<PAGE>
<TABLE>
<CAPTION>
<S> <C>
[AIM Logo Dear Shareholder:
appears here]
The Treasury TaxAdvantage Portfolio of Short-Term Investments Trust benefited from
[PHOTO of stabilizing economic conditions during the year ended August 31, 1995.
Charles T. Bauer, It was a year marked by contrast. Early in 1995, the Federal Reserve Board
LETTER Chairman of the completed a yearlong policy of tightening interest rates to defuse threatening
Board of the Fund, inflationary pressures. Robust economic growth at the 5.1% annualized rate
TO OUR APPEARS HERE] logged in the fourth quarter of 1994 was considered unsustainable by
most analysts.
SHAREHOLDERS Following a noninflationary 2.7% annualized rate during 1995's
first quarter, economic growth slowed during the second quarter to an annual rate of
just 1.3%. In July, the Federal Reserve turned recession fighter and eased short-term interest rates by 0.25%.
At its August meeting, the Federal Reserve left rates unchanged. Federal Reserve vice chairman Alan Blinder
recently told The Wall Street Journal, "The risk of recession now looks small."
YOUR INVESTMENT PORTFOLIO
We are pleased to note that in this changing environment, Treasury TaxAdvantage Portfolio continued its strict
investment discipline, holding only direct obligations of the U.S. Treasury. It also maintained its AAAm-G credit
quality rating, the highest given by Standard & Poor's Corporation, a widely known credit rating agency. The
AAAm-G rating is historical and is based on annual analysis of the Portfolio's credit quality, composition,
management, and weekly portfolio review.
In light of the Federal Reserve's tight money policy, Treasury TaxAdvantage Portfolio managers maintained a
relatively short weighted average maturity; during January, for example, the Fund's weighted average maturity
averaged 30 days. As short-term rates remained unchanged from February until the Federal Reserve lowered rates on
July 6, managers gradually extended weighted average maturity to 52 days at the close of the fiscal year. This
strategy helped the average monthly yield of the Institutional Class of Treasury TaxAdvantage Portfolio to rise
from 4.13% as of August 31, 1994, to 5.45% as of August 31, 1995, excluding a short-term capital gain distributed
during August. At the close of the fiscal year, net assets of the Institutional Class were $394.38 million.
OUTLOOK FOR THE FUTURE
As of fiscal year end, inflation seemed firmly under control. Economic signals were mixed but generally
encouraging. The Federal Reserve prepared a sanguine economic review in advance of its September 26 meeting, at
which it left the federal funds rate unchanged. Such a relatively optimistic outlook allows Treasury TaxAdvantage
Portfolio to maintain a long weighted average maturity that seeks to maximize available yield without sacrificing
liquidity or exposing the Fund to additional net asset value risk. As with any money market fund, an investment
in Treasury TaxAdvantage Portfolio is neither insured nor guaranteed by the U.S. government, and there can be no
assurance the Fund will be able to maintain a stable net asset value of $1.00 per share. At the close of the
fiscal year, yields on money market funds such as Treasury TaxAdvantage Portfolio remained relatively attractive
compared to other short-term investments.
We are pleased to send you this report concerning your Fund. AIM is committed to customer
service and an investment objective that seeks to maximize current income while preserving capital and
maintaining liquidity. As ever, we are ready to respond to your comments and to any questions.
Please contact one of our representatives at 800-659-1005.
Respectfully submitted,
/s/ Charles T. Bauer
Charles T. Bauer
Chairman
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE STIT Treasury TaxAdvantage Portfolio Institutional Class vs. IBC/Donoghue's
MONTHLY YIELD Money Fund Averages(TM)-Government Only/Institutional Only
COMPARISON
12 months ended 8/31/95 [GRAPH APPEARS HERE]
Measurement IBC/Donoghue's
Period STIT Treasury TaxAdvantage Money Fund Averages
9/94 - 8/95 Portfolio Institutional Class -Government Only/Institutional Only
<S> <C> <C> <C>
9/94 4.25% Yield 4.34% Yield
10/94 4.48 4.47
11/94 4.72 4.78
12/94 5.01 5.15
1/95 5.21 5.27
2/95 5.43 5.56
3/95 5.63 5.64
4/95 5.67 5.66
5/95 5.65 5.65
6/95 5.59 5.62
7/95 5.52 5.49
8/95 5.45 5.40
Yields are 30-day average yields for the month-ends shown.
WEIGHTED STIT Treasury TaxAdvantage Portfolio vs. IBC/Donoghue's Money Fund
AVERAGE MATURITY Averages(TM)-Government Only/Institutional Only
COMPARISON
12 months ended 8/31/95 [GRAPH APPEARS HERE]
Measurement IBC/Donoghue's
Period STIT Treasury Money Fund Averages
9/94 - 8/95 TaxAdvantage Portfoilio -Government Only/Institutional Only
<S> <C> <C> <C>
9/94 39 Days 37 Days
10/94 44 38
11/94 44 35
12/94 32 34
1/95 32 33
2/95 49 35
3/95 42 36
4/95 44 39
5/95 50 39
6/95 50 42
7/95 48 42
8/95 52 44
Source: IBC's Money Market Insight(R) of Holliston, MA 01746
</TABLE>
2
<PAGE>
SCHEDULE OF INVESTMENTS
August 31, 1995
<TABLE>
<CAPTION>
MATURITY PAR VALUE
<S> <C> <C> <C>
U.S. TREASURY SECURITIES - 100.39%
U.S. TREASURY BILLS(a) - 94.61%
5.425% 09/07/95 $ 1,370,000 $ 1,368,761
- ----------------------------------------------------------------------
5.58% 09/07/95 5,470,000 5,464,913
- ----------------------------------------------------------------------
5.595% 09/07/95 7,000,000 6,993,473
- ----------------------------------------------------------------------
5.745% 09/07/95 17,870,000 17,852,889
- ----------------------------------------------------------------------
5.325% 09/14/95 1,295,000 1,292,510
- ----------------------------------------------------------------------
5.40% 09/14/95 7,100,000 7,086,155
- ----------------------------------------------------------------------
5.41% 09/14/95 2,615,000 2,609,891
- ----------------------------------------------------------------------
5.455% 09/14/95 3,300,000 3,293,499
- ----------------------------------------------------------------------
5.49% 09/14/95 3,250,000 3,243,557
- ----------------------------------------------------------------------
5.375% 09/21/95 12,640,000 12,602,256
- ----------------------------------------------------------------------
5.42% 09/21/95 450,000 448,645
- ----------------------------------------------------------------------
5.63% 09/21/95 710,000 707,780
- ----------------------------------------------------------------------
5.635% 09/21/95 15,000,000 14,953,042
- ----------------------------------------------------------------------
5.64% 09/21/95 3,655,000 3,643,548
- ----------------------------------------------------------------------
5.66% 09/21/95 8,000,000 7,974,845
- ----------------------------------------------------------------------
5.69% 09/21/95 200,000 199,368
- ----------------------------------------------------------------------
5.48% 09/28/95 10,415,000 10,372,194
- ----------------------------------------------------------------------
5.41% 10/05/95 2,555,000 2,541,945
- ----------------------------------------------------------------------
5.465% 10/05/95 10,000,000 9,948,386
- ----------------------------------------------------------------------
5.50% 10/05/95 25,000,000 24,870,140
- ----------------------------------------------------------------------
5.62% 10/05/95 1,630,000 1,621,348
- ----------------------------------------------------------------------
5.37% 10/12/95 4,400,000 4,373,090
- ----------------------------------------------------------------------
5.375% 10/12/95 16,375,000 16,274,760
- ----------------------------------------------------------------------
5.38% 10/12/95 4,100,000 4,074,878
- ----------------------------------------------------------------------
5.44% 10/12/95 4,555,000 4,526,779
- ----------------------------------------------------------------------
5.475% 10/12/95 11,965,000 11,890,393
- ----------------------------------------------------------------------
5.41% 10/19/95 15,890,000 15,775,380
- ----------------------------------------------------------------------
5.425% 10/19/95 15,245,000 15,134,727
- ----------------------------------------------------------------------
5.45% 10/19/95 1,860,000 1,846,484
- ----------------------------------------------------------------------
5.49% 10/19/95 15,000,000 14,890,200
- ----------------------------------------------------------------------
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
MATURITY PAR VALUE
<S> <C> <C> <C>
U.S. TREASURY SECURITIES--(continued)
U.S. TREASURY BILLS(a)-(CONTINUED)
5.43% 10/26/95 $12,315,000 $ 12,212,837
- ---------------------------------------------------------------------------
5.41% 11/02/95 710,000 703,385
- ---------------------------------------------------------------------------
5.415% 11/02/95 7,010,000 6,944,626
- ---------------------------------------------------------------------------
5.43% 11/02/95 12,000,000 11,887,780
- ---------------------------------------------------------------------------
5.415% 11/09/95 4,050,000 4,007,966
- ---------------------------------------------------------------------------
5.445% 11/09/95 1,520,000 1,504,137
- ---------------------------------------------------------------------------
5.47% 11/09/95 20,000,000 19,790,317
- ---------------------------------------------------------------------------
5.315% 11/16/95 2,115,000 2,091,269
- ---------------------------------------------------------------------------
5.37% 11/16/95 8,515,000 8,418,468
- ---------------------------------------------------------------------------
5.43% 11/16/95 295,000 291,618
- ---------------------------------------------------------------------------
5.45% 11/16/95 20,000,000 19,769,889
- ---------------------------------------------------------------------------
5.345% 11/24/95 2,480,000 2,449,070
- ---------------------------------------------------------------------------
5.35% 11/24/95 4,840,000 4,779,581
- ---------------------------------------------------------------------------
5.375% 11/24/95 12,000,000 11,849,500
- ---------------------------------------------------------------------------
5.41% 11/24/95 4,305,000 4,250,657
- ---------------------------------------------------------------------------
5.42% 11/24/95 7,200,000 7,108,944
- ---------------------------------------------------------------------------
5.33% 11/30/95 3,220,000 3,177,094
- ---------------------------------------------------------------------------
5.30% 12/14/95 265,000 260,943
- ---------------------------------------------------------------------------
5.31% 12/14/95 29,315,000 28,865,308
- ---------------------------------------------------------------------------
378,239,225
- ---------------------------------------------------------------------------
U.S. TREASURY NOTES - 5.78%
5.125% 11/15/95 14,150,000 14,134,017
- ---------------------------------------------------------------------------
4.25% 11/30/95 9,000,000 8,969,328
- ---------------------------------------------------------------------------
23,103,345
- ---------------------------------------------------------------------------
Total U.S. Treasury Securities 401,342,570
- ---------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100.39%(B) 401,342,570(c)
- ---------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES --
(0.39%) (1,543,472)
- ---------------------------------------------------------------------------
NET ASSETS -- 100.00% $399,799,098
===========================================================================
</TABLE>
(a) U.S. Treasury bills are traded on a discount basis. In such cases the
interest rate shown represents the rate of discount paid or received at the
time of purchase by the Portfolio.
(b) Percentage of Net Assets.
(c) Also represents cost for federal income tax purposes.
See Notes to Financial Statements.
4
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
August 31, 1995
<TABLE>
<S> <C>
ASSETS:
Investments, at value (amortized cost) $401,342,570
- ----------------------------------------------------------------------
Cash 2,686
- ----------------------------------------------------------------------
Interest receivable 311,990
- ----------------------------------------------------------------------
Investment for deferred compensation plan 6,131
- ----------------------------------------------------------------------
Other assets 9,807
- ----------------------------------------------------------------------
Total assets 401,673,184
- ----------------------------------------------------------------------
LIABILITIES:
Dividends payable 1,769,980
- ----------------------------------------------------------------------
Deferred compensation payable 6,131
- ----------------------------------------------------------------------
Accrued advisory fees 60,277
- ----------------------------------------------------------------------
Accrued transfer agent fees 2,385
- ----------------------------------------------------------------------
Accrued trustees' fees 1,075
- ----------------------------------------------------------------------
Accrued administrative services fees 5,525
- ----------------------------------------------------------------------
Accrued distribution fees 1,179
- ----------------------------------------------------------------------
Accrued operating expenses 27,534
- ----------------------------------------------------------------------
Total liabilities 1,874,086
- ----------------------------------------------------------------------
NET ASSETS $399,799,098
======================================================================
NET ASSETS:
Institutional Class $394,375,864
======================================================================
Private Investment Class $ 5,423,234
======================================================================
NET ASSET VALUE PER SHARE:
Shares outstanding, $.01 par value per share:
Institutional Class 394,308,752
======================================================================
Private Investment Class 5,422,315
======================================================================
Net asset value, offering and redemption price per share $ 1.00
======================================================================
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
STATEMENT OF OPERATIONS
For the year ended August 31, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest income $21,243,050
- ------------------------------------------------------------------
EXPENSES:
Advisory fees 713,549
- ------------------------------------------------------------------
Custodian fees 36,901
- ------------------------------------------------------------------
Administrative services fees 42,823
- ------------------------------------------------------------------
Trustees' fees and expenses 7,599
- ------------------------------------------------------------------
Transfer agent fees 17,122
- ------------------------------------------------------------------
Printing expenses 29,481
- ------------------------------------------------------------------
Distribution fees 10,159
- ------------------------------------------------------------------
Other 66,628
- ------------------------------------------------------------------
Total expenses 924,262
- ------------------------------------------------------------------
Less expenses assumed by advisor (129,100)
==================================================================
Net expenses 795,162
==================================================================
Net investment income 20,447,888
- ------------------------------------------------------------------
Net realized gain on sales of investments 24,806
- ------------------------------------------------------------------
Net increase in net assets resulting from operations $20,472,694
==================================================================
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
For the years ended August 31, 1995 and 1994
<TABLE>
<CAPTION>
1995 1994
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 20,447,888 $ 13,926,577
- ----------------------------------------------------------------------------
Net realized gain on sales of investments 24,806 12,246
- ----------------------------------------------------------------------------
Net increase in net assets resulting from
operations 20,472,694 13,938,823
- ----------------------------------------------------------------------------
Distributions to shareholders from net
investment income (20,447,888) (13,926,577)
- ----------------------------------------------------------------------------
Distributions to shareholders from net realized
gains on investments (12,244) --
- ----------------------------------------------------------------------------
Share transactions-net (4,095,169) (30,823,909)
- ----------------------------------------------------------------------------
Net increase (decrease) in net assets (4,082,607) (30,811,663)
- ----------------------------------------------------------------------------
NET ASSETS:
Beginning of period 403,881,705 434,693,368
- ----------------------------------------------------------------------------
End of period $399,799,098 $403,881,705
============================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $399,731,067 $403,826,236
- ----------------------------------------------------------------------------
Undistributed net realized gain on sales of
investments 68,031 55,469
- ----------------------------------------------------------------------------
$399,799,098 $403,881,705
============================================================================
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS
August 31, 1995
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
Short-Term Investments Trust (the "Fund") is registered under the Investment
Company Act of 1940, as amended, as an open-end series, diversified management
investment company. The Fund is organized as a Delaware business trust
consisting of two different portfolios, each of which offers separate series of
shares: the Treasury Portfolio and the Treasury TaxAdvantage Portfolio, with
the assets, liabilities and operations of each portfolio accounted for
separately. Information presented in these financial statements pertains only
to the Treasury TaxAdvantage Portfolio (the "Portfolio"). The Portfolio
consists of two different classes of shares: the Institutional Class and the
Private Investment Class.
The following is a summary of the significant accounting policies followed by
the Portfolio in the preparation of its financial statements.
A. Security Valuations - The Portfolio invests only in securities which have
maturities of 397 days or less. The securities are valued on the basis of
amortized cost which approximates market value. This method values a
security at its cost on the date of purchase and thereafter assumes a
constant amortization to maturity of any discount or premium.
B. Securities Transactions, Investment Income and Distributions - Securities
transactions are accounted for on a trade date basis. Realized gains or
losses are computed on the basis of specific identification of the
securities sold. Interest income, adjusted for amortization of premiums and
discounts on investments, is accrued daily. Dividends to shareholders are
declared daily and are paid on the first business day of the following
month.
C. Federal Income Taxes - The Portfolio intends to comply with the requirements
of the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income
taxes is recorded in the financial statements.
D. Expenses - Operating expenses directly attributable to a class of shares are
charged to that class' operations. Expenses which are applicable to more
than one class, e.g., advisory fees, are allocated among them.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the master advisory agreement, AIM
receives a monthly fee with respect to the Portfolio calculated by applying a
monthly rate, based upon the following annual rates, to the average daily net
assets of the Portfolio:
<TABLE>
<CAPTION>
Net Assets RATE
- -----------------------------------------------------------------------
<S> <C>
First $250 million 0.20%
- -----------------------------------------------------------------------
Over $250 million to $500 million 0.15%
- -----------------------------------------------------------------------
Over $500 million 0.10%
- -----------------------------------------------------------------------
</TABLE>
The Fund has entered into a master distribution agreement with Fund Management
Company ("FMC") for the distribution of shares of the Institutional Class and
the Private Investment Class. The Company has also adopted a distribution plan
(the "Plan") pursuant to Rule 12b-1 under the 1940 Act with respect to the
Private Investment Class. The Plan provides that the Private Investment Class
may pay up to a 0.50% maximum annual rate of the Private Investment Class'
average daily net assets. Of this amount, the Fund may pay an asset-based sales
charge to FMC and the Portfolio may pay a service fee of 0.25% of the average
daily net assets of the Private Investment Class to selected broker-dealers and
other financial institutions who offer continuing personal shareholder services
to their customers who purchase and own shares of the Private Investment Class.
Any amounts not paid as a service fee under such Plan would constitute an
asset-based sales charge. The Plan also imposes a cap on the total amount of
sales charges, including asset-based sales charges, that may be paid by the
Portfolio with respect to the Private Investment Class. During the year ended
August 31, 1995, the Private Investment Class paid $10,159 as compensation
under the Plan.
AIM will, if necessary, reduce its fee for any fiscal year to the extent
required so that the amount of ordinary expenses of the Portfolio (excluding
interest, taxes, brokerage commissions and extraordinary expenses) paid or
incurred by the Portfolio
8
<PAGE>
for such fiscal year does not exceed the applicable expense limitations imposed
by the state securities regulations in any state in which the Portfolio's
shares are qualified for sale. During the year ended August 31, 1995, AIM
voluntarily waived advisory fees of $117,100 and assumed expenses of $12,000.
The Portfolio, pursuant to a master administrative services agreement with
AIM, has agreed to reimburse AIM for certain costs incurred in providing
accounting services to the Portfolio. During the year ended August 31, 1995,
the Portfolio reimbursed AIM $42,823 for such services. During the year ended
August 31, 1995, the Portfolio paid A I M Institutional Fund Services, Inc.
("AIFS") $10,913 for shareholder and transfer agency services. Effective July
1, 1995, AIFS became the exclusive transfer agent of the Portfolio.
Certain officers and trustees of the Fund are officers and directors of AIM,
FMC, and AIFS.
The Portfolio paid legal fees of $471 for services rendered by Reid & Priest
as counsel to the Board of Trustees. In September 1994, Kramer, Levin,
Naftalis, Kamin & Frankel was appointed as counsel to the Board of Trustees and
the Portfolio paid legal fees of $2,654 for services rendered by that firm as
counsel to the Board of Trustees. A trustee of the Trust was a member of the
firm of Reid & Priest until September 1994, when he became a member of Kramer,
Levin, Naftalis, Kamin & Frankel.
NOTE 3-TRUSTEES' FEES
Trustees' fees represent remuneration paid or accrued to each trustee who is
not an "interested person" of AIM. The Fund may invest trustees' fees, if so
elected by a trustee, in mutual fund shares in accordance with a deferred
compensation plan.
NOTE 4-SHARE INFORMATION
Changes in shares outstanding for the years ended August 31, 1995 and 1994 were
as follows:
<TABLE>
<CAPTION>
1995 1994
------------------------------- --------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------- --------------- -------------- ----------------
<S> <C> <C> <C> <C>
Sold:
Institutional Class 1,566,228,552 $ 1,566,228,552 1,529,572,244 $ 1,529,572,244
- ------------------------------------------------------------------------------------------
Private Investment
Class* 29,762,798 29,762,798 -- --
- ------------------------------------------------------------------------------------------
Issued as reinvestment
of dividends:
Institutional Class 255,484 255,484 72,270 72,270
- ------------------------------------------------------------------------------------------
Private Investment
Class* 211,779 211,779 -- --
- ------------------------------------------------------------------------------------------
Reacquired:
Institutional Class (1,576,001,520) (1,576,001,520) (1,560,468,423) (1,560,468,423)
- ------------------------------------------------------------------------------------------
Private Investment
Class* (24,552,262) (24,552,262) -- --
==========================================================================================
Net increase (decrease) (4,095,169) $ (4,095,169) (30,823,909) $ (30,823,909)
==========================================================================================
</TABLE>
* The Private Investment Class commenced operations on December 21, 1994.
9
<PAGE>
NOTE 5-FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for a share outstanding of
the Institutional Class during each of the years in the five-year period ended
August 31, 1995 and the period August 17, 1990 (date operations commenced)
through August 31, 1990.
<TABLE>
<CAPTION>
AUGUST 31,
---------------------------------------------------------------------
1995 1994 1993 1992 1991 1990
-------- -------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ----------------------- -------- -------- -------- -------- -------- -------
Income from investment
operations:
Net investment income 0.05 0.03 0.03 0.04 0.07 0.003
- ----------------------- -------- -------- -------- -------- -------- -------
Less distributions:
Dividends from net
investment income (0.05) (0.03) (0.03) (0.04) (0.07) (0.003)
- ----------------------- -------- -------- -------- -------- -------- -------
Net asset value, end of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======================= ======== ======== ======== ======== ======== =======
Total return 5.35% 3.29% 2.96% 4.32% 6.70% 7.79%(a)
======================= ======== ======== ======== ======== ======== =======
Ratios/supplemental
data:
Net assets, end of
period (000s omitted) $394,376 $403,882 $434,693 $573,283 $403,846 $16,201
======================= ======== ======== ======== ======== ======== =======
Ratio of expenses to
average net assets 0.20%(b) 0.20%(c) 0.20% 0.17%(c) 0.14%(c) 0.10%(d)
======================= ======== ======== ======== ======== ======== =======
Ratio of net investment
income to average net
assets 5.21%(b) 3.23%(c) 2.93% 4.16%(c) 6.16%(c) 7.74%(d)
======================= ======== ======== ======== ======== ======== =======
</TABLE>
(a) Annualized.
(b) After waiver of advisory fees. Ratios are based on average net assets of
$388,302,148. Ratios of expenses and net investment income to average net
assets prior to waiver of advisory fees were 0.23% and 5.18%, respectively.
(c) After waiver of advisory fees.
(d) Annualized. After waiver of advisory fees and expense reimbursements.
10
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Board of Trustees and Shareholders
Short-Term Investments Trust:
We have audited the accompanying statement of assets and liabilities of the
Treasury TaxAdvantage Portfolio (a series portfolio of Short-Term Investments
Trust), including the schedule of investments, as of August 31, 1995, and the
related statement of operations for the year then ended, the statement of
changes in net assets for each of the years in the two-year period then ended,
and the financial highlights for each of the years in the five-year period then
ended and the period August 17, 1990 (date operations commenced) through August
31, 1990. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
August 31, 1995, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Treasury TaxAdvantage Portfolio as of August 31, 1995, the results of its
operations for the year then ended, the changes in its net assets for each of
the years in the two-year period then ended, and the financial highlights for
each of the years in the five-year period then ended, and the period August 17,
1990 (date operations commenced) through August 31, 1990 in conformity with
generally accepted accounting principles.
KPMG Peat Marwick LLP
Houston, Texas
October 6, 1995
11
<PAGE>
<TABLE>
<S> <C> <C> <C>
TRUSTEES
Charles T. Bauer John F. Kroeger
Bruce L. Crockett Lewis F. Pennock SHORT-TERM
Owen Daly II Ian W. Robinson INVESTMENTS TRUST
Carl Frischling Louis S. Sklar (STIT)
Robert H. Graham
OFFICERS
Charles T. Bauer Chairman
Robert H. Graham President
John J. Arthur Sr. Vice President & Treasurer
Gary T. Crum Sr. Vice President
Carol F. Relihan Vice President & Secretary
Melville B. Cox Vice President Treasury
Karen Dunn Kelley Vice President TaxAdvantage
J. Abbott Sprague Vice President Portfolio
Dana R. Sutton Vice President & Assistant Treasurer ------------------------------------------------
P. Michelle Grace Assistant Secretary Institutional ANNUAL
Nancy L. Martin Assistant Secretary Class REPORT
Ofelia M. Mayo Assistant Secretary
Kathleen J. Pflueger Assistant Secretary
Samuel D. Sirko Assistant Secretary
Stephen I. Winer Assistant Secretary
Mary J. Benson Assistant Secretary
INVESTMENT ADVISOR
A I M Advisors, Inc.
11 Greenway Plaza, Suite 1919
Houston, TX 77046
(800) 347-1919
DISTRIBUTOR
Fund Management Company
11 Greenway Plaza, Suite 1919
Houston, TX 77046
(800) 659-1005
CUSTODIAN AUGUST 31, 1995
The Bank of New York
110 Washington Street
New York, NY 10286
LEGAL COUNSEL TO FUND
Ballard Spahr Andrews & Ingersoll
1735 Market Street, 51st Floor
Philadelphia, PA 19103-7599
LEGAL COUNSEL TO TRUSTEES
Kramer, Levin, Naftalis, Nessen, Kamin & Frankel
919 Third Avenue
New York, NY 10022
TRANSFER AGENT
A I M Institutional Fund Services, Inc.
11 Greenway Plaza, Suite 1919
Houston, TX 77046
AUDITORS
KPMG Peat Marwick LLP
700 NationsBank Building
Houston, TX 77002
This report may be distributed only to current shareholders or [LOGO APPEARS HERE]
to persons who have received a current Fund prospectus. Fund Management Company
</TABLE>
