IAI INVESTMENT FUNDS III INC
NSAR-A, 1998-06-24
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<PAGE>      PAGE  1
000 A000000 04/30/98
000 C000000 0000806128
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 IAI INVESTMENT FUND III, INC.
001 B000000 811-4904
001 C000000 6123762600
002 A000000 3700 FIRST BANK PLACE, 601 2ND AVE SOUTH
002 B000000 MINNEAPOLIS
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002 D010000 55402
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007 C020300 IAI LATIN AMERICA FUND
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008 D01AA01 MINNEAPOLIS
008 D02AA01 MN
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008 D04AA01 4327
008 A00AA02 IAI INTERNATIONAL, INC.
008 B00AA02 S
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008 D01AA02 LONDON
008 D05AA02 ENGLAND
010 A00AA01 INVESTMENT ADVISERS, INC.
010 B00AA01 8013784
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<PAGE>      PAGE  2
010 C03AA01 55402
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011 A00AA01 INVESTMENT ADVISERS, INC.
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011 C04AA01 4327
012 A00AA01 INVESTMENT ADVISERS, INC.
012 B00AA01 84-1664
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013 A00AA01 KPMG PEAT MARWICK, LLP
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014 A00AA01 DELETE
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<PAGE>      PAGE  3
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<PAGE>      PAGE  5
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080 A00AA00 ICI MUTUAL INSURANCE COMPANY
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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  10
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SIGNATURE   SUSAN J HAEDT                                
TITLE       VP OPERATIONS       
 


<TABLE> <S> <C>

<ARTICLE> 6
<SERIES>
   <NUMBER> 03
   <NAME> IAI LATIN AMERICA FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          OCT-31-1998
<PERIOD-START>                             NOV-01-1997
<PERIOD-END>                               APR-30-1998
<INVESTMENTS-AT-COST>                             2088
<INVESTMENTS-AT-VALUE>                            2302
<RECEIVABLES>                                       25
<ASSETS-OTHER>                                     113
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                    2440
<PAYABLE-FOR-SECURITIES>                            53
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                            0
<TOTAL-LIABILITIES>                                 53
<SENIOR-EQUITY>                                      2
<PAID-IN-CAPITAL-COMMON>                          2158
<SHARES-COMMON-STOCK>                              231
<SHARES-COMMON-PRIOR>                              322
<ACCUMULATED-NII-CURRENT>                           27
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                            15
<ACCUM-APPREC-OR-DEPREC>                           213
<NET-ASSETS>                                      2387
<DIVIDEND-INCOME>                                   50
<INTEREST-INCOME>                                    6
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                      27
<NET-INVESTMENT-INCOME>                             28
<REALIZED-GAINS-CURRENT>                          (15)
<APPREC-INCREASE-CURRENT>                           96
<NET-CHANGE-FROM-OPS>                              109
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            7
<DISTRIBUTIONS-OF-GAINS>                           483
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                             13
<NUMBER-OF-SHARES-REDEEMED>                        152
<SHARES-REINVESTED>                                 48
<NET-CHANGE-IN-ASSETS>                          (1426)
<ACCUMULATED-NII-PRIOR>                              7
<ACCUMULATED-GAINS-PRIOR>                          483
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                               40
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<GROSS-EXPENSE>                                     41
<AVERAGE-NET-ASSETS>                              2671
<PER-SHARE-NAV-BEGIN>                            11.83
<PER-SHARE-NII>                                    .13
<PER-SHARE-GAIN-APPREC>                            .32
<PER-SHARE-DIVIDEND>                               .03
<PER-SHARE-DISTRIBUTIONS>                         1.94
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              10.31
<EXPENSE-RATIO>                                   2.07
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>


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