<PAGE>
[AIM LOGO APPEARS HERE] Dear Shareholder:
[PHOTO of For the most part, the six-month period covered
Charles T. Bauer, by this report on the Treasury Portfolio of
Chairman of the Short-Term Investments Trust was marked by
LETTER Board of the Fund relative stability in short-term financial
TO OUR [APPEARS HERE] markets. The markets expected that Federal
SHAREHOLDERS Reserve Board policy would be unchanged because
of prevailing evidence of an economy growing at a sustainable,
noninflationary rate.
Only during the last week of February 1997 did short-term
rates move significantly, rising as markets began to anticipate
higher short-term interest rates. That change in market
sentiment occurred primarily in response to statements by Fed
Chairman Alan Greenspan. In his semiannual testimony before
Congress, Greenspan spoke of the Open Market Committee's being
on "heightened" alert to the possibility of future inflation.
Greenspan's concern focused on the continued dramatic rise in
equity markets and on evidence that a strong job market could
ignite inflationary wage pressures.
YOUR INVESTMENT PORTFOLIO
The relatively stable market environment was not conducive to
strategic securities purchases. Portfolio management focused
largely on maintaining weighted average maturity at a desirable,
relatively short length while taking advantage of the high
yields and liquidity provided by a portfolio composed
exclusively of U.S. Treasury securities and repurchase
agreements secured by such obligations. Historically, the latter
have been among the highest-yielding instruments available to
the Portfolio. At the close of the reporting period, the
weighted average maturity of the portfolio was 26 days.
As shown in the table, performance of the Cash Management
Class of the Portfolio as of February 28, 1997, compared
favorably with performance reported for comparative indexes.
The Portfolio continues to hold the highest credit quality
ratings given by two widely known credit-rating agencies: AAAm
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 Cash Management Class stood at $798.1
million as of February 28, 1997, up from $789.6 million as of
August 31, 1996.
The Treasury 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 obligations.
Government securities,
<TABLE>
<S> <C> <C>
Yields as of 2/28/97
Average Seven-Day
Monthly Yield Yield
Treasury Portfolio
Cash Management Class 5.13% 5.14%
IBC Money Fund Averages(TM)-
U.S. Treasury &
Repurchase Agreements 4.62% 4.68%
IBM Money Fund Averages(TM)-
Government Only/Institutions
Only 4.94% 4.98%
</TABLE>
(continued)
<PAGE>
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 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.
OUTLOOK FOR THE FUTURE
As the reporting period drew to a close, there was uncertainty
concerning the movement of interest rates. As mentioned above,
Fed Chairman Greenspan had told Congress the central bank was
vigilant about "potentially inflationary expansion." On the
other hand, information and data prepared in advance of the Open
Market Committee's March meeting reported temperate price
pressures in both the retail and manufacturing sectors, and
described the economy as expanding at "a relatively moderate
pace."
While this made an imminent interest rate hike seem unlikely,
it left markets alert to the possibility of a Fed tightening in
the near term. Treasury Portfolio management will remain
cautionary and will continue to manage the portfolio to provide
the maximum flexibility possible to respond to changes in the
short-term interest rate environment.
The prudence of that cautionary stance became evident on March
25, 1997, after the close of the reporting period. The Federal
Reserve Board's Open Market Committee raised the target federal
funds rate 25 basis points, a step that, by then, had become
widely anticipated.
AIM/INVESCO MERGER
We are pleased to announce that the merger of A I M Management
Group Inc. and INVESCO plc was concluded on February 28, 1997.
AIM is now part of one of the world's largest independent
investment management groups with approximately $160 billion in
assets under management.
The merger creates a company with the financial strength
necessary to meet your needs in an increasingly competitive
financial services environment, both in the United States and
worldwide. Though now under one holding company, AIM and INVESCO
will continue to operate as separate entities. Therefore, this
merger will not change the portfolio management, investment
style, or name of any of the AIM funds you own. The merger's
completion begins a new and promising era for AIM, one we
believe will yield exciting opportunities.
We are pleased to send you this report concerning your
investment. AIM is committed to customer service and to the
primary goals 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
The annual shareholder meeting of
Short-Term Investments Trust and the
Treasury Portfolio was held on February 7,
1997. For details of the business transacted at
that meeting, please see Note 2 to the
Financial Statements in this report.
2
<PAGE>
SCHEDULE OF INVESTMENTS
February 28, 1997
(Unaudited)
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
U.S. TREASURY SECURITIES - 21.88%
U.S. TREASURY BILLS(a) - 10.47%
5.13% 03/27/97 $ 50,000 $ 49,814,750
- -----------------------------------------------------------------------------
5.055% 04/03/97 25,000 24,884,157
- -----------------------------------------------------------------------------
5.06% 04/03/97 25,000 24,884,042
- -----------------------------------------------------------------------------
5.115% 04/10/97 55,000 54,687,416
- -----------------------------------------------------------------------------
5.248% 05/01/97 25,000 24,777,711
- -----------------------------------------------------------------------------
5.28% 05/01/97 25,000 24,776,334
- -----------------------------------------------------------------------------
5.318% 05/29/97 40,000 39,474,157
- -----------------------------------------------------------------------------
5.505% 06/26/97 25,000 24,552,720
- -----------------------------------------------------------------------------
5.12% 07/03/97 50,000 49,118,222
- -----------------------------------------------------------------------------
5.06% 07/10/97 25,000 24,539,681
- -----------------------------------------------------------------------------
5.065% 07/10/97 25,000 24,539,226
- -----------------------------------------------------------------------------
5.39% 07/24/97 25,000 24,457,258
- -----------------------------------------------------------------------------
5.16% 08/28/97 50,000 48,724,333
- -----------------------------------------------------------------------------
5.28% 03/05/98 40,000 37,864,533
- -----------------------------------------------------------------------------
477,094,540
- -----------------------------------------------------------------------------
U.S. TREASURY NOTES - 10.34%
6.625% 03/31/97 25,000 25,018,816
- -----------------------------------------------------------------------------
6.875% 03/31/97 25,000 25,026,782
- -----------------------------------------------------------------------------
8.50% 04/15/97 55,000 55,207,171
- -----------------------------------------------------------------------------
8.50% 05/15/97 50,000 50,320,074
- -----------------------------------------------------------------------------
5.625% 06/30/97 100,000 100,088,743
- -----------------------------------------------------------------------------
8.50% 07/15/97 63,853 64,569,686
- -----------------------------------------------------------------------------
5.875% 07/31/97 50,000 50,096,387
- -----------------------------------------------------------------------------
5.75% 09/30/97 50,000 50,090,438
- -----------------------------------------------------------------------------
8.75% 10/15/97 50,000 51,021,713
- -----------------------------------------------------------------------------
471,439,810
- -----------------------------------------------------------------------------
U.S. TREASURY STRIPS(a) - 1.07%
3.841% 08/15/97 50,000 48,800,237
- -----------------------------------------------------------------------------
Total U.S. Treasury Securities 997,334,587
- -----------------------------------------------------------------------------
Total Investments (excluding Repurchase
Agreements) 997,334,587
- -----------------------------------------------------------------------------
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
REPURCHASE AGREEMENTS - 80.21%(b)
BA Securities, Inc. 5.35%(c) 03/03/97 $200,000 $ 200,000,000
- ------------------------------------------------------------------------------
BT Securities Corp. 5.35%(d) 03/03/97 200,000 200,000,000
- ------------------------------------------------------------------------------
Bear, Stearns & Co. Inc. 5.37%(e) -- 200,000 200,000,000
- ------------------------------------------------------------------------------
CIBC - Wood Gundy Securities Corp.
5.35%(f) 03/03/97 200,000 200,000,000
- ------------------------------------------------------------------------------
CS First Boston Corp. 5.36%(g) 03/03/97 200,000 200,000,000
- ------------------------------------------------------------------------------
Deutsche Morgan Grenfell/C.J. Lawrence,
Inc. 5.38%(h) -- 560,000 560,000,000
- ------------------------------------------------------------------------------
Goldman, Sachs & Co. 5.38%(i) 03/03/97 420,938 420,938,236
- ------------------------------------------------------------------------------
Goldman, Sachs & Co. 5.38%(j) 03/03/97 200,000 200,000,000
- ------------------------------------------------------------------------------
Greenwich Capital Markets, Inc.
5.375%(k) 03/03/97 200,000 200,000,000
- ------------------------------------------------------------------------------
HSBC Securities, Inc. 5.36%(l) 03/03/97 200,000 200,000,000
- ------------------------------------------------------------------------------
Nesbitt Burns Securities Inc. 5.38%(m) -- 200,000 200,000,000
- ------------------------------------------------------------------------------
Nomura Securities International, Inc.
5.39%(n) -- 175,000 175,000,000
- ------------------------------------------------------------------------------
SBC Capital Markets Inc. 5.35%(o) 03/03/97 500,000 500,000,000
- ------------------------------------------------------------------------------
UBS Securities LLC 5.37%(p) -- 200,000 200,000,000
- ------------------------------------------------------------------------------
3,655,938,236
- ------------------------------------------------------------------------------
TOTAL INVESTMENTS - 102.09% 4,653,272,823 (q)
- ------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES - (2.09)% (95,181,240)
- ------------------------------------------------------------------------------
NET ASSETS - 100.00% $4,558,091,583
==============================================================================
</TABLE>
NOTES TO SCHEDULE OF INVESTMENTS:
(a) U.S. Treasury bills and STRIPS 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 02/28/97 with a maturing value of $200,089,167. Collateralized
by $204,740,000 U.S. Treasury obligations, 5.00% to 6.125% due 03/31/98 to
02/15/00.
(d) Entered into 02/28/97 with a maturing value of $200,089,167. Collateralized
by $140,210,000 U.S. Treasury obligations, 11.25% due 02/15/15.
(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 08/15/15.
(f) Entered into 02/28/97 with a maturing value of $200,089,167. Collateralized
by $183,011,000 U.S. Treasury obligations, 0% to 11.25% due 04/17/97 to
02/15/27.
(g) Entered into 02/28/97 with a maturing value of $200,089,333. Collateralized
by $209,564,000 U.S. Treasury obligations, 0% due 05/01/97 to 10/16/97.
(h) 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 $546,689,000 U.S. Treasury
obligations, 5.00% to 11.875% due 11/30/97 to 11/15/26.
(i) Joint repurchase agreement entered into 02/28/97 with a maturing value of
$760,340,733. Collateralized by $744,287,000 U.S. Government obligations,
5.50% to 12.75% due 11/15/97 to 02/15/27.
(j) Entered into 02/28/97 with a maturing value of $200,089,667. Collateralized
by $204,984,000 U.S. Treasury obligations, 5.875% to 6.50% due 02/28/99 to
11/15/26.
(k) Entered into 02/28/97 with a maturing value of $200,089,583. Collateralized
by $199,914,000 U.S. Treasury obligations, 5.875% to 8.875% due 02/15/00 to
08/15/00.
(l) Entered into 02/28/97 with a maturing value of $200,089,333. Collateralized
by $161,867,000 U.S. Treasury obligations, 7.25% to 14.00% due 11/15/07 to
11/15/22.
4
<PAGE>
(m) Open repurchase agreement entered into 02/25/97; however, either party may
terminate the agreement upon demand. Interest rates, par and collateral are
redetermined daily. Collateralized by $685,709,000 U.S. Treasury
obligations, 0% to 11.25% due 05/15/97 to 08/15/25.
(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 $175,552,000 U.S. Treasury
obligations, 5.00% to 8.125% due 03/31/97 to 08/15/19.
(o) Entered into 02/28/97 with a maturing value of $500,222,917. Collateralized
by $417,569,000 U.S. Treasury obligations, 5.625% to 8.875% due 11/30/98 to
02/15/19.
(p) Open repurchase agreement entered into 01/13/97; however, either party may
terminate the agreement upon demand. Interest rates, par and collateral are
redetermined daily. Collateralized by $199,881,000 U.S. Treasury
obligations, 6.00% to 9.125% due 05/15/99 to 08/31/99.
(q) Also represents cost for federal income tax purposes.
See Notes to Financial Statements.
5
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
February 28, 1997
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, excluding repurchase agreements, at value
(amortized cost) $ 997,334,587
- ------------------------------------------------------------------------
Repurchase agreements 3,655,938,236
- ------------------------------------------------------------------------
Interest receivable 9,899,440
- ------------------------------------------------------------------------
Investment for deferred compensation plan 54,722
- ------------------------------------------------------------------------
Other assets 184,380
- ------------------------------------------------------------------------
Total assets 4,663,411,365
- ------------------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 86,588,867
- ------------------------------------------------------------------------
Dividends 17,837,326
- ------------------------------------------------------------------------
Deferred compensation 54,722
- ------------------------------------------------------------------------
Accrued advisory fees 206,389
- ------------------------------------------------------------------------
Accrued distribution fees 278,255
- ------------------------------------------------------------------------
Accrued transfer agent fees 67,344
- ------------------------------------------------------------------------
Accrued trustees' fees 8,322
- ------------------------------------------------------------------------
Accrued administrative services fees 7,572
- ------------------------------------------------------------------------
Accrued operating expenses 270,985
- ------------------------------------------------------------------------
Total liabilities 105,319,782
- ------------------------------------------------------------------------
NET ASSETS $4,558,091,583
========================================================================
NET ASSETS:
Institutional Class $2,825,555,073
========================================================================
Private Investment Class $ 353,930,090
========================================================================
Personal Investment Class $ 283,385,803
========================================================================
Cash Management Class $ 798,063,418
========================================================================
Resource Class $ 297,157,199
========================================================================
SHARES OF BENEFICIAL INTEREST, $.01 PAR VALUE PER SHARE:
Institutional Class 2,825,113,059
========================================================================
Private Investment Class 353,874,722
========================================================================
Personal Investment Class 283,341,471
========================================================================
Cash Management Class 797,938,572
========================================================================
Resource Class 297,110,714
========================================================================
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 six months ended February 28, 1997
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest income $ 111,213,973
- ---------------------------------------------------------------------
EXPENSES:
Advisory fees 1,246,824
- ---------------------------------------------------------------------
Custodian fees 173,922
- ---------------------------------------------------------------------
Administrative services fees 44,822
- ---------------------------------------------------------------------
Trustees' fees and expenses 12,614
- ---------------------------------------------------------------------
Transfer agent fees 222,603
- ---------------------------------------------------------------------
Distribution fees (Note 2) 2,275,193
- ---------------------------------------------------------------------
Other 185,068
- ---------------------------------------------------------------------
Total expenses 4,161,046
- ---------------------------------------------------------------------
Less fee waivers and expense reimbursements (770,684)
- ---------------------------------------------------------------------
Net expenses 3,390,362
- ---------------------------------------------------------------------
Net investment income 107,823,611
- ---------------------------------------------------------------------
Net realized gain on sales of investments 64,724
- ---------------------------------------------------------------------
Net increase in net assets resulting from operations $ 107,888,335
=====================================================================
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended February 28, 1997 and the year ended August 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
FEBRUARY 28, AUGUST 31,
1997 1996
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 107,823,611 $ 193,348,214
- -----------------------------------------------------------------------------
Net realized gain on sales of investments 64,724 490,127
- -----------------------------------------------------------------------------
Net increase in net assets resulting from
operations 107,888,335 193,838,341
- -----------------------------------------------------------------------------
Distributions to shareholders from net
investment income (107,823,611) (193,348,214)
- -----------------------------------------------------------------------------
Share transactions-net 854,135,719 443,432,341
- -----------------------------------------------------------------------------
Net increase in net assets 854,200,443 443,922,468
- -----------------------------------------------------------------------------
NET ASSETS:
Beginning of period 3,703,891,140 3,259,968,672
- -----------------------------------------------------------------------------
End of period $4,558,091,583 $3,703,891,140
=============================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $4,557,378,538 $3,703,242,819
- -----------------------------------------------------------------------------
Undistributed net realized gain on sales of
investments 713,045 648,321
- -----------------------------------------------------------------------------
$4,558,091,583 $3,703,891,140
=============================================================================
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS
February 28, 1997
(Unaudited)
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 - 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 $300 million 0.15%
- ----------------------------------------
Over $300 million to $1.5 billion 0.06%
- ----------------------------------------
Over $1.5 billion 0.05%
- ----------------------------------------
</TABLE>
AIM voluntarily reimbursed expenses of $24,200 during the six months ended
February 28, 1997.
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 six months ended February 28,
1997, the Portfolio reimbursed AIM $44,822 for such services.
The Portfolio, pursuant to a transfer agency 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 six months
ended February 28, 1997, the Portfolio paid AIFS $222,603 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. 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 each class. During the six months
ended February 28, 1997, the Private Investment Class, the Personal Investment
Class, the Cash Management Class and the Resource Class accrued for
compensation to FMC amounts of $555,275, $531,770, $323,917, and $117,747,
respectively, under the Plan. FMC waived fees of $746,484 for the same period.
Certain officers and trustees of the Trust are officers of AIM, FMC and AIFS.
During the six months ended February 28, 1997, the Portfolio paid legal fees
of $8,936 for services provided by Kramer, Levin, Naftalis & Frankel. A member
of that firm is a trustee of the Fund.
Shareholders' Meeting
An annual meeting of shareholders of the Fund was held on February 7, 1997 (the
"Meeting"). The following four items were approved by the 3,503,994,903 shares
of the Fund represented at the Meeting, with the following vote totals cast
with respect to each item:
(1) ELECTION OF TRUSTEES. At the Meeting, Messrs. 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 were reelected to the
Board of Trustees of the Fund. 3,503,994,903 shares of the Fund voted for
each of the trustees, respectively, and no shares of the Fund withheld
authority, respectively.
(2) RATIFICATION OF INDEPENDENT ACCOUNTANTS. 3,503,994,903 shares of the Fund
voted for the ratification of the appointment of KPMG Peat Marwick LLP as
independent accountants for the Fund for the Fund's fiscal year ending
August 31, 1997. No shares of the Fund voted against ratification of the
accountants and no shares of the Fund abstained.
(3) APPROVAL OF THE NEW MASTER INVESTMENT ADVISORY AGREEMENT. At the Meeting,
shareholders of the Portfolio were asked to approve a new Master Investment
Advisory Agreement (the "Agreement") between the Fund and A I M Advisors,
Inc. 3,241,894,841 shares of the Portfolio voted to approve the Agreement.
1,250,000 shares of the Portfolio voted against the approval of the
Agreement and 9,500 shares of the Portfolio abstained.
(4) ELIMINATION OF THE FUNDAMENTAL INVESTMENT POLICY PROHIBITING OR RESTRICTING
INVESTMENTS IN OTHER INVESTMENT COMPANIES. 3,219,075,791 shares of the
Portfolio voted for the elimination of the fundamental investment policy,
1,250,000 shares of the Portfolio voted against the elimination of the
fundamental investment policy and 71,329 shares of the Portfolio abstained
from voting.
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 six months ended February 28, 1997 and
the year ended August 31, 1996 were as follows:
<TABLE>
<CAPTION>
FEBRUARY 28, 1997 AUGUST 31, 1996
------------------------------- ---------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------- --------------- --------------- ----------------
<S> <C> <C> <C> <C>
Sold:
Institutional Class 7,246,949,288 $ 7,246,949,288 15,527,980,642 $ 15,527,980,642
- ------------------------------------------------------------------------------------------
Private Investment
Class 1,242,984,220 1,242,984,220 2,472,141,697 2,472,141,697
- ------------------------------------------------------------------------------------------
Personal Investment
Class 1,108,080,986 1,108,080,986 1,088,591,830 1,088,591,830
- ------------------------------------------------------------------------------------------
Cash Management Class 2,199,002,831 2,199,002,831 4,232,083,227 4,232,083,227
- ------------------------------------------------------------------------------------------
Resource Class* 951,781,008 951,781,008 157,958,663 157,958,663
- ------------------------------------------------------------------------------------------
Issued as reinvestment
of dividends:
Institutional Class 4,903,442 4,903,442 9,763,491 9,763,491
- ------------------------------------------------------------------------------------------
Private Investment
Class 1,723,736 1,723,736 3,211,766 3,211,766
- ------------------------------------------------------------------------------------------
Personal Investment
Class 4,088,181 4,088,181 4,455,140 4,455,140
- ------------------------------------------------------------------------------------------
Cash Management Class 6,496,428 6,496,428 8,200,664 8,200,664
- ------------------------------------------------------------------------------------------
Resource Class* 2,670,137 2,670,137 789,507 789,507
- ------------------------------------------------------------------------------------------
Reacquired:
Institutional Class (6,761,771,845) (6,761,771,845) (15,872,219,385) (15,872,219,385)
- ------------------------------------------------------------------------------------------
Private Investment
Class (1,243,308,952) (1,243,308,952) (2,517,444,015) (2,517,444,015)
- ------------------------------------------------------------------------------------------
Personal Investment
Class (1,021,740,449) (1,021,740,449) (1,014,656,105) (1,014,656,105)
- ------------------------------------------------------------------------------------------
Cash Management Class (2,197,049,463) (2,197,049,463) (3,532,010,008) (3,532,010,008)
- ------------------------------------------------------------------------------------------
Resource Class* (690,673,829) (690,673,829) (125,414,773) (125,414,773)
- ------------------------------------------------------------------------------------------
Net increase 854,135,719 $ 854,135,719 443,432,341 $ 443,432,341
==========================================================================================
</TABLE>
* The Resource Class commenced operations on March 12, 1996.
10
<PAGE>
NOTE 5-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share outstanding of the Cash
Management Class during the six months ended February 28, 1997, each of the
years in the three year period ended August 31, 1996 and the period August 17,
1993 (date operations commenced) through August 31, 1993.
<TABLE>
<CAPTION>
AUGUST 31,
FEBRUARY 28, ----------------------------------
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 0.03 0.05 0.05 0.03 0.001
- ----------------------- -------- -------- ------- ------- ------
Less distributions:
Dividends from net
investment income (0.03) (0.05) (0.05) (0.03) (0.001)
- ----------------------- -------- -------- ------- ------- ------
Net asset value, end of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======================= ======== ======== ======= ======= ======
Total return 5.24%(a) 5.48% 5.57% 3.44% 2.91%(a)
======================= ======== ======== ======= ======= ======
Ratios/supplemental
data:
Net assets, end of
period (000s omitted) $798,063 $789,627 $81,219 $73,619 $8,681
======================= ======== ======== ======= ======= ======
Ratio of expenses to
average net assets(b) 0.17%(c) 0.17% 0.18% 0.16% 0.16%
======================= ======== ======== ======= ======= ======
Ratio of net investment
income to average net
assets(d) 5.19%(c) 5.25% 5.42% 3.48% 3.00%
======================= ======== ======== ======= ======= ======
</TABLE>
(a) Annualized.
(b) Ratios of expenses to average net assets prior to waiver of distribution
fees and/or expense reimbursements were 0.19%, 0.19%, 0.20%, 0.21% and
0.18% for the periods 1997-1993, respectively. Ratios are annualized for
periods less than one year.
(c) Ratios are annualized and based on average net assets of $816,503,938.
(d) Ratios of net investment income to average net assets prior to waiver of
distribution fees and/or expense reimbursements were 5.17%, 5.23%, 5.40%,
3.43% and 2.98% for the periods 1997-1993, respectively. Ratios are
annualized for periods less than one year.
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 Cash SEMI-
Melville B. Cox Vice President Management ANNUAL
Karen Dunn Kelley Vice President Class REPORT
J. Abbott Sprague Vice President
P. Michelle Grace Assistant Secretary
David L. Kite Assistant Secretary FEBRUARY 28, 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
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>
