<PAGE>
[AIM LOGO APPEARS HERE] Dear Shareholder:
[PHOTO of As the fiscal year covered by this report
Charles T. Bauer opened, financial markets were still in
Chairman of the the grip of the near-meltdown occasioned
LETTER Board of The Fund by 1998's Asian crises. The situation
TO OUR APPEARS HERE] led the Federal Reserve Board (the Fed)
SHAREHOLDERS to reduce the short-term federal funds
target rate three times late in 1998. These Fed moves were not
motivated by a slowdown in the U.S. economy; rather, they
represented a strenuous effort to reestablish liquidity in markets
worldwide. The U.S. economy continued to move ahead at a brisk
pace, exhibiting the unusual combination of strong growth coupled
with low inflation.
However, this scenario changed slightly as some monthly economic
indicators showed inflationary tendencies in certain commodity
prices. This and the unwinding of the 1998 global crisis (evident
in the stabilization of the foreign markets) compelled the Fed to
increase short-term interest rates twice late in the fiscal year.
The Fed increased the federal funds rate 25 basis points at both
the June 30 and August 24 Federal Open Market Committee meetings.
On August 24, the Fed also increased the discount rate by 25 basis
points to 4.75%. Many investors felt that part of the Fed's
motivation in raising rates before the fourth quarter was to
stabilize the markets pre-emptively. The Fed has committed to
provide as much as $50 billion in cash to banks at year-end, along
with special liquidity facilities so brokers can finance their
inventories.
YOUR INVESTMENT PORTFOLIO
The Government & Agency Portfolio was launched on September 1,
1998. Since inception, the portfolio has been managed in a
modified-barbell format, with strong emphasis on the cash-
management portion of the yield curve. The portfolio managers will
selectively invest farther out the yield curve to add value and
protect the portfolio's weighted average maturity (WAM). The
portfolio's WAM stood at 27 days at the close of the fiscal year.
Using this strategy, the portfolio's Institutional Class
outperformed its comparative indexes as of August 31, 1999, as
shown in the table. Net assets of the Institutional Class stood at
$139.9 million at the close of the reporting period.
The portfolio continues to hold the highest credit-quality
ratings given by two widely known credit-rating agencies: AAAm from
Standard & Poor's and Aaa from Moody's. In addition, the portfolio
received the highest rating (AAA) from Fitch IBCA. These historical
ratings are based on an analysis of the portfolio's credit quality,
composition, management and weekly portfolio reviews. With the
addition of the AAA Fitch rating, AIM has become the largest multi-
fund complex to have all its institutional money market portfolios
given the highest rating by three nationally recognized ratings
agencies.
<TABLE>
<CAPTION>
Yields as of 8/31/99
Average Seven-Day
Monthly Yield Yield
<S> <C> <C> <C>
Government & Agency Portfolio
Institutional Class 5.05% 5.22%
IBC Money Fund Averages(TM) -
U.S. Treasury & Repurchase 4.31% 4.44%
Agreements
IBC Money Fund Averages(TM) -
Government Only/Institutions Only 4.60% 4.72%
</TABLE>
(continued)
<PAGE>
The Government & Agency Portfolio seeks to maximize current
income to the extent consistent with preservation of capital and
maintenance of liquidity. It invests in direct obligations of the
U.S. Treasury and other securities issued or guaranteed as to
principal and interest by the U.S. government or by its agencies or
instrumentalities, as well as repurchase agreements secured by such
obligations. Government securities, such as U.S. Treasury bills and
notes, offer a high degree of safety and are guaranteed as to the
timely payment of principal and interest if held to maturity. (An
investment in a money market fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government
agency. Although a money market fund seeks to preserve the value of
your investment at $1.00 per share, it is possible to lose money by
investing in the fund.)
OUTLOOK FOR THE FUTURE
Although the U.S. gross domestic product growth rate fell from 2.3%
to 1.6% at the end of the second quarter, the expected annualized
growth rate for the third quarter is 3.5%. The last two Fed rate
increases have so far had little effect on the U.S. economy, which
continues full steam ahead. With two more Fed meetings scheduled in
1999 (November 16 and December 21), investors are speculating about
another Fed tightening. Liquidity is the primary concern around the
Y2K issue. Because no one knows where the cash will be flowing by
year-end, money managers are dutifully estimating the anticipated
high withdrawal volume from financial institutions. Despite these
concerns, another tightening is still quite possible. Another
increase would position the federal funds target rate exactly where
it was before 1998's international crisis.
We are pleased to send you this annual report on your investment.
AIM is committed to the primary goals of safety, liquidity and
yield in institutional fund management. We are also committed to
customer service and are ready to respond to your comments about
this report. If you have any questions, please contact one of our
representatives at 800-659-1005. We are happy to be of service.
Respectfully submitted,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
2
<PAGE>
AVERAGE MONTHLY YIELD COMPARISON
Short-Term
Investments Trust IBC Money Fund IBC Money Fund
Government & Agency Averages(TM)- Averages(TM)
Portfolio Government Only/ U.S. Treasury &
Institutional Class Institutions Only Repurchase Agreements
9/98 5.54 4.82 5.07
10/98 5.16 4.41 4.73
11/98 5.03 4.3 4.6
12/98 4.88 4.22 4.53
1/99 4.85 4.14 4.47
2/99 4.78 4.11 4.42
3/99 4.81 4.16 4.44
4/99 4.79 4.14 4.41
5/99 4.78 4.11 4.37
6/99 4.79 4.07 4.37
7/99 4.97 4.25 4.52
8/99 5.05 4.31 4.6
WEIGHTED AVERAGE MATURITY COMPARISON
Short-Term
Investments Trust IBC Money Fund IBC Money Fund
Government & Agency Averages(TM)- Averages(TM)
Portfolio Government Only/ U.S. Treasury &
Institutional Class Institutions Only Repurchase Agreements
9/98 20 36 39
10/98 39 38 44
11/98 37 41 49
12/98 38 41 46
1/99 31 39 45
2/99 35 50 52
3/99 40 45 51
4/99 33 48 52
5/99 32 49 50
6/99 32 46 48
7/99 39 48 46
8/99 27 45 46
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, 1999
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCY SECURITIES(a) - 32.22%
FEDERAL HOME LOAN MORTGAGE CORP. DISCOUNT NOTES - 15.93%
4.80% 09/03/99 $5,000 $ 4,998,667
- -------------------------------------------------------------------------------
4.74% 09/10/99 5,000 4,994,075
- -------------------------------------------------------------------------------
4.70% 10/05/99 5,000 4,977,805
- -------------------------------------------------------------------------------
4.71% 10/08/99 5,000 4,975,796
- -------------------------------------------------------------------------------
5.04% 12/10/99 5,000 4,930,000
- -------------------------------------------------------------------------------
5.04% 12/14/99 5,000 4,927,200
- -------------------------------------------------------------------------------
5.23% 01/21/00 10,000 9,793,705
- -------------------------------------------------------------------------------
5.46% 02/17/00 5,000 4,871,842
- -------------------------------------------------------------------------------
44,469,090
- -------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION DISCOUNT NOTES - 16.29%
4.74% 09/15/99 10,000 9,981,567
- -------------------------------------------------------------------------------
4.75% 09/22/99 5,000 4,986,146
- -------------------------------------------------------------------------------
4.71% 10/21/99 2,000 1,986,917
- -------------------------------------------------------------------------------
4.80% 11/05/99 5,000 4,956,667
- -------------------------------------------------------------------------------
4.76% 11/12/99 5,000 4,952,400
- -------------------------------------------------------------------------------
4.89% 11/26/99 4,000 3,953,273
- -------------------------------------------------------------------------------
5.25% 01/26/00 10,000 9,785,625
- -------------------------------------------------------------------------------
5.49% 02/25/00 5,000 4,865,037
- -------------------------------------------------------------------------------
45,467,632
- -------------------------------------------------------------------------------
Total U.S. Government Agency Securities (Cost $89,936,722) 89,936,722
- -------------------------------------------------------------------------------
Total Investments (excluding Repurchase Agreements) 89,936,722
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENTS(b) - 68.17%
Banc One Capital Markets, Inc.(c)
5.60% 09/01/99 68,000 68,000,000
- -------------------------------------------------------------------------------
Barclays Capital Inc.(d)
5.51% 09/01/99 12,000 12,000,000
- -------------------------------------------------------------------------------
Credit Suisse First Boston Corp.(e)
5.50% 09/01/99 12,000 12,000,000
- -------------------------------------------------------------------------------
Dean Witter Reynolds, Inc.(f)
5.51% 09/01/99 12,000 12,000,000
- -------------------------------------------------------------------------------
Greenwich Capital Markets, Inc.(g)
5.60% 09/01/99 45,000 45,000,000
- -------------------------------------------------------------------------------
Salomon Smith Barney Inc.(h)
5.51% -- 12,000 12,000,000
- -------------------------------------------------------------------------------
Warburg Dillon Read LLC(i)
5.55% 09/01/99 25,000 25,000,000
- -------------------------------------------------------------------------------
Westdeutsche Landesbank Girozentrale(j)
5.50% 09/01/99 4,329 4,329,056
- -------------------------------------------------------------------------------
Total Repurchase Agreements (Cost $190,329,056) 190,329,056
- -------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
VALUE
<S> <C> <C> <C>
TOTAL INVESTMENTS -- 100.39% $280,265,778(k)
- -------------------------------------------------------------------------
OTHER LIABILITIES LESS ASSETS -- 0.39% (1,080,666)
- -------------------------------------------------------------------------
NET ASSETS -- 100.00% $279,185,112
=========================================================================
</TABLE>
NOTES TO SCHEDULE OF INVESTMENTS:
(a) U.S. Agency Discount Notes 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 is at least 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) Joint repurchase agreement entered into 08/31/99 with a maturing value of
$100,015,556. Collateralized by $102,450,000 U.S. Government obligations,
0% due 09/01/99 to 07/13/00 with an aggregate market value at 08/31/99 of
$102,004,236.
(d) Joint repurchase agreement entered into 08/31/99 with a maturing value of
$300,045,917. Collateralized by $307,517,000 U.S. Government obligations,
0% to 5.10% due 09/08/99 to 12/14/01 with an aggregate market value at
08/31/99 of $306,000,188.
(e) Joint repurchase agreement entered into 08/31/99 with a maturing value of
$500,076,389. Collateralized by $540,361,000 U.S. Government obligations,
0% to 9.05% due 09/20/99 to 01/13/14 with an aggregate market value at
08/31/99 of $527,119,365.
(f) Joint repurchase agreement entered into 08/31/99 with a maturing value of
$300,045,917. Collateralized by $312,373,000 U.S. Government obligations,
0% to 8.25% due 09/14/99 to 05/15/29 with an aggregate market value at
08/31/99 of $306,004,298.
(g) Repurchase agreement entered into 08/31/99 with a maturing value of
$45,007,000. Collateralized by $42,529,000 U.S. Government obligations,
5.375% to 7.50% due 06/30/00 to 11/15/16 with an aggregate market value at
08/31/99 of $45,900,470.
(h) Open joint repurchase agreement. Either party may terminate the agreement
upon demand. Interest rates, par and collateral are redetermined daily.
Collateralized by $880,779,143 U.S. Government obligations, 0% to 6.85% due
10/21/99 to 01/15/29 with an aggregate market value at 08/31/99 of
$889,114,611.
(i) Joint repurchase agreement entered into 08/31/99 with a maturing value of
$100,015,417. Collateralized by $102,040,000 U.S. Government obligations,
0% to 6.73% due 11/02/99 to 06/22/09 with an aggregate market value at
08/31/99 of $102,002,704.
(j) Joint repurchase agreement entered into 08/31/99 with a maturing value of
$150,022,917. Collateralized by $154,785,000 U.S. Government obligations,
4.875% to 8.75% due 01/26/01 to 11/15/08 with an aggregate market value at
08/31/99 of $153,004,905.
(k) Also represents cost for federal income tax purposes.
See Notes to Financial Statements.
5
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
August 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments, excluding repurchase agreements, at value (amortized cost) $ 89,936,722
- -----------------------------------------------------------------------------------------
Repurchase agreements 190,329,056
- -----------------------------------------------------------------------------------------
Interest receivable 29,437
- -----------------------------------------------------------------------------------------
Investment for deferred compensation plan 5,102
- -----------------------------------------------------------------------------------------
Other assets 20,533
- -----------------------------------------------------------------------------------------
Total assets 280,320,850
- -----------------------------------------------------------------------------------------
LIABILITIES:
Payables for:
Dividends 1,072,081
- -----------------------------------------------------------------------------------------
Deferred compensation 5,102
- -----------------------------------------------------------------------------------------
Accrued administrative services fees 4,400
- -----------------------------------------------------------------------------------------
Accrued distribution fees 17,693
- -----------------------------------------------------------------------------------------
Accrued transfer agent fees 2,497
- -----------------------------------------------------------------------------------------
Accrued trustees' fees 1,433
- -----------------------------------------------------------------------------------------
Accrued operating expenses 32,532
- -----------------------------------------------------------------------------------------
Total liabilities 1,135,738
- -----------------------------------------------------------------------------------------
NET ASSETS $279,185,112
=========================================================================================
NET ASSETS:
Institutional Class $139,860,355
=========================================================================================
Private Investment Class $ 42,527,994
=========================================================================================
Cash Management Class $ 85,113,041
=========================================================================================
Resource Class $ 11,683,722
=========================================================================================
SHARES OF BENEFICIAL INTEREST, $.01 PAR VALUE PER SHARE:
Institutional Class 139,859,943
=========================================================================================
Private Investment Class 42,528,044
=========================================================================================
Cash Management Class 85,113,383
=========================================================================================
Resource Class 11,683,742
=========================================================================================
NET ASSET VALUE PER SHARE:
Net asset value, offering and redemption price per share $ 1.00
=========================================================================================
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
STATEMENT OF OPERATIONS
For the year ended August 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest income $11,543,223
- ------------------------------------------------------------------
EXPENSES:
Advisory fees 232,220
- ------------------------------------------------------------------
Custodian fees 13,101
- ------------------------------------------------------------------
Administrative services fees 58,583
- ------------------------------------------------------------------
Trustees' fees and expenses 10,479
- ------------------------------------------------------------------
Transfer agent fees 22,907
- ------------------------------------------------------------------
Distribution fees (Note 2) 295,892
- ------------------------------------------------------------------
Printing fees 59,593
- ------------------------------------------------------------------
Other 62,220
- ------------------------------------------------------------------
Total expenses 754,995
- ------------------------------------------------------------------
Less: Fee waivers and reimbursements (427,183)
- ------------------------------------------------------------------
Net expenses 327,812
- ------------------------------------------------------------------
Net investment income 11,215,411
- ------------------------------------------------------------------
Net increase in net assets resulting from operations $11,215,411
==================================================================
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
For the year ended August 31, 1999
<TABLE>
<CAPTION>
<S> <C>
OPERATIONS:
Net investment income $ 11,215,411
- ------------------------------------------------------------------------
Net increase in net assets resulting from operations 11,215,411
- ------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Institutional Class (5,533,351)
- ------------------------------------------------------------------------
Private Investment Class (1,913,875)
- ------------------------------------------------------------------------
Cash Management Class (3,191,932)
- ------------------------------------------------------------------------
Resource Class (576,253)
- ------------------------------------------------------------------------
Share transactions-net (See Note 4) 279,185,112
- ------------------------------------------------------------------------
Net increase in net assets 279,185,112
- ------------------------------------------------------------------------
NET ASSETS:
Beginning of period --
- ------------------------------------------------------------------------
End of period $279,185,112
========================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $279,185,112
========================================================================
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS
August 31, 1999
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 three different portfolios, each of which offers separate series
of shares: the Treasury Portfolio, the Government & Agency Portfolio and the
Treasury TaxAdvantage Portfolio. The Government & Agency Portfolio commenced
operations on September 1, 1998. Information presented in these financial
statements pertains only to the Government & Agency Portfolio (the
"Portfolio"), with the assets, liabilities and operations of each portfolio
being accounted for separately. The Portfolio currently offers different
classes of shares: the Institutional Class, the Private Investment Class, the
Personal Investment Class, the Cash Management Class, the Reserve Class and the
Resource Class. Sales of the Personal Investment Class and the Reserve Class
have not yet commenced. 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 maximum annual rate of 0.10% to the average daily net assets of
the Portfolio. During the year ended August 31, 1999, AIM waived fees and
reimbursed expenses of $326,827.
8
<PAGE>
The Fund, pursuant to a master administrative services agreement with AIM,
has agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. During the year ended August 31, 1999, AIM was
paid $58,583 for such services.
The Fund, pursuant to a transfer agency and shareholder service agreement,
has agreed to pay A I M Fund Services, Inc. ("AFS") a fee for providing transfer
agent and shareholder services to the Fund. During the year ended August 31,
1999, AFS was paid $22,907 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, the
Reserve Class, and the Resource Class of the Portfolio. The Plan provides that
the Private Investment Class, the Personal Investment Class, the Cash
Management Class, the Reserve Class, and the Resource Class pay up to a 0.50%,
0.75%, 0.10%, 1.00%, 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, Personal Investment Class, and the Reserve 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, the Reserve 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 year ended August 31, 1999, the Private Investment Class, the
Cash Management Class, and the Resource Class paid $123,530, $53,328, and
$18,678, respectively, as compensation under the Plan. FMC waived fees of
$100,356 for the same period. Certain officers and trustees of the Trust are
officers of AIM, FMC and AFS.
During the year ended August 31, 1999, the Portfolio paid legal fees of
$2,670 for services rendered by Kramer, Levin, Naftalis & Frankel LLP 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 to trustees who are 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.
9
<PAGE>
NOTE 4-SHARE INFORMATION
Changes in shares outstanding during the year ended August 31, 1999:
<TABLE>
<CAPTION>
SHARES AMOUNT
------------ ------------
<S> <C> <C>
Sold:
Institutional Class 596,607,970 $596,607,970
- -----------------------------------------------------------------
Private Investment Class 101,447,592 101,447,592
- -----------------------------------------------------------------
Cash Management Class 281,678,849 281,678,849
- -----------------------------------------------------------------
Resource Class 167,590,664 167,590,664
- -----------------------------------------------------------------
Issued as reinvestment of dividends:
Institutional Class 3,376,023 3,376,023
- -----------------------------------------------------------------
Private Investment Class 1,572,109 1,572,109
- -----------------------------------------------------------------
Cash Management Class 2,457,651 2,457,651
- -----------------------------------------------------------------
Resource Class 383,792 383,792
- -----------------------------------------------------------------
Reacquired:
Institutional Class (460,124,050) (460,124,050)
- -----------------------------------------------------------------
Private Investment Class (60,491,657) (60,491,657)
- -----------------------------------------------------------------
Cash Management Class (199,023,117) (199,023,117)
- -----------------------------------------------------------------
Resource Class (156,290,714) (156,290,714)
- -----------------------------------------------------------------
Net increase 279,185,112 $279,185,112
=================================================================
</TABLE>
10
<PAGE>
NOTE 5-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share of the Institutional Class
outstanding during the year ended August 31, 1999.
<TABLE>
<CAPTION>
1999
--------
<S> <C>
Net asset value, beginning of period $ 1.00
- ------------------------------------------------------- --------
Income from investment operations:
Net investment income 0.05
- ------------------------------------------------------- --------
Less distributions:
Dividends from net investment income (0.05)
- ------------------------------------------------------- --------
Net asset value, end of period $ 1.00
======================================================= ========
Total return 5.07%
======================================================= ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $139,860
======================================================= ========
Ratio of expenses to average net assets(a) 0.06%(b)
======================================================= ========
Ratio of net investment income to average net assets(c) 4.91%(b)
======================================================= ========
</TABLE>
(a) After fee waivers and/or expense reimbursements. Ratio of expenses to
average net assets prior to fee waivers and/or expense reimbursements was
0.20%.
(b) Ratios based on average net assets of $112,709,406.
(c) After fee waivers and/or expense reimbursements. Ratio of net investment
income to average net assets prior to fee waivers and/or expense
reimbursements was 4.77%.
- --------------------------------------------------------------------------------
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
Government & Agency Portfiolio (a series portfolio of Short-Term Investments
Trust), including the schedule of investments, as of August 31, 1999, and the
related statement of operations, changes in net assets, and financial
highlights for the year 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 audit.
We conducted our audit 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, 1999, by correspondence with the custodian. 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 audit provides 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
Government & Agency Portfolio as of August 31, 1999, the results of its
operations, changes in its net assets, and financial highlights for the year
then ended, in conformity with generally accepted accounting principles.
KPMG LLP
October 1, 1999
Houston, Texas
11
<PAGE>
<TABLE>
<CAPTION>
TRUSTEES
<S> <C>
Charles T. Bauer Carl Frischling
Bruce L. Crockett Robert H. Graham Short-Term
Owen Daly II Prema Mathai-Davis Investments Trust
Edward K. Dunn, Jr. Lewis F. Pennock (STIT)
Jack M. Fields Louis S. Sklar
OFFICERS
Charles T. Bauer Chairman
Robert H. Graham President Government &
Gary T. Crum Sr. Vice President Agency
Carol F. Relihan Sr. Vice President & Secretary Portfolio
Dana R. Sutton Vice President & Treasurer --------------------------------------------
Melville B. Cox Vice President Institutional ANNUAL
Karen Dunn Kelley Vice President Class REPORT
J. Abbott Sprague Vice President
Mary J. Benson Assistant Vice President & Assistant Treasurer
Sheri Morris Assistant Vice President & Assistant Treasurer
Renee A. Friedli Assistant Secretary
P. Michelle Grace Assistant Secretary AUGUST 31, 1999
Jeffrey H. Kupor Assistant Secretary
Nancy L. Martin Assistant Secretary
Ofelia M. Mayo Assistant Secretary
Lisa A. Moss Assistant Secretary
Kathleen J. Pflueger Assistant Secretary
Samuel D. Sirko Assistant Secretary
Stephen I. Winer Assistant Secretary
INVESTMENT ADVISOR [LOGO APPEARS HERE]
A I M Advisors, Inc. Fund Management Company
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173
800-347-1919
DISTRIBUTOR
Fund Management Company
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173
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 DIRECTORS
Kramer, Levin, Naftalis & Frankel LLP
919 Third Avenue
New York, NY 10022
TRANSFER AGENT
A I M Fund Services, Inc.
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173
AUDITORS
KPMG LLP
700 Louisiana
Houston, TX 77002
This report may be distributed only to current shareholders or
to persons who have received a current prospectus.
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GAP-AR-1
