<PAGE> 1
SHORT-TERM INVESTMENTS TRUST
INSTITUTIONAL CLASS
OF THE
TREASURY PORTFOLIO
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 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 CHANGES TO FUNDAMENTAL INVESTMENT POLICIES
The Board has unanimously approved the elimination of or changes to
certain fundamental investment policies of the Fund, subject to shareholder
approval. Shareholders will be asked to approve these changes at the Annual
Meeting. If approved, they 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, and the amendment to another fundamental investment policy that
corresponds to the proposed elimination. The elimination of the fundamental
investment policy that prohibits the Fund from investing in other investment
companies and the proposed amendment to the corresponding 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.
Reference is made to Investment Restriction No. (1) of the Fund, set
forth on page 8 of the Fund's Prospectus related to the Institutional Class of
the Fund. The Board has approved the amendment of Investment Restriction No.
(1) of the Fund. In the event shareholders approve the proposed change,
Investment Restriction No. (1) will read in full as follows:
(1) purchase securities of any one issuer (other than
obligations of the U.S. Government, its agencies or instrumentalities)
if, immediately after such purchase, more than 5% of the value of the
Portfolio's total assets would be invested in such issuer, except as
permitted by Rule 2a-7 under the 1940 Act, as such rule may be amended
from time to time, and except that the Portfolio may purchase
securities of other investment companies to the extent permitted by
applicable law or exemptive order.
For additional information regarding the proposed changes 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.
<PAGE> 2
INSTITUTIONAL CLASS
OF THE
TREASURY 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 or changes
to certain fundamental investment policies of the Treasury Portfolio (the
"Fund"). Shareholders of the Fund will be asked to approve these changes at an
annual meeting of shareholders to be held on February 7, 1997. If approved,
these changes will become effective as of March 1, 1997.
Reference is made to Investment Restriction Nos.(2) and (10) of the
Fund, set forth on page A-16 of the Fund's Statement of Additional Information
related to the Institutional Class of the Fund. The Board of Trustees has
approved the elimination of Investment Restriction No. (10) and a change to
Investment Restriction No. (2) of the Fund. In the event shareholders approve
the proposed changes, Investment Restriction No. (10) will no longer apply and
Investment Restriction No. (2) will read in full as follows:
(2) purchase securities of any one issuer (other than
obligations of the U.S. Government, its agencies and
instrumentalities) if, immediately after such purchase, more than 5%
of the value of the Portfolio's total assets would be invested in such
issuer, except as permitted by Rule 2a-7 under the 1940 Act, as
amended from time to time, and except that the Portfolio may purchase
securities of other investment companies to the extent permitted by
applicable law or exemptive order.
