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SHORT-TERM INVESTMENTS TRUST
TREASURY TAXADVANTAGE PORTFOLIO
INSTITUTIONAL CLASS
Supplement dated December 16, 1996
to the Prospectus dated December 14, 1995,
as supplemented November 5, 1996
APPROVAL OF NEW ADVISORY, ADMINISTRATIVE SERVICES AND DISTRIBUTION AGREEMENTS
On December 11, 1996, the Board of Trustees (the "Board") of
Short-Term Investments Trust (the "Trust") approved a new investment advisory
agreement, subject to shareholder approval, between A I M Advisors, Inc.
("AIM") and the Trust with respect to Treasury TaxAdvantage Portfolio (the
"Fund"). Shareholders will be asked to approve the proposed advisory agreement
at an annual meeting of shareholders to be held on February 7, 1997 (the
"Annual Meeting"). The Board has also approved a new administrative services
agreement with AIM and a new distribution agreement with Fund Management
Company. There are no material changes to the terms of the new agreements,
including the fees payable by the Fund. No change is anticipated in the
investment advisory or other personnel responsible for the Fund as a result of
these new agreements.
The Board has approved these new agreements because the Fund's
corresponding existing agreements will terminate upon the consummation of the
proposed merger of A I M Management Group Inc., the parent of AIM, into a
subsidiary of INVESCO plc. INVESCO plc and its subsidiaries are an independent
investment management group engaged in institutional investment management and
retail mutual fund businesses in the United States, Europe and the Pacific
Region. It is contemplated that the merger will occur on February 28, 1997.
Provided that the Fund's shareholders approve the new investment advisory
agreement at the Annual Meeting and the merger is consummated, the new
investment advisory agreement with respect to the Fund, as well as the new
administrative services and distribution agreements, will automatically become
effective as of the closing of the merger.
PROPOSED CHANGE TO FUNDAMENTAL INVESTMENT POLICY
The Board has unanimously approved the elimination of a fundamental
investment policy of the Fund, subject to shareholder approval. Shareholders
will be asked to approve this change at the Annual Meeting. If approved, it
will become effective on March 1, 1997.
The Fund is currently generally prohibited from investing in other
investment companies. The Board has approved the elimination of this
prohibition. The elimination of this fundamental investment policy would
permit investment in other investment companies to the extent permitted by the
Investment Company Act of 1940, and rules and regulations thereunder, and, if
applicable, exemptive orders granted by the Securities and Exchange Commission.
For additional information regarding the proposed change described
above, see the Fund's Statement of Additional Information related to the
Institutional Class of the Fund, dated December 14, 1995, as supplemented
December 16, 1996.
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INSTITUTIONAL CLASS
OF
TREASURY TAXADVANTAGE PORTFOLIO
OF
SHORT-TERM INVESTMENTS TRUST
Supplement dated December 16, 1996
to the Statement of Additional Information Dated December 14, 1995
On December 11, 1996, the Board of Trustees of Short-Term Investments
Trust approved, subject to shareholder approval, the elimination of a
fundamental investment policy of the Treasury TaxAdvantage Portfolio (the
"Fund"). Shareholders of the Fund will be asked to approve the change at an
annual meeting of shareholders to be held on February 7, 1997. If approved,
the change will become effective as of March 1, 1997.
Reference is made to Investment Restriction No.(9) of the Fund, set
forth on page A-18 of the Fund's Statement of Additional Information related to
the Institutional Class of the Fund. Investment Restriction No. (9) states
that the Fund may not "acquire for value the securities of any other investment
company, except in connection with a merger, consolidation, reorganization or
acquisition of assets." The Board of Trustees has approved the elimination of
Investment Restriction No. (9) of the Fund. In the event shareholders approve
the proposed change, Investment Restriction No. (9) will no longer apply.
