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<PAGE> PAGE 4
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<PAGE> PAGE 5
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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 HAEDT
TITLE CONTROLLER
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 01
<NAME> IAI GROWTH FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-START> APR-01-1995
<PERIOD-END> MAR-31-1996
<INVESTMENTS-AT-COST> 14269
<INVESTMENTS-AT-VALUE> 16832
<RECEIVABLES> 327
<ASSETS-OTHER> 574
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 17733
<PAYABLE-FOR-SECURITIES> 636
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 17
<TOTAL-LIABILITIES> 653
<SENIOR-EQUITY> 14
<PAID-IN-CAPITAL-COMMON> 13097
<SHARES-COMMON-STOCK> 1436
<SHARES-COMMON-PRIOR> 2448
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1405
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2563
<NET-ASSETS> 17079
<DIVIDEND-INCOME> 206
<INTEREST-INCOME> 45
<OTHER-INCOME> 0
<EXPENSES-NET> 260
<NET-INVESTMENT-INCOME> (9)
<REALIZED-GAINS-CURRENT> 3287
<APPREC-INCREASE-CURRENT> 135
<NET-CHANGE-FROM-OPS> 3413
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 50
<DISTRIBUTIONS-OF-GAINS> 1584
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 583
<NUMBER-OF-SHARES-REDEEMED> 1737
<SHARES-REINVESTED> 142
<NET-CHANGE-IN-ASSETS> 9714
<ACCUMULATED-NII-PRIOR> 50
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 293
<GROSS-ADVISORY-FEES> 156
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 313
<AVERAGE-NET-ASSETS> 20807
<PER-SHARE-NAV-BEGIN> 10.95
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 1.93
<PER-SHARE-DIVIDEND> .03
<PER-SHARE-DISTRIBUTIONS> .96
<RETURNS-OF-CAPITAL> 0
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<EXPENSE-RATIO> 1.25
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
EXHIBIT 99.77C
On March 21, 1996, a special
meeting of the shareholders of IAI
Investment Funds II, Inc., IAI Growth
Fund (the "Fund") was held. In addition
to the approval of auditors,
continuation of the current advisory
contract and the election of directors
the meeting also addressed the approval
of a new Management Agreement.
The Management Agreement provides
that IAI will provide or arrange for the
provision of services needed by the
Fund. These services include investment
advisory, administrative and other
miscellaneous shareholder services. The
Management Agreement does not compensate
IAI for any distribution services it may
arrange for the Fund. The Management
Agreement further provides that IAI will
pay all of the Fund's expenses except
brokerage commissions and other
expenditures in connection with the
purchase and sale of portfolio
securities, interest expense and any
taxes and extraordinary expenses
specifically approved by a majority of
the Fund's disinterested directors.
Finally, the basis for calculating the
fees under the Management Agreement is
average daily net assets. The switch
from average month-end net assets to
average daily net assets is expected to
have a negligible effect on the dollar
amount of the total fees and expenses
the Fund pays. The new, all-inclusive
fee, as a percentage of the Fund's
average daily net assets, that the Fund
will pay IAI under the Management
agreement is equal to 1.25% of the first
$100 million in net assets, 1.15% of the
next $150 million in net assets, 1.05%
of the next $250 million in net assets,
and 1.00% of net assets in excess of
$500 million.
The result of the proxy ballot is
as follows: IAI Growth Fund had
1,360,559 shares voted for the new
Management Agreement and 38,635 shares
voted against the new management
Agreement.
