<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 the grip
Chairman of the of the near-meltdown occasioned by 1998's Asian
LETTER Board of The Fund crises. The situation led the Federal Reserve
TO OUR APPEARS HERE] Board (the Fed) to reduce the short-term federal
SHAREHOLDERS 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
A looming Fed rate increase forced cautious investors to buy only
very short-term instruments, positioning cash for reinvestment at
higher levels. As Treasury bill yields continued near or slightly
below the federal funds target, the fund's portfolio managers
increased exposure to the repo market and looked more selectively
out the curve. With little reason to extend to pick up yield, the
weighted average maturity (WAM) was kept in the 20- to 35-day
range. Employing the modified barbell structure, the portfolio
managers took advantage of the higher-yielding overnight market
while looking for strategic opportunities further out the curve.
At the close of the reporting period, the portfolio's WAM was 20
days. Using this strategy, the portfolio's Reserve Class
performed competitively as of August 31, 1999. The seven-day
yield for the Reserve Class was 4.30%, and the average monthly
yield was 4.14%. Net assets of the Reserve Class stood at $120.0
million at the close of the fiscal year.
The portfolio continues to hold the highest credit-quality
ratings given by the two most 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.
The Treasury Portfolio seeks to maximize current income to the
extent consistent with preservation of capital and maintenance of
liquidity. It invests only in direct obligations of the
(continued)
<PAGE>
U.S. Treasury and in repurchase agreements secured by such
obligations. Government securities, such as U.S. Treasury bills
and notes, offer a high degree of safety and guarantee 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. The portfolio
will continue to maintain a relatively short maturity structure,
remaining flexible to take advantage of sudden market moves.
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>
SCHEDULE OF INVESTMENTS
August 31, 1999
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
U.S. TREASURY SECURITIES - 18.03%
U.S. TREASURY BILLS(a) - 2.85%
4.49% 11/04/99 $ 50,000 $ 49,600,889
- ---------------------------------------------------------------------------
4.631% 11/18/99 25,000 24,749,178
- ---------------------------------------------------------------------------
4.48% 12/09/99 50,000 49,383,312
- ---------------------------------------------------------------------------
4.615% 01/06/00 25,000 24,592,983
- ---------------------------------------------------------------------------
148,326,362
- ---------------------------------------------------------------------------
U.S. TREASURY NOTES - 15.18%
5.75% 09/30/99 75,000 75,061,771
- ---------------------------------------------------------------------------
7.125% 09/30/99 50,000 50,095,927
- ---------------------------------------------------------------------------
5.625% 10/31/99 80,000 80,113,813
- ---------------------------------------------------------------------------
7.50% 10/31/99 50,000 50,229,754
- ---------------------------------------------------------------------------
7.75% 11/30/99 55,612 56,002,337
- ---------------------------------------------------------------------------
5.625% 12/31/99 75,000 75,156,752
- ---------------------------------------------------------------------------
7.75% 12/31/99 100,000 100,822,053
- ---------------------------------------------------------------------------
6.375% 01/15/00 50,000 50,235,197
- ---------------------------------------------------------------------------
5.375% 01/31/00 25,000 25,056,803
- ---------------------------------------------------------------------------
7.75% 01/31/00 25,000 25,301,941
- ---------------------------------------------------------------------------
5.875% 02/15/00 100,000 100,380,204
- ---------------------------------------------------------------------------
8.50% 02/15/00 75,000 76,242,207
- ---------------------------------------------------------------------------
6.75% 04/30/00 25,000 25,220,193
- ---------------------------------------------------------------------------
789,918,952
- ---------------------------------------------------------------------------
Total U.S. Treasury Securities (Cost
$938,245,314) 938,245,314
- ---------------------------------------------------------------------------
Total Investments (excluding Repurchase
Agreements) 938,245,314
- ---------------------------------------------------------------------------
REPURCHASE AGREEMENTS(b) - 82.11%
BancAmerica Robertson Stephens(c)
5.43% 09/01/99 225,000 225,000,000
- ---------------------------------------------------------------------------
Barclays Capital, Inc.(d)
5.43% 09/01/99 225,000 225,000,000
- ---------------------------------------------------------------------------
Bear, Stearns & Co. Inc.(e)
5.43% -- 150,000 150,000,000
- ---------------------------------------------------------------------------
Bear, Stearns & Co. Inc.(f)
5.17% 01/24/00 200,000 200,000,000
- ---------------------------------------------------------------------------
Chase Securities Inc.(g)
5.43% 09/01/99 225,000 225,000,000
- ---------------------------------------------------------------------------
CIBC Oppenheimer Corp.(h)
5.43% 09/01/99 225,000 225,000,000
- ---------------------------------------------------------------------------
Credit Suisse First Boston Corp.(i)
5.23% 02/14/00 200,000 200,000,000
- ---------------------------------------------------------------------------
Deutsche Bank Securities, Inc.(j)
5.43% -- 800,000 800,000,000
- ---------------------------------------------------------------------------
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
REPURCHASE AGREEMENTS - (continued)
Merrill Lynch Government Securities, Inc(k)
5.43% 09/01/99 $225,000 $ 225,000,000
- --------------------------------------------------------------------------------
Salomon Smith Barney Inc.(l)
5.43% 09/01/99 750,000 750,000,000
- --------------------------------------------------------------------------------
Societe Generale Cowen Securities Corp.(m)
5.43% 09/01/99 500,000 500,000,000
- --------------------------------------------------------------------------------
State Street Bank & Trust Co.(n)
5.43% 09/01/99 225,000 225,000,000
- --------------------------------------------------------------------------------
Warburg Dillon Read LLC(o)
5.34% 02/01/00 100,000 100,000,000
- --------------------------------------------------------------------------------
Warburg Dillon Read LLC(p)
5.42% 09/01/99 222,630 222,630,039
- --------------------------------------------------------------------------------
Total Repurchase Agreements (Cost
$4,272,630,039) 4,272,630,039
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS - 100.14% 5,210,875,353(q)
- --------------------------------------------------------------------------------
LIABILITIES LESS OTHER ASSETS - (0.14)% (7,128,247)
- --------------------------------------------------------------------------------
NET ASSETS - 100.00% $5,203,747,106
================================================================================
</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 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) Repurchase agreement entered into 08/31/99 with a maturing value of
$225,033,938. Collateralized by $209,140,000 U.S. Treasury obligations,
4.00% to 13.75% due 02/15/00 to 02/15/07 with an aggregate market value at
08/31/99 of $229,996,602.
(d) Repurchase agreement entered into 08/31/99 with a maturing value of
$225,033,938. Collateralized by $230,079,000 U.S. Treasury obligations,
4.25% to 6.125% due 11/15/03 to 08/15/29 with an aggregate market value at
08/31/99 of $229,500,304.
(e) Open repurchase agreement entered into 08/27/97; however, either party may
terminate the agreement upon demand. Interest rates, par and collateral are
redetermined daily. Collateralized by $451,335,000 U.S. Treasury
obligations, 0% to 8.75% due 07/20/00 to 11/15/26 with an aggregate market
value at 08/31/99 of $153,430,781.
(f) Term repurchase agreement entered into 07/28/99; however, either party may
terminate the agreement upon demand. Interest rates, par and collateral are
redetermined daily. Collateralized by $153,000,000 U.S Treasury
obligations, 4.50% to 10.625% due 05/15/00 to 08/15/17 with an aggregate
market value at 08/31/99 of $204,012,877.
(g) Repurchase agreement entered into 08/31/99 with a maturing value of
$225,033,938. Collateralized by $225,851,000 U.S. Treasury obligations, 0%
to 3.875% due 09/02/99 to 04/15/29 with an aggregate market value at
08/31/99 of $229,500,787.
(h) Repurchase agreement entered into 08/31/99 with a maturing value of
$225,033,938. Collateralized by $223,219,000 U.S. Treasury obligations, 0%
to 7.25% due 09/15/99 to 08/15/26 with an aggregate market value at
08/31/99 of $229,504,040.
(i) Term repurchase agreement entered into 07/27/99; however, either party may
terminate the agreement upon demand. Interest rates, par and collateral are
redetermined daily. Collateralized by $445,674,874 U.S Treasury
obligations, 0% to 12.00% due 11/15/99 to 11/15/27 with an aggregate market
value at 08/31/99 of $206,048,641.
(j) Open repurchase agreement entered into 07/29/98; however, either party may
terminate the agreement upon demand. Interest rates, par and collateral are
redetermined daily. Collateralized by $795,187,000 U.S. Treasury
obligations, 3.375% to 8.00% due 08/31/00 to 11/15/21 with an aggregate
market value at 08/31/99 of $816,000,276.
(k) Repurchase agreement entered into 08/31/99 with a maturing value of
$225,033,938. Collateralized by $169,934,000 U.S. Treasury obligations,
6.875% to 12.50% due 08/15/14 to 08/15/25 with an aggregate market value at
08/31/99 of $229,503,106.
(l) Repurchase agreement entered into 08/31/99 with a maturing value of
$750,113,125. Collateralized by $746,935,000 U.S. Treasury obligations,
6.00% to 7.00% due 08/15/04 to 07/15/06 with an aggregate market value at
08/31/99 of $765,177,675.
(m) Repurchase agreement entered into 08/31/99 with a maturing value of
$500,075,417. Collateralized by $439,557,000 U.S. Treasury obligations,
4.50% to 12.50% due 09/30/99 to 08/15/26 with an aggregate market value at
08/31/99 of $510,297,171.
(n) Repurchase agreement entered into 08/31/99 with a maturing value of
$225,033,938. Collateralized by $230,660,000 U.S. Treasury obligations,
5.125% due 08/31/00 with a market value at 08/31/99 of $229,760,426.
(o) Term repurchase agreement entered into 08/19/99; however, either party may
terminate the agreement upon demand. Interest rates, par and collateral are
redetermined daily. Collateralized by $90,430,000 U.S Treasury obligations,
7.50% due 11/15/16 with a market value at 08/31/99 of $102,000,601.
(p) Joint repurchase agreement entered into 08/31/99 with a maturing value of
$500,075,278. Collateralized by $500,003,334 U.S. Treasury obligations,
6.50% to 9.125% due 05/15/18 to 11/15/26 with an aggregate market value at
08/31/99 of $510,003,412.
(q) Also represents cost for federal income tax purposes.
See Notes to Financial Statements.
4
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
August 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments, excluding repurchase agreements, at value
(amortized cost) $ 938,245,314
- ------------------------------------------------------------------------
Repurchase agreements 4,272,630,039
- ------------------------------------------------------------------------
Interest receivable 13,668,357
- ------------------------------------------------------------------------
Investment for deferred compensation plan 101,152
- ------------------------------------------------------------------------
Other assets 172,580
- ------------------------------------------------------------------------
Total assets 5,224,817,442
- ------------------------------------------------------------------------
LIABILITIES:
Payables for:
Dividends 20,194,469
- ------------------------------------------------------------------------
Deferred compensation 101,152
- ------------------------------------------------------------------------
Accrued administrative services fees 24,787
- ------------------------------------------------------------------------
Accrued advisory fees 247,796
- ------------------------------------------------------------------------
Accrued distribution fees 396,227
- ------------------------------------------------------------------------
Accrued transfer agent fees 2,629
- ------------------------------------------------------------------------
Accrued trustees' fees 4,200
- ------------------------------------------------------------------------
Accrued operating expenses 99,076
- ------------------------------------------------------------------------
Total liabilities 21,070,336
- ------------------------------------------------------------------------
NET ASSETS $5,203,747,106
========================================================================
NET ASSETS:
Institutional Class $3,164,199,019
========================================================================
Private Investment Class $ 415,184,467
========================================================================
Personal Investment Class $ 284,932,336
========================================================================
Cash Management Class $ 860,354,479
========================================================================
Reserve Class $ 119,976,218
========================================================================
Resource Class $ 359,100,587
========================================================================
SHARES OF BENEFICIAL INTEREST, $.01 PAR VALUE PER SHARE:
Institutional Class 3,163,983,313
========================================================================
Private Investment Class 415,165,788
========================================================================
Personal Investment Class 284,906,884
========================================================================
Cash Management Class 860,290,642
========================================================================
Reserve Class 119,973,330
========================================================================
Resource Class 359,071,030
========================================================================
NET ASSET VALUE PER SHARE:
Net asset value, offering and redemption price per share $ 1.00
========================================================================
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
STATEMENT OF OPERATIONS
For the year ended August 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest income $261,703,046
- -------------------------------------------------------------------
EXPENSES:
Advisory fees 3,072,316
- -------------------------------------------------------------------
Custodian fees 196,425
- -------------------------------------------------------------------
Administrative services fees 179,471
- -------------------------------------------------------------------
Trustees' fees and expenses 51,955
- -------------------------------------------------------------------
Transfer agent fees 594,299
- -------------------------------------------------------------------
Distribution fees (Note 2) 6,590,154
- -------------------------------------------------------------------
Other 500,054
- -------------------------------------------------------------------
Total expenses 11,184,674
- -------------------------------------------------------------------
Less: Fee waivers (2,048,089)
- -------------------------------------------------------------------
Net expenses 9,136,585
- -------------------------------------------------------------------
Net investment income 252,566,461
- -------------------------------------------------------------------
Net realized gain on sales of investments 233,481
- -------------------------------------------------------------------
Net increase in net assets resulting from operations $252,799,942
===================================================================
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
For the years ended ended August 31, 1999 and 1998
<TABLE>
<CAPTION>
1999 1998
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 252,566,461 $ 282,365,404
- -----------------------------------------------------------------------------
Net realized gain on sales of investments 233,481 17,887
- -----------------------------------------------------------------------------
Net increase in net assets resulting from
operations 252,799,942 282,383,291
- -----------------------------------------------------------------------------
Distributions to shareholders from net
investment income:
Institutional Class (154,878,876) (171,162,611)
- -----------------------------------------------------------------------------
Private Investment Class (16,111,371) (20,105,302)
- -----------------------------------------------------------------------------
Personal Investment Class (16,331,172) (18,031,165)
- -----------------------------------------------------------------------------
Cash Management Class (46,789,257) (55,954,060)
- -----------------------------------------------------------------------------
Reserve Class (1,139,360) --
- -----------------------------------------------------------------------------
Resource Class (17,316,425) (17,112,266)
- -----------------------------------------------------------------------------
Distributions to shareholders from net
realized gains:
Institutional Class (432,034) --
- -----------------------------------------------------------------------------
Private Investment Class (43,761) --
- -----------------------------------------------------------------------------
Personal Investment Class (47,801) --
- -----------------------------------------------------------------------------
Cash Management Class (126,796) --
- -----------------------------------------------------------------------------
Resource Class (49,581) --
- -----------------------------------------------------------------------------
Share transactions-net (See Note 4) 59,979,434 (116,572,228)
- -----------------------------------------------------------------------------
Net increase (decrease) in net assets 59,512,942 (116,554,341)
- -----------------------------------------------------------------------------
NET ASSETS:
Beginning of period 5,144,234,164 5,260,788,505
- -----------------------------------------------------------------------------
End of period $5,203,747,106 $5,144,234,164
=============================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $5,203,390,987 $5,143,411,553
- -----------------------------------------------------------------------------
Undistributed net realized gain on sales of
investments 356,119 822,611
- -----------------------------------------------------------------------------
$5,203,747,106 $5,144,234,164
=============================================================================
</TABLE>
See Notes to Financial Statements.
6
<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. 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 currently offers six 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.
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>
7
<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 $179,471 for such services.
The Fund, 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 Fund. During the year ended August 31, 1999, AFS
was paid $477,417 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
Personal Investment Class, the Cash Management Class, the Reserve Class and the
Resource Class paid $1,063,328, $1,878,076, $783,278, $226,595 and $590,788,
respectively, as compensation under the Plan. FMC waived fees of $2,048,089 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
$13,465 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.
8
<PAGE>
NOTE 4-SHARE INFORMATION
Changes in shares outstanding during the years ended August 31, 1999 and 1998
were as follows:
<TABLE>
<CAPTION>
1999 1998
-------------------------------- --------------------------------
SHARES AMOUNT SHARES AMOUNT
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Sold:
Institutional Class 18,697,189,201 $18,697,189,201 18,385,087,568 $18,385,087,568
- -------------------------------------------------------------------------------------------
Private Investment
Class 1,543,792,773 1,543,792,773 1,991,337,616 1,991,337,616
- -------------------------------------------------------------------------------------------
Personal Investment
Class 3,783,262,789 3,783,262,789 3,949,434,631 3,949,434,631
- -------------------------------------------------------------------------------------------
Cash Management Class 6,593,996,488 6,593,996,488 6,742,292,291 6,742,292,291
- -------------------------------------------------------------------------------------------
Reserve Class* 339,249,182 339,249,182 -- --
- -------------------------------------------------------------------------------------------
Resource Class 2,625,595,247 2,625,595,247 2,712,585,402 2,712,585,402
- -------------------------------------------------------------------------------------------
Issued as reinvestment
of dividends:
Institutional Class 35,404,120 35,404,120 34,740,376 34,740,376
- -------------------------------------------------------------------------------------------
Private Investment
Class 5,531,007 5,531,007 5,517,795 5,517,795
- -------------------------------------------------------------------------------------------
Personal Investment
Class 14,908,717 14,908,717 16,025,048 16,025,048
- -------------------------------------------------------------------------------------------
Cash Management Class 18,450,756 18,450,756 20,427,201 20,427,201
- -------------------------------------------------------------------------------------------
Reserve Class* 740,689 740,689 -- --
- -------------------------------------------------------------------------------------------
Resource Class 16,749,204 16,749,204 15,915,270 15,915,270
- -------------------------------------------------------------------------------------------
Reacquired:
Institutional Class (18,556,477,426) (18,556,477,426) (18,839,453,624) (18,839,453,624)
- -------------------------------------------------------------------------------------------
Private Investment
Class (1,494,418,811) (1,494,418,811) (2,099,963,668) (2,099,963,668)
- -------------------------------------------------------------------------------------------
Personal Investment
Class (3,919,007,542) (3,919,007,542) (3,882,639,209) (3,882,639,209)
- -------------------------------------------------------------------------------------------
Cash Management Class (6,685,798,097) (6,685,798,097) (6,658,189,744) (6,658,189,744)
- -------------------------------------------------------------------------------------------
Reserve Class* (220,016,541) (220,016,541) -- --
- -------------------------------------------------------------------------------------------
Resource Class (2,739,172,322) (2,739,172,322) (2,509,689,181) (2,509,689,181)
- -------------------------------------------------------------------------------------------
Net increase (decrease) 59,979,434 $ 59,979,434 (116,572,228) $ (116,572,228)
===========================================================================================
</TABLE>
* The Reserve Class commenced sales on January 4, 1999.
9
<PAGE>
NOTE 5-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share of the Reserve Class
outstanding during the period January 4, 1999 (date sales commenced) through
August 31, 1999.
<TABLE>
<CAPTION>
1999
--------
<S> <C>
Net asset value, beginning of period $ 1.00
- ------------------------------------------------------- --------
Income from investment operations:
Net investment income 0.03
- ------------------------------------------------------- --------
Less distributions:
Dividends from net investment income (0.03)
- ------------------------------------------------------- --------
Net asset value, end of period $ 1.00
======================================================= ========
Total return(a) 2.63%
======================================================= ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $119,976
======================================================= ========
Ratio of expenses to average net assets(b) 0.89%(c)
======================================================= ========
Ratio of net investment income to average net assets(d) 2.09%(c)
======================================================= ========
</TABLE>
(a) Not annualized for periods less than one year.
(b) After fee waivers and/or expense reimbursements. Ratio of expenses to
average net assets prior to fee waivers and/or expense reimbursement was
1.09%.
(c) Ratios are annualized and based on average net assets of $28,324,369.
(d) After fee waivers and/or expense reimbursements. Ratio of net investment
income to average net assets prior to fee waivers and/or expense
reimbursement was 1.89%.
10
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Board of Trustees and Shareholders
Short-Term Investments Trust:
We have audited the accompanying statement of assets and liabilities of
Treasury Portfolio (a series portfolio of Short-Term Investments Trust),
including the schedule of investments, as of August 31, 1999, and the related
statement of operations for the year then ended, the statement of changes in
net assets for each of the two years in the period then ended, and the
financial highlights for the period January 4, 1999 (date sales commenced for
the Reserve Class) through August 31, 1999. 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
Treasury Portfolio as of August 31, 1999, the results of its operations for the
year then ended, the changes in its net assets for each of the two years in the
period then ended, and the financial highlights for the period January 4, 1999
(date sales commenced for the Reserve Class) through August 31, 1999, 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
Gary T. Crum Sr. Vice President
Carol F. Relihan Sr. Vice President & Secretary
Dana R. Sutton Vice President & Treasurer
Melville B. Cox Vice President Treasury
Karen Dunn Kelley Vice President Portfolio
J. Abbott Sprague Vice President -------------------------------------------------
Mary J. Benson Assistant Vice President & Assistant Treasurer Reserve ANNUAL
Sheri Morris Assistant Vice President & Assistant Treasurer Class REPORT
Renee A. Friedli Assistant Secretary
P. Michelle Grace Assistant Secretary
Jeffrey H. Kupor Assistant Secretary
Nancy L. Martin Assistant Secretary AUGUST 31, 1999
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
A I M Advisors, Inc.
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 TRUSTEES
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 [LOGO APPEARS HERE]
to persons who have received a current prospectus. Fund Management Company
</TABLE>
TRE-AR-6
