<PAGE>
[AIM LOGO APPEARS HERE] Dear Shareholder:
[PHOTO of Mixed signals from a vigorous economy were the
Charles T. Bauer, chief focus for fixed-income markets during
Chairman of the most of the past year. Although the Federal
LETTER Board of the Fund, Reserve Board (the Fed) raised rates only once
TO OUR APPEARS HERE] during the fiscal year covered by this report,
SHAREHOLDERS the period was marked by considerable
fluctuation in the money markets.
In March 1997, the Fed raised the key short-term target, namely
the federal funds rate, from 5.25% to 5.50%. That action was in
response to concern about the inflationary potential of strong
economic growth during the last quarter of 1996 and the first
quarter of 1997. Short-term yields rose as markets anticipated
another increase in interest rates at the Fed's next meeting in May.
But when signs of a slowing economy appeared, the Fed decided not
to raise rates further in May. Money market yields fell
significantly, reflecting changed expectations of near-term interest
rate stability. In fact, the federal funds rate remained unchanged
from March through Short-Term Investments Trust Treasury
TaxAdvantage Portfolio's August 31 fiscal year-end.
The economy continued to display considerable resilience, growing
at a 3.3% annual rate during the second quarter of 1997. Though
there were no outward signs of inflation, the extension of a strong
growth pattern heightened uncertainty about Fed policy, and that led
to increased volatility in the money markets.
YOUR INVESTMENT PORTFOLIO
Although the Treasury bill yield curve was inverted for much of the
year, the Portfolio held to its consistent investment discipline,
purchasing only U.S. Treasury bills and notes, and maintaining a
relatively short, laddered portfolio structure. The laddered
structure is used to help ensure the portfolio's yield is not unduly
influenced by reinvestment rates on any particular maturity date.
The weighted average maturity was held between 45 and 57 days during
the fiscal year to take advantage of higher rates available on
longer maturities. As of the close of the fiscal year, the weighted
average maturity was 57 days.
The Portfolio seeks to maximize current income to the extent
consistent with preservation of capital and maintenance of
liquidity. It purchases only direct obligations of the U.S.
Treasury, which provides shareholders with dividends exempt from
state and local income taxation in certain jurisdictions. 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 if held to maturity. As with any money market fund, an
investment in Treasury TaxAdvantage Portfolio is neither insured nor
guaranteed by the U.S. government, the FDIC, or a bank, and there
can be no assurance that the Portfolio will be able to maintain a
stable net asset value of $1.00 per share.
(continued)
<PAGE>
As of August 31, 1997, the Institutional Class of the Portfolio
offered competitive yields: Its average monthly yield was 5.09%, and
its seven-day yield was 5.10%.
The Portfolio continues to hold the highest credit quality ratings
given by two widely known credit-rating agencies: AAAm-G from
Standard & Poor's Corporation and Aaa from Moody's Investors
Service, Inc. The ratings are historical and are based on an
analysis of the Portfolio's credit quality, composition, management,
and weekly portfolio reviews.
Net assets of the Institutional Class stood at $258 million as of
August 31, 1997.
OUTLOOK FOR THE FUTURE
As the reporting period closed, the general expectation was that
the economy would continue to grow at a sustainable annual pace of
2% to 3% and that inflation would remain under control. However,
underlying strength in various economic indicators, including
consumer spending and capital expenditures by companies, signals the
potential for faster growth, which could trigger higher short-term
rates later this year. This uncertainty could cause interest rates
to remain volatile through the close of 1997.
The Portfolio expects to continue to maintain its relatively short
maturity structure, remaining flexible to take advantage of any
sudden rise in market yields or further rate increases by the Fed.
We are pleased to send you this report concerning your investment.
AIM remains committed to the primary goals of safety, liquidity and
yield in institutional fund management. We also are committed to
customer service and 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 8/31/97 (Yields are average monthly yields for the month-ends
shown)
<TABLE>
<CAPTION>
Short-Term Investments IBC Money Fund Averages(TM)-
Trust Treasury TaxAdvantage Government Only/
Portfolio Institutional Class Institutions Only
<S> <C> <C>
9/96 5.03% 4.94%
5.00 4.92
11/96 4.98 4.98
4.96 4.97
1/97 4.94 4.96
4.94 4.93
3/97 4.96 4.99
5.05 5.07
5/97 5.06 5.09
5.06 5.10
7/97 5.07 5.11
8/97 5.09 5.16
</TABLE>
WEIGHTED AVERAGE MATURITY COMPARISON
12 months ended 8/31/97
<TABLE>
<CAPTION>
Short-Term Investments IBC Money Fund Averages(TM)-
Trust Treasury TaxAdvantage Government Only/
Portfolio Institutional Class Institutions Only
<S> <C> <C>
9/96 53 44
55 44
11/96 57 47
57 47
1/97 48 42
54 45
3/97 38 41
49 44
5/97 54 46
52 45
7/97 57 44
8/97 57 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, 1997
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
U.S. TREASURY SECURITIES - 97.50%
U.S. TREASURY BILLS(a) - 50.07%
5.08% 09/04/97 $1,260 $ 1,259,467
- --------------------------------------------------------------------------
5.10% 09/11/97 5,325 5,317,456
- --------------------------------------------------------------------------
5.12% 09/11/97 3,700 3,694,738
- --------------------------------------------------------------------------
5.27% 09/11/97 3,540 3,534,818
- --------------------------------------------------------------------------
5.39% 09/15/97 35,330 35,261,234
- --------------------------------------------------------------------------
4.985% 10/02/97 8,115 8,080,165
- --------------------------------------------------------------------------
5.10% 10/23/97 20,000 19,852,667
- --------------------------------------------------------------------------
5.145% 11/06/97 15,000 14,858,513
- --------------------------------------------------------------------------
5.16% 11/06/97 5,800 5,745,132
- --------------------------------------------------------------------------
5.155% 11/13/97 30,000 29,686,404
- --------------------------------------------------------------------------
5.05% 11/28/97 20,000 19,755,917
- --------------------------------------------------------------------------
5.08% 11/28/97 1,970 1,945,536
- --------------------------------------------------------------------------
148,992,047
- --------------------------------------------------------------------------
U.S. TREASURY NOTES - 47.43%
5.75% 09/30/97 28,000 28,007,430
- --------------------------------------------------------------------------
8.75% 10/15/97 30,885 31,006,112
- --------------------------------------------------------------------------
5.625% 10/31/97 32,000 32,009,268
- --------------------------------------------------------------------------
8.875% 11/15/97 19,000 19,123,626
- --------------------------------------------------------------------------
5.375% 11/30/97 31,000 30,989,280
- --------------------------------------------------------------------------
141,135,716
- --------------------------------------------------------------------------
Total U.S. Treasury Securities 290,127,763
- --------------------------------------------------------------------------
TOTAL INVESTMENTS -- 97.50% 290,127,763(b)
- --------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES -- 2.50% 7,435,017
- --------------------------------------------------------------------------
NET ASSETS -- 100.00% $297,562,780
==========================================================================
</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) Also represents cost for federal income tax purposes.
See Notes to Financial Statements.
4
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
August 31, 1997
<TABLE>
<S> <C>
ASSETS:
Investments, at value (amortized cost) $290,127,763
- ----------------------------------------------------------------------
Cash 4,236
- ----------------------------------------------------------------------
Receivables for:
Interest 3,233,140
- ----------------------------------------------------------------------
Investments sold 60,588,116
- ----------------------------------------------------------------------
Investment for deferred compensation plan 19,053
- ----------------------------------------------------------------------
Other assets 4,805
- ----------------------------------------------------------------------
Total assets 353,977,113
- ----------------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 55,017,151
- ----------------------------------------------------------------------
Dividends 1,280,331
- ----------------------------------------------------------------------
Deferred compensation 19,053
- ----------------------------------------------------------------------
Accrued advisory fees 38,536
- ----------------------------------------------------------------------
Accrued distribution fees 7,613
- ----------------------------------------------------------------------
Accrued transfer agent fees 2,500
- ----------------------------------------------------------------------
Accrued trustees' fees 684
- ----------------------------------------------------------------------
Accrued administrative services fees 4,679
- ----------------------------------------------------------------------
Accrued operating expenses 43,786
- ----------------------------------------------------------------------
Total liabilities 56,414,333
- ----------------------------------------------------------------------
NET ASSETS $297,562,780
======================================================================
NET ASSETS:
Institutional Class $258,251,179
======================================================================
Private Investment Class $ 39,311,601
======================================================================
SHARES OF BENEFICIAL INTEREST, $.01 PAR VALUE PER SHARE:
Institutional Class 258,076,160
======================================================================
Private Investment Class 39,285,316
======================================================================
NET ASSET VALUE PER SHARE:
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, 1997
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest income $20,141,650
- ------------------------------------------------------------------
EXPENSES:
Advisory fees 705,397
- ------------------------------------------------------------------
Custodian fees 24,390
- ------------------------------------------------------------------
Administrative services fees 56,844
- ------------------------------------------------------------------
Trustees' fees and expenses 9,331
- ------------------------------------------------------------------
Transfer agent fees 35,426
- ------------------------------------------------------------------
Distribution fees (Note 2) 248,512
- ------------------------------------------------------------------
Other 71,762
- ------------------------------------------------------------------
Total expenses 1,151,662
- ------------------------------------------------------------------
Less: Fee waivers and expense reimbursements (252,524)
- ------------------------------------------------------------------
Net expenses 899,138
- ------------------------------------------------------------------
Net investment income 19,242,512
- ------------------------------------------------------------------
Net realized gain on sales of investments 77,371
- ------------------------------------------------------------------
Net increase in net assets resulting from operations $19,319,883
==================================================================
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
For the years ended August 31, 1997 and 1996
<TABLE>
<CAPTION>
1997 1996
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 19,242,512 $ 22,487,304
- -------------------------------------------------------------------------
Net realized gain on sales of investments 77,371 55,902
- -------------------------------------------------------------------------
Net increase in net assets resulting from
operations 19,319,883 22,543,206
- -------------------------------------------------------------------------
Distributions to shareholders from net
investment income:
Institutional Class (16,879,485) (21,490,375)
- -------------------------------------------------------------------------
Private Class (2,363,027) (996,929)
- -------------------------------------------------------------------------
Share transactions-net (159,710,741) 57,341,150
- -------------------------------------------------------------------------
Net increase (decrease) in net assets (159,633,370) 57,397,052
- -------------------------------------------------------------------------
NET ASSETS:
Beginning of period 457,196,150 399,799,098
- -------------------------------------------------------------------------
End of period $297,562,780 $457,196,150
=========================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $297,361,476 $457,072,217
- -------------------------------------------------------------------------
Undistributed net realized gain on sales of
investments 201,304 123,933
- -------------------------------------------------------------------------
$297,562,780 $457,196,150
=========================================================================
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS
August 31, 1997
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 TaxAdvantage Portfolio (the "Portfolio") with assets, liabilities and
operations of each portfolio accounted for separately. The Portfolio consists
of two different classes of shares: the Institutional Class and the Private
Investment Class. Matters affecting each class are voted on exclusively by the
shareholders of each class. The Portfolio is a money market fund whose
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 the 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 these financial
statements and the reported amount 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 - Distribution and transfer agency expenses directly attributable
to a class of shares are charged to that class' operations. All other
expenses are allocated among the classes.
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>
During the year ended August 31, 1997, AIM voluntarily waived advisory fees of
$123,468 and assumed expenses of $4,800.
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, 1997,
the Portfolio reimbursed AIM $56,844 for such services.
The Portfolio, pursuant to a transfer agency and service agreement, has agreed
to pay AIM Institutional Fund Services, Inc. ("AIFS") a fee for providing
transfer agent and shareholder services to the Fund. During the year ended
August 31, 1997, the Portfolio paid AIFS $35,426 for such services. On
September 19, 1997, the Board of Trustees of the Fund approved the appointment
of A I M Fund Services, Inc. ("AFS") as transfer agent of the Fund to be
effective in late 1997 or early 1998.
7
<PAGE>
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 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 Fund may pay a service fee of 0.25% of the average daily net
assets of the Private Investment 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.
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, 1997, the Private Investment Class paid $124,256 as compensation
under the Plan. FMC waived fees of $124,256 for the same period. Certain
officers and trustees of the Trust are officers of AIM, FMC, AFS and AIFS.
During the year ended August 31, 1997, the Portfolio paid legal fees of $4,209
for services rendered by Kramer, Levin, Naftalis & Frankel as counsel to the
Board of Trustees. 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 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, 1997, and 1996
were as follows:
<TABLE>
<CAPTION>
1997 1996
------------------------------ -------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------- -------------- -------------- ---------------
<S> <C> <C> <C> <C>
Sold:
Institutional Class 1,249,698,433 $1,249,698,433 1,931,081,349 $ 1,931,081,349
- ---------------------------------------------------------------------------------------
Private Investment
Class 274,981,089 274,981,089 173,175,235 173,175,235
- ---------------------------------------------------------------------------------------
Issued as reinvestment
of dividends:
Institutional Class 425,111 425,111 279,901 279,901
- ---------------------------------------------------------------------------------------
Private Investment
Class 479,712 479,712 215,983 215,983
- ---------------------------------------------------------------------------------------
Reacquired:
Institutional Class (1,399,155,040) (1,399,155,040) (1,918,562,346) (1,918,562,346)
- ---------------------------------------------------------------------------------------
Private Investment
Class (286,140,046) (286,140,046) (128,848,972) (128,848,972)
- ---------------------------------------------------------------------------------------
Net increase
(decrease) (159,710,741) $ (159,710,741) 57,341,150 $ 57,341,150
=======================================================================================
</TABLE>
8
<PAGE>
NOTE 5-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share outstanding of the
Institutional Class for each of the years in the five-year period ended August
31, 1997.
<TABLE>
<CAPTION>
1997 1996 1995 1994 1993
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------- -------- -------- -------- -------- --------
Income from investment
operations:
Net investment income 0.05 0.05 0.05 0.03 0.03
- ------------------------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net
investment income (0.05) (0.05) (0.05) (0.03) (0.03)
- ------------------------- -------- -------- -------- -------- --------
Net asset value, end of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========================= ======== ======== ======== ======== ========
Total return 5.13% 5.19% 5.35% 3.29% 2.96%
========================= ======== ======== ======== ======== ========
Ratios/supplemental data:
Net assets, end of period
(000s omitted) $258,251 $407,218 $394,376 $403,882 $434,693
========================= ======== ======== ======== ======== ========
Ratio of expenses to
average net assets(a) 0.20%(b) 0.20% 0.20% 0.20% 0.20%
========================= ======== ======== ======== ======== ========
Ratio of net investment
income to average net
assets(c) 5.00%(b) 5.06% 5.21% 3.23% 2.93%
========================= ======== ======== ======== ======== ========
</TABLE>
(a) After fee waivers and/or expense reimbursements. Ratios of expenses to
average net assets prior to fee waivers and/or expense reimbursements were
0.23% for the periods 1997-1994, respectively.
(b) Ratios are based on average net assets of $337,228,562.
(c) After fee waivers and/or expense reimbursements. Ratios of net investment
income to average net assets prior to fee waivers and/or expense
reimbursements were 4.97%, 5.04%, 5.18% and 3.20% for the periods 1997-
1994, respectively.
9
<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, 1997, and the
related statement of operations for the year then ended, the statements 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. 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, 1997, 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 TaxAdvantage Portfolio as of August 31, 1997, 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, in conformity with
generally accepted accounting principles.
KPMG Peat Marwick LLP
Houston, Texas
October 3, 1997
10
<PAGE>
SUPPLEMENTAL PROXY INFORMATION -- SHAREHOLDER MEETING
- --------------------------------------------------------------------------------
The Annual Meeting of Shareholders of the Fund was held on February 7, 1997.
The meeting was held for the following purposes:
(1) To elect trustees as follows: Charles T. Bauer, Bruce L. Crockett, Owen
Daly II, Carl Frischling, Robert H. Graham, John F. Kroeger, Lewis F.
Pennock, Ian W. Robinson, and Louis S. Sklar.
(2) To approve a new Investment Advisory Agreement between the Fund and AIM.
(3) To approve the elimination of the fundamental investment policy prohibiting
or restricting investments in other investment companies and/or the
amendment of certain related fundamental investment policies.
(4) Ratification of KPMG Peat Marwick LLP as independent accountants for the
Fund's fiscal year ending August 31, 1997.
The following votes were cast with respect to each item:
<TABLE>
<CAPTION>
VOTES WITHHOLD/
TRUSTEE/MATTER VOTES FOR AGAINST ABSTENTIONS
-------------- ------------- ------- -----------
<C> <S> <C> <C> <C>
(1) Charles T. Bauer........................................................... 3,503,994,903 N/A N/A
Bruce L. Crockett.......................................................... 3,503,994,903 N/A N/A
Owen Daly II............................................................... 3,503,994,903 N/A N/A
Carl Frischling............................................................ 3,503,994,903 N/A N/A
Robert H. Graham........................................................... 3,503,994,903 N/A N/A
John F. Kroeger............................................................ 3,503,994,903 N/A N/A
Lewis F. Pennock........................................................... 3,503,994,903 N/A N/A
Ian W. Robinson............................................................ 3,503,994,903 N/A N/A
Louis S. Sklar............................................................. 3,503,994,903 N/A N/A
(2) Approval of new Investment Advisory Agreement (Portfolio only)............. 260,840,561 N/A N/A
(3) Elimination of policy restricting investments in other investment
companies (Portfolio only)............................................... 260,840,561 N/A N/A
(4) KPMG Peat Marwick LLP...................................................... 3,503,994,903 N/A N/A
</TABLE>
11
<PAGE>
<TABLE>
<S> <C>
TRUSTEES
Charles T. Bauer Robert H. Graham Short-Term
Bruce L. Crockett John F. Kroeger Investments Trust
Owen Daly II Lewis F. Pennock (STIT)
Jack Fields Ian W. Robinson
Carl Frischling Louis S. Sklar
OFFICERS
Charles T. Bauer Chairman
Robert H. Graham President Treasury
John J. Arthur Sr. Vice President & Treasurer TaxAdvantage
Gary T. Crum Sr. Vice President 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 AUGUST 31, 1997
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 100
Houston, TX 77046
(800) 347-1919
DISTRIBUTOR
Fund Management Company
11 Greenway Plaza, Suite 100
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 100
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>
