<PAGE>
[AIM LOGO APPEARS HERE]
- --Registered Trademark-- Dear Shareholder:
[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 funds
TO OUR APPEARS HERE] rate a total of 75 basis points during 1999.
SHAREHOLDERS 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
The portfolio's weighted average maturity (WAM) stood at 24 days at
the close of the reporting period. The portfolio's Private
Investment Class outperformed its comparative indexes as of
February 29, 2000, as shown in the table. Net assets of the Private
Investment Class stood at $51.1 million 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 Government & Agency Portfolio seeks to maximize current
income to the extent consistent with preservation of capital and
maintenance of liquidity. It invests in direct obligations of the
U.S. Treasury and other securities issued or guaranteed as to
principal and interest by the U.S. government or by its agencies or
instrumentalities, as well as repurchase agreements secured by such
obligations. Government securities, such as U.S. Treasury bills and
notes, offer a high degree of safety and are guaranteed as to the
timely payment of principal and interest if held to maturity. An
investment in a money market fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government
agency. Although a money market fund seeks to preserve the value of
your investment at $1.00 per share, it is possible to lose money
investing in the fund.
<TABLE>
<CAPTION>
YIELDS AS OF 2/29/00
Average Seven-Day
Monthly Yield Yield
<S> <C> <C>
Government & Agency Portfolio
Private Investment Class 5.47% 5.49%
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%
(continued)
</TABLE>
<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>
SCHEDULE OF INVESTMENTS
February 29, 2000
(Unaudited)
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCY SECURITIES(a) - 26.41%
FEDERAL HOME LOAN MORTGAGE CORP. DISCOUNT NOTES - 13.84%
5.53% 03/09/00 $ 7,000 $ 6,991,398
- ------------------------------------------------------------------------------------
5.68% 03/21/00 15,000 14,952,667
- ------------------------------------------------------------------------------------
5.46% 03/29/00 7,000 6,970,273
- ------------------------------------------------------------------------------------
5.58% 04/06/00 10,000 9,944,200
- ------------------------------------------------------------------------------------
5.58% 04/14/00 7,000 6,952,260
- ------------------------------------------------------------------------------------
5.58% 04/26/00 5,000 4,956,600
- ------------------------------------------------------------------------------------
5.49% 05/10/00 3,025 2,992,738
- ------------------------------------------------------------------------------------
5.60% 05/17/00 5,000 4,940,111
- ------------------------------------------------------------------------------------
5.82% 06/13/00 3,937 3,870,806
- ------------------------------------------------------------------------------------
5.94% 08/17/00 10,000 9,721,150
- ------------------------------------------------------------------------------------
72,292,203
- ------------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION DISCOUNT NOTES - 12.57%
5.60% 04/10/00 5,000 4,968,889
- ------------------------------------------------------------------------------------
5.56% 05/05/00 10,000 9,899,611
- ------------------------------------------------------------------------------------
5.82% 06/08/00 4,932 4,853,063
- ------------------------------------------------------------------------------------
5.83% 06/22/00 7,000 6,872,012
- ------------------------------------------------------------------------------------
5.81% 07/13/00 15,000 14,675,608
- ------------------------------------------------------------------------------------
5.80% 07/20/00 10,000 9,772,833
- ------------------------------------------------------------------------------------
5.89% 08/03/00 10,000 9,746,403
- ------------------------------------------------------------------------------------
5.89% 08/10/00 5,000 4,867,475
- ------------------------------------------------------------------------------------
65,655,894
- ------------------------------------------------------------------------------------
Total U.S. Government Agency Securities (Cost $137,948,097) 137,948,097
- ------------------------------------------------------------------------------------
Total Investments (excluding Repurchase Agreements) 137,948,097
- ------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS(b) - 74.05%
Bank One Capital Markets, Inc.(c)
5.87% 03/01/00 127,000 127,000,000
- ------------------------------------------------------------------------------------
Barclays Capital Inc.(d)
5.87% 03/01/00 25,000 25,000,000
- ------------------------------------------------------------------------------------
Deutsche Bank Securities Corp.(e)
5.86% 03/01/00 25,000 25,000,000
- ------------------------------------------------------------------------------------
First Union Capital Markets(f)
5.87% 03/01/00 25,000 25,000,000
- ------------------------------------------------------------------------------------
Morgan Stanley Dean Witter & Co.(g)
5.85% 03/01/00 7,802 7,802,095
- ------------------------------------------------------------------------------------
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
REPURCHASE AGREEMENTS(b) - (Continued)
Societe Generale Cowen Securities(h)
5.87% 03/01/00 $ 25,000 $ 25,000,000
- ---------------------------------------------------------------------------------
Warburg Dillon Read LLC(i)
5.87% 03/01/00 127,000 127,000,000
- ---------------------------------------------------------------------------------
Westdeutsche Landesbank Girozentrale(j)
5.87% 03/01/00 25,000 25,000,000
- ---------------------------------------------------------------------------------
Total Repurchase Agreements (Cost $386,802,095) 386,802,095
- ---------------------------------------------------------------------------------
TOTAL INVESTMENTS - 100.46% (Cost $524,750,192) 524,750,192
- ---------------------------------------------------------------------------------
OTHER LIABILITIES LESS ASSETS - (0.46)% (2,410,978)
- ---------------------------------------------------------------------------------
NET ASSETS - 100.00% $522,339,214
- ---------------------------------------------------------------------------------
</TABLE>
NOTES TO SCHEDULE OF INVESTMENTS:
(a) U.S. Government 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 02/29/00 with a maturing value of
$500,081,528. Collateralized by $515,023,000 U.S. Government obligations,
0% to 8.00% due 03/01/00 to 08/25/14 with an aggregate market value at
02/29/00 of $510,003,862.
(d) Joint repurchase agreement entered into 02/29/00 with a maturing value of
$396,637,718. Collateralized by $419,860,000 U.S. Government obligations,
0% to 6.25% due 04/13/00 to 05/15/29 with an aggregate market value at
02/29/00 of $404,505,314.
(e) Joint repurchase agreement entered into 02/29/00 with a maturing value of
$100,016,278. Collateralized by $101,295,000 U.S. Government obligations,
6.35% due 01/05/01 with a market value at 02/29/00 of $102,000,599.
(f) Joint repurchase agreement entered into 02/29/00 with a maturing value of
$150,024,458. Collateralized by $156,510,000 U.S. Government obligations,
0% to 7.42% due 07/06/00 to 12/27/17 with an aggregate market value at
02/29/00 of $153,002,600.
(g) Joint repurchase agreement entered into 02/29/00 with a maturing value of
$150,024,375. Collateralized by $164,246,000 U.S. Government obligations,
0% to 8.25% due 03/01/00 to 06/15/44 with an aggregate market value at
02/29/00 of $153,000,487.
(h) Joint repurchase agreement entered into 02/29/00 with a maturing value of
$200,032,611. Collateralized by $206,650,000 U.S. Government obligations,
0% to 6.875% due 06/01/00 to 01/15/05 with an aggregate market value at
02/29/00 of $204,474,729.
(i) Joint repurchase agreement entered into 02/29/00 with a maturing value of
$500,081,528. Collateralized by $505,552,783 U.S. Government obligations,
0% to 9.375% due 03/07/00 to 01/15/30 with an aggregate market value at
02/29/00 of $510,001,318.
(j) Joint repurchase agreement entered into 02/29/00 with a maturing value of
$150,024,458. Collateralized by $153,358,000 U.S. Government obligations,
0% due 03/15/00 with a market value at 02/29/00 of $153,000,216.
See Notes to Financial Statements.
4
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
February 29, 2000
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, excluding repurchase agreements, at value (amortized cost) $137,948,097
- --------------------------------------------------------------------------------------------------
Repurchase agreements 86,802,095
- --------------------------------------------------------------------------------------------------
Interest receivable 63,059
- --------------------------------------------------------------------------------------------------
Investment for deferred compensation plan 8,646
- --------------------------------------------------------------------------------------------------
Other assets 19,222
- --------------------------------------------------------------------------------------------------
Total assets 524,841,119
- --------------------------------------------------------------------------------------------------
LIABILITIES:
Payables for:
Dividends 2,387,646
- --------------------------------------------------------------------------------------------------
Deferred compensation 8,646
- --------------------------------------------------------------------------------------------------
Accrued administrative services fees 17,375
- --------------------------------------------------------------------------------------------------
Accrued distribution fees 32,180
- --------------------------------------------------------------------------------------------------
Accrued transfer agent fees 6,643
- --------------------------------------------------------------------------------------------------
Accrued trustees' fees 1,990
- --------------------------------------------------------------------------------------------------
Accrued operating expenses 47,425
- --------------------------------------------------------------------------------------------------
Total liabilities 2,501,905
- --------------------------------------------------------------------------------------------------
NET ASSETS $522,339,214
==================================================================================================
NET ASSETS:
Institutional Class $325,686,107
==================================================================================================
Private Investment Class $ 51,055,036
==================================================================================================
Cash Management Class $ 91,595,264
==================================================================================================
Resource Class $ 54,002,805
==================================================================================================
Personal Investment Class $ 1
==================================================================================================
Reserve Class $ 1
==================================================================================================
SHARES OF BENEFICIAL INTEREST, $.01 PAR VALUE PER SHARE:
Institutional Class 325,686,107
==================================================================================================
Private Investment Class 51,055,036
==================================================================================================
Cash Management Class 91,595,264
==================================================================================================
Resource Class 54,002,805
==================================================================================================
Personal Investment Class 1
==================================================================================================
Reserve Class 1
==================================================================================================
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 six months ended February 29, 2000
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest income $12,341,344
- ------------------------------------------------------------------
EXPENSES:
Advisory fees 222,359
- ------------------------------------------------------------------
Custodian fees 9,912
- ------------------------------------------------------------------
Administrative services fees 66,072
- ------------------------------------------------------------------
Trustees' fees 5,091
- ------------------------------------------------------------------
Transfer agent fees 38,817
- ------------------------------------------------------------------
Distribution fees (see Note 2) 209,847
- ------------------------------------------------------------------
Other 62,387
- ------------------------------------------------------------------
Total expenses 614,485
- ------------------------------------------------------------------
Less: Fee waivers and reimbursements (335,687)
- ------------------------------------------------------------------
Net expenses 278,798
- ------------------------------------------------------------------
Net investment income 12,062,546
- ------------------------------------------------------------------
Net increase in net assets resulting from operations $12,062,546
==================================================================
</TABLE>
See Notes to Financial Statements.
6
<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 $ 12,062,546 $ 11,215,411
- ---------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 12,062,546 11,215,411
- ---------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Institutional Class (7,238,012) (5,533,351)
- ---------------------------------------------------------------------------------------
Private Investment Class (1,223,927) (1,913,875)
- ---------------------------------------------------------------------------------------
Personal Investment Class (2,653) --
- ---------------------------------------------------------------------------------------
Cash Management Class (2,315,265) (3,191,932)
- ---------------------------------------------------------------------------------------
Resource Class (1,277,909) (576,253)
- ---------------------------------------------------------------------------------------
Reserve Class (4,780) --
- ---------------------------------------------------------------------------------------
Share transactions-net (see Note 4) 243,154,102 279,185,112
- ---------------------------------------------------------------------------------------
Net increase in net assets 243,154,102 279,185,112
- ---------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 279,185,112 --
- ---------------------------------------------------------------------------------------
End of period $522,339,214 $279,185,112
=======================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $522,339,214 $279,185,112
=======================================================================================
</TABLE>
See Notes to Financial Statements.
7
<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 Government & Agency Portfolio (the
"Portfolio"), with the assets, liabilities and operations of each portfolio
being accounted for separately. The Portfolio currently offers different
classes of shares: the Institutional Class, the Private Investment Class, the
Personal Investment Class, the Cash Management Class, the Reserve Class and the
Resource Class. 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 29, 2000, AIM waived fees
and reimbursed expenses of $270,020.
8
<PAGE>
The Fund, pursuant to a master administrative services agreement with AIM, has
agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. During the six months ended February 29, 2000,
AIM was paid $66,072 for such services.
The Fund, pursuant to a transfer agency and shareholder service agreement, has
agreed to pay A I M Fund Services, Inc. ("AFS") a fee for providing transfer
agent and shareholder services to the Fund. During the six months ended
February 29, 2000, AFS was paid $36,235 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, the 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 Cash Management Class, the
Resource Class, the Personal Investment Class and the Reserve Class paid
$70,943, $34,301, $37,900, $252 and $784, respectively, as compensation under
the Plan. FMC waived fees of $65,667 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 $1,844 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as
counsel to the Board of Trustees. A member of that firm is a trustee of the
Fund.
NOTE 3-TRUSTEES' FEES
Trustees' fees represent remuneration paid to trustees who are not an
"interested person" of AIM. The Fund may invest trustees' fees, if so elected
by a trustee, in mutual fund shares in accordance with a deferred compensation
plan.
9
<PAGE>
NOTE 4-SHARE INFORMATION
Changes in shares outstanding during the six months ended February 29, 2000 and
the year ended August 31, 1999:
<TABLE>
<CAPTION>
FEBRUARY 29, 2000 AUGUST 31, 1999
------------------------------ --------------------------
SHARES AMOUNT SHARES AMOUNT
-------------- -------------- ------------ ------------
<S> <C> <C> <C> <C>
Sold:
Institutional Class 1,318,603,428 $1,318,603,428 596,607,970 $596,607,970
- ----------------------------------------------------------------------------------------------------
Private Investment Class 66,261,748 66,261,748 101,447,592 101,447,592
- ----------------------------------------------------------------------------------------------------
Cash Management Class 219,185,143 219,185,143 281,678,849 281,678,849
- ----------------------------------------------------------------------------------------------------
Resource Class 401,722,852 401,722,852 167,590,664 167,590,664
- ----------------------------------------------------------------------------------------------------
Personal Investment Class* 796,001 796,001 -- --
- ----------------------------------------------------------------------------------------------------
Reserve Class* 6,115,326 6,115,326 -- --
- ----------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Institutional Class 3,575,171 3,575,171 3,376,023 3,376,023
- ----------------------------------------------------------------------------------------------------
Private Investment Class 1,095,566 1,095,566 1,572,109 1,572,109
- ----------------------------------------------------------------------------------------------------
Cash Management Class 2,155,672 2,155,672 2,457,651 2,457,651
- ----------------------------------------------------------------------------------------------------
Resource Class 585,468 585,468 383,792 383,792
- ----------------------------------------------------------------------------------------------------
Personal Investment Class* -- -- -- --
- ----------------------------------------------------------------------------------------------------
Reserve Class* 4,242 4,242 -- --
- ----------------------------------------------------------------------------------------------------
Reacquired:
Institutional Class (1,136,352,435) (1,136,352,435) (460,124,050) (460,124,050)
- ----------------------------------------------------------------------------------------------------
Private Investment Class (58,830,322) (58,830,322) (60,491,657) (60,491,657)
- ----------------------------------------------------------------------------------------------------
Cash Management Class (214,858,934) (214,858,934) (199,023,117) (199,023,117)
- ----------------------------------------------------------------------------------------------------
Resource Class (359,989,257) (359,989,257) (156,290,714) (156,290,714)
- ----------------------------------------------------------------------------------------------------
Personal Investment Class* (796,000) (796,000) -- --
- ----------------------------------------------------------------------------------------------------
Reserve Class* (6,119,567) (6,119,567) -- --
- ----------------------------------------------------------------------------------------------------
Net increase 243,154,102 $ 243,154,102 279,185,112 $279,185,112
====================================================================================================
</TABLE>
* The Personal Investment Class and Reserve Class commenced sales on
January 31, 2000 and January 26, 2000, respectively.
10
<PAGE>
NOTE 5-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share of the Private Investment
Class outstanding during the six months ended February 29, 2000 and the year
ended August 31, 1999.
<TABLE>
<CAPTION>
FEBRUARY 29, AUGUST 31,
2000 1999
------------ ------------
<S> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00
- ---------------------------------------------------- ------- -------
Income from investment operations:
Net investment income 0.03 0.05
- ---------------------------------------------------- ------- -------
Less distributions:
Dividends from net investment income (0.03) (0.05)
- ---------------------------------------------------- ------- -------
Net asset value, end of period $ 1.00 $ 1.00
- ---------------------------------------------------- ------- -------
Total return(a) 2.59% 4.75%
- ---------------------------------------------------- ------- -------
Ratios/supplemental data:
Net assets, end of period (000s omitted) $51,055 $45,528
- ---------------------------------------------------- ------- -------
Ratio of expenses to average net assets:
Including fee waivers and/or expense reimbursements 0.36%(b) 0.36%
- ---------------------------------------------------- ------- -------
Excluding fee waivers and/or expense reimbursements 0.68%(b) 0.70%
- ---------------------------------------------------- ------- -------
Ratio of net investment income to average net assets 5.19%(b) 4.62%
- ---------------------------------------------------- ------- -------
</TABLE>
(a) Not annualized for periods less than one year.
(b) Ratios are annualized and based on average net assets of $47,554,865.
11
<PAGE>
<TABLE>
<CAPTION>
TRUSTEES
<S> <C>
Charles T. Bauer Carl Frischling
Bruce L. Crockett Robert H. Graham Short-Term
Owen Daly II Prema Mathai-Davis Investments Trust
Edward K. Dunn, Jr. Lewis F. Pennock (STIT)
Jack M. Fields Louis S. Sklar
OFFICERS
Charles T. Bauer Chairman
Robert H. Graham President Government &
Gary T. Crum Sr. Vice President Agency
Carol F. Relihan Sr. Vice President & Secretary Portfolio
Dana R. Sutton Vice President & Treasurer --------------------------------------------
Melville B. Cox Vice President Private SEMI-
Karen Dunn Kelley Vice President Investment ANNUAL
J. Abbott Sprague Vice President Class 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 [LOGO APPEARS HERE]
Houston, TX 77046-1173 Fund Management Company
This report may be distributed only to current shareholders or
to persons who have received a current prospectus.
</TABLE>
GAP-SAR-2
