               0
<ACCUMULATED-NET-GAINS>                                    (19,185,516)
<OVERDISTRIBUTION-GAINS>                                             0
<ACCUM-APPREC-OR-DEPREC>                                   (20,349,536)
<NET-ASSETS>                                                84,578,138
<DIVIDEND-INCOME>                                            1,218,071
<INTEREST-INCOME>                                              122,192
<OTHER-INCOME>                                                       0
<EXPENSES-NET>                                                 921,502
<NET-INVESTMENT-INCOME>                                        418,761
<REALIZED-GAINS-CURRENT>                                    (9,315,628)
<APPREC-INCREASE-CURRENT>                                  (20,023,177)
<NET-CHANGE-FROM-OPS>                                      (28,920,044)
<EQUALIZATION>                                                       0
<DISTRIBUTIONS-OF-INCOME>                                            0
<DISTRIBUTIONS-OF-GAINS>                                             0
<DISTRIBUTIONS-OTHER>                                                0
<NUMBER-OF-SHARES-SOLD>                                      3,242,462
<NUMBER-OF-SHARES-REDEEMED>                                 (3,301,368)
<SHARES-REINVESTED>                                                  0
<NET-CHANGE-IN-ASSETS>                                     (30,258,470)
<ACCUMULATED-NII-PRIOR>                                        (59,612)
<ACCUMULATED-GAINS-PRIOR>                                   (9,869,888)
<OVERDISTRIB-NII-PRIOR>                                              0
<OVERDIST-NET-GAINS-PRIOR>                                           0
<GROSS-ADVISORY-FEES>                                          683,826
<INTEREST-EXPENSE>                                               2,690
<GROSS-EXPENSE>                                              1,017,795
<AVERAGE-NET-ASSETS>                                       100,593,848
<PER-SHARE-NAV-BEGIN>                                            10.57
<PER-SHARE-NII>                                                   0.04
<PER-SHARE-GAIN-APPREC>                                          (2.79)
<PER-SHARE-DIVIDEND>                                              0.00
<PER-SHARE-DISTRIBUTIONS>                                         0.00
<RETURNS-OF-CAPITAL>                                              0.00
<PER-SHARE-NAV-END>                                               7.82
<EXPENSE-RATIO>                                                   1.75
<AVG-DEBT-OUTSTANDING>                                               0


</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

<TABLE> <S> <C>

<ARTICLE>  6
<SERIES>
              <NUMBER> 031
              <NAME> MONTGOMERY III VARIABLE SERIES INTL SMALL CAP
       
<S>                                      <C>
<PERIOD-TYPE>                            6-MOS
<FISCAL-YEAR-END>                        DEC-31-1998
<PERIOD-END>                             JUN-30-1998
<INVESTMENTS-AT-COST>                                        2,610,032
<INVESTMENTS-AT-VALUE>                                       2,599,221
<RECEIVABLES>                                                   90,867
<ASSETS-OTHER>                                                       0
<OTHER-ITEMS-ASSETS>                                            33,165
<TOTAL-ASSETS>                                               2,723,253
<PAYABLE-FOR-SECURITIES>                                           440
<SENIOR-LONG-TERM-DEBT>                                              0
<OTHER-ITEMS-LIABILITIES>                                      108,592
<TOTAL-LIABILITIES>                                            109,032
<SENIOR-EQUITY>                                                      0
<PAID-IN-CAPITAL-COMMON>                                     2,860,897
<SHARES-COMMON-STOCK>                                          268,683
<SHARES-COMMON-PRIOR>                                          248,947
<ACCUMULATED-NII-CURRENT>                                       30,385
<OVERDISTRIBUTION-NII>                                               0
<ACCUMULATED-NET-GAINS>                                       (266,179)
<OVERDISTRIBUTION-GAINS>                                             0
<ACCUM-APPREC-OR-DEPREC>                                       (10,882)
<NET-ASSETS>                                                 2,614,221
<DIVIDEND-INCOME>                                               20,943
<INTEREST-INCOME>                                               13,387
<OTHER-INCOME>                                                       0
<EXPENSES-NET>                                                       0
<NET-INVESTMENT-INCOME>                                         34,330
<REALIZED-GAINS-CURRENT>                                       (43,218)
<APPREC-INCREASE-CURRENT>                                      361,609
<NET-CHANGE-FROM-OPS>                                          352,721
<EQUALIZATION>                                                       0
<DISTRIBUTIONS-OF-INCOME>                                            0
<DISTRIBUTIONS-OF-GAINS>                                             0
<DISTRIBUTIONS-OTHER>                                                0
<NUMBER-OF-SHARES-SOLD>                                        438,314
<NUMBER-OF-SHARES-REDEEMED>                                   (418,578)
<SHARES-REINVESTED>                                                  0
<NET-CHANGE-IN-ASSETS>                                         550,789
<ACCUMULATED-NII-PRIOR>                                         (3,945)
<ACCUMULATED-GAINS-PRIOR>                                     (222,961)
<OVERDISTRIB-NII-PRIOR>                                              0
<OVERDIST-NET-GAINS-PRIOR>                                           0
<GROSS-ADVISORY-FEES>                                           61,664
<INTEREST-EXPENSE>                                               2,976
<GROSS-EXPENSE>                                                 96,639
<AVERAGE-NET-ASSETS>                                         2,847,889
<PER-SHARE-NAV-BEGIN>                                             8.29
<PER-SHARE-NII>                                                   0.13
<PER-SHARE-GAIN-APPREC>                                           1.31
<PER-SHARE-DIVIDEND>                                              0.00
<PER-SHARE-DISTRIBUTIONS>                                         0.00
<RETURNS-OF-CAPITAL>                                              0.00
<PER-SHARE-NAV-END>                                               9.73
<EXPENSE-RATIO>                                                   0.00
<AVG-DEBT-OUTSTANDING>                                               0
<AVG-DEBT-PER-SHARE>                                                 0


</TABLE>

<TABLE> <S> <C>

<ARTICLE>  6
<SERIES>
              <NUMBER> 031
              <NAME> MONTGOMERY III VARIABLE SERIES INTL SMALL CAP
       
<S>                                      <C>
<PERIOD-TYPE>                            6-MOS
<FISCAL-YEAR-END>                        DEC-31-1998
<PERIOD-END>                             JUN-30-1998
<INVESTMENTS-AT-COST>                                        2,610,032
<INVESTMENTS-AT-VALUE>                                       2,599,221
<RECEIVABLES>                                                   90,867
<ASSETS-OTHER>                                                       0
<OTHER-ITEMS-ASSETS>                                            33,165
<TOTAL-ASSETS>                                               2,723,253
<PAYABLE-FOR-SECURITIES>                                           440
<SENIOR-LONG-TERM-DEBT>                                              0
<OTHER-ITEMS-LIABILITIES>                                      108,592
<TOTAL-LIABILITIES>                                            109,032
<SENIOR-EQUITY>                                                      0
<PAID-IN-CAPITAL-COMMON>                                     2,860,897
<SHARES-COMMON-STOCK>                                          268,683
<SHARES-COMMON-PRIOR>                                          248,947
<ACCUMULATED-NII-CURRENT>                                       30,385
<OVERDISTRIBUTION-NII>                                               0
<ACCUMULATED-NET-GAINS>                                       (266,179)
<OVERDISTRIBUTION-GAINS>                                             0
<ACCUM-APPREC-OR-DEPREC>                                       (10,882)
<NET-ASSETS>                                                 2,614,221
<DIVIDEND-INCOME>                                               20,943
<INTEREST-INCOME>                                               13,387
<OTHER-INCOME>                                                       0
<EXPENSES-NET>                                                       0
<NET-INVESTMENT-INCOME>                                         34,330
<REALIZED-GAINS-CURRENT>                                       (43,218)
<APPREC-INCREASE-CURRENT>                                      361,609
<NET-CHANGE-FROM-OPS>                                          352,721
<EQUALIZATION>                                                       0
<DISTRIBUTIONS-OF-INCOME>                                            0
<DISTRIBUTIONS-OF-GAINS>                                             0
<DISTRIBUTIONS-OTHER>                                                0
<NUMBER-OF-SHARES-SOLD>                                        438,314
<NUMBER-OF-SHARES-REDEEMED>                                   (418,578)
<SHARES-REINVESTED>                                                  0
<NET-CHANGE-IN-ASSETS>                                         550,789
<ACCUMULATED-NII-PRIOR>                                         (3,945)
<ACCUMULATED-GAINS-PRIOR>                                     (222,961)
<OVERDISTRIB-NII-PRIOR>                                              0
<OVERDIST-NET-GAINS-PRIOR>                                           0
<GROSS-ADVISORY-FEES>                                           61,664
<INTEREST-EXPENSE>                                               2,976
<GROSS-EXPENSE>                                                 96,639
<AVERAGE-NET-ASSETS>                                         2,847,889
<PER-SHARE-NAV-BEGIN>                                             8.29
<PER-SHARE-NII>                                                   0.13
<PER-SHARE-GAIN-APPREC>                                           1.31
<PER-SHARE-DIVIDEND>                                              0.00
<PER-SHARE-DISTRIBUTIONS>                                         0.00
<RETURNS-OF-CAPITAL>                                              0.00
<PER-SHARE-NAV-END>                                               9.73
<EXPENSE-RATIO>                                                   0.00
<AVG-DEBT-OUTSTANDING>                                               0
<AVG-DEBT-PER-SHARE>                                                 0


</TABLE>


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