<PAGE>
[AIM LOGO APPEARS HERE] Dear Shareholder:
[PHOTO of During the six months covered by this report, the
Charles T. Bauer, U.S. economy continued to exhibit solid growth
Chairman of the with little or no inflation. Gross domestic
LETTER Board of the Fund product grew at a 3.1% annual rate in the third
TO OUR APPEARS HERE] quarter of 1997 and a 3.7% annual rate in the
SHAREHOLDERS final quarter of the year. Sturdy growth is
expected in the first half of 1998 as well. Inflation was well
controlled, remaining in the 1% to 2% range. As a result, the
Federal Reserve Board (the Fed) kept its key short-term target,
the federal funds rate, at 5.50% throughout the reporting period.
During the last half of 1997, markets focused on the collapse
in several Asian countries' currencies and the potential effects
on the U.S. economy. As Asian economic turmoil continued, fixed-
income markets rallied in anticipation that the Fed would lower
rates to counteract the dampening effects from the Far East
situation. At the close of the reporting period, the markets were
still waiting for the much-anticipated slowdown, and interest
rates had moved up some as the chance of the Fed's lowering rates
was pushed further into the future.
YOUR INVESTMENT PORTFOLIO
As yields in the Treasury sector generally remained at or below
the federal funds target rate, the managers of Short-Term
Investments Trust Treasury Portfolio maintained a relatively
short weighted average maturity (WAM) in the 20- to 30-day range.
Employing a barbell structure, the Portfolio was able to take
advantage of the higher-yielding overnight market while looking
for strategic opportunities in longer maturities. The short WAM
was appropriate given the lack of fundamental value farther out
the yield curve and the anticipation that a Fed cut in interest
rates was not imminent. At the close of the reporting period, WAM
was 27 days.
Using this strategy, the Cash Management Class of the
Portfolio outperformed its comparative indexes as of February 28,
1998, as shown in the table.
The Portfolio also 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. 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 Resource Class stood at $962.62 million as
of February 28, 1998, up from $829.24 million as of August 31,
1997.
<TABLE>
<CAPTION>
YIELDS AS OF 2/28/98
Average Seven-Day
Monthly Yield Yield
<S> <C> <C>
Treasury Portfolio
Cash Management Class 5.42% 5.47%
IBC Money Fund Averages(TM)-
U.S. Treasury &
Repurchase Agreements 4.85% 4.94%
IBC Money Fund Averages(TM)-
Government Only/Institutions Only 5.15% 5.21%
</TABLE>
(continued)
<PAGE>
The Treasury Portfolio seeks to maximize current income to
the extent consistent with preservation of capital and
maintenance of liquidity. It invests exclusively in direct
obligations of the U.S. Treasury and repurchase agreements
secured by such obligations. 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. 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 closed, the general expectation was that
the economy would continue to grow at a solid pace around 3% and
then slow somewhat in the second half of 1998 as the effects of
Asia's difficulties take hold. Inflation was expected to remain
tame and the Fed was expected to hold rates steady for the
foreseeable future. In his late-February testimony to Congress,
Fed Chairman Alan Greenspan noted that the deflationary effects
of turmoil in Asia could offset the inflationary pressures from
strong domestic spending and a tight U.S. labor market.
The Portfolio will continue to maintain a relatively short
maturity structure, remaining flexible to take advantage of any
sudden rise in market yields. AIM remains committed to the
primary goals of safety, liquidity and yield in institutional
fund management.
We are pleased to send you this report concerning your
investment. 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>
SCHEDULE OF INVESTMENTS
February 28, 1998
(Unaudited)
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
U.S. TREASURY SECURITIES - 20.57%
U.S. TREASURY BILLS(a) - 12.37%
5.28% 03/05/98 $ 40,000 $ 39,976,534
- -----------------------------------------------------------------------------
5.665% 04/02/98 25,000 24,874,112
- -----------------------------------------------------------------------------
5.365% 04/16/98 200,000 198,688,556
- -----------------------------------------------------------------------------
4.975% 04/30/98 25,000 24,792,708
- -----------------------------------------------------------------------------
5.53% 04/30/98 50,000 49,539,168
- -----------------------------------------------------------------------------
5.52% 05/28/98 50,000 49,325,334
- -----------------------------------------------------------------------------
5.113% 06/25/98 25,000 24,588,160
- -----------------------------------------------------------------------------
5.235% 06/25/98 25,000 24,578,292
- -----------------------------------------------------------------------------
5.245% 07/23/98 25,000 24,475,500
- -----------------------------------------------------------------------------
5.195% 10/15/98 50,000 48,354,917
- -----------------------------------------------------------------------------
5.245% 12/10/98 50,000 47,931,139
- -----------------------------------------------------------------------------
5.125% 02/04/99 50,000 47,579,861
- -----------------------------------------------------------------------------
604,704,281
- -----------------------------------------------------------------------------
U.S. TREASURY NOTES - 8.20%
5.125% 03/31/98 50,000 49,965,552
- -----------------------------------------------------------------------------
6.00% 05/31/98 50,000 50,045,739
- -----------------------------------------------------------------------------
5.125% 06/30/98 50,000 49,918,553
- -----------------------------------------------------------------------------
6.25% 06/30/98 25,000 25,053,437
- -----------------------------------------------------------------------------
8.25% 07/15/98 25,000 25,235,696
- -----------------------------------------------------------------------------
6.25% 07/31/98 25,000 25,064,163
- -----------------------------------------------------------------------------
6.125% 08/31/98 50,000 50,091,621
- -----------------------------------------------------------------------------
4.75% 09/30/98 25,000 24,880,455
- -----------------------------------------------------------------------------
6.00% 09/30/98 50,000 50,099,307
- -----------------------------------------------------------------------------
5.75% 12/31/98 50,000 50,141,413
- -----------------------------------------------------------------------------
400,495,936
- -----------------------------------------------------------------------------
Total U.S. Treasury Securities 1,005,200,217
- -----------------------------------------------------------------------------
Total Investments (excluding Repurchase
Agreements) 1,005,200,217
- -----------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 83.76%(b)
B.T. Securities Corp.
5.65%(c) -- 200,000 200,000,000
- -----------------------------------------------------------------------------
BZW Securities Inc.
5.65%(d) 03/02/98 200,000 200,000,000
- -----------------------------------------------------------------------------
Bear, Stearns & Co. Inc.
5.65%(e) -- 200,000 200,000,000
- -----------------------------------------------------------------------------
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
REPURCHASE AGREEMENTS -
(continued)
CIBC Oppenheimer Corp.
5.63%(f) 03/02/98 $200,000 $ 200,000,000
- ---------------------------------------------------------------
Credit Suisse First
Boston Corp.
5.65%(g) 03/02/98 200,000 200,000,000
- ---------------------------------------------------------------
Deutsche Morgan Grenfell
Inc.
5.65%(h) -- 600,000 600,000,000
- ---------------------------------------------------------------
Goldman, Sachs & Co.
5.65%(i) 03/02/98 293,603 293,603,057
- ---------------------------------------------------------------
Greenwich Capital
Markets, Inc.
5.65%(j) 03/02/98 200,000 200,000,000
- ---------------------------------------------------------------
HSBC Securities, Inc.
5.63%(k) 03/02/98 200,000 200,000,000
- ---------------------------------------------------------------
Merrill Lynch Government
Securities, Inc.
5.65%(l) 03/02/98 200,000 200,000,000
- ---------------------------------------------------------------
Morgan (J.P.) Securities
Inc.
5.63%(m) 03/02/98 500,000 500,000,000
- ---------------------------------------------------------------
Morgan Stanley & Co.
Inc.
5.64%(n) 03/02/98 200,000 200,000,000
- ---------------------------------------------------------------
Nesbitt Burns Securities
Inc.
5.65%(o) -- 200,000 200,000,000
- ---------------------------------------------------------------
SBC Warburg Dillon Read,
Inc.
5.64%(p) 03/02/98 500,000 500,000,000
- ---------------------------------------------------------------
UBS Securities LLC
5.63%(q) -- 200,000 200,000,000
- ---------------------------------------------------------------
Total Repurchase
Agreements 4,093,603,057
- ---------------------------------------------------------------
TOTAL INVESTMENTS -
104.33% 5,098,803,274 (r)
- ---------------------------------------------------------------
OTHER ASSETS LESS
LIABILITIES - (4.33)% (211,581,929)
- ---------------------------------------------------------------
NET ASSETS - 100.00% $4,887,221,345
===============================================================
</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) Open repurchase agreement. Either party may terminate the agreement upon
demand. Interest rates, par and collateral are redetermined daily.
Collateralized by $224,248,000 U.S. Government obligations, 0% due 08/31/99
to 02/29/00 with an aggregate market value at 02/28/98 of $203,835,239.
(d) Entered into 02/27/98 with a maturing value of $200,094,167. Collateralized
by $198,525,000 U.S. Government obligations, 3.625% to 7.25% due 08/31/99
to 05/15/16 with an aggregate market value at 02/28/98 of $204,001,379.
(e) Open joint repurchase agreement. Either party may terminate the agreement
upon demand. Interest rates, par and collateral are redetermined daily.
Collateralized by $991,047,000 U.S. Government obligations, 0% to 11.25%
due 8/15/99 to 02/15/27 with an aggregate market value at 02/28/98 of
$306,026,754.
4
<PAGE>
(f) Entered into 02/27/98 with a maturing value of $200,093,833. Collateralized
by $193,848,000 U.S. Government obligations, 0% to 11.25% due 03/26/98 to
11/15/27 with an aggregate market value at 02/28/98 of $204,000,208.
(g) Entered into 02/27/98 with a maturing value of $200,094,167. Collateralized
by $452,808,000 U.S. Government obligations, 0% due 05/15/99 to 08/15/17
with an aggregate market value at 02/28/98 of $205,024,325.
(h) Open repurchase agreement. Either party may terminate the agreement upon
demand. Interest rates, par and collateral are redetermined daily.
Collateralized by $559,870,000 U.S. Government obligations, 5.625% to
14.00% due 11/30/98 to 8/15/21 with an aggregate market value at 02/28/98
of $612,001,096.
(i) Joint repurchase agreement entered into 02/27/98 with a maturing value of
$500,235,417. Collateralized by $435,439,000 U.S. Government obligations,
0% to 8.75% due 06/11/98 to 02/15/21 with an aggregate market value at
02/28/98 of $510,499,348.
(j) Entered into 02/27/98 with a maturing value of $200,094,167. Collateralized
by $180,881,000 U.S. Government obligations, 5.50% to 8.75% due 02/15/08 to
11/15/27 with an aggregate market value at 02/28/98 of $204,001,535.
(k) Entered into 02/27/98 with a maturing value of $200,093,833. Collateralized
by $185,859,000 U.S. Government obligations, 5.25% to 14.00% due 05/31/98
to 11/15/27 with an aggregate market value at 02/28/98 of $204,000,680.
(l) Entered into 02/27/98 with a maturing value of $200,094,167. Collateralized
by $176,025,000 U.S. Government obligations, 5.50% to 13.25% due 11/15/98
to 08/15/27 with an aggregate market value at 02/28/98 of $204,004,074.
(m) Entered into 02/27/98 with a maturing value of $500,234,583. Collateralized
by $505,386,000 U.S. Government obligations, 0% to 8.875% due 05/21/98 to
02/15/26 with an aggregate market value at 02/28/98 of $510,000,084.
(n) Entered into 02/27/98 with a maturing value of $200,094,000. Collateralized
by $199,372,000 U.S. Government obligations, 5.75% to 6.25% due 03/31/00 to
11/15/00 with an aggregate market value at 02/28/98 of $204,126,659.
(o) Open joint repurchase agreement. Either party may terminate the agreement
upon demand. Interest rates, par and collateral are redetermined daily.
Collateralized by $503,831,000 U. S. Government obligations, 0% to 7.00%
due 05/15/98 to 08/15/27 with an aggregate market value at 02/28/98 of
$214,200,526.
(p) Entered into 02/27/98 with a maturing value of $500,235,000. Collateralized
by 1,607,417,000 U.S. Government obligations, 0% to 4.75% due 10/31/98 to
11/15/21 with an aggregate market value at 02/28/98 of $510,395,541.
(q) Open repurchase agreement. Either party may terminate the agreement upon
demand. Interest rates, par and collateral are redetermined daily.
Collateralized by $198,088,000 U.S. Government obligations, 6.125% to 6.25%
due 06/30/98 to 08/15/07 with an aggregate market value at 02/28/98 of
$204,001,402.
(r) Also represents cost for federal income tax purposes.
See Notes to Financial Statements.
5
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
February 28, 1998
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, excluding repurchase agreements, at value
(amortized cost) $1,005,200,217
- ------------------------------------------------------------------------
Repurchase agreements 4,093,603,057
- ------------------------------------------------------------------------
Interest receivable 8,053,246
- ------------------------------------------------------------------------
Investment for deferred compensation plan 75,166
- ------------------------------------------------------------------------
Other assets 129,652
- ------------------------------------------------------------------------
Total assets 5,107,061,338
- ------------------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 198,688,556
- ------------------------------------------------------------------------
Dividends 20,173,630
- ------------------------------------------------------------------------
Deferred compensation 75,166
- ------------------------------------------------------------------------
Accrued administrative services fees 8,765
- ------------------------------------------------------------------------
Accrued advisory fees 220,017
- ------------------------------------------------------------------------
Accrued distribution fees 392,425
- ------------------------------------------------------------------------
Accrued transfer agent fees 107,996
- ------------------------------------------------------------------------
Accrued trustees' fees 4,967
- ------------------------------------------------------------------------
Accrued operating expenses 168,471
- ------------------------------------------------------------------------
Total liabilities 219,839,993
- ------------------------------------------------------------------------
NET ASSETS $4,887,221,345
========================================================================
NET ASSETS:
Institutional Class $2,814,559,592
========================================================================
Private Investment Class $ 453,778,806
========================================================================
Personal Investment Class $ 365,878,506
========================================================================
Cash Management Class $ 962,620,990
========================================================================
Resource Class $ 290,383,451
========================================================================
SHARES OF BENEFICIAL INTEREST, $.01 PAR VALUE PER SHARE:
Institutional Class 2,814,154,009
========================================================================
Private Investment Class 453,713,418
========================================================================
Personal Investment Class 365,825,783
========================================================================
Cash Management Class 962,482,277
========================================================================
Resource Class 290,341,607
========================================================================
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, 1998
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest income $141,476,914
- -------------------------------------------------------------------
EXPENSES:
Advisory fees 1,471,154
- -------------------------------------------------------------------
Custodian fees 144,255
- -------------------------------------------------------------------
Administrative services fees 47,051
- -------------------------------------------------------------------
Trustees' fees and expenses 17,528
- -------------------------------------------------------------------
Transfer agent fees 319,074
- -------------------------------------------------------------------
Distribution fees (Note 2) 3,135,542
- -------------------------------------------------------------------
Other 127,960
- -------------------------------------------------------------------
Total expenses 5,262,564
- -------------------------------------------------------------------
Less: Fee waivers (1,024,929)
- -------------------------------------------------------------------
Net expenses 4,237,635
- -------------------------------------------------------------------
Net investment income 137,239,279
- -------------------------------------------------------------------
Net realized gain (loss) on sales of investments (100,473)
- -------------------------------------------------------------------
Net increase in net assets resulting from operations $137,138,806
===================================================================
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended February 28, 1998 and year ended August 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
FEBRUARY 28, AUGUST 31,
1998 1997
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 137,239,279 $ 236,779,733
- -----------------------------------------------------------------------------
Net realized gain (loss) on sales of
investments (100,473) 215,978
- -----------------------------------------------------------------------------
Net increase in net assets resulting from
operations 137,138,806 236,995,711
- -----------------------------------------------------------------------------
Distributions to shareholders from net
investment income:
Institutional Class (86,263,553) (153,610,717)
- -----------------------------------------------------------------------------
Private Investment Class (11,667,022) (20,120,440)
- -----------------------------------------------------------------------------
Personal Investment Class (8,736,296) (11,733,992)
- -----------------------------------------------------------------------------
Cash Management Class (22,713,364) (41,058,376)
- -----------------------------------------------------------------------------
Resource Class (7,859,044) (10,256,208)
- -----------------------------------------------------------------------------
Distributions to shareholders from net
realized gains -- (59,575)
- -----------------------------------------------------------------------------
Share transactions-net (373,466,687) 1,556,740,962
- -----------------------------------------------------------------------------
Net increase (decrease) in net assets (373,567,160) 1,556,897,365
- -----------------------------------------------------------------------------
NET ASSETS:
Beginning of period 5,260,788,505 3,703,891,140
- -----------------------------------------------------------------------------
End of period $4,887,221,345 $5,260,788,505
=============================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $4,886,517,094 $5,259,983,781
- -----------------------------------------------------------------------------
Undistributed net realized gain on sales of
investments 704,251 804,724
- -----------------------------------------------------------------------------
$4,887,221,345 $5,260,788,505
=============================================================================
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS
February 28, 1998
(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 the 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 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 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. The
following is a summary of significant accounting policies followed by the
Portfolio in the preparation of its financial statements.
A. Security Valuations - The Portfolio's 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 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 investment 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>
9
<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,
1998, the Fund reimbursed AIM $47,051 for such services.
The Portfolio, pursuant to a transfer agency and service agreement, has agreed
to pay A I M Fund Services, Inc. ("AFS") a fee for providing transfer agent and
shareholder services to the Portfolio. On September 20, 1997, the Board of
Trustees approved the appointment of AFS as transfer agent of the Fund
effective December 29, 1997. During the six months ended February 28, 1998, the
Portfolio paid AFS $106,358 for such services. Prior to the effective date of
the agreement with AFS, the Portfolio paid A I M Institutional Fund Services,
Inc. $212,716 pursuant to a transfer agency and shareholder services agreement
for the period September 1, 1997 through December 28, 1997.
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, 1998, the Private Investment Class, the Personal Investment
Class, the Cash Management Class and the Resource Class paid $671,016,
$870,744, $334,243 and $234,610, respectively, as compensation under the Plan.
FMC waived fees of $1,024,929 for the same period. Certain officers and
trustees of the Trust are officers of AIM, FMC and AFS.
During the six months ended February 28, 1998, the Portfolio paid legal fees
of $6,962 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.
10
<PAGE>
NOTE 4-SHARE INFORMATION
Changes in shares outstanding during the six months ended February 28, 1998 and
the year ended August 31, 1997 were as follows:
<TABLE>
<CAPTION>
FEBRUARY 28, 1998 AUGUST 31, 1997
-------------------------------- ---------------------------------
SHARES AMOUNT SHARES AMOUNT
--------------- --------------- --------------- ----------------
<S> <C> <C> <C> <C>
Sold:
Institutional Class 9,642,700,081 $ 9,642,700,081 15,820,439,672 $ 15,820,439,672
- --------------------------------------------------------------------------------------------
Private Investment
Class 1,024,865,714 1,024,865,714 2,377,066,232 2,377,066,232
- --------------------------------------------------------------------------------------------
Personal Investment
Class 1,875,206,328 1,875,206,328 2,585,293,225 2,585,293,225
- --------------------------------------------------------------------------------------------
Cash Management Class 2,163,933,915 2,163,933,915 4,354,698,981 4,354,698,981
- --------------------------------------------------------------------------------------------
Resource Class 1,343,164,931 1,343,164,931 2,558,140,941 2,558,140,941
- --------------------------------------------------------------------------------------------
Issued as reinvestment
of dividends:
Institutional Class 15,752,070 15,752,070 15,531,436 15,531,436
- --------------------------------------------------------------------------------------------
Private Investment
Class 2,632,653 2,632,653 3,858,592 3,858,592
- --------------------------------------------------------------------------------------------
Personal Investment
Class 7,833,201 7,833,201 9,897,559 9,897,559
- --------------------------------------------------------------------------------------------
Cash Management Class 7,597,863 7,597,863 12,944,226 12,944,226
- --------------------------------------------------------------------------------------------
Resource Class 7,554,945 7,554,945 9,274,277 9,274,277
- --------------------------------------------------------------------------------------------
Reacquired:
Institutional Class (10,251,791,240) (10,251,791,240) (14,763,510,184) (14,763,510,184)
- --------------------------------------------------------------------------------------------
Private Investment
Class (1,037,154,025) (1,037,154,025) (2,270,031,466) (2,270,031,466)
- --------------------------------------------------------------------------------------------
Personal Investment
Class (1,840,136,196) (1,840,136,196) (2,465,181,087) (2,465,181,087)
- --------------------------------------------------------------------------------------------
Cash Management Class (2,038,161,248) (2,038,161,248) (4,328,020,236) (4,328,020,236)
- --------------------------------------------------------------------------------------------
Resource Class (1,297,465,679) (1,297,465,679) (2,363,661,206) (2,363,661,206)
- --------------------------------------------------------------------------------------------
Net increase (decrease) (373,466,687) $ (373,466,687) 1,556,740,962 $ 1,556,740,962
============================================================================================
</TABLE>
NOTE 5-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share of the Cash Management
Class outstanding during the six months ended February 28, 1998, each of the
years in the four-year period ended August 31, 1997 and the period August 17,
1993 (date sales commenced) through August 31, 1993.
<TABLE>
<CAPTION>
AUGUST 31,
FEBRUARY 28, --------------------------------------------
1998 1997 1996 1995 1994 1993
------------ -------- -------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ----------------------- -------- -------- -------- ------- ------- ------
Income from investment
operations:
Net investment income 0.02 0.05 0.05 0.05 0.03 0.001
- ----------------------- -------- -------- -------- ------- ------- ------
Less distributions:
Dividends from net
investment income (0.02) (0.05) (0.05) (0.05) (0.03) (0.001)
- ----------------------- -------- -------- -------- ------- ------- ------
Net asset value, end of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======================= ======== ======== ======== ======= ======= ======
Total return 5.50%(a) 5.39% 5.48% 5.57% 3.44% 2.91%(a)
======================= ======== ======== ======== ======= ======= ======
Ratios/supplemental
data:
Net assets, end of
period (000s omitted) $962,621 $829,243 $789,627 $81,219 $73,619 $8,681
======================= ======== ======== ======== ======= ======= ======
Ratio of expenses to
average net assets(b) 0.17%(c) 0.17% 0.17% 0.18% 0.16% 0.16%(a)
======================= ======== ======== ======== ======= ======= ======
Ratio of net investment
income to average net
assets(d) 5.44%(c) 5.25% 5.25% 5.42% 3.48% 3.00%(a)
======================= ======== ======== ======== ======= ======= ======
</TABLE>
(a) Annualized.
(b) After fee waivers and/or expense reimbursements. Ratios of expenses to
average net assets prior to fee waivers and/or expense reimbursements were
0.19% (annualized), 0.19%, 0.19%, 0.20%, 0.21% and 0.18% (annualized) for
the periods 1998-1993, respectively.
(c) Ratios are annualized and based on average net assets of $842,532,021.
(d) 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 5.42% (annualized), 5.24%, 5.23%, 5.40%, 3.43% and
2.98% (annualized) for the periods 1998-1993, respectively.
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 M. Fields Ian W. Robinson
Carl Frischling Louis S. Sklar
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
Nancy L. Martin Assistant Secretary FEBRUARY 28, 1998
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, LLP
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 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>