<PAGE>
[AIM LOGO APPEARS HERE] Dear Shareholder:
[PHOTO of Mr. We are pleased to report that during the fiscal
Charles T. Bauer, year ended August 31, 1996, the Treasury
Chairman of the Portfolio of Short-Term Investments Trust
LETTER Board of the Fund continued to provide stability and a competitive
TO OUR APPEARS HERE] money market yield while a major shift in the
SHAREHOLDERS direction of interest rates took place.
As the economy weakened in the latter half of 1995, the
Federal Reserve Board pushed interest rates lower to help
cushion the slowdown. The federal funds target rate was lowered
in December and again in January, and then held unchanged from
the end of January through the August 31 close of the fiscal
year. The federal funds target, which serves as a benchmark for
other short-term rates, remained at 5.25%. However, short-term
markets were volatile as opinions shifted regarding the next
move in rates. As economic growth revived, concerns about
possible wage inflation surfaced. Credit markets anticipated a
tightening by the Fed, driving interest rates higher.
YOUR INVESTMENT PORTFOLIO
Treasury Portfolio maintained its investment discipline in this
changing environment. The Portfolio seeks to maximize current
income to the extent consistent with preservation of capital and
maintenance of liquidity. It invests exclusively in U.S.
Treasury securities and repurchase agreements secured by such
securities. Historically, the latter have been among the
highest-yielding trades available to the Portfolio.
<TABLE>
<S> <C> <C>
Yields as of 8/31/96
Average Seven-Day
Monthly Yield Yield
Treasury Portfolio
Institutional Class 5.23% 5.23%
IBC Money Fund Averages (TM)-
U.S. Treasury &
Repurchase Agreements 4.63% 4.65%
IBC Money Fund Averages (TM)-
Government Only/Institutional Only 4.94% 4.96%
</TABLE>
<TABLE>
<S> <C> <C> <C>
Lipper Rankings as of 8/31/96
Funds in Institutional
Treasury U.S. Treasury Money Percentile
Period Portfolio Rank Market Category Rank
1 Year 1 101 1%
3 Years 1 74 2%
5 Years 1 47 3%
10 Years 1 9 12%
Fund percentage rankings are based on total returns and are vs. all
institutional money market funds tracked by Lipper Analytical Services, Inc.,
excluding sales charges and including fees and expenses. Lipper Analytical
Services, Inc. is an independent mutual fund performance monitor.
</TABLE>
Government securities, such as U.S. Treasury bills and bonds,
offer a high degree of safety and are guaranteed as to the
timely payment of principal and interest if held to maturity.
Treasury Portfolio shares are not insured and their yield will
vary with market conditions. There can be no assurance that the
Portfolio will be able to maintain a stable net asset value of
$1.00 per share.
During the reporting period, Treasury Portfolio's barbell
portfolio structure and emphasis on repurchase agreements
allowed it to outperform its competitors. As 1996 unfolded, the
Portfolio was able to enhance yield as the yield curve became
more positively sloped and Treasury Portfolio managers purchased
securities strategically farther out in maturity.
(continued)
<PAGE>
As shown in the top table, performance of the Institutional
Class as of August 31 compared very favorably with performance
reported for comparative indexes.
The Portfolio's Institutional Class was the No. 1-ranked fund
in the Institutional U.S. Treasury Mutual Fund category
according to Lipper Analytical Services, Inc., an independent
mutual fund monitor.
The Portfolio continues to hold an 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 an annual analysis of Treasury
Portfolio's credit quality, composition, management, and weekly
portfolio reviews. Net assets of the Institutional Class stood
at $2.34 billion at close of the fiscal year.
OUTLOOK FOR THE FUTURE
As the reporting period closed, the economic outlook was for
continued growth with some slowing from the strong second
quarter of 1996. During the second quarter of 1996, the economy
expanded at an annualized rate of 4.7%. The extent of the
slowdown would help determine whether the Fed raised interest
rates to pre-empt inflationary pressures, and opinion about the
likelihood of a rate rise was divided. Forecasters who thought
Fed policy would remain unchanged until after November's
elections were proven correct September 24, 1996, when the Fed
chose to leave the federal funds rate at 5.25%.
Because the weighted average maturity of the Portfolio is
relatively short, Treasury Portfolio can respond quickly to
changes in the interest rate environment. As of the close of
the fiscal year, the Portfolio's weighted average maturity was
31 days.
We are pleased to send you this report concerning your
investment. AIM is committed to customer service and to the
primary objectives of safety, liquidity and yield in
institutional fund management. 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 if we
may be of service.
Respectfully submitted,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
2
<PAGE>
AVERAGE MONTHLY YIELD COMPARISON
12 months ended 8/31/96 (Yields are average monthly yields for the
month-ends shown)
<TABLE>
<CAPTION>
Short-Term Investments Trust
Treasury Portfolio IBC Money Fund Averages (TM) IBC Money Fund Averages (TM)
Institutional Class Government Only/Institutional Only U.S. Treasury & Repurchase Agreements
<S> <C> <C> <C>
9/95 5.75% 5.39% 5.13%
10/95 5.7 5.35 4.89
11/95 5.73 5.37 5.11
12/95 5.67 5.32 5.05
1/96 5.5 5.16 4.87
2/96 5.21 4.93 4.62
3/96 5.27 4.91 4.63
4/96 5.22 4.90 4.59
5/96 5.19 4.87 4.57
6/96 5.23 4.91 4.60
7/96 5.25 4.93 4.63
8/96 5.23 4.94 4.63
</TABLE>
WEIGHTED AVERAGE MATURITY COMPARISON
12 months ended 8/31/96
<TABLE>
<CAPTION>
Short-Term Investments Trust
Treasury Portfolio IBC Money Fund Averages (TM) IBC Money Fund Averages (TM)
Institutional Class Government Only/Institutional Only U.S. Treasury & Repurchase Agreements
<S> <C> <C> <C>
9/95 29 Days 43 Days 43 Days
10/95 38 45 45
11/95 35 41 41
12/95 33 39 42
1/96 41 38 46
2/96 39 44 49
3/96 35 41 47
4/96 39 44 46
5/96 41 44 45
6/96 40 44 42
7/96 34 40 40
8/96 31 43 45
</TABLE>
Source: IBC Financial Data, Inc. IBC Money Fund Report--Registered Trademark--
for weighted average maturities; IBC Money Fund Insight--Registered Trademark--
for average monthly yields.
3
<PAGE>
SCHEDULE OF INVESTMENTS
August 31, 1996
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
U.S. TREASURY SECURITIES - 27.96%
U.S. TREASURY BILLS(a) - 16.97%
5.20% 09/17/96 $175,000 $ 174,646,111
- ------------------------------------------------------------------------------
5.02% 10/24/96 50,000 49,630,472
- ------------------------------------------------------------------------------
5.16% 12/05/96 50,000 49,319,167
- ------------------------------------------------------------------------------
5.115% 12/12/96 50,000 49,275,374
- ------------------------------------------------------------------------------
5.22% 12/26/96 25,000 24,579,500
- ------------------------------------------------------------------------------
5.215% 01/02/97 25,000 24,554,552
- ------------------------------------------------------------------------------
5.33% 01/30/97 50,000 48,882,181
- ------------------------------------------------------------------------------
5.095% 02/13/97 25,000 24,416,198
- ------------------------------------------------------------------------------
5.10% 02/13/97 25,000 24,415,625
- ------------------------------------------------------------------------------
5.09% 03/06/97 25,000 24,342,541
- ------------------------------------------------------------------------------
5.248% 05/01/97 25,000 24,118,129
- ------------------------------------------------------------------------------
5.28% 05/01/97 25,000 24,112,667
- ------------------------------------------------------------------------------
5.318% 05/29/97 40,000 38,404,750
- ------------------------------------------------------------------------------
5.505% 06/26/97 25,000 23,860,771
- ------------------------------------------------------------------------------
5.39% 07/24/97 25,000 23,779,764
- ------------------------------------------------------------------------------
628,337,802
- ------------------------------------------------------------------------------
U.S. TREASURY NOTES - 10.99%
6.50% 09/30/96 50,000 50,052,967
- ------------------------------------------------------------------------------
7.00% 09/30/96 75,000 75,104,646
- ------------------------------------------------------------------------------
8.00% 10/15/96 55,000 55,174,050
- ------------------------------------------------------------------------------
7.50% 12/31/96 100,000 100,785,704
- ------------------------------------------------------------------------------
8.00% 01/15/97 75,000 75,763,373
- ------------------------------------------------------------------------------
6.625% 03/31/97 25,000 25,132,339
- ------------------------------------------------------------------------------
6.875% 03/31/97 25,000 25,188,361
- ------------------------------------------------------------------------------
407,201,440
- ------------------------------------------------------------------------------
Total U.S. Treasury Securities 1,035,539,242
- ------------------------------------------------------------------------------
Total Investments (excluding Repurchase
Agreements) 1,035,539,242
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 76.94%(b)
BA Securities, Inc. 5.25%(c) 09/03/96 175,000 175,000,000
- ------------------------------------------------------------------------------
BZW Securities, Inc. 5.25%(d) -- 175,000 175,000,000
- ------------------------------------------------------------------------------
Bear, Stearns & Co. 5.23%(e) -- 200,000 200,000,000
- ------------------------------------------------------------------------------
Daiwa Securities America, Inc. 5.24%(f) 09/03/96 93,693 93,692,696
- ------------------------------------------------------------------------------
Deutsche Morgan Grenfell/C.J. Lawrence, Inc.
5.25%(g) -- 560,000 560,000,000
- ------------------------------------------------------------------------------
CS First Boston Corp. (The) 5.25%(h) 09/03/96 175,000 175,000,000
- ------------------------------------------------------------------------------
Goldman, Sachs & Co. 5.28%(i) 09/03/96 500,000 500,000,000
- ------------------------------------------------------------------------------
HSBC Securities, Inc. 5.25%(j) 09/03/96 175,000 175,000,000
- ------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
REPURCHASE AGREEMENTS - continued
Morgan (J.P.) Securities, Inc.
5.23%(k) 09/03/96 $175,000 $ 175,000,000
- ----------------------------------------------------------------------------
Nesbitt Burns Securities, Inc.
5.26%(l) -- 96,000 96,000,000
- ----------------------------------------------------------------------------
Nikko Securities Co. International
(The), Inc. 5.22%(m) -- 175,000 175,000,000
- ----------------------------------------------------------------------------
Nomura Securities International, Inc.
5.25%(n) -- 175,000 175,000,000
- ----------------------------------------------------------------------------
UBS Securities LLC 5.23%(o) -- 175,000 175,000,000
- ----------------------------------------------------------------------------
Total Repurchase Agreements 2,849,692,696
- ----------------------------------------------------------------------------
TOTAL INVESTMENTS - 104.90% 3,885,231,938 (p)
- ----------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES -
(4.90)% (181,340,798)
- ----------------------------------------------------------------------------
NET ASSETS - 100.00% $3,703,891,140
============================================================================
</TABLE>
NOTES TO SCHEDULE OF INVESTMENTS:
(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, including the Portfolio's pro-rata
interest in joint repurchase agreements, is taken into possession by the
Portfolio 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, private accounts and certain non-registered investment companies
managed by the investment advisor or its affiliates.
(c) Entered into 08/30/96 with a maturing value of $175,102,083. Collateralized
by $179,050,000 U.S. Treasury obligations, 4.75% to 5.75% due 02/15/97 to
01/31/98.
(d) Open repurchase agreement entered into 07/15/96; however, either party may
terminate the agreement upon demand. Interest rates, par and collateral are
redetermined daily. Collateralized by $164,934,000 U.S. Treasury
obligations, 4.75% to 14.00% due 10/31/96 to 08/15/26.
(e) Open repurchase agreement entered into 07/01/96; however, either party may
terminate the agreement upon demand. Interest rates, par and collateral are
redetermined daily. Collateralized by $325,225,000 U.S. Treasury STRIPS,
due 02/15/98 to 02/15/19.
(f) Joint repurchase agreement entered into 08/30/96 with a maturing value of
$148,238,724. Collateralized by $147,480,000 U.S. Treasury obligations,
5.375% to 7.875% due 11/30/97 to 11/15/07.
(g) Open repurchase agreement entered into 03/20/96; however, either party may
terminate the agreement upon demand. Interest rates, par and collateral are
redetermined daily. Collateralized by $603,991,000 U.S. Treasury Bills, 0%
due 08/21/97.
(h) Entered into 08/30/96 with a maturing value of $175,102,083. Collateralized
by $183,339,000 U.S. Treasury Bills, 0% due 09/19/96 to 07/24/97.
(i) Joint repurchase agreement entered into 08/30/96 with a maturing value of
$834,779,144. Collateralized by $823,484,000 U.S. Treasury obligations, 0%
to 10.75% due 10/10/96 to 08/15/05.
(j) Entered into 08/30/96 with a maturing value of $175,102,083. Collateralized
by $154,810,000 U.S. Treasury obligations, 7.25% to 13.875% due 02/15/07 to
11/15/16.
(k) Entered into 08/30/96 with a maturing value of $175,101,694. Collateralized
by $174,972,000 U.S. Treasury obligations, 7.125% to 7.875% due 02/15/21 to
02/15/23.
(l) Open joint repurchase agreement entered into 04/16/96; however, either
party may terminate the agreement upon demand. Interest rates, par and
collateral are redetermined daily. Collateralized by $638,599,000 U.S.
Treasury obligations, 0% to 10.75% due 10/31/96 to 02/15/25.
(m) Open repurchase agreement entered into 07/15/96; however, either party may
terminate the agreement upon demand. Interest rates, par and collateral are
redetermined daily. Collateralized by $177,003,000 U.S. Treasury
obligations, 0% to 7.50% due 11/30/96 to 11/15/16.
(n) Open repurchase agreement entered into 07/16/96; however, either party may
terminate the agreement upon demand. Interest rates, par and collateral are
redetermined daily. Collateralized by $171,615,000 U.S. Treasury
obligations, 0% to 12.75% due 09/12/96 to 11/15/24.
(o) Open repurchase agreement entered into 07/15/96; however, either party may
terminate the agreement upon demand. Interest rates, par and collateral are
redetermined daily. Collateralized by $172,532,000 U.S. Treasury
obligations, 4.375% to 7.50% due 08/31/96 to 12/31/96.
(p) Also represents cost for federal income tax purposes.
See Notes to Financial Statements.
5
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
August 31, 1996
<TABLE>
<S> <C>
ASSETS:
Investments, excluding repurchase agreements, at value
(amortized cost) $1,035,539,242
- ------------------------------------------------------------------------
Repurchase agreements 2,849,692,696
- ------------------------------------------------------------------------
Interest receivable 9,950,056
- ------------------------------------------------------------------------
Investment for deferred compensation plan 46,313
- ------------------------------------------------------------------------
Other assets 152,808
- ------------------------------------------------------------------------
Total assets 3,895,381,115
- ------------------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 174,646,111
- ------------------------------------------------------------------------
Dividends 16,137,308
- ------------------------------------------------------------------------
Deferred compensation 46,313
- ------------------------------------------------------------------------
Accrued advisory fees 195,369
- ------------------------------------------------------------------------
Accrued distribution fees 228,007
- ------------------------------------------------------------------------
Accrued transfer agent fees 12,984
- ------------------------------------------------------------------------
Accrued trustees' fees 3,575
- ------------------------------------------------------------------------
Accrued administrative services fees 7,904
- ------------------------------------------------------------------------
Accrued operating expenses 212,404
- ------------------------------------------------------------------------
Total liabilities 191,489,975
- ------------------------------------------------------------------------
NET ASSETS $3,703,891,140
========================================================================
NET ASSETS:
Institutional Class $2,335,440,965
========================================================================
Private Investment Class $ 352,537,425
========================================================================
Personal Investment Class $ 192,946,526
========================================================================
Cash Management Class $ 789,626,991
========================================================================
Resource Class $ 33,339,233
========================================================================
SHARES OF BENEFICIAL INTEREST, $.01 PAR VALUE PER SHARE:
Institutional Class 2,335,032,174
========================================================================
Private Investment Class 352,475,718
========================================================================
Personal Investment Class 192,912,753
========================================================================
Cash Management Class 789,488,776
========================================================================
Resource Class 33,333,398
========================================================================
NET ASSET VALUE PER SHARE:
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, 1996
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest income $ 198,959,801
- ---------------------------------------------------------------------
EXPENSES:
Advisory fees 2,227,788
- ---------------------------------------------------------------------
Custodian fees 186,211
- ---------------------------------------------------------------------
Administrative services fees 86,796
- ---------------------------------------------------------------------
Trustees' fees and expenses 26,562
- ---------------------------------------------------------------------
Registration and filing fees 301,601
- ---------------------------------------------------------------------
Transfer agent fees 256,535
- ---------------------------------------------------------------------
Distribution fees (Note 2) 2,404,078
- ---------------------------------------------------------------------
Other 235,516
- ---------------------------------------------------------------------
Total expenses 5,725,087
- ---------------------------------------------------------------------
Less expenses assumed by advisor (113,500)
- ---------------------------------------------------------------------
Net expenses 5,611,587
- ---------------------------------------------------------------------
Net investment income 193,348,214
- ---------------------------------------------------------------------
Net realized gain on sales of investments 490,127
- ---------------------------------------------------------------------
Net increase in net assets resulting from operations $ 193,838,341
=====================================================================
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
For the years ended August 31, 1996 and 1995
<TABLE>
<CAPTION>
1996 1995
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 193,348,214 $ 164,659,385
- -----------------------------------------------------------------------------
Net realized gain on sales of investments 490,127 67,230
- -----------------------------------------------------------------------------
Net increase in net assets resulting from
operations 193,838,341 164,726,615
- -----------------------------------------------------------------------------
Distributions to shareholders from net
investment income (193,348,214) (164,659,385)
- -----------------------------------------------------------------------------
Distributions to shareholders from net
realized gain on investments -- (63,547)
- -----------------------------------------------------------------------------
Share transactions-net 443,432,341 232,658,749
- -----------------------------------------------------------------------------
Net increase in net assets 443,922,468 232,662,432
- -----------------------------------------------------------------------------
NET ASSETS:
Beginning of period 3,259,968,672 3,027,306,240
- -----------------------------------------------------------------------------
End of period $3,703,891,140 $3,259,968,672
=============================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $3,703,242,819 $3,259,810,478
- -----------------------------------------------------------------------------
Undistributed net realized gain on sales of
investments 648,321 158,194
- -----------------------------------------------------------------------------
$3,703,891,140 $3,259,968,672
=============================================================================
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS
August 31, 1996
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
five different classes of shares: the Institutional Class, the Private
Investment Class, the Personal Investment Class, the Cash Management Class and
the Resource Class. Matters affecting each class are voted on exclusively by
the shareholders of each class. The Portfolio's investment objective is the
maximization of current income to the extent consistent with the preservation
of capital and the maintenance of liquidity.
The following is a summary of significant accounting policies followed by the
Portfolio in the preparation of its financial statements. The preparation of
financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
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 $113,500 during the year ended August 31, 1996.
8
<PAGE>
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, 1996,
the Portfolio reimbursed AIM $86,796 for such services.
The Portfolio, pursuant to a transfer agent and service agreement, has agreed
to pay A I M Institutional Fund Services, Inc. ("AIFS") a fee for providing
transfer agent and shareholder services to the Portfolio. During the year ended
August 31, 1996, the Portfolio paid AIFS $256,535 for such services.
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 Rule 12b-1 under the 1940 Act with respect to the Private
Investment Class, the Personal Investment Class, the Cash Management Class and
the Resource Class of the Portfolio. The Plan provides that the Private
Investment Class, the Personal Investment Class, the Cash Management Class and
the Resource Class pay up to a 0.50%, 0.75%, 0.10%, and 0.20%, 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, (b) 0.10% of
the average daily net assets of the Cash Management Class and (c) 0.20% of the
average daily net assets of the Resource 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, the Cash Management
Class or the Resource 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, 1996, the Private Investment Class, the Personal Investment Class, the Cash
Management Class and the Resource Class accrued for compensation to FMC amounts
of $1,221,693, $712,960, $437,891, and $31,534, respectively, under the Plan.
Certain officers and trustees of the Trust are officers of AIM, FMC and AIFS.
During the year ended August 31, 1996, the Portfolio paid legal fees of
$12,753 for services provided by Kramer, Levin, Naftalis & Frankel. A member of
that firm is a trustee of the Fund.
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.
9
<PAGE>
NOTE 4-SHARE INFORMATION
Changes in shares outstanding during the years ended August 31, 1996 and 1995
were as follows:
<TABLE>
<CAPTION>
1996 1995
-------------------------------- ---------------------------------
SHARES AMOUNT SHARES AMOUNT
--------------- --------------- --------------- ----------------
<S> <C> <C> <C> <C>
Sold:
Institutional Class 15,527,980,642 $15,527,980,642 13,265,129,336 $ 13,265,129,336
- -------------------------------------------------------------------------------------------
Private Investment
Class 2,472,141,697 2,472,141,697 3,483,722,415 3,483,722,415
- -------------------------------------------------------------------------------------------
Personal Investment
Class 1,088,591,830 1,088,591,830 628,065,796 628,065,796
- -------------------------------------------------------------------------------------------
Cash Management Class 4,232,083,227 4,232,083,227 97,195,296 97,195,296
- -------------------------------------------------------------------------------------------
Resource Class* 157,958,663 157,958,663 -- --
- -------------------------------------------------------------------------------------------
Issued as reinvestment
of dividends:
Institutional Class 9,763,491 9,763,491 11,558,277 11,558,277
- -------------------------------------------------------------------------------------------
Private Investment
Class 3,211,766 3,211,766 2,167,906 2,167,906
- -------------------------------------------------------------------------------------------
Personal Investment
Class 4,455,140 4,455,140 2,719,512 2,719,512
- -------------------------------------------------------------------------------------------
Cash Management Class 8,200,664 8,200,664 2,671,137 2,671,137
- -------------------------------------------------------------------------------------------
Resource Class* 789,507 789,507 -- --
- -------------------------------------------------------------------------------------------
Reacquired:
Institutional Class (15,872,219,385) (15,872,219,385) (13,059,443,790) (13,059,443,790)
- -------------------------------------------------------------------------------------------
Private Investment
Class (2,517,444,015) (2,517,444,015) (3,504,019,234) (3,504,019,234)
- -------------------------------------------------------------------------------------------
Personal Investment
Class (1,014,656,105) (1,014,656,105) (604,841,208) (604,841,208)
- -------------------------------------------------------------------------------------------
Cash Management Class (3,532,010,008) (3,532,010,008) (92,266,694) (92,266,694)
- -------------------------------------------------------------------------------------------
Resource Class* (125,414,773) (125,414,773) -- --
- -------------------------------------------------------------------------------------------
Net increase 443,432,341 $ 443,432,341 232,658,749 $ 232,658,749
===========================================================================================
</TABLE>
* The Resource Class commenced operations on March 12, 1996.
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 ten-year period ended
August 31, 1996.
<TABLE>
<CAPTION>
1996 1995 1994 1993 1992 1991 1990 1989
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Income from
investment
operations:
Net investment
income 0.05 0.06 0.04 0.03 0.05 0.07 0.08 0.09
- ---------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Less
distributions:
Dividends from
net
investment
income (0.05) (0.06) (0.04) (0.03) (0.05) (0.07) (0.08) (0.09)
- ---------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net asset value,
end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
================ ========== ========== ========== ========== ========== ========== ========== ==========
Total return 5.57% 5.66% 3.53% 3.22% 4.56% 7.04% 8.52% 9.03%
================ ========== ========== ========== ========== ========== ========== ========== ==========
Ratios/supplemental
data:
Net assets, end
of period (000s
omitted) $2,335,441 $2,669,637 $2,452,389 $3,652,672 $3,835,387 $2,437,902 $1,703,460 $1,189,822
================ ========== ========== ========== ========== ========== ========== ========== ==========
Ratio of
expenses to
average net
assets 0.09%(a) 0.10% 0.08% 0.08% 0.09% 0.10% 0.12% 0.11%
================ ========== ========== ========== ========== ========== ========== ========== ==========
Ratio of net
investment
income to
average net
assets 5.43%(a) 5.53% 3.39% 3.17% 4.38% 6.73% 8.19% 8.69%
================ ========== ========== ========== ========== ========== ========== ========== ==========
<CAPTION>
1988 1987
----------- ---------
<S> <C> <C>
Net asset value,
beginning of
period $ 1.00 $ 1.00
- -------------------- ----------- ---------
Income from
investment
operations:
Net investment
income 0.07 0.06
- -------------------- ----------- ---------
Less
distributions:
Dividends from
net
investment
income (0.07) (0.06)
- -------------------- ----------- ---------
Net asset value,
end of period $ 1.00 $ 1.00
==================== =========== =========
Total return 6.98% 6.17%
==================== =========== =========
Ratios/supplemental
data:
Net assets, end
of period (000s
omitted) $1,121,144 $650,547
==================== =========== =========
Ratio of
expenses to
average net
assets 0.13% 0.14%
==================== =========== =========
Ratio of net
investment
income to
average net
assets 6.76% 6.01%
==================== =========== =========
</TABLE>
(a) Ratios are based on average net assets of $2,499,257,005.
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, 1996, 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, 1996 by correspondence with the custodian and brokers. 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, 1996, 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 4, 1996
11
<PAGE>
<TABLE>
<S> <C>
TRUSTEES
Charles T. Bauer John F. Kroeger Short-Term
Bruce L. Crockett Lewis F. Pennock Investments Trust
Owen Daly II Ian W. Robinson (STIT)
Carl Frischling Louis S. Sklar
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 Treasury Portfolio
Carol F. Relihan Sr. Vice President & Secretary -----------------------------------------------------
Dana R. Sutton Vice President & Assistant Treasurer Institutional ANNUAL
Melville B. Cox Vice President Class REPORT
Karen Dunn Kelley Vice President
J. Abbott Sprague Vice President
P. Michelle Grace Assistant Secretary
David L. Kite Assistant Secretary AUGUST 31, 1996
Nancy L. Martin Assistant Secretary
Ofelia M. Mayo Assistant Secretary
Kathleen J. Pflueger Assistant Secretary
Samuel D. Sirko Assistant Secretary
Stephen I. Winer Assistant Secretary
Mary J. Benson Assistant Treasurer
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
The Bank of New York
90 Washington Street, 11th Floor
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 & Frankel
919 Third Avenue
New York, NY 10022
TRANSFER AGENT
A I M Institutional Fund Services, Inc.
11 Greenway Plaza, Suite 1919
Houston, TX 77046-1173
AUDITORS
KPMG Peat Marwick LLP
700 Louisiana
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 prospectus. FUND MANAGEMENT COMPANY
</TABLE>
