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<PAGE> PAGE 2
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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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SIGNATURE SCOTT FITZHENRY
TITLE A.V.P. FUND ADMIN.
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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<GROSS-EXPENSE> 832,681
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</TABLE>
<TABLE> <S> <C>
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<CIK> 0000949683
<NAME> NEW ENGLAND FUNDS TRUST III
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<NUMBER> 021
<NAME> NEW ENGLAND BULLSEYE FUND CLASS A
<S> <C>
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<PERIOD-END> DEC-31-1998
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<NAME> NEW ENGLAND FUNDS TRUST III
<SERIES>
<NUMBER> 022
<NAME> NEW ENGLAND BULLSEYE FUND CLASS B
<S> <C>
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<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 19,862,455
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</TABLE>
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<CIK> 0000949683
<NAME> NEW ENGLAND FUNDS TRUST III
<SERIES>
<NUMBER> 023
<NAME> NEW ENGLAND BULLSEYE FUND CLASS C
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 19,862,455
<INVESTMENTS-AT-VALUE> 21,200,109
<RECEIVABLES> 113,580
<ASSETS-OTHER> 774
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<TOTAL-ASSETS> 21,340,271
<PAYABLE-FOR-SECURITIES> 0
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<SENIOR-EQUITY> 0
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<OVERDISTRIBUTION-GAINS> 0
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<INTEREST-INCOME> 39,331
<OTHER-INCOME> 0
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<NET-INVESTMENT-INCOME> (81,543)
<REALIZED-GAINS-CURRENT> (656,441)
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<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,391,994
<NUMBER-OF-SHARES-REDEEMED> 444,114
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 2,947,880
<ACCUMULATED-NII-PRIOR> 0
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<GROSS-EXPENSE> 428,740
<AVERAGE-NET-ASSETS> 2,876,395
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<PER-SHARE-NII> (0.08)
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<AVG-DEBT-OUTSTANDING> 0
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
February 15, 1999
To the Shareholders and Board of Trustees of the
New England Funds Trusts III
In planning and performing our audit of the financial statements
of the New England Funds Trust III, the Trust, for the year ended
December 31, 1998, 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 Trust 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 controls. Generally,
controls that are relevant to an audit pertain to the entitys
objective of preparing financial statements for external purposes
that are fairly presented in conformity with generally accepted
accounting principles. Those controls include the safeguarding of
assets against unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, errors or
fraud 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 one or more of the
internal control components does not reduce to a relatively low
level the risk that misstatements caused by error or fraud 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 and its operation, including controls for
safeguarding securities, that we consider to be material
weaknesses as defined above as of December 31, 1998.
This report is intended solely for the information and use of
management and the Trustees of the Trust and the Securities and
Exchange Commission.
PricewaterhouseCoopers LLP
</TABLE>
