<PAGE>
<TABLE>
<CAPTION>
<S> <C>
[AIM Logo Dear Shareholder:
appears here]
The Treasury Portfolio of Short-Term Investments Trust benefited from
[PHOTO of stabilizing economic conditions during the fiscal 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 Portfolio maintained its AAAm credit quality
rating, the highest given by Standard & Poor's Corporation, a widely known credit rating agency. The AAAm rating
is historical and is based on annual analysis of the portfolio's credit quality, composition, management, and
weekly portfolio review.
While the Federal Reserve pursued a tight money policy, Treasury Portfolio managers maintained a relatively
short weighted average maturity; during December, for example, the Fund's weighted average maturity averaged 11
days. As short-term rates stayed unchanged from February until the Federal Reserve lowered rates on July 6,
managers gradually extended weighted average maturity to 32 days at the close of the fiscal year. This strategy
helped the average monthly yield of the Private Investment Class of Treasury Portfolio to rise from 3.97% as of
August 31, 1994, to 5.42% as of August 31, 1995, excluding a short-term capital gain distributed during August.
Net assets of the Private Investment Class were $394.59 million at the close of the fiscal year.
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 the central bank's board left the federal funds rate unchanged. Such a relatively optimistic outlook allows
Treasury Portfolio to maintain a long weighted average maturity that seeks to maximize available yield without
sacrificing liquidity or exposing the Fund to net asset value risk. As with any money market fund, an
investment in Treasury 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 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 about this report and to any questions you may have. 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 Portfolio Private Investment Class vs. IBC/Donoghue's Money
MONTHLY YIELD Fund Averages(TM)--U.S. Treasury & Repurchase Agreements vs. IBC/
COMPARISON Donoghue's Money Fund Averages(TM)--Government Only/Institutional Only
12 months ended 8/31/95 [GRAPH APPEARS HERE]
IBC/Donoghue's Money IBC/Donoghue's Money
Measurement Fund Averages-- Fund Averages--
Period STIT Treasury Portfolio Government Only/ U.S. Treasury &
9/94 - 8/95 Private Investment Class Institutional Only Repurchase Agreements
<S> <C> <C> <C> <C>
9/94 4.20% Yield 4.34% Yield 4.02% Yield
10/94 4.26 4.47 4.11
11/94 4.77 4.78 4.47
12/94 5.12 5.15 4.80
1/95 5.15 5.27 4.88
2/95 5.54 5.56 5.24
3/95 5.63 5.64 5.35
4/95 5.66 5.66 5.38
5/95 5.66 5.65 5.36
6/95 5.66 5.62 5.36
7/95 5.50 5.49 5.19
8/95 5.42 5.40 5.11
Yields are 30-day average yields for the month-ends shown.
</TABLE>
<TABLE>
<CAPTION>
WEIGHTED STIT Treasury Portfolio vs. IBC/Donoghue's Money Fund Averages(TM)--
AVERAGE MATURITY U.S. Treasury & Repurchase Agreements vs. IBC/Donoghue's Money Fund
COMPARISON Averages(TM)--Government Only/Institutional Only
12 months ended 8/31/95
[GRAPH APPEARS HERE]
IBC/Donoghue's Money IBC/Donoghue's Money
Measurement Fund Averages-- Fund Averages--
Period Government Only/ U.S. Treasury &
9/94 - 8/95 STIT Treasury Portfolio Institutional Only Repurchase Agreements
<S> <C> <C> <C> <C>
9/94 17 Days 37 Days 37 Days
10/94 16 38 38
11/94 17 35 37
12/94 11 34 37
1/95 17 33 31
2/95 27 35 36
3/95 22 36 36
4/95 21 39 35
5/95 31 39 37
6/95 35 42 41
7/95 35 42 42
8/95 32 44 45
Source: IBC's Money Market Insight(R) of Holliston, MA 01746
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS
August 31, 1995
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
U.S. TREASURY SECURITIES - 26.52%
U.S. TREASURY BILLS(a) - 22.83%
5.780% 10/05/95 $ 25,000 $ 24,863,528
- ---------------------------------------------------------------------------
5.750% 10/26/95 50,000 49,560,764
- ---------------------------------------------------------------------------
5.775% 10/26/95 30,000 29,735,313
- ---------------------------------------------------------------------------
5.580% 11/02/95 25,000 24,759,750
- ---------------------------------------------------------------------------
5.620% 11/09/95 50,000 49,461,417
- ---------------------------------------------------------------------------
5.590% 11/16/95 30,000 29,645,966
- ---------------------------------------------------------------------------
5.655% 11/16/95 50,000 49,403,084
- ---------------------------------------------------------------------------
5.220% 11/30/95 12,500 12,336,875
- ---------------------------------------------------------------------------
5.590% 11/30/95 25,000 24,650,625
- ---------------------------------------------------------------------------
5.480% 12/07/95 25,000 24,630,861
- ---------------------------------------------------------------------------
5.335% 12/21/95 25,000 24,588,760
- ---------------------------------------------------------------------------
5.410% 12/21/95 50,000 49,165,958
- ---------------------------------------------------------------------------
5.330% 12/28/95 50,000 49,126,472
- ---------------------------------------------------------------------------
5.340% 12/28/95 25,000 24,562,416
- ---------------------------------------------------------------------------
5.280% 01/04/96 25,000 24,541,667
- ---------------------------------------------------------------------------
5.400% 01/04/96 20,000 19,625,000
- ---------------------------------------------------------------------------
5.410% 01/04/96 25,000 24,530,382
- ---------------------------------------------------------------------------
5.300% 01/11/96 34,200 33,535,380
- ---------------------------------------------------------------------------
5.380% 01/18/96 25,000 24,480,681
- ---------------------------------------------------------------------------
5.400% 01/25/96 25,000 24,452,500
- ---------------------------------------------------------------------------
5.415% 02/01/96 48,000 46,895,340
- ---------------------------------------------------------------------------
5.395% 02/08/96 25,000 24,400,556
- ---------------------------------------------------------------------------
5.460% 02/08/96 25,000 24,393,333
- ---------------------------------------------------------------------------
5.540% 08/22/96 20,000 18,904,224
- ---------------------------------------------------------------------------
5.550% 08/22/96 12,600 11,908,428
- ---------------------------------------------------------------------------
744,159,280
===========================================================================
U.S. TREASURY NOTES - 3.69%
8.625% 10/15/95 25,000 25,076,660
- ---------------------------------------------------------------------------
4.250% 11/30/95 50,000 49,768,670
- ---------------------------------------------------------------------------
7.750% 03/31/96 45,000 45,488,910
- ---------------------------------------------------------------------------
120,334,240
- ---------------------------------------------------------------------------
Total U.S. Treasury Securities 864,493,520
- ---------------------------------------------------------------------------
Total Investments (excluding Repurchase
Agreements) 864,493,520
- ---------------------------------------------------------------------------
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
REPURCHASE AGREEMENTS(b) - 73.86%
BT Securities Corp., 5.78%(c) -- $130,000 $ 130,000,000
- -----------------------------------------------------------------------------
Barclays de Zoete Wedd Government
Securities, Inc., 5.84%(d) 09/01/95 140,000 140,000,000
- -----------------------------------------------------------------------------
Bear, Stearns & Co. Inc., 5.84%(e) -- 140,000 140,000,000
- -----------------------------------------------------------------------------
Daiwa Securities America Inc., 5.84%(f) 09/01/95 117,902 117,902,411
- -----------------------------------------------------------------------------
Deutsche Bank Government Securities,
Inc., 5.85%(g) -- 160,000 160,000,000
5.85%(h) -- 400,000 400,000,000
- -----------------------------------------------------------------------------
First Boston Corp. (The), 5.80%(i) 09/01/95 140,000 140,000,000
- -----------------------------------------------------------------------------
Fuji Securities Inc., 5.85%(j) -- 100,000 100,000,000
5.87%(k) -- 110,000 110,000,000
- -----------------------------------------------------------------------------
Goldman, Sachs & Co., 5.80%(l) 09/01/95 140,000 140,000,000
- -----------------------------------------------------------------------------
Lehman Government Securities, Inc.,
5.82%(m) -- 140,000 140,000,000
- -----------------------------------------------------------------------------
Nikko Securities Co., Ltd., 5.85%(n) -- 130,000 130,000,000
- -----------------------------------------------------------------------------
Nomura Securities International, Inc.,
5.83%(o) 09/01/95 140,000 140,000,000
- -----------------------------------------------------------------------------
SBC Government Securities, Inc.,
5.83%(p) -- 140,000 140,000,000
- -----------------------------------------------------------------------------
State Street Bank & Trust Co., 5.81%(q) 09/01/95 140,000 140,000,000
- -----------------------------------------------------------------------------
UBS Securities Inc., 5.85%(r) -- 140,000 140,000,000
- -----------------------------------------------------------------------------
Total Repurchase Agreements 2,407,902,411
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100.38% 3,272,395,931(s)
- -----------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES --
(0.38%) (12,427,259)
- -----------------------------------------------------------------------------
NET ASSETS -- 100.00% $3,259,968,672
=============================================================================
</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) Collateral on repurchase agreements is taken into possession by the Fund
upon entering into the repurchase agreement. The collateral is marked to
market daily to ensure its market value as being 102% of the sales price of
the repurchase agreement. The investments in some repurchase agreements are
through participation in joint accounts with other mutual funds managed by
the investment advisor.
(c) Open repurchase agreement entered into 02/27/95; however, either party may
terminate the agreement upon demand. Interest rates are redetermined daily.
Collateralized by $95,590,000 U.S. Treasury Notes, 10.375% to 12.75% due
11/15/09 to 11/15/10.
(d) Entered into 08/31/95 with a maturing value of $140,022,711. Collateralized
by $138,800,000 U.S. Treasury obligations, 4.25% to 8.875% due 10/15/95 to
08/15/25.
(e) Open repurchase agreement entered into 07/06/95; however, either party may
terminate the agreement upon demand. Interest rates are redetermined daily.
Collateralized by $264,550,000 U.S. Treasury STRIPS, due 05/15/97 to
02/15/09.
(f) Joint repurchase agreement entered into 08/31/95 with a maturing value of
$209,464,857. Collateralized by $204,224,000 U.S. Treasury obligations, 0%
to 10.75% due 11/30/95 to 05/15/16.
(g) Open repurchase agreement entered into 04/13/94; however, either party may
terminate the agreement upon demand. Interest rates are redetermined daily.
Collateralized by $151,682,000 U.S. Treasury obligations, 0% to 8.75% due
04/04/96 to 05/15/21.
(h) Open repurchase agreement entered into 12/28/94; however, either party may
terminate the agreement upon demand. Interest rates are redetermined daily.
Collateralized by $339,762,000 U.S. Treasury obligations, 5.375% to 11.25%
due 09/30/96 to 02/15/20.
4
<PAGE>
(i) Entered into 08/31/95 with a maturing value of $140,022,556. Collateralized
by $145,970,000 U.S. Treasury Bills due 11/30/95 to 01/04/96.
(j) Open repurchase agreement entered into 01/11/95; however, either party may
terminate the agreement upon demand. Interest rates are redetermined daily.
Collateralized by $216,668,000 U.S. Treasury STRIPS, due 02/15/99 to
05/15/14.
(k) Open joint repurchase agreement entered into 06/20/95; however, either
party may terminate the agreement upon demand. Interest rates are
redetermined daily. Collateralized by $332,491,000 U.S. Treasury
obligations 0% to 9.25% due 05/15/97 to 02/15/16.
(l) Entered into 08/31/95 with a maturing value of $140,022,556. Collateralized
by $131,445,000 U.S. Treasury obligations, 3.875% to 12.00% due 10/31/95 to
11/15/18.
(m) Open repurchase agreement entered into 03/01/95; however, either party may
terminate the agreement upon demand. Interest rates are redetermined daily.
Collateralized by $594,791,000 U.S. Treasury STRIPS, due 05/15/98 to
05/15/21.
(n) Open repurchase agreement entered into 05/15/95; however, either party may
terminate the agreement upon demand. Interest rates are redetermined daily.
Collateralized by $132,685,000 U.S. Treasury Notes, 5.875% due 08/15/98.
(o) Entered into 08/31/95 with a maturing value of $140,022,672. Collateralized
by $130,344,000 U.S. Treasury obligations, 0% to 11.125% due 12/28/95 to
11/15/24.
(p) Open repurchase agreement entered into 08/16/95; however, either party may
terminate the agreement upon demand. Interest rates are redetermined daily.
Collateralized by $116,853,000 U.S. Treasury obligations, 0% to 11.875% due
03/07/96 to 08/15/23.
(q) Entered into 08/31/95 with a maturing value of $140,022,594. Collateralized
by $132,870,000 U.S. Treasury Notes, 7.125% to 7.75% due 09/30/99 to
11/30/99.
(r) Open joint repurchase agreement entered into 08/18/95; however, either
party may terminate the agreement upon demand. Collateralized by
$249,645,000 U.S. Treasury Bills, due 12/14/95 to 01/18/96.
(s) Also represents cost for federal income tax purposes.
See Notes to Financial Statements.
5
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
August 31, 1995
<TABLE>
<S> <C>
ASSETS:
Investments, excluding repurchase agreements, at value
(amortized cost) $ 864,493,520
- ------------------------------------------------------------------------
Repurchase agreements 2,407,902,411
- ------------------------------------------------------------------------
Interest receivable 3,526,829
- ------------------------------------------------------------------------
Investment for deferred compensation plan 27,164
- ------------------------------------------------------------------------
Other assets 170,052
- ------------------------------------------------------------------------
Total assets 3,276,119,976
- ------------------------------------------------------------------------
LIABILITIES:
Deferred compensation payable 27,164
- ------------------------------------------------------------------------
Dividends payable 15,637,389
- ------------------------------------------------------------------------
Accrued advisory fees 173,398
- ------------------------------------------------------------------------
Accrued distribution fees 150,161
- ------------------------------------------------------------------------
Accrued transfer agent fees 30,953
- ------------------------------------------------------------------------
Accrued trustees' fees 6,457
- ------------------------------------------------------------------------
Accrued administrative services fees 22,829
- ------------------------------------------------------------------------
Accrued operating expenses 102,953
- ------------------------------------------------------------------------
Total liabilities 16,151,304
- ------------------------------------------------------------------------
NET ASSETS $3,259,968,672
========================================================================
NET ASSETS:
Institutional Class $2,669,637,166
========================================================================
Private Investment Class $ 394,585,487
========================================================================
Personal Investment Class $ 114,527,171
========================================================================
Cash Management Class $ 81,218,848
========================================================================
SHARES OF BENEFICIAL INTEREST, $.01 PAR VALUE PER SHARE:
Institutional Class 2,669,507,426
========================================================================
Private Investment Class 394,566,270
========================================================================
Personal Investment Class 114,521,888
========================================================================
Cash Management Class 81,214,894
========================================================================
Net asset value, offering and redemption price per share $ 1.00
========================================================================
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
STATEMENT OF OPERATIONS
For the year ended August 31, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest income $169,306,110
- -----------------------------------------------------------------------------
EXPENSES:
Advisory fees 1,925,198
- -----------------------------------------------------------------------------
Custodian fees 315,447
- -----------------------------------------------------------------------------
Administrative services fees 208,753
- -----------------------------------------------------------------------------
Trustees' fees and expenses 33,135
- -----------------------------------------------------------------------------
Transfer agent fees 91,597
- -----------------------------------------------------------------------------
Professional fees 96,603
- -----------------------------------------------------------------------------
Distribution fees (Note 2) 1,751,898
- -----------------------------------------------------------------------------
Other 271,094
- -----------------------------------------------------------------------------
Total expenses 4,693,725
- -----------------------------------------------------------------------------
Less expenses assumed by advisor (47,000)
=============================================================================
Net expenses 4,646,725
=============================================================================
Net investment income 164,659,385
- -----------------------------------------------------------------------------
Net realized gain on sales of investments 67,230
- -----------------------------------------------------------------------------
Net increase in net assets resulting from operations $164,726,615
=============================================================================
</TABLE>
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 $ 164,659,385 $ 129,450,854
- -----------------------------------------------------------------------------
Net realized gain on sales of investments 67,230 63,526
- -----------------------------------------------------------------------------
Net increase in net assets resulting from
operations 164,726,615 129,514,380
- -----------------------------------------------------------------------------
Distributions to shareholders from net
investment income (164,659,385) (129,450,854)
- -----------------------------------------------------------------------------
Distributions to shareholders from net
realized gains on investments (63,547) --
- -----------------------------------------------------------------------------
Share transactions-net 232,658,749 (908,258,039)
- -----------------------------------------------------------------------------
Net increase (decrease) in net assets 232,662,432 (908,194,513)
- -----------------------------------------------------------------------------
NET ASSETS:
Beginning of period 3,027,306,240 3,935,500,753
- -----------------------------------------------------------------------------
End of period $3,259,968,672 $3,027,306,240
=============================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $3,259,810,478 $3,027,151,729
- -----------------------------------------------------------------------------
Undistributed net realized gain on sales of
investments 158,194 154,511
- -----------------------------------------------------------------------------
$3,259,968,672 $3,027,306,240
=============================================================================
</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.
Information presented in these financial statements pertains only to the
Treasury Portfolio (the "Portfolio"), with assets, liabilities and operations
of each portfolio being accounted for separately. The Portfolio consists of
four different classes of shares: the Institutional Class, the Private
Investment Class, the Personal Investment Class, and the Cash Management 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 $300 million 0.15%
- -----------------------------------------------------------------------
Over $300 million to $1.5 billion 0.06%
- -----------------------------------------------------------------------
Over $1.5 billion 0.05%
- -----------------------------------------------------------------------
</TABLE>
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 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. AIM voluntarily reimbursed
expenses of $47,000 on the Treasury Portfolio Personal Investment Class during
the year ended August 31, 1995.
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 $135,387 for such services. During the year ended
August 31, 1995, the Portfolio paid A I M Institutional Fund Services, Inc.
("AIFS") $114,179 for shareholder and transfer agency services. Effective July
1, 1995, AIFS became the exclusive transfer agent of the Portfolio.
Under the terms of a master distribution agreement between Fund Management
Company ("FMC") and the Fund, FMC acts as the exclusive distributor of the
Fund's shares. The Fund has adopted a master distribution plan (the "Plan")
pursuant to
8
<PAGE>
Rule 12b-1 under the 1940 Act with respect to the Private Investment Class,
Personal Investment Class and the Cash Management Class of the Portfolio. The
Plan provides that the Treasury Portfolio's Private Investment Class, Personal
Investment Class and Cash Management Class may pay up to a 0.50%, 0.75% and
0.10%, respectively, maximum annual rate of the average daily net assets
attributable to such class. Of this amount, the Fund may pay an asset-based
sales charge to FMC and the Fund may pay a service fee of (a) 0.25% of the
average daily net assets of each of the Private Investment Class and the
Personal Investment Class and (b) 0.10% of the average daily net assets of the
Cash Management Class, to selected banks, 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, the
Personal Investment Class or the Cash Management Class. Any amounts not paid as
a service fee under such Plan would constitute an asset-based sales charge.
During the year ended August 31, 1995, the Treasury Portfolio Private
Investment Class, the Treasury Portfolio Personal Investment Class and the
Treasury Portfolio Cash Management Class accrued for compensation to FMC
amounts of $1,244,628, $448,840 and $58,430, respectively, under the Plan.
Certain officers and trustees of the Trust are officers of AIM, FMC and AIFS.
The Portfolio paid legal fees of $9,818 for the year ended August 31, 1995 for
services rendered by Reid & Priest as counsel to the Board of Trustees. In
September 1994, Kramer, Levin, Naftalis, Nessen, Kamin & Frankel was appointed
as counsel to the Board of Trustees and the Portfolio paid legal fees of $8,687
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, Nessen, 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 invests 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 13,265,129,336 $ 13,265,129,336 26,026,026,543 $ 26,026,026,543
- ---------------------------------------------------------------------------------------------
Private Investment
Class 3,483,722,415 3,483,722,415 827,921,059 827,921,059
- ---------------------------------------------------------------------------------------------
Personal Investment
Class 628,065,796 628,065,796 343,375,963 343,375,963
- ---------------------------------------------------------------------------------------------
Cash Management Class 97,195,296 97,195,296 142,326,763 142,326,763
- ---------------------------------------------------------------------------------------------
Issued as reinvestment
of dividends:
Institutional Class 11,558,277 11,558,277 11,688,081 11,688,081
- ---------------------------------------------------------------------------------------------
Private Investment
Class 2,167,906 2,167,906 361,516 361,516
- ---------------------------------------------------------------------------------------------
Personal Investment
Class 2,719,512 2,719,512 1,153,701 1,153,701
- ---------------------------------------------------------------------------------------------
Cash Management Class 2,671,137 2,671,137 1,883,744 1,883,744
- ---------------------------------------------------------------------------------------------
Reacquired:
Institutional Class (13,059,443,790) (13,059,443,790) (27,238,038,910) (27,238,038,910)
- ---------------------------------------------------------------------------------------------
Private Investment
Class (3,504,019,234) (3,504,019,234) (619,863,560) (619,863,560)
- ---------------------------------------------------------------------------------------------
Personal Investment
Class (604,841,208) (604,841,208) (325,817,071) (325,817,071)
- ---------------------------------------------------------------------------------------------
Cash Management Class (92,266,694) (92,266,694) (79,275,868) (79,275,868)
- ---------------------------------------------------------------------------------------------
Net increase (decrease) 232,658,749 $ 232,658,749 (908,258,039) $ (908,258,039)
=============================================================================================
</TABLE>
9
<PAGE>
NOTE 5-FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for a share outstanding of
the Treasury Portfolio Private Investment Class during each of the years in the
three-year period ended August 31, 1995 and the period November 25, 1991 (date
operations commenced) through August 31, 1992.
<TABLE>
<CAPTION>
1995 1994 1993 1992
-------- -------- -------- -----
<S> <C> <C> <C> <C>
Net asset value, beginning of
period $ 1.00 $ 1.00 $ 1.00 $1.00
- ---------------------------------- -------- -------- -------- -----
Income from investment operations:
Net investment income 0.05 0.03 0.03 0.03
- ---------------------------------- -------- -------- -------- -----
Less distributions:
Dividends from net investment
income (0.05) (0.03) (0.03) (0.03)
- ---------------------------------- -------- -------- -------- -----
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $1.00
================================== ======== ======== ======== =====
Total return 5.34% 3.22% 2.91 % 3.92%(a)
================================== ======== ======== ======== =====
Ratios/supplemental data:
Net assets, end of period (000s
omitted) $394,585 $412,716 $204,281 $525
================================== ======== ======== ======== =====
Ratio of expenses to average net
assets(b) 0.40%(c) 0.38% 0.38% 0.40%(a)
================================== ======== ======== ======== =====
Ratio of net investment income to
average net assets(b) 5.23%(c) 3.26% 2.81% 3.68%(a)
================================== ======== ======== ======== =====
</TABLE>
(a) Annualized.
(b) Had there been no expense reimbursements, the ratios of expenses and net
investment income to average net assets would have been 0.40% and 3.25%,
respectively, for the year ended August 31, 1994 and 0.47% and 2.72%,
respectively, for the year ended August 31, 1993.
(c) Ratios are based on average net assets of $414,815,972.
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 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 ten-year period then ended.
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 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 ten-year period then ended, 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
Karen Dunn Kelley Vice President Treasury
J. Abbott Sprague Vice President Portfolio
Dana R. Sutton Vice President & Assistant Treasurer ------------------------------------------------
P. Michelle Grace Assistant Secretary Private ANNUAL
Nancy L. Martin Assistant Secretary Investment REPORT
Ofelia M. Mayo Assistant Secretary Class
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>
