<PAGE>
[AIM LOGO APPEARS HERE] Dear Shareholder:
[PHOTO OF As the period covered by this report was
CHARLES T. BAUER, closing, the U.S. economy continued to move
LETTER CHAIRMAN OF THE ahead at a brisk pace. During the final quarter
TO OUR BOARD OF THE FUND of 1998, the economy grew at its fastest rate
SHAREHOLDERS APPEARS HERE] in two and a half years. Total gross domestic
product (GDP) growth for 1998 was 3.9%.
There was a different story overseas. Throughout the second
half of 1998, the global economy continued to experience economic
turmoil, financial instability and increased credit concerns.
Certain regions, particularly Asia, Russia and Latin America,
remained in a severe downturn.
As a result of this global meltdown, the U.S. Federal Open
Market Committee of the Federal Reserve Board (the Fed) reduced
the federal funds rate from 5.5% to 4.75% in three steps between
September and November. The discount rate was also reduced from 5%
to 4.5%. Interest rates were lowered, not to stimulate an already
strong U.S. economy, but to minimize the impact of the
international economic crises upon the U.S. economy and to
decrease volatility and calm the financial markets. In the United
States and Europe, financial markets were very volatile, but the
underlying economies continued surprisingly strong growth.
The yield on the one-year Treasury bill, which was as high as
5.32% in early July, dropped to 4.37% in early December as an
increase in the one-year Treasury bill's price caused its yield to
decline. The price increase was a result of investors' demand for
Treasuries in a "flight to quality" environment resulting from the
international crises and credit concerns.
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 in the yield curve to add value and
protect the weighted average maturity (WAM). In the initial six
months, the WAM was maintained in the 15- to 41-day range. The
Portfolio's WAM stood at 35 days at the close of the reporting
period.
The Portfolio was able to take advantage of the widening
spreads between Treasury and agency securities during the market
turmoil of the late fall. Hence, performance has been quite strong
for the reporting period. The Institutional Class of the Portfolio
outperformed its comparative indexes as of February 28, 1999, as
shown in the table.
The Portfolio initially received and continues to hold the
highest credit-quality ratings given by two widely known credit-
rating agencies: AAAm from Standard & Poor's Corporation and Aaa
from Moody's Investors Service, Inc. In addition, shortly after
the reporting period closed, the Portfolio received the highest
rating, AAA, granted by Fitch IBCA. The
<TABLE>
<CAPTION>
Yields as of 2/28/99
Average Seven-Day
Monthly Yield Yield
<S> <C> <C>
Government & Agency Portfolio
Institutional Class 4.78% 4.83%
IBC Money Fund Averages(TM) -
U.S. Treasury & Repurchase 4.10% 4.17%
Agreements
IBC Money Fund Averages(TM) -
Government Only/Institutions Only 4.43% 4.45%
</TABLE>
(continued)
<PAGE>
ratings are historical and 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
became the only multi-fund complex to have all of its
institutional money market portfolios given the highest rating by
three different rating agencies.
Net assets of the Institutional Class stood at $123.74 million
at the close of the reporting period.
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 bonds, 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 investing in the fund.
OUTLOOK FOR THE FUTURE
Statistics released shortly after the close of the reporting
period showed that employment gains have exceeded expectations and
wage inflation has been virtually non-existent. This caused
interest rates to drop, another indication the U.S. economy
continues to benefit from the unusual combination of strong growth
and low inflation.
As 1998 ended, there was speculation the Fed might decrease
interest rates even more. However, this view changed abruptly with
the release of stronger-than-expected adjusted December and
January economic numbers during the first quarter of 1999. These
numbers and other factors led many to speculate about the Fed
changing course and raising short-term rates again. We believe it
is unlikely such a move would be made soon because inflation
remains negligible despite robust economic growth. For the 12
months ended February 1999, producer prices were up just 0.5%, and
prices for intermediate goods actually fell during February 1999.
Retail sales growth and other economic indicators led to estimated
annualized GDP growth of 4.6% for the first quarter of 1999.
We are pleased to send you this 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>
(Charts)
AVERAGE MONTHLY YIELD COMPARISON
6 months ended 2/28/99 (Yields are average monthly yields
for the month-ends shown.)
<TABLE>
<CAPTION>
Short-Term IBC Money Fund IBC Money Fund
Investments Trust Averages(TM) Averages(TM)
Government Government U.S. Treasury &
& Agency Only/ Repurchase
Portfolio Institutions Agreements
Institutional Class Only
<S> <C> <C>
9/98 5.54 5.07 4.82
10/98 5.16 4.73 4.41
11/98 5.03 4.6 4.3
12/98 4.88 4.53 4.22
1/99 4.85 4.47 4.14
2/99 4.78 4.42 4.11
</TABLE>
WEIGHTED AVERAGE MATURITY COMPARISON
6 months ended 2/28/99 (As of the month-ends shown.)
<TABLE>
<CAPTION>
Short-Term IBC Money Fund IBC Money Fund
Investments Trust Averages(TM) Averages(TM)
Government Government U.S. Treasury &
& Agency Only/ Repurchase
Portfolio Institutions Agreements
Institutional Class Only
<S> <C> <C> <C>
9/98 20 39 36
10/98 39 44 38
11/98 37 49 41
12/98 38 46 41
1/99 31 45 39
2/99 35 52 50
</TABLE>
Source: IBC Financial Data, Inc. IBC Money Fund Report--Registered Trademark--
for weighted average maturities; IBC Money Fund Insight--Registered
Trademark--for average monthly yields.
<PAGE>
SCHEDULE OF INVESTMENTS
February 28, 1999
(Unaudited)
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCY SECURITIES - 49.82%
FEDERAL HOME LOAN BANK DISCOUNT NOTES(a) - 6.55%
4.74% 05/07/99 $ 5,000 $ 4,955,892
- -------------------------------------------------------------------------------
4.90% 06/23/99 2,000 1,968,966
- -------------------------------------------------------------------------------
4.63% 08/04/99 5,000 4,899,683
- -------------------------------------------------------------------------------
4.71% 08/11/99 4,035 3,948,950
- -------------------------------------------------------------------------------
15,773,491
- -------------------------------------------------------------------------------
FEDERAL HOME LOAN BANK BONDS - 2.08%
5.71% 05/05/99 5,000 5,007,701
- -------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORP. DISCOUNT
NOTES(a) - 17.27%
4.98% 03/09/99 10,000 9,988,933
- -------------------------------------------------------------------------------
4.57% 03/12/99 5,000 4,993,018
- -------------------------------------------------------------------------------
4.82% 04/01/99 12,000 11,950,194
- -------------------------------------------------------------------------------
4.60% 07/26/99 5,000 4,906,083
- -------------------------------------------------------------------------------
4.69% 08/13/99 5,000 4,892,521
- -------------------------------------------------------------------------------
4.77% 08/27/99 5,000 4,881,412
- -------------------------------------------------------------------------------
41,612,161
- -------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION DISCOUNT
NOTES(a) - 23.92%
4.99% 03/03/99 10,000 9,997,228
- -------------------------------------------------------------------------------
4.99% 03/15/99 5,000 4,990,298
- -------------------------------------------------------------------------------
4.90% 03/22/99 5,000 4,985,709
- -------------------------------------------------------------------------------
4.77% 04/05/99 5,000 4,976,812
- -------------------------------------------------------------------------------
4.89% 04/19/99 3,000 2,980,033
- -------------------------------------------------------------------------------
4.90% 04/19/99 2,000 1,986,660
- -------------------------------------------------------------------------------
4.84% 04/23/99 5,000 4,964,372
- -------------------------------------------------------------------------------
4.64% 05/13/99 8,000 7,924,729
- -------------------------------------------------------------------------------
4.36% 06/07/99 5,000 4,940,656
- -------------------------------------------------------------------------------
4.60% 06/07/99 5,000 4,937,389
- -------------------------------------------------------------------------------
4.36% 06/25/99 5,000 4,929,756
- -------------------------------------------------------------------------------
57,613,642
- -------------------------------------------------------------------------------
Total U.S. Government Agency Securities (Cost
$120,006,995) 120,006,995
- -------------------------------------------------------------------------------
Total Investments (excluding Repurchase
Agreements) 120,006,995
- -------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
REPURCHASE AGREEMENTS(b) - 50.49%
Barclays Capital Inc.(c)
4.85% 03/01/99 $ 2,632 $ 2,631,559
- -------------------------------------------------------------------------
Credit Suisse First Boston Corp.(d)
4.875% 03/01/99 60,000 60,000,000
- -------------------------------------------------------------------------
Salomon Smith Barney, Inc.(e)
4.85% -- 59,000 59,000,000
- -------------------------------------------------------------------------
Total Repurchase Agreements (Cost
$121,631,559) 121,631,559
- -------------------------------------------------------------------------
TOTAL INVESTMENTS - 100.31% 241,638,554(f)
- -------------------------------------------------------------------------
LIABILITIES LESS OTHER ASSETS - (0.31%) (742,680)
- -------------------------------------------------------------------------
NET ASSETS - 100.00% $240,895,874
=========================================================================
</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 02/26/99 with a maturing value of
$214,575,392. Collateralized by $217,012,000 U.S. Government obligations,
0% to 8.50% due 03/10/99 to 10/15/08 with an aggregate market value at
02/28/99 of $218,778,541.
(d) Joint repurchase agreement entered into 02/26/99 with a maturing value of
$500,203,125. Collateralized by $527,960,000 U.S. Government obligations,
4.90% to 7.85% due 01/14/00 to 02/25/09 with an aggregate market value at
02/28/99 of $524,499,525.
(e) Open joint repurchase agreement. Either party may terminate the agreement
upon demand. Interest rates, par and collateral are redetermined daily.
Collateralized by $746,798,000 U.S. Government obligations, 0% to 6.875%
due 03/31/99 to 07/15/45 with an aggregate market value at 02/28/99 of
$678,300,630.
(f) Also represents cost for federal income tax purposes.
See Notes to Financial Statements.
5
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
February 28, 1999
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, excluding repurchase agreements, at value (amortized
cost) $120,006,995
- -------------------------------------------------------------------------------
Repurchase agreements 121,631,559
- -------------------------------------------------------------------------------
Receivables for:
Interest receivable 140,691
- -------------------------------------------------------------------------------
Receivable due from advisor 63,586
- -------------------------------------------------------------------------------
Investment for deferred compensation plan 1,918
- -------------------------------------------------------------------------------
Other assets 14,727
- -------------------------------------------------------------------------------
Total assets 241,859,476
- -------------------------------------------------------------------------------
LIABILITIES:
Payables for:
Dividends 914,163
- -------------------------------------------------------------------------------
Deferred compensation 1,918
- -------------------------------------------------------------------------------
Accrued administrative services fees 4,700
- -------------------------------------------------------------------------------
Accrued distribution fees 14,498
- -------------------------------------------------------------------------------
Accrued transfer agent fees 5,963
- -------------------------------------------------------------------------------
Accrued trustees' fees 1,483
- -------------------------------------------------------------------------------
Accrued operating expenses 20,877
- -------------------------------------------------------------------------------
Total liabilities 963,602
- -------------------------------------------------------------------------------
NET ASSETS $240,895,874
===============================================================================
NET ASSETS:
Institutional Class $123,737,865
===============================================================================
Private Investment Class $ 41,457,625
===============================================================================
Cash Management Class $ 64,851,316
===============================================================================
Resource Class $ 10,849,068
===============================================================================
SHARES OF BENEFICIAL INTEREST, $.01 PAR VALUE PER SHARE:
Institutional Class 123,737,865
===============================================================================
Private Investment Class 41,457,625
===============================================================================
Cash Management Class 64,851,316
===============================================================================
Resource Class 10,849,068
===============================================================================
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, 1999
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest income $5,114,867
- -----------------------------------------------------------------
EXPENSES:
Advisory fees 101,611
- -----------------------------------------------------------------
Custodian fees 7,917
- -----------------------------------------------------------------
Administrative services fees 29,169
- -----------------------------------------------------------------
Trustees' fees and expenses 6,144
- -----------------------------------------------------------------
Transfer agent fees 13,345
- -----------------------------------------------------------------
Distribution fees (Note 2) 139,426
- -----------------------------------------------------------------
Legal fees 34,451
- -----------------------------------------------------------------
Prospectus 18,074
- -----------------------------------------------------------------
Other 8,389
- -----------------------------------------------------------------
Total expenses 358,526
- -----------------------------------------------------------------
Less: Fee waivers and reimbursements (213,623)
- -----------------------------------------------------------------
Net expenses 144,903
- -----------------------------------------------------------------
Net investment income 4,969,964
- -----------------------------------------------------------------
Net increase in net assets resulting from operations $4,969,964
=================================================================
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended February 28, 1999
(Unaudited)
<TABLE>
<CAPTION>
FEBRUARY 28,
1999
------------
<S> <C>
OPERATIONS:
Net investment income $ 4,969,964
- ------------------------------------------------------------------------
Net increase in net assets resulting from operations 4,969,964
- ------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Institutional Class (2,543,745)
- ------------------------------------------------------------------------
Private Investment Class (971,330)
- ------------------------------------------------------------------------
Cash Management Class (1,103,174)
- ------------------------------------------------------------------------
Resource Class (351,715)
- ------------------------------------------------------------------------
Share transactions-net (See Note 4) 240,895,874
- ------------------------------------------------------------------------
Net increase in net assets 240,895,874
- ------------------------------------------------------------------------
NET ASSETS:
Beginning of period --
- ------------------------------------------------------------------------
End of period $240,895,874
========================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $240,895,874
========================================================================
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS
February 28, 1999
(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 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 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 maximum annual rate of 0.10% to the average daily net assets of
the Portfolio. During the six months ended February 28, 1999, AIM waived fees
and reimbursed expenses of $165,197.
8
<PAGE>
The Portfolio, pursuant to a master administrative services agreement with
AIM, has agreed to reimburse AIM for certain costs incurred in providing
accounting services to the Portfolio. During the six months ended February 28,
1999, the Fund reimbursed AIM $29,169 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. During the six months ended February 28,
1999, the Portfolio paid AFS $9,145 for such services.
Under the terms of a master distribution agreement between Fund Management
("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 six months ended
February 28, 1999, the Private Investment Class, the Cash Management Class, and
the Resource Class paid $61,624, $18,296, and $11,080, respectively, as
compensation under the Plan. FMC waived fees of $48,426 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, 1999, the Portfolio paid legal fees
of $675 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 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.
9
<PAGE>
NOTE 4-SHARE INFORMATION
Changes in shares outstanding during the six months ended February 28, 1999:
<TABLE>
<CAPTION>
SHARES AMOUNT
------------ ------------
<S> <C> <C>
Sold:
Institutional Class 257,861,180 $257,861,180
- -----------------------------------------------------------------
Private Investment Class 83,462,847 83,462,847
- -----------------------------------------------------------------
Cash Management Class 112,550,453 112,550,453
- -----------------------------------------------------------------
Resource Class 121,898,346 121,898,346
- -----------------------------------------------------------------
Issued as reinvestment of dividends:
Institutional Class 1,799,242 1,799,242
- -----------------------------------------------------------------
Private Investment Class 959,363 959,363
- -----------------------------------------------------------------
Cash Management Class 1,096,889 1,096,889
- -----------------------------------------------------------------
Resource Class 246,369 246,369
- -----------------------------------------------------------------
Reacquired:
Institutional Class (135,922,557) (135,922,557)
- -----------------------------------------------------------------
Private Investment Class (42,964,585) (42,964,585)
- -----------------------------------------------------------------
Cash Management Class (48,796,026) (48,796,026)
- -----------------------------------------------------------------
Resource Class (111,295,647) (111,295,647)
- -----------------------------------------------------------------
Net increase 240,895,874 $240,895,874
=================================================================
</TABLE>
10
<PAGE>
NOTE 5-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share of the Institutional Class
outstanding during the six months ended February 28, 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 2.51%
======================================================= ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $123,738
======================================================= ========
Ratio of expenses to average net assets(a) 0.05%(b)
======================================================= ========
Ratio of net investment income to average net assets(c) 4.98%(b)
======================================================= ========
</TABLE>
(a) After fee waivers and/or reimbursements. Ratio of expenses to average net
assets prior to fee waivers and/or expense reimbursements was 0.21%
(annualized).
(b) Ratios are annualized and based on average net assets of $103,400,053.
(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 4.82% (annualized).
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
John J. Arthur Sr. Vice President & Treasurer
Gary T. Crum Sr. Vice President
Carol F. Relihan Sr. Vice President & Secretary Government &
Dana R. Sutton Vice President & Assistant Treasurer Agency
Melville B. Cox Vice President Portfolio
Karen Dunn Kelley Vice President ----------------------------------------
J. Abbott Sprague Vice President Institutional SEMI-
Mary J. Benson Assistant Vice President & Assistant Treasurer Class ANNUAL
Sheri Morris Assistant Vice President & Assistant Treasurer REPORT
Renee A. Friedli Assistant Secretary
P. Michelle Grace Assistant Secretary
Jeffrey H. Kupor Assistant Secretary
Nancy L. Martin Assistant Secretary
Ofelia M. Mayo Assistant Secretary FEBRUARY 28, 1999
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. [LOGO APPEARS HERE]
11 Greenway Plaza, Suite 100 FUND MANAGEMENT COMPANY
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
This report may be distributed only to current shareholders or
to persons who have received a current prospectus.
IGAP-SAR-1
</TABLE>
