IAI RETIREMENT FUNDS INC
NSAR-A, 1997-08-27
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<PAGE>      PAGE  1
000 A000000 06/30/97
000 C000000 0000912252
000 D000000 N
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000 F000000 Y
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001 A000000 IAI RETIREMENT FUNDS, INC.
001 B000000 811-8032
001 C000000 6123762600
002 A000000 3700 FIRST BANK PLACE, 601 2ND AVE S.
002 B000000 MINNEAPOLIS
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010 A00AA01 INVESTMENT ADVISERS, INC
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<PAGE>      PAGE  2
010 C04AA01 4327
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011 C03AA01 55402
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012 A00AA01 INVESTMENT ADVISERS, INC.
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014 A00AA01 INVESTMENT ADVISERS, INC.
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SIGNATURE   SUSAN J HAEDT                                
TITLE       CONTROLLER          
 


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<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                     56
<AVERAGE-NET-ASSETS>                             12662
<PER-SHARE-NAV-BEGIN>                            15.02
<PER-SHARE-NII>                                    .04
<PER-SHARE-GAIN-APPREC>                            1.2
<PER-SHARE-DIVIDEND>                               .07
<PER-SHARE-DISTRIBUTIONS>                          .62
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              15.57
<EXPENSE-RATIO>                                    .94
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<SERIES>
   <NUMBER> 03
   <NAME> IAI BALANCED PORTFOLIO
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               JUN-30-1997
<INVESTMENTS-AT-COST>                             1530
<INVESTMENTS-AT-VALUE>                            1717
<RECEIVABLES>                                       14
<ASSETS-OTHER>                                     171
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                    1906
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                           12
<TOTAL-LIABILITIES>                                 12
<SENIOR-EQUITY>                                      1
<PAID-IN-CAPITAL-COMMON>                          1659
<SHARES-COMMON-STOCK>                              141
<SHARES-COMMON-PRIOR>                              121
<ACCUMULATED-NII-CURRENT>                           24
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                             23
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                           187
<NET-ASSETS>                                      1894
<DIVIDEND-INCOME>                                    6
<INTEREST-INCOME>                                   29
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                      10
<NET-INVESTMENT-INCOME>                             24
<REALIZED-GAINS-CURRENT>                            23
<APPREC-INCREASE-CURRENT>                          110
<NET-CHANGE-FROM-OPS>                              157
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                           33
<DISTRIBUTIONS-OF-GAINS>                            35
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                             25
<NUMBER-OF-SHARES-REDEEMED>                          9
<SHARES-REINVESTED>                                  5
<NET-CHANGE-IN-ASSETS>                             360
<ACCUMULATED-NII-PRIOR>                             33
<ACCUMULATED-GAINS-PRIOR>                           35
<OVERDISTRIB-NII-PRIOR>                              0
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<PER-SHARE-NAV-BEGIN>                            12.71
<PER-SHARE-NII>                                    .14
<PER-SHARE-GAIN-APPREC>                           1.06
<PER-SHARE-DIVIDEND>                               .24
<PER-SHARE-DISTRIBUTIONS>                          .26
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              13.41
<EXPENSE-RATIO>                                   1.25
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<SERIES>
   <NUMBER> 02
   <NAME> IAI RESERVE PORTFOLIO
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               JUN-30-1997
<INVESTMENTS-AT-COST>                              523
<INVESTMENTS-AT-VALUE>                             523
<RECEIVABLES>                                        1
<ASSETS-OTHER>                                      47
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                     571
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                            8
<TOTAL-LIABILITIES>                                  8
<SENIOR-EQUITY>                                      1
<PAID-IN-CAPITAL-COMMON>                           561
<SHARES-COMMON-STOCK>                               56
<SHARES-COMMON-PRIOR>                               53
<ACCUMULATED-NII-CURRENT>                            1
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                       563
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                   15
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                       2
<NET-INVESTMENT-INCOME>                             12
<REALIZED-GAINS-CURRENT>                             0
<APPREC-INCREASE-CURRENT>                            0
<NET-CHANGE-FROM-OPS>                               12
<EQUALIZATION>                                       0
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<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                             21
<NUMBER-OF-SHARES-REDEEMED>                         19
<SHARES-REINVESTED>                                  1
<NET-CHANGE-IN-ASSETS>                              35
<ACCUMULATED-NII-PRIOR>                              2
<ACCUMULATED-GAINS-PRIOR>                            1
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
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<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                      7
<AVERAGE-NET-ASSETS>                               557
<PER-SHARE-NAV-BEGIN>                            10.03
<PER-SHARE-NII>                                    .22
<PER-SHARE-GAIN-APPREC>                          (.01)
<PER-SHARE-DIVIDEND>                               .24
<PER-SHARE-DISTRIBUTIONS>                          .02
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                               9.98
<EXPENSE-RATIO>                                    .85
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>


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