<PAGE> PAGE 1
000 B000000 06/30/98
000 C000000 0000025175
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 IAA TRUST GROWTH FUND, INC.
001 B000000 811-1338
001 C000000 3095573222
002 A000000 808 IAA DRIVE
002 B000000 BLOOMINGTON
002 C000000 IL
002 D010000 61702
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 IAA TRUST COMPANY
008 B000001 A
008 C000001 801-000000
008 D010001 BLOOMINGTON
008 D020001 IL
008 D030001 61702
010 A000001 FIRST DATA INVESTOR SERVICES GROUP, INC.
010 B000001 84-1761
010 C010001 KING OF PRUSSIA
010 C020001 PA
010 C030001 19406
010 C040001 0903
011 A000001 FPS BROKER SERVICES, INC.
011 B000001 8-45467
011 C010001 KING OF PRUSSIA
011 C020001 PA
011 C030001 19406
011 C040001 0903
012 A000001 FIRST DATA INVESTOR SERVICES GROUP, INC.
<PAGE> PAGE 2
012 B000001 84-1761
012 C010001 KING OF PRUSSIA
012 C020001 PA
012 C030001 19406
013 A000001 COOPERS & LYBRAND LLP
013 B010001 PHILADELPHIA
013 B020001 PA
013 B030001 19103
015 A000001 IAA TRUST COMPANY
015 B000001 C
015 C010001 BLOOMINGTON
015 C020001 IL
015 C030001 61702
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 6
019 C000000 IAATRSTFDS
020 A000001 BEAR STEARNS & CO
020 B000001 13-3299429
020 C000001 30
020 A000002 MORGAN STANLEY & CO
020 B000002 13-2655998
020 C000002 20
020 A000003 WERTHEIM & CO
020 B000003 13-2697272
020 C000003 20
020 A000004 LIPPER ANALYTICAL SERVICES
020 B000004 13-2792478
020 C000004 16
020 A000005 MERRILL LYNCH PIERCE FENNER & SMITH
020 B000005 13-5674085
020 C000005 16
020 A000006 DONALDSON LUFKIN & JENRETTE SECURITIES INC.
020 B000006 13-1912900
020 C000006 4
020 A000007 DONALDSON LUFKIN & JENRETTE INC
020 B000007 13-2741729
020 C000007 15
020 A000008 SMITH BARNEY SHEARSON
020 B000008 13-1912900
020 C000008 9
020 A000009 NOMURA SECURITIES
020 B000009 13-2642206
020 C000009 2
020 A000010 PRUDENTIAL FUNDING
020 C000010 1
021 000000 129
022 A000001 FEDERATED MANAGEMENT
022 C000001 51099
022 D000001 54225
<PAGE> PAGE 3
022 A000002 DREYFUS CORP
022 C000002 17516
022 D000002 23143
022 A000003 MERRILL LYNCH PIERCE FENNER & SMITH
022 B000003 13-5674085
022 C000003 29265
022 D000003 4412
022 A000004 COMMERCIAL CREDIT
022 C000004 12220
022 D000004 3000
022 A000005 AMERICAN EXPRESS
022 B000005 13-2985263
022 C000005 11400
022 D000005 0
022 A000006 GENERAL ELECTRIC
022 B000006 13-1500700
022 C000006 8905
022 D000006 0
022 A000007 IBM CREDIT CORP
022 C000007 6613
022 D000007 0
022 A000008 AMERICAN GENERAL
022 B000008 76-0050868
022 C000008 5832
022 D000008 0
022 A000009 BENEFICIAL
022 C000009 5711
022 D000009 0
022 A000010 LEHMAN BROTHERS
022 B000010 13-2518466
022 C000010 5327
022 D000010 0
023 C000000 185934
023 D000000 92877
024 000000 Y
025 A000001 AMERICAN EXPRESS CO.
025 B000001 13-2985263
025 C000001 E
025 D000001 1710
025 A000002 IBM CREDIT CORP.
025 C000002 D
025 D000002 1214
025 A000003 AMERICAN GENERAL FINANCE
025 C000003 D
025 D000003 1000
025 A000004 COMMERCIAL CREDIT
025 C000004 D
025 D000004 230
025 D000005 0
025 D000006 0
025 D000007 0
<PAGE> PAGE 4
025 D000008 0
026 A000000 N
026 B000000 Y
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 6332
028 A020000 -1
028 A030000 0
028 A040000 1077
028 B010000 1726
028 B020000 0
028 B030000 0
028 B040000 1499
028 C010000 1175
028 C020000 -1
028 C030000 0
028 C040000 1750
028 D010000 1478
028 D020000 0
028 D030000 0
028 D040000 2063
028 E010000 850
028 E020000 0
028 E030000 0
028 E040000 1300
028 F010000 864
028 F020000 0
028 F030000 0
028 F040000 2294
028 G010000 12425
028 G020000 -2
028 G030000 0
028 G040000 9983
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
<PAGE> PAGE 5
037 000000 N
038 000000 0
039 000000 N
040 000000 Y
041 000000 Y
042 A000000 0
042 B000000 0
042 C000000 0
042 D000000 100
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 29
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.750
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 Y
054 C000000 N
054 D000000 N
054 E000000 N
<PAGE> PAGE 6
054 F000000 N
054 G000000 N
054 H000000 Y
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 1000
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 Y
066 E000000 N
066 F000000 N
066 G000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
<PAGE> PAGE 7
070 A020000 N
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 N
070 J020000 N
070 K010000 Y
070 K020000 Y
070 L010000 Y
070 L020000 Y
070 M010000 N
070 M020000 N
070 N010000 N
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 73674
071 B000000 45228
071 C000000 136820
071 D000000 33
072 A000000 12
072 B000000 907
072 C000000 1792
072 D000000 0
072 E000000 0
072 F000000 1155
072 G000000 118
072 H000000 0
072 I000000 76
072 J000000 35
072 K000000 0
072 L000000 13
<PAGE> PAGE 8
072 M000000 5
072 N000000 13
072 O000000 0
072 P000000 0
072 Q000000 61
072 R000000 44
072 S000000 5
072 T000000 29
072 U000000 0
072 V000000 0
072 W000000 24
072 X000000 1578
072 Y000000 35
072 Z000000 1156
072AA000000 8692
072BB000000 0
072CC010000 6151
072CC020000 0
072DD010000 945
072DD020000 0
072EE000000 10779
073 A010000 0.1458
073 A020000 0.0000
073 B000000 1.6805
073 C000000 0.0000
074 A000000 65
074 B000000 0
074 C000000 7631
074 D000000 0
074 E000000 0
074 F000000 151803
074 G000000 0
074 H000000 0
074 I000000 185
074 J000000 2924
074 K000000 0
074 L000000 335
074 M000000 4
074 N000000 162947
074 O000000 2361
074 P000000 0
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 271
074 S000000 0
074 T000000 160315
074 U010000 6959
074 U020000 0
074 V010000 23.04
<PAGE> PAGE 9
074 V020000 0.00
074 W000000 0.0000
074 X000000 2904
074 Y000000 0
075 A000000 0
075 B000000 153098
076 000000 0.00
077 A000000 Y
077 B000000 Y
077 Q010000 Y
078 000000 N
080 A000000 IAA TRUST COMPANY
080 C000000 1600
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
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE KELLY O'NEILL
TITLE ADMINISTRATOR
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000025175
<NAME> IAA TRUST MUTUAL FUNDS
<SERIES>
<NUMBER>
<NAME> IAA TRUST GROWTH FUND
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-START> JUL-1-1997
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 112829449
<INVESTMENTS-AT-VALUE> 159618702
<RECEIVABLES> 3258695
<ASSETS-OTHER> 69575
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 162946972
<PAYABLE-FOR-SECURITIES> 2361534
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 270890
<TOTAL-LIABILITIES> 2632424
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 106666986
<SHARES-COMMON-STOCK> 6959280
<SHARES-COMMON-PRIOR> 6254801
<ACCUMULATED-NII-CURRENT> 559705
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 6298604
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 46789253
<NET-ASSETS> 160314548
<DIVIDEND-INCOME> 1792319
<INTEREST-INCOME> 906436
<OTHER-INCOME> 0
<EXPENSES-NET> 1543139
<NET-INVESTMENT-INCOME> 1155616
<REALIZED-GAINS-CURRENT> 8691628
<APPREC-INCREASE-CURRENT> 6151197
<NET-CHANGE-FROM-OPS> 14842825
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 945434
<DISTRIBUTIONS-OF-GAINS> 10778777
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 935194
<NUMBER-OF-SHARES-REDEEMED> 740214
<SHARES-REINVESTED> 509499
<NET-CHANGE-IN-ASSETS> 19528198
<ACCUMULATED-NII-PRIOR> 349523
<ACCUMULATED-GAINS-PRIOR> 8385753
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1154966
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1578047
<AVERAGE-NET-ASSETS> 153988166
<PER-SHARE-NAV-BEGIN> 22.51
<PER-SHARE-NII> .17
<PER-SHARE-GAIN-APPREC> 2.19
<PER-SHARE-DIVIDEND> .15
<PER-SHARE-DISTRIBUTIONS> 1.68
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 23.04
<EXPENSE-RATIO> 1.00
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
PriceWaterhouseCoopers LLP
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Directors of
the IAA Trust Company Mutual Funds:
In planning and performing our audit of the financial statements and
financial highlights of the IAA Trust Company Mutual Funds (comprising
respectively, IAA Truyst Growth Fund, Inc., IAA Trust Asset Allocation
Fund, Inc., IAA Trust Tax Exempt Bond Fund, Inc., and IAA Trust Taxable
Fixed Income Series Fund, Inc., which includes the IAA Trust Money Market
Series, IAA Trust Short Term Government Bond Series, and IAA Trust Long
Term Bond Series)("the Fund") for the year ended June 30, 1998, we
considered its internal control, including control activities safeguarding
securities, in order to determine our auditing procedures for the purpose
of expressing our opinion on the financial statements and financail
highlights and to comply with the requirements of Form N-SAR, not to
provide assurance on the internal control structure.
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 Fund's objective of preparing financial statements and
financial highlights for external purposes that are fairly presented
inconformity with generally accepted accounting principles. Those
controls include the safeguarding of assets against unaurhotized acquisition,
use or disposition.
Because of inherent limitations in any internal controls, errors or fraud
may occur and may 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 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 any specific internal control component does not reduce to a
relatively low level the risk that errors or fraud in amounts that would be
material in relation to the financial statements and financial highlights
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, including
controls over safeguarding securities, that we consider to be material
weaknesses as defined above as of June 30, 1998.
This report is intended solely for the information and use of management
of the Securities and Exchange Commission.
/s/PriceWaterhouseCoopers LLP
PriceWaterhouseCoopers LLP
2400 Eleven Penn Center
Philadelphia, Pennsylvania
July 31 , 1998
