<PAGE> PAGE 1
000 B000000 09/30/1999
000 C000000 0000099203
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 6.1
000 J000000 A
001 A000000 FPA NEW INCOME, INC.
001 B000000 811-1735
001 C000000 3109965429
002 A000000 11400 WEST OLYMPIC BOULEVARD,SUITE 1200
002 B000000 LOS ANGELES
002 C000000 CA
002 D010000 90064
002 D020000 1507
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 FIRST PACIFIC ADVISORS, INC
008 B000001 A
008 C000001 801-39512
008 D010001 LOS ANGELES
008 D020001 CA
008 D030001 90064
008 D040001 1507
011 A000001 FPA FUND DISTRIBUTORS, INC
011 B000001 8-43830
011 C010001 LOS ANGELES
011 C020001 CA
011 C030001 90064
011 C040001 1507
012 A000001 BOSTON FINANCIAL DATA SERVICES, INC
012 B000001 84-00896
012 C010001 BOSTON
012 C020001 MA
012 C030001 02266
<PAGE> PAGE 2
012 C040001 8115
013 A000001 ERNST & YOUNG LLP
013 B010001 LOS ANGELES
013 B020001 CA
013 B030001 90017
015 A000001 STATE STREET BANK AND TRUST COMPANY
015 B000001 C
015 C010001 BOSTON
015 C020001 MA
015 C030001 02111
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 4
019 C000000 FIRSTPACAD
020 C000001 0
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 0
022 A000001 AMERICAN EXPRESS CREDIT CORPORATION
022 B000001 11-1988350
022 C000001 201125
022 D000001 5999
022 A000002 FORD FINANCIAL SERVICES, INC.
022 B000002 38-1612444
022 C000002 101353
022 D000002 14175
022 A000003 STATE STREET BANK AND TRUST CO.
022 B000003 04-1867445
022 C000003 78471
022 D000003 0
022 A000004 GENERAL ELECTRIC CAPITAL SERVICES, INC.
022 B000004 06-1109503
022 C000004 42212
022 D000004 1998
022 A000005 MORGAN KEEGAN & CO., INC.
022 B000005 64-0474907
022 C000005 31409
022 D000005 0
022 A000006 ABN AMRO INCORPORATED
022 B000006 13-3227945
022 C000006 7402
022 D000006 7175
022 A000007 BANCBOSTON ROBERTSON STEPHENS
<PAGE> PAGE 3
022 B000007 94-2524501
022 C000007 0
022 D000007 5297
022 A000008 FPA CRESCENT FUND
022 B000008 13-3704901
022 C000008 5248
022 D000008 0
022 A000009 FIRST SECURITY VAN KASPER, INC.
022 B000009 94-2498482
022 C000009 0
022 D000009 4999
022 A000010 GOLDEN GATE SECURITIES LLC
022 B000010 94-3130995
022 C000010 0
022 D000010 4998
023 C000000 469896
023 D000000 46601
024 000000 N
025 D000001 0
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 Y
026 C000000 Y
026 D000000 Y
026 E000000 Y
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 9627
028 A020000 7562
028 A030000 0
028 A040000 17104
028 B010000 6298
028 B020000 0
028 B030000 0
028 B040000 13753
028 C010000 9753
028 C020000 0
028 C030000 0
028 C040000 17311
028 D010000 15736
028 D020000 8209
028 D030000 0
<PAGE> PAGE 4
028 D040000 11832
028 E010000 10930
028 E020000 0
028 E030000 0
028 E040000 14288
028 F010000 5489
028 F020000 0
028 F030000 0
028 F040000 26934
028 G010000 57833
028 G020000 15771
028 G030000 0
028 G040000 101222
028 H000000 5774
029 000000 Y
030 A000000 542
030 B000000 4.50
030 C000000 0.00
031 A000000 70
031 B000000 0
032 000000 472
033 000000 0
034 000000 N
035 000000 0
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
040 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 0.500
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
<PAGE> PAGE 5
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 Y
053 B000000 Y
053 C000000 N
054 A000000 Y
054 B000000 Y
054 C000000 Y
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 Y
054 H000000 N
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 Y
054 M000000 Y
054 N000000 N
054 O000000 Y
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 1500
062 A000000 Y
062 B000000 0.0
062 C000000 0.0
062 D000000 0.2
062 E000000 0.0
062 F000000 0.0
<PAGE> PAGE 6
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 42.1
062 N000000 33.9
062 O000000 0.0
062 P000000 17.8
062 Q000000 5.0
062 R000000 0.7
063 A000000 0
063 B000000 3.7
064 A000000 Y
064 B000000 N
066 A000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 Y
070 B010000 N
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 N
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 Y
070 K010000 N
070 K020000 N
070 L010000 Y
070 L020000 N
070 M010000 Y
070 M020000 N
070 N010000 N
070 N020000 N
070 O010000 Y
070 O020000 N
<PAGE> PAGE 7
070 P010000 Y
070 P020000 Y
070 Q010000 N
070 Q020000 N
070 R010000 Y
070 R020000 N
071 A000000 173519
071 B000000 124732
071 C000000 513521
071 D000000 24
072 A000000 12
072 B000000 39220
072 C000000 479
072 D000000 0
072 E000000 0
072 F000000 2847
072 G000000 0
072 H000000 0
072 I000000 253
072 J000000 58
072 K000000 22
072 L000000 22
072 M000000 36
072 N000000 51
072 O000000 1
072 P000000 0
072 Q000000 0
072 R000000 25
072 S000000 4
072 T000000 0
072 U000000 0
072 V000000 0
072 W000000 47
072 X000000 3366
072 Y000000 0
072 Z000000 36333
072AA000000 5615
072BB000000 851
072CC010000 0
072CC020000 19635
072DD010000 37467
072DD020000 0
072EE000000 3215
073 A010000 0.7100
073 A020000 0.0000
073 B000000 0.0600
073 C000000 0.0000
074 A000000 1
074 B000000 767
074 C000000 0
074 D000000 524902
<PAGE> PAGE 8
074 E000000 3688
074 F000000 0
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 66
074 K000000 0
074 L000000 6241
074 M000000 0
074 N000000 535665
074 O000000 0
074 P000000 226
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 4306
074 S000000 0
074 T000000 531133
074 U010000 49324
074 U020000 0
074 V010000 10.77
074 V020000 0.00
074 W000000 0.0000
074 X000000 9734
074 Y000000 0
075 A000000 0
075 B000000 565370
076 000000 0.00
077 A000000 Y
077 B000000 Y
078 000000 N
080 A000000 NATIONAL UNION FIRE INSURANCE COMPANY
080 C000000 5000
081 A000000 Y
081 B000000 6
082 A000000 N
082 B000000 0
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
<PAGE> PAGE 9
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE J. RICHARD ATWOOD
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-END> SEP-30-1999
<INVESTMENTS-AT-COST> 543,674,439
<INVESTMENTS-AT-VALUE> 529,356,656
<RECEIVABLES> 6,307,632
<ASSETS-OTHER> 503
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 535,664,791
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4,531,306
<TOTAL-LIABILITIES> 4,531,306
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 531,935,419
<SHARES-COMMON-STOCK> 49,324,340
<SHARES-COMMON-PRIOR> 55,336,651
<ACCUMULATED-NII-CURRENT> 9,262,968
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 4,252,881
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (14,317,783)
<NET-ASSETS> 531,133,485
<DIVIDEND-INCOME> 479,000
<INTEREST-INCOME> 39,220,123
<OTHER-INCOME> 0
<EXPENSES-NET> 3,366,323
<NET-INVESTMENT-INCOME> 36,332,800
<REALIZED-GAINS-CURRENT> 4,763,524
<APPREC-INCREASE-CURRENT> (19,635,007)
<NET-CHANGE-FROM-OPS> 21,461,317
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 37,467,415
<DISTRIBUTIONS-OF-GAINS> 3,215,415
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 11,732,265
<NUMBER-OF-SHARES-REDEEMED> 20,998,240
<SHARES-REINVESTED> 3,253,664
<NET-CHANGE-IN-ASSETS> (84,612,843)
<ACCUMULATED-NII-PRIOR> 10,397,583
<ACCUMULATED-GAINS-PRIOR> 2,704,772
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,846,976
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3,366,323
<AVERAGE-NET-ASSETS> 565,369,704
<PER-SHARE-NAV-BEGIN> 11.13
<PER-SHARE-NII> 0.71
<PER-SHARE-GAIN-APPREC> (0.30)
<PER-SHARE-DIVIDEND> 0.71
<PER-SHARE-DISTRIBUTIONS> 0.06
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.77
<EXPENSE-RATIO> 0.60
</TABLE>
REPORT OF INDEPENDENT AUDITORS
To the Board of Directors and
Shareholders of FPA New Income, Inc.
In planning and performing our audit of the financial statements of
FPA New Income, Inc. (the Fund) for the year ended September 30,
1999, 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 the internal control.
The management of the Fund 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, error 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 the changes in conditions or that the
effectiveness of the design and operation may deteriorate.
Our consideration of the internal control would not necessarily disclose
all matters in the 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 specific 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 the internal control and its operation,
including controls for safeguarding securities, that we consider to be
material weaknesses as defined above at September 30, 1999.
This report is intended solely for the information and use of the board
of directors and management of FPA New Income, Inc. and the
Securities and Exchange Commission and is not intended to be and
should not be used by anyone other than these specified parties.
November 12, 1999