<PAGE>
[AIM LOGO APPEARS HERE] Dear Shareholder:
- --Registered Trademark--
[PHOTO of As the end of the six-month reporting period
Charles T. Bauer arrived, the U.S. economy continued to move
Chairman of the ahead at a lively pace. The Federal Reserve
LETTER Board of The Fund Board (the Fed) increased the key federal
TO OUR APPEARS HERE] funds rate a total of 75 basis points during
SHAREHOLDERS 1999. At the beginning of this reporting
period, the Fed's primary focus was to stabilize the markets in
anticipation of a potential Y2K-related liquidity crisis. Y2K
thankfully turned out to be a non-event. As 2000 began, the robust
domestic economy (coupled with inflationary tendencies in certain
commodity prices) compelled the Fed to increase the federal funds
rate 25 basis points on March 21 to 6.00%. The Fed will most likely
continue to increase short-term rates to contain the equity
markets' high growth performance; there is a strong consensus among
financial markets that the Fed will increase rates by 25 basis
points at the May 16 meeting. If the rate hikes do halt or slow the
equity markets' activity, the money market sector anticipates more
incoming cash as the year progresses.
YOUR INVESTMENT PORTFOLIO
Through a combination of short-term cash-management vehicles and
the selective use of a longer maturity schedule for higher yields,
the portfolio continued to provide attractive returns. The
portfolio's weighted average maturity (WAM) was kept at a moderate
length for much of the period due to concerns about an increase in
short-term interest rates. The WAM remained in the 18- to 31-day
range, closing the period at 31 days. The portfolio's Institutional
Class outperformed its comparative indexes as of February 29, 2000,
as shown in the table. Net assets of the Institutional Class stood
at $3.2 billion at the close of the reporting period.
The portfolio continues to hold the highest credit-quality
ratings given by three widely known credit-rating agencies: AAAm
from Standard & Poor's, Aaa from Moody's and AAA from Fitch IBCA.
These historical ratings are based on an analysis of the
portfolio's credit quality, composition, management and weekly
portfolio reviews. AIM is the largest multi-fund complex to have
all its institutional money market portfolios given the highest
rating by three nationally recognized ratings agencies, according
to IBC Financial Data, Inc.
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 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
investing in the fund.
<TABLE>
<CAPTION>
YIELDS AS OF 2/29/00
Average Seven-Day
Monthly Yield Yield
<S> <C> <C>
Treasury Portfolio
Institutional Class 5.57% 5.63%
IBC Money Fund Averages(TM) -
U.S. Treasury/Repurchase Agreements 4.93% 4.98%
IBC Money Fund Averages(TM) -
Government Only/Institutions Only 5.26% 5.32%
</TABLE>
(continued)
<PAGE>
OUTLOOK FOR THE FUTURE
Gross domestic product growth for the fourth quarter of 1999 was at
an annualized rate of 7.3%, and for the year 4.2%. There is no
evidence of a slowdown; there is no inventory drop-off, and
consumer spending continues to increase. February's rate increase
has had a minimal effect on the U.S. economy, which continues full
steam ahead. The Fed will probably continue to raise interest rates
until a substantial correction occurs within the equity markets. In
February, the current period of economic expansion became the
longest in U.S. history. Many analysts expect this growth to
continue through at least the first half of 2000. It seems that the
same story that dogged markets in 1999 is so far continuing, with
persistent upward pressure on interest rates.
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 dedicated to customer
service, and we 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 if we may help.
Respectfully submitted,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
2
<PAGE>
AVERAGE MONTHLY YIELD COMPARISON
Six months ended 2/29/00
(Yields are average monthly yields for the month-ends shown.)
<TABLE>
<CAPTION>
SEPT 30 OCT 31 NOV 30 DEC 31 JAN 31 FEB 29
1999 1999 1999 1999 2000 2000
<S> <C> <C> <C> <C> <C> <C>
Short-Term Investments Trust
Treasury Portfolio
Institutional Class 5.07 5.06 5.23 5.2 5.25 5.57
IBC Money Fund Averages(TM)
U.S. Treasury & Repurchase
Agreements 4.45 4.44 4.59 4.61 4.64 4.93
IBC Money Fund Averages(TM)
Government Only/Institutions Only 4.74 4.77 4.92 5.01 5.06 5.26
</TABLE>
WEIGHTED AVERAGE MATURITY COMPARISON
Six months ended 2/29/00
<TABLE>
<CAPTION>
SEPT 30 OCT 31 NOV 30 DEC 31 JAN 31 FEB 29
1999 1999 1999 1999 2000 2000
<S> <C> <C> <C> <C> <C> <C>
Short-Term Investments Trust
Treasury Portfolio
Institutional Class 19 22 22 23 18 31
IBC Money Fund Averages(TM)
U.S. Treasury & Repurchase
Agreements 44 45 44 44 42 40
IBC Money Fund Averages(TM)
Government Only/Institutions Only 44 46 45 39 39 43
</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.
3
<PAGE>
SCHEDULE OF INVESTMENTS
February 29, 2000
(Unaudited)
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
U.S. TREASURY SECURITIES - 22.99%
U.S. TREASURY BILLS(a) - 11.02%
5.04% 03/30/00 $100,000 $ 99,594,000
- -------------------------------------------------------------------------
5.07% 03/30/00 200,000 199,183,167
- -------------------------------------------------------------------------
5.12% 03/30/00 90,000 89,628,800
- -------------------------------------------------------------------------
5.69% 04/27/00 50,000 49,549,937
- -------------------------------------------------------------------------
5.35% 05/25/00 50,000 49,368,993
- -------------------------------------------------------------------------
5.70% 08/03/00 50,000 48,773,993
- -------------------------------------------------------------------------
5.84% 03/01/01 50,000 47,047,556
- -------------------------------------------------------------------------
583,146,446
- -------------------------------------------------------------------------
U.S. TREASURY NOTES - 11.97%
6.75% 04/30/00 50,000 50,109,315
- -------------------------------------------------------------------------
6.38% 05/15/00 30,000 30,055,060
- -------------------------------------------------------------------------
6.25% 05/31/00 25,000 25,048,290
- -------------------------------------------------------------------------
5.38% 06/30/00 75,000 74,993,804
- -------------------------------------------------------------------------
6.13% 07/31/00 55,000 55,121,616
- -------------------------------------------------------------------------
8.75% 08/15/00 50,000 50,708,459
- -------------------------------------------------------------------------
6.25% 08/31/00 50,000 50,152,662
- -------------------------------------------------------------------------
4.50% 09/30/00 50,000 49,541,567
- -------------------------------------------------------------------------
6.13% 09/30/00 50,000 50,026,378
- -------------------------------------------------------------------------
4.00% 10/31/00 75,000 73,934,428
- -------------------------------------------------------------------------
5.75% 11/15/00 50,000 49,819,979
- -------------------------------------------------------------------------
4.63% 11/30/00 75,000 74,116,153
- -------------------------------------------------------------------------
633,627,711
- -------------------------------------------------------------------------
Total U.S. Treasury Securities (Cost $1,216,774,157) 1,216,774,157
- -------------------------------------------------------------------------
Total Investments (excluding Repurchase Agreements) 1,216,774,157
- -------------------------------------------------------------------------
REPURCHASE AGREEMENTS(b) - 78.21%
Barclays Capital, Inc.(c)
5.77% 03/01/00 240,000 240,000,000
- -------------------------------------------------------------------------
Bear, Stearns & Co. Inc.(d)
5.77% -- 150,000 150,000,000
- -------------------------------------------------------------------------
Chase Securities Inc.(e)
5.77% 03/01/00 240,000 240,000,000
- -------------------------------------------------------------------------
CIBC Oppenheimer Corp.(f)
5.77% 03/01/00 240,000 240,000,000
- -------------------------------------------------------------------------
Credit Suisse First Boston Corp.(g)
5.80% 03/01/00 200,000 200,000,000
- -------------------------------------------------------------------------
Deutsche Bank Securities, Inc.(h)
5.77% -- 800,000 800,000,000
- -------------------------------------------------------------------------
Dresdner Kleinwort Benson NA LLC(i)
5.77% 03/01/00 240,000 240,000,000
- -------------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
REPURCHASE AGREEMENTS(b) - (Continued)
First Union Capital Markets(j)
5.77% 03/01/00 $150,000 $ 150,000,000
- -----------------------------------------------------------------------------
Salomon Smith Barney, Inc.(k)
5.76% 03/01/00 448,193 448,192,966
- -----------------------------------------------------------------------------
Schroders & Co., Inc.(l)
5.77% 03/01/00 240,000 240,000,000
- -----------------------------------------------------------------------------
Societe Generale Cowen Securities Corp.(m)
5.77% 03/01/00 250,000 250,000,000
- -----------------------------------------------------------------------------
Warburg Dillon Read LLC(n)
5.77% 03/01/00 700,000 700,000,000
- -----------------------------------------------------------------------------
WestDeutsche Landesberg Girozentrale(o)
5.77% 03/01/00 240,000 240,000,000
- -----------------------------------------------------------------------------
Total Repurchase Agreements (Cost $4,138,192,966) 4,138,192,966
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS - 101.20% (Cost $5,354,967,123) 5,354,967,123
- -----------------------------------------------------------------------------
LIABILITIES LESS OTHER ASSETS - (1.20)% (63,705,913)
- -----------------------------------------------------------------------------
NET ASSETS - 100.00% $5,291,261,210
- -----------------------------------------------------------------------------
</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 02/29/00 with a maturing value of
$240,038,467. Collateralized by $229,976,000 U.S. Government obligations,
0% to 13.125% due 04/20/00 to 08/15/22 with an aggregate market value at
02/29/00 of $244,603,870.
(d) 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 $439,862,000 U.S. Government
obligations, 0% to 9.25% due 05/15/04 to 02/15/27 with an aggregate market
value at 02/29/00 of $153,914,549.
(e) Repurchase agreement entered into 02/29/00 with a maturing value of
$240,038,467. Collateralized by $252,383,000 U.S. Government obligations,
5.50% to 6.875% due 11/30/00 to 05/15/08 with an aggregate market value at
02/29/00 of $244,800,308.
(f) Repurchase agreement entered into 02/29/00 with a maturing value of
$240,038,467. Collateralized by $242,174,000 U.S. Government obligations,
4.50% to 14.25% due 08/15/00 to 08/15/28 with an aggregate market value at
02/29/00 of $244,999,870.
(g) Repurchase agreement entered into 02/29/00 with a maturing value of
$200,032,222. Collateralized by $498,102,715 U.S. Government obligations,
0% to 8.75% due 02/15/10 to 05/15/17 with an aggregate market value at
02/29/00 of $207,772,331.
(h) 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 $803,375,000 U.S. Government
obligations, 0% to 10.375% due 06/08/00 to 08/15/29 with an aggregate
market value at 02/29/00 of $816,000,927.
(i) Repurchase agreement entered into 02/29/00 with a maturing value of
$240,038,467. Collateralized by $222,020,000 U.S. Government obligations,
3.625% to 12.50% due 01/15/08 to 05/15/30 with an aggregate market value at
02/29/00 of $244,806,713.
(j) Repurchase agreement entered into 02/29/00 with a maturing value of
$150,024,042. Collateralized by $138,456,000 U.S. Government obligations,
4.625% to 11.25% due 12/31/00 to 02/15/15 with an aggregate market value at
02/29/00 of $153,000,681.
(k) Joint repurchase agreement entered into 02/29/00 with a maturing value of
$500,080,000. Collateralized by $1,248,055,000 U.S. Government obligations,
0% due 11/15/01 to 08/15/21 with an aggregate market value at 02/29/00 of
$510,176,897.
(l) Repurchase agreement entered into 02/29/00 with a maturing value of
$240,038,467. Collateralized by $235,553,000 U.S. Government obligations,
0% to 10.75% due 03/02/00 to 08/15/29 with an aggregate market value at
02/29/00 of $244,802,276.
(m) Repurchase agreement entered into 02/29/00 with a maturing value of
$250,040,069. Collateralized by $190,057,000 U.S. Government obligations,
9.875% to 12.00% due 08/15/13 to 11/15/15 with an aggregate market value at
02/29/00 of $255,151,205.
(n) Repurchase agreement entered into 02/29/00 with a maturing value of
$700,112,194. Collateralized by $723,100,000 U.S. Government obligations,
0% due 04/27/00 to 06/29/00 with an aggregate market value at 02/29/00 of
$714,003,653.
(o) Repurchase agreement entered into 02/29/00 with a maturing value of
$240,038,467. Collateralized by $214,272,000 U.S. Government obligations,
5.375% to 13.25% due 11/30/00 to 05/15/14 with an aggregate market value at
02/29/00 of $244,800,395.
See Notes to Financial Statements.
5
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
February 29, 2000
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, excluding repurchase agreements, at value
(amortized cost) $1,216,774,157
- ------------------------------------------------------------------------
Repurchase agreements 4,138,192,966
- ------------------------------------------------------------------------
Interest receivable 8,834,769
- ------------------------------------------------------------------------
Investment for deferred compensation plan 119,214
- ------------------------------------------------------------------------
Other assets 158,290
- ------------------------------------------------------------------------
Total assets 5,364,079,396
- ------------------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 47,047,556
- ------------------------------------------------------------------------
Dividends 24,624,673
- ------------------------------------------------------------------------
Deferred compensation 119,213
- ------------------------------------------------------------------------
Accrued administrative services fees 24,332
- ------------------------------------------------------------------------
Accrued advisory fees 261,253
- ------------------------------------------------------------------------
Accrued distribution fees 553,158
- ------------------------------------------------------------------------
Accrued transfer agent fees 44,493
- ------------------------------------------------------------------------
Accrued trustees' fees 4,471
- ------------------------------------------------------------------------
Accrued operating expenses 139,037
- ------------------------------------------------------------------------
Total liabilities 72,818,186
- ------------------------------------------------------------------------
NET ASSETS $5,291,261,210
========================================================================
NET ASSETS:
Institutional Class $3,156,815,643
========================================================================
Private Investment Class $ 415,681,345
========================================================================
Personal Investment Class $ 283,793,734
========================================================================
Cash Management Class $ 922,455,618
========================================================================
Reserve Class $ 131,289,696
========================================================================
Resource Class $ 381,225,174
========================================================================
SHARES OF BENEFICIAL INTEREST, $.01 PAR VALUE PER SHARE:
Institutional Class 3,156,588,528
========================================================================
Private Investment Class 415,658,564
========================================================================
Personal Investment Class 283,767,232
========================================================================
Cash Management Class 922,388,465
========================================================================
Reserve Class 131,286,270
========================================================================
Resource Class 381,194,489
========================================================================
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 29, 2000
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest income $143,990,882
- -------------------------------------------------------------------
EXPENSES:
Advisory fees 1,556,337
- -------------------------------------------------------------------
Custodian fees 139,371
- -------------------------------------------------------------------
Administrative services fees 147,587
- -------------------------------------------------------------------
Trustees' fees 12,239
- -------------------------------------------------------------------
Transfer agent fees 486,393
- -------------------------------------------------------------------
Distribution fees (see Note 2) 4,161,025
- -------------------------------------------------------------------
Other 336,182
- -------------------------------------------------------------------
Total expenses 6,839,134
- -------------------------------------------------------------------
Less: Fee waivers (1,311,267)
- -------------------------------------------------------------------
Net expenses 5,527,867
- -------------------------------------------------------------------
Net investment income 138,463,015
- -------------------------------------------------------------------
Net realized gain on sales of investments 21,543
- -------------------------------------------------------------------
Net increase in net assets resulting from operations $138,484,558
===================================================================
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended February 29, 2000 and year ended August 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
FEBRUARY 29, AUGUST 31,
2000 1999
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 138,463,015 $ 252,566,461
- -----------------------------------------------------------------------------
Net realized gain on sales of investments 21,543 233,481
- -----------------------------------------------------------------------------
Net increase in net assets resulting from
operations 138,484,558 252,799,942
- -----------------------------------------------------------------------------
Distributions to shareholders from net
investment income:
Institutional Class (80,040,984) (154,878,876)
- -----------------------------------------------------------------------------
Private Investment Class (16,651,896) (16,111,371)
- -----------------------------------------------------------------------------
Personal Investment Class (6,772,908) (16,331,172)
- -----------------------------------------------------------------------------
Cash Management Class (24,321,773) (46,789,257)
- -----------------------------------------------------------------------------
Reserve Class (2,798,542) (1,139,360)
- -----------------------------------------------------------------------------
Resource Class (7,876,912) (17,316,425)
- -----------------------------------------------------------------------------
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) 87,492,561 59,979,434
- -----------------------------------------------------------------------------
Net increase in net assets 87,514,104 59,512,942
- -----------------------------------------------------------------------------
NET ASSETS:
Beginning of period 5,203,747,106 5,144,234,164
- -----------------------------------------------------------------------------
End of period $5,291,261,210 $5,203,747,106
=============================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $5,290,883,548 $5,203,390,987
- -----------------------------------------------------------------------------
Undistributed net realized gain on sales of
investments 377,662 356,119
- -----------------------------------------------------------------------------
$5,291,261,210 $5,203,747,106
=============================================================================
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS
February 29, 2000
(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. 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>
9
<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 six months ended February 29, 2000,
AIM was paid $147,587 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 six months ended February 29,
2000, AFS was paid $404,304 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. Currently, FMC has elected to waive a portion of its compensation
payable by the Fund such that the compensation paid pursuant to the Plan with
respect to the Private Investment Class, the Personal Investment Class, the
Cash Management Class, the Reserve Class, and the Resource Class equals 0.30%,
0.50%, 0.08%, 0.80% and 0.16%, respectively, maximum annual rate of the average
daily net assets attributable to such class. During the six months ended
February 29, 2000, the Private Investment Class, the Personal Investment Class,
the Cash Management Class, the Reserve Class and the Resource Class paid
$1,009,204, $713,303, $377,093, $503,175 and $246,983, respectively, as
compensation under the Plan. FMC waived fees of $1,311,267 for the same period.
Certain officers and trustees of the Trust are officers of AIM, FMC and AFS.
During the six months ended February 29, 2000, the Portfolio paid legal fees
of $3,626 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.
10
<PAGE>
NOTE 4-SHARE INFORMATION
Changes in shares outstanding during the six months ended February 29, 2000 and
the year ended August 31, 1999 were as follows:
<TABLE>
<CAPTION>
FEBRUARY 29, 2000 AUGUST 31, 1999
------------------------------ --------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------- -------------- --------------- ---------------
<S> <C> <C> <C> <C>
Sold:
Institutional Class 6,283,277,548 $6,283,277,548 18,697,189,201 $18,697,189,201
- ----------------------------------------------------------------------------------------------
Private Investment Class 2,584,222,725 2,584,222,725 1,543,792,773 1,543,792,773
- ----------------------------------------------------------------------------------------------
Personal Investment Class 1,411,836,186 1,411,836,186 3,783,262,789 3,783,262,789
- ----------------------------------------------------------------------------------------------
Cash Management Class 2,235,128,555 2,235,128,555 6,593,996,488 6,593,996,488
- ----------------------------------------------------------------------------------------------
Reserve Class* 508,822,886 508,822,886 339,249,182 339,249,182
- ----------------------------------------------------------------------------------------------
Resource Class 1,692,139,653 1,692,139,653 2,625,595,247 2,625,595,247
- ----------------------------------------------------------------------------------------------
Issued as reinvestment
of dividends:
Institutional Class 15,672,444 15,672,444 35,404,120 35,404,120
- ----------------------------------------------------------------------------------------------
Private Investment Class 2,347,517 2,347,517 5,531,007 5,531,007
- ----------------------------------------------------------------------------------------------
Personal Investment Class 5,478,587 5,478,587 14,908,717 14,908,717
- ----------------------------------------------------------------------------------------------
Cash Management Class 8,074,772 8,074,772 18,450,756 18,450,756
- ----------------------------------------------------------------------------------------------
Reserve Class* 2,695,906 2,695,906 740,689 740,689
- ----------------------------------------------------------------------------------------------
Resource Class 7,086,902 7,086,902 16,749,204 16,749,204
- ----------------------------------------------------------------------------------------------
Reacquired:
Institutional Class (6,306,344,777) (6,306,344,777) (18,556,477,426) (18,556,477,426)
- ----------------------------------------------------------------------------------------------
Private Investment
Class (2,586,077,466) (2,586,077,466) (1,494,418,811) (1,494,418,811)
- ----------------------------------------------------------------------------------------------
Personal Investment Class (1,418,454,425) (1,418,454,425) (3,919,007,542) (3,919,007,542)
- ----------------------------------------------------------------------------------------------
Cash Management Class (2,181,105,504) (2,181,105,504) (6,685,798,097) (6,685,798,097)
- ----------------------------------------------------------------------------------------------
Reserve Class* (500,205,852) (500,205,852) (220,016,541) (220,016,541)
- ----------------------------------------------------------------------------------------------
Resource Class (1,677,103,096) (1,677,103,096) (2,739,172,322) (2,739,172,322)
- ----------------------------------------------------------------------------------------------
Net increase 87,492,561 $ 87,492,561 59,979,434 $ 59,979,434
==============================================================================================
</TABLE>
* The Reserve Class commenced sales on January 4, 1999.
NOTE 5-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share of the Institutional Class
outstanding during the six months ended February 29, 2000 and each of the years
in the five-year period ended August 31, 1999.
<TABLE>
<CAPTION>
AUGUST 31,
FEBRUARY 29, ----------------------------------------------------------
2000 1999 1998 1997 1996 1995
------------ ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ----------------------- ---------- ---------- ---------- ---------- ---------- ----------
Income from investment
operations:
Net investment income 0.03 0.05 0.05 0.05 0.05 0.06
- ----------------------- ---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net
investment income (0.03) (0.05) (0.05) (0.05) (0.05) (0.06)
- ----------------------- ---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======================= ========== ========== ========== ========== ========== ==========
Total return(a) 2.64% 4.97% 5.64% 5.47% 5.57% 5.66%
======================= ========== ========== ========== ========== ========== ==========
Ratios/supplemental data:
Net assets, end of
period (000s omitted) $3,156,816 $3,164,199 $2,988,375 $3,408,010 $2,335,441 $2,669,637
======================= ========== ========== ========== ========== ========== ==========
Ratio of expenses to
average net assets 0.10%(b) 0.09% 0.08% 0.09% 0.09% 0.10%
======================= ========== ========== ========== ========== ========== ==========
Ratio of net investment
income to average net
assets 5.24%(b) 4.85% 5.50% 5.35% 5.43% 5.53%
======================= ========== ========== ========== ========== ========== ==========
</TABLE>
(a)Not annualized for periods less than one year.
(b)Ratios are annualized and based on average net assets of $3,071,339,856.
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 Treasury
Carol F. Relihan Sr. Vice President & Secretary Portfolio
Dana R. Sutton Vice President & Treasurer --------------------------------------------
Melville B. Cox Vice President Institutional SEMI-
Karen Dunn Kelley Vice President Class ANNUAL
J. Abbott Sprague Vice President REPORT
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 February 29, 2000
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
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
This report may be distributed only to current shareholders or Fund Management Company
to persons who have received a current prospectus. [LOGO APPEARS HERE]
</TABLE>
TRE-SAR-1
